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Share Name | Share Symbol | Market | Type |
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Blackrock Enhanced EQ Yld Fd | NYSE:EEF | NYSE | Ordinary Share |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 0.00 | - |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSRS CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES |
Investment Company Act file number 811-21722
Name of Fund: BlackRock Enhanced Equity Yield Fund, Inc. (EEF) Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Enhanced Equity Yield Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011 Registrants telephone number, including area code: (800) 882-0052, Option 4 Date of fiscal year end: 12/31/2008 Date of reporting period: 01/01/2008 06/30/2008 Item 1 Report to Stockholders |
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
Semi-Annual Report JUNE 30, 2008 | (UNAUDITED) |
BlackRock Enhanced Equity Yield Fund, Inc. (EEF)
BlackRock Enhanced Equity Yield & Premium Fund, Inc. (ECV) |
NOT FDIC INSURED
MAY LOSE VALUE NO BANK GUARANTEE |
Table of Contents | ||
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Page | ||
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A Letter to Shareholders | 3 | |
Semi-Annual Report: | ||
Fund Summaries | 4 | |
Financial Statements: | ||
Schedules of Investments | 6 | |
Statements of Assets and Liabilities | 16 | |
Statements of Operations | 17 | |
Statements of Changes in Net Assets | 18 | |
Financial Highlights | 20 | |
Notes to Financial Statements | 22 | |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement | 25 | |
Officers and Directors | 29 | |
Additional Information | 29 |
2 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
A Letter to Shareholders |
Dear Shareholder
Throughout the past year, investors were overwhelmed by lingering credit and financial market troubles, surging oil
prices and more recently, renewed inflation concerns. Healthy nonfinancial corporate profits and robust exporting
activity remained among the few bright spots, helping the economy to grow at a modest, but still positive, pace.
The Federal Reserve Board (the Fed) has been aggressive in its attempts to stoke economic growth and ease
financial market instability. In addition to slashing the target federal funds rate 325 basis points (3.25%) between
September 2007 and April 2008, the central bank introduced the new Term Securities Lending Facility, granted broker-
dealers access to the discount window and used its own balance sheet to help negotiate the sale of Bear Stearns.
As widely anticipated, the end of the period saw a pause in Fed action, as the central bank held the target rate steady
at 2.0% amid rising inflationary pressures.
As the Feds bold response to the financial crisis helped ease credit turmoil and investor anxiety, U.S. equity markets
sank sharply over the last six months, notwithstanding a brief rally in the spring. International markets were not immune
to the tumult, with most regions also registering declines.
Treasury securities also traded in a volatile fashion, but generally rallied (yields fell as prices correspondingly rose), with
investors continuing to seek safety as part of a broader flight to quality. The yield on 10-year Treasury issues, which fell
to 3.34% in March 2008, climbed up to the 4.20% range in mid-June as investors temporarily shifted out of Treasury
issues in favor of riskier assets (such as stocks and other high-quality fixed income sectors), then reversed course and
declined to 3.99% by period-end when credit fears re-emerged.
Tax-exempt issues eked out gains for the reporting period, but underperformed their taxable counterparts, as the group
continued to be pressured by problems among municipal bond insurers and the breakdown in the market for auction
rate securities.
The major benchmark indexes generated results that largely reflected heightened investor risk aversion:
Total Returns as of June 30, 2008 | 6-month | 12-month | ||
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U.S. equities (S&P 500 Index) | (11.91)% | (13.12)% | ||
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Small cap U.S. equities (Russell 2000 Index) | (9.37)% | (16.19)% | ||
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International equities (MSCI Europe, Australasia, Far East Index) | (10.96)% | (10.61)% | ||
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Fixed income (Lehman Brothers U.S. Aggregate Index) | 1.13% | 7.12% | ||
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Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) | 0.02% | 3.23% | ||
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High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) | (1.08)% | (1.74)% | ||
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Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly
in an index. As you navigate todays volatile markets, we encourage you to review your investment goals with your financial profes- sional and to make portfolio changes, as needed. For more up-to-date commentary on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead. |
THIS PAGE NOT PART OF YOUR FUND REPORT
3
Fund Summary as of June 30, 2008 |
BlackRock Enhanced Equity Yield Fund, Inc. |
Investment Objective
BlackRock Enhanced Equity Yield Fund, Inc. (EEF) (the Fund) primarily seeks to provide stockholders with current income and gains, with a secondary objective of providing capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in a diversified portfolio of dividend-paying common stocks in an attempt to generate current income and by employing a strategy of writing (selling) call options on equity indexes in an attempt to generate gains from option premiums primarily on the S&P 500 Index.
Performance
For the six months ended June 30, 2008, the Fund returned (4.19)% based on market price and (8.84)% based on net asset value (NAV). For the same period, the benchmark S&P 500® Index posted an average return of (11.91)% . All returns reflect reinvestment of dividends. The Funds call-writing strategy offset some of the negative effects of a downturn in the equity markets. Specifically, management has discretion to increase or decrease the percentage of call-writing in the portfolio, and its decisions during this period of market volatility benefited performance. Management believes that these actions also have positioned the Fund to benefit from a market recovery.
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. S&P 500 is a registered trademark of the McGraw-Hill Companies.
Fund Information | ||||||||||||
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Symbol on New York Stock Exchange | EEF | |||||||||||
Initital Offering Date | May 6, 2005 | |||||||||||
Yield on Closing Market Price as of June 30, 2008 1 ($14.50) | 13.79% | |||||||||||
Current Quarterly Distribution per share of Common Stock 2 | $0.50 | |||||||||||
Current Annualized Distribution per share of Common Stock 2 | $2.00 | |||||||||||
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1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. | ||||||||||||
2 The distribution is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized | ||||||||||||
gain at fiscal year end. | ||||||||||||
Past performance does not guarantee future results. | ||||||||||||
The table below summarizes the Funds market price and net asset value per share: | ||||||||||||
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6/30/08 | 12/31/07 | Change | High | Low | ||||||||
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Market Price | $14.50 | $16.16 | (10.27)% | $16.57 | $14.00 | |||||||
Net Asset Value | $15.00 | $17.57 | (14.63)% | $17.57 | $14.98 | |||||||
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The following chart shows the portfolio composition of the Funds long-term investments: | ||||||||||||
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Portfolio Composition | ||||||||||||
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Sector | 6/30/08 | 12/31/07 | ||||||||||
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Information Technology | 17% | 17% | ||||||||||
Energy | 16 | 13 | ||||||||||
Financials | 14 | 17 | ||||||||||
Health Care | 13 | 13 | ||||||||||
Industrials | 11 | 11 | ||||||||||
Consumer Staples | 10 | 10 | ||||||||||
Consumer Discretionary | 8 | 8 | ||||||||||
Materials | 4 | 4 | ||||||||||
Telecommunication Services | 4 | 4 | ||||||||||
Utilities | 3 | 3 | ||||||||||
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For Fund compliance purposes, the Funds 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 Fund management. This definition may not apply for purposes of this report, which may combine sector sub-classifications for reporting ease.
