<![CDATA[BLACKROCK UTILITY & INFRASTRUCTURE 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 811-22606

Name of Fund:    BlackRock Utility and Infrastructure Trust (BUI)

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Utility and Infrastructure 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: 10/31/2014

Date of reporting period: 04/30/2014


Table of Contents

Item 1 – Report to Stockholders


Table of Contents

APRIL 30, 2014        

 

 

SEMI-ANNUAL REPORT (UNAUDITED)

 

      BLACKROCK®

  BlackRock Dividend Income Trust (BQY)

  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 Utility and Infrastructure Trust (BUI)

 

 

 

 

Not FDIC Insured ¡ May Lose Value ¡ No Bank Guarantee  

 


Table of Contents
      

 

 

Section 19(a) Notices

BlackRock Dividend Income Trust’s (BQY), 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) 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, 2014

 

      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
 

BQY

   $ 0.077560       $ 0.062072       $ 0.320368               $0.460000      17     13     70     0     100

BQR*

   $ 0.031226                       $ 0.327274       $0.358500      9     0     0     91     100

BGR*

   $ 0.106544       $ 0.699246       $ 2.431520       $ 0.072690       $3.310000      3     21     73     2     100

CII*

   $ 0.432951                       $ 0.167049       $0.600000      72     0     0     28     100

BDJ*

   $ 0.074764                       $ 0.205236       $0.280000      27     0     0     73     100

BOE*

                           $ 0.623300       $0.623300      0     0     0     100     100

BME

   $ 0.025679       $ 1.541611       $ 1.202660               $2.769950      1     56     43     0     100

BGY*

   $ 0.053081                       $ 0.282619       $0.335700      16     0     0     84     100

BCF*

   $ 0.047668                       $ 0.301932       $0.349600      14     0     0     86     100

BCX*

   $ 0.079122                       $ 0.383278       $0.462400      17     0     0     83     100

BUI*

   $ 0.157289       $ 0.066024       $ 0.024199       $ 0.477489       $0.725000      22     9     3     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.’ When distributions exceed total return performance, the difference will reduce the Trust’s net asset value per share.

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 U.S. 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        
  BQY        $0.230000      
  BQR        $0.179250      
  BGR        $0.405000      
    CII        $0.300000      
  BDJ        $0.140000      
  BOE        $0.311650      
  BME        $0.429975      
  BGY        $0.167850      
  BCF        $0.174800      
  BCX        $0.231200      
    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, 2014     


Table of Contents
Table of Contents     

 

       Page   

Section 19(a) Notices

     2   

Section 19(b) Disclosure

     2   

Shareholder Letter

     4   

Semi-Annual Report:

  

The Benefits and Risks of Option Over-Writing

     5   

Trust Summaries

     6   

Derivative Financial Instruments

     28   

Financial Statements:

  

Schedules of Investments

     29   

Statements of Assets and Liabilities

     106   

Statements of Operations

     108   

Statements of Changes in Net Assets

     110   

Statements of Cash Flows

     116   

Financial Highlights

     119   

Notes to Financial Statements

     130   

Officers and Trustees

     145   

Additional Information

     146   

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    3


Table of Contents
Shareholder Letter

Dear Shareholder,

Markets have remained highly attuned to potential changes in U.S. monetary policy over the past year. This was markedly evident one year ago in May of 2013 when then-Federal Reserve Chairman Bernanke first mentioned the possibility of reducing (or “tapering”) the central bank’s asset purchase programs — comments that were widely misinterpreted as signaling an end to the Fed’s zero-interest-rate policy. U.S. Treasury yields rose sharply following his comments, triggering a steep sell-off across fixed income markets. (Bond prices move in the opposite direction of yields.) Global equities also suffered as investors feared the implications of a potential end to a program that had greatly supported stocks. Emerging markets, which are more sensitive to changes in global liquidity, were especially hurt by the prospect of ebbing cash flows from the United States. Markets broadly rebounded in late June, however, when the Fed’s tone turned more dovish. At the same time, improving economic indicators and better corporate earnings helped extend gains through most of the summer.

Although the tone of economic and financial news was mixed last autumn, it was a surprisingly positive period for most asset classes. Early on, the Fed defied market expectations with its decision to delay tapering, but higher volatility returned in late September 2013 when the U.S. Treasury Department warned that the national debt would soon breach its statutory maximum. The ensuing political brinksmanship led to a partial government shutdown, roiling global financial markets through the first half of October. Equities and other so-called “risk assets” managed to resume their rally when politicians finally engineered a compromise to reopen the government and extend the debt ceiling.

The remainder of 2013 was a generally positive period for stock markets in the developed world, although investors continued to grapple with uncertainty about when and how much the Fed would scale back on stimulus. When the Fed ultimately announced its tapering plans in mid-December, markets reacted positively, as this action signaled the Fed’s perception of real improvement in the economy, and investors were finally released from the anxiety that had gripped them for quite some time.

The start of the new year brought a stark change in sentiment. Heightened volatility in emerging markets — driven by reduced global liquidity, severe currency weakness, high levels of debt and uneven growth — combined with mixed U.S. economic data caused global equities to weaken in January while bond markets found renewed strength from investors seeking relatively safer assets. Although these headwinds persisted, equities were back on the rise in February as investors were encouraged by a one-year extension of the U.S. debt ceiling and market-friendly comments from new Fed Chair Janet Yellen. While U.S. economic data had softened, investors were assuaged by increasing evidence that this was a temporary trend resulting from harsher-than-usual winter weather.

In the final months of the period, signs of decelerating growth in China and geopolitical tensions in Russia and Ukraine made for a bumpy ride, but markets continued their climb as investors focused on improving U.S. economic data, stronger corporate earnings and a still-dovish central bank. Within developed markets, investors shifted from growth to value stocks as the strong performance of growth stocks in 2013 had pushed valuations higher in many of these sectors. Emerging markets also benefited from this broad rotation into cheaper valuations and were further supported by an improving growth outlook for a number of developing countries.

Even though investors were gearing up for a modest shift toward tighter monetary policy from the Fed, equity markets in the developed world posted solid gains for the six- and 12-month periods ended April 30. Emerging markets, however, experienced increased volatility amid heightened risks for the asset class. Interest rate uncertainty posed a headwind for fixed income assets, and higher-quality sectors of the market performed poorly over the reporting period. Conversely, high yield bonds benefited from income-oriented investors’ search for yield in the overall low-rate environment. Short-term interest rates remained near zero, keeping yields on money market securities close to historic lows.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to move freely as market conditions change over time. We encourage you to talk with your financial advisor and visit www.blackrock.com for further insight about investing in today’s world.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

“In a modest global growth environment, expectations around monetary policy changes continued to be a key theme in financial market performance.”

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of April 30, 2014  
    6-month     12-month  

U.S. large cap equities
(S&P 500® Index)

    8.36     20.44

U.S. small cap equities
(Russell 2000® Index)

    3.08        20.50   

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

    4.44        13.35   

Emerging market
equities (MSCI Emerging
Markets Index)

    (2.98     (1.84

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

    0.03        0.06   

U.S. Treasury securities
(BofA Merrill Lynch 10-
Year U.S. Treasury Index)

    0.88        (5.25

U.S. investment grade
bonds (Barclays
U.S. Aggregate
Bond Index)

    1.74        (0.26

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

    4.24        0.46   

U.S. high yield bonds
(Barclays U.S.
Corporate High Yield 2%
Issuer Capped Index)

    4.72        6.28   
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 total assets and net asset value per share (“NAV”) and, therefore, could have the effect of increasing the Trust’s expense ratio and reducing the amount of assets the Trust has available for long term investment. In order to make these distributions, a Trust may have to sell portfolio securities at less than opportune times.

The final tax characterization of distributions is determined after the fiscal year and is reported in the Trust’s annual report to shareholders. Distributions will be characterized as ordinary income, capital gains and/or return of capital. The Trust’s taxable net investment income or net realized capital gains (“taxable income”) may not be sufficient to support the level of distributions paid. To the extent that distributions exceed the Trust’s current and accumulated earnings and profits, the excess may be treated as a non-taxable return of capital. Distributions that exceed a Trust’s taxable income but do not exceed the Trust’s current and accumulated earnings and profits, may be classified as ordinary income which are taxable to shareholders. Such distributions are reported as distributions in excess of net investment income.

A return of capital distribution does not necessarily reflect a Trust’s investment performance and should not be confused with ‘yield’ or ‘income.’ A return of capital is a return of a portion of an investor’s original investment. A return of capital is not taxable, but it reduces a shareholder’s tax basis in his or her shares, thus reducing any loss or increasing any gain on a subsequent disposition by the shareholder of his or her shares. It is possible that a substantial portion of the distributions paid during a calendar year may ultimately be classified as return of capital or as distributions in excess of net investment income for income tax purposes when the final determination of the source and character of the distributions is made.

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.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    5


Table of Contents
Trust Summary as of April 30, 2014      BlackRock Dividend Income Trust   

 

Trust Overview

BlackRock Dividend Income Trust’s (BQY) (the “Trust”) investment objective is to provide total return through a combination of current income and 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 that pay dividends. The Trust seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option over-writing strategy in an effort to seek total return performance and enhance distributions.

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, 2014, the Trust returned 7.67% based on market price and 6.58% based on NAV. For the same period, the MSCI World Value Index returned 7.35%. All returns reflect reinvestment of dividends and/or distributions. 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 benchmark index, the Trust’s underweight to energy as well as stock selection within the sector detracted from performance for the period. Stock selection in the health care and information technology (“IT”) sectors also had a negative impact. An overweight and stock selection in consumer staples detracted from relative performance, as did individual security selection within financials.

 

Ÿ  

Contributing positively to the Trust’s performance was strong individual stock selection in both the consumer discretionary and industrials sectors. A significant underweight to financials also had a positive impact on relative results. The combination of an overweight and stock selection in utilities added to returns, as did an overweight in the health care sector.

 

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income

 

returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net gains during the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust sought opportunities in sectors and industries that are likely to be among the earlier beneficiaries of a recovering global economy. The Trust added to U.S. financial companies, select IT names and industrials. The Trust eliminated certain positions within telecommunication services (“telecom”) and utilities in the U.S. and abroad, where valuations had moved higher in recent months.

Describe Trust positioning at period end.

 

Ÿ  

As of period end, the investment advisor remains constructive on the ability of corporations to continue to generate cash, especially in the mega-cap space where many firms are well positioned to thrive in a slower-growth environment. The Trust’s largest sector allocations on an absolute basis are financials, consumer staples, industrials, energy and health care, while the Trust maintains smaller exposures to consumer discretionary, telecom, utilities, materials and IT. The Trust remains positioned in high quality stocks, with a special emphasis on affording relative protection and growth of income.

 

 

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, 2014     


Table of Contents
Trust Summary as of April 30, 2014      BlackRock Dividend Income Trust   

 

Trust Information

 

Symbol on New York Stock Exchange (“NYSE”) MKT

   BQY

Initial Offering Date

   May 28, 2004

Current Distribution Rate on Closing Market Price as of April 30, 2014 ($13.34)1

   6.90%

Current Quarterly Distribution per Common Share2,3

   $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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 13.34       $ 12.84         3.89   $ 13.36       $ 12.16   

Net Asset Value

   $ 14.83       $ 14.42         2.84   $ 14.83       $ 13.77   

 

Market Price and Net Asset Value History For the Past Five Years

 

 

LOGO

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14

Exxon Mobil Corp.

     3

Chevron Corp.

     2   

The Walt Disney Co.

     2   

Total SA — ADR

     2   

General Mills, Inc.

     2   

Emerson Electric Co.

     2   

Bristol-Myers Squibb Co.

     2   

Dominion Resources, Inc.

     2   

Microsoft Corp.

     2   

Altria Group, Inc.

     2   
Sector Allocation    4/30/14     10/31/13  

Financials

     20     20

Consumer Staples

     14        14   

Industrials

     13        12   

Health Care

     12        11   

Energy

     11        11   

Information Technology

     8        7   

Consumer Discretionary

     8        8   

Utilities

     7        7   

Materials

     4        4   

Telecommunication Services

     3        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 the investment advisor. 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, 2014    7


Table of Contents
Trust Summary as of April 30, 2014      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 seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option over-writing strategy in an effort to seek total return performance and enhance distributions.

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, 2014, the Trust returned 7.46% based on market price and 5.24% based on NAV. For the same period, the closed-end Lipper Utility Funds category posted an average return of 10.57% based on market price and 10.69% based on NAV. All returns reflect reinvestment of dividends and/or distributions. 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  

Many of the Trust’s new energy investments benefited from positive momentum during the period, with particularly robust performance from holdings in the renewable energy technology space. Vestas Wind Systems A/S was among the Trust’s strongest contributors to performance as the company received a number of new orders, finalized its joint venture with Mitsubishi and secured a five-year revolving credit facility on attractive terms. All of these announcements combined have lowered the risks around the stock and it has been rewarded by the market as a result.

 

Ÿ  

Within agriculture, a holding in livestock producer Tyson Foods, Inc. boosted performance. The company, which specializes in chicken, beef and pork production, posted strong earnings for 2013 and raised its earnings expectations for 2014, which also served to ease broader concerns in the market about earnings in the poultry sector given increased competition resulting from lower grain prices. In the water resources segment of the Trust, exposure to water utilities companies had a positive impact on returns, with notable contributions from United Utilities Group PLC and Severn Trent PLC.

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net gains during the period.

 

Ÿ  

Conversely, the Trust’s holding in integrated solar power products manufacturer Trina Solar detracted from performance as investors took profits on the stock following its strong performance in 2013. A position in global agricultural products company Syngenta AG also hurt returns as the company announced a disappointing earnings report reflecting lower-than-expected sales in South America due to a delayed product launch.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust sold a position in agriculture equipment company AGCO Corp. given concerns that the sub-sector will be challenged in the medium-term. The Trust added to a holding in Tyson Foods, Inc. based on a strong outlook for poultry margins in the U.S. In the new energy segment, the Trust initiated a position in energy efficiency company Regal-Beloit Corp., reflecting optimism for a recovery in U.S. non-residential construction markets. In the water segment, the Trust initiated a position in an industrial conglomerate company Danaher Corp.

Describe portfolio positioning at period end.

 

Ÿ  

As of period end, the Trust continued to hold large allocations to both the water and agriculture segments and less emphasis on the new energy segment.

 

 

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, 2014     


Table of Contents
Trust Summary as of April 30, 2014      BlackRock EcoSolutions Investment Trust   

 

Trust Information

 

Symbol on NYSE

   BQR

Initial Offering Date

   September 28, 2007

Current Distribution Rate on Closing Market Price as of April 30, 2014 ($ 8.15)1

   8.80%

Current Quarterly Distribution per Common Share2,3

   $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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 8.15       $ 7.93         2.77   $ 8.33       $ 7.49   

Net Asset Value

   $ 9.22       $ 9.16         0.66   $ 9.30       $ 8.65   

 

Market Price and Net Asset Value History For the Past Five Years

 

 

LOGO

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14

Archer-Daniels-Midland Co.

     4

Monsanto Co.

     4   

Severn Trent PLC

     3   

Manila Water Co., Inc.

     3   

Aqua America, Inc.

     3   

Bunge Ltd.

     3   

Tyson Foods, Inc., Class A

     2   

Pennon Group PLC

     2   

Agrium, Inc.

     2   

Inversiones Aguas Metropolitanas SA

     2   
Industry Allocation    4/30/14     10/31/13  

Water Utilities

     26     26

Food Products

     18        13   

Chemicals

     17        20   

Machinery

     9        12   

Other3

     30        29   

 

3 

Other includes a 5% holding or less in each of the following industries; Electrical Equipment, Multi-Utilities, Commercial Services & Supplies, Electric Utilities, Independent Power and Renewable Electricity Producers, Oil, Gas & Consumable Fuels, Real Estate Investment Trusts (REITs), Electronic Equipment, Instruments & Components, Food & Staples Retailing, Semiconductors & Semiconductor Equipment, Industrial Conglomerates, Construction & Engineering, Paper & Forest Products, Auto Components, Building Products, Biotechnology and Real Estate Management & Development.

 

 

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 the investment advisor. 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, 2014    9


Table of Contents
Trust Summary as of April 30, 2014      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 seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option over-writing strategy in an effort to seek total return performance and enhance distributions.

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, 2014, the Trust returned 6.23% based on market price and 6.83% based on NAV. For the same period, the closed-end Lipper Natural Resources Funds category posted an average return of 9.11% based on market price and 9.78% based on NAV. All returns reflect reinvestment of dividends and/or distributions. 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 largely attributable to its exposure to integrated oil & gas stocks. Improved capital discipline and increased focus on free-cash-flow helped drive the performance of large-capitalization, integrated stocks and the Trust benefited from its holdings in Royal Dutch Shell PLC, Exxon Mobil Corp. and BP PLC. Additionally, the cold winter in the U.S. supported high demand for natural gas, and the Trust’s positions in gas producers Southwestern Energy Co., Cimarex Energy Co. and EOG Resources, Inc. generated strong returns for the period.

 

Ÿ  

The Trust’s holding in Cairn Energy PLC, a global oil & gas exploration & production company, was among the largest detractors from performance. Shares of Cairn Energy PLC fell as the company came under scrutiny from the Indian tax authority due to a matter relating to the

 

initial public offering of their Indian subsidiary, Cairn India, in 2006. India’s tax authority cited retrospective legislation introduced in 2012 regarding the taxation of indirect transfers of Indian assets as the reason for the investigation. The Trust retained this position given the company’s strong asset base. Another notable detractor was a position in Noble Energy, Inc., which declined from an October peak as the company’s Israel gas project progressed more slowly than expected.

 

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net losses during the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust added to holdings in large-capitalization, integrated oil & gas names based on an improved outlook for this segment. The Trust also initiated a position in shale gas producer Southwestern Energy Co.

Describe portfolio positioning at period end.

 

Ÿ  

As of period end, the Trust held its largest allocations in the integrated oil & gas and oil & gas exploration & production sub-industries, and held smaller allocations to oil services, distribution and refining & marketing 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.

 

10    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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, 2014 ($25.05)1

   6.47%

Current Quarterly Distribution per Common Share2,3

   $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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 25.05       $ 26.82         (6.60 )%    $ 26.84       $ 22.41   

Net Asset Value

   $ 28.29       $ 30.12         (6.08 )%    $ 30.28       $ 25.29   

 

Market Price and Net Asset Value History For the Past Five Years

 

 

LOGO

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14

Royal Dutch Shell PLC — ADR

     12

Chevron Corp.

     10   

Exxon Mobil Corp.

     10   

ConocoPhillips

     5   

BP PLC — ADR

     5   

Schlumberger Ltd.

     5   

Anadarko Petroleum Corp.

     4   

Noble Energy, Inc.

     4   

Halliburton Co.

     3   

Total SA

     3   
Industry Allocation    4/30/14     10/31/13  

Oil, Gas & Consumable Fuels

     90     83

Energy Equipment & Services

     10        17   

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 the investment advisor. 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, 2014    11


Table of Contents
Trust Summary as of April 30, 2014      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 U.S. and foreign issuers. The Trust may invest directly in such securities or synthetically through the use of derivatives. The Trust seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option over-writing strategy in an effort to seek total return performance and enhance distributions.

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, 2014, the Trust returned 10.40% based on market price and 5.88% based on NAV. For the same period, the benchmark S&P 500® Value Index returned 8.91%. All returns reflect reinvestment of dividends and/or distributions. 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 underperformed the benchmark index due to stock selection in the industrials, information technology (“IT”) and consumer staples sectors. Industry allocation decisions also had a negative impact on relative returns. Notable individual detractors from performance included government science and technology solutions provider Leidos Holdings, Inc. (IT), a company that was spun out from Science Applications International Corp., which is also held by the Trust. Shares of Leidos Holdings, Inc. declined as the company significantly missed earnings estimates. A large position in Japan Airlines Co. Ltd. (industrials) hurt results as Japanese equities broadly suffered after their strong upward move in the first half of 2013. Lastly, shares of European retailer Metro AG (consumer staples) came under pressure given the company’s exposure to Russia as geopolitical tension escalated in Russia and Ukraine.

 

Ÿ  

Contributing positively to performance was stock selection in materials, telecommunication services (“telecom”) and consumer discretionary. Stand-out performers included fertilizer company CF Industries Holdings, Inc. (materials), which posted double-digit gains as the company, under new leadership, announced steps to unlock shareholder value through continued execution by focusing on their cost-advantaged nitrogen business

 

and enhanced balance sheet management. Online travel provider Expedia, Inc. (consumer discretionary) generated robust performance as the company produced strong earnings while operating within an improving backdrop for online travel services.

 

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net gains during the period.

Describe recent portfolio activity.

 

Ÿ  

The Trust’s sector weightings are generally a result of individual stock selection. Within this context, the Trust increased exposure to financials, consumer discretionary and IT and decreased exposure to energy during the period. The Trust added several new positions within financials including leading title insurer Fidelity National Financial, Inc. and the newly restructured Ally Financial. Within the consumer discretionary sector, the Trust added positions in Sinclair Broadcasting Group and Nexstar Broadcasting Group, Inc., and took advantage of recent price weakness to increase the position in General Motors Co. Also during the period, the Trust took profits on Google, Inc. and reduced exposure to refining stocks, namely HollyFrontier Corp. and PBF Energy, Inc.

Describe portfolio positioning at period end.

 

Ÿ  

Relative to the S&P 500® Value Index, the Trust ended the period overweight in non-banking financials and consumer discretionary, driven by a significant weighting in broadcasters. Conversely, the Trust was significantly underweight in more defensive sectors including consumer staples and utilities.

 

 

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, 2014     


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, 2014 ($14.30)1

   8.39%

Current Quarterly Distribution per Common Share2,3

   $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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 14.30       $ 13.52         5.77   $ 14.40       $ 13.17   

Net Asset Value

   $ 15.53       $ 15.31         1.44   $ 15.92       $ 14.93   

 

Market Price and Net Asset Value History For the Past Five Years

 

 

LOGO

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14

American International Group, Inc.

     5

General Motors Co.

     5   

Japan Airlines Co. Ltd.

     4   

Suncor Energy, Inc.

     4   

UnitedHealth Group, Inc.

     4   

Apple Inc.

     4   

CF Industries Holdings, Inc.

     4   

Fidelity National Financial, Inc., Class A

     3   

Pfizer, Inc.

     3   

Samsung Electronics Co. Ltd.

     3   
Sector Allocation    4/30/14     10/31/13  

Information Technology

     22     20

Financials

     21        18   

Consumer Discretionary

     16        11   

Health Care

     14        14   

Industrials

     8        7   

Energy

     8        13   

Materials

     4        5   

Telecommunication Services

     4        6   

Consumer Staples

     3        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 the investment advisor. 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, 2014    13


Table of Contents
Trust Summary as of April 30, 2014      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 seek total return performance and enhance distributions. 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, 2014, the Trust returned 8.64% based on market price and 6.81% based on NAV. For the same period, the Russell 1000® Value Index returned 9.61%. All returns reflect reinvestment of dividends and/or distributions. 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 benchmark index, the Trust’s overweight to consumer staples as well as stock selection within the sector detracted from performance for the period. An underweight and stock selection in health care also had a negative impact. Individual security selection within the energy sector weighed on returns, specifically due to an underweight position in Exxon Mobil Corp. and an overweight position in Kinder Morgan, Inc. Lastly, underweights and stock selection in both the information technology (“IT”) and utilities sectors detracted from relative performance.

 

Ÿ  

Contributing positively to the Trust’s performance was stock selection within the consumer discretionary sector, particularly due to not owning certain weaker performing automobile and media stocks such as Ford Motor Co., General Motors Co. and Time Warner, Inc. The Trust’s large underweight to financials and overweights in both materials and industrials also helped relative performance during the period.

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net gains during the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust sought opportunities in sectors and industries that are likely to be among the earlier beneficiaries of a recovering global economy. The Trust added to U.S. financial companies, select IT names and industrials. The Trust eliminated positions within telecommunication services (“telecom”), utilities and consumer staples, where valuations had moved higher in recent months.

Describe portfolio positioning at period end.

 

Ÿ  

As of period end, the investment advisor remains constructive on the ability of corporations to continue to generate cash, especially in the mega-cap space where many firms are well positioned to thrive in a slower-growth environment. The Trust’s largest sector allocations on an absolute basis are financials, industrials, energy and health care, while the smallest exposures are telecom, utilities, materials and IT. The Trust remains positioned in high quality stocks, with a special emphasis on affording relative protection and growth of income.

 

 

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, 2014     


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, 2014 ($8.10)1

   6.91%

Current Quarterly Distribution per Common Share2,3

   $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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 8.10       $ 7.72         4.92   $ 8.10       $ 7.55   

Net Asset Value

   $ 9.16       $ 8.88         3.15   $ 9.17       $ 8.65   

 

Market Price and Net Asset Value History For the Past Five Years

 

 

LOGO

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14

Wells Fargo & Co.

     4

JPMorgan Chase & Co.

     3   

Chevron Corp.

     3   

General Electric Co.

     3   

Comcast Corp., Special Class A

     3   

Pfizer, Inc.

     2   

Merck & Co., Inc.

     2   

The Home Depot, Inc.

     2   

Exxon Mobil Corp.

     2   

Raytheon Co.

     2   
Sector Allocation    4/30/14     10/31/13  

Financials

     23     21

Industrials

     14        13   

Energy

     14        14   

Health Care

     10        9   

Consumer Staples

     9        12   

Consumer Discretionary

     9        9   

Information Technology

     7        5   

Materials

     7        7   

Utilities

     5        6   

Telecommunication Services

     2        4   

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 the investment advisor. 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, 2014    15


Table of Contents
Trust Summary as of April 30, 2014      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 seek total return performance and enhance distributions. 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, 2014, the Trust returned 4.57% based on market price and 2.91% based on NAV. For the same period, the MSCI All Country World Index posted a return of 5.28%. All returns reflect reinvestment of dividends and/or distributions. 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  

Stock selection in the energy sector was the primary cause of the Trust’s underperformance relative to the benchmark index. In particular, Eurasia Drilling Co. Ltd., a Russian provider of onshore drilling services, came under pressure on account of drilling contract disruptions coupled with the geopolitical turmoil in Ukraine, which ultimately led to the Trust exiting the position. In health care, the Trust’s exposure to biotechnology hurt returns as the industry experienced selling pressure during October 2013 and again in March 2014 due to investors taking profits on their recent strong performance.

 

Ÿ  

Contributing positively to relative performance was stock selection within materials and industrials. In the materials sector, strong performance came from selection in the specialty chemicals segment, where the Trust continued to favor well-capitalized businesses with the ability to consistently grow and generate cash flow in excess of their cost of capital.

 

Within industrials, the Trust’s select transportation holdings American Airlines Group, Inc. and Hertz Global Holdings, Inc. benefited from increased pricing power as a result of industry consolidation.

 

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net gains during the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust pared back exposure to Japan, moving to a slight underweight versus the benchmark index, with most of the sales within consumer discretionary, financials and information technology (“IT”). The proceeds were rotated into stock-specific ideas within health care and also financial stocks that are more sensitive to a recovering U.S. economy.

Describe portfolio positioning at period end.

 

Ÿ  

Relative to the MSCI All Country World Index, the Trust ended the period overweight in European equities and underweight in both emerging markets and Asia ex-Japan. From a sector perspective, the Trust was most notably overweight in industrials and health care, while the most significant underweights were in the IT and energy sectors.

 

 

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, 2014     


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, 2014 ($ 14.78)1

   8.43%

Current Quarterly Distribution per Common Share2,3

   $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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 14.78       $ 14.74         0.27   $ 15.22       $ 14.15   

Net Asset Value

   $ 16.46       $ 16.68         (1.32 )%    $ 17.27       $ 16.08   

 

Market Price and Net Asset Value History For the Past Five Years

 

 

LOGO

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14

Apple Inc.

     2

Societe Generale SA

     2   

Citigroup, Inc.

     2   

Green REIT PLC

     2   

Anheuser-Busch InBev NV

     1   

JPMorgan Chase & Co.

     1   

Adecco SA

     1   

Roper Industries, Inc.

     1   

Kennedy-Wilson Holdings, Inc.

     1   

BankUnited, Inc.

     1   
Geographic Allocation    4/30/14     10/31/13  

United States

     49     44

United Kingdom

     8        10   

Japan

     5        8   

Other3

     38        38   

 

3 

Other includes a 5% holding or less in each of the following countries; Switzerland, Germany, France, Sweden, Ireland, China, Spain, Hong Kong, Italy, Canada, Belgium, Indonesia, Denmark, Greece, New Zealand, Austria, South Korea, Peru, South Africa, Mexico, Netherlands, Panama, Norway and Taiwan.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    17


Table of Contents
Trust Summary as of April 30, 2014      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 seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option overwriting strategy in an effort to seek total return performance and enhance distributions.

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, 2014, the Trust returned 14.88% based on market price and 8.17% based on NAV. For the same period, the Russell 3000® Healthcare Index returned 10.50%. All returns reflect reinvestment of dividends and/or distributions. The Trust moved from a discount to NAV to a premium by period end, 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 Trust benefited from positioning in the health care providers & services industry, where an underweight to the lagging health care services segment and stock selection within health care distributors were the key drivers of positive relative performance. Gains also came from the life sciences tools & services industry, largely driven by the Trust’s position in Illumina, Inc., which appreciated after the company released solid financial results.

 

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net gains during the period.

 

Ÿ  

Despite strong performance from several holdings in both the biotechnology and pharmaceutical industries, the Trust’s overweight in biotechnology and underweight in pharmaceuticals hindered performance relative to the benchmark index due to the market’s broad rotation in the first quarter of 2014 away from high-growth names that had delivered strong performance in 2013, including biotechnology, and into more value-

   

centric stocks, such as pharmaceuticals. Notable individual detractors within biotechnology included the Trust’s overweight positions in Aegerion Pharmaceuticals, Inc. and BioMarin Pharmaceutical, Inc. and an underweight position in Gilead Sciences, Inc. In pharmaceuticals, an underweight in Merck & Co., Inc. hampered relative performance.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, investment decisions at the individual security level resulted in decreased exposure to biotechnology stocks and slightly increased exposure to both the health care equipment & supplies and pharmaceuticals industries.

Describe portfolio positioning at period end.

 

Ÿ  

As of period end, health care stock valuations remained reasonable, even after the strong performance of the sector over the previous two years. The Trust continued to maintain a focus on innovative companies and, as such, continued to maintain large allocations to the biotechnol-ogy and pharmaceuticals industries, where the innovation cycle is in an upward trend and is expected to drive a secular growth story. The Trust’s weighting in biotechnology, however, was reduced toward period end due to near-term headwinds. In 2014, the Trust expanded the innovation theme to the health care equipment & supplies industry with investments in several companies with compelling new product launches on the horizon. While policy uncertainty has diminished with the expected implementation of Health Care Reform, changes are still taking place due to austerity measures unfolding globally. As such, the Trust remained underweight in companies that would be at risk if government reimbursements were reduced. However, the new legislation is expected to benefit health care companies generally by creating increased consumer demand, although this trend may take several years to develop.

 

 

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, 2014     


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, 2014 ($ 35.66)1

   4.82%

Current Quarterly Distribution per Common Share2,3

   $0.429975

Current Annualized Distribution per Common Share2

   $1.719900

 

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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 35.66       $ 33.56         6.26   $ 39.95       $ 32.25   

Net Asset Value

   $ 34.94       $ 34.92         0.06   $ 37.75       $ 33.64   

 

Market Price and Net Asset Value History For the Past Five Years

 

 

LOGO

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14

Johnson & Johnson

     4

Biogen Idec, Inc.

     4   

Merck & Co., Inc.

     3   

AbbVie, Inc.

     3   

Alexion Pharmaceuticals, Inc.

     3   

Bayer AG

     3   

Novartis AG

     3   

Pfizer, Inc.

     3   

Celgene Corp.

     3   

Covidien PLC

     2   
Industry Allocation    4/30/14     10/31/13  

Pharmaceuticals

     38     35

Biotechnology

     26        32   

Health Care Equipment & Supplies

     17        16   

Health Care Providers & Services

     12        11   

Life Sciences Tools & Services

     5        4   

Other3

     2        2   

 

3 

Other includes a 1% holding or less in each of the following industries; Health Care Technology, Chemicals and Diversified Consumer Services.

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 the investment advisor. 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, 2014    19


Table of Contents
Trust Summary as of April 30, 2014      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 seek total return performance and enhance distributions. 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, 2014, the Trust returned 3.41% based on market price and 1.99% based on NAV. For the same period, the MSCI All Country World Index Ex-U.S. returned 2.91%. All returns reflect reinvestment of dividends and/or distributions. 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  

Positioning within the consumer discretionary sector was the primary cause of the Trust’s underperformance relative to the benchmark index. In particular, Perform Group PLC, a digital sports media company, detracted from performance as the stock came under pressure due to investors’ concerns about greater-than-expected expenses in a small area of the company’s business. The Trust continued to hold Perform Group PLC despite this short-term weakness as the company remains fundamentally attractive and offers further upside potential. Also detracting from the Trust’s performance was stock selection in the utilities sector, where APR Energy PLC sold off due to investors’ concerns about the company’s contract concentration risk in Libya. However, the company’s good business momentum reinforces the view that APR Energy’s long-term fundamental story remains intact and as such, the Trust retained this position.

 

Ÿ  

Stock selection in health care and materials were the largest relative contributors to performance. In healthcare, multiple holdings across the pharmaceuticals sub-industry delivered strong returns due to a combination

 

of pipeline potential, solid financial results and, most recently, increased M&A activity. In materials, stock selection in the specialty chemicals sub-industry, where we continue to favor well-capitalized businesses with the ability to consistently grow and generate cash flow in excess of their cost of capital, was also additive to performance.

 

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net gains during the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust decreased the allocation to developed Europe, with the largest reductions focused in the United Kingdom and France. The proceeds were used to add to Japanese equities positioned to benefit from the continuation of the Bank of Japan’s reflationary policies, most notably within the industrials and financials sectors.

Describe portfolio positioning at period end.

 

Ÿ  

Relative to the MSCI All Country World Index Ex-U.S., the Trust was overweight Europe with the largest allocations centered on globally oriented businesses domiciled in Switzerland and Ireland. From a sector perspective, the Trust was most notably overweight the industrials and health care sectors, while its most significant underweights were in the consumer staples, energy and financials sectors.

 

 

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, 2014     


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, 2014 ($ 8.08)1

   8.31%

Current Quarterly Distribution per Common Share2,3

   $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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary
      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 8.08       $ 8.14         (0.74 )%    $ 8.40       $ 7.72   

Net Asset Value

   $ 8.86       $ 9.05         (2.10 )%    $ 9.41       $ 8.69   

 

Market Price and Net Asset Value History For the Past Five Years

 

 

LOGO

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14  

Novartis AG

     3

Roche Holding AG

     3   

AstraZeneca PLC

     2   

Bayer AG

     2   

Vivendi SA

     2   

Daimler AG.

     2   

Anheuser-Busch InBev NV

     2   

Sumitomo Mitsui Financial Group, Inc

     2   

Green REIT PLC

     2   

SoftBank Corp

     2   
Geographic Allocation    4/30/14     10/31/13  

United Kingdom

     16     20

Japan

     13        10   

Switzerland

     10        9   

Germany

     7        5   

France

     7        15   

Ireland

     6        4   

Other3

     41        37   

 

3 

Other includes a 4% holding or less in each of the following countries; China, Sweden, Hong Kong, Belgium, Italy, Russia, Norway, Mexico, Brazil, Singapore, Canada, Australia, Austria, Indonesia, South Korea, Thailand, New Zealand, Taiwan, Cyprus, United States, Malaysia, India, Finland, South Africa, Greece, Turkey, Pamana, Peru, Demark, Netherlands, Spain.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    21


Table of Contents
Trust Summary as of April 30, 2014      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 seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option over-writing strategy in an effort to seek total return performance and enhance distributions.

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, 2014, the Trust returned 4.11% based on market price and 5.32% based on NAV. For the same period, the closed-end Lipper Natural Resources Funds category posted an average return of 9.11% based on market price and 9.78% based on NAV. All returns reflect reinvestment of dividends and/or distributions. 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 position in Caterpillar, Inc. was the largest contributor to positive performance. The company delivered better-than-expected earnings for the first quarter of 2014, through improved cost control and increasingly efficient execution. The company also benefited from a recovering U.S. economy and improving housing starts domestically. A position in Royal Dutch Shell PLC also had a notable impact on returns as investors reacted positively to structural changes within the company during the period.

 

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net gains during the period.

Ÿ  

The Trust’s holding in Cairn Energy PLC, a global oil & gas exploration & production company, was among the largest detractors from performance. Shares of Cairn Energy PLC fell as the company came under scrutiny from the Indian tax authority due to a matter relating to the initial public offering of their Indian subsidiary, Cairn India, in 2006. India’s tax authority cited retrospective legislation introduced in 2012 regarding the taxation of indirect transfers of Indian assets as the reason for the investigation. The Trust retained this position given the company’s strong asset base. Elsewhere, the Trust’s exposure to silver producers, namely Fresnillo PLC and Industrias Penoles SAB de CV (which owns 75% of Fresnillo), had a negative impact on returns as falling silver prices pressured margins and deteriorated growth prospects for these companies during the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust took some profits on its position in Caterpillar, Inc. following the stock’s strong performance earlier in the period. Within the energy space, the Trust initiated a holding in Cimarex Energy Co., an oil & gas exploration & production company that operates in the Permian basin.

Describe portfolio positioning at period end.

 

Ÿ  

As of period end, the energy sector was the Trust’s largest allocation, while the remaining exposure was divided broadly between metals & mining 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.

 

22    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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, 2014 ($ 9.13)1

   7.66%

Current Quarterly Distribution per Common Share2,3

   $0.1748

Current Annualized Distribution per Common Share2

   $0.6992

 

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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary
      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 9.13       $ 9.12         0.11   $ 9.18       $ 8.28   

Net Asset Value

   $ 10.37       $ 10.24         1.27   $ 10.37       $ 9.56   

 

Market Price and Net Asset Value History For the Past Five Years

 

 

LOGO

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14  

EI du Pont de Nemours & Co

     4

Royal Dutch Shell PLC - ADR

     4   

Chevron Corp

     4   

Exxon Mobil Corp

     4   

BHP Billiton PLC

     4   

Caterpillar, Inc

     4   

Rio Tinto PLC

     4   

Praxair, Inc

     4   

Glencore Xstrata PLC

     3   

MeadWestvaco Corp

     3   
Industry Allocation    4/30/14     10/31/13  

Oil, Gas & Consumable Fuels

     33     30

Metals & Mining

     33        36   

Chemicals

     16        15   

Machinery

     5        4   

Paper & Forest Products

     4        4   

Energy Equipment & Services

     4        6   

Containers & Packaging

     3        3   

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 the investment advisor. 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, 2014    23


Table of Contents
Trust Summary as of April 30, 2014      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. While permitted, the Trust does not currently expect to invest in securities and derivatives linked to the underlying price movement of commodities or natural resources. The Trust seeks to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option overwriting strategy in an effort to seek total return performance and enhance distributions.

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, 2014, the Trust returned 7.05% based on market price and 7.09% based on NAV. For the same period, the closed-end Lipper Natural Resources Funds category posted an average return of 9.11% based on market price and 9.78% based on NAV. All returns reflect reinvestment of dividends and/or distributions. 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 position in Ultra Petroleum Corp. was the largest contributor to positive performance as the stock moved higher after reporting strong earnings for the first quarter of 2014. A number of the major integrated oil & gas companies also reported robust earnings for the year 2013 and first quarter of 2014. Many energy companies delivered strong first-quarter performance as they benefited from higher natural gas prices driven by the colder-than-usual winter in North America. Additionally, oil & gas exploration & production companies began to deliver on their production forecasts, adding further support to this segment. In this environment, the Trust benefited from holdings in Chevron Corp., Exxon Mobil Corp., Royal Dutch Shell PLC and BHP Billiton Ltd.

 

Ÿ  

The Trust’s holding in Cairn Energy PLC, a global oil & gas exploration & production company, was among the largest detractors from performance. Shares of Cairn Energy PLC fell as the company came under scrutiny from the Indian tax authority due to a matter relating to the

   

initial public offering of their Indian subsidiary, Cairn India, in 2006. India’s tax authority cited retrospective legislation introduced in 2012 regarding the taxation of indirect transfers of Indian assets as the reason for the investigation. The Trust retained this position given the company’s strong asset base.

 

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net losses during the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust initiated a position in lumber producer Canfor Corp. as a favorable supply of feedstock materials and a possible pick-up in construction demand improves the outlook for lumber producers. In the mining space, the Trust increased exposure to nickel by adding to a holding in MMC Norilsk Nickel OJSC. Also during the period, the Trust took some profits on investments in the integrated oil & gas segment, including the sale of Hess Corp. following the stock’s strong performance.

Describe portfolio positioning at period end.

 

Ÿ  

As of period end, the energy sector continued to be the Trust’s largest allocation, while the remaining exposure was divided broadly between metals & mining and agriculture-related 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.

 

24    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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, 2014 ($ 12.02)1

   7.69%

Current Quarterly Distribution per Common Share2,3

   $0.2312

Current Annualized Distribution per Common Share2

   $0.9248

 

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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 12.02       $ 11.68         2.91   $ 12.06       $ 10.93   

Net Asset Value

   $ 13.94       $ 13.54         2.95   $ 13.94       $ 12.73   

 

Market Price and Net Asset Value History Since Inception

 

LOGO

 

  4 

Commencement of operations.

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14  

Exxon Mobil Corp.

     9

Chevron Corp.

     8   

BHP Billiton Ltd. - ADR

     6   

Royal Dutch Shell PLC - ADR

     5   

ConocoPhillips

     5   

Monsanto Co.

     4   

Rio Tinto PLC - ADR

     4   

BP PLC - ADR

     4   

Statoil ASA

     3   

Freeport-McMoRan Copper & Gold, Inc.

     3   
Industry Allocation    4/30/14     10/31/13  

Oil, Gas & Consumable Fuels

     52     52

Metals & Mining

     23        21   

Chemicals

     12        15   

Food Products

     10        6   

Paper & Forest Products

     1          

Machinery

     1        5   

Real Estate Investment Trusts (REITS)

     1        1   

For Trust compliance purposes, the Trust 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 the investment advisor. 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, 2014    25


Table of Contents
Trust Summary as of April 30, 2014      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 seek total return performance and enhance distributions. 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 usedto 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, 2014, the Trust returned 9.65% based on market price and 11.10% based on NAV. For the same period, the closed-end Lipper Utility Funds category posted an average return of 10.57% based on market price and 10.69% based on NAV. All returns reflect reinvestment of dividends and/or distributions. 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 contributor to the Trust’s performance during the period was an allocation to electric utility stocks. Allocations to the multi-utilities and diversified telecommunication services (“telecom”) industries had a positive impact as well. Smaller allocations to the highways & rail tracks and airport services sub-industries within transportation infrastructure also added meaningfully to performance during the period.

 

Ÿ  

Conversely, the Trust’s exposure to the renewable electricity sub-industry detracted from returns, as did an allocation to marine ports & services. A small allocation to oil & gas drilling stocks also detracted marginally.

 

Ÿ  

Also, during the period, the Trust made use of options, principally written call options on individual stocks, in order to seek enhanced income returns while continuing to participate in the performance of the underlying equities. The Trust’s option writing strategy generated net losses during the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust added certain companies within the energy, telecom and utilities sectors deemed likely to perform well in the current stage of the global economic recovery. These names included Valero Energy Partners LP, Enable Midstream Partners, Frontier Communications and Veolia Environment. The Trust selectively reduced exposure to Brazil given concerns about local economic growth and political uncertainty leading up to the country’s October elections.

Describe Trust positioning at period end.

 

Ÿ  

After an unusually harsh winter posed a short-term tailwind for the U.S. utilities, stock selection within this space continued to emphasize companies that demonstrate strong growth in earnings and dividends driven by their investment in core infrastructure projects such as improving electric transmission and distribution. The Trust also continued to identify investment opportunities in Europe given attractive valuations. In an environment of higher government tax rates, regulated corporations have turned their focus to cost-cutting, which helps to strengthen their financial position as local economies improve. In the energy sector, master limited partnerships (“MLPs”) continue to present a significant opportunity as more companies are adopting the MLP structure as a vehicle to create value for shareholders. With respect to construction/infrastructure companies, the Trust maintained a focus on quality given a trend in which the strongest companies are getting stronger while the weakest are disappearing.

 

 

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, 2014     


Table of Contents
Trust Summary as of April 30, 2014      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, 2014 ($ 19.35)1

   7.49%

Current Quarterly Distribution per Common Share2,3

   $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 return of capital. See 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 return of capital or net realized gain.

 

3 

On June 13, 2014, the Board of the Trust approved a change to the frequency of regular Trust distributions from quarterly to monthly. Please see Note 10 of the Notes to Financial Statements for additional information.

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/14      10/31/13      Change     High      Low  

Market Price

   $ 19.35       $ 18.36         5.39   $ 19.38       $ 16.91   

Net Asset Value

   $ 22.19       $ 20.78         6.79   $ 22.19       $ 19.97   

 

Market Price and Net Asset Value History Since Inception

 

 

LOGO

 

  4 

Commencement of operations.

 

Overview of the Trust’s Long-Term Investments

 

Ten Largest Holdings    4/30/14

NextEra Energy, Inc.

     4

National Grid PLC

     4   

American Tower Corp.

     4   

Atlantia SpA

     4   

CMS Energy Corp.

     3   

Duke Energy Corp.

     3   

Dominion Resources, Inc.

     3   

Verizon Communications, Inc.

     2   

Abertis Infraestructuras SA

     2   

Enterprise Products Partners LP

     2   
Industry Allocation    4/30/14     10/31/13  

Oil, Gas & Consumable Fuels

     24     22

Multi-Utilities

     21        20   

Electric Utilities

     18        17   

Transportation Infrastructure

     14        13   

Other4

     23        28   

 

4 

Other includes a 7% holding or less in each of the following industries; Diversified Telecommunication Services, Construction & Engineering, Real Estate Investment Trust (REITs), Water Utilities, Independent Power Producers & Energy Traders, Media, Gas Utilities, Machinery and Wireless Telecommunication Services.

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 the investment advisor. 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, 2014    27


Table of Contents
Derivative Financial Instruments     

 

The Trusts may invest in various derivative financial instruments, including options, as specified in Note 4 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 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.

 

 

28    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments April 30, 2014 (Unaudited)      BlackRock Dividend Income Trust (BQY)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Aerospace & Defense — 3.2%

     

Honeywell International, Inc. (a)

     11,600       $ 1,077,640   

Lockheed Martin Corp. (a)

     4,330         710,726   

United Technologies Corp. (a)

     9,400         1,112,302   
     

 

 

 
                2,900,668   

Banks — 8.3%

     

Australia & New Zealand Banking Group Ltd.

     18,000         578,838   

Bank of America Corp. (a)

     17,100         258,894   

Bank of Nova Scotia (a)

     11,700         710,935   

Hang Seng Bank Ltd.

     17,500         285,706   

HSBC Holdings PLC — ADR (a)

     24,100         1,236,812   

M&T Bank Corp. (a)

     4,500         549,045   

National Australia Bank Ltd.

     32,000         1,053,673   

U.S. Bancorp. (a)

     22,600         921,628   

United Overseas Bank Ltd.

     18,310         318,688   

Wells Fargo & Co. (a)

     30,500         1,514,020   
     

 

 

 
                7,428,239   

Beverages — 1.9%

     

The Coca-Cola Co. (a)

     22,200         905,538   

PepsiCo, Inc. (a)

     7,500         644,175   

Treasury Wine Estates Ltd.

     35,566         126,662   
     

 

 

 
                1,676,375   

Capital Markets — 1.7%

     

The Goldman Sachs Group, Inc. (a)

     2,600         415,532   

Morgan Stanley (a)

     21,100         652,623   

T Rowe Price Group, Inc. (a)

     5,700         468,141   
     

 

 

 
                1,536,296   

Chemicals — 2.9%

     

BASF SE

     9,600         1,113,654   

PPG Industries, Inc. (a)

     5,800         1,122,996   

Solvay SA

     2,300         372,726   
     

 

 

 
                2,609,376   

Communications Equipment — 0.8%

     

QUALCOMM, Inc. (a)

     8,600         676,906   

Construction & Engineering — 1.0%

     

Vinci SA

     12,100         913,626   

Consumer Finance — 0.7%

     

American Express Co. (a)

     6,600         577,038   

Distributors — 0.6%

     

Genuine Parts Co. (a)

     6,100         531,432   

Diversified Financial Services — 0.7%

     

CME Group, Inc.

     8,700         612,393   

Diversified Telecommunication Services — 3.3%

     

Frontier Communications Corp.

     196,300         1,167,985   

TeliaSonera AB

     53,400         388,702   

Verizon Communications, Inc. (a)

     29,200         1,364,516   
     

 

 

 
                2,921,203   
Common Stocks    Shares      Value  

Electric Utilities — 3.2%

     

Duke Energy Corp. (a)

     5,200       $ 387,348   

NextEra Energy, Inc. (a)

     15,400         1,537,690   

SSE PLC

     35,000         902,523   
     

 

 

 
                2,827,561   

Electrical Equipment — 2.0%

     

Emerson Electric Co. (a)

     26,800         1,827,224   

Food & Staples Retailing — 0.8%

     

Wal-Mart Stores, Inc. (a)

     8,714         694,593   

Food Products — 4.4%

     

General Mills, Inc. (a)

     35,200         1,866,304   

Kraft Foods Group, Inc. (a)

     9,933         564,790   

Mondelez International, Inc., Class A (a)

     29,200         1,040,980   

Nestle SA

     5,700         440,520   
     

 

 

 
                3,912,594   

Health Care Equipment & Supplies — 0.5%

     

Abbott Laboratories (a)

     11,100         430,014   

Hotels, Restaurants & Leisure — 1.5%

     

McDonald’s Corp. (a)

     12,900         1,307,802   

Household Products — 1.4%

     

The Procter & Gamble Co. (a)

     15,600         1,287,780   

Industrial Conglomerates — 4.7%

     

3M Co. (a)

     11,200         1,557,808   

General Electric Co. (a)

     53,800         1,446,682   

Hopewell Holdings Ltd.

     85,684         295,499   

Keppel Corp. Ltd.

     53,800         452,675   

Siemens AG — ADR (a)

     3,700         487,771   
     

 

 

 
                4,240,435   

Insurance — 5.0%

     

Aflac, Inc. (a)

     7,100         445,312   

Allianz SE

     3,600         626,507   

The Chubb Corp.

     8,500         782,680   

Cincinnati Financial Corp. (a)

     11,400         555,636   

MetLife, Inc. (a)

     6,600         345,510   

Prudential Financial, Inc. (a)

     18,100         1,460,308   

Zurich Insurance Group AG

     976         279,876   
     

 

 

 
                4,495,829   

IT Services — 1.2%

     

Automatic Data Processing, Inc. (a)

     13,400         1,044,664   

Leisure Products — 0.5%

     

Mattel, Inc.

     11,800         462,737   

Machinery — 1.2%

     

Scania AB, B Shares

     35,800         1,090,696   

Media — 2.3%

     

The Walt Disney Co. (a)

     25,500         2,023,170   
 
Portfolio Abbreviations

ADR

   American Depositary Receipt    GBP    British Pound    PEN    Peruvian Neuvo Sol

AUD

   Australian Dollar    GDR    Global Depositary Receipts    REIT    Real Estate Investment Trust

BRL

   Brazil Real    HKD    Hong Kong Dollar    SEK    Swedish Krona

CAD

   Canadian Dollar    ILS    Israeli Shekel    SGD    Singapore Dollar

CHF

   Swiss Franc    JPY    Japanese Yen    TWD    Taiwan Dollar

CLP

   Chilean Peso    KRW    Korean Won    USD    U.S. Dollar

DKK

   Danish Krone    MXN    Mexican New Peso    ZAR    South African Rand

EUR

   Euro    NOK    Norwegian Krone      

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    29


Table of Contents
Schedule of Investments (continued)     

 

BlackRock Dividend Income Trust (BQY)

(Percentages shown are based on Net Assets)

  

  

 

 

Common Stocks    Shares      Value  

Metals & Mining — 1.2%

     

BHP Billiton Ltd. — ADR (a)

     8,012       $ 565,166   

BHP Billiton PLC

     14,150         459,368   
     

 

 

 
                1,024,534   

Multi-Utilities — 3.9%

     

Ameren Corp. (a)

     22,300         921,213   

Dominion Resources, Inc. (a)

     23,500         1,704,690   

Sempra Energy

     4,800         473,328   

Wisconsin Energy Corp.

     8,300         402,384   
     

 

 

 
                3,501,615   

Oil, Gas & Consumable Fuels — 11.2%

     

Chevron Corp. (a)

     16,300         2,045,976   

Enbridge, Inc. (a)

     24,400         1,177,424   

Exxon Mobil Corp. (a)

     27,000         2,765,070   

Royal Dutch Shell PLC — ADR

     6,850         539,369   

Santos Ltd.

     66,600         853,900   

Suncor Energy, Inc. (a)

     3,450         133,083   

Total SA — ADR

     28,000         1,994,720   

TransCanada Corp. (a)

     10,700         498,660   
     

 

 

 
                10,008,202   

Pharmaceuticals — 10.7%

     

AbbVie, Inc. (a)

     10,287         535,747   

AstraZeneca PLC

     17,700         1,397,136   

Bristol-Myers Squibb Co. (a)

     34,300         1,718,087   

GlaxoSmithKline PLC

     32,425         895,916   

Johnson & Johnson (a)

     15,700         1,590,253   

Merck & Co., Inc. (a)

     17,500         1,024,800   

Pfizer, Inc. (a)

     50,200         1,570,256   

Sanofi

     3,400         366,927   

Takeda Pharmaceutical Co. Ltd.

     10,800         485,785   
     

 

 

 
                9,584,907   

Real Estate Investment Trusts (REITs) — 3.2%

     

Equity Residential

     10,800         641,952   

HCP, Inc.

     12,000         502,320   

Health Care REIT, Inc.

     10,700         675,063   

Keppel REIT Management Ltd.

     15,824         15,295   

Liberty Property Trust

     7,200         270,000   

Ventas, Inc. (a)

     11,213         740,955   
     

 

 

 
                2,845,585   

Road & Rail — 0.3%

     

CSX Corp. (a)

     10,600         299,132   

Semiconductors & Semiconductor Equipment — 2.3%

  

  

Intel Corp. (a)

     41,900         1,118,311   

Microchip Technology, Inc. (a)

     19,500         927,030   
     

 

 

 
                2,045,341   
Common Stocks    Shares      Value  

Software — 2.8%

     

Microsoft Corp. (a)

     41,500       $ 1,676,600   

Oracle Corp. Japan

     8,900         410,162   

SAP AG — ADR (a)

     5,450         441,396   
     

 

 

 
                2,528,158   

Specialty Retail — 2.7%

     

Hennes & Mauritz AB, B Shares

     21,500         880,058   

The Home Depot, Inc. (a)

     19,500         1,550,445   
     

 

 

 
                2,430,503   

Technology Hardware, Storage & Peripherals — 0.5%

     

Canon, Inc. — ADR (a)

     3,700         115,736   

Ricoh Co. Ltd.

     32,000         368,738   
     

 

 

 
                484,474   

Thrifts & Mortgage Finance — 0.3%

     

Hudson City Bancorp, Inc.

     25,800         256,968   

Tobacco — 4.7%

     

Altria Group, Inc. (a)

     40,700         1,632,477   

British American Tobacco PLC

     17,300         998,983   

Philip Morris International, Inc.

     10,400         888,472   

Reynolds American, Inc. (a)

     12,800         722,304   
     

 

 

 
                4,242,236   

Total Long-Term Investments

(Cost — $78,114,427) — 97.6%

              87,280,306   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.03% (b)(c)

     3,038,407         3,038,407   

Total Short-Term Securities

(Cost — $3,038,407) — 3.4%

              3,038,407   

Total Investments Before Options Written

(Cost — $81,152,834) — 101.0%

              90,318,713   
     
Options Written                

(Premiums Received — $529,380) — (1.0)%

              (875,586

Total Investments Net of Options Written — 100.0%

        89,443,127   

Liabilities in Excess of Other Assets — 0.0%

        (579
     

 

 

 

Net Assets — 100.0%

      $ 89,442,548   
     

 

 

 

 

 

 

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, 2014, 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, 2013
     Net
Activity
    Shares Held at
April 30, 2014
     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     3,708,345         (669,938     3,038,407       $ 856   

 

See Notes to Financial Statements.

 

30    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock Dividend Income Trust (BQY)   

 

 

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 the investment advisor. 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, 2014 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Altria Group, Inc.

     Call         USD         38.00         5/02/14         55       $ (11,440

Bank of America Corp.

     Call         USD         18.00         5/02/14         34         (34

The Goldman Sachs Group, Inc.

     Call         USD         167.50         5/02/14         10         (10

Microsoft Corp.

     Call         USD         40.50         5/02/14         42         (840

U.S. Bancorp.

     Call         USD         41.50         5/02/14         23         (115

The Walt Disney Co.

     Call         USD         81.00         5/02/14         102         (459

Cincinnati Financial Corp.

     Call         USD         48.50         5/05/14         23         (1,073

The Home Depot, Inc.

     Call         USD         80.00         5/05/14         18         (495

Johnson & Johnson

     Call         USD         98.00         5/05/14         31         (9,765

McDonald’s Corp.

     Call         USD         98.00         5/05/14         26         (8,450

Pfizer, Inc.

     Call         USD         31.00         5/05/14         44         (1,672

Pfizer, Inc.

     Call         USD         33.00         5/05/14         43         (43

United Technologies Corp.

     Call         USD         116.00         5/05/14         37         (8,510

Ventas, Inc.

     Call         USD         61.45         5/05/14         22         (10,188

M&T Bank Corp.

     Call         USD         119.35         5/07/14         18         (5,060

3M Co.

     Call         USD         136.00         5/09/14         22         (7,425

Altria Group, Inc.

     Call         USD         38.00         5/09/14         55         (11,605

Chevron Corp.

     Call         USD         118.00         5/09/14         24         (18,720

The Coca-Cola Co.

     Call         USD         38.50         5/09/14         44         (10,032

The Home Depot, Inc.

     Call         USD         78.00         5/09/14         42         (7,980

McDonald’s Corp.

     Call         USD         99.00         5/09/14         25         (6,325

Merck & Co., Inc.

     Call         USD         57.00         5/09/14         18         (3,276

QUALCOMM, Inc.

     Call         USD         80.00         5/09/14         17         (502

Mondelez International, Inc., Class A

     Call         USD         34.75         5/13/14         58         (6,448

3M Co.

     Call         USD         135.00         5/19/14         22         (9,900

Abbott Laboratories

     Call         USD         39.00         5/19/14         22         (803

Abbott Laboratories

     Call         USD         40.00         5/19/14         22         (198

AbbVie, Inc.

     Call         USD         55.00         5/19/14         10         (150

Aflac, Inc.

     Call         USD         65.00         5/19/14         28         (308

Altria Group, Inc.

     Call         USD         38.00         5/19/14         55         (11,853

Automatic Data Processing, Inc.

     Call         USD         75.00         5/19/14         53         (16,960

Bank of Nova Scotia

     Call         CAD         65.00         5/19/14         46         (7,198

BHP Billiton Ltd. — ADR

     Call         USD         67.50         5/19/14         16         (5,360

BHP Billiton Ltd. — ADR

     Call         USD         72.50         5/19/14         16         (592

The Coca-Cola Co.

     Call         USD         39.00         5/19/14         44         (8,052

CSX Corp.

     Call         USD         30.00         5/19/14         21         (52

Duke Energy Corp.

     Call         USD         72.50         5/19/14         20         (4,350

Emerson Electric Co.

     Call         USD         70.00         5/19/14         107         (3,745

Exxon Mobil Corp.

     Call         USD         100.00         5/19/14         108         (29,538

General Electric Co.

     Call         USD         26.00         5/19/14         107         (9,897

General Mills, Inc.

     Call         USD         51.75         5/19/14         140         (20,092

Genuine Parts Co.

     Call         USD         90.00         5/19/14         24         (600

HSBC Holdings PLC — ADR

     Call         USD         52.50         5/19/14         96         (2,304

Intel Corp.

     Call         USD         27.00         5/19/14         83         (1,120

Kraft Foods Group, Inc.

     Call         USD         57.50         5/19/14         39         (2,145

Merck & Co., Inc.

     Call         USD         57.50         5/19/14         18         (3,150

MetLife, Inc.

     Call         USD         55.00         5/19/14         13         (292

Microchip Technology, Inc.

     Call         USD         48.00         5/19/14         78         (6,435

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    31


Table of Contents
Schedule of Investments (continued)      BlackRock Dividend Income Trust (BQY)   

 

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (continued)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Microsoft Corp.

     Call         USD         40.00         5/19/14         27       $ (2,133

Mondelez International, Inc., Class A

     Call         USD         35.00         5/19/14         29         (2,929

Morgan Stanley

     Call         USD         31.00         5/19/14         42         (2,121

Morgan Stanley

     Call         USD         32.00         5/19/14         42         (651

PepsiCo, Inc.

     Call         USD         85.00         5/19/14         30         (4,500

Pfizer, Inc.

     Call         USD         31.00         5/19/14         34         (2,091

PPG Industries, Inc.

     Call         USD         195.00         5/19/14         23         (4,600

The Procter & Gamble Co.

     Call         USD         82.50         5/19/14         38         (3,325

Prudential Financial, Inc.

     Call         USD         88.00         5/19/14         36         (505

Reynolds American, Inc.

     Call         USD         55.00         5/19/14         51         (9,945

SAP AG — ADR

     Call         USD         80.00         5/19/14         21         (3,675

Siemens AG — ADR

     Call         USD         135.00         5/19/14         15         (1,762

Suncor Energy, Inc.

     Call         CAD         40.00         5/19/14         13         (2,853

T Rowe Price Group, Inc.

     Call         USD         80.00         5/19/14         22         (5,720

TransCanada Corp.

     Call         CAD         52.00         5/19/14         42         (709

Verizon Communications, Inc.

     Call         USD         48.00         5/19/14         33         (347

Wells Fargo & Co.

     Call         USD         49.00         5/19/14         31         (2,465

Cincinnati Financial Corp.

     Call         USD         48.50         5/22/14         23         (1,621

The Home Depot, Inc.

     Call         USD         78.00         5/23/14         18         (4,653

Intel Corp.

     Call         USD         27.00         5/23/14         1         (20

Microsoft Corp.

     Call         USD         41.00         5/23/14         15         (622

Pfizer, Inc.

     Call         USD         31.00         5/23/14         35         (2,503

U.S. Bancorp.

     Call         USD         41.50         5/23/14         23         (598

Verizon Communications, Inc.

     Call         USD         48.00         5/23/14         33         (594

Wells Fargo & Co.

     Call         USD         49.00         5/23/14         30         (2,595

Wells Fargo & Co.

     Call         USD         50.00         5/23/14         20         (700

Prudential Financial, Inc.

     Call         USD         85.00         5/28/14         36         (2,576

American Express Co.

     Call         USD         87.00         5/30/14         26         (5,018

General Electric Co.

     Call         USD         26.00         5/30/14         108         (10,854

Merck & Co., Inc.

     Call         USD         58.50         5/30/14         34         (5,151

Microsoft Corp.

     Call         USD         41.00         5/30/14         82         (4,018

Pfizer, Inc.

     Call         USD         31.50         5/30/14         44         (2,486

The Procter & Gamble Co.

     Call         USD         82.00         5/30/14         24         (3,432

Verizon Communications, Inc.

     Call         USD         48.50         5/30/14         20         (280

Canon, Inc. — ADR

     Call         USD         31.70         6/04/14         14         (714

Chevron Corp.

     Call         USD         125.00         6/06/14         20         (4,500

Intel Corp.

     Call         USD         26.50         6/06/14         83         (4,233

Johnson & Johnson

     Call         USD         101.00         6/06/14         31         (5,224

U.S. Bancorp.

     Call         USD         40.50         6/06/14         44         (3,894

Wal-Mart Stores, Inc.

     Call         USD         79.00         6/06/14         17         (2,780

Wells Fargo & Co.

     Call         USD         50.00         6/06/14         41         (2,030

AbbVie, Inc.

     Call         USD         50.00         6/23/14         31         (9,610

Ameren Corp.

     Call         USD         40.00         6/23/14         89         (16,020

Bristol-Myers Squibb Co.

     Call         USD         55.00         6/23/14         137         (6,233

Chevron Corp.

     Call         USD         125.00         6/23/14         21         (5,260

Dominion Resources, Inc.

     Call         USD         72.50         6/23/14         47         (6,345

Honeywell International, Inc.

     Call         USD         95.00         6/23/14         23         (2,242

Lockheed Martin Corp.

     Call         USD         165.00         6/23/14         17         (5,525

MetLife, Inc.

     Call         USD         52.50         6/23/14         13         (1,970

NextEra Energy, Inc.

     Call         USD         97.50         6/23/14         22         (8,250

QUALCOMM, Inc.

     Call         USD         80.00         6/23/14         17         (1,955

 

See Notes to Financial Statements.

 

32    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock Dividend Income Trust (BQY)   

 

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Verizon Communications, Inc.

     Call         USD         47.00         6/23/14         30       $ (2,535

Wal-Mart Stores, Inc.

     Call         USD         80.00         6/23/14         17         (2,218

Total

                  $ (465,151
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Sempra Energy

   Goldman Sachs International      Call         USD         97.72         5/02/14         1,900       $ (1,823

The Chubb Corp.

   Credit Suisse International      Call         USD         87.37         5/05/14         1,700         (8,008

Honeywell International, Inc.

   Deutsche Bank AG      Call         USD         94.27         5/05/14         2,300         (353

Mattel, Inc.

   Credit Suisse International      Call         USD         38.29         5/05/14         4,700         (4,618

Mondelez International, Inc., Class A

   Credit Suisse International      Call         USD         35.00         5/05/14         2,900         (2,212

Total SA — ADR

   Morgan Stanley & Co. International PLC      Call         USD         64.50         5/05/14         5,600         (37,746

Ventas, Inc.

   Citibank N.A.      Call         USD         61.50         5/05/14         2,200         (10,077

Wisconsin Energy Corp.

   Credit Suisse International      Call         USD         44.10         5/05/14         1,650         (7,228

Health Care REIT, Inc.

   Bank of America N.A.      Call         USD         61.07         5/06/14         4,200         (8,492

TeliaSonera AB

   Credit Suisse International      Call         SEK         48.83         5/07/14         21,300         (80

BHP Billiton PLC

   Morgan Stanley & Co. International PLC      Call         GBP         19.45         5/08/14         2,800         (678

GlaxoSmithKline PLC

   Credit Suisse International      Call         GBP         16.72         5/08/14         13,000         (367

Keppel Corp. Ltd.

   Deutsche Bank AG      Call         SGD         10.81         5/08/14         21,000         (315

Ricoh Co. Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         1,167.27         5/08/14         12,800         (3,151

Takeda Pharmaceutical Co. Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         4,989.44         5/08/14         4,300         (15

Frontier Communications Corp.

   JPMorgan Chase Bank N.A.      Call         USD         5.71         5/12/14         39,200         (12,498

NextEra Energy, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         94.50         5/12/14         3,900         (21,776

Zurich Insurance Group AG

   Deutsche Bank AG      Call         CHF         259.67         5/13/14         390         (371

Hang Seng Bank Ltd.

   Morgan Stanley & Co. International PLC      Call         HKD         124.33         5/14/14         7,000         (2,456

Hopewell Holdings Ltd.

   Morgan Stanley & Co. International PLC      Call         HKD         26.61         5/14/14         34,000         (1,414

Oracle Corp. Japan

   Citibank N.A.      Call         JPY         4,411.50         5/14/14         3,500         (10,464

Santos Ltd.

   Morgan Stanley & Co. International PLC      Call         AUD         13.43         5/14/14         26,600         (11,108

Allianz SE

   UBS AG      Call         EUR         120.73         5/15/14         1,400         (9,144

AstraZeneca PLC

   Morgan Stanley & Co. International PLC      Call         GBP         38.07         5/15/14         7,000         (102,972

Hudson City Bancorp, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         9.82         5/15/14         10,300         (2,189

Solvay SA

   Morgan Stanley & Co. International PLC      Call         EUR         114.53         5/15/14         900         (2,915

Philip Morris International, Inc.

   Citibank N.A.      Call         USD         83.21         5/20/14         2,050         (5,287

Nestle SA

   Morgan Stanley & Co. International PLC      Call         CHF         69.08         5/21/14         2,200         (932

The Chubb Corp.

   Credit Suisse International      Call         USD         92.36         5/28/14         1,700         (1,922

Equity Residential

   Morgan Stanley & Co. International PLC      Call         USD         58.00         5/28/14         4,300         (8,028

Frontier Communications Corp.

   JPMorgan Chase Bank N.A.      Call         USD         5.71         5/28/14         39,200         (15,538

HCP, Inc.

   Citibank N.A.      Call         USD         41.47         5/28/14         4,800         (3,543

Liberty Property Trust

   Goldman Sachs International      Call         USD         38.28         5/28/14         2,800         (1,041

Philip Morris International, Inc.

   Citibank N.A.      Call         USD         84.04         5/28/14         2,050         (4,186

Dominion Resources, Inc.

   Credit Suisse International      Call         USD         73.10         6/02/14         4,700         (4,644

BHP Billiton PLC

   Morgan Stanley & Co. International PLC      Call         GBP         19.39         6/03/14         2,800         (1,892

Vinci SA

   Deutsche Bank AG      Call         EUR         54.54         6/03/14         4,800         (8,597

Sanofi

   Morgan Stanley & Co. International PLC      Call         EUR         75.13         6/04/14         1,400         (5,166

Enbridge, Inc.

   Citibank N.A.      Call         CAD         51.10         6/05/14         4,800         (8,550

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.24         6/05/14         1,400         (4,357

Total SA — ADR

   Morgan Stanley & Co. International PLC      Call         USD         66.83         6/05/14         5,600         (24,886

SSE PLC

   Deutsche Bank AG      Call         GBP         15.17         6/10/14         14,000         (11,400

British American Tobacco PLC

   Bank of America N.A.      Call         GBP         34.51         6/11/14         7,000         (7,226

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    33


Table of Contents
Schedule of Investments (continued)      BlackRock Dividend Income Trust (BQY)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.62         6/12/14         600       $ (1,785

National Australia Bank Ltd.

   UBS AG      Call         AUD         35.53         6/13/14         12,800         (3,543

Wisconsin Energy Corp.

   Credit Suisse International      Call         USD         48.97         6/13/14         1,700         (818

CSX Corp.

   Morgan Stanley & Co. International PLC      Call         USD         28.52         6/17/14         2,100         (1,164

United Overseas Bank Ltd.

   UBS AG      Call         SGD         22.32         6/17/14         7,000         (1,855

Australia & New Zealand Banking Group Ltd.

   UBS AG      Call         AUD         33.99         6/18/14         7,200         (4,916

BASF SE

   Deutsche Bank AG      Call         EUR         83.64         6/18/14         3,800         (7,855

Hennes & Mauritz AB, B Shares

   Deutsche Bank AG      Call         SEK         278.62         6/18/14         8,600         (2,644

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.62         6/18/14         700         (2,153

Enbridge, Inc.

   Deutsche Bank AG      Call         CAD         53.00         6/21/14         2,500         (1,779

Enbridge, Inc.

   Deutsche Bank AG      Call         CAD         53.00         7/09/14         2,500         (2,258

Total

                     $ (410,435
                    

 

 

 

 

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 or 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 fair value hierarchy classification 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, please refer to Note 2 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, 2014:

 

      Level 1      Level 2      Level 3      Total  

Assets:

           

Investments:

           

Long-Term Investments:

           

Common Stocks:

           

Aerospace & Defense

   $ 2,900,668                       $ 2,900,668   

Banks

     5,191,334       $ 2,236,905                 7,428,239   

Beverages

     1,549,713         126,662                 1,676,375   

Capital Markets

     1,536,296                         1,536,296   

Chemicals

     1,122,996         1,486,380                 2,609,376   

Communications Equipment

     676,906                         676,906   

Construction & Engineering

             913,626                 913,626   

Consumer Finance

     577,038                         577,038   

Distributors

     531,432                         531,432   

Diversified Financial Services

     612,393                         612,393   

Diversified Telecommunication Services

     2,532,501         388,702                 2,921,203   

Electric Utilities

     1,925,038         902,523                 2,827,561   

 

See Notes to Financial Statements.

 

34    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (concluded)      BlackRock Dividend Income Trust (BQY)   

 

 

      Level 1     Level 2     Level 3      Total  

Assets: (concluded)

         

Investments: (concluded)

         

Long-Term Investments: (concluded)

         

Common Stocks: (concluded)

         

Electrical Equipment

   $ 1,827,224                     $ 1,827,224   

Food & Staples Retailing

     694,593                       694,593   

Food Products

     3,472,074      $ 440,520                3,912,594   

Health Care Equipment & Supplies

     430,014                       430,014   

Hotels, Restaurants & Leisure

     1,307,802                       1,307,802   

Household Products

     1,287,780                       1,287,780   

Industrial Conglomerates

     3,492,261        748,174                4,240,435   

Insurance

     3,589,446        906,383                4,495,829   

IT Services

     1,044,664                       1,044,664   

Leisure Products

     462,737                       462,737   

Machinery

            1,090,696                1,090,696   

Media

     2,023,170                       2,023,170   

Metals & Mining

     565,166        459,368                1,024,534   

Multi-Utilities

     3,501,615                       3,501,615   

Oil, Gas & Consumable Fuels

     9,154,302        853,900                10,008,202   

Pharmaceuticals

     6,439,143        3,145,764                9,584,907   

Real Estate Investment Trusts (REITs)

     2,830,290        15,295                2,845,585   

Road & Rail

     299,132                       299,132   

Semiconductors & Semiconductor Equipment

     2,045,341                       2,045,341   

Software

     2,117,996        410,162                2,528,158   

Specialty Retail

     1,550,445        880,058                2,430,503   

Technology Hardware, Storage & Peripherals

     115,736        368,738                484,474   

Thrifts & Mortgage Finance

     256,968                       256,968   

Tobacco

     3,243,253        998,983                4,242,236   

Short-Term Securities

     3,038,407                       3,038,407   

Total

   $ 73,945,874      $ 16,372,839              $ 90,318,713   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (416,874   $ (458,712           $ (875,586

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

       

The carrying amount for certain of the Trust’s assets approximates fair value for financial statement purposes. As of April 30, 2014, such assets are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash

   $ 23,966                     $ 23,966   

Foreign currency at value

     26,460                       26,460   

Total

   $ 50,426                     $ 50,426   
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2014.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    35


Table of Contents
Schedule of Investments April 30, 2014 (Unaudited)      BlackRock EcoSolutions Investment Trust (BQR)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Auto Components — 0.9%

     

Johnson Controls, Inc. (a)(b)

     23,200       $ 1,047,248   

Biotechnology — 0.3%

     

Genus PLC

     18,000         307,820   

Building Products — 0.5%

     

Kingspan Group PLC (c)

     31,800         598,456   

Chemicals — 16.7%

     

Agrium, Inc.

     28,500         2,737,995   

Air Liquide SA

     4,300         615,190   

CF Industries Holdings, Inc. (a)

     3,000         735,510   

FMC Corp. (a)

     2,800         215,600   

Incitec Pivot Ltd.

     261,700         702,471   

Israel Chemicals Ltd.

     50,000         443,763   

Johnson Matthey PLC

     17,304         957,252   

Linde AG

     2,900         602,285   

Monsanto Co. (a)

     36,700         4,062,690   

The Mosaic Co. (a)

     30,000         1,501,200   

Novozymes A/S, B Shares

     27,900         1,337,668   

Nufarm Ltd.

     57,460         222,283   

Potash Corp. of Saskatchewan, Inc. (a)

     34,000         1,229,440   

Sinofert Holdings Ltd.

     2,165,500         268,810   

Syngenta AG

     6,000         2,375,950   

Umicore SA

     5,400         264,701   

Uralkali OJSC — GDR

     20,000         443,608   

Wacker Chemie AG

     5,600         658,282   
     

 

 

 
                19,374,698   

Commercial Services & Supplies — 2.7%

     

Covanta Holding Corp. (a)

     9,900         182,655   

Tetra Tech, Inc. (c)

     63,500         1,820,545   

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

     2,007,000         1,065,479   
     

 

 

 
                3,068,679   

Construction & Engineering — 1.1%

     

Aegion Corp. (a)(c)

     11,400         290,586   

KBR, Inc.

     14,600         370,402   

Layne Christensen Co. (a)(c)

     10,100         175,942   

Quanta Services, Inc. (a)(c)

     11,200         395,136   
     

 

 

 
                1,232,066   

Electric Utilities — 2.4%

     

Fortum OYJ

     16,900         381,806   

ITC Holdings Corp.

     32,900         1,216,313   

NextEra Energy, Inc. (a)(b)

     11,300         1,128,305   
     

 

 

 
                2,726,424   

Electrical Equipment — 5.0%

     

ABB Ltd.

     25,400         611,533   

Eaton Corp. PLC (a)

     8,700         631,968   

Regal-Beloit Corp. (a)

     11,300         844,449   

Roper Industries, Inc. (a)

     12,840         1,784,118   

Schneider Electric SA

     10,700         1,004,418   

Vestas Wind Systems A/S (c)

     21,833         969,628   
     

 

 

 
                5,846,114   

Electronic Equipment, Instruments & Components — 1.5%

  

  

Azbil Corp.

     9,800         222,389   

Itron, Inc. (a)(c)

     6,800         258,400   

Trimble Navigation Ltd. (a)(c)

     33,000         1,268,190   
     

 

 

 
                1,748,979   

Food & Staples Retailing — 1.2%

     

The Andersons, Inc. (a)

     15,000         934,350   
Common Stocks    Shares      Value  

Food & Staples Retailing (concluded)

     

Total Produce PLC (c)

     330,000       $ 476,595   
     

 

 

 
                1,410,945   

Food Products — 17.9%

     

Archer-Daniels-Midland Co. (a)

     97,200         4,250,556   

BrasilAgro — Co. Brasileira de Propriedades Agricolas

     400,000         1,612,737   

BRF SA — ADR

     104,000         2,350,400   

Bunge Ltd. (a)

     36,600         2,915,190   

Illovo Sugar Ltd.

     200,000         551,305   

Ingredion, Inc. (a)

     6,000         422,700   

IOI Corp. Bhd

     533,333         816,086   

Origin Enterprises PLC (c)

     30,000         324,639   

Sao Martinho SA

     100,000         1,475,950   

Select Harvests Ltd.

     54,633         320,418   

SLC Agricola SA

     150,000         1,155,062   

SunOpta, Inc. (a)(c)

     43,600         508,812   

Tyson Foods, Inc., Class A (a)

     66,000         2,770,020   

Wilmar International Ltd.

     378,000         1,027,334   

Wynnstay Group PLC

     24,600         250,660   
     

 

 

 
                20,751,869   

Independent Power and Renewable Electricity Producers — 2.2%

  

  

China Longyuan Power Group Corp., Series H

     488,000         502,639   

EDP Renovaveis SA (c)

     146,500         1,004,643   

Enel Green Power SpA (a)

     223,400         639,371   

Greenko Group PLC (c)

     59,000         160,380   

Ormat Technologies, Inc. (a)

     11,000         293,480   
     

 

 

 
                2,600,513   

Industrial Conglomerates — 1.1%

     

Danaher Corp. (a)

     16,800         1,232,784   

Machinery — 8.7%

     

Deere & Co. (a)

     10,000         933,400   

IDEX Corp. (a)

     9,150         682,316   

Kubota Corp.

     80,000         1,031,082   

Kurita Water Industries Ltd.

     56,500         1,189,895   

Pall Corp. (a)

     9,300         782,595   

Pentair Ltd. (a)

     23,960         1,779,988   

Watts Water Technologies, Inc., Class A (a)

     27,300         1,452,360   

Xylem, Inc.

     59,500         2,236,605   
     

 

 

 
                10,088,241   

Multi-Utilities — 3.5%

     

Hera SpA

     361,600         1,064,533   

National Grid PLC

     33,700         478,984   

Suez Environnement Co.

     9,925         195,021   

Veolia Environnement SA

     126,000         2,350,639   
     

 

 

 
                4,089,177   

Oil, Gas & Consumable Fuels — 2.1%

     

AltaGas Ltd. (a)

     15,500         660,417   

Oil Search Ltd.

     47,900         396,851   

Sasol Ltd.

     10,100         566,048   

TransCanada Corp. (a)

     13,000         605,848   

Veresen, Inc.

     12,000         177,474   
     

 

 

 
                2,406,638   

Paper & Forest Products — 1.0%

     

Canfor Corp. (a)(c)

     25,000         567,036   

International Forest Products Ltd., Class A (c)

     35,000         530,724   

Precious Woods Holding AG

     20,000         45,449   
     

 

 

 
                1,143,209   
 

 

See Notes to Financial Statements.

 

36    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)     

 

BlackRock EcoSolutions Investment Trust (BQR)

(Percentages shown are based on Net Assets)

  

  

 

Common Stocks    Shares      Value  

Real Estate Investment Trusts (REITs) — 2.0%

     

Plum Creek Timber Co., Inc.

     20,000       $ 872,000   

Rayonier, Inc.

     12,000         541,200   

Weyerhaeuser Co. (a)

     31,000         925,350   
     

 

 

 
                2,338,550   

Real Estate Management & Development — 0.2%

     

Cresud SACIF y A — ADR

     20,000         241,400   

Semiconductors & Semiconductor Equipment — 1.1%

     

Aixtron SE (c)

     7,600         121,005   

SMA Solar Technology AG

     2,600         108,871   

Trina Solar Ltd. — ADR (a)(c)

     54,100         604,838   

Veeco Instruments, Inc. (a)(c)

     11,200         414,064   
     

 

 

 
                1,248,778   

Water Utilities — 25.1%

     

American States Water Co.

     75,800         2,301,288   

American Water Works Co., Inc.

     51,600         2,349,348   

Aqua America, Inc.

     116,525         2,923,612   

Artesian Resources Corp., Class A

     37,200         819,144   

California Water Service Group

     86,200         1,939,500   

China Water Affairs Group Ltd.

     4,556,000         1,535,998   

Cia de Saneamento Basico do Estado de Sao Paulo

     105,000         995,964   

Cia de Saneamento de Minas Gerais — COPASA

     43,100         673,441   

Guangdong Investment Ltd.

     563,000         612,098   

Hyflux Ltd.

     749,000         717,151   

Inversiones Aguas Metropolitanas SA

     1,500,000         2,482,893   

Manila Water Co., Inc.

     5,610,000         3,358,060   
Common Stocks    Shares      Value  

Water Utilities (concluded)

     

Pennon Group PLC

     215,200       $ 2,754,905   

Severn Trent PLC

     113,500         3,535,617   

United Utilities Group PLC

     158,381         2,130,375   
     

 

 

 
                29,129,394   

Total Long-Term Investments

(Cost — $98,187,781) — 97.2%

              112,631,982   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.03% (d)(e)

     4,186,554         4,186,554   

Total Short-Term Securities

(Cost — $4,186,554) — 3.6%

              4,186,554   

Total Investments Before Options Written

(Cost — $102,374,335) — 100.8%

              116,818,536   
     
Options Written                

(Premiums Received — $982,018) — (1.0)%

              (1,174,848

Total Investments Net of Options Written — 99.8%

        115,643,688   

Other Assets Less Liabilities — 0.2%

        246,567   
     

 

 

 

Net Assets — 100.0%

      $ 115,890,255   
     

 

 

 
 

 

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) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(c) Non-income producing security.

 

(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, 2014, 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, 2013
    

Net

Activity

    Shares Held at
April 30, 2014
     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     7,688,865         (3,502,311     4,186,554       $ 1,326   

BlackRock Liquidity Series, LLC Money Market Series

                          $ 1,261   

 

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 the investment advisor. 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, 2014 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

The Andersons, Inc.

     Call         USD         57.00         5/05/14         68       $ (35,991

Covanta Holding Corp.

     Call         USD         18.45         5/05/14         44         (1,084

Deere & Co.

     Call         USD         89.00         5/05/14         45         (19,682

Archer-Daniels-Midland Co.

     Call         USD         43.50         5/09/14         4         (248

CF Industries Holdings, Inc.

     Call         USD         260.00         5/09/14         14         (1,470

The Mosaic Co.

     Call         USD         50.00         5/09/14         17         (1,556

Potash Corp. of Saskatchewan, Inc.

     Call         USD         35.50         5/09/14         39         (3,334

NextEra Energy, Inc.

     Call         USD         94.75         5/12/14         26         (13,935

Aegion Corp.

     Call         USD         25.00         5/19/14         51         (4,208

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    37


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

 

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

AltaGas Ltd.

     Call         CAD         46.00         5/19/14         69       $ (5,981

Archer-Daniels-Midland Co.

     Call         USD         44.00         5/19/14         32         (1,472

Bunge Ltd.

     Call         USD         82.50         5/19/14         170         (18,700

Canfor Corp.

     Call         CAD         28.00         5/19/14         112         (613

Danaher Corp.

     Call         USD         75.00         5/19/14         76         (3,420

FMC Corp.

     Call         USD         80.00         5/19/14         12         (630

IDEX Corp.

     Call         USD         75.00         5/19/14         41         (16,400

Ingredion, Inc.

     Call         USD         70.00         5/19/14         27         (3,578

Layne Christensen Co.

     Call         USD         17.50         5/19/14         45         (6,188

The Mosaic Co.

     Call         USD         47.50         5/19/14         118         (32,745

Pall Corp.

     Call         USD         90.00         5/19/14         41         (1,025

Pentair Ltd.

     Call         USD         80.00         5/19/14         110         (825

Potash Corp. of Saskatchewan, Inc.

     Call         USD         36.00         5/19/14         114         (7,752

Quanta Services, Inc.

     Call         USD         36.00         5/19/14         26         (1,820

Quanta Services, Inc.

     Call         USD         38.00         5/19/14         26         (520

Regal-Beloit Corp.

     Call         USD         75.00         5/19/14         50         (8,875

Roper Industries, Inc.

     Call         USD         135.00         5/19/14         29         (13,920

TransCanada Corp.

     Call         CAD         52.00         5/19/14         34         (574

Trimble Navigation Ltd.

     Call         USD         40.00         5/19/14         149         (12,665

Tyson Foods, Inc., Class A

     Call         USD         43.00         5/19/14         148         (9,990

Tyson Foods, Inc., Class A

     Call         USD         44.00         5/19/14         149         (5,215

Veeco Instruments, Inc.

     Call         USD         41.00         5/19/14         50         (1,750

Watts Water Technologies, Inc., Class A

     Call         USD         60.00         5/19/14         61         (1,525

Itron, Inc.

     Call         USD         36.00         5/22/14         30         (7,436

Monsanto Co.

     Call         USD         112.00         5/22/14         82         (11,054

Ormat Technologies, Inc.

     Call         USD         28.15         5/22/14         45         (1,453

SunOpta, Inc.

     Call         USD         12.00         5/22/14         125         (3,963

Wisconsin Energy Corp.

     Call         USD         28.75         5/22/14         286         (23,197

Archer-Daniels-Midland Co.

     Call         USD         44.00         5/23/14         32         (1,872

Eaton Corp. PLC

     Call         USD         76.00         5/23/14         39         (780

Archer-Daniels-Midland Co.

     Call         USD         45.00         5/30/14         368         (11,592

SunOpta, Inc.

     Call         USD         11.55         5/30/14         72         (4,275

Monsanto Co.

     Call         USD         115.00         6/10/14         83         (8,214

Enel Green Power SpA

     Call         EUR         2.10         6/20/14         100         (10,377

Johnson Controls, Inc.

     Call         USD         48.00         6/23/14         104         (3,900

NextEra Energy, Inc.

     Call         USD         97.50         6/23/14         24         (9,000

Trina Solar Ltd. — ADR

     Call         USD         14.00         6/23/14         121         (4,537

Watts Water Technologies, Inc., Class A

     Call         USD         60.00         6/23/14         61         (1,830

Weyerhaeuser Co.

     Call         USD         30.00         6/23/14         48         (2,640

Total

                  $ (343,811
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

TransCanada Corp.

   Deutsche Bank AG      Call         CAD         51.08         5/02/14         2,400       $ (276

American Water Works Co., Inc.

   Citibank N.A.      Call         USD         45.54         5/05/14         5,700         (3,274

BRF SA — ADR

   UBS AG      Call         USD         19.33         5/05/14         49,500         (161,880

California Water Service Group

   Goldman Sachs International      Call         USD         22.95         5/05/14         14,600         (671

ITC Holdings Corp.

   Morgan Stanley & Co. International PLC      Call         USD         36.59         5/05/14         7,500         (4,160

ABB Ltd.

   Goldman Sachs International      Call         CHF         23.38         5/06/14         11,500         (4

Illovo Sugar Ltd.

   UBS AG      Call         ZAR         28.55         5/06/14         26,000         (1,670

 

See Notes to Financial Statements.

 

38    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Uralkali OJSC — GDR

   Morgan Stanley & Co. International PLC      Call         USD         23.39         5/06/14         9,000       $ (466

American Water Works Co., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         45.94         5/07/14         5,800         (2,957

Total Produce PLC

   Goldman Sachs International      Call         EUR         1.03         5/07/14         90,000         (2,853

Air Liquide SA

   Morgan Stanley & Co. International PLC      Call         EUR         99.73         5/08/14         1,900         (9,188

Guangdong Investment Ltd.

   Goldman Sachs International      Call         HKD         8.20         5/08/14         124,000         (4,530

Incitec Pivot Ltd.

   UBS AG      Call         AUD         3.23         5/08/14         117,700         (729

Linde AG

   Goldman Sachs International      Call         EUR         146.80         5/08/14         1,300         (6,467

Select Harvests Ltd.

   Morgan Stanley & Co. International PLC      Call         AUD         6.78         5/08/14         24,300         (390

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

   Deutsche Bank AG      Call         HKD         3.94         5/08/14         300,000         (10,282

ITC Holdings Corp.

   Citibank N.A.      Call         USD         37.48         5/09/14         7,200         (1,717

Agrium, Inc.

   Credit Suisse International      Call         USD         97.00         5/13/14         6,400         (7,148

Cia de Saneamento de Minas Gerais — COPASA

   Goldman Sachs International      Call         BRL         35.33         5/13/14         3,300         (1,285

Illovo Sugar Ltd.

   UBS AG      Call         ZAR         28.55         5/13/14         27,000         (2,209

Kingspan Group PLC

   Goldman Sachs International      Call         EUR         14.04         5/13/14         3,000         (366

Syngenta AG

   Goldman Sachs International      Call         CHF         340.78         5/13/14         2,700         (25,338

Xylem, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         39.00         5/13/14         26,700         (10,065

China Longyuan Power Group Corp., Series H

   Deutsche Bank AG      Call         HKD         8.16         5/14/14         219,000         (6,251

Guangdong Investment Ltd.

   Morgan Stanley & Co. International PLC      Call         HKD         7.36         5/14/14         130,000         (17,954

Israel Chemicals Ltd.

   Goldman Sachs International      Call         ILS         31.24         5/14/14         22,500         (2,528

Severn Trent PLC

   Deutsche Bank AG      Call         GBP         18.13         5/14/14         25,500         (20,923

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

   Deutsche Bank AG      Call         HKD         3.94         5/14/14         300,000         (11,943

Veresen, Inc.

   Deutsche Bank AG      Call         CAD         16.61         5/14/14         5,400         (519

Weyerhaeuser Co.

   Citibank N.A.      Call         USD         29.77         5/14/14         4,400         (1,282

Wilmar International Ltd.

   Deutsche Bank AG      Call         SGD         3.50         5/14/14         85,000         (395

American States Water Co.

   Bank of America N.A.      Call         USD         31.10         5/15/14         17,050         (4,245

Aqua America, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         25.60         5/15/14         18,000         (2,776

California Water Service Group

   Citibank N.A.      Call         USD         22.87         5/20/14         24,000         (5,100

Cia de Saneamento de Minas Gerais — COPASA

   Goldman Sachs International      Call         BRL         35.33         5/20/14         3,300         (1,703

Inversiones Aguas Metropolitanas SA

   Deutsche Bank AG      Call         CLP         919.59         5/20/14         225,000         (10,130

SLC Agricola SA

   Credit Suisse International      Call         BRL         18.70         5/20/14         25,000         (576

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

   Deutsche Bank AG      Call         HKD         3.94         5/20/14         300,000         (13,473

Kingspan Group PLC

   Goldman Sachs International      Call         EUR         13.80         5/21/14         2,600         (801

Novozymes A/S, B Shares

   Morgan Stanley & Co. International PLC      Call         DKK         240.69         5/21/14         13,400         (44,788

SMA Solar Technology AG

   Morgan Stanley & Co. International PLC      Call         EUR         45.79         5/21/14         1,100         (1

Wacker Chemie AG

   Morgan Stanley & Co. International PLC      Call         EUR         88.25         5/21/14         2,500         (6,398

Aixtron SE

   Morgan Stanley & Co. International PLC      Call         EUR         12.26         5/22/14         1,700         (265

Total Produce PLC

   Goldman Sachs International      Call         EUR         1.06         5/22/14         58,500         (1,978

International Forest Products Ltd., Class A

   Goldman Sachs International      Call         CAD         15.80         5/23/14         13,600         (13,915

Agrium, Inc.

   Credit Suisse International      Call         USD         97.00         5/27/14         6,400         (11,435

American States Water Co.

   Bank of America N.A.      Call         USD         31.10         5/27/14         17,050         (7,260

Azbil Corp.

   Morgan Stanley & Co. International PLC      Call         JPY         2,569.02         5/27/14         4,400         (207

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    39


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

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Cia de Saneamento de Minas Gerais — COPASA

   Citibank N.A.      Call         BRL         35.86         5/28/14         9,700       $ (5,228

Cresud SACIF y A — ADR

   Goldman Sachs International      Call         USD         11.52         5/28/14         9,000         (7,348

Sao Martinho SA

   UBS AG      Call         BRL         32.44         5/28/14         24,000         (16,630

SLC Agricola SA

   Deutsche Bank AG      Call         BRL         18.87         5/28/14         25,000         (876

Wilmar International Ltd.

   Deutsche Bank AG      Call         SGD         3.50         5/28/14         85,000         (1,000

Johnson Matthey PLC

   Morgan Stanley & Co. International PLC      Call         GBP         31.11         5/29/14         7,800         (24,295

Aqua America, Inc.

   Goldman Sachs International      Call         USD         25.95         5/30/14         34,400         (6,923

American Water Works Co., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         46.66         6/02/14         5,700         (5,062

Illovo Sugar Ltd.

   Deutsche Bank AG      Call         ZAR         29.73         6/03/14         37,000         (2,408

National Grid PLC

   Morgan Stanley & Co. International PLC      Call         GBP         8.31         6/03/14         15,000         (5,377

Suez Environnement Co.

   Morgan Stanley & Co. International PLC      Call         EUR         13.95         6/04/14         4,500         (1,358

China Water Affairs Group Ltd.

   Bank of America N.A.      Call         HKD         2.94         6/05/14         500,000         (1,811

Schneider Electric SA

   Bank of America N.A.      Call         EUR         68.36         6/05/14         4,800         (6,078

Sao Martinho SA

   UBS AG      Call         BRL         26.89         6/06/14         24,200         (73,838

Veolia Environnement SA

   Deutsche Bank AG      Call         EUR         13.99         6/06/14         56,700         (17,003

American Water Works Co., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         45.75         6/09/14         6,000         (4,453

Kubota Corp.

   UBS AG      Call         JPY         1,365.00         6/10/14         36,000         (12,589

Cia de Saneamento de Minas Gerais — COPASA

   Goldman Sachs International      Call         BRL         35.67         6/11/14         3,300         (2,276

Fortum OYJ

   Credit Suisse International      Call         EUR         16.81         6/11/14         7,700         (2,756

Inversiones Aguas Metropolitanas SA

   UBS AG      Call         CLP         943.33         6/11/14         225,000         (6,322

Kurita Water Industries Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         2,164.44         6/11/14         25,400         (13,477

Pennon Group PLC

   Goldman Sachs International      Call         GBP         7.44         6/11/14         96,900         (38,879

SLC Agricola SA

   Deutsche Bank AG      Call         BRL         17.34         6/11/14         17,000         (4,600

Vestas Wind Systems A/S

   Goldman Sachs International      Call         DKK         244.77         6/11/14         9,800         (19,705

Oil Search Ltd.

   UBS AG      Call         AUD         8.73         6/12/14         21,500         (7,207

Severn Trent PLC

   Bank of America N.A.      Call         GBP         18.42         6/13/14         25,500         (22,801

Roper Industries, Inc.

   Goldman Sachs International      Call         USD         135.00         6/16/14         2,900         (16,524

Aixtron SE

   Morgan Stanley & Co. International PLC      Call         EUR         12.26         6/17/14         1,700         (575

Hyflux Ltd.

   Bank of America N.A.      Call         SGD         1.23         6/17/14         169,000         (3,562

Umicore SA

   Morgan Stanley & Co. International PLC      Call         EUR         37.78         6/25/14         2,400         (566

China Water Affairs Group Ltd.

   Bank of America N.A.      Call         HKD         2.68         6/26/14         500,000         (7,689

United Utilities Group PLC

   Bank of America N.A.      Call         GBP         7.85         7/01/14         71,300         (21,190

EDP Renovaveis SA

   UBS AG      Call         EUR         4.84         7/02/14         33,400         (10,548

EDP Renovaveis SA

   UBS AG      Call         EUR         4.69         7/16/14         32,500         (15,312

Total

                     $ (831,037
                    

 

 

 

 

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 or 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.

 

40    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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

 

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 fair value hierarchy classification 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, please refer to Note 2 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, 2014:

 

      Level 1   Level 2   Level 3    Total

Assets:

                 

Investments:

                 

Long-Term Investments:

                 

Common Stocks:

                 

Auto Components

     $ 1,047,248                        $ 1,047,248  

Biotechnology

             $ 307,820                  307,820  

Building Products

       598,456                          598,456  

Chemicals

       10,482,435         8,892,263                  19,374,698  

Commercial Services & Supplies

       2,003,200         1,065,479                  3,068,679  

Construction & Engineering

       1,232,066                          1,232,066  

Electric Utilities

       2,344,618         381,806                  2,726,424  

Electrical Equipment

       3,260,535         2,585,579                  5,846,114  

Electronic Equipment, Instruments & Components

       1,526,590         222,389                  1,748,979  

Food & Staples Retailing

       1,410,945                          1,410,945  

Food Products

       18,588,031         2,163,838                  20,751,869  

Independent Power and Renewable Electricity Producers

       453,860         2,146,653                  2,600,513  

Industrial Conglomerates

       1,232,784                          1,232,784  

Machinery

       7,867,264         2,220,977                  10,088,241  

Multi-Utilities

       1,064,533         3,024,644                  4,089,177  

Oil, Gas & Consumable Fuels

       1,443,739         962,899                  2,406,638  

Paper & Forest Products

       1,097,760         45,449                  1,143,209  

Real Estate Investment Trusts (REITs)

       2,338,550                          2,338,550  

Real Estate Management & Development

       241,400                          241,400  

Semiconductors & Semiconductor Equipment

       1,018,902         229,876                  1,248,778  

Water Utilities

       18,020,807         11,108,587                  29,129,394  

Short-Term Securities

       4,186,554                          4,186,554  

Total

     $ 81,460,277       $ 35,358,259                $ 116,818,536  
    

 

 

 
                 
      Level 1   Level 2   Level 3    Total

Derivative Financial Instruments1

                 

Liabilities:

                 

Equity contracts

     $ (203,149 )     $ (971,699 )              $ (1,174,848 )

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

       

The carrying amount for certain of the Trust’s assets approximates fair value for financial statement purposes. As of April 30, 2014, such assets are categorized within the disclosure hierarchy as follows:    
                 
      Level 1   Level 2   Level 3    Total

Assets:

                 

Foreign currency at value.

     $ 16,164                        $ 16,164  

Cash pledged as collateral for OTC derivatives

       100,000                          100,000  

Total

     $ 116,164                        $ 116,164  
    

 

 

 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    41


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

 

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, 2013, securities with a value of $4,116,506 were systematically fair valued due to significant market movements, but were not valued using systematic fair values as of April 30, 2014. Therefore, these securities were transferred from Level 2 to Level 1 during the period October 31, 2013 to April 30, 2014.

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, 2013 the Trust did not utilize the external pricing service model adjustments as significant market movements did not occur. As of April 30, 2014, securities with a value of $1,002,701 were systematically fair valued due to significant market movements. Therefore, these securities were transferred from Level 1 to Level 2 during the period October 31, 2013 to April 30, 2014.

 

See Notes to Financial Statements.

 

42    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments April 30, 2014 (Unaudited)     

 

BlackRock Energy and Resources Trust (BGR)

(Percentages shown are based on Net Assets)

  

  

 

Common Stocks    Shares      Value  

Energy Equipment & Services — 9.4%

     

Cameron International Corp. (a)(b)

     203,260       $ 13,203,770   

Halliburton Co. (b)

     446,900         28,185,983   

Schlumberger Ltd. (b)

     372,224         37,799,347   
     

 

 

 
                79,189,100   

Oil, Gas & Consumable Fuels — 88.4%

     

Anadarko Petroleum Corp. (b)(c)

     371,833         36,818,904   

BG Group PLC

     1,218,500         24,649,310   

BP PLC — ADR (b)

     802,700         40,632,674   

Cairn Energy PLC (a)

     1,856,000         5,780,994   

Canadian Natural Resources Ltd. (b)

     414,000         16,868,975   

Canadian Oil Sands Ltd. (b)

     316,013         6,850,480   

Caracal Energy, Inc. (a)

     1,061,900         9,735,458   

Chevron Corp. (b)(c)

     664,828         83,449,211   

Cimarex Energy Co. (b)

     139,900         16,664,888   

ConocoPhillips (b)

     600,000         44,586,000   

CONSOL Energy, Inc. (b)

     218,021         9,704,115   

Devon Energy Corp. (b)

     160,500         11,235,000   

Enbridge, Inc. (b)

     223,800         10,799,491   

Encana Corp. (b)

     739,000         17,118,936   

EOG Resources, Inc. (b)

     259,200         25,401,600   

Exxon Mobil Corp. (b)(c)

     792,100         81,118,961   

Imperial Oil Ltd. (b)

     196,000         9,570,658   

Kosmos Energy Ltd. (a)

     881,407         9,624,964   

Murphy Oil Corp.

     128,500         8,150,755   

Noble Energy, Inc. (b)

     407,492         29,249,776   

Oil Search Ltd.

     2,232,863         18,499,240   

Phillips 66 (b)

     186,300         15,503,886   

Pioneer Natural Resources Co. (b)

     109,500         21,163,065   

 

Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels (concluded)

     

Range Resources Corp. (b)

     138,400       $ 12,518,280   

Royal Dutch Shell PLC — ADR

     1,216,800         95,810,832   

Southwestern Energy Co. (a)(b)

     261,300         12,511,044   

Statoil ASA

     763,526         23,276,405   

Total SA

     366,000         26,185,133   

TransCanada Corp. (b)

     445,000         20,738,652   
     

 

 

 
                744,217,687   

Total Long-Term Investments

(Cost — $694,491,167) — 97.8%

              823,406,787   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.03% (d)(e)

     31,463,547         31,463,547   

Total Short-Term Securities

(Cost — $31,463,547) — 3.7%

              31,463,547   

Total Investments Before Options Written

(Cost — $725,954,714) — 101.5%

              854,870,334   
     
Options Written                

(Premiums Received — $5,396,719) — (1.3)%

              (11,333,766

Total Investments Net of Options Written — 100.2%

        843,536,568   

Liabilities in Excess of Other Assets — (0.2)%

        (1,362,834
     

 

 

 

Net Assets — 100.0%

      $ 842,173,734   
     

 

 

 
 

 

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) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(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, 2014, 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, 2013
    

Net

Activity

    Shares Held at
April 30, 2014
     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     60,810,523         (29,346,976     31,463,547       $ 10,556   

 

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 the investment advisor. 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, 2014 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

BP PLC — ADR

     Call         USD         49.50         5/02/14         845       $ (100,978

EOG Resources, Inc.

     Call         USD         100.00         5/02/14         408         (9,384

Exxon Mobil Corp.

     Call         USD         94.00         5/02/14         1,235         (1,000,350

Schlumberger Ltd.

     Call         USD         91.00         5/02/14         151         (153,642

Chevron Corp.

     Call         USD         120.00         5/05/14         261         (149,423

ConocoPhillips

     Call         USD         68.50         5/05/14         1,252         (757,460

Schlumberger Ltd.

     Call         USD         93.00         5/05/14         502         (425,445

EOG Resources, Inc.

     Call         USD         100.00         5/09/14         406         (75,719

EOG Resources, Inc.

     Call         USD         102.00         5/09/14         104         (12,532

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    43


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

 

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

BP PLC — ADR

     Call         USD         48.00         5/19/14         844       $ (217,752

Cameron International Corp.

     Call         USD         65.00         5/19/14         712         (80,100

Canadian Natural Resources Ltd.

     Call         CAD         46.00         5/19/14         735         (24,141

Canadian Oil Sands Ltd.

     Call         CAD         23.00         5/19/14         930         (75,092

Cimarex Energy Co.

     Call         USD         125.00         5/19/14         201         (30,652

ConocoPhillips

     Call         USD         75.00         5/19/14         1,254         (83,391

CONSOL Energy, Inc.

     Call         USD         43.00         5/19/14         381         (71,628

Devon Energy Corp.

     Call         USD         72.50         5/19/14         561         (33,660

Encana Corp.

     Call         CAD         26.00         5/19/14         1,293         (47,777

Halliburton Co.

     Call         USD         62.50         5/19/14         551         (83,201

Imperial Oil Ltd.

     Call         CAD         50.00         5/19/14         343         (111,877

Imperial Oil Ltd.

     Call         CAD         52.00         5/19/14         343         (54,765

Noble Energy, Inc.

     Call         USD         75.00         5/19/14         555         (16,650

Phillips 66

     Call         USD         80.00         5/19/14         652         (237,980

Pioneer Natural Resources Co.

     Call         USD         195.00         5/19/14         191         (96,455

Range Resources Corp.

     Call         USD         92.50         5/19/14         242         (25,410

Range Resources Corp.

     Call         USD         95.00         5/19/14         242         (10,890

Schlumberger Ltd.

     Call         USD         92.50         5/19/14         649         (592,212

Southwestern Energy Co.

     Call         USD         47.00         5/19/14         642         (112,992

TransCanada Corp.

     Call         CAD         52.00         5/19/14         608         (10,262

BP PLC — ADR

     Call         USD         48.50         5/23/14         1,120         (233,520

Chevron Corp.

     Call         USD         123.00         5/23/14         525         (174,563

Chevron Corp.

     Call         USD         123.00         5/30/14         525         (181,125

Exxon Mobil Corp.

     Call         USD         101.00         5/30/14         769         (163,797

Anadarko Petroleum Corp.

     Call         USD         100.00         6/04/14         590         (156,735

Chevron Corp.

     Call         USD         125.00         6/06/14         507         (114,075

Exxon Mobil Corp.

     Call         USD         101.00         6/06/14         769         (171,103

Halliburton Co.

     Call         USD         64.50         6/06/14         553         (61,383

Anadarko Petroleum Corp.

     Call         USD         100.00         6/23/14         712         (233,180

Chevron Corp.

     Call         USD         125.00         6/23/14         508         (127,254

Cimarex Energy Co.

     Call         USD         120.00         6/23/14         289         (157,505

Encana Corp.

     Call         CAD         26.00         6/23/14         1,294         (79,691

Halliburton Co.

     Call         USD         67.50         6/23/14         460         (25,760

Pioneer Natural Resources Co.

     Call         USD         205.00         6/23/14         192         (84,480

CONSOL Energy, Inc.

     Call         USD         44.00         7/21/14         381         (91,059

Total

                  $ (6,757,050
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         73.90         5/02/14         124,700       $ (603,479

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         74.28         5/02/14         64,400         (287,060

TransCanada Corp.

   Deutsche Bank AG      Call         CAD         51.08         5/02/14         95,000         (10,922

Kosmos Energy Ltd.

   Morgan Stanley & Co. International PLC      Call         USD         11.15         5/05/14         95,600         (3,645

BG Group PLC

   Credit Suisse International      Call         GBP         11.22         5/06/14         200,000         (260,046

Kosmos Energy Ltd.

   Morgan Stanley & Co. International PLC      Call         USD         11.09         5/07/14         45,200         (6,761

Noble Energy, Inc.

   Citibank N.A.      Call         USD         70.00         5/07/14         87,200         (168,222

Statoil ASA

   Deutsche Bank AG      Call         NOK         166.73         5/07/14         60,150         (146,718

Total SA

   Goldman Sachs International      Call         EUR         48.11         5/07/14         64,000         (308,732

Caracal Energy, Inc.

   Credit Suisse International      Call         GBP         3.74         5/08/14         60,000         (170,872

Oil Search Ltd.

   Goldman Sachs International      Call         AUD         8.41         5/08/14         394,000         (189,978

Statoil ASA

   Deutsche Bank AG      Call         NOK         166.73         5/13/14         60,150         (150,252

 

See Notes to Financial Statements.

 

44    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Total SA

   Goldman Sachs International      Call         EUR         48.11         5/13/14         64,000       $ (313,774

Murphy Oil Corp.

   Citibank N.A.      Call         USD         63.35         5/15/14         22,500         (26,086

Canadian Natural Resources Ltd.

   Citibank N.A.      Call         CAD         44.53         5/28/14         35,700         (39,707

Statoil ASA

   UBS AG      Call         NOK         169.92         5/28/14         155,500         (297,598

Kosmos Energy Ltd.

   Citibank N.A.      Call         USD         10.93         5/29/14         59,000         (26,385

Murphy Oil Corp.

   Citibank N.A.      Call         USD         63.35         5/29/14         22,500         (37,178

Statoil ASA

   UBS AG      Call         NOK         169.92         6/03/14         155,500         (298,772

Southwestern Energy Co.

   Goldman Sachs International      Call         USD         49.38         6/04/14         27,300         (24,287

Oil Search Ltd.

   UBS AG      Call         AUD         8.73         6/12/14         388,400         (130,192

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.62         6/12/14         118,400         (352,294

BG Group PLC

   Goldman Sachs International      Call         GBP         11.92         6/17/14         226,000         (189,037

Canadian Natural Resources Ltd.

   Citibank N.A.      Call         CAD         44.53         6/17/14         35,700         (48,644

Kosmos Energy Ltd.

   Morgan Stanley & Co. International PLC      Call         USD         11.00         6/18/14         108,300         (59,047

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.62         6/18/14         118,300         (363,886

Enbridge, Inc.

   Deutsche Bank AG      Call         CAD         53.00         6/21/14         39,100         (27,825

Enbridge, Inc.

   Deutsche Bank AG      Call         CAD         53.00         7/09/14         39,100         (35,317

Total

                     $ (4,576,716
                    

 

 

 

 

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 or 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, vola- tilities, 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 unob- servable 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 fair value hierarchy classification 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 invest- ments 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, please refer to Note 2 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, 2014:

 

      Level 1      Level 2      Level 3      Total  

Assets:

           

Investments:

           

Long-Term Investments:

           

Common Stocks:

           

Energy Equipment & Services

   $ 79,189,100                       $ 79,189,100   

Oil, Gas & Consumable Fuels

     645,826,605       $ 98,391,082                 744,217,687   

Short-Term Securities

     31,463,547                         31,463,547   

Total

   $ 756,479,252       $ 98,391,082               $ 854,870,334   
  

 

 

 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    45


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

 

 

      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (6,600,315   $ (4,733,451           $ (11,333,766

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

       

The carrying amount for certain of the Trust’s assets approximates fair value for financial statement purposes. As of April 30, 2014, such assets are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash

   $ 6,930                     $ 6,930   

Foreign currency at value

     184,978                       184,978   

Total

   $ 191,908                     $ 191,908   
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2014.

 

See Notes to Financial Statements.

 

46    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments April 30, 2014 (Unaudited)      BlackRock Enhanced Capital and Income Fund, Inc. (CII)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks   

    

Shares

     Value  

Air Freight & Logistics — 0.0%

     

Royal Mail PLC (a)

     11,200       $ 100,347   

Airlines — 5.4%

     

Japan Airlines Co. Ltd.