4 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Fund Summary as of June 30, 2008 |
BlackRock Enhanced Equity Yield & Premium Fund, Inc. |
Investment Objective
BlackRock Enhanced Equity Yield & Premium Fund, Inc. (ECV) (the Fund) primarily seeks to provide stockholders with current income and gains, with a secondary objective of providing capital appreciation. The Fund seeks to achieve its investment objectives by investing primarily in a diversified portfolio of dividend-paying common stocks in an attempt to generate current income and by employing a strategy of writing (selling) call options on equity indexes in an attempt to generate gains from option premiums primarily on the S&P 500 Index as well as the NASDAQ 100 Index.
Performance
For the six months ended June 30, 2008, the Fund returned (6.14)% based on market price and (8.35)% based on net asset value (NAV). For the same period, the blended benchmark, comprised of 75% S&P 500 Index and 25% NASDAQ 100 Index, posted a return of (11.84)% . All returns reflect reinvestment of dividends. The Funds call-writing strategy offset some of the negative effects of a downturn in the equity markets. Specifically, management has discretion to increase or decrease the percentage of call-writing in the portfolio, and its decisions during this period of market volatility contributed to performance. Management believes that these actions also have positioned the Fund to benefit from a market recovery.
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.
Fund Information | ||||
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Symbol on New York Stock Exchange | ECV | |||
Initital Offering Date | June 30, 2005 | |||
Yield on Closing Market Price as of June 30, 2008 1 ($13.70) | 14.96% | |||
Current Semi-Annual Distribution per share of Common Stock 2 | $1.025 | |||
Current Annualized Distribution per share of Common Stock 2 | $2.05 | |||
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1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. |
2 | The distribution is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end. |
Past performance does not guarantee future results. | |
The table below summarizes the Funds market price and net asset value per share:
6/30/08 | 12/31/07 | Change | High | Low | ||||||
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Market Price | $13.70 | $15.68 | (12.63)% | $16.50 | $13.65 | |||||
Net Asset Value | $14.76 | $17.30 | (14.68)% | $17.30 | $14.76 | |||||
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The following chart shows the portfolio composition of the Funds long-term investments:
Portfolio Composition
Sector | 6/30/08 | 12/31/07 | ||
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Information Technology | 30% | 28% | ||
Health Care | 13 | 13 | ||
Energy | 12 | 10 | ||
Financials | 10 | 14 | ||
Industrials | 9 | 9 | ||
Consumer Discretionary | 9 | 9 | ||
Consumer Staples | 8 | 8 | ||
Materials | 4 | 3 | ||
Telecommunication Services | 3 | 4 | ||
Utilities | 2 | 2 | ||
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For Fund compliance purposes, the Funds 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 Fund management. This definition may not apply for purposes of this report, which may combine sector sub-classifications for reporting ease.
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
5 |
Schedule of Investments June 30, 2008 (Unaudited) |
BlackRock Enhanced Equity Yield Fund, Inc.
(Percentages shown are based on Net Assets)
Common Stocks | Shares | Value | ||
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Aerospace & Defense 1.4% | ||||
General Dynamics Corp. | 6,900 | $ 580,980 | ||
Honeywell International, Inc. | 9,100 | 457,548 | ||
Lockheed Martin Corp. | 16,100 | 1,588,426 | ||
Northrop Grumman Corp. | 28,700 | 1,920,030 | ||
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4,546,984 | ||||
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Air Freight & Logistics 1.3% | ||||
United Parcel Service, Inc. Class B | 64,800 | 3,983,256 | ||
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Auto Components 0.1% | ||||
Johnson Controls, Inc. | 16,200 | 464,616 | ||
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Automobiles 0.3% | ||||
General Motors Corp. | 88,100 | 1,013,150 | ||
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Beverages 2.0% | ||||
The Coca-Cola Co. | 89,100 | 4,631,418 | ||
PepsiCo, Inc. | 24,700 | 1,570,673 | ||
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6,202,091 | ||||
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Biotechnology 1.6% | ||||
Amgen, Inc. (a) | 25,200 | 1,188,432 | ||
Biogen Idec, Inc. (a) | 11,200 | 625,968 | ||
Celgene Corp. (a) | 10,600 | 677,022 | ||
Genzyme Corp. (a) | 8,300 | 597,766 | ||
Gilead Sciences, Inc. (a) | 38,600 | 2,043,870 | ||
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5,133,058 | ||||
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Capital Markets 1.5% | ||||
The Goldman Sachs Group, Inc. | 19,980 | 3,494,502 | ||
Lehman Brothers Holdings, Inc. | 26,400 | 522,984 | ||
Morgan Stanley | 18,000 | 649,260 | ||
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4,666,746 | ||||
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Chemicals 1.7% | ||||
Air Products & Chemicals, Inc. | 6,100 | 603,046 | ||
The Dow Chemical Co. | 46,600 | 1,626,806 | ||
E.I. du Pont de Nemours & Co. | 45,900 | 1,968,651 | ||
PPG Industries, Inc. | 17,400 | 998,238 | ||
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5,196,741 | ||||
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Commercial Banks 3.5% | ||||
Comerica, Inc. | 17,100 | 438,273 | ||
Regions Financial Corp. | 120,600 | 1,315,746 | ||
SunTrust Banks, Inc. | 41,900 | 1,517,618 | ||
U.S. Bancorp | 119,600 | 3,335,644 | ||
Wachovia Corp. | 143,700 | 2,231,661 | ||
Wells Fargo & Co. | 85,000 | 2,018,750 | ||
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10,857,692 | ||||
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Commercial Services & Supplies 0.2% | ||||
Waste Management, Inc. | 19,100 | 720,261 | ||
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Communications Equipment 3.3% | ||||
Ciena Corp. (a) | 15,371 | 356,146 | ||
Cisco Systems, Inc. (a) | 137,600 | 3,200,576 | ||
Corning, Inc. | 50,300 | 1,159,415 | ||
Motorola, Inc. | 188,400 | 1,382,856 | ||
QUALCOMM, Inc. | 95,900 | 4,255,083 | ||
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10,354,076 | ||||
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Common Stocks | Shares | Value | ||
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Computers & Peripherals 3.7% | ||||
Apple, Inc. (a) | 26,200 | $ 4,386,928 | ||
Dell, Inc. (a) | 62,100 | 1,358,748 | ||
EMC Corp. (a) | 59,500 | 874,055 | ||
Hewlett-Packard Co. | 41,900 | 1,852,399 | ||
International Business Machines Corp. | 20,800 | 2,465,424 | ||
SanDisk Corp. (a) | 32,400 | 605,880 | ||
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11,543,434 | ||||
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Consumer Finance 0.1% | ||||
Discover Financial Services, Inc. | 22,900 | 301,593 | ||
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Diversified Financial Services 3.4% | ||||
Bank of America Corp. | 138,400 | 3,303,608 | ||
CME Group, Inc. | 3,812 | 1,460,720 | ||
Citigroup, Inc. | 59,800 | 1,002,248 | ||
IntercontinentalExchange, Inc. (a) | 11,500 | 1,311,000 | ||
JPMorgan Chase & Co. | 104,900 | 3,599,119 | ||
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10,676,695 | ||||
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Diversified Telecommunication Services 3.4% | ||||
AT&T Inc. | 163,790 | 5,518,085 | ||
Embarq Corp. | 24,191 | 1,143,509 | ||
Verizon Communications, Inc. | 79,290 | 2,806,866 | ||
Windstream Corp. | 109,500 | 1,351,230 | ||
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10,819,690 | ||||
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Electric Utilities 0.4% | ||||
American Electric Power Co., Inc. | 10,900 | 438,507 | ||
FirstEnergy Corp. | 8,300 | 683,339 | ||
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1,121,846 | ||||
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Electrical Equipment 1.1% | ||||
Emerson Electric Co. | 49,400 | 2,442,830 | ||
Rockwell Automation, Inc. | 23,400 | 1,023,282 | ||
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3,466,112 | ||||
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Electronic Equipment & Instruments 0.3% | ||||
Tyco Electronics Ltd. | 28,925 | 1,036,093 | ||
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Energy Equipment & Services 3.4% | ||||
Baker Hughes, Inc. | 9,300 | 812,262 | ||
National Oilwell Varco, Inc. (a) | 36,600 | 3,247,152 | ||
Schlumberger Ltd. | 12,797 | 1,374,782 | ||
Smith International, Inc. | 34,500 | 2,868,330 | ||
Transocean, Inc. | 16,330 | 2,488,529 | ||
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10,791,055 | ||||
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Food & Staples Retailing 3.0% | ||||
SYSCO Corp. | 100,500 | 2,764,755 | ||
Wal-Mart Stores, Inc. | 99,100 | 5,569,420 | ||
Walgreen Co. | 37,500 | 1,219,125 | ||
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9,553,300 | ||||
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Food Products 1.0% | ||||
ConAgra Foods, Inc. | 16,000 | 308,480 | ||
Kraft Foods, Inc. | 47,321 | 1,346,282 | ||
Sara Lee Corp. | 113,300 | 1,387,925 | ||
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3,042,687 | ||||
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See Notes to Financial Statements. |
6 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Schedule of Investments (continued) |
BlackRock Enhanced Equity Yield Fund, Inc.