     580,800         30,067,685   

United Continental Holdings, Inc. (a)(b)

     169,100         6,911,117   
     

 

 

 
                36,978,802   

Automobiles — 6.3%

     

Bayerische Motoren Werke AG

     53,800         5,291,926   

General Motors Co. (b)(c)

     961,700         33,159,416   

Renault SA

     48,400         4,732,055   
     

 

 

 
                43,183,397   

Banks — 3.9%

     

Citigroup, Inc. (b)(c)

     221,930         10,632,666   

JPMorgan Chase & Co. (b)

     282,400         15,808,752   
     

 

 

 
                26,441,418   

Beverages — 0.5%

     

PepsiCo, Inc. (b)

     36,800         3,160,752   

Biotechnology — 0.4%

     

Gilead Sciences, Inc. (a)(b)

     33,300         2,613,717   

Building Products — 2.3%

     

Owens Corning (b)

     392,300         16,025,455   

Capital Markets — 0.7%

     

Atlas Mara Co-Nvest Ltd. (a)

     200,000         2,280,000   

Legg Mason, Inc.

     60,200         2,822,778   
     

 

 

 
                5,102,778   

Chemicals — 3.6%

     

CF Industries Holdings, Inc. (b)

     100,300         24,590,551   

Communications Equipment — 2.6%

     

QUALCOMM, Inc. (b)

     228,100         17,953,751   

Consumer Finance — 3.5%

     

Ally Financial, Inc. (a)(b)

     492,300         11,889,045   

Discover Financial Services (b)(c)

     161,700         9,039,030   

Springleaf Holdings, Inc. (a)(b)

     134,300         3,086,214   
     

 

 

 
                24,014,289   

Diversified Financial Services — 1.4%

     

Berkshire Hathaway, Inc., Class B (a)(b)

     74,200         9,560,670   

Diversified Telecommunication Services — 1.1%

     

Verizon Communications, Inc. (b)

     163,110         7,622,130   

Energy Equipment & Services — 0.5%

     

Noble Corp. PLC (b)

     108,800         3,352,128   

Food & Staples Retailing — 2.9%

     

Metro AG (a)

     356,800         14,294,724   

Wal-Mart Stores, Inc. (b)

     71,200         5,675,352   
     

 

 

 
                19,970,076   

Health Care Providers & Services — 4.5%

     

Express Scripts Holding Co. (a)(b)

     79,000         5,259,820   

UnitedHealth Group, Inc. (b)

     337,800         25,348,512   
     

 

 

 
                30,608,332   

Industrial Conglomerates — 0.3%

     

3M Co. (b)

     13,100         1,822,078   

Insurance — 9.6%

     

The Allstate Corp. (b)

     121,700         6,930,815   

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

     682,200         36,245,286   

Fidelity National Financial, Inc., Class A (b)

     698,300         22,471,294   
     

 

 

 
                65,647,395   
Common Stocks   

    

Shares

     Value  

Internet & Catalog Retail — 2.2%

     

Expedia, Inc. (b)

     215,300       $ 15,284,147   

Internet Software & Services — 5.7%

     

eBay, Inc. (a)(b)

     312,400         16,191,692   

Google, Inc., Class A (a)(b)

     15,001         8,023,735   

Google, Inc., Class C (a)

     15,001         7,900,427   

Yahoo!, Inc. (a)(b)

     187,200         6,729,840   
     

 

 

 
                38,845,694   

IT Services — 4.0%

     

Leidos Holdings, Inc.

     383,500         14,281,540   

Science Applications International Corp. (b)

     223,692         8,723,988   

Visa, Inc., Class A (b)

     22,700         4,599,247   
     

 

 

 
                27,604,775   

Leisure Products — 0.3%

     

Brunswick Corp. (b)

     52,700         2,118,013   

Media — 6.6%

     

Comcast Corp., Special Class A (b)

     353,400         18,034,002   

News Corp. — Class A (a)

     134,100         2,282,382   

Nexstar Broadcasting Group, Inc., Class A (b)

     112,500         4,483,125   

Sinclair Broadcast Group, Inc., Class A (b)

     628,800         16,807,824   

The Walt Disney Co. (b)

     45,600         3,617,904   
     

 

 

 
                45,225,237   

Metals & Mining — 0.8%

     

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

     166,300         5,715,731   

Oil, Gas & Consumable Fuels — 7.4%

     

HollyFrontier Corp. (b)

     214,660         11,288,969   

Linn Energy LLC (b)

     105,700         3,014,564   

Marathon Petroleum Corp. (b)

     68,000         6,320,600   

PBF Energy, Inc., Class A (b)

     103,100         3,173,418   

Suncor Energy, Inc.

     691,500         26,691,900   
     

 

 

 
                50,489,451   

Pharmaceuticals — 8.9%

     

Eli Lilly & Co. (b)

     125,300         7,405,230   

Johnson & Johnson (b)

     138,900         14,069,181   

Merck & Co., Inc. (b)

     237,600         13,913,856   

Novartis AG — ADR (b)

     43,300         3,764,502   

Pfizer, Inc. (b)

     697,800         21,827,184   
     

 

 

 
                60,979,953   

Real Estate Investment Trusts (REITs) — 1.5%

     

American Capital Agency Corp. (b)

     226,000         5,132,460   

American Realty Capital Properties, Inc.

     152,840         2,000,676   

Annaly Capital Management, Inc. (b)

     302,400         3,492,720   
     

 

 

 
                10,625,856   

Semiconductors & Semiconductor Equipment — 3.0%

     

Samsung Electronics Co. Ltd.

     20,200         20,312,706   

Software — 2.3%

     

Activision Blizzard, Inc. (b)(c)

     432,800         8,660,328   

Oracle Corp. (b)

     169,100         6,912,808   
     

 

 

 
                15,573,136   

Technology Hardware, Storage & Peripherals — 3.6%

     

Apple Inc. (b)

     42,300         24,960,807   

Wireless Telecommunication Services — 2.7%

     

Vodafone Group PLC — ADR (b)

     490,308         18,612,092   

Total Common Stocks — 98.5%

              675,095,664   
     
                  
 
     

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    47


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

 

Warrants (d)   

    

Shares

     Value  

Capital Markets — 0.0%

     

Atlas Mara Co-Nvest Ltd.,
Expires 12/17/17 (a)

     200,000       $ 300,000   

Total Long-Term Investments

(Cost — $602,097,260) — 98.5%

              675,395,664   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.03% (e)(f)

     3,204,081         3,204,081   

Total Short-Term Securities

(Cost — $3,204,081) — 0.5%

              3,204,081   
           

    

Value

 

Total Investments Before Options Written

(Cost — $605,301,341) — 99.0%

        $ 678,599,745   
     
Options Written              

(Premiums Received — $9,033,294) — (1.4)%

          (9,841,545

Total Investments Net of Options Written — 97.6%

        668,758,200   

Other Assets Less Liabilities — 2.4%

        16,642,052   
     

 

 

 

Net Assets — 100.0%

      $ 685,400,252   
     

 

 

 
 
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) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(d) Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.

 

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

 

(f) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2014, 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, 2013

    

Net

Activity

   

Shares Held at

April 30, 2014

     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     20,482,532         (17,278,451     3,204,081       $ 3,966   

 

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 the investment advisor. 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, 2014 were as follows:

 

Description    Put/
Call
    

Strike

Price

    

Expiration

Date

     Contracts     

Market

Value

 

eBay, Inc.

     Call         USD         58.00         5/02/14         656       $ (656

Expedia, Inc.

     Call         USD         80.00         5/02/14         300         (33,000

General Motors Co.

     Call         USD         33.00         5/02/14         520         (73,060

JPMorgan Chase & Co.

     Call         USD         60.00         5/02/14         106         (212

Oracle Corp.

     Call         USD         39.00         5/02/14         179         (32,310

The Walt Disney Co.

     Call         USD         81.00         5/02/14         250         (1,125

American International Group, Inc.

     Call         USD         50.50         5/05/14         500         (132,750

Apple Inc.

     Call         USD         545.00         5/05/14         106         (484,155

Citigroup, Inc.

     Call         USD         48.50         5/05/14         325         (2,600

HollyFrontier Corp.

     Call         USD         49.00         5/05/14         590         (218,300

Johnson & Johnson

     Call         USD         98.00         5/05/14         479         (150,885

Pfizer, Inc.

     Call         USD         31.00         5/05/14         500         (19,000

Pfizer, Inc.

     Call         USD         33.00         5/05/14         361         (361

QUALCOMM, Inc.

     Call         USD         80.00         5/05/14         621         (3,416

Activision Blizzard, Inc.

     Call         USD         21.00         5/09/14         470         (12,925

American International Group, Inc.

     Call         USD         52.00         5/09/14         922         (161,811

Apple Inc.

     Call         USD         535.00         5/09/14         53         (295,210

CF Industries Holdings, Inc.

     Call         USD         260.00         5/09/14         552         (57,960

 

See Notes to Financial Statements.

 

48    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (continued)

 

Description   

Put/

Call

    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Citigroup, Inc.

     Call         USD         50.00         5/09/14         450       $ (2,700

General Motors Co.

     Call         USD         35.50         5/09/14         550         (9,900

Google, Inc., Class A

     Call         USD         565.00         5/09/14         68         (2,210

HollyFrontier Corp.

     Call         USD         49.50         5/09/14         590         (199,125

Merck & Co., Inc.

     Call         USD         57.00         5/09/14         407         (74,074

Noble Corp. PLC

     Call         USD         34.00         5/09/14         463         (5,093

Pfizer, Inc.

     Call         USD         32.00         5/09/14         629         (9,120

QUALCOMM, Inc.

     Call         USD         80.00         5/09/14         633         (18,674

UnitedHealth Group, Inc.

     Call         USD         83.00         5/09/14         450         (1,800

Visa, Inc., Class A

     Call         USD         210.00         5/09/14         55         (2,200

Yahoo!, Inc.

     Call         USD         37.00         5/09/14         500         (24,500

3M Co.

     Call         USD         135.00         5/19/14         72         (32,400

Activision Blizzard, Inc.

     Call         USD         20.00         5/19/14         956         (65,964

The Allstate Corp.

     Call         USD         56.00         5/19/14         497         (79,212

The Allstate Corp.

     Call         USD         57.50         5/19/14         173         (12,110

American International Group, Inc.

     Call         USD         50.00         5/19/14         1,330         (448,875

Apple Inc.

     Call         USD         575.00         5/19/14         20         (36,100

Brunswick Corp.

     Call         USD         46.00         5/19/14         145         (2,175

Citigroup, Inc.

     Call         USD         48.00         5/19/14         120         (8,040

Comcast Corp., Special Class A

     Call         USD         49.00         5/19/14         571         (127,048

eBay, Inc.

     Call         USD         52.50         5/19/14         250         (17,375

Eli Lilly & Co.

     Call         USD         60.00         5/19/14         690         (35,535

Fidelity National Financial, Inc., Class A

     Call         USD         32.00         5/19/14         1,020         (79,050

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         34.00         5/19/14         343         (29,498

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         35.00         5/19/14         340         (12,750

Google, Inc., Class A

     Call         USD         560.00         5/19/14         14         (2,415

Marathon Petroleum Corp.

     Call         USD         87.50         5/19/14         123         (79,335

Merck & Co., Inc.

     Call         USD         57.50         5/19/14         397         (69,475

Nexstar Broadcasting Group, Inc., Class A

     Call         USD         45.00         5/19/14         225         (12,375

Novartis AG — ADR

     Call         USD         85.00         5/19/14         238         (49,385

Owens Corning

     Call         USD         45.00         5/19/14         990         (7,425

PepsiCo, Inc.

     Call         USD         85.00         5/19/14         203         (30,450

Pfizer, Inc.

     Call         USD         31.00         5/19/14         748         (46,002

Science Applications International Corp.

     Call         USD         40.00         5/19/14         1,230         (55,350

Sinclair Broadcast Group, Inc., Class A

     Call         USD         30.00         5/19/14         986         (34,510

United Continental Holdings, Inc.

     Call         USD         46.00         5/19/14         230         (4,715

United Continental Holdings, Inc.

     Call         USD         47.00         5/19/14         470         (6,345

United Continental Holdings, Inc.

     Call         USD         55.00         5/19/14         170         (595

Vodafone Group PLC — ADR

     Call         USD         38.00         5/19/14         675         (48,938

Yahoo!, Inc.

     Call         USD         36.00         5/19/14         400         (45,800

Berkshire Hathaway, Inc., Class B

     Call         USD         127.00         5/22/14         482         (143,060

American Capital Agency Corp.

     Call         USD         22.50         5/23/14         628         (28,260

Annaly Capital Management, Inc.

     Call         USD         11.50         5/23/14         1,663         (45,733

eBay, Inc.

     Call         USD         54.50         5/23/14         161         (4,588

General Motors Co.

     Call         USD         35.00         5/23/14         640         (38,080

Gilead Sciences, Inc.

     Call         USD         74.00         5/23/14         46         (24,840

Pfizer, Inc.

     Call         USD         31.00         5/23/14         747         (53,410

Visa, Inc., Class A

     Call         USD         215.00         5/23/14         65         (3,380

Yahoo!, Inc.

     Call         USD         38.00         5/23/14         140         (9,450

Activision Blizzard, Inc.

     Call         USD         20.50         5/30/14         956         (51,624

American Capital Agency Corp.

     Call         USD         23.00         5/30/14         615         (14,452

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    49


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

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (concluded)

 

Description   

Put/

Call

    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Apple Inc.

     Call         USD         535.00         5/30/14         53       $ (295,872

Citigroup, Inc.

     Call         USD         48.50         5/30/14         325         (23,075

Express Scripts Holding Co.

     Call         USD         72.00         5/30/14         217         (1,844

Gilead Sciences, Inc.

     Call         USD         76.00         5/30/14         91         (38,220

JPMorgan Chase & Co.

     Call         USD         56.50         5/30/14         482         (39,283

Marathon Petroleum Corp.

     Call         USD         91.00         5/30/14         125         (50,625

Merck & Co., Inc.

     Call         USD         58.50         5/30/14         502         (76,053

Noble Corp. PLC

     Call         USD         32.00         5/30/14         250         (7,500

Oracle Corp.

     Call         USD         40.00         5/30/14         600         (84,300

Pfizer, Inc.

     Call         USD         31.50         5/30/14         361         (20,396

Verizon Communications, Inc.

     Call         USD         48.50         5/30/14         800         (11,200

American International Group, Inc.

     Call         USD         52.50         6/06/14         1,000         (185,000

eBay, Inc.

     Call         USD         55.50         6/06/14         656         (18,696

Johnson & Johnson

     Call         USD         101.00         6/06/14         285         (48,022

Marathon Petroleum Corp.

     Call         USD         91.00         6/06/14         126         (54,810

UnitedHealth Group, Inc.

     Call         USD         78.00         6/06/14         1,405         (76,573

Wal-Mart Stores, Inc.

     Call         USD         79.00         6/06/14         241         (39,404

Ally Financial, Inc.

     Call         USD         25.00         6/23/14         500         (18,750

Brunswick Corp.

     Call         USD         46.00         6/23/14         145         (4,350

Discover Financial Services

     Call         USD         57.50         6/23/14         445         (34,488

Fidelity National Financial, Inc., Class A

     Call         USD         32.00         6/23/14         500         (57,500

Fidelity National Financial, Inc., Class A

     Call         USD         33.00         6/23/14         634         (42,795

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         34.00         6/23/14         230         (31,855

Gilead Sciences, Inc.

     Call         USD         75.00         6/23/14         46         (25,990

Linn Energy LLC

     Call         USD         30.00         6/23/14         250         (8,750

Nexstar Broadcasting Group, Inc., Class A

     Call         USD         45.00         6/23/14         125         (14,062

Oracle Corp.

     Call         USD         42.00         6/23/14         150         (12,900

Owens Corning

     Call         USD         46.00         6/23/14         580         (10,150

PBF Energy, Inc., Class A

     Call         USD         30.00         6/23/14         568         (97,980

Pfizer, Inc.

     Call         USD         32.00         6/23/14         491         (31,424

Sinclair Broadcast Group, Inc., Class A

     Call         USD         30.00         6/23/14         902         (74,415

Springleaf Holdings, Inc.

     Call         USD         25.00         6/23/14         244         (20,130

United Continental Holdings, Inc.

     Call         USD         48.00         6/23/14         235         (13,865

Verizon Communications, Inc.

     Call         USD         47.00         6/23/14         500         (42,250

Vodafone Group PLC — ADR

     Call         USD         40.00         6/23/14         1,011         (63,188

Wal-Mart Stores, Inc.

     Call         USD         80.00         6/23/14         242         (31,581

Discover Financial Services

     Call         USD         57.50         7/21/14         445         (52,288

Total

                  $ (5,684,840
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty   

Put/

Call

    

Strike

Price

     Expiration
Date
   Contracts      Market
Value
 

American Realty Capital Properties, Inc.

   Citibank N.A.      Call         USD         14.09       5/05/14      84,000       $ (8

Fidelity National Financial, Inc., Class A

   Morgan Stanley & Co. International PLC      Call         USD         32.79       5/06/14      168,600         (21,628

Sinclair Broadcast Group, Inc., Class A

   Morgan Stanley & Co. International PLC      Call         USD         26.74       5/06/14      77,100         (67,412

Sinclair Broadcast Group, Inc., Class A

   Morgan Stanley & Co. International PLC      Call         USD         27.28       5/06/14      79,800         (52,002

Metro AG

   Morgan Stanley & Co. International PLC      Call         EUR         30.31       5/07/14      196,200         (29,859

Comcast Corp., Special Class A

   Deutsche Bank AG      Call         USD         50.25       5/08/14      34,300         (33,642

 

See Notes to Financial Statements.

 

50    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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, 2014 were as follows: (concluded)

 

Description    Counterparty   

Put/

Call

    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Samsung Electronics Co. Ltd.

   Bank of America N.A.      Call         KRW         1,075,900.00         5/08/14         4,500       $ (16,147

Suncor Energy, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         34.13         5/09/14         177,800         (794,951

Comcast Corp., Special Class A

   Citibank N.A.      Call         USD         50.75         5/13/14         34,300         (26,867

Bayerische Motoren Werke AG

   Morgan Stanley & Co. International PLC      Call         EUR         69.37         5/14/14         15,000         (43,929

Japan Airlines Co. Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         4,798.73         5/14/14         160,100         (778,956

Samsung Electronics Co. Ltd.

   UBS AG      Call         KRW         1,019,606.38         5/14/14         5,100         (152,935

Expedia, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         73.81         5/22/14         75,000         (317,042

Comcast Corp., Special Class A

   Deutsche Bank AG      Call         USD         50.25         5/27/14         34,300         (45,922

Bayerische Motoren Werke AG

   Morgan Stanley & Co. International PLC      Call         EUR         69.02         5/28/14         15,000         (55,986

Owens Corning

   Citibank N.A.      Call         USD         44.63         5/28/14         58,000         (14,167

Springleaf Holdings, Inc.

   Credit Suisse International      Call         USD         25.00         5/28/14         25,000         (14,712

Japan Airlines Co. Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         5,160.00         5/29/14         79,700         (183,652

Renault SA

   Goldman Sachs International      Call         EUR         76.12         6/03/14         26,600         (21,390

Vodafone Group PLC — ADR

   Deutsche Bank AG      Call         USD         37.31         6/03/14         101,100         (139,373

Expedia, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         73.81         6/04/14         75,000         (254,618

Legg Mason, Inc.

   UBS AG      Call         USD         46.42         6/04/14         33,100         (54,171

Suncor Energy, Inc.

   Citibank N.A.      Call         USD         36.56         6/05/14         202,500         (423,393

Comcast Corp., Special Class A

   Citibank N.A.      Call         USD         51.59         6/09/14         34,300         (27,097

Samsung Electronics Co. Ltd.

   Morgan Stanley & Co. International PLC      Call         KRW         1,110,410.00         6/10/14         2,600         (29,698

Japan Airlines Co. Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         5,160.00         6/12/14         79,700         (208,852

Samsung Electronics Co. Ltd.

   UBS AG      Call         KRW         1,091,461.39         6/17/14         2,600         (47,718

News Corp. — Class A

   Morgan Stanley & Co. International PLC      Call         USD         17.37         6/26/14         73,700         (32,575

Annaly Capital Management, Inc.

   Morgan Stanley & Co. International PLC      Put         USD         11.55         5/12/14         497,000         (112,908

Noble Corp. PLC

   Morgan Stanley & Co. International PLC      Put         USD         32.50         5/12/14         59,700         (127,231

PBF Energy, Inc., Class A

   Citibank N.A.      Put         USD         28.10         5/12/14         285,900         (27,864

Total

                     $ (4,156,705
                    

 

 

 

 

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 or 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 fair value hierarchy classification 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, please refer to Note 2 of the Notes to Financial Statements.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    51


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

 

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2014:

 

 

 
     Level 1     Level 2     Level 3      Total  

 

 

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Air Freight & Logistics

          $ 100,347              $ 100,347   

Airlines

   $ 6,911,117        30,067,685                36,978,802   

Automobiles

     38,451,342        4,732,055                43,183,397   

Banks

     26,441,418                       26,441,418   

Beverages

     3,160,752                       3,160,752   

Biotechnology

     2,613,717                       2,613,717   

Building Products

     16,025,455                       16,025,455   

Capital Markets

     2,822,778        2,280,000                5,102,778   

Chemicals

     24,590,551                       24,590,551   

Communications Equipment

     17,953,751                       17,953,751   

Consumer Finance

     24,014,289                       24,014,289   

Diversified Financial Services

     9,560,670                       9,560,670   

Diversified Telecommunication Services

     7,622,130                       7,622,130   

Energy Equipment & Services

     3,352,128                       3,352,128   

Food & Staples Retailing

     5,675,352        14,294,724                19,970,076   

Health Care Providers & Services

     30,608,332                       30,608,332   

Industrial Conglomerates

     1,822,078                       1,822,078   

Insurance

     65,647,395                       65,647,395   

Internet & Catalog Retail

     15,284,147                       15,284,147   

Internet Software & Services

     38,845,694                       38,845,694   

IT Services

     27,604,775                       27,604,775   

Leisure Products

     2,118,013                       2,118,013   

Media

     45,225,237                       45,225,237   

Metals & Mining

     5,715,731                       5,715,731   

Oil, Gas & Consumable Fuels

     50,489,451                       50,489,451   

Pharmaceuticals

     60,979,953                       60,979,953   

Real Estate Investment Trusts (REITs)

     10,625,856                       10,625,856   

Semiconductors & Semiconductor Equipment

            20,312,706                20,312,706   

Software

     15,573,136                       15,573,136   

Technology Hardware, Storage & Peripherals

     24,960,807                       24,960,807   

Wireless Telecommunication Services

     18,612,092                       18,612,092   

Warrants

            300,000                300,000   

Short-Term Securities

     3,204,081                       3,204,081   

 

 

Total

   $ 606,512,228      $ 72,087,517              $ 678,599,745   
  

 

 

 
         

 

 
     Level 1     Level 2     Level 3      Total  

 

 

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (5,462,567   $ (4,378,978           $ (9,841,545

 

 

 

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

         

 

The carrying amount for certain of the Trust’s assets approximates fair value for financial statement purposes. As of April 30, 2014, such assets are categorized within the disclosure hierarchy as follows:

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Assets:

           

Cash

   $ 2,113                       $ 2,113   

Foreign currency at value

     3,608                         3,608   

Cash pledged as collateral for OTC derivatives

     200,000                         200,000   

 

 

Total

   $ 205,721                       $ 205,721   
  

 

 

 

 

See Notes to Financial Statements.

 

52    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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

 

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, 2013 the Trust did not utilize the external pricing service model adjustments as significant market movements did not occur. As of April 30, 2014, securities with a value of $50,480,738 were systematically fair valued due to significant market movements. Therefore, these securities were transferred from Level 1 to Level 2 during the period October 31, 2013 to April 30, 2014.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    53


Table of Contents
Schedule of Investments April 30, 2014 (Unaudited)      BlackRock Enhanced Equity Dividend Trust (BDJ)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Aerospace & Defense — 7.1%

     

Honeywell International, Inc. (a)

     217,600       $ 20,215,040   

Lockheed Martin Corp. (a)

     81,000         13,295,340   

Northrop Grumman Corp. (a)

     179,200         21,774,592   

Raytheon Co.

     343,100         32,759,188   

United Technologies Corp. (a)

     241,400         28,564,862   
     

 

 

 
                116,609,022   

Air Freight & Logistics — 1.1%

     

United Parcel Service, Inc., Class B

     183,000         18,025,500   

Auto Components — 0.5%

     

Johnson Controls, Inc.

     172,300         7,777,622   

Banks — 13.7%

     

Bank of America Corp. (a)

     329,800         4,993,172   

Citigroup, Inc. (a)

     386,700         18,526,797   

Fifth Third Bancorp.

     867,700         17,883,297   

JPMorgan Chase & Co. (a)(b)

     958,499         53,656,774   

M&T Bank Corp. (a)

     33,800         4,123,938   

SunTrust Banks, Inc. (a)

     672,340         25,723,728   

The Toronto-Dominion Bank (a)

     355,800         17,110,422   

U.S. Bancorp. (a)

     637,100         25,980,938   

Wells Fargo & Co. (a)(b)

     1,157,300         57,448,372   
     

 

 

 
                225,447,438   

Beverages — 2.2%

     

The Coca-Cola Co. (a)

     398,400         16,250,736   

Diageo PLC – ADR (a)(b)

     155,200         19,055,456   
     

 

 

 
                35,306,192   

Capital Markets — 0.7%

     

Morgan Stanley (a)

     394,700         12,208,071   

Chemicals — 3.4%

     

The Dow Chemical Co.

     230,200         11,486,980   

EI du Pont de Nemours & Co. (a)

     408,500         27,500,220   

Olin Corp.

     192,100         5,398,010   

Praxair, Inc. (a)

     91,600         11,958,380   
     

 

 

 
                56,343,590   

Communications Equipment — 1.5%

     

Motorola Solutions, Inc. (a)

     190,800         12,131,064   

QUALCOMM, Inc. (a)

     161,500         12,711,665   
     

 

 

 
                24,842,729   

Consumer Finance — 1.5%

     

American Express Co. (a)

     276,300         24,156,909   

Containers & Packaging — 0.7%

     

MeadWestvaco Corp.

     292,300         11,420,161   

Diversified Financial Services — 0.7%

     

CME Group, Inc.

     162,700         11,452,453   

Diversified Telecommunication Services — 2.0%

     

BCE, Inc.

     115,700         5,153,278   

Verizon Communications, Inc. (a)

     598,500         27,967,905   
     

 

 

 
                33,121,183   

Electric Utilities — 2.3%

     

Duke Energy Corp. (a)

     97,200         7,240,428   

ITC Holdings Corp.

     134,000         4,953,980   

NextEra Energy, Inc. (a)

     186,200         18,592,070   

Northeast Utilities (a)

     155,220         7,335,697   
     

 

 

 
                38,122,175   

Electrical Equipment — 0.4%

     

Rockwell Automation, Inc.

     53,400         6,364,212   

Energy Equipment & Services — 0.6%

     

Schlumberger Ltd. (a)

     98,500         10,002,675   
Common Stocks    Shares      Value  

Food & Staples Retailing — 0.6%

     

Wal-Mart Stores, Inc. (a)

     121,300       $ 9,668,823   

Food Products — 2.7%

     

General Mills, Inc. (a)

     230,600         12,226,412   

Kraft Foods Group, Inc. (a)

     149,195         8,483,228   

Mondelez International, Inc., Class A (a)

     445,085         15,867,280   

Unilever NV

     191,200         8,187,184   
     

 

 

 
                44,764,104   

Health Care Equipment & Supplies — 0.4%

     

Abbott Laboratories (a)

     145,700         5,644,418   

Health Care Providers & Services — 0.4%

     

Quest Diagnostics, Inc. (a)

     124,800         6,980,064   

Hotels, Restaurants & Leisure — 1.5%

     

McDonald’s Corp. (a)

     249,700         25,314,586   

Household Products — 2.0%

     

Kimberly-Clark Corp. (a)

     112,850         12,667,412   

The Procter & Gamble Co. (a)

     250,400         20,670,520   
     

 

 

 
                33,337,932   

Industrial Conglomerates — 4.1%

     

3M Co. (a)

     121,700         16,927,253   

General Electric Co. (a)

     1,877,200         50,477,908   
     

 

 

 
                67,405,161   

Insurance — 5.2%

     

ACE Ltd.

     171,000         17,496,720   

The Chubb Corp.

     153,800         14,161,904   

MetLife, Inc. (a)

     139,550         7,305,444   

Prudential Financial, Inc. (a)

     343,200         27,689,376   

The Travelers Cos., Inc. (a)

     212,300         19,230,134   
     

 

 

 
                85,883,578   

IT Services — 2.0%

     

Automatic Data Processing, Inc. (a)

     63,560         4,955,138   

International Business Machines Corp. (a)

     145,200         28,527,444   
     

 

 

 
                33,482,582   

Leisure Products — 0.3%

     

Mattel, Inc.

     104,300         4,090,124   

Media — 3.3%

     

Comcast Corp., Special Class A (a)

     859,000         43,834,770   

The Walt Disney Co. (a)

     123,500         9,798,490   
     

 

 

 
                53,633,260   

Metals & Mining — 1.6%

     

BHP Billiton Ltd. — ADR (a)(b)

     302,700         21,352,458   

Southern Copper Corp.

     157,077         4,734,301   
     

 

 

 
                26,086,759   

Multi-Utilities — 2.1%

     

Dominion Resources, Inc. (a)

     254,300         18,446,922   

Sempra Energy

     88,700         8,746,707   

Wisconsin Energy Corp.

     151,800         7,359,264   
     

 

 

 
                34,552,893   

Oil, Gas & Consumable Fuels — 13.6%

     

Chevron Corp. (a)(b)

     416,600         52,291,632   

ConocoPhillips (a)

     119,860         8,906,797   

Enbridge, Inc. (a)

     492,200         23,751,159   

Exxon Mobil Corp. (a)

     359,600         36,826,636   

Kinder Morgan, Inc.

     266,178         8,693,373   

Marathon Oil Corp. (a)

     381,300         13,783,995   

Marathon Petroleum Corp. (a)

     169,600         15,764,320   

Occidental Petroleum Corp. (a)

     170,200         16,296,650   

Phillips 66 (a)

     80,350         6,686,727   
 

 

See Notes to Financial Statements.

 

54    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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 (concluded)

     

Royal Dutch Shell PLC — ADR

     61,900       $ 4,874,006   

Spectra Energy Corp. (a)

     204,000         8,100,840   

Total SA — ADR (a)

     380,400         27,099,696   
     

 

 

 
                223,075,831   

Paper & Forest Products — 0.7%

     

International Paper Co. (a)

     247,150         11,529,547   

Pharmaceuticals — 8.7%

     

AbbVie, Inc. (a)

     143,127         7,454,054   

Bristol-Myers Squibb Co. (a)

     558,100         27,955,229   

Johnson & Johnson (a)

     295,500         29,931,195   

Merck & Co., Inc. (a)

     648,200         37,958,592   

Pfizer, Inc. (a)

     1,258,700         39,372,136   
     

 

 

 
                142,671,206   

Professional Services — 0.2%

     

Nielsen Holdings NV

     74,100         3,478,995   

Real Estate Investment Trusts (REITs) — 0.8%

     

American Tower Corp. (a)

     72,500         6,055,200   

Weyerhaeuser Co. (a)

     236,300         7,053,555   
     

 

 

 
                13,108,755   

Road & Rail — 1.4%

     

CSX Corp. (a)

     198,300         5,596,026   

Union Pacific Corp. (a)

     90,700         17,272,001   
     

 

 

 
                22,868,027   

Semiconductors & Semiconductor
Equipment — 1.3%

     

Intel Corp. (a)

     815,900         21,776,371   

Software — 1.9%

     

Microsoft Corp. (a)

     752,700         30,409,080   

Specialty Retail — 2.3%

     

The Home Depot, Inc. (a)

     476,900         37,918,319   

Textiles, Apparel & Luxury Goods — 1.1%

     

VF Corp. (a)

     301,600         18,424,744   
Common Stocks    Shares      Value  

Tobacco — 1.5%

     

Altria Group, Inc. (a)

     203,800       $ 8,174,418   

Philip Morris International, Inc.

     195,100         16,667,393   
     

 

 

 
                24,841,811   

Water Utilities — 0.7%

     

American Water Works Co., Inc.

     258,600         11,774,058   

Total Long-Term Investments

(Cost — $1,349,384,408) — 98.8%

              1,623,920,960   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund,

     

    Institutional Class, 0.03% (c)(d)

     38,251,313         38,251,313   

Total Short-Term Securities

(Cost — $38,251,313) — 2.3%

              38,251,313   
     
Options Purchased                

(Cost — $7,273) — 0.0%

              4,329   

Total Investments Before Options Written

(Cost — $1,387,642,994) — 101.1%

              1,662,176,602   
     
Options Written                

(Premiums Received — $13,752,252) — (1.1)%

              (18,043,340

Total Investments Net of Options
Written — 100.0%

        1,644,133,262   

Liabilities in Excess of Other Assets — 0.0%

        (106,755
     

 

 

 

Net Assets — 100.0%

      $ 1,644,026,507   
     

 

 

 
 

 

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) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

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

 

(d) Investments in companies considered to be an affiliate of the Trust during the six months ended April 30, 2014, 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, 2013

    

Net

Activity

   

Shares Held at

April 30, 2014

     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     48,920,346         (10,669,033     38,251,313       $ 9,059   

 

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 the investment advisor. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

Ÿ  

Exchange-traded options purchased as of April 30, 2014 were as follows:

 

Description   

Put/

Call

    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

JPMorgan Chase & Co.

     Call         USD         59.50         5/09/14         1,443       $ 4,329   

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    55


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

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows:

 

Description   

Put/

Call

    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Altria Group, Inc.

     Call         USD         38.00         5/02/14         373       $ (77,584

Bank of America Corp.

     Call         USD         18.00         5/02/14         907         (907

EI du Pont de Nemours & Co.

     Call         USD         67.00         5/02/14         571         (29,406

Exxon Mobil Corp.

     Call         USD         94.00         5/02/14         184         (149,040

JPMorgan Chase & Co.

     Call         USD         60.00         5/02/14         1,000         (2,000

Microsoft Corp.

     Call         USD         40.50         5/02/14         1,300         (26,000

Occidental Petroleum Corp.

     Call         USD         97.00         5/02/14         350         (5,775

Schlumberger Ltd.

     Call         USD         91.00         5/02/14         135         (137,362

U.S. Bancorp.

     Call         USD         41.50         5/02/14         1,176         (5,880

The Walt Disney Co.

     Call         USD         81.00         5/02/14         679         (3,056

Chevron Corp.

     Call         USD         120.00         5/05/14         488         (279,380

Citigroup, Inc.

     Call         USD         48.50         5/05/14         512         (4,096

ConocoPhillips

     Call         USD         68.50         5/05/14         330         (199,650

The Home Depot, Inc.

     Call         USD         80.00         5/05/14         921         (25,328

International Business Machines Corp.

     Call         USD         192.50         5/05/14         350         (140,000

Johnson & Johnson

     Call         USD         98.00         5/05/14         809         (254,835

Marathon Oil Corp.

     Call         USD         35.00         5/05/14         1,052         (140,442

McDonald’s Corp.

     Call         USD         98.00         5/05/14         686         (222,950

Pfizer, Inc.

     Call         USD         33.00         5/05/14         1,622         (1,622

Schlumberger Ltd.

     Call         USD         93.00         5/05/14         136         (115,260

Union Pacific Corp.

     Call         USD         190.00         5/05/14         250         (31,125

United Technologies Corp.

     Call         USD         116.00         5/05/14         1,327         (305,210

M&T Bank Corp.

     Call         USD         119.35         5/07/14         185         (52,001

3M Co.

     Call         USD         136.00         5/09/14         334         (112,725

Altria Group, Inc.

     Call         USD         38.00         5/09/14         373         (78,703

Citigroup, Inc.

     Call         USD         50.00         5/09/14         500         (3,000

The Coca-Cola Co.

     Call         USD         38.50         5/09/14         1,095         (249,660

EI du Pont de Nemours & Co.

     Call         USD         67.00         5/09/14         571         (45,109

Exxon Mobil Corp.

     Call         USD         98.00         5/09/14         825         (377,438

General Electric Co.

     Call         USD         26.50         5/09/14         1,000         (47,000

The Home Depot, Inc.

     Call         USD         78.00         5/09/14         780         (148,200

JPMorgan Chase & Co.

     Call         USD         60.50         5/09/14         1,443         (4,329

McDonald’s Corp.

     Call         USD         99.00         5/09/14         687         (173,811

Merck & Co., Inc.

     Call         USD         57.00         5/09/14         1,130         (205,660

QUALCOMM, Inc.

     Call         USD         80.00         5/09/14         444         (13,098

Schlumberger Ltd.

     Call         USD         100.00         5/09/14         135         (28,418

U.S. Bancorp.

     Call         USD         42.00         5/09/14         1,152         (4,032

Union Pacific Corp.

     Call         USD         192.50         5/09/14         250         (24,375

Mondelez International, Inc., Class A

     Call         USD         34.75         5/13/14         1,338         (148,751

The Toronto-Dominion Bank

     Call         USD         46.25         5/13/14         956         (177,358

The Toronto-Dominion Bank

     Call         USD         47.00         5/14/14         937         (106,333

3M Co.

     Call         USD         135.00         5/19/14         335         (150,750

Abbott Laboratories

     Call         USD         39.00         5/19/14         400         (14,600

AbbVie, Inc.

     Call         USD         55.00         5/19/14         197         (2,955

Altria Group, Inc.

     Call         USD         38.00         5/19/14         373         (80,382

American Tower Corp.

     Call         USD         82.50         5/19/14         198         (36,630

Automatic Data Processing, Inc.

     Call         USD         75.00         5/19/14         349         (111,680

BHP Billiton Ltd. — ADR

     Call         USD         67.50         5/19/14         650         (217,750

BHP Billiton Ltd. — ADR

     Call         USD         70.00         5/19/14         260         (36,010

BHP Billiton Ltd. — ADR

     Call         USD         72.50         5/19/14         754         (27,898

Bristol-Myers Squibb Co.

     Call         USD         52.50         5/19/14         860         (31,390

Citigroup, Inc.

     Call         USD         48.00         5/19/14         600         (40,200

 

See Notes to Financial Statements.

 

56    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (continued)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

The Coca-Cola Co.

     Call         USD         39.00         5/19/14         1,096       $ (200,568

Comcast Corp., Special Class A

     Call         USD         49.00         5/19/14         1,302         (289,695

ConocoPhillips

     Call         USD         75.00         5/19/14         329         (21,877

CSX Corp.

     Call         USD         30.00         5/19/14         545         (1,361

Diageo PLC — ADR

     Call         USD         125.00         5/19/14         428         (33,170

Duke Energy Corp.

     Call         USD         72.50         5/19/14         460         (100,050

EI du Pont de Nemours & Co.

     Call         USD         70.00         5/19/14         570         (3,420

Enbridge, Inc.

     Call         CAD         52.00         5/19/14         400         (42,151

Exxon Mobil Corp.

     Call         USD         100.00         5/19/14         723         (197,740

General Electric Co.

     Call         USD         26.00         5/19/14         3,912         (361,860

General Mills, Inc.

     Call         USD         51.75         5/19/14         1,268         (181,976

Intel Corp.

     Call         USD         27.00         5/19/14         1,769         (23,882

International Paper Co.

     Call         USD         46.00         5/19/14         348         (36,366

Kimberly-Clark Corp.

     Call         USD         112.50         5/19/14         620         (81,550

Kraft Foods Group, Inc.

     Call         USD         57.50         5/19/14         820         (45,100

Marathon Petroleum Corp.

     Call         USD         87.50         5/19/14         308         (198,660

Merck & Co., Inc.

     Call         USD         57.50         5/19/14         1,101         (192,675

MetLife, Inc.

     Call         USD         55.00         5/19/14         384         (8,640

Microsoft Corp.

     Call         USD         40.00         5/19/14         851         (67,229

Mondelez International, Inc., Class A

     Call         USD         35.00         5/19/14         555         (56,055

Morgan Stanley

     Call         USD         31.00         5/19/14         551         (27,826

Morgan Stanley

     Call         USD         32.00         5/19/14         549         (8,510

Motorola Solutions, Inc.

     Call         USD         65.00         5/19/14         525         (35,438

Northeast Utilities

     Call         USD         45.00         5/19/14         468         (106,470

Northrop Grumman Corp.

     Call         USD         125.00         5/19/14         530         (33,125

Occidental Petroleum Corp.

     Call         USD         95.00         5/19/14         236         (51,094

Occidental Petroleum Corp.

     Call         USD         97.50         5/19/14         350         (36,050

Pfizer, Inc.

     Call         USD         31.00         5/19/14         1,030         (63,345

Phillips 66

     Call         USD         80.00         5/19/14         441         (160,965

Praxair, Inc.

     Call         USD         132.00         5/19/14         503         (47,825

The Procter & Gamble Co.

     Call         USD         82.50         5/19/14         1,006         (88,025

Prudential Financial, Inc.

     Call         USD         88.00         5/19/14         944         (13,230

Quest Diagnostics, Inc.

     Call         USD         55.00         5/19/14         345         (54,337

Schlumberger Ltd.

     Call         USD         92.50         5/19/14         135         (123,187

Spectra Energy Corp.

     Call         USD         37.00         5/19/14         280         (78,400

Spectra Energy Corp.

     Call         USD         39.00         5/19/14         700         (59,500

SunTrust Banks, Inc.

     Call         USD         38.00         5/19/14         1,230         (92,250

SunTrust Banks, Inc.

     Call         USD         39.00         5/19/14         1,230         (37,515

The Travelers Cos., Inc.

     Call         USD         87.50         5/19/14         1,168         (379,600

Verizon Communications, Inc.

     Call         USD         48.00         5/19/14         1,423         (14,942

VF Corp.

     Call         USD         62.50         5/19/14         825         (37,125

Wells Fargo & Co.

     Call         USD         49.00         5/19/14         1,590         (126,405

Chevron Corp.

     Call         USD         123.00         5/23/14         368         (122,360

EI du Pont de Nemours & Co.

     Call         USD         68.50         5/23/14         150         (4,875

General Electric Co.

     Call         USD         26.50         5/23/14         1,500         (90,000

The Home Depot, Inc.

     Call         USD         78.00         5/23/14         921         (238,079

Intel Corp.

     Call         USD         27.00         5/23/14         950         (19,000

Microsoft Corp.

     Call         USD         41.00         5/23/14         492         (20,418

Pfizer, Inc.

     Call         USD         31.00         5/23/14         1,029         (73,574

U.S. Bancorp.

     Call         USD         41.50         5/23/14         1,176         (30,576

Verizon Communications, Inc.

     Call         USD         48.00         5/23/14         1,423         (25,614

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    57


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

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Wells Fargo & Co.

     Call         USD         49.00         5/23/14         1,591       $ (137,622

Wells Fargo & Co.

     Call         USD         50.00         5/23/14         1,715         (60,025

Northrop Grumman Corp.

     Call         USD         125.00         5/27/14         456         (39,511

American Express Co.

     Call         USD         88.00         5/30/14         760         (107,540

Chevron Corp.

     Call         USD         123.00         5/30/14         367         (126,615

Citigroup, Inc.

     Call         USD         48.50         5/30/14         514         (36,494

EI du Pont de Nemours & Co.

     Call         USD         68.00         5/30/14         385         (22,330

Exxon Mobil Corp.

     Call         USD         101.00         5/30/14         123         (26,199

General Electric Co.

     Call         USD         26.00         5/30/14         3,912         (393,156

JPMorgan Chase & Co.

     Call         USD         56.50         5/30/14         1,422         (115,893

Marathon Oil Corp.

     Call         USD         37.00         5/30/14         522         (22,707

Marathon Oil Corp.

     Call         USD         37.50         5/30/14         522         (14,877

Marathon Petroleum Corp.

     Call         USD         91.00         5/30/14         311         (125,955

Merck & Co., Inc.

     Call         USD         58.50         5/30/14         1,334         (202,101

Microsoft Corp.

     Call         USD         41.00         5/30/14         1,496         (73,304

Pfizer, Inc.

     Call         USD         31.50         5/30/14         1,621         (91,587

The Procter & Gamble Co.

     Call         USD         82.00         5/30/14         371         (53,053

American Tower Corp.

     Call         USD         84.00         6/06/14         200         (29,500

Chevron Corp.

     Call         USD         125.00         6/06/14         535         (120,375

Exxon Mobil Corp.

     Call         USD         101.00         6/06/14         123         (27,368

Intel Corp.

     Call         USD         26.50         6/06/14         1,769         (90,219

Johnson & Johnson

     Call         USD         101.00         6/06/14         816         (137,496

Marathon Petroleum Corp.

     Call         USD         91.00         6/06/14         311         (135,285

Wal-Mart Stores, Inc.

     Call         USD         79.00         6/06/14         334         (54,609

Wells Fargo & Co.

     Call         USD         50.00         6/06/14         1,469         (72,716

Total SA — ADR

     Call         USD         68.75         6/13/14         645         (176,389

AbbVie, Inc.

     Call         USD         50.00         6/23/14         590         (182,900

American Express Co.

     Call         USD         90.00         6/23/14         760         (91,200

Bristol-Myers Squibb Co.

     Call         USD         55.00         6/23/14         917         (41,723

Chevron Corp.

     Call         USD         125.00         6/23/14         533         (133,516

Dominion Resources, Inc.

     Call         USD         72.50         6/23/14         700         (94,500

Honeywell International, Inc.

     Call         USD         95.00         6/23/14         600         (58,500

International Business Machines Corp.

     Call         USD         195.00         6/23/14         448         (197,120

Lockheed Martin Corp.

     Call         USD         165.00         6/23/14         445         (144,625

MetLife, Inc.

     Call         USD         52.50         6/23/14         383         (58,024

Morgan Stanley

     Call         USD         32.00         6/23/14         1,070         (56,175

NextEra Energy, Inc.

     Call         USD         97.50         6/23/14         265         (99,375

Pfizer, Inc.

     Call         USD         32.00         6/23/14         1,620         (103,680

QUALCOMM, Inc.

     Call         USD         80.00         6/23/14         444         (51,060

Verizon Communications, Inc.

     Call         USD         47.00         6/23/14         445         (37,602

Wal-Mart Stores, Inc.

     Call         USD         80.00         6/23/14         333         (43,456

Weyerhaeuser Co.

     Call         USD         30.00         6/23/14         325         (17,875

Total

                  $ (13,255,096
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Sempra Energy

   Goldman Sachs International      Call         USD         97.72         5/02/14         13,100       $ (12,571

American Water Works Co., Inc.

   Citibank N.A.      Call         USD         45.54         5/05/14         55,500         (31,881

The Chubb Corp.

   Credit Suisse International      Call         USD         87.37         5/05/14         42,250         (199,014

The Dow Chemical Co.

   UBS AG      Call         USD         50.73         5/05/14         126,600         (21,130

 

See Notes to Financial Statements.

 

58    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Honeywell International, Inc.

   Deutsche Bank AG      Call         USD         94.27         5/05/14         59,500       $ (9,143

ITC Holdings Corp.

   Morgan Stanley & Co. International PLC      Call         USD         36.59         5/05/14         37,100         (20,579

Mattel, Inc.

   Credit Suisse International      Call         USD         38.29         5/05/14         104,000         (102,190

MeadWestvaco Corp.

   Citibank N.A.      Call         USD         36.42         5/05/14         43,200         (114,317

Mondelez International, Inc., Class A

   Credit Suisse International      Call         USD         35.00         5/05/14         55,000         (41,947

Northeast Utilities

   Deutsche Bank AG      Call         USD         43.95         5/05/14         38,500         (127,654

Total SA — ADR

   Morgan Stanley & Co. International PLC      Call         USD         64.50         5/05/14         62,400         (420,600

Wisconsin Energy Corp.

   Credit Suisse International      Call         USD         44.10         5/05/14         41,700         (182,675

SunTrust Banks, Inc.

   Citibank N.A.      Call         USD         41.00         5/06/14         123,700         (85

American Water Works Co., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         45.94         5/07/14         15,400         (7,852

Comcast Corp., Special Class A

   Deutsche Bank AG      Call         USD         50.25         5/08/14         86,100         (84,448

Sempra Energy

   UBS AG      Call         USD         97.00         5/08/14         35,600         (71,239

ITC Holdings Corp.

   Citibank N.A.      Call         USD         37.48         5/09/14         36,600         (8,729

United Parcel Service, Inc., Class B

   UBS AG      Call         USD         98.43         5/09/14         100,700         (47,917

International Paper Co.

   Credit Suisse International      Call         USD         45.73         5/12/14         101,100         (115,143

NextEra Energy, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         94.50         5/12/14         75,900         (423,802

Comcast Corp., Special Class A

   Citibank N.A.      Call         USD         50.75         5/13/14         85,000         (66,579

MeadWestvaco Corp.

   Citibank N.A.      Call         USD         36.42         5/14/14         43,200         (114,307

Total SA — ADR

   Deutsche Bank AG      Call         USD         64.85         5/14/14         19,900         (128,418

Weyerhaeuser Co.

   Citibank N.A.      Call         USD         29.77         5/14/14         64,900         (18,905

BCE, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         44.43         5/15/14         63,600         (30,116

Olin Corp.

   Credit Suisse International      Call         USD         27.93         5/15/14         53,600         (29,639

Philip Morris International, Inc.

   Citibank N.A.      Call         USD         83.21         5/20/14         53,750         (138,614

ACE Ltd.

   Credit Suisse International      Call         USD         98.59         5/27/14         43,100         (176,410

Comcast Corp., Special Class A

   Deutsche Bank AG      Call         USD         50.25         5/27/14         86,100         (115,273

The Chubb Corp.

   Credit Suisse International      Call         USD         92.36         5/28/14         42,250         (47,757

Philip Morris International, Inc.

   Citibank N.A.      Call         USD         84.04         5/28/14         53,750         (109,758

Rockwell Automation, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         128.27         5/28/14         30,000         (7,002

VF Corp.

   UBS AG      Call         USD         63.00         5/28/14         82,500         (45,626

Quest Diagnostics, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         61.15         5/30/14         34,100         (5,397

American Water Works Co., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         46.66         6/02/14         55,500         (49,292

Dominion Resources, Inc.

   Credit Suisse International      Call         USD         73.10         6/02/14         69,900         (69,072

Raytheon Co.

   Morgan Stanley & Co. International PLC      Call         USD         98.00         6/03/14         94,300         (103,237

ACE Ltd.

   Deutsche Bank AG      Call         USD         102.15         6/04/14         50,900         (96,573

MeadWestvaco Corp.

   Goldman Sachs International      Call         USD         38.50         6/04/14         74,300         (74,255

Enbridge, Inc.

   Citibank N.A.      Call         CAD         51.10         6/05/14         114,300         (203,604

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.24         6/05/14         17,000         (52,909

Total SA — ADR

   Morgan Stanley & Co. International PLC      Call         USD         66.83         6/05/14         62,400         (277,306

Unilever NV

   Citibank N.A.      Call         USD         42.73         6/06/14         47,500         (39,869

American Water Works Co., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         45.75         6/09/14         15,800         (11,726

Fifth Third Bancorp.

   Citibank N.A.      Call         USD         20.76         6/09/14         238,600         (97,702

Olin Corp.

   Citibank N.A.      Call         USD         28.10         6/09/14         52,000         (43,858

Bristol-Myers Squibb Co.

   Morgan Stanley & Co. International PLC      Call         USD         52.05         6/11/14         129,200         (133,619

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.62         6/12/14         8,500         (25,291

Unilever NV

   Morgan Stanley & Co. International PLC      Call         USD         42.79         6/12/14         57,600         (54,064

Wisconsin Energy Corp.

   Credit Suisse International      Call         USD         48.97         6/13/14         41,700         (20,061

CSX Corp.

   Morgan Stanley & Co. International PLC      Call         USD         28.52         6/17/14         54,500         (30,212

Raytheon Co.

   Morgan Stanley & Co. International PLC      Call         USD         98.00         6/17/14         94,300         (135,928

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.62         6/18/14         8,500         (26,146

Enbridge, Inc.

   Deutsche Bank AG      Call         CAD         53.00         6/21/14         58,200         (41,418

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    59


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

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Enbridge, Inc.

   Deutsche Bank AG      Call         CAD         53.00         7/09/14         58,200       $ (52,569

Mattel, Inc.

   Credit Suisse International      Put         USD         38.50         5/27/14         121,300         (72,816

Total

                     $ (4,788,244
                    

 

 

 

 

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 or 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 fair value hierarchy classification 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, please refer to Note 2 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, 2014:

 

 

 
     Level 1     Level 2     Level 3      Total  

 

 

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks1

   $ 1,623,920,960                     $ 1,623,920,960   

Short-Term Securities

     38,251,313                       38,251,313   

Options Purchased

     4,329                       4,329   

 

 

Total

   $ 1,662,176,602                     $ 1,662,176,602   
  

 

 

 

 

1    See above Schedule of Investments for values in each industry

       

         

 

 
     Level 1     Level 2     Level 3      Total  

 

 

Derivative Financial Instruments2

         

Liabilities:

         

Equity contracts

   $ (12,230,172   $ (5,813,168           $ (18,043,340

 

 

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

       

 

See Notes to Financial Statements.

 

60    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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

 

The carrying amount for certain of the Trust’s assets approximates fair value for financial statement purposes. As of April 30, 2014, such assets are categorized within the disclosure hierarchy as follows:

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Assets:

           

Cash

   $ 74,629                       $ 74,629   

Foreign currency at value

     1,778                         1,778   

Cash pledged as collateral for OTC derivatives

     100,000                         100,000   

 

 

Total

   $ 176,407                       $ 176,407   
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2014.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    61


Table of Contents
Schedule of Investments April 30, 2014 (Unaudited)      BlackRock Global Opportunities Equity Trust (BOE)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Austria — 0.8%

     

Erste Group Bank AG

     269,586       $ 9,064,646   

Belgium — 1.5%

     

Anheuser-Busch InBev NV

     154,859         16,878,963   

Canada — 1.6%

     

MEG Energy Corp. (a)(b)

     351,700         12,661,906   

Suncor Energy, Inc.

     152,600         5,886,527   
     

 

 

 
                18,548,433   

China — 2.6%

     

Anhui Conch Cement Co. Ltd., Class H (c)

     2,585,560         9,653,839   

Baidu, Inc. — ADR (a)(b)

     34,700         5,338,595   

Beijing Enterprises Water Group Ltd.

     10,224,000         6,497,864   

China Cinda Asset Management Co. Ltd., Class H (a)(c)

     7,085,000         3,573,094   

Ping An Insurance Group Co. of China Ltd., Class H

     609,500         4,523,787   
     

 

 

 
                29,587,179   

Denmark — 1.2%

     

ISS A/S (a)

     107,959         3,758,498   

Novo Nordisk A/S, Class B

     223,500         10,143,775   
     

 

 

 
                13,902,273   

France — 4.0%

     

Rexel SA

     268,200         6,771,976   

Schneider Electric SA

     69,900         6,561,573   

Societe Generale SA

     305,120         19,002,001   

Vivendi SA

     510,650         13,719,491   
     

 

 

 
                46,055,041   

Germany — 4.2%

     

Bayer AG

     63,500         8,829,137   

Daimler AG

     146,200         13,611,073   

Henkel AG & Co KGaA

     87,200         9,727,165   

OSRAM Licht AG (a)

     189,900         9,969,615   

Telefonica Deutschland Holding AG

     693,500         5,769,525   
     

 

 

 
                47,906,515   

Greece — 0.9%

     

Alpha Bank AE (a)(c)

     10,384,721         10,059,147   

Hong Kong — 1.9%

     

AIA Group Ltd.

     1,731,500         8,421,314   

Melco Crown Entertainment Ltd. — ADR (b)

     146,000         4,990,280   

Samsonite International SA

     2,582,600         8,205,959   
     

 

 

 
                21,617,553   

Indonesia — 1.3%

     

Global Mediacom Tbk PT

     33,195,500         6,301,278   

Matahari Department Store Tbk PT (a)

     6,580,271         8,550,022   
     

 

 

 
                14,851,300   

Ireland — 2.7%

     

CRH PLC

     421,000         12,273,285   

Green REIT PLC (a)

     10,891,189         18,131,835   
     

 

 

 
                30,405,120   

Italy — 1.7%

     

Assicurazioni Generali SpA (b)

     259,000         6,055,748   

Banca Generali SpA

     293,690         9,244,552   

Moncler SpA (a)

     224,200         3,947,870   
     

 

 

 
                19,248,170   

Japan — 5.3%

     

Calbee, Inc.

     241,800         5,922,308   

Kenedix Office Investment Corp. — REIT

     990         4,945,514   

Nabtesco Corp.

     368,600         7,957,465   
Common Stocks    Shares      Value  

Japan (concluded)

     

Shinsei Bank Ltd.

     5,174,000       $ 10,087,350   

SMC Corp.

     22,600         5,380,061   

SoftBank Corp.

     147,100         10,955,716   

Sumitomo Mitsui Financial Group, Inc.

     199,300         7,878,391   

Tokyo Tatemono Co. Ltd.

     946,300         7,546,552   
     

 

 

 
                60,673,357   

Mexico — 0.5%

     

Cemex SAB de CV — ADR (a)

     457,392         5,781,435   

Netherlands — 0.5%

     

ING Groep NV (a)

     400,300         5,722,224   

New Zealand — 0.8%

     

Xero Ltd. (Acquired 10/15/13,
Cost $5,317,368) (a)(d)

     350,000         9,074,516   

Norway — 0.3%

     

Statoil ASA

     125,700         3,832,016   

Panama — 0.5%

     

Copa Holdings SA, Class A

     39,900         5,397,672   

Peru — 0.5%

     

Credicorp Ltd.

     40,700         6,074,475   

South Africa — 0.5%

     

Naspers Ltd., N Shares

     64,000         6,047,954   

South Korea — 0.6%

     

Hyundai Development Co.

     44,570         1,274,599   

NAVER Corp.

     7,620         5,487,290   
     

 

 

 
                6,761,889   

Spain — 2.3%

     

NH Hoteles SA (a)

     2,334,549         14,915,070   

Sacyr SA (a)

     1,818,142         11,975,008   
     

 

 

 
                26,890,078   

Sweden — 2.7%

     

Nordea Bank AB

     792,658         11,453,080   

Skanska AB, B Shares

     282,000         6,474,523   

Svenska Cellulosa AB SCA, Class B

     453,727         12,755,648   
     

 

 

 
                30,683,251   

Switzerland — 4.3%

     

Adecco SA

     186,700         15,673,847   

Novartis AG

     140,800         12,240,107   

Roche Holding AG

     39,170         11,490,374   

UBS AG

     462,749         9,677,877   
     

 

 

 
                49,082,205   

Taiwan — 0.3%

     

Hermes Microvision Inc. — GDR (a)

     77,642         3,215,155   

United Kingdom — 7.5%

     

AO World PLC (a)

     1,033,800         4,119,281   

APR Energy PLC

     675,318         9,053,193   

AstraZeneca PLC

     144,000         11,366,534   

Crest Nicholson Holdings PLC

     2,205,219         12,956,983   

Foxtons Group PLC

     1,678,587         9,026,843   

Metro Bank PLC, (Acquired 1/16/14,
(Cost $5,768,771) (a)(d)

     271,008         5,948,376   

Nomad Holdings Ltd. (a)

     556,597         5,705,119   

Perform Group PLC (a)

     1,345,898         4,897,025   

Polypipe Group PLC (a)

     3,105,291         13,893,802   

Poundland Group PLC (a)

     382,700         2,245,361   

Vodafone Group PLC — ADR (b)

     173,840         6,598,966   
     

 

 

 
                85,811,483   
 

 

See Notes to Financial Statements.

 

62    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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 — 47.0%

     

AbbVie, Inc. (b)(e)

     234,823       $ 12,229,582   

Actavis PLC (a)(b)

     28,000         5,721,240   

Acuity Brands, Inc. (b)

     44,133         5,497,648   

Adobe Systems, Inc. (a)(b)

     99,600         6,144,324   

Alkermes PLC (a)(b)

     173,500         8,026,110   

Altria Group, Inc. (b)

     296,200         11,880,582   

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

     156,800         5,498,976   

Apple Inc. (b)(e)

     34,284         20,230,646   

ARAMARK Holdings Corp.

     291,700         8,223,023   

Autodesk, Inc. (a)(b)

     143,600         6,895,672   

BankUnited, Inc.

     452,683         14,934,012   

Biogen Idec, Inc. (a)(b)

     17,300         4,967,176   

BioMarin Pharmaceutical, Inc. (a)

     113,600         6,614,928   

Bristol-Myers Squibb Co. (b)

     159,700         7,999,373   

Cabot Oil & Gas Corp. (b)(e)

     251,809         9,891,058   

CBS Corp., Class B (b)

     146,100         8,438,736   

Charles River Laboratories International, Inc. (a)

     151,700         8,149,324   

Citigroup, Inc. (b)(e)

     380,961         18,251,842   

Comcast Corp., Class A (b)

     287,600         14,886,176   

Concho Resources, Inc. (a)(b)

     100,800         13,149,360   

Continental Building Products, Inc. (a)

     186,795         3,175,515   

Covidien PLC (b)

     201,800         14,378,250   

Crown Holdings, Inc. (a)(b)

     155,000         7,311,350   

Eastman Chemical Co. (b)

     116,700         10,172,739   

Eaton Corp. PLC (b)

     79,300         5,760,352   

Facebook, Inc., Class A (a)(b)

     94,600         5,655,188   

Flowserve Corp.

     116,900         8,539,545   

General Motors Co. (e)

     215,300         7,423,544   

Genworth Financial, Inc., Class A (a)(b)

     369,900         6,602,715   

Google, Inc., Class A (a)(b)

     24,139         12,911,468   

Google, Inc., Class C (a)

     24,439         12,871,044   

The Hain Celestial Group, Inc. (a)(b)

     118,141         10,162,489   

Hertz Global Holdings, Inc. (a)(b)

     350,900         9,990,123   

JPMorgan Chase & Co. (b)

     281,115         15,736,818   

Kennedy-Wilson Holdings, Inc. (b)

     698,600         15,257,424   

Las Vegas Sands Corp. (b)

     77,900         6,164,227   

Lowe’s Cos., Inc.

     147,200         6,757,952   

Merck & Co., Inc. (b)

     155,300         9,094,368   

Mondelez International, Inc., Class A (b)

     345,500         12,317,075   

National Oilwell Varco, Inc. (b)

     78,400         6,156,752   

Oasis Petroleum, Inc. (a)(b)

     139,722         6,498,470   

Pfizer, Inc. (b)

     372,300         11,645,544   

Platform Specialty Products Corp. (a)

     572,033         11,177,525   

Public Service Enterprise Group, Inc.

     227,900         9,337,063   

Ralph Lauren Corp. (b)

     53,400         8,083,158   

Roper Industries, Inc. (b)

     110,900         15,409,555   

Schlumberger Ltd. (b)

     91,560         9,297,918   

St. Jude Medical, Inc. (b)

     137,800         8,746,166   

Strategic Growth Bancorp. (Acquired $3/13/14,
Cost $5,461,690) (a)(d)

     438,690         5,461,690   

SunPower Corp. (a)(b)(e)

     124,645         4,165,636   

Textron, Inc. (b)

     170,800         6,985,720   

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

     119,800         11,800,300   

United Rentals, Inc. (a)(b)

     131,128         12,303,740   

US Silica Holdings, Inc. (b)

     128,700         5,813,379   

Varian Medical Systems, Inc. (a)(b)

     103,600         8,241,380   

Whole Foods Market, Inc. (b)

     149,200         7,415,240   

WisdomTree Investments, Inc. (a)(b)

     932,393         10,526,717   
     

 

 

 
                536,977,927   

Total Common Stocks — 98.0%

              1,120,149,977   
Investment Companies    Shares      Value  

United Kingdom — 0.4%

     

Kennedy Wilson Europe Real Estate PLC (a)

     302,475       $ 5,209,099   
     
Preferred Stocks                

United States — 2.4%

     

Hortonworks, Inc., Series D (Acquired 3/21/14,
Cost $10,246,000), 0.00% (a)(d)

     840,725         10,246,000   

LendingClub Corp. (Acquired 4/16/14,
Cost $2,810,154), 0.00% (a)(d)

     138,142         2,810,154   

New Relic, Inc. (Acquired 4/15/14,
Cost $7,078,530), 0.00% (a)(d)

     244,644         7,078,530   

Palantir Technologies, Inc. (Acquired 2/10/14,
Cost $3,118,944), 0.00% (a)(d)

     508,800         3,118,944   

Uber Technologies, Inc. (Acquired 3/21/14,
Cost $3,845,800), 0.00% (a)(d)(f)

     3,845,800         3,845,800   

Total Preferred Stocks — 2.4%

              27,099,428   
     
Warrants (g)                

United Kingdom — 0.0%

     

Nomad Holdings Ltd., Expires 4/10/17 (a)

     556,597         251,860   

Total Long Term Investments

(Cost — $1,038,563,044) — 100.8%

              1,152,710,364   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.03% (h)(i)

     9,067,566         9,067,566   
     

Beneficial

Interest

(000)

         

BlackRock Liquidity Series, LLC Money Market Series, 0.18% (h)(i)(j)

   $ 9,199         9,198,761   

Total Short-Term Securities

(Cost — $18,266,327) — 1.6%

              18,266,327   
     
Options Purchased                

(Cost — $4,063) — 0.0%

              9,200   

Total Investments Before Options Written

(Cost — $1,056,833,434) — 102.4%

              1,170,985,891   
     
Options Written                
     
(Premiums Received — $12,733,116) — (1.2)%               (13,786,827

Total Investments Net of Options Written — 101.2%

  

     1,157,199,064   

Liabilities in Excess of Other Assets — (1.2)%

        (13,734,040
     

 

 

 

Net Assets — 100.0%

      $ 1,143,465,024   
     

 

 

 
 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    63


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

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) Restricted securities as to resale. As of April 30, 2014 the Trust held 4.2% of its net assets, with current market value of $47,584,010 and original cost of $43,647,257, in these securities.

 

(e) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(f) Convertible security.

 

(g) Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.

 

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

 

(i) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2014, 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, 2013

    

Net

Activity

   

Shares/Beneficial

Interest Held at

April 30, 2014

     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     36,387,584         (27,320,018     9,067,566       $ 5,179   

BlackRock Liquidity Series, LLC Money Market Series

           $ 9,198,761      $ 9,198,761       $ 63,183   

 

(j) 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.

 

Ÿ  

Exchange-traded options purchased as of April 30, 2014 were as follows:

 

Description   

Put/

Call

    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Kennedy-Wilson Holdings, Inc.

     Call         USD         25.00         5/19/14         368       $ 9,200   

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Bristol-Myers Squibb Co.

     Call         USD         56.00         5/02/14         444       $ (1,332

Genworth Financial, Inc., Class A

     Call         USD         17.50         5/02/14         1,110         (47,175

JPMorgan Chase & Co.

     Call         USD         60.00         5/02/14         236         (472

Apple Inc.

     Call         USD         545.00         5/05/14         1         (4,567

Citigroup, Inc.

     Call         USD         48.50         5/05/14         159         (1,272

Eaton Corp. PLC

     Call         USD         73.00         5/05/14         130         (2,600

Schlumberger Ltd.

     Call         USD         96.00         5/05/14         345         (189,750

United Rentals, Inc.

     Call         USD         95.00         5/05/14         265         (20,861

American Airlines Group, Inc.

     Call         USD         36.50         5/09/14         600         (21,000

Apple Inc.

     Call         USD         535.00         5/09/14         116         (646,120

Biogen Idec, Inc.

     Call         USD         315.00         5/09/14         48         (2,640

CBS Corp., Class B

     Call         USD         59.00         5/09/14         300         (39,750

Citigroup, Inc.

     Call         USD         50.00         5/09/14         500         (3,000

Genworth Financial, Inc., Class A

     Call         USD         18.50         5/09/14         1,110         (10,545

Schlumberger Ltd.

     Call         USD         100.00         5/09/14         200         (42,100

SunPower Corp.

     Call         USD         34.50         5/09/14         230         (14,260

Whole Foods Market, Inc.

     Call         USD         53.00         5/09/14         579         (30,687

Assicurazioni Generali SpA

     Call         EUR         16.50         5/16/14         720         (49,620

AbbVie, Inc.

     Call         USD         55.00         5/19/14         327         (4,905

Acuity Brands, Inc.

     Call         USD         130.00         5/19/14         240         (21,000

Adobe Systems, Inc.

     Call         USD         65.00         5/19/14         548         (31,510

Alkermes PLC

     Call         USD         47.00         5/19/14         630         (64,575

Altria Group, Inc.

     Call         USD         39.00         5/19/14         550         (69,025

Autodesk, Inc.

     Call         USD         50.00         5/19/14         324         (40,986

Biogen Idec, Inc.

     Call         USD         315.00         5/19/14         48         (6,480

 

See Notes to Financial Statements.

 

64    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (continued)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Bristol-Myers Squibb Co.

     Call         USD         57.50         5/19/14         444       $ (2,442

Cabot Oil & Gas Corp.

     Call         USD         38.75         5/19/14         870         (104,779

CBS Corp., Class B

     Call         USD         65.00         5/19/14         100         (3,000

Citigroup, Inc.

     Call         USD         48.00         5/19/14         700         (46,900

Concho Resources, Inc.

     Call         USD         135.00         5/19/14         289         (55,632

Covidien PLC

     Call         USD         75.00         5/19/14         680         (6,800

Crown Holdings, Inc.

     Call         USD         46.00         5/19/14         440         (64,900

Eastman Chemical Co.

     Call         USD         90.00         5/19/14         642         (22,470

Google, Inc., Class A

     Call         USD         560.00         5/19/14         134         (23,115

Hertz Global Holdings, Inc.

     Call         USD         29.00         5/19/14         975         (68,250

Hertz Global Holdings, Inc.

     Call         USD         30.00         5/19/14         975         (34,125

Las Vegas Sands Corp.

     Call         USD         80.00         5/19/14         217         (34,612

Las Vegas Sands Corp.

     Call         USD         82.50         5/19/14         106         (7,844

MEG Energy Corp.

     Call         CAD         38.00         5/19/14         461         (68,348

Melco Crown Entertainment Ltd. — ADR

     Call         USD         38.66         5/19/14         299         (8,222

Merck & Co., Inc.

     Call         USD         57.50         5/19/14         432         (75,600

Mondelez International, Inc., Class A

     Call         USD         35.00         5/19/14         961         (97,061

Oasis Petroleum, Inc.

     Call         USD         45.00         5/19/14         250         (60,000

Oasis Petroleum, Inc.

     Call         USD         48.00         5/19/14         528         (48,840

Pfizer, Inc.

     Call         USD         31.00         5/19/14         517         (31,795

Ralph Lauren Corp.

     Call         USD         160.00         5/19/14         149         (33,152

Roper Industries, Inc.

     Call         USD         135.00         5/19/14         309         (148,320

St. Jude Medical, Inc.

     Call         USD         65.00         5/19/14         383         (31,597

SunPower Corp.

     Call         USD         31.00         5/19/14         233         (66,753

Textron, Inc.

     Call         USD         40.25         5/19/14         215         (33,336

Textron, Inc.

     Call         USD         42.00         5/19/14         110         (7,700

United Parcel Service, Inc., Class B

     Call         USD         97.50         5/19/14         659         (100,827

United Rentals, Inc.

     Call         USD         95.00         5/19/14         235         (44,062

US Silica Holdings, Inc.

     Call         USD         37.00         5/19/14         716         (540,580

Varian Medical Systems, Inc.

     Call         USD         85.00         5/19/14         576         (10,080

Vodafone Group PLC — ADR

     Call         USD         38.00         5/19/14         239         (17,328

WisdomTree Investments, Inc.

     Call         USD         15.00         5/19/14         810         (8,100

Altria Group, Inc.

     Call         USD         38.50         5/23/14         550         (96,250

American Airlines Group, Inc.

     Call         USD         37.50         5/23/14         500         (27,500

Citigroup, Inc.

     Call         USD         49.00         5/23/14         579         (24,028

Comcast Corp., Class A

     Call         USD         50.00         5/23/14         942         (194,052

Eaton Corp. PLC

     Call         USD         76.00         5/23/14         307         (6,140

Pfizer, Inc.

     Call         USD         31.00         5/23/14         518         (37,037

Altria Group, Inc.

     Call         USD         38.50         5/30/14         550         (97,350

Apple Inc.

     Call         USD         535.00         5/30/14         116         (647,570

Baidu, Inc. — ADR

     Call         USD         170.00         5/30/14         94         (15,181

Citigroup, Inc.

     Call         USD         48.50         5/30/14         157         (11,147

Comcast Corp., Class A

     Call         USD         52.00         5/30/14         640         (50,560

Facebook, Inc., Class A

     Call         USD         63.00         5/30/14         257         (38,550

JPMorgan Chase & Co.

     Call         USD         56.50         5/30/14         436         (35,534

Merck & Co., Inc.

     Call         USD         58.50         5/30/14         432         (65,448

National Oilwell Varco, Inc.

     Call         USD         82.00         5/30/14         432         (19,872

Pfizer, Inc.

     Call         USD         31.50         5/30/14         1,030         (58,195

St. Jude Medical, Inc.

     Call         USD         65.00         6/02/14         383         (52,559

CBS Corp., Class B

     Call         USD         61.00         6/06/14         400         (49,000

Facebook, Inc., Class A

     Call         USD         61.50         6/06/14         263         (61,148

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    65


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

SunPower Corp.

     Call         USD         35.50         6/06/14         222       $ (27,417

Assicurazioni Generali SpA

     Call         EUR         17.00         6/20/14         720         (25,588

AbbVie, Inc.

     Call         USD         50.00         6/23/14         964         (298,840

Baidu, Inc. — ADR

     Call         USD         175.00         6/23/14         97         (20,952

The Hain Celestial Group, Inc.

     Call         USD         90.00         6/23/14         320         (60,000

Las Vegas Sands Corp.

     Call         USD         80.00         6/23/14         105         (32,025

Melco Crown Entertainment Ltd. — ADR

     Call         USD         41.00         6/23/14         290         (14,500

Ralph Lauren Corp.

     Call         USD         165.00         6/23/14         149         (27,938

Textron, Inc.

     Call         USD         40.00         6/23/14         612         (130,356

United Rentals, Inc.

     Call         USD         97.50         6/23/14         235         (65,800

Vodafone Group PLC — ADR

     Call         USD         40.00         6/23/14         359         (22,438

WisdomTree Investments, Inc.

     Call         USD         12.50         6/23/14         1,570         (62,800

Actavis PLC

     Call         USD         210.00         8/18/14         154         (172,480

Total

                  $ (5,821,057
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Crest Nicholson Holdings PLC

   Morgan Stanley & Co. International PLC      Call         GBP         4.21         5/02/14         223,000       $ (4

MEG Energy Corp.

   Deutsche Bank AG      Call         CAD         32.50         5/02/14         79,200         (502,999

BioMarin Pharmaceutical, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         80.00         5/05/14         31,600           

Covidien PLC

   Bank of America N.A.      Call         USD         70.75         5/05/14         70,800         (59,462

Mondelez International, Inc., Class A

   Credit Suisse International      Call         USD         35.00         5/05/14         94,000         (71,691

Telefonica Deutschland Holding AG

   Deutsche Bank AG      Call         EUR         5.87         5/05/14         136,200         (25,327

Autodesk, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         52.30         5/06/14         46,500         (6,612

Bayer AG

   Credit Suisse International      Call         EUR         97.23         5/06/14         35,000         (164,647

Rexel SA

   Morgan Stanley & Co. International PLC      Call         EUR         18.99         5/06/14         21,000         (452

Roche Holding AG

   Morgan Stanley & Co. International PLC      Call         CHF         267.51         5/06/14         22,000         (4,845

Societe Generale SA

   Credit Suisse International      Call         EUR         48.48         5/06/14         34,000         (1,571

Societe Generale SA

   Goldman Sachs International      Call         EUR         48.34         5/06/14         58,000         (2,807

ARAMARK Holdings Corp.

   UBS AG      Call         USD         29.07         5/07/14         44,300         (5,372

BankUnited, Inc.

   Credit Suisse International      Call         USD         34.78         5/07/14         47,000         (486

Daimler AG

   Morgan Stanley & Co. International PLC      Call         EUR         67.78         5/07/14         21,600         (28,709

Novartis AG

   Deutsche Bank AG      Call         CHF         73.00         5/07/14         35,100         (141,055

Svenska Cellulosa AB SCA, Class B

   Goldman Sachs International      Call         SEK         187.58         5/07/14         70,500         (4,906

Cemex SAB de CV — ADR

   Deutsche Bank AG      Call         USD         12.65         5/08/14         126,880         (25,428

Henkel AG & Co KGaA

   Credit Suisse International      Call         EUR         79.58         5/08/14         48,500         (100,193

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         508,049.83         5/08/14         140         (14,545

Kennedy-Wilson Holdings, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         25.18         5/08/14         36,800         (11

MEG Energy Corp.

   Morgan Stanley & Co. International PLC      Call         CAD         34.88         5/08/14         68,200         (285,435

NAVER Corp.

   UBS AG      Call         KRW         820,910.00         5/08/14         2,600         (3,199

NH Hoteles SA

   Goldman Sachs International      Call         EUR         4.93         5/08/14         133,000         (3,632

SMC Corp.

   UBS AG      Call         JPY         25,944.83         5/08/14         6,300         (3,019

SoftBank Corp.

   Morgan Stanley & Co. International PLC      Call         JPY         8,017.98         5/08/14         81,800         (32,863

Concho Resources, Inc.

   Deutsche Bank AG      Call         USD         124.28         5/09/14         26,500         (183,168

Melco Crown Entertainment Ltd. — ADR

   Goldman Sachs International      Call         USD         42.06         5/09/14         21,400         (23

Charles River Laboratories International, Inc.

   Citibank N.A.      Call         USD         63.50         5/12/14         42,200         (3

 

See Notes to Financial Statements.

 

66    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   
  

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Daimler AG

   Credit Suisse International      Call         EUR         70.98         5/13/14         42,200       $ (15,053

ING Groep NV

   Goldman Sachs International      Call         EUR         10.95         5/13/14         142,700         (9,901

OSRAM Licht AG

   Goldman Sachs International      Call         EUR         47.83         5/13/14         29,300         (13

AIA Group Ltd.

   Deutsche Bank AG      Call         HKD         36.88         5/14/14         963,200         (113,272

Anhui Conch Cement Co. Ltd., Class H

   Citibank N.A.      Call         HKD         32.62         5/14/14         540,000         (3,334

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         526,802.87         5/14/14         40         (2,405

Nabtesco Corp.

   Goldman Sachs International      Call         JPY         2,442.35         5/14/14         72,600         (1,229

Samsonite International SA

   Deutsche Bank AG      Call         HKD         24.15         5/14/14         297,900         (37,879

Shinsei Bank Ltd.

   Goldman Sachs International      Call         JPY         183.68         5/14/14         1,071,000         (175,682

Skanska AB, B Shares

   Goldman Sachs International      Call         SEK         147.85         5/14/14         78,400         (40,891

AstraZeneca PLC

   Morgan Stanley & Co. International PLC      Call         GBP         38.07         5/15/14         80,000         (1,176,825

CRH PLC

   Morgan Stanley & Co. International PLC      Call         GBP         17.07         5/15/14         57,000         (46,055

The Hain Celestial Group, Inc.

   Citibank N.A.      Call         USD         86.91         5/15/14         32,900         (72,324

Kennedy-Wilson Holdings, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         25.18         5/15/14         36,800         (223

Naspers Ltd., N Shares

   Deutsche Bank AG      Call         ZAR         1,216.95         5/15/14         16,000         (893

NH Hoteles SA

   Goldman Sachs International      Call         EUR         4.90         5/15/14         50,000         (3,545

Svenska Cellulosa AB SCA, Class B

   Goldman Sachs International      Call         SEK         187.58         5/15/14         70,500         (10,656

Telefonica Deutschland Holding AG

   Deutsche Bank AG      Call         EUR         5.84         5/15/14         135,000         (35,720

Telefonica Deutschland Holding AG

   Goldman Sachs International      Call         EUR         5.89         5/15/14         113,400         (23,738

Samsonite International SA

   Deutsche Bank AG      Call         HKD         24.15         5/20/14         297,900         (42,957

Anheuser-Busch InBev NV

   Morgan Stanley & Co. International PLC      Call         EUR         77.64         5/21/14         32,400         (83,718

ING Groep NV

   Credit Suisse International      Call         EUR         10.32         5/21/14         79,900         (32,256

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         526,802.87         5/21/14         40         (3,399

Rexel SA

   Morgan Stanley & Co. International PLC      Call         EUR         18.70         5/21/14         21,000         (5,304

Schneider Electric SA

   Deutsche Bank AG      Call         EUR         65.15         5/21/14         21,000         (73,158

ARAMARK Holdings Corp.

   Deutsche Bank AG      Call         USD         28.25         5/22/14         59,000         (41,530

BankUnited, Inc.

   Deutsche Bank AG      Call         USD         34.60         5/22/14         66,000         (10,186

BioMarin Pharmaceutical, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         80.00         5/22/14         31,600         (142

Copa Holdings SA, Class A

   Bank of America N.A.      Call         USD         150.39         5/22/14         11,100         (7,852

Lowe’s Cos., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         47.17         5/22/14         40,500         (15,317

Nordea Bank AB

   Goldman Sachs International      Call         SEK         94.50         5/22/14         115,000         (22,890

Vivendi SA

   JPMorgan Chase Bank N.A.      Call         EUR         20.24         5/22/14         153,000         (20,568

Calbee, Inc.

   Morgan Stanley & Co. International PLC      Call         JPY         2,505.28         5/27/14         66,000         (45,172

Cemex SAB de CV — ADR

   Deutsche Bank AG      Call         USD         12.65         5/27/14         126,880         (47,251

Charles River Laboratories International, Inc.

   Citibank N.A.      Call         USD         63.50         5/27/14         42,200         (444

China Cinda Asset Management Co. Ltd., Class H

   Deutsche Bank AG      Call         HKD         4.33         5/27/14         710,000         (5,784

Samsonite International SA

   Deutsche Bank AG      Call         HKD         24.15         5/27/14         297,900         (48,076

Tokyo Tatemono Co. Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         908.40         5/27/14         284,000         (26,577

Adecco SA

   Morgan Stanley & Co. International PLC      Call         CHF         73.64         5/28/14         32,000         (93,377

Beijing Enterprises Water Group Ltd.

   Morgan Stanley & Co. International PLC      Call         HKD         5.43         5/28/14         2,800,000         (29,476

Crown Holdings, Inc.

   Deutsche Bank AG      Call         USD         46.85         5/28/14         43,000         (45,276

Foxtons Group PLC

   Morgan Stanley & Co. International PLC      Call         GBP         3.75         5/28/14         25,000         (295

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         526,802.87         5/28/14         40         (4,331

NH Hoteles SA

   UBS AG      Call         EUR         5.30         5/28/14         50,000         (1,458

Sacyr SA

   Goldman Sachs International      Call         EUR         5.12         5/28/14         441,000         (55,966

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    67


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Schneider Electric SA

   Morgan Stanley & Co. International PLC      Call         EUR         67.37         5/28/14         17,400       $ (25,176

Skanska AB, B Shares

   Morgan Stanley & Co. International PLC      Call         SEK         152.70         5/28/14         78,500         (27,447

Statoil ASA

   UBS AG      Call         NOK         169.92         5/28/14         34,550         (66,122

Crest Nicholson Holdings PLC

   Credit Suisse International      Call         GBP         3.71         5/29/14         50,000         (2,845

Kennedy-Wilson Holdings, Inc.

   Deutsche Bank AG      Call         USD         25.41         5/29/14         34,000         (1,176

Nabtesco Corp.

   Citibank N.A.      Call         JPY         2,385.00         5/29/14         66,200         (10,267

Public Service Enterprise Group, Inc.

   UBS AG      Call         USD         39.03         5/29/14         63,400         (140,820

Crest Nicholson Holdings PLC

   Morgan Stanley & Co. International PLC      Call         GBP         3.72         6/03/14         36,000         (2,336

CRH PLC

   Morgan Stanley & Co. International PLC      Call         GBP         16.73         6/03/14         46,100         (66,083

Erste Group Bank AG

   Goldman Sachs International      Call         EUR         25.09         6/03/14         55,000         (36,406

Naspers Ltd., N Shares

   Morgan Stanley & Co. International PLC      Call         ZAR         1,180.22         6/03/14         35,400         (27,158

NH Hoteles SA

   Morgan Stanley & Co. International PLC      Call         EUR         5.23         6/03/14         120,000         (4,697

Rexel SA

   Goldman Sachs International      Call         EUR         18.91         6/03/14         64,800         (18,863

Sacyr SA

   Credit Suisse International      Call         EUR         4.84         6/03/14         376,000         (104,722

Statoil ASA

   UBS AG      Call         NOK         169.92         6/03/14         34,550         (66,383

Vodafone Group PLC — ADR

   Deutsche Bank AG      Call         USD         37.31         6/03/14         35,900         (49,491

Adecco SA

   Morgan Stanley & Co. International PLC      Call         CHF         71.19         6/04/14         35,500         (155,569

Beijing Enterprises Water Group Ltd.

   Morgan Stanley & Co. International PLC      Call         HKD         5.51         6/04/14         2,800,000         (33,201

Cabot Oil & Gas Corp.

   UBS AG      Call         USD         35.91         6/04/14         51,500         (177,010

Calbee, Inc.

   Morgan Stanley & Co. International PLC      Call         JPY         2,517.56         6/04/14         66,000         (47,726

Daimler AG

   UBS AG      Call         EUR         67.85         6/04/14         16,700         (41,129

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         526,802.87         6/04/14         40         (5,107

Lowe’s Cos., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         47.17         6/04/14         40,500         (29,128

Novo Nordisk A/S, Class B

   Deutsche Bank AG      Call         DKK         243.60         6/04/14         62,200         (79,882

Samsonite International SA

   Deutsche Bank AG      Call         HKD         25.31         6/04/14         269,400         (28,769

Anhui Conch Cement Co. Ltd., Class H

   Morgan Stanley & Co. International PLC      Call         HKD         31.76         6/05/14         449,000         (20,522

Copa Holdings SA, Class A

   Bank of America N.A.      Call         USD         150.39         6/05/14         11,100         (10,868

Nordea Bank AB

   Goldman Sachs International      Call         SEK         94.50         6/05/14         115,000         (29,536

Nordea Bank AB

   UBS AG      Call         SEK         92.47         6/05/14         88,800         (37,319

SMC Corp.

   UBS AG      Call         JPY         26,297.43         6/05/14         6,300         (20,442

Vivendi SA

   Goldman Sachs International      Call         EUR         20.15         6/05/14         81,400         (25,532

Novartis AG

   Goldman Sachs International      Call         CHF         74.65         6/06/14         43,200         (124,433

BankUnited, Inc.

   Goldman Sachs International      Call         USD         32.98         6/09/14         66,800         (59,038

Flowserve Corp.

   UBS AG      Call         USD         73.28         6/09/14         32,100         (59,723

Erste Group Bank AG

   Goldman Sachs International      Call         EUR         25.15         6/10/14         67,000         (49,116

Kennedy-Wilson Holdings, Inc.

   Deutsche Bank AG      Call         USD         24.22         6/10/14         48,600         (9,597

NAVER Corp.

   Morgan Stanley & Co. International PLC      Call         KRW         780,000.00         6/10/14         1,646         (45,217

NH Hoteles SA

   Goldman Sachs International      Call         EUR         5.07         6/10/14         133,000         (12,684

Nordea Bank AB

   Bank of America N.A.      Call         SEK         95.60         6/10/14         117,000         (20,622

Svenska Cellulosa AB SCA, Class B

   Deutsche Bank AG      Call         SEK         185.88         6/10/14         111,400         (55,762

ARAMARK Holdings Corp.

   Deutsche Bank AG      Call         USD         28.00         6/11/14         57,200         (62,995

Kenedix Office Investment Corp. — REIT

   Bank of America N.A.      Call         JPY         534,220.08         6/11/14         120         (14,541

OSRAM Licht AG

   Goldman Sachs International      Call         EUR         42.78         6/11/14         25,000         (5,917

Rexel SA

   Goldman Sachs International      Call         EUR         18.49         6/11/14         40,000         (21,517

Societe Generale SA

   Goldman Sachs International      Call         EUR         45.26         6/11/14         76,000         (97,784

 

See Notes to Financial Statements.

 

68    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (concluded)

 

Description    Counterparty      Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Sumitomo Mitsui Financial Group, Inc.

     Morgan Stanley & Co. International PLC         Call         JPY         4,284.50         6/11/14         110,800       $ (60,884

Tokyo Tatemono Co. Ltd.

     Morgan Stanley & Co. International PLC         Call         JPY         849.74         6/11/14         121,000         (38,772

Nabtesco Corp.

     Citibank N.A.         Call         JPY         2,385.00         6/12/14         66,200         (17,153

Ping An Insurance Group Co. of China Ltd., Class H

     UBS AG         Call         HKD         61.76         6/12/14         339,000         (20,871

Public Service Enterprise Group, Inc.

     UBS AG         Call         USD         39.03         6/12/14         63,400         (122,996

Shinsei Bank Ltd.

     Morgan Stanley & Co. International PLC         Call         JPY         207.00         6/12/14         1,092,000         (89,096

Novo Nordisk A/S, Class B

     Goldman Sachs International         Call         DKK         246.64         6/13/14         60,800         (57,040

UBS AG

     Bank of America N.A.         Call         CHF         18.63         6/13/14         254,500         (95,635

Roper Industries, Inc.

     Goldman Sachs International         Call         USD         135.00         6/16/14         30,100         (171,511

Crest Nicholson Holdings PLC

     Morgan Stanley & Co. International PLC         Call         GBP         3.56         6/17/14         50,000         (8,823

CRH PLC

     Goldman Sachs International         Call         GBP         17.45         6/17/14         131,000         (121,978

Foxtons Group PLC

     Bank of America N.A.         Call         GBP         3.25         6/17/14         25,000         (5,188

NH Hoteles SA

     Goldman Sachs International         Call         EUR         4.76         6/17/14         100,000         (32,209

NH Hoteles SA

     Morgan Stanley & Co. International PLC         Call         EUR         5.23         6/17/14         120,000         (9,205

Samsonite International SA

     Deutsche Bank AG         Call         HKD         24.82         6/17/14         136,800         (21,512

Suncor Energy, Inc.

     UBS AG         Call         CAD         41.78         6/17/14         42,000         (45,568

Anheuser-Busch InBev NV

     Morgan Stanley & Co. International PLC         Call         EUR         79.13         6/18/14         53,800         (120,797

Anhui Conch Cement Co. Ltd., Class H

     UBS AG         Call         HKD         33.07         6/18/14         449,000         (16,452

Kenedix Office Investment Corp. — REIT

     Bank of America N.A.         Call         JPY         534,220.08         6/18/14         120         (16,428

Kennedy-Wilson Holdings, Inc.

     Deutsche Bank AG         Call         USD         24.22         6/18/14         48,600         (12,258

Credicorp Ltd.

     Morgan Stanley & Co. International PLC         Call         USD         145.42         6/19/14         22,400         (148,141

Vivendi SA

     Morgan Stanley & Co. International PLC         Call         EUR         19.79         6/24/14         46,500         (23,618

Tokyo Tatemono Co. Ltd.

     Morgan Stanley & Co. International PLC         Call         JPY         849.68         6/25/14         121,000         (47,271

BankUnited, Inc.

     Deutsche Bank AG         Call         USD         33.53         6/26/14         70,000         (57,836

Shinsei Bank Ltd.

     Morgan Stanley & Co. International PLC         Call         JPY         205.92         6/26/14         357,000         (36,622

Adecco SA

     Deutsche Bank AG         Call         CHF         74.44         6/27/14         35,500         (107,245

Kennedy-Wilson Holdings, Inc.

     Deutsche Bank AG         Call         USD         24.22         6/30/14         48,600         (16,160

Suncor Energy, Inc.

     UBS AG         Call         CAD         41.78         6/30/14         42,000         (50,817

Kennedy-Wilson Holdings, Inc.

     Morgan Stanley & Co. International PLC         Call         USD         22.97         7/08/14         32,100         (22,642

NH Hoteles SA

     Goldman Sachs International         Call         EUR         4.55         7/08/14         80,000         (37,953

Samsonite International SA

     Deutsche Bank AG         Call         HKD         24.00         7/08/14         136,800         (32,652

Shinsei Bank Ltd.

     Morgan Stanley & Co. International PLC         Call         JPY         203.27         7/10/14         357,000         (45,750

Kennedy-Wilson Holdings, Inc.

     Morgan Stanley & Co. International PLC         Call         USD         23.66         7/17/14         33,500         (19,147

Total

                     $ (7,965,770
                    

 

 

 

 

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 or 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.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    69


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

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 fair value hierarchy classification 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, please refer to Note 2 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, 2014:

 

 

 
     Level 1     Level 2     Level 3      Total  

 

 

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Austria

          $ 9,064,646              $ 9,064,646   

Belgium

            16,878,963                16,878,963   

Canada

   $ 18,548,433                       18,548,433   

China

     5,338,595        24,248,584                29,587,179   

Denmark

     3,758,498        10,143,775                13,902,273   

France

     6,771,976        39,283,065                46,055,041   

Germany

            47,906,515                47,906,515   

Greece

            10,059,147                10,059,147   

Hong Kong

     4,990,280        16,627,273                21,617,553   

Indonesia

            14,851,300                14,851,300   

Ireland

     18,131,835        12,273,285                30,405,120   

Italy

            19,248,170                19,248,170   

Japan

     5,922,308        54,751,049                60,673,357   

Mexico

     5,781,435                       5,781,435   

Netherlands

            5,722,224                5,722,224   

New Zealand

            9,074,516                9,074,516   

Norway

            3,832,016                3,832,016   

Panama

     5,397,672                       5,397,672   

Peru

     6,074,475                       6,074,475   

South Africa

            6,047,954                6,047,954   

South Korea

     1,274,599        5,487,290                6,761,889   

Spain

            26,890,078                26,890,078   

Sweden

     11,453,080        19,230,171                30,683,251   

Switzerland

            49,082,205                49,082,205   

Taiwan

     3,215,155                       3,215,155   

United Kingdom

     59,469,730        20,393,377      $ 5,948,376         85,811,483   

United States

     531,516,237               5,461,690         536,977,927   

Investment Companies

     5,209,099                       5,209,099   

Preferred Stocks

                   27,099,428         27,099,428   

Warrants

     251,860                       251,860   

Short-Term Securities

     9,067,566        9,198,761                18,266,327   

Options Purchased

     9,200                       9,200   

 

 

Total

   $ 702,182,033      $ 430,294,364      $ 38,509,494       $ 1,170,985,891   
  

 

 

 
         

 

 
     Level 1     Level 2     Level 3      Total  

 

 

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (5,534,317   $ (8,252,510           $ (13,786,827

 

 

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

       

 

See Notes to Financial Statements.

 

70    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (concluded)      BlackRock Global Opportunities Equity Trust (BOE)   

 

The carrying amount for certain of the Trust’s assets and/or liabilities approximates fair value for financial statement purposes. As of April 30, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1      Level 2     Level 3      Total  

Assets:

          

Cash

   $ 24,330                      $ 24,330   

Foreign currency at value

     10,988,841                        10,988,841   

Liabilities:

          

Collateral on securities loaned at value

           $ (9,198,761             (9,198,761

Total

   $ 11,013,171       $ (9,198,761           $ 1,814,410   
  

 

 

 

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, 2013 the Trust did not utilize the external pricing service model adjustments as significant market movements did not occur. As of April 30, 2014, securities with a value of $71,210,163 were systematically fair valued due to significant market movements. Therefore, these securities were transferred from Level 1 to Level 2 during the period October 31, 2013 to April 30, 2014.

A reconciliation of Level 3 investments is presented when the Trust had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

 

     

Common

Stocks

    

Preferred

Stocks

     Rights      Total  

Assets:

           

Opening Balance, as of October 31, 2013

                               

Transfers into Level 3

                               

Transfers out of Level 3

                               

Accrued discounts/premiums

                               

Net realized gain (loss)

                               

Net change in unrealized appreciation/depreciation1

   $ 179,605                       $ 179,605   

Purchases

     11,230,461       $ 23,253,628       $ 3,845,800         38,329,889   

Sales

                               

Closing Balance, as of April 30, 2014

   $ 11,410,066       $ 23,253,628       $ 3,845,800       $ 38,509,494   
  

 

 

 

Net change in unrealized appreciation/depreciation on investments still held at April 30, 2014

   $ 179,605                       $ 179,605   
  

 

 

 

 

1 

Included in the related net change in unrealized appreciation/depreciation in the Statement of Operations.

The Trust’s investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of such Level 3 investments.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    71


Table of Contents
Schedule of Investments April 30, 2014 (Unaudited)      BlackRock Health Sciences Trust (BME)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Biotechnology — 24.7%

     

ACADIA Pharmaceuticals, Inc. (a)(b)

     32,095       $ 646,072   

Acceleron Pharma, Inc. (a)(b)

     12,100         415,635   

Acorda Therapeutics, Inc. (a)(b)

     40,900         1,449,905   

Actelion Ltd. (a)

     19,300         1,900,156   

Adamas Pharmaceuticals, Inc. (a)

     6,500         119,925   

Aegerion Pharmaceuticals, Inc. (a)(c)

     9,000         398,340   

Agios Pharmaceuticals, Inc. (a)(b)

     8,500         357,510   

Akebia Therapeutics, Inc. (a)

     5,400         131,598   

Alexion Pharmaceuticals, Inc. (a)(b)

     50,460         7,982,772   

Alkermes PLC (a)(b)

     80,300         3,714,678   

Amgen, Inc. (b)

     47,100         5,263,425   

Aquinox Pharmaceuticals, Inc. (a)

     6,800         62,084   

Array BioPharma, Inc. (a)

     88,100         350,638   

Biogen Idec, Inc. (a)(b)

     34,400         9,876,928   

BioMarin Pharmaceutical, Inc. (a)

     41,200         2,399,076   

Biota Pharmaceuticals, Inc. (a)

     38,100         140,589   

Bluebird Bio, Inc. (a)

     9,300         184,140   

Celgene Corp. (a)(b)

     50,943         7,489,131   

Conatus Pharmaceuticals, Inc. (a)

     8,700         53,505   

Concert Pharmaceuticals, Inc. (a)

     12,400         110,856   

Dyax Corp. (a)(b)

     55,727         368,356   

Epizyme, Inc. (a)

     23,300         508,406   

Exelixis, Inc. (a)

     34,600         122,484   

Genomic Health, Inc. (a)

     10,700         280,768   

Gilead Sciences, Inc. (a)(b)

     48,121         3,777,017   

Incyte Corp. Ltd. (a)(b)

     16,500         801,240   

Infinity Pharmaceuticals, Inc. (a)

     52,700         514,879   

InterMune, Inc. (a)(b)

     33,700         1,081,096   

Isis Pharmaceuticals, Inc. (a)(b)

     32,300         859,503   

Karyopharm Therapeutics, Inc. (a)

     26,953         723,149   

MacroGenics, Inc. (a)

     5,300         105,682   

Medivation, Inc. (a)

     17,900         1,077,759   

Neurocrine Biosciences, Inc. (a)(b)

     60,062         842,069   

Protalix BioTherapeutics, Inc. (a)(c)

     122,100         494,505   

PTC Therapeutics, Inc. (a)

     4,800         93,792   

Puma Biotechnology, Inc. (a)(b)

     15,300         1,155,762   

Regeneron Pharmaceuticals, Inc. (a)(b)

     12,758         3,787,723   

Seattle Genetics, Inc. (a)(b)

     74,867         2,880,882   

Tekmira Pharmaceuticals Corp. (a)

     25,200         334,908   

Ultragenyx Pharmaceutical, Inc.
(Acquired 1/31/2014, cost $384,111) (a)(d)

     44,249         1,630,178   

uniQure BV (a)

     7,000         71,890   

Verastem, Inc. (a)

     21,800         182,030   

Vertex Pharmaceuticals, Inc. (a)

     37,005         2,505,240   
     

 

 

 
                67,246,281   

Chemicals — 0.5%

     

Sigma-Aldrich Corp. (b)

     14,500         1,395,045   

Health Care Equipment & Supplies — 16.8%

     

Abbott Laboratories (b)

     111,500         4,319,510   

Alere, Inc. (a)(b)

     35,400         1,182,360   

AtriCure, Inc. (a)

     25,462         392,115   

Baxter International, Inc. (b)

     18,900         1,375,731   

Becton Dickinson and Co. (b)

     27,300         3,085,719   

Boston Scientific Corp. (a)(b)

     331,000         4,173,910   

CareFusion Corp. (a)(b)

     54,900         2,144,394   

Coloplast A/S, Class B

     24,800         2,083,027   

The Cooper Cos., Inc. (b)

     9,200         1,213,572   

Covidien PLC (b)

     83,100         5,920,875   

DENTSPLY International, Inc. (b)

     12,800         571,264   

Edwards Lifesciences Corp. (a)(b)

     27,500         2,240,425   

Medtronic, Inc. (b)

     58,800         3,458,616   

PW Medtech Group Ltd. (a)

     928,400         434,542   

 

Common Stocks    Shares      Value  

Health Care Equipment & Supplies (concluded)

     

St. Jude Medical, Inc. (b)

     65,500       $ 4,157,285   

Stryker Corp. (b)

     67,600         5,255,900   

Varian Medical Systems, Inc. (a)(b)

     28,800         2,291,040   

Zimmer Holdings, Inc. (b)

     13,300         1,287,440   
     

 

 

 
                45,587,725   

Health Care Providers & Services — 12.1%

     

Aetna, Inc.

     32,211         2,301,476   

AmerisourceBergen Corp. (b)

     10,000         651,800   

Cardinal Health, Inc. (b)

     58,830         4,089,273   

Cigna Corp.

     29,100         2,329,164   

Envision Healthcare Holdings, Inc. (a)(b)

     38,100         1,287,399   

Express Scripts Holding Co. (a)(b)

     20,776         1,383,266   

HCA Holdings, Inc. (a)(b)

     75,400         3,920,800   

McKesson Corp. (b)

     23,600         3,992,884   

Premier, Inc., Class A (a)(b)

     30,800         924,000   

Team Health Holdings, Inc. (a)(b)

     28,800         1,396,224   

UnitedHealth Group, Inc. (b)

     78,734         5,908,199   

Universal Health Services, Inc., Class B (b)

     39,600         3,238,884   

WellPoint, Inc. (b)

     16,300         1,641,084   
     

 

 

 
                33,064,453   

Health Care Technology — 0.7%

     

Cerner Corp. (a)

     35,300         1,810,890   

Life Sciences Tools & Services — 5.0%

     

Agilent Technologies, Inc. (b)

     56,700         3,064,068   

Charles River Laboratories International, Inc. (a)(b)

     46,500         2,497,980   

ICON PLC (a)(b)

     23,200         899,464   

Illumina, Inc. (a)(b)

     28,400         3,858,140   

Thermo Fisher Scientific, Inc. (b)

     29,900         3,408,600   
     

 

 

 
                13,728,252   

Pharmaceuticals — 36.5%

     

AbbVie, Inc. (b)(e)

     164,284         8,555,911   

Achaogen, Inc. (a)

     16,300         228,526   

Actavis PLC (a)(b)

     15,500         3,167,115   

Allergan, Inc. (b)

     26,700         4,427,928   

AstraZeneca PLC

     38,100         3,007,395   

Bayer AG

     55,500         7,716,805   

Bristol-Myers Squibb Co. (b)

     91,100         4,563,199   

Chugai Pharmaceutical Co. Ltd.

     55,200         1,393,186   

Eli Lilly & Co. (b)

     81,500         4,816,650   

Forest Laboratories, Inc. (a)(b)

     39,500         3,630,445   

Intra-Cellular Therapies, Inc. (a)

     66,181         1,105,223   

Johnson & Johnson (b)

     115,570         11,706,083   

Mallinckrodt PLC (a)(b)

     29,500         2,101,285   

Merck & Co., Inc. (b)

     152,800         8,947,968   

Mylan, Inc. (a)(b)

     58,700         2,980,786   

Novartis AG

     88,500         7,693,533   

Perrigo Co. PLC (b)

     26,500         3,838,790   

Pfizer, Inc. (b)

     242,200         7,576,016   

Phibro Animal Health Corp., Class A (a)

     21,000         370,860   

Roche Holding AG

     14,200         4,165,517   

Shire PLC — ADR (b)

     16,200         2,782,350   

Valeant Pharmaceuticals International, Inc. (a)(b)

     28,300         3,783,993   

Zoetis, Inc. (b)

     27,100         820,046   
     

 

 

 
                99,379,610   

Total Common Stocks — 96.3%

              262,212,256   
     
                  
 

 

See Notes to Financial Statements.

 

72    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   
     (Percentages shown are based on Net Assets)   

 

Corporate Bonds   

Par

(000)

     Value  

Biotechnology — 0.1%

     

Kite Pharma, Inc. (Acquired 4/23/2014,
cost $222,000), 6.00%, 10/24/16 (a)(d)

   $ 222       $ 222,000   
     
Preferred Stocks    Shares          

Biotechnology — 0.3%

     

ProNAi Therapeutics, Inc., Series D (Acquired 4/15/14, cost $270,735) (a)(d)

     386,764         270,735   

SAGE Therapeutics, Series C (Acquired
3/10/14, cost $631,483) (a)(d)

     149,128         631,483   
     

 

 

 
                902,218   

Total Preferred Stocks — 0.3%

              902,218   

Total Long-Term Investments

(Cost — $193,466,167) — 96.7%

              263,336,474   
     
                  
Short-Term Securities   

    

Shares

     Value  

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.03% (f)(g)

     8,880,290       $ 8,880,290   
     

Beneficial

Interest

(000)

         

BlackRock Liquidity Series, LLC Money Market Series, 0.18% (f)(g)(h)

   $ 287         287,000   

Total Short-Term Securities

(Cost — $9,167,290) — 3.4%

              9,167,290   

Total Investments Before Options Written

(Cost — $202,633,457) — 100.1%

              272,503,764   
     
Options Written                

(Premiums Received — $2,086,319) — (0.7)%

              (2,030,854

Total Investments Net of Options Written — 99.4%

  

     270,472,910   

Other Assets Less Liabilities — 0.6%

        1,710,550   
     

 

 

 

Net Assets — 100.0%

      $   272,183,460   
     

 

 

 
 
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) Restricted securities as to resale. As of April 30, 2014 the Trust held 1.0% of its net assets, with current market value of $2,754,396 and the original cost of $1,508,329, in these securities.

 

(e) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

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

 

(g) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2014, 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, 2013
    

Net

Activity

     Shares/Beneficial
Interest Held at
April 30, 2014
     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     1,144,662         7,735,628         8,880,290       $ 1,515   

BlackRock Liquidity Series, LLC Money Market Series

           $ 287,000       $ 287,000       $ 359   

 

(h) 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.

 

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 the investment advisor. 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, 2014 were as follows:

 

Description   

Put/

Call

    

Strike

Price

    

Expiration

Date

     Contracts     

Market

Value

 

Alexion Pharmaceuticals, Inc.

     Call         USD         170.00         5/02/14         160       $ (3,600

Johnson & Johnson

     Call         USD         98.00         5/05/14         30         (9,450

Medtronic, Inc.

     Call         USD         60.00         5/05/14         55         (220

Pfizer, Inc.

     Call         USD         31.00         5/05/14         250         (9,500

Pfizer, Inc.

     Call         USD         33.00         5/05/14         197         (197

Zoetis, Inc.

     Call         USD         31.50         5/05/14         94         (940

Biogen Idec, Inc.

     Call         USD         315.00         5/09/14         60         (3,300

Celgene Corp.

     Call         USD         147.00         5/09/14         178         (46,458

Medtronic, Inc.

     Call         USD         61.50         5/09/14         75         (525

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    73


Table of Contents
Schedule of Investments (continued)    BlackRock Health Sciences Trust (BME)

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (continued)

 

Description   

Put/

Call

    

Strike

Price

    

Expiration

Date

     Contracts     

Market

Value

 

Merck & Co., Inc.

     Call         USD         57.00         5/09/14         166       $ (30,212

UnitedHealth Group, Inc.

     Call         USD         83.00         5/09/14         120         (480

Abbott Laboratories

     Call         USD         39.00         5/19/14         195         (7,118

Abbott Laboratories

     Call         USD         40.00         5/19/14         195         (1,755

AbbVie, Inc.

     Call         USD         55.00         5/19/14         18         (270

ACADIA Pharmaceuticals, Inc.

     Call         USD         30.00         5/19/14         100         (2,500

ACADIA Pharmaceuticals, Inc.

     Call         USD         32.00         5/19/14         20         (300

Acceleron Pharma, Inc.

     Call         USD         45.00         5/19/14         40         (4,600

Agilent Technologies, Inc.

     Call         USD         62.50         5/19/14         196         (1,078

Agios Pharmaceuticals, Inc.

     Call         USD         50.00         5/19/14         18         (1,215

Alere, Inc.

     Call         USD         38.00         5/19/14         123         (3,075

Alkermes PLC

     Call         USD         47.00         5/19/14         200         (20,500

Allergan, Inc.

     Call         USD         140.00         5/19/14         94         (237,348

AmerisourceBergen Corp.

     Call         USD         67.50         5/19/14         35         (875

Amgen, Inc.

     Call         USD         125.00         5/19/14         65         (195

Baxter International, Inc.

     Call         USD         72.50         5/19/14         66         (7,095

Becton Dickinson and Co.

     Call         USD         115.00         5/19/14         21         (2,100

Becton Dickinson and Co.

     Call         USD         120.00         5/19/14         30         (375

Biogen Idec, Inc.

     Call         USD         315.00         5/19/14         56         (7,560

Boston Scientific Corp.

     Call         USD         14.00         5/19/14         459         (1,377

Bristol-Myers Squibb Co.

     Call         USD         52.50         5/19/14         319         (11,644

Cardinal Health, Inc.

     Call         USD         70.00         5/19/14         205         (25,112

CareFusion Corp.

     Call         USD         43.00         5/19/14         100         (2,500

Charles River Laboratories International, Inc.

     Call         USD         60.00         5/19/14         85         (850

The Cooper Cos., Inc.

     Call         USD         130.00         5/19/14         32         (11,520

Covidien PLC

     Call         USD         72.50         5/19/14         138         (6,210

DENTSPLY International, Inc.

     Call         USD         45.00         5/19/14         45         (3,712

Dyax Corp.

     Call         USD         10.00         5/19/14         100         (1,000

Edwards Lifesciences Corp.

     Call         USD         80.00         5/19/14         48         (13,200

Edwards Lifesciences Corp.

     Call         USD         82.50         5/19/14         60         (8,400

Eli Lilly & Co.

     Call         USD         60.00         5/19/14         285         (14,678

Forest Laboratories, Inc.

     Call         USD         95.00         5/19/14         138         (9,315

Gilead Sciences, Inc.

     Call         USD         82.50         5/19/14         84         (5,586

HCA Holdings, Inc.

     Call         USD         52.50         5/19/14         129         (12,578

ICON PLC

     Call         USD         50.00         5/19/14         80         (2,000

Illumina, Inc.

     Call         USD         170.00         5/19/14         120         (2,400

Incyte Corp. Ltd.

     Call         USD         60.00         5/19/14         57         (3,705

InterMune, Inc.

     Call         USD         33.00         5/19/14         59         (12,360

Isis Pharmaceuticals, Inc.

     Call         USD         50.00         5/19/14         75         (750

Johnson & Johnson

     Call         USD         100.00         5/19/14         300         (58,350

McKesson Corp.

     Call         USD         175.00         5/19/14         82         (11,070

Merck & Co., Inc.

     Call         USD         57.50         5/19/14         64         (11,200

Mylan, Inc.

     Call         USD         55.00         5/19/14         120         (6,780

Mylan, Inc.

     Call         USD         57.50         5/19/14         110         (2,860

Neurocrine Biosciences, Inc.

     Call         USD         19.00         5/19/14         210         (5,250

Pfizer, Inc.

     Call         USD         31.00         5/19/14         212         (13,038

Premier, Inc., Class A

     Call         USD         35.00         5/19/14         55         (825

Puma Biotechnology, Inc.

     Call         USD         135.00         5/19/14         26         (11,960

Seattle Genetics, Inc.

     Call         USD         55.00         5/19/14         130         (2,275

St. Jude Medical, Inc.

     Call         USD         65.00         5/19/14         115         (9,488

Stryker Corp.

     Call         USD         80.00         5/19/14         118         (4,130

 

See Notes to Financial Statements.

 

74    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (concluded)

 

Description   

Put/

Call

    

Strike

Price

    

Expiration

Date

     Contracts     

Market

Value

 

Universal Health Services, Inc., Class B

     Call         USD         80.00         5/19/14         135       $ (43,875

Varian Medical Systems, Inc.

     Call         USD         85.00         5/19/14         100         (1,750

WellPoint, Inc.

     Call         USD         97.50         5/19/14         55         (20,625

Zimmer Holdings, Inc.