(Percentages shown are based on Net Assets)
Common Stocks | Shares | Value | ||
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Health Care Equipment & Supplies 1.5% | ||||
Baxter International, Inc. | 13,300 | $ 850,402 | ||
Becton Dickinson & Co. | 17,800 | 1,447,140 | ||
Boston Scientific Corp. (a) | 42,546 | 522,890 | ||
Covidien Ltd. | 28,925 | 1,385,218 | ||
Zimmer Holdings, Inc. (a) | 9,200 | 626,060 | ||
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4,831,710 | ||||
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Health Care Providers & Services 1.6% | ||||
Aetna, Inc. | 15,700 | 636,321 | ||
Express Scripts, Inc. (a) | 17,600 | 1,103,872 | ||
Medco Health Solutions, Inc. (a) | 24,300 | 1,146,960 | ||
UnitedHealth Group, Inc. | 39,200 | 1,029,000 | ||
WellPoint, Inc. (a) | 21,500 | 1,024,690 | ||
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4,940,843 | ||||
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Hotels, Restaurants & Leisure 1.9% | ||||
Carnival Corp. | 34,300 | 1,130,528 | ||
McDonalds Corp. | 75,700 | 4,255,854 | ||
Starwood Hotels & Resorts Worldwide, Inc. | 12,200 | 488,854 | ||
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5,875,236 | ||||
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Household Durables 1.0% | ||||
Fortune Brands, Inc. | 21,900 | 1,366,779 | ||
Lennar Corp. Class A | 22,200 | 273,948 | ||
Whirlpool Corp. | 24,600 | 1,518,558 | ||
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3,159,285 | ||||
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Household Products 1.7% | ||||
The Procter & Gamble Co. | 85,642 | 5,207,890 | ||
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IT Services 0.6% | ||||
Automatic Data Processing, Inc. | 38,900 | 1,629,910 | ||
Cognizant Technology Solutions Corp. (a) | 12,400 | 403,124 | ||
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2,033,034 | ||||
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Industrial Conglomerates 4.5% | ||||
3M Co. | 51,500 | 3,583,885 | ||
General Electric Co. | 338,200 | 9,026,558 | ||
Textron, Inc. | 14,300 | 685,399 | ||
Tyco International Ltd. | 21,025 | 841,841 | ||
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14,137,683 | ||||
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Insurance 2.9% | ||||
The Allstate Corp. | 18,100 | 825,179 | ||
American International Group, Inc. | 28,300 | 748,818 | ||
Hartford Financial Services Group, Inc. | 15,500 | 1,000,835 | ||
Lincoln National Corp. | 35,000 | 1,586,200 | ||
Marsh & McLennan Cos., Inc. | 72,900 | 1,935,495 | ||
The Travelers Cos., Inc. | 68,900 | 2,990,260 | ||
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9,086,787 | ||||
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Internet & Catalog Retail 0.5% | ||||
Amazon.com, Inc. (a) | 20,200 | 1,481,266 | ||
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Internet Software & Services 1.7% | ||||
eBay, Inc. (a) | 76,100 | 2,079,813 | ||
Google, Inc. Class A (a) | 5,720 | 3,011,122 | ||
Yahoo! Inc. (a) | 10,000 | 206,600 | ||
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5,297,535 | ||||
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Common Stocks | Shares | Value | ||
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Leisure Equipment & Products 0.9% | ||||
Eastman Kodak Co. | 61,800 | $ 891,774 | ||
Mattel, Inc. | 111,700 | 1,912,304 | ||
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2,804,078 | ||||
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Life Sciences Tools & Services 0.2% | ||||
Thermo Fisher Scientific, Inc. (a) | 11,600 | 646,468 | ||
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Machinery 1.7% | ||||
Caterpillar, Inc. | 36,200 | 2,672,284 | ||
Cummins, Inc. | 21,600 | 1,415,232 | ||
Deere & Co. | 16,200 | 1,168,506 | ||
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5,256,022 | ||||
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Media 0.7% | ||||
CBS Corp. Class B | 76,850 | 1,497,807 | ||
The DIRECTV Group, Inc.(a) | 32,000 | 829,120 | ||
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2,326,927 | ||||
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Metals & Mining 1.6% | ||||
Alcoa, Inc. | 29,600 | 1,054,352 | ||
Allegheny Technologies, Inc. | 18,300 | 1,084,824 | ||
Freeport-McMoRan Copper & Gold, Inc. Class B | 23,900 | 2,800,841 | ||
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4,940,017 | ||||
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Multi-Utilities 2.6% | ||||
Ameren Corp. | 11,600 | 489,868 | ||
Consolidated Edison, Inc. | 31,300 | 1,223,517 | ||
Dominion Resources, Inc. | 15,800 | 750,342 | ||
Public Service Enterprise Group, Inc. | 64,200 | 2,948,706 | ||
Xcel Energy, Inc. | 134,000 | 2,689,380 | ||
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8,101,813 | ||||
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Multiline Retail 0.1% | ||||
Target Corp. | 9,400 | 437,006 | ||
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Oil, Gas & Consumable Fuels 11.9% | ||||
Anadarko Petroleum Corp. | 29,300 | 2,192,812 | ||
Apache Corp. | 9,400 | 1,306,600 | ||
Chevron Corp. | 68,906 | 6,830,652 | ||
ConocoPhillips (b) | 45,800 | 4,323,062 | ||
Devon Energy Corp. | 8,700 | 1,045,392 | ||
EOG Resources, Inc. | 10,200 | 1,338,240 | ||
Exxon Mobil Corp. | 128,100 | 11,289,453 | ||
Hess Corp. | 22,000 | 2,776,180 | ||
Spectra Energy Corp. | 110,000 | 3,161,400 | ||
Valero Energy Corp. | 15,100 | 621,818 | ||
XTO Energy, Inc. | 37,700 | 2,582,827 | ||
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37,468,436 | ||||
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Paper & Forest Products 0.6% | ||||
International Paper Co. | 50,700 | 1,181,310 | ||
Weyerhaeuser Co. | 15,300 | 782,442 | ||
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1,963,752 | ||||
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See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
7 |
Schedule of Investments (continued) |
BlackRock Enhanced Equity Yield Fund, Inc.