     Call         USD         95.00         5/19/14         32         (8,800

Pfizer, Inc.

     Call         USD         31.00         5/23/14         212         (15,158

Regeneron Pharmaceuticals, Inc.

     Call         USD         312.50         5/23/14         40         (22,800

Regeneron Pharmaceuticals, Inc.

     Call         USD         325.00         5/23/14         4         (1,140

Express Scripts Holding Co.

     Call         USD         72.00         5/30/14         36         (306

HCA Holdings, Inc.

     Call         USD         53.50         5/30/14         135         (11,475

Mallinckrodt PLC

     Call         USD         72.00         5/30/14         104         (41,080

Medtronic, Inc.

     Call         USD         59.00         5/30/14         75         (8,550

Merck & Co., Inc.

     Call         USD         58.50         5/30/14         304         (46,056

St. Jude Medical, Inc.

     Call         USD         65.00         6/02/14         115         (15,781

Sigma-Aldrich Corp.

     Call         USD         97.15         6/04/14         50         (5,391

Gilead Sciences, Inc.

     Call         USD         77.00         6/06/14         85         (32,938

Johnson & Johnson

     Call         USD         101.00         6/06/14         75         (12,638

UnitedHealth Group, Inc.

     Call         USD         78.00         6/06/14         155         (8,448

AbbVie, Inc.

     Call         USD         50.00         6/23/14         556         (172,360

Acorda Therapeutics, Inc.

     Call         USD         38.00         6/23/14         150         (18,750

Becton Dickinson and Co.

     Call         USD         115.00         6/23/14         45         (7,762

CareFusion Corp.

     Call         USD         41.00         6/23/14         93         (5,580

Envision Healthcare Holdings, Inc.

     Call         USD         35.00         6/23/14         130         (15,275

InterMune, Inc.

     Call         USD         35.00         6/23/14         59         (16,078

Perrigo Co. PLC

     Call         USD         165.00         6/23/14         95         (13,775

Premier, Inc., Class A

     Call         USD         35.00         6/23/14         54         (1,350

Puma Biotechnology, Inc.

     Call         USD         125.00         6/23/14         30         (7,425

Seattle Genetics, Inc.

     Call         USD         45.00         6/23/14         132         (14,850

Shire PLC — ADR

     Call         USD         165.00         6/23/14         45         (63,675

Stryker Corp.

     Call         USD         85.00         6/23/14         119         (2,380

Team Health Holdings, Inc.

     Call         USD         50.00         6/23/14         100         (13,500

Thermo Fisher Scientific, Inc.

     Call         USD         120.00         6/23/14         104         (17,940

Valeant Pharmaceuticals International, Inc.

     Call         USD         145.00         6/23/14         110         (33,550

Zimmer Holdings, Inc.

     Call         USD         95.00         6/23/14         32         (12,160

Actavis PLC

     Call         USD         210.00         8/18/14         54         (60,480

Total

                  $ (1,462,665
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

BioMarin Pharmaceutical, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         80.00         5/05/14         9,100       $   

Covidien PLC

   Bank of America N.A.      Call         USD         70.75         5/05/14         15,200         (12,766

Bayer AG

   Credit Suisse International      Call         EUR         98.50         5/06/14         900         (3,151

Roche Holding AG

   Morgan Stanley & Co. International PLC      Call         CHF         267.51         5/06/14         5,000         (1,100

Chugai Pharmaceutical Co. Ltd.

   Citibank N.A.      Call         JPY         2,621.40         5/08/14         19,100         (4,317

PW Medtech Group Ltd.

   Bank of America N.A.      Call         HKD         3.83         5/08/14         162,500         (565

Charles River Laboratories International, Inc.

   Citibank N.A.      Call         USD         63.50         5/12/14         3,900           

AstraZeneca PLC

   Credit Suisse International      Call         GBP         42.04         5/15/14         6,300         (50,714

AstraZeneca PLC

   Morgan Stanley & Co. International PLC      Call         GBP         38.07         5/15/14         7,000         (102,972

Novartis AG

   Credit Suisse International      Call         CHF         74.44         5/21/14         15,550         (42,782

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    75


Table of Contents
Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (concluded)

 

Description    Counterparty   

Put/

Call

    

Strike

Price

    

Expiration

Date

     Contracts      Market
Value
 

BioMarin Pharmaceutical, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         80.00         5/22/14         9,100       $ (41

Intra-Cellular Therapies, Inc.

   UBS AG      Call         USD         16.91         5/23/14         23,100         (19,259

Karyopharm Therapeutics, Inc.

   UBS AG      Call         USD         34.25         5/23/14         9,400         (3,415

Charles River Laboratories International, Inc.

   Citibank N.A.      Call         USD         63.50         5/27/14         3,900         (41

Boston Scientific Corp.

   Morgan Stanley & Co. International PLC      Call         USD         13.79         5/28/14         25,000         (2,753

Boston Scientific Corp.

   Barclays Bank PLC      Call         USD         13.83         6/04/14         45,000         (2,980

Bayer AG

   Credit Suisse International      Call         EUR         93.80         6/06/14         19,400         (203,659

Novartis AG

   Goldman Sachs International      Call         CHF         74.65         6/06/14         15,500         (44,646

Actelion Ltd.

   UBS AG      Call         CHF         89.37         6/11/14         3,300         (9,435

Coloplast A/S, Class B

   Goldman Sachs International      Call         DKK         424.57         6/12/14         8,600         (52,130

Actelion Ltd.

   UBS AG      Call         CHF         89.37         6/25/14         3,300         (11,463

Total

                     $ (568,189
                    

 

 

 

 

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 or 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 fair value hierarchy classification 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, please refer to Note 2 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, 2014:

 

      Level 1      Level 2      Level 3      Total  

Assets:

           

Investments:

           

Long-Term Investments:

           

Common Stocks:

           

Biotechnology

   $ 63,715,947       $ 3,530,334               $ 67,246,281   

Chemicals

     1,395,045                         1,395,045   

Health Care Equipment & Supplies

     43,070,156         2,517,569                 45,587,725   

Health Care Providers & Services

     33,064,453                         33,064,453   

Health Care Technology

     1,810,890                         1,810,890   

Life Sciences Tools & Services

     13,728,252                         13,728,252   

Pharmaceuticals

     75,403,174         23,976,436                 99,379,610   

Corporate Bonds

                   $ 222,000         222,000   

Preferred Stocks

                     902,218         902,218   

Short-Term Securities

     8,880,290         287,000                 9,167,290   

Total

   $   241,068,207       $   30,311,339       $   1,124,218       $   272,503,764   
  

 

 

 

 

See Notes to Financial Statements.

 

76    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (concluded)    BlackRock Health Sciences Trust (BME)

 

      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (1,441,492   $ (589,362           $ (2,030,854

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

       

The carrying amount for certain of the Trust’s assets and/or liabilities approximates fair value for financial statement purposes. As of April 30, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash

   $ 22,182                     $ 22,182   

Foreign currency at value

     120,537                       120,537   

Cash collateral on exchange-traded options written

     1,892,100                       1,892,100   

Liabilities:

         

Collateral on securities loaned at value

          $ (287,000             (287,000

Total

   $ 2,034,819      $ (287,000           $ 1,747,819   
  

 

 

 

The Trust’s investments that are categorized as Level 3 were valued utilizing 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.

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, 2013, securities with a value of $3,620,423 were systematically fair valued due to significant market movements, but were not valued using systematic fair values as of April 30, 2014. Therefore, these securities were transferred from Level 2 to Level 1 during the period October 31, 2013 to April 30, 2014.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    77


Table of Contents
Schedule of Investments April 30, 2014 (Unaudited)      BlackRock International Growth and Income Trust (BGY)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Austria — 1.0%

     

Erste Group Bank AG

     304,601       $ 10,242,001   

Belgium — 1.7%

     

Anheuser-Busch InBev NV

     154,646         16,855,747   

Brazil — 0.8%

     

Banco Bradesco SA — ADR

     180,800         2,688,496   

Petroleo Brasileiro SA — ADR (a)

     376,000         5,218,880   
     

 

 

 
                7,907,376   

Canada — 3.3%

     

Gildan Activewear, Inc. (a)

     108,700         5,556,736   

MEG Energy Corp. (a)(b)

     299,500         10,782,601   

Suncor Energy, Inc.

     129,600         4,999,305   

Tourmaline Oil Corp. (a)(b)

     218,472         11,311,789   
     

 

 

 
                32,650,431   

China — 4.1%

     

Anhui Conch Cement Co. Ltd., Class H (c)

     2,802,940         10,465,482   

Baidu, Inc. — ADR (a)(b)

     45,720         7,034,022   

Beijing Enterprises Water Group Ltd.

     5,846,000         3,715,426   

China Cinda Asset Management Co. Ltd., Class H (b)

     10,010,000         5,048,224   

Great Wall Motor Co. Ltd., Class H

     994,000         4,500,145   

Ping An Insurance Group Co. of China Ltd., Class H

     1,281,000         9,507,746   
     

 

 

 
                40,271,045   

Denmark — 3.0%

     

Chr Hansen Holding A/S

     217,809         9,819,874   

ISS A/S (b)

     143,007         4,978,664   

Novo Nordisk A/S, Class B

     319,500         14,500,833   
     

 

 

 
                29,299,371   

Finland — 1.5%

     

Nokia OYJ (b)

     1,296,070         9,704,410   

Sanitec Corp. (b)

     438,669         5,056,589   
     

 

 

 
                14,760,999   

France — 7.4%

     

BNP Paribas SA

     112,199         8,431,125   

Publicis Groupe SA

     123,200         10,539,658   

Rexel SA

     440,176         11,114,322   

Schneider Electric SA

     106,600         10,006,633   

Societe Generale SA

     216,300         13,470,546   

Vivendi SA

     699,870         18,803,212   
     

 

 

 
                72,365,496   

Germany — 7.5%

     

Aixtron SE (b)

     402,776         6,412,871   

Bayer AG

     135,600         18,854,032   

Daimler AG

     181,600         16,906,778   

DMG MORI SEIKI AG

     129,154         4,069,826   

OSRAM Licht AG (b)

     227,496         11,943,378   

ProSiebenSat.1 Media AG

     219,800         9,620,163   

Telefonica Deutschland Holding AG

     587,200         4,885,169   
     

 

 

 
                72,692,217   

Greece — 0.8%

     

Alpha Bank AE (b)

     7,649,311         7,409,495   

Hong Kong — 2.0%

     

AIA Group Ltd.

     2,101,552         10,221,097   

ASM Pacific Technology Ltd.

     172,400         1,916,803   

Samsonite International SA

     2,411,100         7,661,035   
     

 

 

 
                19,798,935   

India — 1.0%

     

Tata Motors Ltd. — ADR (a)

     252,400         9,444,808   
Common Stocks    Shares      Value  

Indonesia — 1.2%

     

Global Mediacom Tbk PT

     23,331,202       $ 4,428,805   

Matahari Department Store Tbk PT (b)

     5,498,413         7,144,318   
     

 

 

 
                11,573,123   

Ireland — 5.8%

     

CRH PLC

     487,600         14,214,854   

Dalata Hotel Group PLC (b)

     1,128,668         4,556,637   

Green REIT PLC (b)

     9,321,118         15,517,955   

Kingspan Group PLC

     311,013         5,846,596   

Ryanair Holdings PLC — ADR (a)(b)

     167,500         8,957,900   

Shire PLC

     132,700         7,589,335   
     

 

 

 
                56,683,277   

Italy — 3.0%

     

Banca Generali SpA

     229,700         7,230,323   

Intesa Sanpaolo SpA (a)

     2,514,800         8,605,710   

Moncler SpA (b)

     276,500         4,868,806   

UniCredit SpA (a)

     912,951         8,156,776   
     

 

 

 
                28,861,615   

Japan — 12.6%

     

Calbee, Inc.

     313,400         7,675,978   

Kenedix Office Investment Corp. — REIT

     2,144         10,710,284   

LIXIL Group Corp.

     277,400         7,334,203   

Makita Corp.

     177,900         9,431,388   

Mitsui Osk Lines Ltd.

     1,254,000         4,183,430   

Nabtesco Corp.

     617,300         13,326,488   

Shinsei Bank Ltd.

     5,111,000         9,964,523   

SMC Corp.

     53,300         12,688,374   

SoftBank Corp.

     201,700         15,022,216   

Sumitomo Mitsui Financial Group, Inc.

     393,600         15,559,131   

Tokyo Tatemono Co. Ltd.

     1,057,500         8,433,350   

Yaskawa Electric Corp.

     712,200         8,030,525   
     

 

 

 
                122,359,890   

Malaysia — 0.2%

     

Genting Malaysia Bhd

     1,334,100         1,724,055   

Mexico — 1.0%

     

Cemex SAB de CV — ADR (a)(b)

     774,348         9,787,759   

Netherlands — 2.7%

     

Aalberts Industries NV

     215,052         7,163,757   

ING Groep NV (b)

     588,500         8,412,513   

Randstad Holding NV

     192,565         11,253,426   
     

 

 

 
                26,829,696   

New Zealand — 0.8%

     

Xero Ltd. (Acquired 10/15/13, cost $4,566,935) (b)(d)

     300,605         7,793,842   

Norway — 1.4%

     

Statoil ASA

     460,300         14,032,435   

Panama — 0.5%

     

Copa Holdings SA, Class A

     34,300         4,640,104   

Peru — 0.3%

     

Credicorp Ltd.

     17,400         2,596,950   

South Africa — 0.5%

     

Naspers Ltd., N Shares

     49,700         4,696,614   

South Korea — 0.9%

     

Hyundai Development Co.

     129,200         3,694,822   

NAVER Corp.

     7,100         5,112,829   
     

 

 

 
                8,807,651   

Spain — 2.6%

     

NH Hoteles SA (b)

     2,166,978         13,844,485   
 

 

See Notes to Financial Statements.

 

78    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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  

Spain (concluded)

     

Sacyr SA (b)(c)

     1,766,550       $ 11,635,202   
     

 

 

 
                25,479,687   

Sweden — 3.2%

     

Nordea Bank AB

     481,636         6,959,137   

Seamless Distribution AB (b)(c)

     392,670         1,977,344   

Skanska AB, B Shares

     335,240         7,696,876   

Svenska Cellulosa AB SCA, Class B

     509,150         14,313,757   
     

 

 

 
                30,947,114   

Switzerland — 10.0%

     

Actelion Ltd. (b)

     115,715         11,392,567   

Adecco SA

     146,200         12,273,789   

Novartis AG

     384,000         33,382,109   

Roche Holding AG

     105,023         30,808,108   

UBS AG

     480,753         10,054,411   
     

 

 

 
                97,910,984   

Taiwan — 1.1%

     

Epistar Corp.

     3,636,000         7,956,861   

Hermes Microvision Inc. — GDR (b)

     67,534         2,796,583   
     

 

 

 
                10,753,444   

Turkey — 0.6%

     

Turkiye Halk Bankasi AS

     836,059         5,582,833   

United Kingdom — 15.2%

     

AO World PLC (b)

     1,058,900         4,219,295   

APR Energy PLC (c)

     860,234         11,532,144   

AstraZeneca PLC

     250,100         19,741,459   

Babcock International Group PLC

     521,300         10,521,854   

Crest Nicholson Holdings PLC

     2,055,019         12,074,468   

DS Smith PLC

     1,918,749         10,225,065   

Foxtons Group PLC

     2,068,184         11,121,957   

Halma PLC

     782,300         7,432,413   

Hargreaves Lansdown PLC

     213,277         4,221,948   

Imperial Tobacco Group PLC

     239,300         10,341,157   

Metro Bank PLC, (Acquired 1/15/14,
cost $4,917,700) (b)(d)

     231,026         5,070,808   

Monitise PLC (b)

     6,767,500         7,657,097   

Nomad Holdings Ltd. (b)

     475,571         4,874,603   

Perform Group PLC (b)

     1,499,974         5,457,628   

Polypipe Group PLC (b)

     2,626,409         11,751,171   

Poundland Group PLC (b)

     334,400         1,961,977   

Rio Tinto PLC

     176,600         9,601,292   
     

 

 

 
                147,806,336   
Common Stocks    Shares      Value  

United States — 1.1%

     

Euronet Worldwide, Inc. (a)(b)(e)

     115,207       $ 5,298,370   

Schlumberger Ltd. (a)

     49,480         5,024,694   
     

 

 

 
                10,323,064   

Total Common Stocks — 98.8%

              962,888,394   
     
Investment Companies — 0.8%                

United Kingdom — 0.8%

     

Kennedy Wilson Europe Real Estate PLC (b)

     429,439         7,395,620   
     
Rights                

United Kingdom — 0.2%

     

Babcock International Group PLC, Expires
6/06/14 (b)

     204,307         1,379,800   
     
Warrants (f)                

United Kingdom — 0.0%

     

Nomad Holdings Ltd., Expires 4/10/17 (b)

     475,571         215,196   

Total Long-Term Investments

(Cost — $876,743,346) — 99.8%

              971,879,010   
     
Short-Term Securities    Beneficial
Interest
(000)
         

BlackRock Liquidity Series, LLC Money Market Series, 0.18% (g)(h)(i)

   $ 10,178         10,177,930   

Total Short-Term Securities

(Cost — $10,177,930) — 1.0%

              10,177,930   

Total Investments Before Options Written

(Cost — $886,921,276) — 100.8%

              982,056,940   
     
Options Written                

(Premiums Received — $12,221,364) — (1.3)%

              (12,305,555

Total Investments Net of Options Written — 99.5%

  

     969,751,385   

Other Assets Less Liabilities — 0.5%

        4,685,181   
     

 

 

 

Net Assets — 100.0%

      $   974,436,566   
     

 

 

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

 

(d) Restricted securities as to resale. As of April 30, 2014 the Trust held 1.3% of its net assets, with a current market value of $12,864,650 and its original cost of $9,484,635, in the security,.

 

(e) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(f) Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    79


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   

 

 

(g) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2014, 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, 2013

    

Net

Activity

   

Shares/Beneficial

Interest Held at

April 30, 2014

     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     22,346,730         (22,346,730           $ 4,500   

BlackRock Liquidity Series, LLC, Money Market Series

           $ 10,177,930      $ 10,177,930       $ 48,630   

 

(h) 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.

 

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

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows:

 

Description    Put/
Call
    

Strike

Price

    

Expiration

Date

     Contracts      Market
Value
 

Baidu, Inc. — ADR

     Call         USD         170.00         5/02/14         85       $ (340

Schlumberger Ltd.

     Call         USD         97.00         5/05/14         100         (45,000

Schlumberger Ltd.

     Call         USD         100.00         5/09/14         70         (14,735

Intesa Sanpaolo SpA

     Call         EUR         2.40         5/16/14         705         (94,507

UniCredit SpA

     Call         EUR         6.60         5/16/14         155         (26,356

UniCredit SpA

     Call         EUR         6.80         5/16/14         155         (12,950

UniCredit SpA

     Call         EUR         7.00         5/16/14         79         (4,669

Cemex SAB de CV — ADR

     Call         USD         12.50         5/19/14         1,650         (68,640

Euronet Worldwide, Inc.

     Call         USD         45.00         5/19/14         465         (80,213

Gildan Activewear, Inc.

     Call         CAD         56.00         5/19/14         305         (46,889

MEG Energy Corp.

     Call         CAD         38.00         5/19/14         397         (58,859

Petroleo Brasileiro SA — ADR

     Call         USD         15.00         5/19/14         1,035         (17,078

Ryanair Holdings PLC — ADR

     Call         USD         60.00         5/19/14         280         (19,600

Schlumberger Ltd.

     Call         USD         97.50         5/19/14         100         (43,500

Tata Motors Ltd. — ADR

     Call         USD         35.00         5/19/14         250         (67,500

Tata Motors Ltd. — ADR

     Call         USD         36.00         5/19/14         260         (52,650

Tata Motors Ltd. — ADR

     Call         USD         37.00         5/19/14         385         (52,938

Tourmaline Oil Corp.

     Call         CAD         52.00         5/19/14         616         (272,579

Baidu, Inc. — ADR

     Call         USD         170.00         5/30/14         89         (14,375

Intesa Sanpaolo SpA

     Call         EUR         2.50         6/20/14         705         (69,926

UniCredit SpA

     Call         EUR         6.80         6/20/14         56         (10,292

UniCredit SpA

     Call         EUR         7.00         6/20/14         56         (6,979

Baidu, Inc. — ADR

     Call         USD         175.00         6/23/14         82         (17,712

Cemex SAB de CV — ADR

     Call         USD         13.00         6/23/14         1,500         (57,750

Euronet Worldwide, Inc.

     Call         USD         45.00         6/23/14         180         (46,350

Gildan Activewear, Inc.

     Call         CAD         58.00         6/23/14         305         (32,001

Petroleo Brasileiro SA — ADR

     Call         USD         15.00         6/23/14         1,035         (43,470

Tata Motors Ltd. — ADR

     Call         USD         38.00         6/23/14         269         (46,403

Tata Motors Ltd. — ADR

     Call         USD         38.00         7/21/14         250         (53,125

Tourmaline Oil Corp.

     Call         CAD         54.00         7/21/14         610         (214,269

Total

                  $ (1,591,655
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty   

Put/

Call

    

Strike

Price

    

Expiration

Date

     Contracts     

Market

Value

 

Crest Nicholson Holdings PLC

   Morgan Stanley & Co. International PLC      Call         GBP         4.21         5/02/14         200,000       $ (3

MEG Energy Corp.

   Deutsche Bank AG      Call         CAD         32.50         5/02/14         68,800         (436,949

Ryanair Holdings PLC — ADR

   Morgan Stanley & Co. International PLC      Call         USD         58.55         5/02/14         25,400           

AstraZeneca PLC

   Credit Suisse International      Call         GBP         40.19         5/05/14         46,800         (518,594

 

See Notes to Financial Statements.

 

80    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

AstraZeneca PLC

   Goldman Sachs International      Call         GBP         40.28         5/05/14         12,600         $  (137,688

AstraZeneca PLC

   Goldman Sachs International      Call         GBP         41.33         5/05/14         25,000         (228,648

DMG MORI SEIKI AG

   Goldman Sachs International      Call         EUR         22.51         5/05/14         72,600         (45,652

DS Smith PLC

   Société Générale      Call         GBP         3.20         5/05/14         180,000         (5,738

Telefonica Deutschland Holding AG

   Deutsche Bank AG      Call         EUR         5.87         5/05/14         116,200         (21,608

UBS AG

   Morgan Stanley & Co. International PLC      Call         CHF         18.83         5/05/14         132,200         (11,689

Aalberts Industries NV

   Goldman Sachs International      Call         EUR         24.41         5/06/14         23,900         (2,827

Adecco SA

   Morgan Stanley & Co. International PLC      Call         CHF         74.08         5/06/14         20,400         (25,236

Bayer AG

   Credit Suisse International      Call         EUR         98.50         5/06/14         6,500         (22,758

Bayer AG

   Goldman Sachs International      Call         EUR         96.56         5/06/14         6,200         (34,741

ProSiebenSat.1 Media AG

   Morgan Stanley & Co. International PLC      Call         EUR         33.59         5/06/14         50,000         (2,281

Rexel SA

   Morgan Stanley & Co. International PLC      Call         EUR         18.99         5/06/14         46,000         (989

Rio Tinto PLC

   Credit Suisse International      Call         GBP         33.24         5/06/14         35,700         (5,809

Roche Holding AG

   Morgan Stanley & Co. International PLC      Call         CHF         267.51         5/06/14         59,000         (12,997

Societe Generale SA

   Goldman Sachs International      Call         EUR         48.34         5/06/14         43,800         (2,120

Chr Hansen Holding A/S

   Morgan Stanley & Co. International PLC      Call         DKK         221.00         5/07/14         31,000         (124,251

Daimler AG

   Morgan Stanley & Co. International PLC      Call         EUR         67.78         5/07/14         35,500         (47,183

Halma PLC

   Deutsche Bank AG      Call         GBP         6.28         5/07/14         40,000         (1

Hargreaves Lansdown PLC

   Morgan Stanley & Co. International PLC      Call         GBP         13.91         5/07/14         59,000         (1

Kingspan Group PLC

   Credit Suisse International      Call         EUR         14.76         5/07/14         13,000         (30

Novartis AG

   Deutsche Bank AG      Call         CHF         73.00         5/07/14         38,400         (154,316

OSRAM Licht AG

   Goldman Sachs International      Call         EUR         48.27         5/07/14         13,000         (1

Randstad Holding NV

   Goldman Sachs International      Call         EUR         44.48         5/07/14         29,300         (5,772

Statoil ASA

   Deutsche Bank AG      Call         NOK         166.73         5/07/14         64,750         (157,939

Svenska Cellulosa AB SCA, Class B

   Goldman Sachs International      Call         SEK         187.58         5/07/14         74,500         (5,184

Cemex SAB de CV — ADR

   Deutsche Bank AG      Call         USD         12.65         5/08/14         52,000         (10,421

Epistar Corp.

   Citibank N.A.      Call         TWD         72.81         5/08/14         853,000         (1,314

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         508,049.83         5/08/14         130         (13,506

Makita Corp.

   Bank of America N.A.      Call         JPY         5,865.00         5/08/14         97,800         (9,213

MEG Energy Corp.

   Morgan Stanley & Co. International PLC      Call         CAD         34.88         5/08/14         56,200         (235,212

Nabtesco Corp.

   Citibank N.A.      Call         JPY         2,552.70         5/08/14         111,600         (8

NAVER Corp.

   UBS AG      Call         KRW         820,910.00         5/08/14         2,500         (3,076

NH Hoteles SA

   Goldman Sachs International      Call         EUR         4.93         5/08/14         114,000         (3,114

Ping An Insurance Group Co. of China Ltd., Class H

   Morgan Stanley & Co. International PLC      Call         HKD         63.73         5/08/14         92,000         (25

Randstad Holding NV

   Morgan Stanley & Co. International PLC      Call         EUR         44.01         5/08/14         27,800         (9,603

Samsonite International SA

   Deutsche Bank AG      Call         HKD         21.36         5/08/14         477,000         (202,658

SMC Corp.

   Bank of America N.A.      Call         JPY         26,101.80         5/08/14         3,800         (1,389

SMC Corp.

   Bank of America N.A.      Call         JPY         28,747.30         5/08/14         5,300         (5

SMC Corp.

   UBS AG      Call         JPY         25,944.83         5/08/14         10,600         (5,079

SoftBank Corp.

   Citibank N.A.      Call         JPY         7,749.93         5/08/14         38,000         (44,219

SoftBank Corp.

   Morgan Stanley & Co. International PLC      Call         JPY         8,017.98         5/08/14         136,600         (54,878

UBS AG

   Goldman Sachs International      Call         CHF         18.92         5/08/14         132,200         (14,617

Ryanair Holdings PLC — ADR

   Morgan Stanley & Co. International PLC      Call         USD         56.45         5/12/14         14,700         (2,523

Aalberts Industries NV

   Morgan Stanley & Co. International PLC      Call         EUR         25.68         5/13/14         24,600         (573

Daimler AG

   Credit Suisse International      Call         EUR         70.98         5/13/14         51,200         (18,263

DS Smith PLC

   Morgan Stanley & Co. International PLC      Call         GBP         3.21         5/13/14         270,000         (20,517

ING Groep NV

   Goldman Sachs International      Call         EUR         10.95         5/13/14         123,600         (8,576

Monitise PLC

   Goldman Sachs International      Call         GBP         0.82         5/13/14         1,060,000         (665

OSRAM Licht AG

   Goldman Sachs International      Call         EUR         47.83         5/13/14         11,100         (5

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    81


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Statoil ASA

   Deutsche Bank AG      Call         NOK         166.73         5/13/14         64,750         $  (161,743

AIA Group Ltd.

   Deutsche Bank AG      Call         HKD         36.88         5/14/14         1,177,800         (138,509

Aixtron SE

   Deutsche Bank AG      Call         EUR         11.99         5/14/14         59,000         (9,348

Anhui Conch Cement Co. Ltd., Class H

   Citibank N.A.      Call         HKD         32.62         5/14/14         796,000         (4,915

ASM Pacific Technology Ltd.

   Goldman Sachs International      Call         HKD         81.20         5/14/14         94,800         (66,038

Babcock International Group PLC

   Morgan Stanley & Co. International PLC      Call         GBP         12.56         5/14/14         79,392         (7,938

Epistar Corp.

   Morgan Stanley & Co. International PLC      Call         TWD         76.36         5/14/14         1,185,000         (1,541

Halma PLC

   Morgan Stanley & Co. International PLC      Call         GBP         6.16         5/14/14         40,000         (246

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         526,802.87         5/14/14         80         (4,811

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         539,472.50         5/14/14         130         (4,142

Kingspan Group PLC

   Credit Suisse International      Call         EUR         14.76         5/14/14         13,000         (265

Nabtesco Corp.

   Goldman Sachs International      Call         JPY         2,442.35         5/14/14         126,600         (2,144

Novo Nordisk A/S, Class B

   Morgan Stanley & Co. International PLC      Call         DKK         246.54         5/14/14         29,700         (19,399

Ping An Insurance Group Co. of China Ltd., Class H

   Goldman Sachs International      Call         HKD         66.73         5/14/14         182,000         (32

Samsonite International SA

   Deutsche Bank AG      Call         HKD         24.15         5/14/14         200,100         (25,443

Shinsei Bank Ltd.

   Goldman Sachs International      Call         JPY         183.68         5/14/14         540,000         (88,579

Skanska AB, B Shares

   Goldman Sachs International      Call         SEK         147.85         5/14/14         121,000         (63,110

Sumitomo Mitsui Financial Group, Inc.

   Bank of America N.A.      Call         JPY         4,544.24         5/14/14         58,300         (1,204

Tokyo Tatemono Co. Ltd.

   Bank of America N.A.      Call         JPY         905.37         5/14/14         191,600         (6,846

AstraZeneca PLC

   Morgan Stanley & Co. International PLC      Call         GBP         38.07         5/15/14         44,000         (647,254

Banco Bradesco SA — ADR

   Bank of America N.A.      Call         USD         13.91         5/15/14         50,000         (50,011

Chr Hansen Holding A/S

   Morgan Stanley & Co. International PLC      Call         DKK         216.88         5/15/14         35,900         (171,644

CRH PLC

   Morgan Stanley & Co. International PLC      Call         GBP         17.07         5/15/14         77,000         (62,215

NH Hoteles SA

   Goldman Sachs International      Call         EUR         4.90         5/15/14         50,000         (3,545

Svenska Cellulosa AB SCA, Class B

   Goldman Sachs International      Call         SEK         187.58         5/15/14         74,500         (11,261

Telefonica Deutschland Holding AG

   Deutsche Bank AG      Call         EUR         5.84         5/15/14         116,000         (30,693

Telefonica Deutschland Holding AG

   Goldman Sachs International      Call         EUR         5.89         5/15/14         96,700         (20,242

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         539,472.50         5/20/14         130         (6,407

Samsonite International SA

   Deutsche Bank AG      Call         HKD         24.15         5/20/14         200,100         (28,854

Aalberts Industries NV

   Morgan Stanley & Co. International PLC      Call         EUR         25.04         5/21/14         21,700         (2,434

Anheuser-Busch InBev NV

   Morgan Stanley & Co. International PLC      Call         EUR         77.64         5/21/14         39,300         (101,549

Erste Group Bank AG

   Morgan Stanley & Co. International PLC      Call         EUR         25.50         5/21/14         83,500         (40,464

Halma PLC

   Deutsche Bank AG      Call         GBP         5.87         5/21/14         40,000         (1,612

ING Groep NV

   Credit Suisse International      Call         EUR         10.32         5/21/14         206,300         (83,283

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         526,802.87         5/21/14         80         (6,798

Kingspan Group PLC

   Goldman Sachs International      Call         EUR         14.72         5/21/14         10,000         (397

Nokia OYJ

   Goldman Sachs International      Call         EUR         5.67         5/21/14         260,000         (30,312

Novartis AG

   Credit Suisse International      Call         CHF         74.44         5/21/14         88,350         (243,072

OSRAM Licht AG

   Goldman Sachs International      Call         EUR         46.70         5/21/14         26,000         (23

Randstad Holding NV

   Deutsche Bank AG      Call         EUR         41.76         5/21/14         56,000         (127,809

Rexel SA

   Morgan Stanley & Co. International PLC      Call         EUR         18.70         5/21/14         46,000         (11,618

Rio Tinto PLC

   Credit Suisse International      Call         GBP         34.14         5/21/14         27,500         (7,679

Schneider Electric SA

   Deutsche Bank AG      Call         EUR         65.15         5/21/14         18,000         (62,707

Yaskawa Electric Corp.

   Goldman Sachs International      Call         JPY         1,471.60         5/21/14         200,000         (228

Aixtron SE

   Morgan Stanley & Co. International PLC      Call         EUR         12.26         5/22/14         24,300         (3,788

 

See Notes to Financial Statements.

 

82    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Copa Holdings SA, Class A

   Bank of America N.A.      Call         USD         150.39         5/22/14         9,400       $ (6,649

Nordea Bank AB

   Morgan Stanley & Co. International PLC      Call         SEK         90.98         5/22/14         97,000         (53,378

ProSiebenSat.1 Media AG

   Morgan Stanley & Co. International PLC      Call         EUR         32.43         5/22/14         73,000         (57,524

Vivendi SA

   JPMorgan Chase Bank N.A.      Call         EUR         20.24         5/22/14         147,000         (19,762

Calbee, Inc.

   Morgan Stanley & Co. International PLC      Call         JPY         2,505.28         5/27/14         86,000         (58,860

Cemex SAB de CV — ADR

   Deutsche Bank AG      Call         USD         12.65         5/27/14         52,000         (19,365

China Cinda Asset Management Co. Ltd., Class H

   Deutsche Bank AG      Call         HKD         4.33         5/27/14         1,010,000         (8,227

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         539,472.50         5/27/14         130         (9,061

Samsonite International SA

   Deutsche Bank AG      Call         HKD         24.15         5/27/14         200,100         (32,292

Beijing Enterprises Water Group Ltd.

   Morgan Stanley & Co. International PLC      Call         HKD         5.43         5/28/14         1,625,000         (17,107

Foxtons Group PLC

   Morgan Stanley & Co. International PLC      Call         GBP         3.75         5/28/14         25,000         (295

Hyundai Development Co.

   Morgan Stanley & Co. International PLC      Call         KRW         29,423.29         5/28/14         25,000         (32,333

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         526,802.87         5/28/14         80         (8,662

Kingspan Group PLC

   Goldman Sachs International      Call         EUR         14.72         5/28/14         10,000         (687

NH Hoteles SA

   UBS AG      Call         EUR         5.30         5/28/14         50,000         (1,458

Publicis Groupe SA

   Credit Suisse International      Call         EUR         64.07         5/28/14         9,300         (9,890

Sacyr SA

   Goldman Sachs International      Call         EUR         5.12         5/28/14         378,000         (47,971

Schneider Electric SA

   Morgan Stanley & Co. International PLC      Call         EUR         67.37         5/28/14         15,600         (22,573

Shinsei Bank Ltd.

   Bank of America N.A.      Call         JPY         205.64         5/28/14         683,600         (44,387

Skanska AB, B Shares

   Morgan Stanley & Co. International PLC      Call         SEK         152.70         5/28/14         67,000         (23,426

Svenska Cellulosa AB SCA, Class B

   Deutsche Bank AG      Call         SEK         193.29         5/28/14         93,000         (13,956

Crest Nicholson Holdings PLC

   Credit Suisse International      Call         GBP         3.71         5/29/14         50,000         (2,845

Nabtesco Corp.

   Citibank N.A.      Call         JPY         2,385.00         5/29/14         53,800         (8,344

Nokia OYJ

   Credit Suisse International      Call         EUR         5.69         6/02/14         170,000         (28,101

Babcock International Group PLC

   Goldman Sachs International      Call         GBP         12.09         6/03/14         135,000         (45,982

Crest Nicholson Holdings PLC

   Morgan Stanley & Co. International PLC      Call         GBP         3.72         6/03/14         36,000         (2,336

CRH PLC

   Morgan Stanley & Co. International PLC      Call         GBP         16.73         6/03/14         35,200         (50,458

Great Wall Motor Co. Ltd., Class H

   Goldman Sachs International      Call         HKD         42.58         6/03/14         273,000         (3,193

Halma PLC

   Morgan Stanley & Co. International PLC      Call         GBP         6.13         6/03/14         70,000         (1,155

Imperial Tobacco Group PLC

   Goldman Sachs International      Call         GBP         25.36         6/03/14         65,800         (84,166

Mitsui Osk Lines Ltd.

   Goldman Sachs International      Call         JPY         390.06         6/03/14         690,000         (15,021

Naspers Ltd., N Shares

   Deutsche Bank AG      Call         ZAR         1,066.56         6/03/14         11,600         (32,111

Naspers Ltd., N Shares

   Morgan Stanley & Co. International PLC      Call         ZAR         1,180.22         6/03/14         16,200         (12,428

NH Hoteles SA

   Morgan Stanley & Co. International PLC      Call         EUR         5.23         6/03/14         100,000         (3,914

Rexel SA

   Goldman Sachs International      Call         EUR         18.91         6/03/14         123,200         (35,863

Sacyr SA

   Credit Suisse International      Call         EUR         4.84         6/03/14         434,000         (120,876

Adecco SA

   Morgan Stanley & Co. International PLC      Call         CHF         71.19         6/04/14         30,000         (131,467

Banco Bradesco SA — ADR

   Bank of America N.A.      Call         USD         13.91         6/04/14         50,000         (57,144

Beijing Enterprises Water Group Ltd.

   Morgan Stanley & Co. International PLC      Call         HKD         5.51         6/04/14         1,625,000         (19,269

Calbee, Inc.

   Morgan Stanley & Co. International PLC      Call         JPY         2,517.56         6/04/14         86,000         (62,189

Daimler AG

   UBS AG      Call         EUR         67.85         6/04/14         15,100         (37,188

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         526,802.87         6/04/14         80         (10,214

Kenedix Office Investment Corp. — REIT

   Morgan Stanley & Co. International PLC      Call         JPY         539,472.50         6/04/14         130         (11,673

Novo Nordisk A/S, Class B

   Deutsche Bank AG      Call         DKK         243.60         6/04/14         53,500         (68,708

Novo Nordisk A/S, Class B

   Goldman Sachs International      Call         DKK         248.78         6/04/14         30,600         (26,910

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    83


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Samsonite International SA

   Deutsche Bank AG      Call         HKD         25.31         6/04/14         115,200       $ (12,302

UBS AG

   Goldman Sachs International      Call         CHF         18.34         6/04/14         185,200         (91,841

Yaskawa Electric Corp.

   Goldman Sachs International      Call         JPY         1,471.60         6/04/14         200,000         (1,861

Aalberts Industries NV

   Morgan Stanley & Co. International PLC      Call         EUR         25.53         6/05/14         24,300         (4,001

Anhui Conch Cement Co. Ltd., Class H

   Morgan Stanley & Co. International PLC      Call         HKD         31.76         6/05/14         387,000         (17,688

Babcock International Group PLC

   Goldman Sachs International      Call         GBP         12.26         6/05/14         39,696         (17,152

Babcock International Group PLC

   Morgan Stanley & Co. International PLC      Call         GBP         12.41         6/05/14         76,443         (26,555

Copa Holdings SA, Class A

   Bank of America N.A.      Call         USD         150.39         6/05/14         9,400         (9,203

Hyundai Development Co.

   Morgan Stanley & Co. International PLC      Call         KRW         29,708.95         6/05/14         25,000         (33,240

Nordea Bank AB

   Morgan Stanley & Co. International PLC      Call         SEK         90.98         6/05/14         97,000         (57,754

Nordea Bank AB

   UBS AG      Call         SEK         92.47         6/05/14         75,900         (31,898

Ryanair Holdings PLC — ADR

   Deutsche Bank AG      Call         USD         60.50         6/05/14         28,300         (8,909

Schneider Electric SA

   UBS AG      Call         EUR         66.46         6/05/14         26,000         (62,421

SMC Corp.

   UBS AG      Call         JPY         26,297.43         6/05/14         10,100         (32,772

Vivendi SA

   Goldman Sachs International      Call         EUR         20.15         6/05/14         112,600         (35,318

Bayer AG

   Credit Suisse International      Call         EUR         93.80         6/06/14         53,200         (558,488

Bayer AG

   Credit Suisse International      Call         EUR         99.52         6/06/14         10,000         (31,679

Novartis AG

   Goldman Sachs International      Call         CHF         74.65         6/06/14         88,400         (254,627

Rio Tinto PLC

   Deutsche Bank AG      Call         GBP         33.85         6/06/14         35,700         (22,574

Aixtron SE

   Deutsche Bank AG      Call         EUR         12.05         6/10/14         59,000         (22,495

Chr Hansen Holding A/S

   Goldman Sachs International      Call         DKK         236.23         6/10/14         36,000         (74,444

DS Smith PLC

   UBS AG      Call         GBP         3.10         6/10/14         270,000         (67,898

Halma PLC

   Goldman Sachs International      Call         GBP         5.97         6/10/14         70,000         (3,536

Kingspan Group PLC

   Morgan Stanley & Co. International PLC      Call         EUR         13.97         6/10/14         10,000         (4,495

NAVER Corp.

   Morgan Stanley & Co. International PLC      Call         KRW         780,000.00         6/10/14         1,405         (38,596

NH Hoteles SA

   Goldman Sachs International      Call         EUR         5.07         6/10/14         113,500         (10,824

Statoil ASA

   Morgan Stanley & Co. International PLC      Call         NOK         169.48         6/10/14         128,400         (253,549

Svenska Cellulosa AB SCA, Class B

   Deutsche Bank AG      Call         SEK         185.88         6/10/14         133,800         (66,974

Actelion Ltd.

   UBS AG      Call         CHF         89.37         6/11/14         32,400         (92,638

Nokia OYJ

   Credit Suisse International      Call         EUR         5.69         6/11/14         170,000         (24,453

OSRAM Licht AG

   Goldman Sachs International      Call         EUR         42.78         6/11/14         25,000         (5,917

Rexel SA

   Goldman Sachs International      Call         EUR         18.49         6/11/14         30,000         (16,137

Societe Generale SA

   Goldman Sachs International      Call         EUR         45.26         6/11/14         13,100         (16,855

Sumitomo Mitsui Financial Group, Inc.

   Morgan Stanley & Co. International PLC      Call         JPY         4,284.50         6/11/14         162,300         (89,184

Tokyo Tatemono Co. Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         849.74         6/11/14         200,000         (64,085

Nabtesco Corp.

   Citibank N.A.      Call         JPY         2,385.00         6/12/14         53,800         (13,940

Ping An Insurance Group Co. of China Ltd., Class H

   UBS AG      Call         HKD         61.76         6/12/14         443,500         (27,304

Shinsei Bank Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         207.00         6/12/14         474,000         (38,674

Aalberts Industries NV

   Deutsche Bank AG      Call         EUR         24.60         6/13/14         21,000         (12,132

BNP Paribas SA

   Bank of America N.A.      Call         EUR         57.02         6/13/14         62,800         (40,584

Novo Nordisk A/S, Class B

   Goldman Sachs International      Call         DKK         246.64         6/13/14         62,000         (58,166

Shire PLC

   Deutsche Bank AG      Call         GBP         33.17         6/13/14         36,500         (149,793

Aixtron SE

   Morgan Stanley & Co. International PLC      Call         EUR         12.26         6/17/14         24,300         (8,216

Crest Nicholson Holdings PLC

   Morgan Stanley & Co. International PLC      Call         GBP         3.56         6/17/14         50,000         (8,823

CRH PLC

   Goldman Sachs International      Call         GBP         17.45         6/17/14         161,000         (149,912

Foxtons Group PLC

   Bank of America N.A.      Call         GBP         3.25         6/17/14         25,000         (5,188

Great Wall Motor Co. Ltd., Class H

   Goldman Sachs International      Call         HKD         42.58         6/17/14         273,000         (7,446

Halma PLC

   Morgan Stanley & Co. International PLC      Call         GBP         6.00         6/17/14         35,000         (1,882

 

See Notes to Financial Statements.

 

84    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Kingspan Group PLC

   Goldman Sachs International      Call         EUR         14.15         6/17/14         10,000       $ (4,231

NH Hoteles SA

   Goldman Sachs International      Call         EUR         4.76         6/17/14         100,000         (32,209

NH Hoteles SA

   Morgan Stanley & Co. International PLC      Call         EUR         5.23         6/17/14         100,000         (7,671

Samsonite International SA

   Deutsche Bank AG      Call         HKD         24.82         6/17/14         350,700         (55,148

Suncor Energy, Inc.

   UBS AG      Call         CAD         41.78         6/17/14         35,500         (38,515

Anheuser-Busch InBev NV

   Morgan Stanley & Co. International PLC      Call         EUR         79.13         6/18/14         47,400         (106,427

Anhui Conch Cement Co. Ltd., Class H

   UBS AG      Call         HKD         33.07         6/18/14         387,000         (14,180

Hargreaves Lansdown PLC

   Goldman Sachs International      Call         GBP         12.17         6/18/14         59,000         (26,688

Monitise PLC

   Morgan Stanley & Co. International PLC      Call         GBP         0.66         6/18/14         1,060,000         (104,250

Credicorp Ltd.

   Morgan Stanley & Co. International PLC      Call         USD         145.42         6/19/14         9,600         (63,489

Vivendi SA

   Morgan Stanley & Co. International PLC      Call         EUR         19.79         6/24/14         128,500         (65,266

Actelion Ltd.

   UBS AG      Call         CHF         89.37         6/25/14         32,400         (112,542

Aixtron SE

   Goldman Sachs International      Call         EUR         11.60         6/25/14         59,100         (44,470

Imperial Tobacco Group PLC

   Goldman Sachs International      Call         GBP         25.36         6/25/14         65,800         (102,069

Tokyo Tatemono Co. Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         849.68         6/25/14         200,000         (78,134

Aalberts Industries NV

   Deutsche Bank AG      Call         EUR         24.60         6/26/14         21,000         (14,272

Chr Hansen Holding A/S

   Bank of America N.A.      Call         DKK         245.02         6/26/14         19,000         (28,012

DS Smith PLC

   Morgan Stanley & Co. International PLC      Call         GBP         3.22         6/26/14         178,000         (32,686

Halma PLC

   Morgan Stanley & Co. International PLC      Call         GBP         6.00         6/26/14         35,000         (2,405

NH Hoteles SA

   Morgan Stanley & Co. International PLC      Call         EUR         5.01         6/26/14         180,000         (30,212

Nokia OYJ

   UBS AG      Call         EUR         5.41         6/26/14         127,000         (43,038

OSRAM Licht AG

   Goldman Sachs International      Call         EUR         42.28         6/26/14         25,000         (10,522

Publicis Groupe SA

   Morgan Stanley & Co. International PLC      Call         EUR         61.48         6/26/14         58,000         (119,143

Shinsei Bank Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         205.92         6/26/14         556,000         (57,035

Adecco SA

   Deutsche Bank AG      Call         CHF         74.44         6/27/14         30,000         (90,630

Shire PLC

   Deutsche Bank AG      Call         GBP         33.17         6/27/14         36,500         (167,719

Suncor Energy, Inc.

   UBS AG      Call         CAD         41.78         6/30/14         35,500         (42,952

Kingspan Group PLC

   UBS AG      Call         EUR         13.16         7/01/14         12,000         (14,113

Halma PLC

   Morgan Stanley & Co. International PLC      Call         GBP         5.83         7/02/14         40,000         (5,931

NH Hoteles SA

   Goldman Sachs International      Call         EUR         4.55         7/08/14         80,000         (37,953

Halma PLC

   Credit Suisse International      Call         GBP         5.72         7/09/14         35,000         (7,868

Shinsei Bank Ltd.

   Morgan Stanley & Co. International PLC      Call         JPY         203.27         7/10/14         556,000         (71,252

Halma PLC

   UBS AG      Call         GBP         5.89         7/28/14         38,000         (6,411

Total

                     $ (10,713,900
                    

 

 

 

 

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 or 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 fair value hierarchy classification 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, 2014    85


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   

 

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, please refer to Note 2 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, 2014:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Austria

          $ 10,242,001              $ 10,242,001   

Belgium

            16,855,747                16,855,747   

Brazil

   $ 7,907,376                       7,907,376   

Canada

     32,650,431                       32,650,431   

China

     11,534,167        28,736,878                40,271,045   

Denmark

     4,978,664        24,320,707                29,299,371   

Finland

            14,760,999                14,760,999   

France

     11,114,322        61,251,174                72,365,496   

Germany

            72,692,217                72,692,217   

Greece

            7,409,495                7,409,495   

Hong Kong

     1,916,803        17,882,132                19,798,935   

India

     9,444,808                       9,444,808   

Indonesia

            11,573,123                11,573,123   

Ireland

     34,879,088        21,804,189                56,683,277   

Italy

     8,156,776        20,704,839                28,861,615   

Japan

     24,441,569        97,918,321                122,359,890   

Malaysia

     1,724,055                       1,724,055   

Mexico

     9,787,759                       9,787,759   

Netherlands

            26,829,696                26,829,696   

New Zealand

            7,793,842                7,793,842   

Norway

            14,032,435                14,032,435   

Panama

     4,640,104                       4,640,104   

Peru

     2,596,950                       2,596,950   

South Africa

            4,696,614                4,696,614   

South Korea

     3,694,822        5,112,829                8,807,651   

Spain

            25,479,687                25,479,687   

Sweden

     6,959,137        23,987,977                30,947,114   

Switzerland

            97,910,984                97,910,984   

Taiwan

     2,796,583        7,956,861                10,753,444   

Turkey

     5,582,833                       5,582,833   

United Kingdom

     51,871,286        90,864,242      $ 5,070,808         147,806,336   

United States

     10,323,064                       10,323,064   

Investment Companies

     7,395,620                       7,395,620   

Rights

     1,379,800                       1,379,800   

Warrants

     215,196                       215,196   

Short-Term Securities

            10,177,930                10,177,930   

Total

   $ 255,991,213      $ 720,994,919      $ 5,070,808       $ 982,056,940   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (1,365,973   $ (10,939,582           $ (12,305,555

 

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

         

 

See Notes to Financial Statements.

 

86    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (concluded)      BlackRock International Growth and Income Trust (BGY)   

 

The carrying amount for certain of the Trust’s assets and/or liabilities approximates fair value for financial statement purposes. As of April 30, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1      Level 2     Level 3      Total  

Assets:

          

Foreign currency at value

   $ 2,255,325                      $ 2,255,325   

Cash pledged as collateral for OTC derivatives

     7,744,504                        7,744,504   

Cash pledged as collateral for exchange-traded options written

     4,050,000                        4,050,000   

Liabilities:

          

Bank overdraft

           $ (3,767,000             (3,767,000

Collateral on securities loaned at value

             (10,177,930             (10,177,930

Total

   $ 14,049,829       $ (13,944,930           $ 104,899   
  

 

 

 

The Trust’s investments that are categorized as Level 3 were valued utilizing 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.

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, 2013, the Trust did not utilize the external pricing service model adjustments as significant market movements did not occur. As of April 30 2014, securities with a value of $119,208,229 were systematically fair valued due to significant market movements. Therefore, these securities were transferred from Level 1 to Level 2 during the period October 31, 2013 to April 30, 2014.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    87


Table of Contents
Schedule of Investments April 30, 2014 (Unaudited)      BlackRock Real Asset Equity Trust (BCF)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Chemicals — 15.7%

     

Agrium, Inc.

     67,900       $ 6,523,153   

Air Products & Chemicals, Inc. (a)

     88,600         10,412,272   

Celanese Corp., Series A (a)

     89,300         5,485,699   

The Dow Chemical Co.

     154,325         7,700,818   

EI du Pont de Nemours & Co. (a)

     347,800         23,413,894   

Monsanto Co. (a)

     64,500         7,140,150   

The Mosaic Co. (a)

     19,000         950,760   

Olin Corp.

     162,200         4,557,820   

Potash Corp. of Saskatchewan, Inc. (a)

     179,400         6,487,104   

Praxair, Inc. (a)

     157,600         20,574,680   
     

 

 

 
                93,246,350   

Containers & Packaging — 2.8%

     

MeadWestvaco Corp.

     419,800         16,401,586   

Energy Equipment & Services — 3.6%

     

Cameron International Corp. (a)(b)

     56,000         3,637,760   

Halliburton Co. (a)

     124,400         7,845,908   

Schlumberger Ltd. (a)

     99,983         10,153,274   
     

 

 

 
                21,636,942   

Machinery — 4.7%

     

Caterpillar, Inc. (a)

     199,500         21,027,300   

Deere & Co. (a)

     71,400         6,664,476   
     

 

 

 
                27,691,776   

Metals & Mining — 31.8%

     

African Rainbow Minerals Ltd.

     224,750         4,231,849   

Agnico Eagle Mines Ltd.

     48,400         1,430,704   

Alcoa, Inc. (a)

     250,650         3,376,256   

Allegheny Technologies, Inc. (a)

     35,000         1,442,000   

Alumina Ltd. (b)

     1,627,566         2,044,454   

Anglo American Platinum Ltd. (b)

     35,444         1,687,669   

Anglo American PLC

     77,945         2,083,702   

AngloGold Ashanti Ltd. — ADR (a)(b)

     166,165         3,007,588   

Barrick Gold Corp. (a)

     87,000         1,519,890   

BHP Billiton PLC

     648,600         21,056,284   

Carpenter Technology Corp. (a)

     36,366         2,283,785   

Cia de Minas Buenaventura SAA — ADR

     143,900         1,870,700   

Detour Gold Corp. (a)(b)

     129,200         1,286,047   

Dominion Diamond Corp. (a)(b)

     126,700         1,591,770   

Eldorado Gold Corp.

     409,900         2,498,182   

First Quantum Minerals Ltd. (a)

     484,600         9,651,766   

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

     108,400         3,725,708   

Fresnillo PLC

     475,000         6,849,448   

Glencore Xstrata PLC

     3,270,868         17,648,759   

Goldcorp, Inc.

     216,950         5,363,004   

Goldcorp, Inc.

     80,000         1,975,822   

Iluka Resources Ltd.

     812,686         6,751,615   

Impala Platinum Holdings Ltd.

     130,000         1,465,527   

Industrias Penoles SAB de CV

     292,531         6,810,649   

Jiangxi Copper Co. Ltd., Class H

     1,339,500         2,215,934   

Kazakhmys PLC (b)

     444,011         1,784,950   

Kinross Gold Corp.

     314,024         1,274,937   

Lundin Mining Corp. (a)(b)

     796,600         4,070,033   

Minsur SA

     3,846,986         2,439,051   

MMC Norilsk Nickel OJSC — ADR

     68,120         1,231,553   

Nevsun Resources Ltd.

     978,250         3,543,317   

New Gold, Inc. (b)

     284,900         1,440,031   

Newcrest Mining Ltd. (b)

     314,085         3,063,317   

OZ Minerals Ltd.

     381,759         1,313,837   

Platinum Group Metals Ltd. (b)(c)

     888,518         916,040   

Randgold Resources Ltd. — ADR (a)

     38,341         3,069,964   

Rio Tinto PLC

     381,629         20,748,195   

Silver Wheaton Corp.

     80,000         1,776,000   
Common Stocks    Shares      Value  

Metals & Mining (concluded)

     

Southern Copper Corp. (a)

     68,806       $ 2,073,813   

Teck Resources Ltd., Class B (a)

     330,203         7,525,634   

United States Steel Corp. (a)

     38,200         993,964   

Vale SA — ADR (a)

     493,983         6,530,455   

Vedanta Resources PLC

     390,288         6,249,741   

Western Areas Ltd.

     879,500         3,394,882   

Zijin Mining Group Co Ltd., Class H

     5,225,731         1,276,727   
     

 

 

 
                188,585,553   

Oil, Gas & Consumable Fuels — 32.3%

     

Anadarko Petroleum Corp. (a)

     92,200         9,129,644   

BG Group PLC

     347,000         7,019,541   

BP PLC

     1,143,839         9,657,516   

Cairn Energy PLC (b)

     498,000         1,551,150   

Canadian Natural Resources Ltd. (a)

     107,000         4,359,856   

Canadian Oil Sands Ltd. (a)

     81,704         1,771,168   

Caracal Energy, Inc. (b)

     275,700         2,527,607   

Chevron Corp. (a)(d)

     177,800         22,317,456   

Cimarex Energy Co. (a)

     36,000         4,288,320   

ConocoPhillips (a)

     156,300         11,614,653   

CONSOL Energy, Inc. (a)

     63,579         2,829,901   

Devon Energy Corp. (a)

     42,000         2,940,000   

Enbridge, Inc. (a)

     59,800         2,885,655   

Encana Corp. (a)

     191,000         4,424,515   

EOG Resources, Inc. (a)

     70,000         6,860,000   

Exxon Mobil Corp. (a)(d)

     210,800         21,588,028   

Imperial Oil Ltd. (a)

     52,000         2,539,154   

Kosmos Energy Ltd. (b)

     216,570         2,364,944   

Murphy Oil Corp.

     33,500         2,124,905   

Noble Energy, Inc. (a)

     101,000         7,249,780   

Oil Search Ltd.

     585,197         4,848,349   

Phillips 66 (a)

     49,400         4,111,068   

Pioneer Natural Resources Co. (a)

     28,000         5,411,560   

Range Resources Corp. (a)

     36,000         3,256,200   

Royal Dutch Shell PLC — ADR

     287,400         22,629,876   

Southwestern Energy Co. (a)(b)

     67,500         3,231,900   

Statoil ASA

     198,451         6,049,860   

Total SA

     94,700         6,775,224   

TransCanada Corp. (a)

     115,400         5,378,069   
     

 

 

 
                191,735,899   

Paper & Forest Products — 3.8%

     

Fibria Celulose SA — ADR (b)

     238,100         2,364,333   

International Paper Co. (a)

     341,900         15,949,635   

Mondi PLC

     237,512         3,948,360   
     

 

 

 
                22,262,328   

Real Estate Investment Trusts (REITs) — 2.2%

     

Weyerhaeuser Co. (a)

     439,200         13,110,120   

Total Long-Term Investments

(Cost — $478,206,377) — 96.9%

              574,670,554   
     
                  
 

 

See Notes to Financial Statements.

 

88    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)     

 

BlackRock Real Asset Equity Trust (BCF)

(Percentages shown are based on Net Assets)

  

  

 

 

Short-Term Securities

  Shares     Value  

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.03% (e)(f)

    24,861,572      $ 24,861,572   
     Beneficial
Interest
(000)
        

BlackRock Liquidity Series, LLC Money Market
Series, 0.18% (e)(f)(g)

  $ 71        70,955   

Total Short-Term Securities

(Cost — $ 24,932,527) — 4.2%

            24,932,527   

Total Investments Before Options Written

(Cost — $ 503,138,904) — 101.1%

            599,603,081   
   
                
Options Written          Value  

(Premiums Received — $4,432,487) — (1.0)%

        $ (6,182,281

Total Investments Net of Options Written — 100.1%

        593,420,800   

Liabilities in Excess of Other Assets — (0.1)%

        (482,297
     

 

 

 

Net Assets — 100.0%

      $ 592,938,503   
     

 

 

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

 

(d) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

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

 

(f) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2014, 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, 2013
    

Net

Activity

     Shares/Beneficial
Interest Held at
April 30, 2014
     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     21,163,179         3,698,393         24,861,572       $ 4,174   

BlackRock Liquidity Series, LLC, Money Market Series

           $ 70,955       $ 70,955       $ 161   

 

(g) 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.

 

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 the investment advisor. 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, 2014 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

EI du Pont de Nemours & Co.

     Call         USD         67.00         5/02/14         340       $ (17,510

EOG Resources, Inc.

     Call         USD         100.00         5/02/14         76         (1,748

Exxon Mobil Corp.

     Call         USD         94.00         5/02/14         252         (204,120

Schlumberger Ltd.

     Call         USD         91.00         5/02/14         87         (88,522

Chevron Corp.

     Call         USD         120.00         5/05/14         82         (46,945

ConocoPhillips

     Call         USD         68.50         5/05/14         326         (197,230

Deere & Co.

     Call         USD         89.00         5/05/14         249         (108,905

Schlumberger Ltd.

     Call         USD         93.00         5/05/14         87         (73,732

Caterpillar, Inc.

     Call         USD         105.00         5/09/14         100         (13,750

EI du Pont de Nemours & Co.

     Call         USD         67.00         5/09/14         340         (26,860

EOG Resources, Inc.

     Call         USD         100.00         5/09/14         111         (20,702

EOG Resources, Inc.

     Call         USD         102.00         5/09/14         58         (6,989

The Mosaic Co.

     Call         USD         50.00         5/09/14         17         (1,556

Potash Corp. of Saskatchewan, Inc.

     Call         USD         35.50         5/09/14         317         (27,104

Air Products & Chemicals, Inc.

     Call         USD         120.00         5/19/14         155         (18,600

Alcoa, Inc.

     Call         USD         12.00         5/19/14         439         (65,192

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    89


Table of Contents
Schedule of Investments (continued)      BlackRock Real Asset Equity Trust (BCF)   

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (continued)

 

Description    Put/
Call
    

Strike

Price

    

Expiration

Date

     Contracts     

Market

Value

 

Allegheny Technologies, Inc.

     Call         USD         42.50         5/19/14         131       $ (5,240

Anadarko Petroleum Corp.

     Call         USD         87.50         5/19/14         180         (207,450

AngloGold Ashanti Ltd. — ADR

     Call         USD         19.00         5/19/14         290         (8,700

Cameron International Corp.

     Call         USD         65.00         5/19/14         196         (22,050

Canadian Natural Resources Ltd.

     Call         CAD         46.00         5/19/14         188         (6,175

Canadian Oil Sands Ltd.

     Call         CAD         23.00         5/19/14         240         (19,379

Carpenter Technology Corp.

     Call         USD         65.00         5/19/14         63         (2,835

Caterpillar, Inc.

     Call         USD         105.00         5/19/14         417         (70,682

Cimarex Energy Co.

     Call         USD         125.00         5/19/14         50         (7,625

ConocoPhillips

     Call         USD         75.00         5/19/14         326         (21,679

CONSOL Energy, Inc.

     Call         USD         43.00         5/19/14         111         (20,868

Detour Gold Corp.

     Call         CAD         11.50         5/19/14         220         (5,520

Detour Gold Corp.

     Call         CAD         12.00         5/19/14         230         (3,148

Devon Energy Corp.

     Call         USD         72.50         5/19/14         147         (8,820

Dominion Diamond Corp.

     Call         CAD         14.00         5/19/14         220         (3,613

EI du Pont de Nemours & Co.

     Call         USD         70.00         5/19/14         305         (1,830

Enbridge, Inc.

     Call         CAD         52.00         5/19/14         161         (16,966

Encana Corp.

     Call         CAD         26.00         5/19/14         334         (12,342

Exxon Mobil Corp.

     Call         USD         100.00         5/19/14         199         (54,426

First Quantum Minerals Ltd.

     Call         CAD         20.00         5/19/14         848         (147,774

First Quantum Minerals Ltd.

     Call         CAD         21.00         5/19/14         848         (82,785

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         34.00         5/19/14         142         (12,212

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         35.00         5/19/14         135         (5,062

Halliburton Co.

     Call         USD         62.50         5/19/14         310         (46,810

Imperial Oil Ltd.

     Call         CAD         50.00         5/19/14         91         (29,682

Imperial Oil Ltd.

     Call         CAD         52.00         5/19/14         91         (14,529

Lundin Mining Corp.

     Call         CAD         5.00         5/19/14         425         (23,265

Noble Energy, Inc.

     Call         USD         75.00         5/19/14         122         (3,660

Phillips 66

     Call         USD         80.00         5/19/14         172         (62,780

Pioneer Natural Resources Co.

     Call         USD         195.00         5/19/14         49         (24,745

Potash Corp. of Saskatchewan, Inc.

     Call         USD         36.00         5/19/14         310         (21,080

Praxair, Inc.

     Call         USD         132.00         5/19/14         551         (52,389

Randgold Resources Ltd. — ADR

     Call         USD         82.50         5/19/14         70         (8,225

Range Resources Corp.

     Call         USD         92.50         5/19/14         63         (6,615

Range Resources Corp.

     Call         USD         95.00         5/19/14         63         (2,835

Schlumberger Ltd.

     Call         USD         92.50         5/19/14         175         (159,688

Southern Copper Corp.

     Call         USD         31.00         5/19/14         120         (3,300

Southwestern Energy Co.

     Call         USD         47.00         5/19/14         217         (38,192

Teck Resources Ltd., Class B

     Call         CAD         27.00         5/19/14         365         (1,499

TransCanada Corp.

     Call         CAD         52.00         5/19/14         470         (7,933

United States Steel Corp.

     Call         USD         28.00         5/19/14         133         (1,729

Vale SA — ADR

     Call         USD         14.00         5/19/14         864         (9,936

Monsanto Co.

     Call         USD         112.00         5/22/14         112         (15,096

Barrick Gold Corp.

     Call         USD         19.50         5/23/14         304         (3,040

Caterpillar, Inc.

     Call         USD         103.00         5/23/14         980         (320,947

Chevron Corp.

     Call         USD         123.00         5/23/14         160         (53,200

EI du Pont de Nemours & Co.

     Call         USD         68.50         5/23/14         250         (8,125

The Mosaic Co.

     Call         USD         49.50         5/23/14         49         (7,056

Chevron Corp.

     Call         USD         123.00         5/30/14         160         (55,200

Exxon Mobil Corp.

     Call         USD         101.00         5/30/14         143         (30,459

Anadarko Petroleum Corp.

     Call         USD         100.00         6/04/14         143         (37,988

 

See Notes to Financial Statements.

 

90    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock Real Asset Equity Trust (BCF)   

 

Ÿ  

Exchange-Traded options written as of April 30, 2014 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

Chevron Corp.

     Call         USD         125.00         6/06/14         110       $ (24,750

Exxon Mobil Corp.

     Call         USD         101.00         6/06/14         143         (31,818

Halliburton Co.

     Call         USD         64.50         6/06/14         125         (13,875

Monsanto Co.

     Call         USD         115.00         6/10/14         113         (11,184

Air Products & Chemicals, Inc.

     Call         USD         125.00         6/23/14         155         (18,988

Alcoa, Inc.

     Call         USD         13.00         6/23/14         439         (35,120

Allegheny Technologies, Inc.

     Call         USD         40.00         6/23/14         131         (29,148

Canadian Oil Sands Ltd.

     Call         CAD         25.00         6/23/14         250         (2,737

Carpenter Technology Corp.

     Call         USD         65.00         6/23/14         63         (7,560

Celanese Corp., Series A

     Call         USD         61.00         6/23/14         312         (57,720

Chevron Corp.

     Call         USD         125.00         6/23/14         110         (27,555

Cimarex Energy Co.

     Call         USD         120.00         6/23/14         76         (41,420

Encana Corp.

     Call         CAD         26.00         6/23/14         334         (20,569

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         34.00         6/23/14         100         (13,850

International Paper Co.

     Call         USD         46.00         6/23/14         601         (83,238

Pioneer Natural Resources Co.

     Call         USD         205.00         6/23/14         49         (21,560

Randgold Resources Ltd. — ADR

     Call         USD         82.50         6/23/14         70         (18,025

Teck Resources Ltd., Class B

     Call         CAD         26.00         6/23/14         420         (17,819

Vale SA — ADR

     Call         USD         14.00         6/23/14         864         (28,512

Weyerhaeuser Co.

     Call         USD         30.00         6/23/14         385         (21,175

CONSOL Energy, Inc.

     Call         USD         44.00         7/21/14         111         (26,529

Total

                  $ (3,269,801
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         74.28         5/02/14         6,300       $ (28,082

The Dow Chemical Co.

   UBS AG      Call         USD         50.73         5/05/14         54,000         (9,013

Kosmos Energy Ltd.

   Morgan Stanley & Co. International PLC      Call         USD         11.15         5/05/14         20,700         (789

MeadWestvaco Corp.

   Citibank N.A.      Call         USD         36.42         5/05/14         63,500         (168,035

African Rainbow Minerals Ltd.

   Goldman Sachs International      Call         ZAR         204.27         5/06/14         36,000         (3,300

BG Group PLC

   Credit Suisse International      Call         GBP         11.22         5/06/14         57,500         (74,763

BP PLC

   Morgan Stanley & Co. International PLC      Call         GBP         4.79         5/06/14         160,000         (57,634

Fresnillo PLC

   Deutsche Bank AG      Call         GBP         9.46         5/06/14         125,598         (1,269

Mining and Metallurgical Co. Norilsk Nickel OJSC

   Goldman Sachs International      Call         USD         17.37         5/06/14         23,800         (17,011

Rio Tinto PLC

   Credit Suisse International      Call         GBP         33.24         5/06/14         51,000         (8,299

Eldorado Gold Corp.

   Morgan Stanley & Co. International PLC      Call         CAD         7.75         5/07/14         71,700         (24

Kosmos Energy Ltd.

   Morgan Stanley & Co. International PLC      Call         USD         11.09         5/07/14         21,500         (3,216

Noble Energy, Inc.

   Citibank N.A.      Call         USD         70.00         5/07/14         23,200         (44,756

Statoil ASA

   Deutsche Bank AG      Call         NOK         166.73         5/07/14         15,600         (38,052

Total SA

   Goldman Sachs International      Call         EUR         48.11         5/07/14         16,500         (79,595

BHP Billiton PLC

   Morgan Stanley & Co. International PLC      Call         GBP         19.45         5/08/14         113,500         (27,491

Caracal Energy, Inc.

   Credit Suisse International      Call         GBP         3.74         5/08/14         10,000         (28,479

Oil Search Ltd.

   Goldman Sachs International      Call         AUD         8.41         5/08/14         114,600         (55,258

Western Areas Ltd.

   Deutsche Bank AG      Call         AUD         3.54         5/08/14         307,800         (177,062

International Paper Co.

   Credit Suisse International      Call         USD         45.73         5/12/14         59,500         (67,765

Agrium, Inc.

   Credit Suisse International      Call         USD         97.00         5/13/14         11,800         (13,179

Impala Platinum Holdings Ltd.

   Goldman Sachs International      Call         ZAR         121.10         5/13/14         130,000         (26,045

Statoil ASA

   Deutsche Bank AG      Call         NOK         166.73         5/13/14         15,600         (38,968

Total SA

   Goldman Sachs International      Call         EUR         48.11         5/13/14         16,500         (80,895

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    91


Table of Contents
Schedule of Investments (continued)      BlackRock Real Asset Equity Trust (BCF)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Alumina Ltd.

   Deutsche Bank AG      Call         AUD         1.17         5/14/14         569,600       $ (101,049

Jiangxi Copper Co. Ltd., Class H

   Goldman Sachs International      Call         HKD         12.46         5/14/14         469,000         (32,524

MeadWestvaco Corp.

   Citibank N.A.      Call         USD         36.42         5/14/14         63,500         (168,021

Weyerhaeuser Co.

   Citibank N.A.      Call         USD         29.77         5/14/14         76,700         (22,343

Zijin Mining Group Co Ltd., Class H

   Morgan Stanley & Co. International PLC      Call         HKD         1.67         5/14/14         1,830,000         (54,214

Murphy Oil Corp.

   Citibank N.A.      Call         USD         63.35         5/15/14         6,000         (6,956

Olin Corp.

   Credit Suisse International      Call         USD         27.93         5/15/14         27,100         (14,985

Minsur SA

   Citibank N.A.      Call         PEN         1.60         5/20/14         320,000         (20,576

Deere & Co.

   Citibank N.A.      Call         USD         92.00         5/21/14         28,600         (72,019

Eldorado Gold Corp.

   Morgan Stanley & Co. International PLC      Call         CAD         7.75         5/21/14         71,700         (1,152

Vedanta Resources PLC

   Morgan Stanley & Co. International PLC      Call         GBP         9.17         5/21/14         63,600         (51,271

Agrium, Inc.

   Credit Suisse International      Call         USD         97.00         5/27/14         11,800         (21,083

Canadian Natural Resources Ltd.

   Citibank N.A.      Call         CAD         44.53         5/28/14         9,300         (10,344

Minsur SA

   UBS AG      Call         PEN         1.65         5/28/14         400,000         (20,700

Statoil ASA

   UBS AG      Call         NOK         169.92         5/28/14         40,350         (77,222

Murphy Oil Corp.

   Citibank N.A.      Call         USD         63.35         5/29/14         6,000         (9,914

Kazakhmys PLC

   Morgan Stanley & Co. International PLC      Call         GBP         2.80         5/30/14         108,000         (5,868

BHP Billiton PLC

   Morgan Stanley & Co. International PLC      Call         GBP         19.39         6/03/14         113,500         (76,675

Glencore Xstrata PLC

   Deutsche Bank AG      Call         GBP         3.20         6/03/14         615,000         (67,842

Mondi PLC

   Morgan Stanley & Co. International PLC      Call         GBP         10.16         6/03/14         83,000         (26,965

Statoil ASA

   UBS AG      Call         NOK         169.92         6/03/14         40,350         (77,527

MeadWestvaco Corp.

   Goldman Sachs International      Call         USD         38.50         6/04/14         19,900         (19,888

Southwestern Energy Co.

   Goldman Sachs International      Call         USD         49.38         6/04/14         2,000         (1,779

Glencore Xstrata PLC

   Deutsche Bank AG      Call         GBP         3.21         6/05/14         615,000         (65,769

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.24         6/05/14         56,800         (176,779

Lundin Mining Corp.

   UBS AG      Call         CAD         5.43         6/06/14         118,000         (35,895

Rio Tinto PLC

   Deutsche Bank AG      Call         GBP         33.85         6/06/14         82,600         (52,231

Olin Corp.

   Citibank N.A.      Call         USD         28.10         6/09/14         29,600         (24,966

Anglo American PLC

   Credit Suisse International      Call         GBP         15.67         6/10/14         27,200         (34,484

Iluka Resources Ltd.

   Morgan Stanley & Co. International PLC      Call         AUD         10.12         6/11/14         284,400         (13,032

Kazakhmys PLC

   Credit Suisse International      Call         GBP         2.47         6/12/14         47,000         (11,521

Newcrest Mining Ltd.

   UBS AG      Call         AUD         10.84         6/12/14         109,900         (51,457

Oil Search Ltd.

   UBS AG      Call         AUD         8.73         6/12/14         90,200         (30,235

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.62         6/12/14         18,700         (55,641

BP PLC

   Deutsche Bank AG      Call         GBP         5.10         6/13/14         240,000         (14,389

BG Group PLC

   Goldman Sachs International      Call         GBP         11.92         6/17/14         64,000         (53,533

Canadian Natural Resources Ltd.

   Citibank N.A.      Call         CAD         44.53         6/17/14         9,300         (12,672

Fresnillo PLC

   Bank of America N.A.      Call         GBP         8.71         6/17/14         41,200         (29,117

OZ Minerals Ltd.

   UBS AG      Call         AUD         3.94         6/17/14         133,600         (15,688

Anglo American Platinum Ltd.

   Bank of America N.A.      Call         ZAR         511.33         6/18/14         12,400         (23,511

Kosmos Energy Ltd.

   Morgan Stanley & Co. International PLC      Call         USD         11.00         6/18/14         33,500         (18,265

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.62         6/18/14         18,800         (57,828

Vedanta Resources PLC

   Bank of America N.A.      Call         GBP         9.58         6/18/14         73,000         (46,870

Enbridge, Inc.

   Deutsche Bank AG      Call         CAD         53.00         6/21/14         2,400         (1,708

African Rainbow Minerals Ltd.

   Deutsche Bank AG      Call         ZAR         198.34         6/26/14         42,000         (32,416

Lundin Mining Corp.

   UBS AG      Call         CAD         5.43         6/27/14         118,000         (42,408

Enbridge, Inc.

   Deutsche Bank AG      Call         CAD         53.00         7/09/14         2,400         (2,168

Total

                     $ (2,912,480
                    

 

 

 

 

See Notes to Financial Statements.

 

92    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock Real Asset Equity Trust (BCF)   

 

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 or 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 fair value hierarchy classification 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, please refer to Note 2 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, 2014:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Chemicals

   $ 93,246,350                     $ 93,246,350   

Containers & Packaging

     16,401,586                       16,401,586   

Energy Equipment & Services

     21,636,942                       21,636,942   

Machinery

     27,691,776                       27,691,776   

Metals & Mining

     85,272,060      $ 103,313,493                188,585,553   

Oil, Gas & Consumable Fuels

     155,834,259        35,901,640                191,735,899   

Paper & Forest Products

     18,313,968        3,948,360                22,262,328   

Real Estate Investment Trusts (REITs)

     13,110,120                       13,110,120   

Short-Term Securities

     24,861,572        70,955                24,932,527   

Total

   $ 456,368,633      $ 143,234,448              $ 599,603,081   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (2,986,519   $ (3,195,762           $ (6,182,281

 

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

         

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    93


Table of Contents
Schedule of Investments (concluded)      BlackRock Real Asset Equity Trust (BCF)   

 

The carrying amount for certain of the Trust’s assets and/or liabilities approximates fair value for financial statement purposes. As of April 30, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1      Level 2     Level 3      Total  

Assets:

          

Cash

   $ 15,014                      $ 15,014   

Foreign currency at value

     94,421                        94,421   

Liabilities:

          

Collateral on securities loaned at value

           $ (70,955             (70,955

Total

   $ 109,435       $ (70,955           $ 38,480   
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2014.

 

See Notes to Financial Statements.

 

94    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Consolidated Schedule of Investments April 30, 2014  (Unaudited)      BlackRock Resources & Commodities Strategy Trust (BCX)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Chemicals — 11.3%

     

Agrium, Inc.

     73,800       $ 7,089,966   

CF Industries Holdings, Inc. (a)

     16,000         3,922,720   

Israel Chemicals Ltd.

     35,000         310,634   

Monsanto Co. (a)

     240,300         26,601,210   

The Mosaic Co. (a)

     153,908         7,701,556   

Potash Corp. of Saskatchewan, Inc. (a)

     200,000         7,232,000   

Syngenta AG

     51,000         20,195,574   
     

 

 

 
                73,053,660   

Food Products — 9.2%

     

Archer-Daniels-Midland Co. (a)

     287,700         12,581,121   

BRF SA — ADR

     290,000         6,554,000   

Bunge Ltd. (a)

     175,300         13,962,645   

First Resources Ltd.

     1,700,000         3,484,885   

Ingredion, Inc. (a)

     143,195         10,088,088   

Select Harvests Ltd.

     120,000         703,789   

Tyson Foods, Inc., Class A (a)

     300,000         12,591,000   
     

 

 

 
                59,965,528   

Machinery — 1.1%

     

Deere & Co. (a)

     72,420         6,759,683   

Metals & Mining — 22.2%

     

BHP Billiton Ltd. — ADR (a)

     502,100         35,418,134   

First Quantum Minerals Ltd. (a)

     352,600         7,022,725   

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

     593,200         20,388,284   

Fresnillo PLC

     628,700         9,065,785   

Glencore Xstrata PLC

     1,531,500         8,263,579   

Labrador Iron Ore Royalty Corp. (a)

     200,353         5,489,349   

Lundin Mining Corp. (a)(b)

     1,357,700         6,936,837   

MMC Norilsk Nickel OJSC — ADR

     738,200         13,346,043   

Nevsun Resources Ltd.

     2,204,650         7,985,457   

Rio Tinto PLC — ADR (a)

     445,900         24,207,911   

Vedanta Resources PLC

     386,750         6,193,086   
     

 

 

 
                144,317,190   

Oil, Gas & Consumable Fuels — 50.1%

     

BP PLC — ADR (a)(c)

     452,500         22,905,550   

Cairn Energy PLC (b)

     2,715,000         8,456,573   

Canadian Oil Sands Ltd. (a)

     744,000         16,128,315   

Chevron Corp. (a)(c)

     382,300         47,986,296   
Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels (concluded)

     

China Shenhua Energy Co. Ltd., Series H

     5,209,000       $ 14,146,193   

ConocoPhillips (a)

     418,500         31,098,735   

Cosan Ltd., Class A

     150,000         1,819,500   

Enbridge, Inc. (a)

     279,800         13,501,776   

Eni SpA — ADR

     236,400         12,207,696   

Exxon Mobil Corp. (a)(c)

     512,399         52,474,782   

Imperial Oil Ltd. (a)

     197,300         9,634,137   

Inpex Corp.

     897,900         13,094,443   

Royal Dutch Shell PLC — ADR (a)(c)

     397,900         31,330,646   

Southwestern Energy Co. (a)(b)

     133,500         6,391,980   

Statoil ASA

     671,100         20,458,760   

Total SA — ADR

     148,900         10,607,636   

Ultra Petroleum Corp. (a)(b)

     441,100         13,144,780   
     

 

 

 
                325,387,798   

Paper & Forest Products — 1.1%

     

Canfor Corp. (a)(b)

     160,000         3,629,032   

International Forest Products Ltd., Class A (b)

     240,000         3,639,250   
     

 

 

 
                7,268,282   

Real Estate Investment Trusts (REITs) — 0.5%

     

Plum Creek Timber Co., Inc.

     30,000         1,308,000   

Rayonier, Inc.

     46,600         2,101,660   
     

 

 

 
                3,409,660   

Total Long-Term Investments

(Cost — $567,646,783) — 95.5%

              620,161,801   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.03% (d)(e)

     36,702,308         36,702,308   

Total Short-Term Securities

(Cost — $36,702,308) — 5.6%

              36,702,308   

Total Investments Before Options Written

(Cost — $604,349,091) — 101.1%

              656,864,109   
     
Options Written                

(Premiums Received — $3,956,279) — (1.1)%

              (7,214,666

Total Investments Net of Options Written — 100.0%

        649,649,443   

Liabilities in Excess of Other Assets — 0.0%

        (242,448
     

 

 

 

Net Assets — 100.0%

      $ 649,406,995   
     

 

 

 
 

 

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) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2014, 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, 2013
     Net
Activity
     Shares Held at
April 30, 2014
     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     29,416,955         7,285,353         36,702,308       $ 4,729   

 

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

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    95


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 the investment advisor. 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, 2014 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

BP PLC — ADR

     Call         USD         49.50         5/02/14         550       $ (65,725

Exxon Mobil Corp.

     Call         USD         94.00         5/02/14         304         (246,240

Chevron Corp.

     Call         USD         120.00         5/05/14         179         (102,478

ConocoPhillips

     Call         USD         68.50         5/05/14         680         (411,400

Deere & Co.

     Call         USD         89.00         5/05/14         253         (110,655

Ingredion, Inc.

     Call         USD         69.00         5/05/14         27         (4,246

Archer-Daniels-Midland Co.

     Call         USD         43.50         5/09/14         188         (11,656

CF Industries Holdings, Inc.

     Call         USD         260.00         5/09/14         56         (5,880

The Mosaic Co.

     Call         USD         50.00         5/09/14         135         (12,352

Potash Corp. of Saskatchewan, Inc.

     Call         USD         35.50         5/09/14         214         (18,297

Archer-Daniels-Midland Co.

     Call         USD         44.00         5/19/14         409         (18,814

BHP Billiton Ltd. — ADR

     Call         USD         67.50         5/19/14         340         (113,900

BHP Billiton Ltd. — ADR

     Call         USD         70.00         5/19/14         315         (43,628

BHP Billiton Ltd. — ADR

     Call         USD         72.50         5/19/14         644         (23,828

BP PLC — ADR

     Call         USD         48.00         5/19/14         553         (142,674

Bunge Ltd.

     Call         USD         82.50         5/19/14         622         (68,420

Canadian Oil Sands Ltd.

     Call         CAD         23.00         5/19/14         860         (69,440

Canfor Corp.

     Call         CAD         28.00         5/19/14         185         (1,013

ConocoPhillips

     Call         USD         75.00         5/19/14         784         (52,136

Enbridge, Inc.

     Call         CAD         52.00         5/19/14         617         (65,018

Exxon Mobil Corp.

     Call         USD         100.00         5/19/14         1,111         (303,858

First Quantum Minerals Ltd.

     Call         CAD         20.00         5/19/14         617         (107,520

First Quantum Minerals Ltd.

     Call         CAD         21.00         5/19/14         617         (60,234

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         34.00         5/19/14         779         (66,994

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         35.00         5/19/14         775         (29,062

Imperial Oil Ltd.

     Call         CAD         50.00         5/19/14         345         (112,529

Imperial Oil Ltd.

     Call         CAD         52.00         5/19/14         345         (55,084

Ingredion, Inc.

     Call         USD         70.00         5/19/14         225         (29,812

Labrador Iron Ore Royalty Corp.

     Call         CAD         31.85         5/19/14         400         (3,285

Lundin Mining Corp.

     Call         CAD         5.00         5/19/14         425         (23,265

The Mosaic Co.

     Call         USD         47.50         5/19/14         403         (111,832

Potash Corp. of Saskatchewan, Inc.

     Call         USD         36.00         5/19/14         486         (33,048

Rio Tinto PLC — ADR

     Call         USD         60.00         5/19/14         540         (2,700

Southwestern Energy Co.

     Call         USD         47.00         5/19/14         298         (52,448

Tyson Foods, Inc., Class A

     Call         USD         43.00         5/19/14         525         (35,438

Tyson Foods, Inc., Class A

     Call         USD         44.00         5/19/14         525         (18,375

Ultra Petroleum Corp.

     Call         USD         30.00         5/19/14         945         (92,138

Ultra Petroleum Corp.

     Call         USD         31.00         5/19/14         945         (56,700

Monsanto Co.

     Call         USD         112.00         5/22/14         420         (56,616

Archer-Daniels-Midland Co.

     Call         USD         44.00         5/23/14         409         (23,926

BP PLC — ADR

     Call         USD         48.50         5/23/14         480         (100,080

Chevron Corp.

     Call         USD         123.00         5/23/14         390         (129,675

Chevron Corp.

     Call         USD         123.00         5/30/14         390         (134,550

Exxon Mobil Corp.

     Call         USD         101.00         5/30/14         189         (40,257

Chevron Corp.

     Call         USD         125.00         6/06/14         189         (42,525

Exxon Mobil Corp.

     Call         USD         101.00         6/06/14         189         (42,052

Monsanto Co.

     Call         USD         115.00         6/10/14         421         (41,666

Canadian Oil Sands Ltd.

     Call         CAD         25.00         6/23/14         875         (9,580

 

See Notes to Financial Statements.

 

96    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Consolidated Schedule of Investments (continued)      BlackRock Resources & Commodities Strategy Trust (BCX)   

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Canfor Corp.

     Call         CAD         27.00         6/23/14         250       $ (9,124

Chevron Corp.

     Call         USD         125.00         6/23/14         190         (47,595

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         34.00         6/23/14         520         (72,020

Labrador Iron Ore Royalty Corp.

     Call         CAD         32.00         6/23/14         300         (8,211

Total

                  $ (3,539,999
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         73.90         5/02/14         16,300       $ (78,883

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         74.28         5/02/14         6,900         (30,756

Eni SpA — ADR

   Goldman Sachs International      Call         USD         48.35         5/05/14         32,700         (107,593

Ingredion, Inc.

   UBS AG      Call         USD         67.50         5/05/14         25,000         (74,971

Total SA — ADR

   Morgan Stanley & Co. International PLC      Call         USD         64.50         5/05/14         6,300         (42,464

Fresnillo PLC

   Deutsche Bank AG      Call         GBP         9.46         5/06/14         115,550         (1,167

Mining and Metallurgical Co. Norilsk Nickel OJSC

   Goldman Sachs International      Call         USD         17.37         5/06/14         139,300         (99,565

Vedanta Resources PLC

   Morgan Stanley & Co. International PLC      Call         GBP         8.41         5/06/14         44,000         (80,193

Statoil ASA

   Deutsche Bank AG      Call         NOK         166.73         5/07/14         60,900         (148,548

First Resources Ltd.

   Bank of America N.A.      Call         SGD         2.38         5/08/14         297,000         (47,409

Inpex Corp.

   Morgan Stanley & Co. International PLC      Call         JPY         1,341.80         5/08/14         314,200         (455,939

Select Harvests Ltd.

   Morgan Stanley & Co. International PLC      Call         AUD         6.78         5/08/14         42,000         (674

Ultra Petroleum Corp.

   UBS AG      Call         USD         26.25         5/12/14         95,000         (339,635

Agrium, Inc.

   Credit Suisse International      Call         USD         97.00         5/13/14         12,900         (14,407

Statoil ASA

   Deutsche Bank AG      Call         NOK         166.73         5/13/14         60,900         (152,126

Syngenta AG

   Goldman Sachs International      Call         CHF         340.78         5/13/14         17,900         (167,985

Eni SpA — ADR

   UBS AG      Call         USD         49.11         5/14/14         25,000         (65,646

Fresnillo PLC

   Morgan Stanley & Co. International PLC      Call         GBP         9.08         5/14/14         53,253         (7,800

Israel Chemicals Ltd.

   Goldman Sachs International      Call         ILS         31.24         5/14/14         35,000         (3,933

Total SA — ADR

   Deutsche Bank AG      Call         USD         64.85         5/14/14         39,500         (254,901

Vedanta Resources PLC

   Morgan Stanley & Co. International PLC      Call         GBP         9.17         5/21/14         69,700         (56,188

China Shenhua Energy Co. Ltd., Series H

   Deutsche Bank AG      Call         HKD         22.81         5/22/14         539,000         (6,101

International Forest Products Ltd., Class A

   Goldman Sachs International      Call         CAD         15.80         5/23/14         28,000         (28,648

Agrium, Inc.

   Credit Suisse International      Call         USD         97.00         5/27/14         12,900         (23,049

BHP Billiton Ltd. — ADR

   Deutsche Bank AG      Call         USD         71.09         5/27/14         50,000         (56,483

Eni SpA — ADR

   UBS AG      Call         USD         49.11         5/27/14         25,000         (63,250

Mining and Metallurgical Co. Norilsk Nickel OJSC

   Deutsche Bank AG      Call         USD         18.40         5/28/14         17,500         (4,351

MMC Norilsk Nickel OJSC — ADR

   Morgan Stanley & Co. International PLC      Call         USD         17.65         5/28/14         101,000         (79,505

Rio Tinto PLC — ADR

   UBS AG      Call         USD         56.50         5/28/14         55,000         (28,138

BRF SA — ADR

   Morgan Stanley & Co. International PLC      Call         USD         22.19         6/02/14         101,500         (89,789

Glencore Xstrata PLC

   Deutsche Bank AG      Call         GBP         3.20         6/03/14         418,500         (46,165

Rio Tinto PLC — ADR

   Deutsche Bank AG      Call         USD         55.86         6/04/14         50,000         (49,739

Southwestern Energy Co.

   Goldman Sachs International      Call         USD         49.38         6/04/14         62,500         (55,602

China Shenhua Energy Co. Ltd., Series H

   Deutsche Bank AG      Call         HKD         22.81         6/05/14         539,000         (12,842

Enbridge, Inc.

   Citibank N.A.      Call         CAD         51.10         6/05/14         18,000         (32,064

Glencore Xstrata PLC

   Deutsche Bank AG      Call         GBP         3.21         6/05/14         110,000         (11,764

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.24         6/05/14         58,000         (180,513

Total SA — ADR

   Morgan Stanley & Co. International PLC      Call         USD         66.83         6/05/14         6,300         (27,997

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    97


Table of Contents
Consolidated Schedule of Investments (continued)      BlackRock Resources & Commodities Strategy Trust (BCX)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Lundin Mining Corp.

   UBS AG      Call         CAD         5.43         6/06/14         216,000       $ (65,706

Statoil ASA

   Morgan Stanley & Co. International PLC      Call         NOK         169.48         6/10/14         113,000         (223,139

First Resources Ltd.

   Bank of America N.A.      Call         SGD         2.57         6/11/14         149,000         (11,708

China Shenhua Energy Co. Ltd., Series H

   Goldman Sachs International      Call         HKD         23.39         6/12/14         745,000         (13,730

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.62         6/12/14         29,000         (86,288

Fresnillo PLC

   Bank of America N.A.      Call         GBP         8.71         6/17/14         52,500         (37,103

Royal Dutch Shell PLC — ADR

   Citibank N.A.      Call         USD         76.62         6/18/14         29,000         (89,203

Vedanta Resources PLC

   Bank of America N.A.      Call         GBP         9.58         6/18/14         22,000         (14,125

Enbridge, Inc.

   Deutsche Bank AG      Call         CAD         53.00         6/21/14         9,100         (6,476

First Resources Ltd.

   Bank of America N.A.      Call         SGD         2.56         6/26/14         149,000         (14,558

Lundin Mining Corp.

   UBS AG      Call         CAD         5.43         6/27/14         216,000         (77,628

Enbridge, Inc.

   Deutsche Bank AG      Call         CAD         53.00         7/09/14         9,100         (8,220

Total

                     $ (3,674,667
                    

 

 

 

 

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 or 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 fair value hierarchy classification 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, please refer to Note 2 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, 2014:

 

      Level 1      Level 2      Level 3      Total  

Assets:

           

Investments:

           

Long-Term Investments:

           

Common Stocks:

           

Chemicals

   $ 52,547,452       $ 20,506,208               $ 73,053,660   

Food Products

     59,261,739         703,789                 59,965,528   

Machinery

     6,759,683                         6,759,683   

Metals & Mining

     107,448,697         36,868,493                 144,317,190   

Oil, Gas & Consumable Fuels

     269,231,829         56,155,969                 325,387,798   

Paper & Forest Products

     7,268,282                         7,268,282   

Real Estate Investment Trusts (REITs)

     3,409,660                         3,409,660   

Short-Term Securities

     36,702,308                         36,702,308   

Total

   $ 542,629,650       $ 114,234,459               $ 656,864,109   
  

 

 

 

 

See Notes to Financial Statements.

 

98    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Consolidated Schedule of Investments (concluded)      BlackRock Resources & Commodities Strategy Trust (BCX)   

 

 

 

      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (3,326,816   $ (3,887,850           $ (7,214,666

 

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

         
The carrying amount for certain of the Trust’s assets and/or liabilities approximates fair value for financial statement purposes. As of April 30, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash

   $ 25,495                     $ 25,495   

Liabilities:

         

Foreign bank overdraft

          $ (58,695             (58,695

Total

   $ 25,495        (58,695           $ (33,200
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2014.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    99


Table of Contents
Schedule of Investments April 30, 2014 (Unaudited)      BlackRock Utility and Infrastructure Trust (BUI)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Construction & Engineering — 4.0%

     

Ferrovial SA

     303,500       $ 6,746,295   

Vinci SA

     110,200         8,320,791   
     

 

 

 
                15,067,086   

Diversified Telecommunication Services — 4.9%

     

BT Group PLC

     426,800         2,664,348   

Frontier Communications Corp.

     389,800         2,319,310   

Swisscom AG

     2,010         1,222,843   

Telenor ASA

     139,100         3,268,436   

Verizon Communications, Inc. (a)(b)

     190,400         8,897,392   
     

 

 

 
                18,372,329   

Electric Utilities — 17.5%

     

American Electric Power Co., Inc. (a)

     36,300         1,953,303   

Cleco Corp. (a)

     36,400         1,912,820   

Duke Energy Corp. (a)

     157,868         11,759,587   

Edison International

     127,600         7,217,056   

ITC Holdings Corp.

     144,600         5,345,862   

NextEra Energy, Inc. (a)(b)

     150,400         15,017,440   

Northeast Utilities (a)

     74,000         3,497,240   

NRG Yield, Inc., Class A

     154,500         6,618,780   

OGE Energy Corp.

     52,400         1,956,092   

PPL Corp.

     82,700         2,757,218   

Spark Infrastructure Group

     670,800         1,102,316   

Terna Rete Elettrica Nazionale SpA

     251,100         1,360,380   

Westar Energy, Inc.

     88,600         3,178,968   

Xcel Energy, Inc.

     59,900         1,909,013   
     

 

 

 
                65,586,075   

Gas Utilities — 1.1%

     

Snam SpA (a)

     692,300         4,164,141   

Independent Power and Renewable Electricity Producers — 2.7%

  

EDP Renovaveis SA (c)

     313,900         2,152,610   

Enel Green Power SpA (a)

     822,500         2,353,995   

NRG Energy, Inc. (a)

     143,701         4,701,897   

Pattern Energy Group, Inc.

     38,800         1,039,840   
     

 

 

 
                10,248,342   

Machinery — 0.8%

     

Xylem, Inc.

     79,500         2,988,405   

Media — 2.3%

     

Comcast Corp., Special Class A (a)(b)

     85,900         4,383,477   

Time Warner Cable, Inc. (a)

     28,700         4,059,902   
     

 

 

 
                8,443,379   

Multi-Utilities — 20.2%

     

CenterPoint Energy, Inc.

     155,900         3,860,084   

CMS Energy Corp. (a)(b)

     397,600         12,051,256   

Dominion Resources, Inc. (a)

     152,400         11,055,096   

DTE Energy Co. (a)

     25,100         1,961,314   

E.ON SE

     39,300         752,785   

MDU Resources Group, Inc.

     138,500         4,905,670   

National Grid PLC

     1,020,500         14,504,558   

NiSource, Inc. (a)

     84,800         3,079,936   

NorthWestern Corp.

     67,000         3,241,460   

Public Service Enterprise Group, Inc.

     158,756         6,504,233   

Sempra Energy

     75,300         7,425,333   

Veolia Environnement SA

     55,000         1,026,073   

Wisconsin Energy Corp.

     113,000         5,478,240   
     

 

 

 
                75,846,038   

Oil, Gas & Consumable Fuels — 23.2%

     

Access Midstream Partners LP (a)

     33,576         1,992,736   

AltaGas Ltd. (a)

     56,900         2,424,369   

Atlas Pipeline Partners LP

     24,600         796,548   

Delek Logistics Partners LP (a)

     37,200         1,252,896   
Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels (concluded)

     

Enable Midstream Partners LP (c)

     45,800       $ 1,133,092   

Enbridge, Inc.

     162,200         7,832,638   

Energy Transfer Partners LP (a)

     29,496         1,627,884   

Enterprise Products Partners LP

     115,977         8,481,398   

EQT Midstream Partners LP

     50,700         3,905,421   

Genesis Energy LP

     143,669         7,962,136   

Magellan Midstream Partners LP (a)

     74,100         5,498,961   

MarkWest Energy Partners LP

     77,453         4,905,873   

MPLX LP (a)

     60,500         3,274,865   

ONEOK Partners LP (a)

     78,245         4,459,183   

Pembina Pipeline Corp.

     84,200         3,308,694   

Phillips 66 Partners LP

     43,300         2,321,746   

Plains All American Pipeline LP (a)(b)

     109,670         6,119,586   

QEP Midstream Partners LP

     44,300         1,054,340   

Rose Rock Midstream LP

     18,300         763,110   

Sunoco Logistics Partners LP

     49,300         4,484,328   

Tesoro Logistics LP

     88,600         5,661,540   

TransCanada Corp. (a)

     74,800         3,485,958   

Valero Energy Partners LP (a)

     45,400         1,870,934   

Western Gas Partners LP

     23,514         1,598,952   

Williams Partners LP

     16,790         866,028   
     

 

 

 
                87,083,216   

Real Estate Investment Trusts (REITs) — 3.4%

     

American Tower Corp. (a)(b)

     153,400         12,811,968   

Transportation Infrastructure — 13.4%

     

Abertis Infraestructuras SA

     390,900         8,798,975   

Aeroports de Paris

     29,300         3,643,623   

Atlantia SpA (a)

     488,884         12,734,894   

CCR SA

     223,900         1,755,252   

Flughafen Zuerich AG

     6,300         3,974,555   

Fraport AG Frankfurt Airport Services Worldwide

     69,400         5,132,617   

Groupe Eurotunnel SA

     348,800         4,682,570   

Sydney Airport

     597,666         2,348,508   

Transurban Group

     1,090,300         7,363,675   
     

 

 

 
                50,434,669   

Water Utilities — 2.9%

     

American Water Works Co., Inc. (a)

     184,600         8,404,838   

Aqua America, Inc.

     58,050         1,456,475   

Severn Trent PLC

     26,400         822,381   
     

 

 

 
                10,683,694   

Wireless Telecommunication Services — 0.6%

     

SBA Communications Corp., Class A (a)(c)

     22,800         2,046,528   

Total Long-Term Investments

(Cost — $285,230,957) — 97.0%

              363,775,870   
     
                  
 

 

See Notes to Financial Statements.

 

100    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   
     (Percentages shown are based on Net Assets)   

 

Short-Term Securities        
Shares
     Value  

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.03% (d)(e)

     12,817,865       $ 12,817,865   

Total Short-Term Securities

(Cost — $12,817,865) — 3.4%

              12,817,865   

Total Investments Before Options Written

(Cost — $298,048,822) — 100.4%

              376,593,735   
     
                    
Options Written              
Value
 

(Premiums Received — $2,198,766) — (0.9)%

        $ (3,420,626

Total Investments Net of Options Written — 99.5%

        373,173,109   

Other Assets Less Liabilities — 0.5%

        1,962,516   
     

 

 

 

Net Assets — 100.0%

      $ 375,135,625   
     

 

 

 
 
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) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(c) Non-income producing security.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2014, 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, 2013
     Net
Activity
    Shares Held at
April 30, 2014
     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     15,720,002         (2,902,137     12,817,865       $ 1,958   

 

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

 

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 the investment advisor. 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, 2014 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

NRG Energy, Inc.

     Call         USD         30.75         5/13/14         250       $ (52,174

Atlantia SpA

     Call         EUR         19.00         5/16/14         170         (29,884

Snam SpA

     Call         EUR         4.20         5/16/14         170         (31,980

Access Midstream Partners LP

     Call         USD         60.00         5/19/14         60         (2,550

AltaGas Ltd.

     Call         CAD         46.00         5/19/14         110         (9,534

American Tower Corp.

     Call         USD         82.50         5/19/14         268         (49,580

Cleco Corp.

     Call         USD         50.00         5/19/14         63         (18,428

Comcast Corp., Special Class A

     Call         USD         49.00         5/19/14         76         (16,910

Duke Energy Corp.

     Call         USD         72.50         5/19/14         525         (114,188

Energy Transfer Partners LP

     Call         USD         55.00         5/19/14         103         (4,120

Magellan Midstream Partners LP

     Call         USD         72.50         5/19/14         191         (35,335

NiSource, Inc.

     Call         USD         36.00         5/19/14         296         (19,240

Northeast Utilities

     Call         USD         45.00         5/19/14         196         (44,590

NRG Energy, Inc.

     Call         USD         33.00         5/19/14         252         (13,860

ONEOK Partners LP

     Call         USD         55.00         5/19/14         91         (21,158

SBA Communications Corp., Class A

     Call         USD         95.00         5/19/14         80         (3,000

Time Warner Cable, Inc.

     Call         USD         140.00         5/19/14         100         (26,000

TransCanada Corp.

     Call         CAD         52.00         5/19/14         261         (4,405

Valero Energy Partners LP

     Call         USD         40.00         5/19/14         88         (17,820

Verizon Communications, Inc.

     Call         USD         48.00         5/19/14         188         (1,974

Verizon Communications, Inc.

     Call         USD         48.00         5/23/14         188         (3,384

Verizon Communications, Inc.

     Call         USD         48.50         5/30/14         130         (1,820

American Tower Corp.

     Call         USD         84.00         6/06/14         268         (39,530

DTE Energy Co.

     Call         USD         78.00         6/06/14         87         (12,782

Atlantia SpA

     Call         EUR         19.50         6/20/14         170         (45,387

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    101


Table of Contents
Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   

 

Ÿ  

Exchange-traded options written as of April 30, 2014 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Enel Green Power SpA

     Call         EUR         2.10         6/20/14         290       $ (30,092

Delek Logistics Partners LP

     Call         USD         35.00         6/23/14         120         (8,400

Dominion Resources, Inc.

     Call         USD         72.50         6/23/14         250         (33,750

Duke Energy Corp.

     Call         USD         72.50         6/23/14         30         (7,050

MPLX LP

     Call         USD         55.00         6/23/14         250         (36,250

NextEra Energy, Inc.

     Call         USD         97.50         6/23/14         183         (68,625

Verizon Communications, Inc.

     Call         USD         47.00         6/23/14         160         (13,520

Total

                  $ (817,320
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
   Contracts      Market
Value
 

Sempra Energy

   Goldman Sachs International      Call         USD         97.72       5/02/14      6,600       $ (6,333

Western Gas Partners LP

   UBS AG      Call         USD         67.04       5/02/14      8,200         (8,038

American Water Works Co., Inc.

   Citibank N.A.      Call         USD         45.54       5/05/14      16,200         (9,306

Edison International

   Citibank N.A.      Call         USD         54.54       5/05/14      44,600         (90,967

ITC Holdings Corp.

   Morgan Stanley & Co. International PLC      Call         USD         36.59       5/05/14      25,400         (14,089

Northeast Utilities

   Deutsche Bank AG      Call         USD         43.95       5/05/14      6,300         (20,889

ONEOK Partners LP

   Morgan Stanley & Co. International PLC      Call         USD         53.97       5/05/14      13,800         (41,681

CenterPoint Energy, Inc.

   Deutsche Bank AG      Call         USD         24.37       5/06/14      30,600         (16,256

CMS Energy Corp.

   UBS AG      Call         USD         28.01       5/06/14      44,900         (103,270

Fraport AG Frankfurt Airport Services Worldwide

   Morgan Stanley & Co. International PLC      Call         EUR         54.68       5/06/14      4,800         (812

MDU Resources Group, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         34.46       5/06/14      15,500         (15,497

American Water Works Co., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         45.94       5/07/14      16,000         (8,157

Enbridge, Inc.

   Deutsche Bank AG      Call         USD         45.69       5/07/14      56,700         (147,549

Telenor ASA

   Credit Suisse International      Call         NOK         131.53       5/07/14      48,600         (67,254

Westar Energy, Inc.

   Citibank N.A.      Call         USD         35.56       5/07/14      15,500         (7,763

E.ON SE

   Morgan Stanley & Co. International PLC      Call         EUR         14.35       5/08/14      13,700         (39

Sempra Energy

   UBS AG      Call         USD         97.00       5/08/14      19,700         (39,421

Spark Infrastructure Group

   Deutsche Bank AG      Call         AUD         1.74       5/08/14      234,800         (7,834

Sydney Airport

   UBS AG      Call         AUD         4.18       5/08/14      209,100         (14,894

ITC Holdings Corp.

   Citibank N.A.      Call         USD         37.48       5/09/14      25,200         (6,010

Frontier Communications Corp.

   JPMorgan Chase Bank N.A.      Call         USD         5.71       5/12/14      68,300         (21,775

NextEra Energy, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         94.50       5/12/14      34,300         (191,522

NorthWestern Corp.

   UBS AG      Call         USD         45.95       5/12/14      21,300         (53,353

Sunoco Logistics Partners LP

   Goldman Sachs International      Call         USD         90.58       5/12/14      8,600         (8,032

Tesoro Logistics LP

   Citibank N.A.      Call         USD         64.00       5/12/14      10,500         (7,983

Xcel Energy, Inc.

   Bank of America N.A.      Call         USD         30.16       5/12/14      20,900         (35,750

Cleco Corp.

   Citibank N.A.      Call         USD         50.30       5/13/14      6,400         (14,413

Comcast Corp., Special Class A

   Citibank N.A.      Call         USD         50.75       5/13/14      5,600         (4,386

Fraport AG Frankfurt Airport Services Worldwide

   Goldman Sachs International      Call         EUR         54.64       5/13/14      4,800         (1,894

Fraport AG Frankfurt Airport Services Worldwide

   Morgan Stanley & Co. International PLC      Call         EUR         54.89       5/13/14      4,400         (1,494

MarkWest Energy Partners LP

   UBS AG      Call         USD         67.11       5/13/14      13,500         (1,196

Plains All American Pipeline LP

   Morgan Stanley & Co. International PLC      Call         USD         53.00       5/13/14      6,200         (18,549

Westar Energy, Inc.

   Citibank N.A.      Call         USD         35.56       5/13/14      15,500         (9,482

Xylem, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         39.00       5/13/14      27,800         (10,480

Phillips 66 Partners LP

   UBS AG      Call         USD         43.46       5/14/14      5,000         (50,811

Severn Trent PLC

   Deutsche Bank AG      Call         GBP         18.13       5/14/14      4,600         (3,774

Enterprise Products Partners LP

   Deutsche Bank AG      Call         USD         71.00       5/15/14      35,500         (80,797

 

See Notes to Financial Statements.

 

102    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (continued)    BlackRock Utility and Infrastructure Trust (BUI)

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
   Contracts      Market
Value
 

Groupe Eurotunnel SA

   Morgan Stanley & Co. International PLC      Call         EUR         9.18       5/15/14      88,700       $ (66,997

CCR SA

   Deutsche Bank AG      Call         BRL         17.48       5/20/14      39,000         (9,147

Transurban Group

   Goldman Sachs International      Call         AUD         7.32       5/20/14      381,600         (41,084

Fraport AG Frankfurt Airport Services Worldwide

   Morgan Stanley & Co. International PLC      Call         EUR         54.03       5/21/14      2,200         (2,033

National Grid PLC

   Deutsche Bank AG      Call         GBP         8.25       5/21/14      164,200         (67,042

Access Midstream Partners LP

   UBS AG      Call         USD         57.94       5/22/14      5,900         (9,531

Aeroports de Paris

   Morgan Stanley & Co. International PLC      Call         EUR         93.80       5/22/14      2,600         (848

American Electric Power Co., Inc.

   UBS AG      Call         USD         52.27       5/22/14      12,700         (19,558

CMS Energy Corp.

   Goldman Sachs International      Call         USD         29.14       5/22/14      49,600         (58,032

Ferrovial SA

   Goldman Sachs International      Call         EUR         15.85       5/22/14      77,000         (54,193

Comcast Corp., Special Class A

   Citibank N.A.      Call         USD         49.25       5/27/14      11,200         (24,433

Genesis Energy LP

   Morgan Stanley & Co. International PLC      Call         USD         54.76       5/27/14      25,000         (40,385

NRG Yield, Inc., Class A

   Citibank N.A.      Call         USD         43.03       5/27/14      15,700         (16,913

CCR SA

   Goldman Sachs International      Call         BRL         17.64       5/28/14      20,000         (4,965

CenterPoint Energy, Inc.

   Citibank N.A.      Call         USD         24.50       5/28/14      23,900         (15,382

EDP Renovaveis SA

   Goldman Sachs International      Call         EUR         4.73       5/28/14      13,250         (4,645

Frontier Communications Corp.

   JPMorgan Chase Bank N.A.      Call         USD         5.71       5/28/14      68,300         (27,072

Enterprise Products Partners LP

   Morgan Stanley & Co. International PLC      Call         USD         73.42       5/29/14      5,000         (4,343

MarkWest Energy Partners LP

   UBS AG      Call         USD         67.11       5/29/14      13,500         (5,274

Public Service Enterprise Group, Inc.

   Deutsche Bank AG      Call         USD         38.70       5/29/14      24,800         (61,727

Tesoro Logistics LP

   Morgan Stanley & Co. International PLC      Call         USD         61.79       5/29/14      20,500         (53,217

Aqua America, Inc.

   Goldman Sachs International      Call         USD         25.95       5/30/14      20,300         (4,085

MDU Resources Group, Inc.

   Morgan Stanley & Co. International PLC      Call         USD         34.40       5/30/14      16,000         (20,509

Sunoco Logistics Partners LP

   Goldman Sachs International      Call         USD         90.58       5/30/14      8,600         (13,393

American Water Works Co., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         46.66       6/02/14      16,200         (14,388

CMS Energy Corp.

   Morgan Stanley & Co. International PLC      Call         USD         30.52       6/02/14      44,600         (23,498

Dominion Resources, Inc.

   Credit Suisse International      Call         USD         73.10       6/02/14      28,400         (28,063

Pembina Pipeline Corp.

   Goldman Sachs International      Call         CAD         41.93       6/02/14      29,400         (37,120

Aeroports de Paris

   UBS AG      Call         EUR         92.92       6/03/14      2,600         (1,070

BT Group PLC

   Morgan Stanley & Co. International PLC      Call         GBP         3.76       6/03/14      148,000         (19,579

Ferrovial SA

   Deutsche Bank AG      Call         EUR         16.15       6/03/14      29,000         (13,570

Fraport AG Frankfurt Airport Services Worldwide

   UBS AG      Call         EUR         54.05       6/03/14      2,200         (1,389

National Grid PLC

   Morgan Stanley & Co. International PLC      Call         GBP         8.31       6/03/14      193,000         (69,178

Veolia Environnement SA

   Deutsche Bank AG      Call         EUR         14.32       6/03/14      20,000         (116

Vinci SA

   Deutsche Bank AG      Call         EUR         54.54       6/03/14      39,000         (69,854

EQT Midstream Partners LP

   Citibank N.A.      Call         USD         71.00       6/05/14      8,900         (53,667

MDU Resources Group, Inc.

   UBS AG      Call         USD         34.49       6/05/14      8,500         (10,817

OGE Energy Corp.

   Credit Suisse International      Call         USD         37.39       6/05/14      9,100         (9,553

Pattern Energy Group, Inc.