(Percentages shown are based on Net Assets)
Common Stocks | Shares | Value | ||
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|
||
Pharmaceuticals 7.4% | ||||
Abbott Laboratories | 22,400 | $ 1,186,528 | ||
Bristol-Myers Squibb Co. | 115,800 | 2,377,374 | ||
Eli Lilly & Co. | 49,300 | 2,275,688 | ||
Johnson & Johnson | 101,500 | 6,530,510 | ||
Merck & Co., Inc. | 99,400 | 3,746,386 | ||
Pfizer, Inc. | 290,500 | 5,075,035 | ||
Schering-Plough Corp. | 63,000 | 1,240,470 | ||
Wyeth | 15,900 | 762,564 | ||
|
||||
23,194,555 | ||||
|
|
|
||
Real Estate Investment Trusts (REITs) 1.3% | ||||
Plum Creek Timber Co., Inc. | 57,100 | 2,438,741 | ||
Vornado Realty Trust | 17,800 | 1,566,400 | ||
|
||||
4,005,141 | ||||
|
|
|
||
Semiconductors & Semiconductor Equipment 3.2% | ||||
Applied Materials, Inc. | 37,700 | 719,693 | ||
Intel Corp. | 131,600 | 2,826,768 | ||
Linear Technology Corp. | 37,100 | 1,208,347 | ||
Microchip Technology, Inc. | 52,500 | 1,603,350 | ||
National Semiconductor Corp. | 55,700 | 1,144,078 | ||
Nvidia Corp. (a) | 90,250 | 1,689,480 | ||
Texas Instruments, Inc. | 32,200 | 906,752 | ||
|
||||
10,098,468 | ||||
|
|
|
||
Software 3.6% | ||||
Autodesk, Inc. (a) | 54,500 | 1,842,645 | ||
Electronic Arts, Inc. (a) | 18,500 | 821,955 | ||
Microsoft Corp. | 230,200 | 6,332,802 | ||
Oracle Corp. (a) | 108,200 | 2,272,200 | ||
|
||||
11,269,602 | ||||
|
|
|
||
Specialty Retail 1.4% | ||||
Home Depot, Inc. | 62,500 | 1,463,750 | ||
Staples, Inc. | 123,100 | 2,923,625 | ||
|
||||
4,387,375 | ||||
|
|
|
||
Textiles, Apparel & Luxury Goods 0.8% | ||||
VF Corp. | 35,500 | 2,526,890 | ||
|
|
|
||
Thrifts & Mortgage Finance 0.5% | ||||
Fannie Mae | 27,600 | 538,476 | ||
Freddie Mac | 19,500 | 319,800 | ||
Washington Mutual, Inc. (c) | 177,300 | 874,089 | ||
|
||||
1,732,365 | ||||
|
|
|
||
Tobacco 1.8% | ||||
Philip Morris International, Inc. | 16,600 | 819,874 | ||
Reynolds American, Inc. | 40,500 | 1,890,135 | ||
UST, Inc. | 51,800 | 2,828,798 | ||
|
||||
5,538,807 | ||||
|
|
|
||
Wireless Telecommunication Services 0.2% | ||||
Sprint Nextel Corp. | 80,100 | 760,951 | ||
|
|
|
||
Total Common Stocks | ||||
(Cost $334,548,928) 95.1% | 299,001,118 | |||
|
|
|
Beneficial Interest | ||||||
Short-Term Securities | (000) | Value | ||||
|
|
|
|
|||
BlackRock Liquidity Series, LLC | ||||||
Money Market Series, 2.70% (d)(e)(f) | $ 24,740 | $ 24,740,410 | ||||
|
|
|
||||
Total Short-Term Securities | ||||||
(Cost $24,740,410) 7.9% | 24,740,410 | |||||
|
|
|
|
|||
Options Purchased | Contracts | |||||
|
|
|
||||
Call Options Purchased | ||||||
3M Co., expiring July 2008 at $85 | 60 | 300 | ||||
AT&T Inc., expiring July 2008 at $37.50 | 440 | 3,300 | ||||
Abbott Laboratories, expiring August 2008 at $52.50 | 20 | 4,000 | ||||
Aetna, Inc., expiring July 2008 at $50 | 30 | 225 | ||||
Amazon.com, Inc., expiring July 2008 at $80 | 40 | 2,920 | ||||
Amgen, Inc., expiring July 2008 at $45 | 50 | 12,525 | ||||
Anadarko Petroleum Corp., expiring August 2008 | ||||||
at $60 | 60 | 94,200 | ||||
Apple, Inc., expiring July 2008 at $150 | 70 | 132,125 | ||||
Autodesk, Inc., expiring July 2008 at $40 | 80 | 600 | ||||
Bank of America Corp., expiring August 2008 at $45 | 120 | 240 | ||||
Carnival Corp., expiring July 2008 at $40 | 80 | 400 | ||||
Caterpillar, Inc., expiring August 2008 at $85 | 120 | 5,520 | ||||
Cisco Systems, Inc., expiring August 2008 at $26 | 130 | 3,510 | ||||
The Coca-Cola Co., expiring August 2008 at $62.50 | 80 | 600 | ||||
ConocoPhillips, expiring August 2008 at $85 | 70 | 73,150 | ||||
Corning, Inc., expiring August 2008 at $25 | 60 | 3,450 | ||||
Cummins, Inc., expiring August 2008 at $75 | 80 | 16,200 | ||||
Dell, Inc., expiring July 2008 at $24 | 110 | 1,155 | ||||
eBay, Inc., expiring July 2008 at $30 | 150 | 4,275 | ||||
E.I. du Pont de Nemours & Co., expiring July 2008 | ||||||
at $47.50 | 30 | 225 | ||||
E.I. du Pont de Nemours & Co., expiring July 2008 | ||||||
at $50 | 60 | 300 | ||||
EMC Corp., expiring July 2008 at $18 | 70 | 105 | ||||
Eli Lilly & Co., expiring July 2008 at $55 | 80 | 400 | ||||
Express Scripts, Inc., expiring August 2008 at $65 | 30 | 7,500 | ||||
Exxon Mobil Corp., expiring August 2008 at $95 | 80 | 7,560 | ||||
Freeport-McMoRan Copper & Gold, Inc. Class B, | ||||||
expiring August 2008 at $95 | 40 | 97,900 | ||||
Gilead Sciences, Inc., expiring August 2008 at $55 | 50 | 7,375 | ||||
The Goldman Sachs Group, Inc., expiring July 2008 | ||||||
at $175 | 50 | 30,875 | ||||
Hess Corp., expiring August 2008 at $95 | 40 | 130,600 | ||||
Hewlett-Packard Co., expiring August 2008 at $45 | 90 | 12,375 |
See Notes to Financial Statements. |
8 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Schedule of Investments (continued) |
BlackRock Enhanced Equity Yield Fund, Inc.