   Deutsche Bank AG      Call         USD         29.13       6/05/14      13,500         (4,863

Phillips 66 Partners LP

   UBS AG      Call         USD         56.92       6/05/14      5,000         (3,281

Public Service Enterprise Group, Inc.

   Citibank N.A.      Call         USD         39.95       6/05/14      6,000         (7,216

Swisscom AG

   Goldman Sachs International      Call         CHF         537.83       6/05/14      700         (6,413

Valero Energy Partners LP

   Morgan Stanley & Co. International PLC      Call         USD         44.56       6/05/14      3,500         (2,152

Wisconsin Energy Corp.

   UBS AG      Call         USD         48.42       6/05/14      39,500         (22,380

American Water Works Co., Inc.

   Morgan Stanley & Co. International PLC      Call         USD         45.75       6/09/14      16,200         (12,023

Comcast Corp., Special Class A

   Citibank N.A.      Call         USD         51.59       6/09/14      5,600         (4,424

Magellan Midstream Partners LP

   Citibank N.A.      Call         USD         73.17       6/09/14      6,800         (11,495

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    103


Table of Contents
Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   

 

Ÿ  

Over-the-counter options written as of April 30, 2014 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

EDP Renovaveis SA

   Goldman Sachs International      Call         EUR         4.73         6/10/14         13,250       $ (5,018

Genesis Energy LP

   Morgan Stanley & Co. International PLC      Call         USD         54.76         6/10/14         25,000         (46,151

OGE Energy Corp.

   Credit Suisse International      Call         USD         37.58         6/10/14         9,200         (8,599

Plains All American Pipeline LP

   Morgan Stanley & Co. International PLC      Call         USD         57.00         6/10/14         26,000         (13,791

Fraport AG Frankfurt Airport Services Worldwide

   Morgan Stanley & Co. International PLC      Call         EUR         53.34         6/11/14         5,700         (4,845

MDU Resources Group, Inc.

   UBS AG      Call         USD         34.49         6/12/14         8,400         (10,094

NorthWestern Corp.

   UBS AG      Call         USD         48.00         6/12/14         2,100         (2,036

Public Service Enterprise Group, Inc.

   Deutsche Bank AG      Call         USD         38.70         6/12/14         24,800         (56,296

Severn Trent PLC

   Bank of America N.A.      Call         GBP         18.42         6/13/14         4,600         (4,113

AltaGas Ltd.

   Morgan Stanley & Co. International PLC      Call         CAD         46.02         6/16/14         8,900         (9,266

EDP Renovaveis SA

   Morgan Stanley & Co. International PLC      Call         EUR         4.72         6/17/14         13,250         (5,230

Groupe Eurotunnel SA

   Morgan Stanley & Co. International PLC      Call         EUR         9.73         6/17/14         32,700         (11,231

Abertis Infraestructuras SA

   Bank of America N.A.      Call         EUR         16.47         6/18/14         68,200         (33,177

Valero Energy Partners LP

   Morgan Stanley & Co. International PLC      Call         USD         44.56         6/18/14         3,500         (2,973

Aeroports de Paris

   Morgan Stanley & Co. International PLC      Call         EUR         89.29         6/25/14         5,000         (11,649

Phillips 66 Partners LP

   UBS AG      Call         USD         57.50         6/25/14         5,100         (4,583

Plains All American Pipeline LP

   Morgan Stanley & Co. International PLC      Call         USD         56.57         6/25/14         6,200         (5,238

EDP Renovaveis SA

   Morgan Stanley & Co. International PLC      Call         EUR         4.72         6/26/14         13,250         (5,441

EQT Midstream Partners LP

   UBS AG      Call         USD         76.25         6/26/14         8,800         (23,922

NRG Yield, Inc., Class A

   Citibank N.A.      Call         USD         42.25         6/26/14         38,300         (77,104

Williams Partners LP

   Morgan Stanley & Co. International PLC      Call         USD         51.81         6/30/14         5,800         (6,400

Abertis Infraestructuras SA

   Bank of America N.A.      Call         EUR         16.47         7/01/14         68,200         (38,703

EDP Renovaveis SA

   Goldman Sachs International      Call         EUR         4.75         7/09/14         28,800         (11,540

EDP Renovaveis SA

   UBS AG      Call         EUR         4.69         7/16/14         28,100         (13,239

Total

                     $ (2,603,306
                    

 

 

 

 

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 or 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 fair value hierarchy classification 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 instrument, please refer to Note 2 of the Notes to Financial Statements.

 

See Notes to Financial Statements.

 

104    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Schedule of Investments (concluded)      BlackRock Utility and Infrastructure Trust (BUI)   

 

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2014:

 

 

 
     Level 1     Level 2     Level 3      Total  

 

 

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Construction & Engineering

          $ 15,067,086              $ 15,067,086   

Diversified Telecommunication Services

   $ 11,216,702        7,155,627                18,372,329   

Electric Utilities

     63,123,379        2,462,696                65,586,075   

Gas Utilities

            4,164,141                4,164,141   

Independent Power and Renewable Electricity Producers

     5,741,737        4,506,605                10,248,342   

Machinery

     2,988,405                       2,988,405   

Media

     8,443,379                       8,443,379   

Multi-Utilities

     59,562,622        16,283,416                75,846,038   

Oil, Gas & Consumable Fuels

     87,083,216                       87,083,216   

Real Estate Investment Trusts (REITs)

     12,811,968                       12,811,968   

Transportation Infrastructure

     1,755,252        48,679,417                50,434,669   

Water Utilities

     10,683,694                       10,683,694   

Wireless Telecommunication Services

     2,046,528                       2,046,528   

Short-Term Securities

     12,817,865                       12,817,865   

 

 

Total

   $ 278,274,747      $ 98,318,988              $ 376,593,735   
  

 

 

 
         

 

 
     Level 1     Level 2     Level 3      Total  

 

 

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (615,020   $ (2,805,606           $ (3,420,626

 

 

 

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

         
The carrying amount for certain of the Trust’s assets approximates fair value for financial statement purposes. As of April 30, 2014, such assets are categorized within the disclosure hierarchy as follows:    
         

 

 
     Level 1     Level 2     Level 3      Total  

 

 

Assets:

         

Cash

   $ 23,663                     $ 23,663   

Foreign currency at value

     190,232                       190,232   

 

 

Total

   $ 213,895                     $ 213,895   
  

 

 

 

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, 2013 the Trust did not utilize the external pricing service model adjustments as significant market movements did not occur. As of April 30 2014, securities with a value of $7,807,764 were systematically fair valued due to significant market movements. Therefore, these securities were transferred from Level 1 to Level 2 during the period October 31, 2013 to April 30, 2014.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    105


Table of Contents
Statements of Assets and Liabilities     

 

April 30, 2014 (Unaudited)    BlackRock
Dividend
Income
Trust (BQY)
    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)

 
            
Assets                                                 

Investments at value — unaffiliated1,2

   $ 87,280,306      $ 112,631,982      $ 823,406,787      $ 675,395,664      $ 1,623,925,289      $ 1,152,719,564   

Investments at value — affiliated3

     3,038,407        4,186,554        31,463,547        3,204,081        38,251,313        18,266,327   

Cash

     23,966               6,930        2,113        74,629        24,330   

Cash pledged as collateral for OTC derivatives

            100,000               200,000        100,000          

Foreign currency at value4

     26,460        16,164        184,978        3,608        1,778        10,988,841   

Investments sold receivable

            215,108               18,299,325        1,705,015        5,377,999   

Options written receivable

     29,366        85,586        380,400        105,220        635,368        499,240   

Dividends receivable — affiliated

     78        92        884        302        903        161   

Dividends receivable

     187,315        276,632        195,650        1,064,894        1,356,427        2,080,207   

Securities lending income receivable — affiliated

            482                             30,912   

Other assets

     4,114        10,690        29,349        22,092        79,122        53,509   
  

 

 

 

Total assets

     90,590,012        117,523,290        855,668,525        698,297,299        1,666,129,844        1,190,041,090   
  

 

 

 
            
Liabilities                                                 

Options written at value5

     875,586        1,174,848        11,333,766        9,841,545        18,043,340        13,786,827   

Collateral on securities loaned at value

                                        9,198,761   

Investments purchased payable

            52,915               2,310,770        718,620        21,648,897   

Options written payable

     75,517        178,787        796,858        36,682        1,253,227        175,848   

Investment advisory fees payable

     53,973        108,633        808,221        472,876        1,079,867        937,820   

Officer’s and Trustees’ fees payable

     14,875        595        369,160        81,077        672,598        531,628   

Other accrued expenses payable

     127,513        117,257        186,786        154,097        335,685        296,285   
  

 

 

 

Total liabilities

     1,147,464        1,633,035        13,494,791        12,897,047        22,103,337        46,576,066   
  

 

 

 

Net Assets

   $ 89,442,548      $ 115,890,255      $ 842,173,734      $ 685,400,252      $ 1,644,026,507      $ 1,143,465,024   
  

 

 

 
            
Net Assets Consist of                                                 

Paid-in capital

   $ 82,951,843      $ 172,464,776      $ 671,744,850      $ 722,434,062      $ 1,597,828,802      $ 1,154,307,475   

Distributions in excess of net investment income

     (1,711,885     (3,990,196     (98,847,386     (5,897,076     (35,892,255     (38,496,228

Accumulated net realized gain (loss)

     (618,754     (66,835,306     146,297,578        (103,620,770     (188,152,688     (85,465,250

Net unrealized appreciation/depreciation

     8,821,344        14,250,981        122,978,692        72,484,036        270,242,648        113,119,027   
  

 

 

 

Net Assets

   $ 89,442,548      $ 115,890,255      $ 842,173,734      $ 685,400,252      $ 1,644,026,507      $ 1,143,465,024   
  

 

 

 

Net asset value6,7

   $ 14.83      $ 9.22      $ 28.29      $ 15.53      $ 9.16      $ 16.46   
  

 

 

 

1 Investments at cost — unaffiliated

   $ 78,114,427      $ 98,187,781      $ 694,491,167      $ 602,097,260      $ 1,349,391,681      $ 1,038,567,107   

2 Securities loaned at value

                                      $ 8,679,198   

3 Investments at cost — affiliated

   $ 3,038,407      $ 4,186,554      $ 31,463,547      $ 3,204,081      $ 38,251,313      $ 18,266,327   

4 Foreign currency at cost

   $ 26,419      $ 17,786      $ 184,978      $ 9,211      $ 1,650      $ 10,931,252   

5 Premiums received

   $ 529,380      $ 982,018      $ 5,396,719      $ 9,033,294      $ 13,752,252      $ 12,733,116   

6 Shares outstanding, unlimited number of shares authorized, $0.001 par value

     6,033,028        12,564,457        29,766,217               179,482,756        69,483,161   

7 Shares outstanding, 200 million shares authorized, $0.10 par value

                          44,121,400                 

 

See Notes to Financial Statements.

 

106    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Statements of Assets and Liabilities (concluded)     

 

April 30, 2014 (Unaudited)    BlackRock
Health
Sciences
Trust (BME)
    BlackRock
International
Growth and
Income
Trust (BGY)
    BlackRock
Real Asset
Equity
Trust (BCF)
    BlackRock
Resources &
Commodities
Strategy
Trust (BCX)1
    BlackRock
Utility and
Infrastructure
Trust (BUI)
 
          
Assets                                         

Investments at value — unaffiliated2,3

   $ 263,336,474      $ 971,879,010      $ 574,670,554      $ 620,161,801      $ 363,775,870   

Investments at value — affiliated4

     9,167,290        10,177,930        24,932,527        36,702,308        12,817,865   

Cash

     22,182               15,014        25,495        23,663   

Cash pledged as collateral for OTC derivatives

            7,744,504                        

Cash pledged as collateral for exchange-traded options written

     1,892,100        4,050,000                        

Foreign currency at value5

     120,537        2,255,325        94,421               190,232   

Investments sold receivable

     662,612        11,048,447               199,946        1,625,640   

Options written receivable

            712,334        290,764        164,737        178,681   

Dividends receivable — affiliated

     207        94        560        568        169   

Dividends receivable

     279,947        2,944,250        705,491        663,546        813,870   

Securities lending income receivable — affiliated

     221        21,987        161                 

Other assets

     16,233        60,515        31,387        21,891        12,372   
  

 

 

 

Total assets

     275,497,803        1,010,894,396        600,740,879        657,940,292        379,438,362   
  

 

 

 
          
Liabilities                                         

Bank overdraft

            3,767,000                        

Foreign bank overdraft5

                          58,695          

Options written at value6

     2,030,854        12,305,555        6,182,281        7,214,666        3,420,626   

Collateral on securities loaned at value

     287,000        10,177,930        70,955                 

Investments purchased payable

     632,622        8,441,015                      38,413   

Options written payable

     26,600        243,308        507,058        506,916        381,572   

Investment advisory fees payable

     221,062        761,038        550,335        521,875        302,957   

Officer’s and Trustees’ fees payable

     17,380        470,283        297,141        2,774        1,216   

Other accrued expenses payable

     98,825        291,701        194,606        228,371        157,953   
  

 

 

 

Total liabilities

     3,314,343        36,457,830        7,802,376        8,533,297        4,302,737   
  

 

 

 

Net Assets

   $ 272,183,460      $ 974,436,566      $ 592,938,503      $ 649,406,995      $ 375,135,625   
  

 

 

 
          
Net Assets Consist of                                         

Paid-in capital

   $ 182,592,761      $ 1,421,001,423      $ 621,054,142      $ 765,766,937      $ 310,378,484   

Distributions in excess of net investment income

     (20,740,167     (30,769,824     (20,767,572     (22,274,085     (6,140,281

Accumulated net realized gain (loss)

     40,405,349        (510,849,455     (102,062,676     (143,347,095     (6,427,432

Net unrealized appreciation/depreciation

     69,925,517        95,054,422        94,714,609        49,261,238        77,324,854   
  

 

 

 

Net Assets

   $ 272,183,460      $ 974,436,566      $ 592,938,503      $ 649,406,995      $ 375,135,625   
  

 

 

 

Net asset value7

   $ 34.94      $ 8.86      $ 10.37      $ 13.94      $ 22.19   
  

 

 

 

1 Consolidated Statement of Assets and Liabilities.

          

2 Investments at cost — unaffiliated

   $ 193,466,167      $ 876,743,346      $ 478,206,377      $ 567,646,783      $ 285,230,957   

3 Securities loaned at value

   $ 260,586      $ 9,690,661      $ 64,168                 

4 Investments at cost — affiliated

   $ 9,167,290      $ 10,177,930      $ 24,932,527      $ 36,702,308      $ 12,817,865   

5 Foreign currency/Foreign bank overdraft at cost

   $ 120,518      $ 2,248,714      $ 94,422      $ (58,566   $ 190,218   

6 Premiums received

   $ 2,086,319      $ 12,221,364      $ 4,432,487      $ 3,956,279      $ 2,198,766   

7 Shares outstanding, unlimited number of shares authorized, $0.001 par value

     7,788,926        109,989,277        57,173,280        46,575,310        16,906,964   

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    107


Table of Contents
Statements of Operations     

 

Six Months Ended April 30, 2014 (Unaudited)    BlackRock
Dividend Income
Trust (BQY)
    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)
 
            
Investment Income                                                 

Dividends — unaffiliated

   $ 1,415,805      $ 1,358,111      $ 7,980,228      $ 23,945,550      $ 22,157,689      $ 13,976,515   

Foreign taxes withheld

     (34,604     (74,049     (402,713     (220,621     (255,723     (582,311

Dividends — affiliated

     856        1,326        10,556        3,966        9,059        5,179   

Securities lending — affiliated — net

            1,261                             63,183   

Other income — affiliated

     1,802        3,778        7,901        843        7,663        7,530   
  

 

 

 

Total income

     1,383,859        1,290,427        7,595,972        23,729,738        21,918,688        13,470,096   
  

 

 

 
            
Expenses                                                 

Investment advisory

     322,082        677,889        4,885,618        2,873,903        6,495,798        5,745,700   

Custodian

     50,075        49,965        66,769        38,983        109,888        148,325   

Professional

     23,906        28,078        27,133        84,577        45,247        36,546   

Transfer agent

     14,540        16,821        57,546        45,475        103,241        78,354   

Officer and Trustees

     4,937        5,490        60,248        35,941        113,039        85,299   

Printing

     3,364        4,058        19,521        16,525        33,718        23,850   

Insurance

     2,075        3,289        19,517        9,972        27,362        19,522   

Registration

     1,321        4,609        4,506        7,467        30,422        11,759   

Licensing

     64,417                                      

Miscellaneous

     19,056        16,508        11,273        10,767        13,903        38,226   
  

 

 

 

Total expenses

     505,773        806,707        5,152,131        3,123,610        6,972,618        6,187,581   

Less fees waived by Manager

     (1,454     (30,442     (17,438     (6,892     (17,620     (9,395
  

 

 

 

Total expenses after fees waived

     504,319        776,265        5,134,693        3,116,718        6,954,998        6,178,186   
  

 

 

 

Net investment income

     879,540        514,162        2,461,279        20,613,020        14,963,690        7,291,910   
  

 

 

 
            
Realized and Unrealized Gain (Loss)                                                 

Net realized gain (loss) from:

            

Investments — unaffiliated

     3,175,586        (5,322,643     69,784,243        8,691,326        (6,477,750     23,624,024   

Options written

     (662     432,783        4,100,785        8,747,295        6,164,737        18,367,345   

Foreign currency transactions

     3,821        (21,381     3,162        74,355        10,080        318,475   
  

 

 

 
     3,178,745        (4,911,241     73,888,190        17,512,976        (302,933     42,309,844   
  

 

 

 

Net change in unrealized appreciation/depreciation on:

            

Investments — unaffiliated

     1,135,823        9,684,020        (23,890,662     (5,181,531     81,831,129        (24,951,630

Options written

     38,926        (31,903     (8,393,919     3,488,224        3,566,337        3,196,023   

Foreign currency translations

     1,358        1,935        154        (31,616     80        (144,536
  

 

 

 
     1,176,107        9,654,052        (32,284,427     (1,724,923     85,397,546        (21,900,143
  

 

 

 

Total realized and unrealized gain

     4,354,852        4,742,811        41,603,763        15,788,053        85,094,613        20,409,701   
  

 

 

 

Net Increase in Net Assets Resulting from Operations

   $ 5,234,392      $ 5,256,973      $ 44,065,042      $ 36,401,073      $ 100,058,303      $ 27,701,611   
  

 

 

 

 

See Notes to Financial Statements.

 

108    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Statements of Operations (concluded)     

 

Six Months Ended April 30, 2014 (Unaudited)    BlackRock
Health
Sciences
Trust (BME)
    BlackRock
International
Growth and
Income
Trust (BGY)
    BlackRock
Real Asset
Equity
Trust (BCF)
    BlackRock
Resources &
Commodities
Strategy
Trust (BCX)1
    BlackRock
Utility and
Infrastructure
Trust (BUI)
 
          
Investment Income                                         

Dividends — unaffiliated

   $ 1,838,471      $ 14,234,983      $ 6,585,898      $ 7,379,451      $ 6,730,875   

Foreign taxes withheld

     (86,615     (868,004     (208,860     (427,440     (244,001

Dividends — affiliated

     1,515        4,500        4,174        4,729        1,958   

Securities lending — affiliated — net

     359        48,630        161                 

Other income — affiliated

     2,267        7,166        3,498        21,128        3,288   
  

 

 

 

Total income

     1,755,997        13,427,275        6,384,871        6,977,868        6,492,120   
  

 

 

 
          
Expenses                                         

Investment advisory

     1,365,470        4,933,112        3,414,387        3,727,318        1,754,401   

Custodian

     62,860        166,603        81,618        60,929        72,141   

Professional

     27,271        37,590        28,832        36,520        32,645   

Transfer agent

     19,938        69,690        51,840        43,777        25,256   

Officer and Trustees

     13,247        75,310        44,401        29,891        16,590   

Printing

     6,937        21,220        11,962        7,750        8,874   

Insurance

     5,326        28,544        16,667        7,942        4,347   

Registration

     4,549        18,614        7,543        7,789        4,474   

Miscellaneous

     9,771        67,201        21,853        6,676        24,036   
  

 

 

 

Total expenses

     1,515,369        5,417,884        3,679,103        3,928,592        1,942,764   

Less fees waived by Manager

     (2,456     (254,046     (149,554     (629,967     (3,359
  

 

 

 

Total expenses after fees waived

     1,512,913        5,163,838        3,529,549        3,298,625        1,939,405   
  

 

 

 

Net investment income

     243,084        8,263,437        2,855,322        3,679,243        4,552,715   
  

 

 

 
          
Realized and Unrealized Gain (Loss)                                         

Net realized gain (loss) from:

          

Investments — unaffiliated

     25,722,248        42,377,055        1,654,903        (12,714,643     344,015   

Options written

     1,421,480        7,501,228        3,073,991        1,802,049        (1,430,345

Foreign currency transactions

     50,101        574,414        512        (86,499     9,923   
  

 

 

 
     27,193,829        50,452,697        4,729,406        (10,999,093     (1,076,407
  

 

 

 

Net change in unrealized appreciation/depreciation on:

          

Investments — unaffiliated

     (5,165,036     (47,073,467     21,488,285        50,653,830        31,945,791   

Options written

     (588,708     4,017,024        (1,780,573     (3,011,396     626,003   

Foreign currency translations

     (4,163     (35,289     364        3,341        19,784   
  

 

 

 
     (5,757,907     (43,091,732     19,708,076        47,645,775        32,591,578   
  

 

 

 

Total realized and unrealized gain

     21,435,922        7,360,965        24,437,482        36,646,682        31,515,171   
  

 

 

 

Net Increase in Net Assets Resulting from Operations

   $ 21,679,006      $ 15,624,402      $ 27,292,804      $ 40,325,925      $ 36,067,886   
  

 

 

 

 

  1

Consolidated Statement of Operations.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    109


Table of Contents
Statements of Changes in Net Assets     

 

     BlackRock
Dividend Income
Trust (BQY)
    BlackRock
EcoSolutions  Investment
Trust (BQR)
 
Increase (Decrease) in Net Assets:    Six Months
Ended
April 30,
2014
(Unaudited)
    Year Ended
October 31,
2013
    Six Months
Ended
April 30,
2014
(Unaudited)
    Year Ended
October 31,
2013
 
        
Operations                                 

Net investment income

   $ 879,540      $ 1,911,679      $ 514,162      $ 1,147,375   

Net realized gain (loss)

     3,178,745        4,615,388        (4,911,241     1,515,988   

Net change in unrealized appreciation/depreciation

     1,176,107        4,941,159        9,654,052        6,617,063   
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     5,234,392        11,468,226        5,256,973        9,280,426   
  

 

 

   

 

 

 
        
Dividends and Distributions to Shareholders                                 

Net investment income

     (2,775,193 )1      (1,708,290 )2      (4,504,358 )1      (1,031,216 )2 

Net realized gains

            (3,962,756 )2               

Return of capital

                          (7,977,500 )2 
  

 

 

   

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (2,775,193     (5,671,046     (4,504,358     (9,008,716
  

 

 

   

 

 

 
        
Net Assets                                 

Total increase in net assets

     2,459,199        5,797,180        752,615        271,710   

Beginning of period

     86,983,349        81,186,169        115,137,640        114,865,930   
  

 

 

   

 

 

 

End of period

   $ 89,442,548      $ 86,983,349      $ 115,890,255      $ 115,137,640   
  

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income, end of period

   $ (1,711,885   $ 183,768      $ (3,990,196       
  

 

 

   

 

 

 

 

  1

A portion of the dividends from net investment income maybe deemed a return of capital or net realized gain at fiscal year end.

 

  2

Determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

110    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Statements of Changes in Net Assets (continued)     

 

     BlackRock
Energy and
Resources Trust (BGR)
    BlackRock
Enhanced Capital and
Income Fund, Inc. (CII)
 
Increase (Decrease) in Net Assets:   

Six Months
Ended

April 30,
2014
(Unaudited)

    Year Ended
October 31,
2013
    Six Months
Ended
April 30,
2014
(Unaudited)
    Year Ended
October 31,
2013
 
        
Operations                                 

Net investment income

   $ 2,461,279      $ 3,487,794      $ 20,613,020      $ 13,662,033   

Net realized gain

     73,888,190        137,486,490        17,512,976        41,586,734   

Net change in unrealized appreciation/depreciation

     (32,284,427     31,425,100        (1,724,923     50,511,787   
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     44,065,042        172,399,384        36,401,073        105,760,554   
  

 

 

   

 

 

 
        
Dividends and Distributions to Shareholders                                 

Net investment income

     (98,526,178 )1             (26,472,840 )1      (13,908,365 )2 

Net realized gains

            (48,221,272 )2               

Return of capital

                          (39,037,315 )2 
  

 

 

   

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (98,526,178     (48,221,272     (26,472,840     (52,945,680
  

 

 

   

 

 

 
        
Net Assets                                 

Total increase (decrease) in net assets

     (54,461,136     124,178,112        9,928,233        52,814,874   

Beginning of period

     896,634,870        772,456,758        675,472,019        622,657,145   
  

 

 

   

 

 

 

End of period

   $ 842,173,734      $ 896,634,870      $ 685,400,252      $ 675,472,019   
  

 

 

   

 

 

 

Distributions in excess of net investment income, end of period

   $ (98,847,386   $ (2,782,487   $ (5,897,076   $ (37,256
  

 

 

   

 

 

 

 

  1

A portion of the dividends from net investment income maybe deemed a return of capital or net realized gain at fiscal year end.

 

  2

Determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    111


Table of Contents
Statements of Changes in Net Assets (continued)     

 

     BlackRock
Enhanced Equity
Dividend Trust (BDJ)
    BlackRock
Global Opportunities
Equity Trust (BOE)
 
Increase (Decrease) in Net Assets:   

Six Months

Ended

April 30,

2014

(Unaudited)

   

Year Ended
October 31,

2013

   

Six Months
Ended

April 30,

2014

(Unaudited)

   

Year Ended
October 31,

2013

 
        
Operations                                 

Net investment income

   $ 14,963,690      $ 32,816,080      $ 7,291,910      $ 8,382,978   

Net realized gain (loss)

     (302,933     117,623,639        42,309,844        109,951,890   

Net change in unrealized appreciation/depreciation

     85,397,546        54,197,961        (21,900,143     86,145,100   
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     100,058,303        204,637,680        27,701,611        204,479,968   
  

 

 

   

 

 

 
        
Dividends and Distributions to Shareholders                                 

Net investment income

     (50,255,172 )1      (32,582,758 )2      (43,308,854 )1      (11,468,669 )2 

Distributions in excess of net investment income3

            (35,787,362 )2             (63,152,174 )2 

Net realized gains

            (32,140,223 )2               

Return of capital

                          (11,996,866 )2 
  

 

 

   

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (50,255,172     (100,510,343     (43,308,854     (86,617,709
  

 

 

   

 

 

 
        
Net Assets                                 

Total increase (decrease) in net assets

     49,803,131        104,127,337        (15,607,243     117,862,259   

Beginning of period

     1,594,223,376        1,490,096,039        1,159,072,267        1,041,210,008   
  

 

 

   

 

 

 

End of period

   $ 1,644,026,507      $ 1,594,223,376      $ 1,143,465,024      $ 1,159,072,267   
  

 

 

   

 

 

 

Distributions in excess of net investment income, end of period

   $ (35,892,255   $ (600,773   $ (38,496,228   $ (2,479,284
  

 

 

   

 

 

 

 

  1

A portion of the dividends from net investment income maybe deemed a return of capital or net realized gain at fiscal year end.

 

  2

Determined in accordance with federal income tax regulations.

 

  3

Taxable distribution.

 

See Notes to Financial Statements.

 

112    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Statements of Changes in Net Assets (continued)     

 

     BlackRock
Health Sciences
Trust (BME)
    BlackRock
International Growth
and Income Trust (BGY)
 
Increase (Decrease) in Net Assets:   

Six Months
Ended

April 30,

2014
(Unaudited)

    Year Ended
October 31,
2013
   

Six Months
Ended

April 30,

2014
(Unaudited)

    Year Ended
October 31,
2013
 
        
Operations                                 

Net investment income

   $ 243,084      $ 923,733      $ 8,263,437      $ 14,055,907   

Net realized gain

     27,193,829        24,717,008        50,452,697        72,629,297   

Net change in unrealized appreciation/depreciation

     (5,757,907     43,710,073        (43,091,732     72,416,478   
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     21,679,006        69,350,814        15,624,402        159,101,682   
  

 

 

   

 

 

 
        
Dividends and Distributions to Shareholders                                 

Net investment income

     (21,450,045 )1      (446,759 )2      (36,923,400 )1      (18,226,947 )2 

Net realized gains

            (17,987,036 )2               

Return of capital

                          (55,619,854 )2 
  

 

 

   

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (21,450,045     (18,433,795     (36,923,400     (73,846,801
  

 

 

   

 

 

 
        
Capital Share Transactions                                 

Reinvestment of dividends

     1,793,000        867,486                 
  

 

 

   

 

 

 
        
Net Assets                                 

Total increase (decrease) in net assets

     2,021,961        51,784,505        (21,298,998     85,254,881   

Beginning of period

     270,161,499        218,376,994        995,735,564        910,480,683   
  

 

 

   

 

 

 

End of period

   $ 272,183,460      $ 270,161,499      $ 974,436,566      $ 995,735,564   
  

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income, end of period

   $ (20,740,167   $ 466,794      $ (30,769,824   $ (2,109,861
  

 

 

   

 

 

 

 

  1

A portion of the dividends from net investment income maybe deemed a return of capital or net realized gain at fiscal year end.

 

  2

Determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    113


Table of Contents
Statements of Changes in Net Assets (continued)     

 

     BlackRock
Real Asset
Equity Trust (BCF)
    BlackRock Resources
& Commodities
Strategy Trust (BCX)1
 
Increase (Decrease) in Net Assets:   

Six Months
Ended

April 30,

2014
(Unaudited)

    Year Ended
October 31,
2013
   

Six Months
Ended

April 30,

2014
(Unaudited)

    Year Ended
October 31,
2013
 
        
Operations                                 

Net investment income

   $ 2,855,322      $ 6,199,566      $ 3,679,243      $ 11,454,960   

Net realized gain (loss)

     4,729,406        (10,322,502     (10,999,093     (65,371,790

Net change in unrealized appreciation/depreciation

     19,708,076        9,610,522        47,645,775        20,545,737   
  

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

     27,292,804        5,487,586        40,325,925        (33,371,093
  

 

 

   

 

 

 
        
Dividends and Distributions to Shareholders                                 

Net investment income

     (19,987,779 )2      (6,692,838 )3      (21,536,423 )2      (6,452,839 )3 

Return of capital

            (43,962,688 )3             (47,574,521 )3 
  

 

 

   

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (19,987,779     (50,655,526     (21,536,423     (54,027,360
  

 

 

   

 

 

 
        
Net Assets                                 

Total increase (decrease) in net assets

     7,305,025        (45,167,940     18,789,502        (87,398,453

Beginning of period

     585,633,478        630,801,418        630,617,493        718,015,946   
  

 

 

   

 

 

 

End of period

   $ 592,938,503      $ 585,633,478      $ 649,406,995      $ 630,617,493   
  

 

 

   

 

 

 

Distributions in excess of net investment income, end of period

   $ (20,767,572   $ (3,635,115   $ (22,274,085   $ (4,416,905
  

 

 

   

 

 

 

 

  1

Consolidated Statements of Changes in Net Assets.

 

  2

A portion of the dividends from net investment income maybe deemed a return of capital or net realized gain at fiscal year end.

 

  3

Determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

114    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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,

2014
(Unaudited)

    Year Ended
October 31,
2013
 
    
Operations                 

Net investment income

   $ 4,552,715      $ 9,640,424   

Net realized gain (loss)

     (1,076,407     6,418,044   

Net change in unrealized appreciation/depreciation

     32,591,578        17,842,699   
  

 

 

 

Net increase in net assets resulting from operations

     36,067,886        33,901,167   
  

 

 

 
    
Dividends and Distributions to Shareholders                 

Net investment income

     (12,257,549 )1      (8,709,264 )2 

Net realized gains

            (7,173,603 )2 

Return of capital

            (8,632,231 )2 
  

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (12,257,549     (24,515,098
  

 

 

 
    
Net Assets                 

Total increase in net assets

     23,810,337        9,386,069   

Beginning of period

     351,325,288        341,939,219   
  

 

 

 

End of period

   $ 375,135,625      $ 351,325,288   
  

 

 

 

Undistributed (distributions in excess of) net investment income, end of period

   $ (6,140,281   $ 1,564,553   
  

 

 

 

 

  1

A portion of the dividends from net investment income maybe deemed a return of capital or net realized gain at fiscal year end.

 

  2

Determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    115


Table of Contents
Statements of Cash Flows     

 

 

Six Months Ended April 30, 2014 (Unaudited)    BlackRock
Dividend
Income
Trust (BQY)
    BlackRock
EcoSolutions
Investment
Trust (BQR)
    BlackRock
Energy and
Resources
Trust (BGR)
    BlackRock
Enhanced
Capital and
Income
Fund, Inc. (CII)
 
        
Cash Provided by Operating Activities                                 

Net increase in net assets resulting from operations

   $ 5,234,392      $ 5,256,973      $ 44,065,042      $ 36,401,073   

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

        

Decrease in dividends receivable — affiliated

            160        860        172   

Decrease (increase) in dividends receivable

     (33,716     (168,138     342,525        (910,759

Decrease in securities lending income receivable — affiliated

            (482              

Increase in other assets

     (1,645     (4,652     (11,156     (16,315

Decrease in cash pledged as collateral for OTC derivatives

                          500,000   

Increase in investment advisory fees payable

     (220     (3,515     (99,100     (4,550

Increase (decrease) in Officer’s and Trustees’ fees payable

     706        (1     38,531        17,501   

Increase (decrease) in other accrued expenses payable

     15,170        (2,964     (6,828     (117,398

Net realized (gain) loss on investments, options written and foreign currency transactions

     (3,174,924     4,889,860        (73,885,028     (17,438,621

Net unrealized (gain) loss on investments, options written and foreign currency translations

     (1,174,743     (9,660,384     32,284,582        1,694,131   

Premiums received from options written

     2,087,214        3,639,258        20,554,488        31,108,904   

Premiums paid on closing options written

     (1,532,693     (2,858,334     (16,613,014     (13,121,850

Proceeds from sales of long-term investments

     34,930,712        49,101,199        654,477,272        437,125,453   

Purchases of long-term investments

     (34,215,616     (48,560,148     (591,888,025     (467,989,087

Net (purchases) sales of short-term securities

     669,938        3,502,311        29,346,976        17,278,451   
  

 

 

 

Cash provided by operating activities

     2,804,575        5,131,143        98,607,125        24,527,105   
  

 

 

 
        
Cash Used for Financing Activities                                 

Decrease in bank overdraft/foreign bank overdraft

            (618,888            (119,260

Cash dividends paid to shareholders

     (2,775,193     (4,504,358     (98,526,178     (26,472,840
  

 

 

 

Cash used for financing activities

     (2,775,193     (5,123,246     (98,526,178     (26,592,100
  

 

 

 
        
Cash Impact from Foreign Exchange Fluctuations                                 

Cash impact from foreign exchange fluctuations

     (25     8,267        (1     2,179   
  

 

 

 
        
Cash and Foreign Currency                                 

Net increase (decrease) in cash and foreign currency

     29,357        16,164        80,946        (2,062,816

Cash and foreign currency at beginning of period

     21,069               110,962        2,068,537   
  

 

 

 

Cash and foreign currency at end of period

   $ 50,426      $ 16,164      $ 191,908      $ 5,721   
  

 

 

 

 

See Notes to Financial Statements.

 

116    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Statements of Cash Flows (continued)     

 

Six Months Ended April 30, 2014 (Unaudited)    BlackRock
Enhanced
Equity
Dividend
Trust (BDJ)
   

BlackRock
Global
Opportunities
Equity

Trust (BOE)

    BlackRock
Health
Sciences
Trust (BME)
   

BlackRock
International
Growth and
Income

Trust (BGY)

 
        
Cash Provided by Operating Activities                                 

Net increase in net assets resulting from operations

   $ 100,058,303      $ 27,701,611      $ 21,679,006      $ 15,624,402   

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

        

Decrease (increase) in dividends receivable — affiliated

     217        183        (114     287   

Decrease (increase) in dividends receivable

     244,848        194,518        57,876        (514,010

Increase in securities lending income receivable — affiliated

            (30,912     (221     (21,987

Decrease (increase) in other assets

     (48,259     344,817        (10,035     (18,275

Increase in cash pledged as collateral for OTC derivatives

                          (2,020,504

Increase in cash pledged as collateral for exchange-traded options written

                   (1,892,100     (4,050,000

Increase (decrease) in investment advisory fees payable

     4,440        (34,841     (6,371     (31,760

Increase in collateral on securities loaned at value

            9,198,761        287,000        10,177,930   

Increase in Officer’s and Trustees’ fees payable

     69,090        53,654        155        48,339   

Increase (decrease) in other accrued expenses payable

     17,517        (39,920     (16,933     (43,599

Net realized (gain) loss on investments, options written and foreign currency transactions

     313,013        (41,991,369     (27,143,728     (49,878,283

Net unrealized (gain) loss on investments, options written and foreign currency translations

     (85,397,386     21,652,656        5,753,753        43,030,820   

Premiums received from options written

     53,946,547        56,028,222        9,511,509        45,091,288   

Premiums paid on closing options written

     (32,733,155     (28,448,251     (7,378,000     (31,760,242

Proceeds from sales of long-term investments

     923,695,444        1,210,168,669        185,371,492        965,092,331   

Purchases of long-term investments

     (920,517,103     (1,222,749,306     (158,393,386     (970,539,804

Net (purchases) sales of short-term securities

     10,669,033        18,121,257        (8,022,628     12,168,800   
  

 

 

 

Cash provided by operating activities

     50,322,549        50,169,749        19,797,275        32,355,733   
  

 

 

 
        
Cash Used for Financing Activities                                 

Increase (decrease) in bank overdraft

            (295            3,765,642   

Cash dividends paid to shareholders

     (50,255,172     (43,308,854     (19,657,045     (36,923,400
  

 

 

 

Cash used for financing activities

     (50,255,172     (43,309,149     (19,657,045     (33,157,758
  

 

 

 
        
Cash Impact from Foreign Exchange Fluctuations                                 

Cash impact from foreign exchange fluctuations

     (80     109,213        (9     15,310   
  

 

 

 
        
Cash and Foreign Currency                                 

Net increase (decrease) in cash and foreign currency

     67,297        6,969,813        140,221        (786,715

Cash and foreign currency at beginning of period

     9,110        4,043,358        2,498        3,042,040   
  

 

 

 

Cash and foreign currency at end of period

   $ 76,407      $ 11,013,171      $ 142,719      $ 2,255,325   
  

 

 

 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    117


Table of Contents
Statements of Cash Flows (concluded)     

 

Six Months Ended April 30, 2014 (Unaudited)   

BlackRock
Real Asset
Equity

Trust (BCF)

    BlackRock
Resources &
Commodities
Strategy
Trust (BCX)1
    BlackRock
Utility and
Infrastructure
Trust (BUI)
 
      
Cash Provided by Operating Activities                         

Net increase in net assets resulting from operations

   $ 27,292,804      $ 40,325,925      $ 36,067,886   

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

      

Decrease in dividends receivable — affiliated

     157        68        339   

Decrease in dividends receivable

     189,207        326,504        350,618   

Increase in securities lending income receivable — affiliated

     (161              

Increase in other assets

     (11,892     (17,934     (10,089

Increase (decrease) in investment advisory fees payable

     (15,936     (7,831     10,907   

Increase (decrease) in Officer’s and Trustees’ fees payable

     29,237        (364     (571

Decrease in other accrued expenses payable

     (12,357     (37,141     (25,451

Net realized (gain) loss on investments, options written and foreign currency transactions

     (4,728,894     10,912,594        1,086,330   

Net unrealized (gain) loss on investments, options written and foreign currency translations

     (19,707,857     (47,642,643     (32,566,237

Premiums received from options written

     16,382,677        14,441,371        7,390,483   

Premiums paid on closing options written

     (10,954,206     (9,990,499     (6,900,487

Proceeds from sales of long-term investments

     266,860,818        284,116,395        109,998,954   

Purchases of long-term investments

     (251,689,813     (263,884,050     (106,332,709

Net (purchases) sales of short-term securities

     (3,698,393     (7,285,353     2,902,137   
  

 

 

 

Cash provided by operating activities

     19,935,391        21,257,042        11,972,110   
  

 

 

 
      
Cash Used for Financing Activities                         

Increase (decrease) in bank overdraft

            58,695        (990,610

Cash dividends paid to shareholders

     (19,987,779     (21,536,423     (12,257,549
  

 

 

 

Cash used for financing activities

     (19,987,779     (21,477,728     (13,248,159
  

 

 

 
      
Cash Impact from Foreign Exchange Fluctuations                         

Cash impact from foreign exchange fluctuations

     3               (5,557
  

 

 

 
      
Cash and Foreign Currency                         

Net decrease in cash and foreign currency

     (52,385     (220,686     (1,281,606

Cash and foreign currency at beginning of period

     161,820        246,181        1,495,501   
  

 

 

 

Cash and foreign currency at end of period

   $ 109,435      $ 25,495      $ 213,895   
  

 

 

 

 

  1

Consolidated Statement of Cash Flows.

 

See Notes to Financial Statements.

 

118    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Financial Highlights      BlackRock Dividend Income Trust (BQY)   

 

     

Six Months
Ended
April 30,
2014

(Unaudited)

    Year Ended October 31,  
       2013     2012     2011     2010     2009  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 14.42      $ 13.46      $ 13.61      $ 14.26      $ 13.38      $ 12.38   
  

 

 

 

Net investment income1

     0.15        0.32        0.33        0.35        0.33        0.36   

Net realized and unrealized gain (loss)

     0.72        1.58        (0.79     (0.00 )2      1.36        1.43   
  

 

 

 

Net increase from investment operations

     0.87        1.90        1.12        0.35        1.69        1.79   
  

 

 

 

Dividends and distributions:

            

Net investment income

     (0.46 )3      (0.28 )4      (0.67 )4      (0.22 )4      (0.11 )4      (0.35 )4,5 

Distributions in excess of net investment income6

                                        (0.04 )4,5 

Net realized gain

            (0.66 )4      (0.60 )4      (0.78 )4      (0.70 )4      (0.33 )4 

Return of capital

                                        (0.07 )4 
  

 

 

 

Total dividends and distributions

     (0.46     (0.94     (1.27     (1.00     (0.81     (0.79
  

 

 

 

Net asset value, end of period

   $ 14.83      $ 14.42      $ 13.46      $ 13.61      $ 14.26      $ 13.38   
  

 

 

 

Market price, end of period

   $ 13.34      $ 12.84      $ 12.34      $ 12.43      $ 13.44      $ 11.54   
  

 

 

 
            
Total Investment Return7                                                 

Based on net asset value

     6.58 %8      15.50     9.48     2.79     14.08     17.64
  

 

 

 

Based on market price

     7.67 %8      12.18     9.90     (0.40 )%      24.67     19.63
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.18 %9      1.19     1.18     1.19     1.23     1.17
  

 

 

 

Total expenses after fees waived

     1.17 %9      1.18     1.18     1.19     1.22     1.16
  

 

 

 

Net investment income

     2.05 %9      2.29     2.50     2.45     2.40     3.39
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 89,443      $ 86,893      $ 81,186      $ 82,096      $ 86,047      $ 80,716   
  

 

 

 

Portfolio turnover

     40     103     129     97     59     64
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

Amount is less than $(0.005) per share.

 

  3 

A portion of the dividends from net investment income may be deemed a return of capital or net realized gain at fiscal year end.

 

  4 

Determined in accordance with federal income tax regulations.

 

  5 

The amount of dividends and distributions to shareholders from net investment income reported in October 31, 2009 has been reclassified to allocate the amount between distributions from net investment income and distributions in excess of net investment income; both of which were included in the prior year net investment income in the amount of $0.39.

 

  6 

Taxable distribution.

 

  7 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  8 

Aggregate total investment return.

 

  9 

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    119


Table of Contents
Financial Highlights      BlackRock EcoSolutions Investments Trust (BQR)   

 

 

     

Six Months
Ended
April 30,
2014

(Unaudited)

    Year Ended October 31,  
       2013     2012     2011     2010     2009  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 9.16      $ 9.14      $ 9.38      $ 10.65      $ 10.56      $ 10.23   
  

 

 

 

Net investment income1

     0.04        0.09        0.08        0.10        0.05        0.06   

Net realized and unrealized gain (loss)

     0.38        0.65        0.56        (0.30     1.24        1.78   
  

 

 

 

Net increase (decrease) from investment operations

     0.42        0.74        0.64        (0.20     1.29        1.84   
  

 

 

 

Dividends and distributions:

            

Net investment income

     (0.36 )2      (0.08 )3      (0.07 )3      (0.11 )3      (0.05 )3      (0.07 )3 

Net realized gain

                                        (0.09 )3 

Return of capital

            (0.64 )3      (0.81 )3      (0.96 )3      (1.15 )3      (1.35 )3 
  

 

 

 

Total dividends and distributions

     (0.36     (0.72     (0.88     (1.07     (1.20     (1.51
  

 

 

 

Net asset value, end of period

   $ 9.22      $ 9.16      $ 9.14      $ 9.38      $ 10.65      $ 10.56   
  

 

 

 

Market price, end of period

   $ 8.15      $ 7.93      $ 8.66      $ 8.58      $ 11.69      $ 10.23   
  

 

 

 
            
Total Investment Return4                                                 

Based on net asset value

     5.24 %5      9.08     7.77     (2.13 )%      13.04     19.64
  

 

 

 

Based on market price

     7.46 %5      (0.34 )%      11.63     (18.45 )%      28.08     28.88
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.43 %6      1.44     1.44     1.40     1.45     1.51
  

 

 

 

Total expenses after fees waived

     1.37 %6      1.41     1.43     1.40     1.45     1.50
  

 

 

 

Net investment income

     0.91 %6      0.98     0.92     0.98     0.47     0.65
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 115,890      $ 115,138      $ 114,866      $ 117,497      $ 131,002      $ 127,025   
  

 

 

 

Portfolio turnover

     43     94     107     86     124     62
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a return of capital or net realized gain at fiscal year end.

 

  3 

Determined in accordance with federal income tax regulations.

 

  4 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  5 

Aggregate total investment return.

 

  6 

Annualized.

 

See Notes to Financial Statements.

 

120    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Financial Highlights      BlackRock Energy and Resources Trust (BGR)   

 

    

Six Months
Ended
April 30,
2014

(Unaudited)

    Year Ended October 31,  
       2013     2012     2011     2010     2009  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 30.12      $ 25.95      $ 28.33      $ 25.87      $ 23.81      $ 20.71   
  

 

 

 

Net investment income1

     0.08        0.12        0.13        0.06        0.26        0.41   

Net realized and unrealized gain (loss)

     1.40        5.67        (0.74     4.02        3.42        4.32   
  

 

 

 

Net increase (decrease) from investment operations

     1.48        5.79        (0.61     4.08        3.68        4.73   
  

 

 

 

Dividends and distributions:

            

Net investment income

     (3.31 )2             (0.03 )3      (0.24 )3      (0.17 )3      (0.47 )3 

Net realized gain

            (1.62 )3      (1.44 )3      (1.38 )3      (1.45 )3      (0.19 )3 

Return of capital

                   (0.30 )3                    (0.97 )3 
  

 

 

 

Total dividends and distributions

     (3.31     (1.62     (1.77     (1.62     (1.62     (1.63
  

 

 

 

Net asset value, end of period

   $ 28.29      $ 30.12      $ 25.95      $ 28.33      $ 25.87      $ 23.81   
  

 

 

 

Market price, end of period

   $ 25.05      $ 26.82      $ 24.28      $ 26.54      $ 25.36      $ 22.18   
  

 

 

 
            
Total Investment Return4                                                 

Based on net asset value

     6.83 %5      23.68     (1.76 )%      16.09     15.89     25.54
  

 

 

 

Based on market price

     6.23 %5      17.70     (1.88 )%      10.95     21.95     34.63
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.27 %6      1.26     1.28     1.26     1.27     1.30
  

 

 

 

Total expenses after fees waived

     1.26 %6      1.25     1.22     1.15     1.11     1.10
  

 

 

 

Net investment income

     0.60 %6      0.42     0.50     0.19     1.04     1.77
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 842,174      $ 896,635      $ 772,457      $ 843,328      $ 769,976      $ 708,589   
  

 

 

 

Portfolio turnover

     69     132     86     111     80     62
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a return of capital or net realized gain at fiscal year end.

 

  3 

Determined in accordance with federal income tax regulations.

 

  4 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  5 

Aggregate total investment return.

 

  6 

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    121


Table of Contents
Financial Highlights      BlackRock Enhanced Capital and Income Fund, Inc. (CII)   

 

    

Six Months
Ended
April 30,
2014

(Unaudited)

    Year Ended October 31,  
       2013     2012     2011     2010     2009  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 15.31      $ 14.11      $ 13.87      $ 14.53      $ 14.40      $ 13.78   
  

 

 

 

Net investment income1

     0.47        0.31        0.33        0.35        0.31        0.29   

Net realized and unrealized gain

     0.35        2.09        1.29        0.68        1.76        2.27   
  

 

 

 

Net increase from investment operations

     0.82        2.40        1.62        1.03        2.07        2.56   
  

 

 

 

Dividends and distributions:

            

Net investment income

     (0.60 )2      (0.32 )3      (0.33 )3,4      (0.35 )3,4      (0.31 )3      (0.29 )3 

Distributions in excess of net investment income5

                   (0.20 )3,4      (0.23 )3,4               

Net realized gain

                   (0.13 )3      (1.11 )3      (1.33 )3      (1.19 )3 

Return of capital

            (0.88 )3      (0.72 )3             (0.30 )3      (0.46 )3 
  

 

 

 

Total dividends and distributions

     (0.60     (1.20     (1.38     (1.69     (1.94     (1.94
  

 

 

 

Net asset value, end of period

   $ 15.53      $ 15.31      $ 14.11      $ 13.87      $ 14.53      $ 14.40   
  

 

 

 

Market price, end of period

   $ 14.30      $ 13.52      $ 12.99      $ 12.39      $ 15.03      $ 13.76   
  

 

 

 
            
Total Investment Return6                                                 

Based on net asset value

     5.88 %7      18.97     12.94     7.56     15.22     22.01
  

 

 

 

Based on market price

     10.40 %7      14.11     16.39     (7.11 )%      24.73     29.88
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     0.92 %8      0.93     0.94     0.94     0.93     0.95
  

 

 

 

Total expenses after fees waived

     0.92 %8      0.93     0.94     0.93     0.93     0.95
  

 

 

 

Net investment income

     6.10 %8      2.15     2.34     2.40     2.14     (2.16 )% 
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 685,400      $ 675,472      $ 622,657      $ 612,145      $ 635,849      $ 618,462   
  

 

 

 

Portfolio turnover

     66     218     205     190     210     138
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a return of capital or net realized gain at fiscal year end.

 

  3 

Determined in accordance with federal income tax regulations.

 

  4 

The amount of dividends and distributions to shareholders from net investment income reported in October 31, 2012 and October 31, 2011 has been reclassified to allocate the amount between distributions from net investment income and distributions in excess of net investment income; both of which were included in the prior year net investment income in the amount of $0.53 and $0.58, respectively.

 

  5 

Taxable distribution.

 

  6 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  7 

Aggregate total investment return.

 

  8 

Annualized.

 

See Notes to Financial Statements.

 

122    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Financial Highlights      BlackRock Enhanced Equity Dividend Trust (BDJ)   

 

    

Six Months
Ended
April 30,
2014

(Unaudited)

    Year Ended October 31,  
       2013     2012     2011     2010     2009  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 8.88      $ 8.30      $ 8.03      $ 8.32      $ 8.13      $ 9.59   
  

 

 

 

Net investment income1

     0.08        0.18        0.18        0.16        0.17        0.25   

Net realized and unrealized gain (loss)

     0.48        0.96        0.77        0.38        1.00        (0.55
  

 

 

 

Net increase (decrease) from investment operations

     0.56        1.14        0.95        0.54        1.17        (0.30
  

 

 

 

Dividends and distributions:

            

Net investment income

     (0.28 )2      (0.18 )3      (0.18 )3,4      (0.16 )3,4      (0.17 )3      (0.25 )3 

Distributions in excess of net investment income5

            (0.20 )3      (0.22 )3,4      (0.35 )3,4               

Net realized gain

            (0.18 )3                             

Return of capital

                   (0.28 )3      (0.32 )3      (0.81 )3      (0.91 )3 
  

 

 

 

Total dividends and distributions

     (0.28     (0.56     (0.68     (0.83     (0.98     (1.16
  

 

 

 

Net asset value, end of period

   $ 9.16      $ 8.88      $ 8.30      $ 8.03      $ 8.32      $ 8.13   
  

 

 

 

Market price, end of period

   $ 8.10      $ 7.72      $ 7.41      $ 7.29      $ 8.99      $ 7.89   
  

 

 

 
            
Total Investment Return6                                                 

Based on net asset value

     6.81 %7      15.11     13.22     6.88     15.23     (1.63 )% 
  

 

 

 

Based on market price

     8.64 %7      12.09     11.34     (10.20 )%      28.30     8.08
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     0.87 %8      0.87     0.95     1.15     1.16     1.20
  

 

 

 

Total expenses after fees waived

     0.87 %8      0.87     0.95     1.14     1.16     1.20
  

 

 

 

Net investment income

     1.87 %8      2.13     2.16     1.92     2.06     3.11
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 1,644,027      $ 1,594,223      $ 1,490,096      $ 575,712      $ 592,328      $ 572,066   
  

 

 

 

Portfolio turnover

     55     180     185     231     232     117
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a return of capital or net realized gain at fiscal year end.

 

  3 

Determined in accordance with federal income tax regulations.

 

  4 

The amount of dividends and distributions to shareholders from net investment income reported in October 31, 2012 and October 31, 2011 has been reclassified to allocate the amount between distributions from net investment income and distributions in excess of net investment income; both of which were included in the prior year net investment income in the amount of $0.40 and $0.51, respectively.

 

  5 

Taxable distribution.

 

  6 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  7 

Aggregate total investment return.

 

  8 

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    123


Table of Contents
Financial Highlights      BlackRock Global Opportunities Equity Trust (BOE)   

 

    

Six Months
Ended
April 30,
2014

(Unaudited)

    Year Ended October 31,  
       2013     2012     2011     2010     2009  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 16.68      $ 14.99      $ 16.03      $ 18.68      $ 18.64      $ 18.03   
  

 

 

 

Net investment income1

     0.10        0.12        0.20        0.17        0.19        0.19   

Net realized and unrealized gain (loss)

     0.30        2.82        0.72        (0.54     2.13        2.70   
  

 

 

 

Net increase (decrease) from investment operations

     0.40        2.94        0.92        (0.37     2.32        2.89   
  

 

 

 

Dividends and distributions:

            

Net investment income

     (0.62 )2      (0.17 )3      (0.22 )3      (0.17 )3,4      (0.18 )3,4      (0.20 )3 

Distributions in excess of net investment income5

            (0.91 )3             (0.68 )3,4      (1.26 )3,4        

Net realized gain

                          (0.61 )3      (0.25 )3        

Return of capital

            (0.17 )3      (1.74 )3      (0.82 )3      (0.59 )3      (2.08 )3 
  

 

 

 

Total dividends and distributions

     (0.62     (1.25     (1.96     (2.28     (2.28     (2.28
  

 

 

 

Net asset value, end of period

   $ 16.46      $ 16.68      $ 14.99      $ 16.03      $ 18.68      $ 18.64   
  

 

 

 

Market price, end of period

   $ 14.78      $ 14.74      $ 13.24      $ 14.95      $ 19.06      $ 18.40   
  

 

 

 
            
Total Investment Return6                                                 

Based on net asset value

     2.91 %7      21.93     7.36     (2.55 )%      13.76     20.50
  

 

 

 

Based on market price

     4.57 %7      21.99     1.68     (10.93 )%      17.58     34.97
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.08 %8      1.08     1.10     1.10     1.11     1.21
  

 

 

 

Total expenses after fees waived

     1.08 %8      1.08     1.10     1.09     1.10     1.20
  

 

 

 

Net investment income

     1.27 %8      0.77     1.34     0.96     1.03     1.05
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 1,143,465      $ 1,159,072      $ 1,041,210      $ 1,113,920      $ 1,290,105      $ 1,278,170   
  

 

 

 

Portfolio turnover

     103     279     298     253     264     300
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a return of capital or net realized gain at fiscal year end.