(Percentages shown are based on Net Assets) |
Options Purchased | Contracts | Value | ||
|
|
|
||
Call Options Purchased (concluded) | ||||
Intel Corp., expiring July 2008 at $20 | 340 | $ 63,580 | ||
JPMorgan Chase & Co., expiring August 2008 | ||||
at $42.50 | 230 | 7,360 | ||
Johnson Controls, Inc., expiring July 2008 at $35 | 40 | 300 | ||
Lehman Brothers Holdings, Inc., expiring July 2008 | ||||
at $60 | 50 | 50 | ||
Marathon Oil Corp., expiring July 2008 at $55 | 10 | 600 | ||
Medco Health Solutions, Inc., expiring July 2008 | ||||
at $45 | 50 | 13,750 | ||
Merck & Co., Inc., expiring July 2008 at $47.50 | 170 | 850 | ||
National Oilwell Varco, Inc., expiring August 2008 | ||||
at $60 | 60 | 176,400 | ||
Oracle Corp., expiring August 2008 at $24 | 190 | 2,375 | ||
QUALCOMM, Inc., expiring July 2008 at $42.50 | 140 | 37,100 | ||
Reynolds American, Inc., expiring August 2008 | ||||
at $60 | 50 | 375 | ||
Rockwell Automation, Inc., expiring July 2008 | ||||
at $60 | 60 | 300 | ||
Schlumberger Ltd., expiring August 2008 at $90 | 20 | 37,000 | ||
Smith International, Inc., expiring July 2008 | ||||
at $62.50 | 80 | 166,000 | ||
Staples, Inc., expiring August 2008 at $25 | 100 | 7,500 | ||
Texas Instruments, Inc., expiring July 2008 at $30 | 65 | 1,203 | ||
UST, Inc., expiring July 2008 at $55 | 100 | 10,500 | ||
United Parcel Service, Inc. Class B, expiring July 2008 | ||||
at $75 | 70 | 350 | ||
VF Corp., expiring August 2008 at $80 | 60 | 4,350 | ||
Verizon Communications, Inc., expiring July 2008 | ||||
at $40 | 160 | 1,120 | ||
Wal-Mart Stores, Inc., expiring July 2008 at $57.50 | 170 | 12,495 | ||
Waste Management, Inc., expiring July 2008 | ||||
at $35 | 10 | 2,850 | ||
Wells Fargo & Co., expiring July 2008 at $27.50 | 120 | 2,400 | ||
Wells Fargo & Co., expiring July 2008 at $35 | 50 | 250 | ||
XTO Energy, Inc., expiring August 2008 at $70 | 70 | 25,200 | ||
|
|
|
||
Total Options Purchased | ||||
(Cost $1,428,639) 0.4% | 1,228,168 | |||
|
|
|
||
Total Investments Before Options Written | ||||
(Cost $360,717,977*) 103.4% | 324,969,696 | |||
|
|
|
||
Options Written | ||||
|
|
|
||
Call Options Written | ||||
Abbott Laboratories, expiring August 2008 | ||||
at $55 | 40 | (3,800) | ||
Amgen, Inc., expiring July 2008 at $47.50 | 100 | (8,600) |
Options Written | Contracts | Value | ||
|
|
|
||
Call Options Written (concluded) | ||||
Anadarko Petroleum Corp., expiring August 2008 | ||||
at $65 | 120 | $ (133,800) | ||
Apple, Inc., expiring July 2008 at $170 | 140 | (72,450) | ||
ConocoPhillips, expiring August 2008 at $90 | 140 | (93,800) | ||
Cummins, Inc., expiring August 2008 at $80 | 160 | (17,600) | ||
Express Scripts, Inc., expiring August 2008 | ||||
at $75 | 60 | (2,400) | ||
Exxon Mobil Corp., expiring August 2008 | ||||
at $100 | 160 | (4,560) | ||
Freeport-McMoRan Copper & Gold, Inc. Class B, | ||||
expiring August 2008 at $110 | 80 | (110,200) | ||
Gilead Sciences, Inc., expiring August 2008 | ||||
at $60 | 100 | (3,000) | ||
The Goldman Sachs Group, Inc., expiring July 2008 | ||||
at $195 | 100 | (5,250) | ||
Hess Corp., expiring August 2008 at $110 | 80 | (159,600) | ||
Hewlett-Packard Co., expiring August 2008 | ||||
at $50 | 180 | (4,050) | ||
Intel Corp., expiring July 2008 at $22.50 | 680 | (31,620) | ||
JPMorgan Chase & Co., expiring August 2008 | ||||
at $45 | 460 | (6,210) | ||
Medco Health Solutions, Inc., expiring July 2008 | ||||
at $50 | 100 | (3,750) | ||
National Oilwell Varco, Inc., expiring August 2008 | ||||
at $70 | 120 | (240,000) | ||
QUALCOMM, Inc., expiring July 2008 at $47.50 | 280 | (11,620) | ||
S&P 500 Listed Option, expiring August 2008 | ||||
at $1,370 | 790 | (576,700) | ||
S&P 500 Listed Option, expiring August 2008 | ||||
at $1,380 | 450 | (247,500) | ||
Schlumberger Ltd., expiring August 2008 at $10 | 40 | (42,000) | ||
Smith International, Inc., expiring July 2008 | ||||
at $70 | 160 | (213,600) | ||
Staples, Inc., expiring August 2008 at $27.50 | 200 | (3,500) | ||
UST, Inc., expiring July 2008 at $60 | 200 | (4,500) | ||
VF Corp., expiring August 2008 at $85 | 70 | (1,750) | ||
Wal-Mart Stores, Inc., expiring July 2008 at $60 | 340 | (6,290) | ||
Waste Management, Inc., expiring July 2008 | ||||
at $37.50 | 20 | (1,900) | ||
XTO Energy, Inc., expiring August 2008 at $75 | 140 | (26,950) | ||
|
|
|
||
Total Options Written | ||||
(Premiums Received $3,488,930) (0.7%) | (2,037,000) | |||
|
|
|
||
Total Investments, Net of Options Written 102.7% | 322,932,696 | |||
Liabilities in Excess of Other Assets (2.7%) | (8,544,836) | |||
|
||||
Net Assets 100.0% | $ 314,387,860 | |||
|
|
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2008, as computed for federal income tax purposes, were as follows: |
Aggregate cost | $ 360,718,208 | |
|
||
Gross unrealized appreciation | $ 23,528,323 | |
Gross unrealized depreciation | (59,276,835) | |
|
||
Net unrealized depreciation | $ (35,748,512) | |
|
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
9 |
Schedule of Investments (concluded) |
BlackRock Enhanced Equity Yield Fund, Inc. |
(a) Non-income producing security.
(b) All, or a portion of security, pledged as collateral in connection with open financial futures contracts. (c) Security, or a portion of security, is on loan. (d) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: |
Net | ||||
Activity | Interest | |||
Affiliate | (000) | Income | ||
|
|
|
||
BlackRock Liquidity Series, LLC | ||||
Money Market Series | $(9,980) | $467,155 | ||
|
|
|
(e) Represents the current yield as of report date.
(f) A portion of security was purchased with the cash proceeds from
securities loans.
Financial futures contracts purchased as of June 30,2008 were as follows:
Expiration | Face | Unrealized | ||||||
Contracts | Issue | Date | Value | Depreciation | ||||
|
|
|
|
|
||||
272 | S&P 500 Index September 2008 | $18,134,881 | $ (711,921) | |||||
|
|
|
|
For Fund compliance purposes,the Funds industry classifications refer to any
one or more of the industry sub-classifications used by one or more widely
recognized market indexes or ratings group indexes, and/or as defined by Fund
management. This definition may not apply for purposes of this report, which may
combine industry sub-classifications for reporting ease.
Effective January 1,2008,the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, Fair Value
Measurements (FAS 157). FAS 157 clarifies the definition of fair value, estab-
lishes a framework for measuring fair values and requires additional disclosures
about the use of fair value measurements. Various inputs are used in determining
the fair value of investments, which are as follows:
Level 1 price quotations in active markets/exchanges for identical
securities
Level 2 other observable inputs (including,but not limited to: quoted prices
for 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)
Level 3 unobservable inputs based on the best information available in the
circumstance, to the extent observable inputs are not available (including the
Fund's own assumption used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities. For
information about the Fund's policy regarding valuation of investments and
other significant accounting policies, please refer to Note 1 of the Notes to
Financial Statements.
The following table summarizes the inputs used as of June 30, 2008 in deter-
mining the fair valuation of the Fund's investments:
Other | ||||
Valuation | Investments in | Financial | ||
Inputs | Securities | Instruments* | ||
|
|
|
||
Level 1 | $299,001,118 | $(1,520,753) | ||
Level 2 | 24,740,410 | | ||
Level 3 | | | ||
|
|
|
||
Total | $323,741,528 | $(1,520,753) | ||
|
|
* Other financial instruments are options and futures. |
See Notes to Financial Statements. |
10 SEMI-ANNUAL REPORT JUNE 30, 2008 |
Schedule of Investments June 30, 2008 (Unaudited) |
Common Stocks | Shares | Value | ||
|
|
|
||
Aerospace & Defense 1.2% | ||||
L-3 Communications Holdings, Inc. | 3,700 | $ 336,219 | ||
Northrop Grumman Corp. | 19,300 | 1,291,170 | ||
Precision Castparts Corp. | 2,500 | 240,925 | ||
United Technologies Corp. | 21,500 | 1,326,550 | ||
|
||||
3,194,864 | ||||
|
|
|
||
Air Freight & Logistics 1.1% | ||||
United Parcel Service, Inc. Class B | 46,200 | 2,839,914 | ||
|
|
|
||
Auto Components 0.1% | ||||
Johnson Controls, Inc. | 9,600 | 275,328 | ||
|
|
|
||
Automobiles 0.2% | ||||
General Motors Corp. | 42,500 | 488,750 | ||
|
|
|
||
Beverages 1.3% | ||||
The Coca-Cola Co. | 43,100 | 2,240,338 | ||
PepsiCo, Inc. | 20,200 | 1,284,518 | ||
|
||||
3,524,856 | ||||
|
|
|
||
Biotechnology 3.2% | ||||
Amgen, Inc. (a) | 37,900 | 1,787,364 | ||
Celgene Corp. (a) | 28,000 | 1,788,360 | ||
Genzyme Corp. (a) | 30,700 | 2,211,014 | ||
Gilead Sciences, Inc. (a) | 48,800 | 2,583,960 | ||
|
||||
8,370,698 | ||||
|
|
|
||
Building Products 0.1% | ||||
Masco Corp. | 15,400 | 242,242 | ||
|
|
|
||
Capital Markets 1.6% | ||||
The Charles Schwab Corp. | 15,400 | 316,316 | ||
Franklin Resources, Inc. | 2,600 | 238,290 | ||
The Goldman Sachs Group, Inc. | 11,890 | 2,079,561 | ||
Legg Mason, Inc. | 21,400 | 932,398 | ||
Morgan Stanley | 13,100 | 472,517 | ||
|
||||
4,039,082 | ||||
|
|
|
||
Chemicals 1.3% | ||||
The Dow Chemical Co. | 40,500 | 1,413,855 | ||
E.I. du Pont de Nemours & Co. | 24,700 | 1,059,383 | ||
Eastman Chemical Co. | 11,600 | 798,776 | ||
|
||||
3,272,014 | ||||
|
|
|
||
Commercial Banks 2.6% | ||||
BB&T Corp. | 21,800 | 496,386 | ||
Comerica, Inc. | 7,400 | 189,662 | ||
SunTrust Banks, Inc. | 14,500 | 525,190 | ||
U.S. Bancorp | 91,900 | 2,563,091 | ||
Wachovia Corp. | 106,800 | 1,658,604 | ||
Wells Fargo & Co. | 53,200 | 1,263,500 | ||
|
||||
6,696,433 | ||||
|
|
|
||
Commercial Services & Supplies 1.6% | ||||
Pitney Bowes, Inc. | 26,800 | 913,880 | ||
R.R. Donnelley & Sons Co. | 67,200 | 1,995,168 | ||
Waste Management, Inc. | 35,600 | 1,342,476 | ||
|
||||
4,251,524 | ||||
|
|
|
Common Stocks | Shares | Value | ||
|
|
|
||
Communications Equipment 5.3% | ||||
Ciena Corp. (a) | 27,271 | $ 631,869 | ||