 

  3 

Determined in accordance with federal income tax regulations.

 

  4 

The amount of dividends and distributions to shareholders from net investment income reported in October 31, 2011 and October 31, 2010 has been reclassified to allocate the amount between distributions from net investment income and distributions in excess of net investment income; both of which were included in the prior year net investment income in the amount of $0.85 and $1.44, respectively.

 

  5 

Taxable distribution.

 

  6 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  7 

Aggregate total investment return.

 

  8 

Annualized.

 

See Notes to Financial Statements.

 

124    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Financial Highlights      BlackRock Health Sciences Trust (BME)   

 

    

Six Months
Ended
April 30
2014

(Unaudited)

    Year Ended October 31,  
       2013     2012     2011     2010     2009  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 34.92      $ 28.34        26.65      $ 27.19      $ 25.37      $ 23.66   
  

 

 

 

Net investment income (loss)1

     0.03        0.12        0.08        (0.01     0.02        0.10   

Net realized and unrealized gain

     2.76        8.85        4.11        1.71        3.34        3.32   
  

 

 

 

Net increase from investment operations

     2.79        8.97        4.19        1.70        3.36        3.42   
  

 

 

 

Dividends and distributions:

            

Net investment income

     (2.77 )2      (0.06 )3      (0.09 )3             (0.02 )3      (0.13 )3 

Net realized gain

            (2.33 )3      (2.41 )3      (2.24 )3      (1.52 )3      (1.01 )3 

Return of capital

                                        (0.57 )3 
  

 

 

 

Total dividends and distributions

     (2.77     (2.39     (2.50     (2.24     (1.54     (1.71
  

 

 

 

Net asset value, end of period

   $ 34.94      $ 34.92      $ 28.34      $ 26.65      $ 27.19      $ 25.37   
  

 

 

 

Market price, end of period

   $ 35.66      $ 33.56      $ 27.86      $ 25.81      $ 27.14      $ 22.61   
  

 

 

 
            
Total Investment Return4                                                 

Based on net asset value

     8.17 %5      33.37     16.42     6.43     13.69     16.31
  

 

 

 

Based on market price

     14.88 %5      30.38     18.17     3.26     27.33     13.44
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.11 %6      1.12     1.13     1.14     1.15     1.15
  

 

 

 

Total expenses after fees waived

     1.11 %6      1.12     1.13     1.13     1.15     1.15
  

 

 

 

Net investment income (loss)

     0.18 %6      0.38     0.29     (0.02 )%      0.09     0.37
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 272,183      $ 270,161      $ 218,377      $ 202,675      $ 206,392      $ 192,602   
  

 

 

 

Portfolio turnover

     58     155     209     226     239     167
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a return of capital or net realized gain at fiscal year end.

 

  3 

Determined in accordance with federal income tax regulations.

 

  4 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  5 

Aggregate total investment return.

 

  6 

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    125


Table of Contents
Financial Highlights      BlackRock International Growth and Income Trust (BGY)   

 

    

Six Months
Ended
April 30,
2014

(Unaudited)

    Year Ended October 31,  
       2013     2012     2011     2010     2009  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 9.05      $ 8.28      $ 8.72      $ 10.52      $ 10.92      $ 10.41   
  

 

 

 

Net investment income1

     0.08        0.13        0.16        0.14        0.14        0.29   

Net realized and unrealized gain (loss)

     0.07        1.31        0.35        (0.58     1.05        2.04   
  

 

 

 

Net increase (decrease) from investment operations

     0.15        1.44        0.51        (0.44     1.19        2.33   
  

 

 

 

Dividends and distributions:

            

Net investment income

     (0.34 )2      (0.17 )3      (0.18 )3      (0.14 )3,4      (0.12 )3      (0.30 )3 

Distributions in excess of net investment income5

                          (0.53 )3,4               

Return of capital

            (0.50 )3      (0.77 )3      (0.69 )3      (1.47 )3      (1.52 )3 
  

 

 

 

Total dividends and distributions

     (0.34     (0.67     (0.95     (1.36     (1.59     (1.82
  

 

 

 

Net asset value, end of period

   $ 8.86      $ 9.05      $ 8.28      $ 8.72      $ 10.52      $ 10.92   
  

 

 

 

Market price, end of period

   $ 8.08      $ 8.14      $ 7.41      $ 7.88      $ 10.56      $ 10.92   
  

 

 

 
            
Total Investment Return6                                                 

Based on net asset value

     1.99 %7      19.25     7.65     (4.55 )%      12.06     26.28
  

 

 

 

Based on market price

     3.41 %7      19.86     6.61     (14.07 )%      12.49     44.62
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.10 %8      1.09     1.11     1.10     1.13     1.12
  

 

 

 

Total expenses after fees waived

     1.05 %8      1.07     1.11     1.10     1.13     1.12
  

 

 

 

Net investment income

     1.68 %8      1.49     1.97     1.37     1.40     2.68
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 974,437      $ 995,736      $ 910,481      $ 959,153      $ 1,156,583      $ 1,178,647   
  

 

 

 

Portfolio turnover

     97     266     226     217     247     198
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a return of capital or net realized gain at fiscal year end.

 

  3 

Determined in accordance with federal income tax regulations.

 

  4 

The amount of dividends and distributions to shareholders from net investment income reported in October 31, 2011 has been reclassified to allocate the amount between distributions from net investment income and distributions in excess of net investment income; both of which were included in the prior year net investment income in the amount of $0.67.

 

  5 

Taxable distribution.

 

  6 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  7 

Aggregate total investment return.

 

  8 

Annualized.

 

See Notes to Financial Statements.

 

126    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Financial Highlights      BlackRock Real Asset Equity Trust (BCF)   

 

    

Six Months
Ended
April 30,
2014

(Unaudited)

    Year Ended October 31,  
       2013     2012     2011     2010     2009  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 10.24      $ 11.03      $ 12.45      $ 13.42      $ 11.73      $ 9.44   
  

 

 

 

Net investment income1

     0.05        0.11        0.12        0.11        0.17        0.08   

Net realized and unrealized gain (loss)

     0.43        (0.01     (0.50     0.01        2.61        3.30   
  

 

 

 

Net increase (decrease) from investment operations

     0.48        0.10        (0.38     0.12        2.78        3.38   
  

 

 

 

Dividends and distributions:

            

Net investment income

     (0.35 )2      (0.12 )3      (0.13 )3      (0.07 )3,4      (0.26 )3,4      (0.11 )3 

Distributions in excess of net investment income5

                          (0.14 )3,4      (0.48 )3,4        

Net realized gain

                   (0.55 )3      (0.50 )3               

Return of capital

            (0.77 )3      (0.36 )3      (0.38 )3      (0.35 )3      (0.98 )3 
  

 

 

 

Total dividends and distributions

     (0.35     (0.89     (1.04     (1.09     (1.09     (1.09
  

 

 

 

Net asset value, end of period

   $ 10.37      $ 10.24      $ 11.03      $ 12.45      $ 13.42      $ 11.73   
  

 

 

 

Market price, end of period

   $ 9.13      $ 9.12      $ 10.39      $ 11.84      $ 13.46      $ 11.45   
  

 

 

 
            
Total Investment Return6                                                 

Based on net asset value

     5.32 %7      1.81     (2.79 )%      0.58     24.65     40.96
  

 

 

 

Based on market price

     4.11 %7      (3.75 )%      (3.71 )%      (4.64 )%      28.08     67.81
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.29 %8      1.29     1.29     1.29     1.28     1.32
  

 

 

 

Total expenses after fees waived and paid indirectly

     1.24 %8      1.19     1.14     1.09     1.08     1.12
  

 

 

 

Net investment income

     1.00 %8      1.04     1.08     0.77     1.37     0.68
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 592,939      $ 585,633      $ 630,801      $ 711,917      $ 765,463      $ 664,928   
  

 

 

 

Portfolio turnover

     44     89     72     79     71     58
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a return of capital or net realized gain at fiscal year end.

 

  3 

Determined in accordance with federal income tax regulations.

 

  4 

The amount of dividends and distributions to shareholders from net investment income reported in October 31, 2011 and October 31, 2010 has been reclassified to allocate the amount between distributions from net investment income and distributions in excess of net investment income; both of which were included in the prior year net investment income in the amount of $0.21 and $0.74, respectively.

 

  5 

Taxable distribution.

 

  6 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  7 

Aggregate total investment return.

 

  8 

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    127


Table of Contents
Consolidated Financial Highlights      BlackRock Resources & Commodities Strategy Trust (BCX)   

 

    

Six Months
Ended
April 30,
2014

(Unaudited)

    Year Ended October 31    

Period
March 30,
20111
through

October 31,
2011

 
       2013     2012    
Per Share Operating Performance                                 

Net asset value, beginning of period

   $ 13.54      $ 15.42      $ 16.83      $ 19.10 2 
  

 

 

 

Net investment income3

     0.08        0.25        0.18        0.03   

Net realized and unrealized gain (loss)

     0.78        (0.97     (0.19     (1.57
  

 

 

 

Net increase (decrease) from investment operations

     0.86        (0.72     (0.01     (1.54
  

 

 

 

Dividends and distributions:

        

Net investment income

     (0.46 )4      (0.14 )5      (0.26 )5        

Net realized gain

                   (0.01 )5      (0.24 )5 

Return of capital

            (1.02 )5      (1.13 )5      (0.46 )5 
  

 

 

 

Total dividends and distributions

     (0.46     (1.16     (1.40     (0.70
  

 

 

 

Capital charges with respect to the issuance of shares

                          (0.03
  

 

 

 

Net asset value, end of period

   $ 13.94      $ 13.54      $ 15.42      $ 16.83   
  

 

 

 

Market price, end of period

   $ 12.02      $ 11.68      $ 14.12      $ 14.95   
  

 

 

 
        
Total Investment Return6                                 

Based on net asset value

     7.09 %7      (3.61 )%8      0.90     (7.80 )%7 
  

 

 

 

Based on market price

     7.05 %7      (9.19 )%      4.02     (21.79 )%7 
  

 

 

 
        
Ratios to Average Net Assets                                 

Total expenses

     1.26 %9      1.27     1.25     1.35 %9 
  

 

 

 

Total expenses after fees waived

     1.06 %9      1.07     1.05     1.13 %9 
  

 

 

 

Net investment income

     1.18 %9      1.76     1.14     0.27 %9 
  

 

 

 
        
Supplemental Data                                 

Net assets, end of period (000)

   $ 649,407      $ 630,617      $ 718,016      $ 783,792   
  

 

 

 

Portfolio turnover

     40     156     100     27
  

 

 

 

 

  1 

Commencement of investment operations. This information includes the initial investment by BlackRock HoldCo2, Inc.

 

  2 

Net asset value, beginning of period, reflects a deduction of $0.8975 per share sales charge from 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 return of capital or net realized gain at fiscal year end.

 

  5 

Determined in accordance with federal income tax regulations.

 

  6 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  7 

Aggregate total investment return.

 

  8 

Includes a payment from an affiliate to compensate for foregone securities lending revenue which impacted the Trust’s total investment return. Not including this payment the Trust’s total return would have been (3.68)%.

 

  9 

Annualized.

 

See Notes to Financial Statements.

 

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Table of Contents
Financial Highlights (concluded)      BlackRock Utility and Infrastructure Trust (BUI)   

 

     Six Months
Ended
April 30,
2014
(Unaudited)
    Year Ended
October 31,
2013
    Period
November 25,
20111
through
October  31,
2012
 
Per Share Operating Performance                         

Net asset value, beginning of period

   $ 20.78      $ 20.22      $ 19.10 2 
  

 

 

 

Net investment income3

     0.27        0.57        0.54   

Net realized and unrealized gain

     1.87        1.44        1.71   
  

 

 

 

Net increase from investment operations

     2.14        2.01        2.25   
  

 

 

 

Dividends and distributions:

      

Net investment income

     (0.73 )4      (0.52 )5      (0.49 )5 

Net realized gain

            (0.42 )5      (0.41 )5 

Return of capital

            (0.51 )5      (0.19 )5 
  

 

 

 

Total dividends and distributions

     (0.73     (1.45     (1.09
  

 

 

 

Capital charges with respect to the issuance of shares

                   (0.04
  

 

 

 

Net asset value, end of period

   $ 22.19      $ 20.78      $ 20.22   
  

 

 

 

Market price, end of period

   $ 19.35      $ 18.36      $ 19.03   
  

 

 

 
      
Total Investment Return6                         

Based on net asset value

     11.10 %7      11.18     12.05 %7 
  

 

 

 

Based on market price

     9.65 %7      4.37     0.71 %7 
  

 

 

 
      
Ratios to Average Net Assets                         

Total expenses

     1.11 %8      1.11     1.12 %8 
  

 

 

 

Total expenses after fees waived

     1.11 %8      1.10     1.11 %8 
  

 

 

 

Total expenses after fees waived and excluding excise tax

     1.11 %8      1.10     1.10 %8 
  

 

 

 

Net investment income

     2.60 %8      2.83     2.94 %8 
  

 

 

 
      
Supplemental Data                         

Net assets, end of period (000)

   $ 375,136      $ 351,325      $ 341,939   
  

 

 

 

Portfolio turnover

     28     133     90
  

 

 

 

 

  1 

Commencement of investment operations. This information includes the initial investment by BlackRock HoldCo2, Inc.

 

  2 

Net asset value, beginning of period, reflects a deduction of $0.8975 per share sales charge from 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 return of capital or net realized gain at fiscal year end.

 

  5 

Determined in accordance with federal income tax regulations.

 

  6 

Total investment returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

 

  7 

Aggregate total investment return.

 

  8 

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    129


Table of Contents
Notes to Financial Statements     

 

1. Organization:

BlackRock Dividend Income Trust (“BQY”), 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”), 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. BQY, CII, BDJ and BOE 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. The Board 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.

Basis of Consolidation: The accompanying consolidated financial statements include the accounts of BlackRock Cayman Resources & Commodities Strategy Fund, Ltd. (the “Subsidiary”), which is a wholly owned subsidiary of BCX and primarily invests in commodity-related instruments. The Subsidiary enables BCX to hold these commodity-related instruments and satisfy regulated investment company tax requirements. BCX may invest up to 25% of its total assets in the Subsidiary. Intercompany accounts and transactions, if any, have been eliminated. The Subsidiary is subject to the same investment policies and restrictions that apply to BCX, except that the Subsidiary may invest without limitation in commodity-related instruments.

The Trusts, together with certain other registered investment companies advised by the Manager or its affiliates, are included in a complex of closed-end funds referred to as the Closed-End Complex.

2. Significant Accounting Policies:

The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. 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 following is a summary of significant accounting policies followed by the Trusts.

Valuation: U.S. 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 determine the fair values of 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 Stock Market (“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. Investments in open-end registered investment companies are valued at the NAV each business day

The Trusts value their bond investments on the basis of last available bid prices or current market quotations provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. Investments in open-end registered investment companies are valued at NAV each business day.

The Trust value their investments in BlackRock Liquidity Series, LLC Money Market Series (the “Money Market Series”) are valued 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 U.S. 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

 

 

130    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Notes to Financial Statements (continued)     

 

incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

In the event that the 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, deems 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. The market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and is 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 calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trusts’ pricing vendors, regular reviews 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 (e.g., a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such instruments, those instruments may be Fair Value Assets and valued at their fair value, as determined in good faith by the Global Valuation Committee, or it’s delegate, 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 U.S. 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 U.S. dollar rises in value against a foreign currency, the Trusts’ investments denominated in that currency will lose value because that currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. 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 in 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 generally treated as ordinary income for federal income tax purposes.

Segregation and Collateralization: In cases where a Trust enters into certain investments (e.g., options written), that would be “senior securities” for 1940 Act purposes, such Trust may segregate or designate on its books and records cash or liquid securities having a market value at least equal to the amount of a Trust’s future obligations under such investments or borrowings. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, each Trust may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

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.

 

 

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Table of Contents
Notes to Financial Statements (continued)     

 

Dividends and Distributions: Dividends and distributions paid by the Trusts are recorded on the ex-dividend date. 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, net realized and unrealized gains on investments, and/or return of capital.

Portions of return of capital distributions under U.S. GAAP may be taxed at ordinary income rates.

The character of dividends and distributions is determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. 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 non-taxable return of capital. Realized net capital gains can be offset by capital losses carried forward from prior years. However, certain Trusts have capital loss carry-forwards from pre-2012 tax years that offset realized net capital gains but do not offset current earnings and profits. Consequently, if distributions in any tax year are less than a Trust’s current earnings and profits but greater than net investment income and net realized capital gains (taxable income), distributions in excess of taxable income are not treated as non-taxable return of capital, but rather may be taxable to shareholders at ordinary income rates. Under certain circumstances, taxable excess distributions could be significant.

Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for tax purposes. Accordingly, the net investment income (loss) and realized gains (losses) reported in the Trust’s financial statements presented under U.S. GAAP for such investments held by the Subsidiary may differ significantly from income dividends and capital gain distributions. As such, any net gain will pass through to the Trust as ordinary income for federal income tax purposes. If a net loss is realized by the Subsidiary in any taxable year, the loss will generally not be available to offset the Trust’s ordinary income and/or capital gains for that year.

Income Taxes: It is the Trusts’ 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 their taxable income to their shareholders. Therefore, no federal income tax provision is required.

The Trusts file U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trusts’ U.S. federal tax returns remains open for each of the four years ended October 31, 2013 with the exception of BCX and BUI. The statute of limitations on BCX’s U.S. federal tax returns remains open for the two years ended October 31, 2013 and the period ended October 31, 2011. The statute of limitations on BUI’s U.S. federal tax returns remains open for the year ended October 31, 2013 and 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 has analyzed tax laws and regulations and their application to the Trusts’ facts and circumstances and does not believe there are any uncertain tax positions that require recognition of a tax liability.

Deferred Compensation: Under the Deferred Compensation Plan (the “Plan”) approved by each Trust’s Board, except CII, the 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 Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Deferred compensation liabilities are included in officer’s and trustees fees payable in the Statement of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance with the Plan.

S&P Quality Rankings: BQY had been granted a license by Standard & Poor’s® (“S&P”) to use the S&P Quality Rankings and the S&P International Quality Rankings. Effective September 17, 2013, BQY terminated its license to use either the S&P Quality Rankings or the S&P International Quality Rankings. “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 had been licensed for use by BQY. BQY was not sponsored, endorsed, managed, sold or promoted by S&P and S&P made 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, for a period of 1 year following the termination date.

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.

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 Statements 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.

3. Securities and Other Investments:

Preferred Stock: The Trusts may invest in preferred stock. Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well) but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred

 

 

132    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Notes to Financial Statements (continued)     

 

stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Securities Lending: Each Trust may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Trust is required to 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, at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Trust and any additional required collateral is delivered to the Trust on the next business day. During the term of the loan, the Trust earns dividend or interest income on the securities loaned but does not receive interest income on any 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 market value of securities on loan and the value of the related collateral are shown separately in the Statements of Assets and Liabilities as a component of investments at value, and collateral on securities loaned at value, respectively. As of April 30, 2014, any securities on loan were collateralized by cash. The cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedules of Investments.

Securities lending transactions are entered into by the Trusts under Master Securities Lending Agreements (each an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Trusts, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a

net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and the Trusts can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

The following table is a summary of the Trusts’ securities lending agreements by counterparty which are subject to offset under an MSLA as of April 30, 2014:

 

BOE                     
Counterparty   Securities Loaned
at Value
    Cash  Collateral
Received1
    Net
Amount
 

Bank of America N.A.

  $ 329,487      $ (329,487       

Citigroup Global Markets, Inc.

    3,970,774        (3,970,774       

Credit Suisse Securities (USA) LLC

    159,814        (159,814       

Goldman Sachs & Co.

    377,276        (377,276       

Morgan Stanley & Co. LLC

    2,732,819        (2,732,819       

UBS Securities LLC

    1,109,028        (1,109,028       
 

 

 

 

Total

  $ 8,679,198      $ (8,679,198       
 

 

 

 
     
BME                     
Counterparty   Securities Loaned
at Value
    Cash Collateral
Received1
    Net
Amount
 

Morgan Stanley & Co. LLC

  $ 159,336      $ (159,336       

National Financial Services LLC

    101,250        (101,250       
 

 

 

 

Total

  $ 260,586      $ (260,586       
 

 

 

 
     
BGY                     
Counterparty   Securities Loaned
at Value
    Cash Collateral
Received1
    Net
Amount
 

Bank of America N.A.

  $ 2,742      $ (2,527   $ 215   

Deutsche Bank Securities, Inc.

    20,556        (20,556       

Goldman Sachs & Co.

    2,775,272        (2,775,272       

Morgan Stanley & Co. LLC

    5,034,733        (5,034,733       

UBS Securities LLC

    1,857,358        (1,857,358       
 

 

 

 

Total

  $ 9,690,661      $ (9,690,446   $ 215   
 

 

 

 
     
BCF                     
Counterparty   Securities Loaned
at Value
    Cash Collateral
Received1
    Net
Amount
 

Barclays Capital, Inc

  $ 64,168      $ (64,168       

 

  1 

Collateral with a value of $9,198,761, $287,000, $10,177,930 and $70,955 has been received in connection with securities lending agreements for BOE, BME, BGY and BCF, respectively. Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    133


Table of Contents
Notes to Financial Statements (continued)     

 

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 these risks, the Trusts benefit from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities lent. The Trusts 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.

4. 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. These contracts may be transacted on an exchange or OTC.

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 a written option could result in the Trusts purchasing or selling a security when it otherwise would not, or at a price different from the current market value.

 

 

 

The following is a summary of the Trusts’ derivative financial instruments categorized by risk exposure:

 

 

Fair Values of Derivative Financial Instruments as of April 30, 2014

 
     Asset Derivatives  
             BDJ        BOE  
     Statements of Assets and Liabilities Location     

Value

 

Equity contracts

   Investments at value — unaffiliated1      $ 4,329         $ 9,200   

 

     Liability Derivatives  
           BQY      BQR      BGR      CII      BDJ      BOE  
     Statements of Assets and Liabilities Location    Value  

Equity contracts

   Options written — at value    $ 875,586       $ 1,174,848       $ 11,333,766       $ 9,841,545       $ 18,043,340       $ 13,786,827   

 

      Liability Derivatives  
           BME      BGY      BCF      BCX      BUI  
     Statements of Assets and Liabilities Location    Value  

Equity contracts

   Options written — at value    $ 2,030,854       $ 12,305,555       $ 6,182,281       $ 7,214,666       $ 3,420,626   

 

  1 

Includes options purchased at value as reported in the Schedules of Investments.

 

134    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Notes to Financial Statements (continued)     

 

The Effect of Derivative Financial Instruments in the Statements of Operations

Six Months Ended April 30, 2014

 
      Net Realized Gain (Loss) From  
      BQY     BQR      BGR      CII      BDJ      BOE  

Equity contracts:

                

Options2

   $ (984   $ 432,394       $ 4,099,327       $ 8,747,295       $ 6,152,789       $ 18,363,488   

 

 

 

      Net Realized Gain (Loss) From  
      BME      BGY      BCF      BCX      BUI  

Equity contracts:

              

Options2

   $ 1,418,840       $ 7,501,228       $ 3,074,308       $ 1,802,049       $ (1,430,557

 

 

 

  2 

Options purchased are included in the net realized gain (loss) from investments - unaffiliated and net change in unrealized appreciation/depreciation on investments.

 

The Effect of Derivative Financial Instruments in the Statements of Operations

Six Months Ended April 30, 2014

 
      Net Change in Unrealized Appreciation/Depreciation on  
      BQY      BQR     BGR     CII     BDJ     BOE  

Equity contracts:

             

Options2

   $ 38,982       $ (31,903   $ (8,393,919   $ 3,488,224      $ 3,563,393      $ 3,201,160   

 

 
                                              
              Net Change in Unrealized Appreciation/Depreciation on  
              BME     BGY     BCF     BCX     BUI  

Equity contracts:

             

Options2

      $ (587,714   $ 4,017,024      $ (1,780,573   $ (3,011,396   $ 626,003   

 

 

 

  2 

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, 2014, the average quarterly balances of outstanding derivative financial instruments were as follows:

 

      BQY      BQR      BGR      CII      BDJ      BOE  

Options:

                 

Average number of options contracts purchased

     4,150         6,400         35,750                 293,050         91,400   

Average number of options contracts written

     769,720         5,523,008         5,857,850         6,912,500         13,953,300         24,702,095   

Average notional value of options contracts purchased

   $ 105,825       $ 38,400       $ 2,502,500               $ 14,447,650       $ 3,795,000   

Average notional value of contracts written

   $ 32,348,868       $ 43,910,886       $ 272,997,344       $ 349,687,647       $ 800,298,837       $ 522,582,103   
                                                  
              BME      BGY      BCF      BCX      BUI  

Options:

                 

Average number of options contracts purchased

        3,150                 46,350                 3,500   

Average number of options contracts written

        1,412,875         35,508,065         11,237,799         7,908,502         4,518,700   

Average notional value of options contracts purchased

      $ 283,500               $ 3,382,125               $ 175,000   

Average notional value of options contracts written

            $ 90,155,068       $ 446,456,633       $ 197,828,688       $ 207,362,955       $ 111,754,207   

 

Counterparty Credit Risk: 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

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    135


Table of Contents
Notes to Financial Statements (continued)     

 

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 less counterparty credit risk to the Trusts since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be on a pro rata basis across all the clearing 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 certain OTC derivatives 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 instruments’ 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 including the bankruptcy or insolvency of the counterparty. When the Trusts enters into an ISDA and an MRA and/or MSLA with the same counterparty, the agreements may contain a set-off provision allowing a trust to offset a net amount payable with amounts due to the Trust upon default of the counterparty. 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. For example, notwithstanding what contractual rights may be included in an ISDA Master Agreement, such laws may prohibit the Trust from setting off

amounts owed to a defaulting counterparty under an ISDA Master Agreement against amounts owed to the Trust by affiliates of the defaulting counterparty. The insolvency regimes of many jurisdictions do, however, generally permit set-off of simultaneous payables and receivables under certain types of financial contracts between the same legal entity upon a default of the entity, regardless of the existence of a contractual set-off right in those contracts. In addition, certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Trust’s net assets decline by a stated percentage or the Trust fails to meet the terms of its ISDA Master Agreements, which would cause the Trust to accelerate payment of any net liability owed to the counterparty.

Collateral Requirements: 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.

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 (typically either $250,000 or $500,000) before a transfer is required, which is determined at the close of business of the Trusts and any additional required collateral is delivered to/pledged by the Trusts on the next business day. Typically, the Trusts and counterparties are not permitted to sell, re-pledge or use the collateral they receive. 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.

For financial reporting purposes, the Trusts do not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.

 

 

 

At April 30, 2014, the Trusts’ derivative assets and liabilities (by type) are as follows:

 

      BQY     BQR     BGR     CII  
      Assets      Liabilities     Assets      Liabilities     Assets      Liabilities     Assets      Liabilities  

Derivative Financial Instruments:

                    

Options

           $ 875,586              $ 1,174,848              $ 11,333,766              $ 9,841,545   
  

 

 

 

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

             (465,151             (343,811             (6,757,050             (5,684,840
  

 

 

 

Total derivative assets and liabilities subject to an MNA

           $ 410,435              $ 831,037              $ 4,576,716              $ 4,156,705   
  

 

 

 

 

136    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Notes to Financial Statements (continued)     

 

      BDJ     BOE     BME     BGY  
      Assets     Liabilities     Assets     Liabilities     Assets      Liabilities     Assets      Liabilities  

Derivative Financial Instruments:

                  

Options1

   $ 4,329      $ 18,043,340      $ 9,200      $ 13,786,827              $ 2,030,854              $ 12,305,555   
  

 

 

 

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

     (4,329     (13,255,096     (9,200     (5,821,057             (1,462,665             (1,591,655
  

 

 

 

Total derivative assets and liabilities subject to an MNA

          $ 4,788,244             $ 7,965,770              $ 568,189              $ 10,713,900   
  

 

 

 

 

      BCF     BCX     BUI  
      Assets      Liabilities     Assets      Liabilities     Assets      Liabilities  

Derivative Financial Instruments:

               

Options

           $ 6,182,281              $ 7,214,666              $ 3,420,626   
  

 

 

 

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

             (3,269,801             (3,539,999             (817,320
  

 

 

 

Total derivative assets and liabilities subject to an MNA

           $ 2,912,480              $ 3,674,667              $ 2,603,306   
  

 

 

 

 

  1 

Includes options purchased at value which is included in Investments at value – unaffiliated in the Statements of Assets and Liabilities and reported in the Schedule of Investments.

The following tables present the Trusts’ derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Trusts as of April 30, 2014:

 

BQY                                              
Counterparty    Derivative Liabilities
Subject to an MNA  by
Counterparty
     Derivatives Available
for Offset
     Non-cash
Collateral
Pledged
    Cash
Collateral
Pledged
    Net Amount of
Derivative Liabilities1
     Net
Options Written
Receivable/
(Payable)2
 

Bank of America N.A.

   $ 15,718                             $ 15,718       $ 7,226   

Citibank N.A.

     50,402                               50,402         (2,421

Credit Suisse International

     29,897                               29,897         (25,859

Deutsche Bank AG

     35,572                               35,572         13,416   

Goldman Sachs International

     2,864                               2,864           

JPMorgan Chase Bank N.A.

     28,036                               28,036           

Morgan Stanley & Co. International PLC

     228,488                               228,488         (23,463

UBS AG

     19,458                               19,458         (13,976
  

 

 

 

Total

   $ 410,435                             $ 410,435       $ (45,077
  

 

 

 
               
BQR                                              
Counterparty    Derivative Liabilities
Subject to an MNA by
Counterparty
     Derivatives Available
for Offset
     Non-cash
Collateral
Pledged3
    Cash
Collateral
Pledged
    Net Amount of
Derivative Liabilities1
     Net
Options Written
Receivable/
(Payable)2
 

Bank of America N.A.

   $ 74,636                             $ 74,636       $ 38,201   

Citibank N.A.

     16,601                               16,601         (8,533

Credit Suisse International

     21,915               $ (21,915                    (3,544

Deutsche Bank AG

     100,079                      $ (100,000     79         (10,792

Goldman Sachs International

     154,094                               154,094         (22,544

Morgan Stanley & Co. International PLC

     154,778                               154,778         (92,312

UBS AG

     308,934                 (308,934                    6,323   
  

 

 

 

Total

   $ 831,037               $ (330,849   $ (100,000   $ 400,188       $ (93,201
  

 

 

 

 

  1 

Net amount represents the net amount payable due to the counterparty in the event of default.

 

  2 

Derivative contract can be offset with options written receivable/payable.

 

  3 

Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    137


Table of Contents
Notes to Financial Statements (continued)     

 

BGR                                              
Counterparty    Derivative Liabilities
Subject to an MNA by
Counterparty
     Derivatives Available
for Offset
     Non-cash
Collateral
Pledged1
    Cash
Collateral
Pledged
    Net Amount of
Derivative Liabilities2
     Net
Options Written
Receivable/
(Payable)3
 

Citibank N.A.

   $ 1,952,941               $ (1,952,941                  $ (129,269

Credit Suisse International

     430,918                             $ 430,918           

Deutsche Bank AG

     371,034                 (371,034                    (435,160

Goldman Sachs International

     1,025,808                 (1,025,808                    148,662   

Morgan Stanley & Co. International PLC

     69,453                 (69,453                      

UBS AG

     726,562                 (261,965            464,597           
  

 

 

 

Total

   $ 4,576,716               $ (3,681,201          $ 895,515       $ (415,767
  

 

 

 
               
CII                                              
Counterparty    Derivative Liabilities
Subject to an MNA by
Counterparty
     Derivatives Available
for Offset
     Non-cash
Collateral
Pledged1
    Cash
Collateral
Pledged1
    Net Amount of
Derivative Liabilities2
     Net
Options Written
Receivable/
(Payable)3
 

Bank of America N.A.

   $ 16,147               $ (16,147                      

Citibank N.A.

     519,396                 (519,396                  $ 15,915   

Credit Suisse International

     14,712                      $ (14,712               

Deutsche Bank AG

     218,937                        (100,000   $ 118,937           

Goldman Sachs International

     21,390                               21,390           

Morgan Stanley & Co. International PLC

     3,111,299                 (3,111,299                    52,623   

UBS AG

     254,824                               254,824           
  

 

 

 

Total

   $ 4,156,705               $ (3,646,842   $ (114,712     395,151       $ 68,538   
  

 

 

 
               
BDJ                                              
Counterparty    Derivative Liabilities
Subject to an MNA by
Counterparty
     Derivatives Available
for Offset
     Non-cash
Collateral
Pledged1
    Cash
Collateral
Pledged
    Net Amount of
Derivative Liabilities2
     Net
Options Written
Receivable/
(Payable)3
 

Citibank N.A.

   $ 1,092,554               $ (1,092,554                  $ (181,825

Credit Suisse International

     1,056,724                 (1,056,724                    (232,328

Deutsche Bank AG

     655,496                 (568,059          $ 87,437         93,986   

Goldman Sachs International

     86,826                               86,826         50,725   

Morgan Stanley & Co. International PLC

     1,710,732                 (1,710,732                    (325,771

UBS AG

     185,912                               185,912           
  

 

 

 

Total

   $ 4,788,244               $ (4,428,069          $ 360,175       $ (595,213
  

 

 

 
               
BOE                                              
Counterparty    Derivative Liabilities
Subject to an MNA by
Counterparty
     Derivatives Available
for Offset
     Non-cash
Collateral
Pledged1
    Cash
Collateral
Pledged
    Net Amount of
Derivative Liabilities2
     Net
Options Written
Receivable/
(Payable)3
 

Bank of America N.A.

   $ 230,596               $ (230,596                  $ 122,893   

Citibank N.A.

     103,525                 (103,525                      

Credit Suisse International

     493,464                 (493,464                      

Deutsche Bank AG

     1,915,294                 (1,915,294                      

Goldman Sachs International

     1,257,396                 (1,257,396                    55,011   

JPMorgan Chase Bank N.A.

     20,568                             $ 20,568           

Morgan Stanley & Co. International PLC

     3,066,227                 (3,066,227                    38,656   

UBS AG

     878,700                 (878,700                    106,832   
  

 

 

 

Total

   $ 7,965,770               $ (7,945,202          $ 20,568       $ 323,392   
  

 

 

 

 

  1 

Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

 

  2 

Net amount represents the net amount payable due to the counterparty in the event of default.

 

  3 

Derivative contract can be offset with options written receivable/payable.

 

138    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Notes to Financial Statements (continued)     

 

BME                                          
Counterparty   Derivative Liabilities
Subject to an MNA  by
Counterparty
    Derivatives Available
for Offset
    Non-cash
Collateral
Pledged1
    Cash
Collateral
Pledged
    Net Amount of
Derivative Liabilities2
   

Net

Option Written

Receivable/(Payable)3

 

Bank of America N.A.

  $ 13,331                           $ 13,331          

Barclays Bank PLC

    2,980                             2,980          

Citibank N.A.

    4,358                             4,358          

Credit Suisse International

    300,306                             300,306          

Goldman Sachs International

    96,776                             96,776          

Morgan Stanley & Co. International PLC

    106,866             $ (106,866                 $ (26,600

UBS AG

    43,572                             43,572          
 

 

 

 

Total

  $ 568,189             $ (106,866          $ 461,323      $ (26,600
 

 

 

 
           
BGY                                          
Counterparty   Derivative Liabilities
Subject to an MNA by
Counterparty
    Derivatives Available
for Offset
    Non-cash
Collateral
Pledged1
    Cash
Collateral
Pledged1
    Net Amount of
Derivative Liabilities2
   

Net

Option Written

Receivable/(Payable)3

 

Bank of America N.A.

  $ 259,835                    $ (259,835          $ 117,456   

Citibank N.A.

    72,740                      (72,740              

Credit Suisse International

    1,683,953                      (1,420,000   $ 263,953          

Deutsche Bank AG

    2,368,217                      (1,967,000     401,217          

Goldman Sachs International

    2,037,492             $ (2,037,492                   (49,051

JPMorgan Chase Bank N.A.

    19,762                             19,762          

Morgan Stanley & Co. International PLC

    3,632,680                      (2,759,504     873,176        293,939   

Société Générale

    5,738                             5,738          

UBS AG

    633,483                      (278,000     355,483        48,243   
 

 

 

 

Total

  $ 10,713,900             $ (2,037,492   $ (6,757,079   $ 1,919,329      $ 410,587   
 

 

 

 
           
BCF                                          
Counterparty   Derivative Liabilities
Subject to an MNA by
Counterparty
    Derivatives Available
for Offset
    Non-cash
Collateral
Pledged1
    Cash
Collateral
Pledged
    Net Amount of
Derivative Liabilities2
   

Net

Option Written

Receivable/(Payable)3

 

Bank of America N.A.

  $ 99,498                           $ 99,498      $ 101,330   

Citibank N.A.

    878,932             $ (878,932                   (95,476

Credit Suisse International

    274,558               (274,558                   (128,682

Deutsche Bank AG

    592,923               (592,923                   (38,165

Goldman Sachs International

    369,828               (369,828                   55,685   

Morgan Stanley & Co. International PLC

    336,596               (336,596                     

UBS AG

    360,145               (356,387            3,758        (44,704
 

 

 

 

Total

  $ 2,912,480             $ (2,809,224          $ 103,256      $ (150,012
 

 

 

 
           
BCX                                          
Counterparty   Derivative Liabilities
Subject to an MNA by
Counterparty
    Derivatives Available
for Offset
    Non-cash
Collateral
Pledged1
    Cash
Collateral
Pledged
    Net Amount of
Derivative Liabilities2
   

Net

Options Written

Receivable/(Payable)3

 

Bank of America N.A.

  $ 124,903             $ (73,053          $ 51,850      $ 52,036   

Citibank N.A.

    497,707               (497,707                   (108,170

Credit Suisse International

    37,456               (37,456                     

Deutsche Bank AG

    758,883               (593,978            164,905        14,696   

Goldman Sachs International

    477,056               (477,056                     

Morgan Stanley & Co. International PLC

    1,063,688               (1,063,688                   (279,567

UBS AG

    714,974               (714,974                     
 

 

 

 

Total

  $ 3,674,667             $ (3,457,912          $ 216,755      $ (321,005
 

 

 

 

 

  1 

Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

 

  2 

Net amount represents the net amount payable due to the counterparty in the event of default.

 

  3 

Derivative contract can be offset with options written receivable/payable.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    139


Table of Contents
Notes to Financial Statements (continued)     

 

BUI                                               
Counterparty    Derivative Liabilities
Subject to an MNA by
Counterparty
     Derivatives Available
for Offset
     Non-cash
Collateral
Pledged1
    Cash
Collateral
Pledged
     Net Amount of
Derivative Liabilities2
    

Net

Option Written
Receivable/(Payable)3

 

Bank of America N.A.

   $ 111,743                              $ 111,743       $ 68,252   

Citibank N.A.

     360,944               $ (360,944                     (34,018

Credit Suisse International

     113,469                 (113,469                     (66,179

Deutsche Bank AG

     559,714                 (559,714                       

Goldman Sachs International

     256,747                 (256,747                     (13,278

JPMorgan Chase Bank N.A.

     48,847                                48,847           

Morgan Stanley & Co. International PLC

     753,685                 (753,685                     (33,010

UBS AG

     398,157                 (261,423             136,734         (124,658
  

 

 

 

Total

   $ 2,603,306               $ (2,305,982           $ 297,324       $ (202,891
  

 

 

 

 

  1 

Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

 

  2 

Net amount represents the net amount payable due to the counterparty in the event of default.

 

  3 

Derivative contract can be offset with options written receivable/payable.

 

 

 

5. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate, for 1940 Act purposes, of 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:

        

BQY

     0.75

BGR

     1.20

BDJ

     0.81

BOE

     1.00

BME

     1.00

BCF

     1.20

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 agreed to waive 0.05% of the investment advisory fees on BCF as a percentage of their average weekly net assets expiring on September 29, 2014.

The Manager has 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   

Effective June 6, 2013, the Manager has voluntarily agreed to waive a portion of the investment advisory fees on BQR and BGY as a percentage of their average daily net assets as follows:

 

BQR

     0.05

BGY

     0.05

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, 2014, the amounts waived were as follows:

 

BQY

   $ 1,454   

BQR

   $ 2,196   

BGR

   $ 17,438   

CII

   $ 6,892   

BDJ

   $ 17,620   

BOE

   $ 9,395   

BME

   $ 2,456   

BGY

   $ 7,384   

BCF

   $ 7,284   

BCX

   $ 8,742   

BUI

   $ 3,359   

The Manager, on behalf of each Trust, entered into a sub-advisory agreements with BlackRock Financial Management, Inc. (“BFM”) for BQY, BGR, CII, BDJ and BUI, 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

 

 

140    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Notes to Financial Statements (continued)     

 

they provide, a monthly fee that is a percentage of the investment advisory fee paid by each Trust to the Manager.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Trusts, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Trusts are responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment advisor to the private investment company will not charge any advisory fees with respect to shares purchased by the Trusts.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. Each Trust retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent. Pursuant to the securities lending agreement effective February 1, 2014, BIM may lend securities only when the difference between the borrower rebate rate and the risk free rate exceeds a certain level (such securities, the “specials only securities”).

Pursuant to such agreement, each Trust retains 80% of securities lending income. In addition, commencing the business day following the date that the aggregate securities lending income earned across the Closed-End Complex in a calendar year exceeds the breakpoint dollar threshold applicable in the given year as set forth in the securities lending agreement, each Trust, pursuant to the securities lending agreement, will retain for the remainder of the calendar year securities lending income in an amount equal to 85% of securities lending income. Prior to February 1, 2014, each Trust retained 65% of securities lending income and paid a fee to BIM equal to 35% of such income. The share of securities lending income earned by each Trust is shown as securities lending — affiliated — net in the Statements of Operations. For the six months ended April 30, 2014, each Trust paid BIM the following amounts for securities lending agent services:

 

BQR

   $ 282   

BOE

   $ 14,858   

BME

   $ 86   

BGY

   $ 11,427   

BCF

   $ 34   

Certain Trusts recorded payments from an affiliate to compensate for foregone securities lending revenue which is included in other income -affiliated in the Statements of Operations as follows:

 

BQY

   $ 1,802   

BQR

   $ 3,778   

BGR

   $ 7,901   

CII

   $ 843   

BDJ

   $ 7,663   

BOE

   $ 7,530   

BME

   $ 2,267   

BGY

   $ 7,166   

BCF

   $ 3,498   

BCX

   $ 21,128   

BUI

   $ 3,288   

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 directors in the Statement of Operations.

The Trusts may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the six months ended April 30, 2014, the purchase and sale transactions with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

 

      Purchases      Sales  

BQY

   $ 170,827           

BGR

           $ 9,890,273   

BDJ

   $ 2,962,425           

BOE

   $ 396,740       $ 106,334   

BME

   $ 1,018,711       $ 1,422,915   

BGY

   $ 339,380       $ 91,731   

6. Purchases and Sales:

Purchases and sales of investment securities, excluding short-term securities, for the six months ended April 30, 2014, were as follows:

 

      Purchases      Sales  

BQY

   $ 34,034,270       $ 33,629,245   

BQR

   $ 47,765,293       $ 47,143,409   

BGR

   $ 546,952,199       $ 610,280,794   

CII

   $ 457,573,416       $ 445,161,677   

BDJ

   $ 882,457,896       $ 918,142,716   

BOE

   $ 1,198,368,379       $ 1,188,976,055   

BME

   $ 158,181,205       $ 184,107,485   

BGY

   $ 953,069,922       $ 954,414,779   

BCF

   $ 247,564,224       $ 259,223,564   

BCX

   $ 246,816,948       $ 277,906,685   

BUI

   $ 97,972,663       $ 108,813,486   
 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    141


Table of Contents
Notes to Financial Statements (continued)     

 

Transactions in options written for the six months ended April 30, 2014, were as follows:

 

     Calls     Puts  
      Contracts    

Premiums

Received

    Contracts    

Premiums

Received

 

BQY

        

Outstanding options at beginning of period

     442,340      $ 543,360                 

Options written

     1,576,822        2,115,813        31      $ 767   

Options expired

     (680,690     (601,669     (24     (543

Options closed

     (637,424     (1,005,336              

Options exercised

     (305,572     (522,788     (7     (224
  

 

 

   

 

 

   

 

 

   

 

 

 

Outstanding options at end of period

     395,476      $ 529,380                 
  

 

 

   

 

 

   

 

 

   

 

 

 
                                  

BQR

        

Outstanding options at beginning of period

     6,216,894      $ 1,199,341                 

Options written

     17,431,293        3,724,844                 

Options expired

     (12,921,419     (1,667,675              

Options closed

     (5,321,209     (1,802,229              

Options exercised

     (878,942     (472,263              
  

 

 

   

 

 

   

 

 

   

 

 

 

Outstanding options at end of period

     4,526,617      $ 982,018                 
  

 

 

   

 

 

   

 

 

   

 

 

 
                                  

BGR

        

Outstanding options at beginning of period

     3,588,237      $ 8,474,085                 

Options written

     14,114,058        20,934,888                 

Options expired

     (7,478,797     (8,863,716              

Options closed

     (6,358,421     (12,646,941              

Options exercised

     (873,090     (2,501,597              
  

 

 

   

 

 

   

 

 

   

 

 

 

Outstanding options at end of period

     2,991,987      $ 5,396,719                 
  

 

 

   

 

 

   

 

 

   

 

 

 
                                  

CII

        

Outstanding options at beginning of period

     2,714,615      $ 6,091,953                 

Options written

     9,024,458        30,167,182        842,975      $ 1,046,942   

Options expired

     (4,168,188     (12,081,919              

Options closed

     (2,705,473     (9,823,908              

Options exercised

     (2,862,596     (6,330,596     (375     (36,360
  

 

 

   

 

 

   

 

 

   

 

 

 

Outstanding options at end of period

     2,002,816      $ 8,022,712        842,600      $ 1,010,582   
  

 

 

   

 

 

   

 

 

   

 

 

 
                                  

BDJ

        

Outstanding options at beginning of period

     5,090,227      $ 12,448,564                 

Options written

     17,966,668        54,391,477        122,040      $ 190,438   

Options expired

     (5,654,118     (15,456,441     (611     (14,207

Options closed

     (8,577,653     (24,680,471              

Options exercised

     (5,302,596     (13,123,123     (129     (3,985
  

 

 

   

 

 

   

 

 

   

 

 

 

Outstanding options at end of period

     3,522,528      $ 13,580,006        121,300      $ 172,246   
  

 

 

   

 

 

   

 

 

   

 

 

 
                                  
     Calls     Puts  
      Contracts     Premiums
Received
    Contracts     Premiums
Received
 

BOE

        

Outstanding options at beginning of period

     25,066,642      $ 15,614,350                 

Options written

     81,270,408        56,527,462                 

Options expired

     (34,976,800     (22,659,801              

Options closed

     (33,978,657     (24,331,643              

Options exercised

     (15,266,450     (12,417,252              
  

 

 

   

 

 

   

 

 

   

 

 

 

Outstanding options at end of period

     22,115,143      $ 12,733,116                 
  

 

 

   

 

 

   

 

 

   

 

 

 
                                  

BME

        

Outstanding options at beginning of period

     599,254      $ 3,147,245        36,800      $ 105,616   

Options written

     1,573,659        9,329,700        379        181,809   

Options expired

     (817,186     (3,979,144     (144     (56,123

Options closed

     (598,077     (4,665,127     (235     (125,686

Options exercised

     (336,863     (1,746,355     (36,800     (105,616
  

 

 

   

 

 

   

 

 

   

 

 

 

Outstanding options at end of period

     420,787      $ 2,086,319                 
  

 

 

   

 

 

   

 

 

   

 

 

 
                                  

BGY

        

Outstanding options at beginning of period

     57,843,462      $ 13,626,299                 

Options written

     144,831,327        45,803,622                 

Options expired

     (61,362,838     (18,363,623              

Options closed

     (74,272,737     (21,141,155              

Options exercised

     (36,547,429     (7,703,779              
  

 

 

   

 

 

   

 

 

   

 

 

 

Outstanding options at end of period

     30,491,785      $ 12,221,364                 
  

 

 

   

 

 

   

 

 

   

 

 

 
                                  

BCF

        

Outstanding options at beginning of period

     9,327,960      $ 4,859,346                 

Options written

     31,282,373        16,673,441                 

Options expired

     (20,892,807     (6,684,910              

Options closed

     (8,551,925     (7,850,345              

Options exercised

     (2,373,463     (2,565,045              
  

 

 

   

 

 

   

 

 

   

 

 

 

Outstanding options at end of period

     8,792,138      $ 4,432,487                 
  

 

 

   

 

 

   

 

 

   

 

 

 
                                  

BCX

        

Outstanding options at beginning of period

     5,065,799      $ 4,250,223                 

Options written

     18,113,151        14,606,108                 

Options expired

     (8,646,155     (5,439,980              

Options closed

     (6,372,359     (6,859,484              

Options exercised

     (2,696,800     (2,600,588              
  

 

 

   

 

 

   

 

 

   

 

 

 

Outstanding options at end of period

     5,463,636      $ 3,956,279                 
  

 

 

   

 

 

   

 

 

   

 

 

 
                                  
 

 

142    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Notes to Financial Statements (continued)     

 

     Calls     Puts  
      Contracts     Premiums
Received
    Contracts      Premiums
Received
 
BUI                          

Outstanding options at beginning of period

     3,799,037      $ 2,144,575                  

Options written

     12,630,689        7,569,164                  

Options expired

     (3,653,546     (2,063,139               

Options closed

     (7,195,311     (3,788,575               

Options exercised

     (2,187,405     (1,663,259               
  

 

 

   

 

 

   

 

 

    

 

 

 

Outstanding options at end of period

     3,393,464      $ 2,198,766                  
  

 

 

   

 

 

   

 

 

    

 

 

 
                                   

 

As of April 30, 2014, the value of portfolio securities subject to covered call options written was as follows:

 

      Value  

BQY

   $ 33,911,740   

BQR

   $ 44,352,732   

BGR

   $   291,019,978   

CII

   $ 359,652,347   

BDJ

   $ 841,027,783   

BOE

   $ 504,659,061   

BME

   $ 84,393,755   

BGY

   $ 444,251,239   

BCF

   $ 201,685,210   

BCX

   $ 210,325,493   

BUI

   $ 122,374,475   
 

 

7. Income Tax Information:

As of October 31, 2013, 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      BCF      BCX  

2016

           $ 2,664,939       $ 29,846,203       $ 72,179,602                           

2017

   $ 21,140,114         70,040,876         77,635,340         38,148,041       $ 467,149,104                   

2018

     9,080,494         2,615,197         8,526,748                 55,605,462                   

2019

     1,795,201                                                   

No expiration date1

     4,444,329         12,553,184                         20,457,041       $ 19,517,626       $ 105,772,029   
  

 

 

 

Total

   $ 36,460,138       $ 87,874,196       $ 116,008,291       $ 110,327,643       $ 543,211,607       $ 19,517,626       $ 105,772,029   

 

  1 

Must be utilized prior to losses subject to expiration.

As of April 30, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

      BQY     BQR     BGR     CII     BDJ     BOE  

Tax cost

   $ 85,186,866      $ 125,669,380      $ 741,074,000      $ 638,478,698      $ 1,458,680,913      $ 1,071,466,406   
  

 

 

 

Gross unrealized appreciation

   $ 9,732,651      $ 21,357,120      $   133,116,723      $ 84,872,772      $ 278,997,465      $ 141,073,962   

Gross unrealized depreciation

     (4,600,804     (30,207,964     (19,320,389     (44,751,725     (75,501,776     (41,554,477
  

 

 

 

Net unrealized appreciation (depreciation)

   $ 5,131,847      $ (8,850,844   $ 113,796,334      $ 40,121,047      $ 203,495,689      $ 99,519,485   

 

      BME     BGY     BCF     BCX     BUI  

Tax cost

   $ 205,185,237      $ 896,174,304      $ 583,922,398      $ 630,950,346      $ 298,803,130   
  

 

 

 

Gross unrealized appreciation

   $ 73,030,663      $   117,907,309      $ 129,315,573      $ 64,894,310      $ 78,783,733   

Gross unrealized depreciation

     (5,712,136     (32,024,673     (113,634,890     (38,980,547     (993,128
  

 

 

 

Net unrealized appreciation

   $ 67,318,527      $ 85,882,636      $ 15,680,683      $ 25,913,763      $ 77,790,605   

 

8. 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.

 

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    143


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Notes to Financial Statements (concluded)     

 

As of April 30, 2014, 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

Financials

   BQY, CII, BDJ

Information Technology

   CII

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 invests 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 U.S. 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 Schedule of Investments for concentrations in specific countries.

As of April 30, 2014, the Trusts’ investments listed below had the following industry classifications:

 

Industry    BOE     BGY  

Banks

     11     13

Pharmaceuticals

     9        11   

Oil, Gas & Consumable Fuels

     5        5   

Machinery

     2        5   

Other*

     73        66   

 

  * All other industries held were each less than 5%.

9. 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.

Shares issued and outstanding during the six months ended April 30, 2014 and the year ended October 31, 2013 increased by the following amounts as a result of dividend reinvestments:

      Six Months Ended
April 30, 2014
     Year Ended
October 31, 2013
 

BME

     51,878         31,115   

Shares issued and outstanding remained constant for BQY, BQR, BGR, CII, BDJ, BOE, BGY, BCF, BCX and BUI for the six months ended April 30, 2014 and the year ended October 31, 2013.

10. 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 30, 2014 to shareholders of record on May 15, 2014 as follows:

 

     

Common

Dividend per
Share

 

BQY

   $ 0.23000   

BOE

   $ 0.31165   

BUI

   $ 0.36250   

Additionally, certain Trusts declared a net investment income dividend distribution in the following amounts per share on June 2, 2014 payable to shareholders of record on June 16, 2014 as follows:

 

     

Common

Dividend per

Share

 

BQR

   $ 0.179250   

BGR

   $ 0.405000   

CII

   $ 0.300000   

BDJ

   $ 0.140000   

BME

   $ 0.429975   

BGY

   $ 0.167850   

BCF

   $ 0.174800   

BCX

   $ 0.231200   

On June 16, 2014, the Board approved a change to the frequency of regular Trust distributions from quarterly to monthly. As a result of the change, beginning in August 2014 (with respect to BQY, BOE and BUI) or September 2014 (with respect to BQR, BGR, CII, BDJ, BME, BGY, BCF and BCX) shareholders of each Trust will begin receiving distributions on a monthly basis. Distribution rates and relevant dates for the Trusts’ initial monthly distributions will be announced, subject to each Trust’s declaration of such distributions at the discretion of the Board, in August and September, as applicable.

 

 

144    SEMI-ANNUAL REPORT    APRIL 30, 2014     


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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

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

 

Effective June 6, 2014, Brian Kindelan resigned as Chief Compliance Officer and Anti-Money Laundering Officer of the Trust and Charles Park became Chief Compliance Officer and Anti-Money Laundering Officer of the Trust. Mr. Park joined BlackRock in 2009 and is the current Chief Compliance Officer of BlackRock’s iShares exchange traded funds.

 

Effective June 2, 2014, Alastair Bishop and Joshua Freedman became co-portfolio managers of BQR. The other portfolio managers of BQR are Kyle McClements, Poppy Allonby, Robin Batchelor, Chris Accettella and Desmond Cheung.

 

Effective June 2, 2014, Alastair Bishop and Joshua Freedman became co-portfolio managers of BCF. The other portfolio managers of BCF are Kyle McClements, Chris Accettella, Poppy Allonby, Robin Batchelor and Olivia Ker.

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 8BL

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 BQY, BGR, CII, BDJ 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, 2014    145


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Additional Information     

 

General Information

During the period, 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 145, 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.

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’ 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.

 

 

146    SEMI-ANNUAL REPORT    APRIL 30, 2014     


Table of Contents
Additional Information (concluded)     

 

 

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.

 
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.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2014    147


Table of Contents

 

 

 

 

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.

 

LOGO

 

CEF-BK11- 4/14-SAR    LOGO


Table of Contents
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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       (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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Table of Contents

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 Utility and Infrastructure Trust
By:         /s/ John M. Perlowski
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Utility and Infrastructure Trust
Date: July 1, 2014

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 Utility and Infrastructure Trust
Date: July 1, 2014
By:         /s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Utility and Infrastructure Trust
Date: July 1, 2014

 

4