Cisco Systems, Inc. (a) | 173,100 | 4,026,306 | ||
Corning, Inc. | 45,600 | 1,051,080 | ||
Motorola, Inc. | 63,400 | 465,356 | ||
QUALCOMM, Inc. | 109,200 | 4,845,204 | ||
Research In Motion Ltd. (a) | 24,349 | 2,846,398 | ||
|
||||
13,866,213 | ||||
|
|
|
||
Computers & Peripherals 6.1% | ||||
Apple, Inc. (a) | 74,700 | 12,507,768 | ||
EMC Corp. (a) | 33,900 | 497,991 | ||
Hewlett-Packard Co. | 40,200 | 1,777,242 | ||
International Business Machines Corp. | 9,100 | 1,078,623 | ||
|
||||
15,861,624 | ||||
|
|
|
||
Construction & Engineering 0.7% | ||||
Fluor Corp. | 9,100 | 1,693,328 | ||
|
|
|
||
Consumer Finance 0.1% | ||||
Discover Financial Services, Inc. | 21,000 | 276,570 | ||
|
|
|
||
Distributors 0.3% | ||||
Genuine Parts Co. | 20,400 | 809,472 | ||
|
|
|
||
Diversified Consumer Services 0.2% | ||||
Apollo Group, Inc. Class A (a) | 14,400 | 637,344 | ||
|
|
|
||
Diversified Financial Services 2.3% | ||||
Bank of America Corp. | 110,301 | 2,632,885 | ||
CME Group, Inc. | 840 | 321,880 | ||
Citigroup, Inc. | 17,100 | 286,596 | ||
IntercontinentalExchange, Inc. (a) | 3,400 | 387,600 | ||
JPMorgan Chase & Co. | 65,300 | 2,240,443 | ||
|
||||
5,869,404 | ||||
|
|
|
||
Diversified Telecommunication Services 2.8% | ||||
AT&T Inc. | 98,332 | 3,312,805 | ||
Embarq Corp. | 6,519 | 308,153 | ||
Verizon Communications, Inc. | 70,432 | 2,493,293 | ||
Windstream Corp. | 97,761 | 1,206,371 | ||
|
||||
7,320,622 | ||||
|
|
|
||
Electric Utilities 1.0% | ||||
Progress Energy, Inc. | 36,200 | 1,514,246 | ||
The Southern Co. | 30,500 | 1,065,060 | ||
|
||||
2,579,306 | ||||
|
|
|
||
Electrical Equipment 0.3% | ||||
Emerson Electric Co. | 16,200 | 801,090 | ||
|
|
|
||
Electronic Equipment & Instruments 0.1% | ||||
Tyco Electronics Ltd. | 7,875 | 282,082 | ||
|
|
|
||
Energy Equipment & Services 2.9% | ||||
Baker Hughes, Inc. | 5,900 | 515,306 | ||
National Oilwell Varco, Inc. (a) | 28,200 | 2,501,904 | ||
Schlumberger Ltd. | 2,903 | 311,869 | ||
Smith International, Inc. | 27,282 | 2,268,225 | ||
Transocean, Inc. | 9,654 | 1,471,173 | ||
Weatherford International Ltd. (a) | 10,800 | 535,572 | ||
|
||||
7,604,049 | ||||
|
|
|
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
11 |
Schedule of Investments (continued) |
Common Stocks | Shares | Value | ||
|
|
|
||
Food & Staples Retailing 2.5% | ||||
CVS Caremark Corp. | 23,900 | $ 945,723 | ||
SYSCO Corp. | 76,800 | 2,112,768 | ||
Wal-Mart Stores, Inc. | 52,200 | 2,933,640 | ||
Walgreen Co. | 16,100 | 523,411 | ||
|
||||
6,515,542 | ||||
|
|
|
||
Food Products 0.8% | ||||
Kraft Foods, Inc. | 46,127 | 1,312,313 | ||
Sara Lee Corp. | 72,100 | 883,225 | ||
|
||||
2,195,538 | ||||
|
|
|
||
Health Care Equipment & Supplies 0.4% | ||||
Boston Scientific Corp. (a) | 35,886 | 441,039 | ||
Covidien Ltd. | 7,875 | 377,134 | ||
Stryker Corp. | 5,500 | 345,840 | ||
|
||||
1,164,013 | ||||
|
|
|
||
Health Care Providers & Services 1.9% | ||||
Aetna, Inc. | 8,200 | 332,346 | ||
Cigna Corp. | 10,100 | 357,439 | ||
Express Scripts, Inc. (a) | 16,400 | 1,028,608 | ||
Humana, Inc. (a) | 24,700 | 982,319 | ||
Medco Health Solutions, Inc. (a) | 10,300 | 486,160 | ||
UnitedHealth Group, Inc. | 46,300 | 1,215,375 | ||
WellPoint, Inc. (a) | 11,300 | 538,558 | ||
|
||||
4,940,805 | ||||
|
|
|
||
Hotels, Restaurants & Leisure 1.7% | ||||
Carnival Corp. | 7,000 | 230,720 | ||
McDonalds Corp. | 43,500 | 2,445,570 | ||
Starbucks Corp. (a) | 45,600 | 717,744 | ||
Wynn Resorts Ltd. | 13,400 | 1,090,090 | ||
|
||||
4,484,124 | ||||
|
|
|
||
Household Durables 1.5% | ||||
Fortune Brands, Inc. | 23,200 | 1,447,912 | ||
Lennar Corp. Class A | 32,000 | 394,880 | ||
Newell Rubbermaid, Inc. | 46,200 | 775,698 | ||
Whirlpool Corp. | 19,900 | 1,228,427 | ||
|
||||
3,846,917 | ||||
|
|
|
||
Household Products 1.3% | ||||
Colgate-Palmolive Co. | 5,100 | 352,410 | ||
Kimberly-Clark Corp. | 4,800 | 286,944 | ||
The Procter & Gamble Co. | 43,600 | 2,651,316 | ||
|
||||
3,290,670 | ||||
|
|
|
||
IT Services 1.4% | ||||
Automatic Data Processing, Inc. | 30,900 | 1,294,710 | ||
Paychex, Inc. | 77,500 | 2,424,200 | ||
|
||||
3,718,910 | ||||
|
|
|
||
Industrial Conglomerates 2.7% | ||||
3M Co. | 24,300 | 1,691,037 | ||
General Electric Co. | 191,850 | 5,120,477 | ||
Textron, Inc. | 5,800 | 277,994 | ||
|
||||
7,089,508 | ||||
|
|
|
Common Stocks | Shares | Value | ||
|
|
|
||
Insurance 1.3% | ||||
American International Group, Inc. | 7,400 | $ 195,804 | ||
Hartford Financial Services Group, Inc. | 3,900 | 251,823 | ||
Lincoln National Corp. | 20,100 | 910,932 | ||
Marsh & McLennan Cos., Inc. | 10,500 | 278,775 | ||
Prudential Financial, Inc. | 7,400 | 442,076 | ||
The Travelers Cos., Inc. | 31,100 | 1,349,740 | ||
|
||||
3,429,150 | ||||
|
|
|
||
Internet & Catalog Retail 0.3% | ||||
Amazon.com, Inc. (a) | 12,100 | 887,293 | ||
|
|
|
||
Internet Software & Services 4.4% | ||||
Akamai Technologies, Inc. (a) | 32,800 | 1,141,112 | ||
Baidu.com, Inc. (a)(b) | 1,854 | 580,228 | ||
eBay, Inc. (a) | 97,807 | 2,673,065 | ||
Google, Inc. Class A (a)(c) | 13,060 | 6,875,045 | ||
Yahoo! Inc. (a) | 12,600 | 260,316 | ||
|
||||
11,529,766 | ||||
|
|
|
||
Life Sciences Tools & Services 0.5% | ||||
Thermo Fisher Scientific, Inc. (a) | 24,400 | 1,359,812 | ||
|
|
|
||
Machinery 1.1% | ||||
Caterpillar, Inc. | 16,900 | 1,247,558 | ||
Cummins, Inc. | 18,500 | 1,212,120 | ||
Danaher Corp. | 4,000 | 309,200 | ||
|
||||
2,768,878 | ||||
|
|
|
||
Media 1.2% | ||||
CBS Corp. Class B | 19,400 | 378,106 | ||
Comcast Corp. Class A | 105,950 | 2,009,872 | ||
The DIRECTV Group, Inc.(a) | 26,600 | 689,206 | ||
|
||||
3,077,184 | ||||
|
|
|
||
Metals & Mining 1.1% | ||||
Allegheny Technologies, Inc. | 6,000 | 355,680 | ||
Freeport-McMoRan Copper & Gold, Inc. Class B | 17,200 | 2,015,668 | ||
Nucor Corp. | 5,600 | 418,152 | ||
|
||||
2,789,500 | ||||
|
|
|
||
Multi-Utilities 0.8% | ||||
Xcel Energy, Inc. | 105,200 | 2,111,364 | ||
|
|
|
||
Oil, Gas & Consumable Fuels 8.3% | ||||
Anadarko Petroleum Corp. | 8,600 | 643,624 | ||
Apache Corp. | 6,100 | 847,900 | ||
Chesapeake Energy Corp. | 21,500 | 1,418,140 | ||
Chevron Corp. | 46,500 | 4,609,545 | ||
ConocoPhillips | 27,521 | 2,597,707 | ||
Devon Energy Corp. | 4,500 | 540,720 | ||
Exxon Mobil Corp. (c) | 72,000 | 6,345,360 | ||
Spectra Energy Corp. | 23,000 | 661,020 | ||
Valero Energy Corp. | 10,100 | 415,918 | ||
Williams Cos., Inc. | 38,600 | 1,555,966 | ||
XTO Energy, Inc. | 31,600 | 2,164,916 | ||
|
||||
21,800,816 | ||||
|
|
|
||
Paper & Forest Products 0.9% | ||||
International Paper Co. | 36,600 | 852,780 | ||
MeadWestvaco Corp. | 24,600 | 586,464 | ||
Weyerhaeuser Co. | 17,900 | 915,406 | ||
|
||||
2,354,650 | ||||
|
|
|
See Notes to Financial Statements. |
12 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Schedule of Investments (continued) |
Common Stocks | Shares | Value | ||
|
|
|
||
Pharmaceuticals 6.2% | ||||
Abbott Laboratories | 23,700 | $ 1,255,389 | ||
Bristol-Myers Squibb Co. | 87,800 | 1,802,534 | ||
Eli Lilly & Co. | 16,800 | 775,488 | ||
Johnson & Johnson | 56,100 | 3,609,474 | ||
Merck & Co., Inc. | 34,500 | 1,300,305 | ||
Pfizer, Inc. | 182,900 | 3,195,263 | ||
Schering-Plough Corp. | 41,600 | 819,104 | ||
Teva Pharmaceutical Industries Ltd. (b) | 29,097 | 1,332,643 | ||
Wyeth | 46,100 | 2,210,956 | ||
|
||||
16,301,156 | ||||
|
|
|
||
Real Estate Investment Trusts (REITs) 0.9% | ||||
Developers Diversified Realty Corp. | 7,400 | 256,854 | ||
Plum Creek Timber Co., Inc. | 21,700 | 926,807 | ||
Simon Property Group, Inc. | 3,600 | 323,604 | ||
Vornado Realty Trust | 9,400 | 827,200 | ||
|
||||
2,334,465 | ||||
|
|
|
||
Semiconductors & Semiconductor Equipment 4.9% | ||||
Advanced Micro Devices, Inc. (a) | 128,900 | 751,487 | ||
Analog Devices, Inc. | 38,200 | 1,213,614 | ||
Intel Corp. | 185,040 | 3,974,659 | ||
Nvidia Corp. (a) | 92,400 | 1,729,728 | ||
Texas Instruments, Inc. | 91,200 | 2,568,192 | ||
Xilinx, Inc. | 98,200 | 2,479,550 | ||
|
||||
12,717,230 | ||||
|
|
|
||
Software 5.7% | ||||
Adobe Systems, Inc. (a) | 31,800 | 1,252,602 | ||
Autodesk, Inc. (a) | 49,800 | 1,683,738 | ||
Electronic Arts, Inc. (a) | 20,998 | 932,941 | ||
Intuit, Inc. (a) | 27,400 | 755,418 | ||
Microsoft Corp. | 264,700 | 7,281,897 | ||
Oracle Corp. (a) | 145,862 | 3,063,102 | ||
|
||||
14,969,698 | ||||
|
|
|
||
Specialty Retail 1.6% | ||||
Home Depot, Inc. | 69,100 | 1,618,322 | ||
Staples, Inc. | 107,000 | 2,541,250 | ||
|
||||
4,159,572 | ||||
|
|
|
||
Textiles, Apparel & Luxury Goods 1.0% | ||||
Coach, Inc. (a) | 19,900 | 574,712 | ||
VF Corp. | 28,000 | 1,993,040 | ||
|
||||
2,567,752 | ||||
|
|
|
||
Thrifts & Mortgage Finance 0.7% | ||||
Fannie Mae | 58,200 | 1,135,482 | ||
Washington Mutual, Inc. | 137,400 | 677,382 | ||
|
||||
1,812,864 | ||||
|
|
|
||
Tobacco 1.4% | ||||
Reynolds American, Inc. | 30,200 | 1,409,434 | ||
UST, Inc. | 40,800 | 2,228,088 | ||
|
||||
3,637,522 | ||||
|
|
|
||
Total Common Stocks | ||||
(Cost $264,846,349) 92.9% | 242,651,508 | |||
|
|
|
Beneficial Interest | ||||
Short-Term Securities | (000) | Value | ||
|
|
|
||
BlackRock Liquidity Series, LLC | ||||
Money Market Series, 2.70% (d)(e) | $ 21,608 | $ 21,607,948 | ||
|
|
|
||
Total Short-Term Securities | ||||
(Cost $21,607,948) 8.3% | 21,607,948 | |||
|
|
|
||
Options Purchased | Contracts | |||
|
|
|
||
Call Options Purchased | ||||
3M Co., expiring July 2008 at $85 | 30 | 150 | ||
AT&T Inc., expiring July 2008 at $37.50 | 310 | 2,325 | ||
Abbott Laboratories, expiring August 2008 | ||||
at $52.50 | 10 | 2,000 | ||
Adobe Systems, Inc., expiring July 2008 | ||||
at $37.50 | 50 | 12,000 | ||
Aetna, Inc., expiring July 2008 at $50 | 20 | 150 | ||
Amazon.com, Inc., expiring July 2008 at $80 | 30 | 2,190 | ||
Amgen, Inc., expiring July 2008 at $45 | 80 | 20,040 | ||
Anadarko Petroleum Corp., expiring August 2008 | ||||
at $60 | 20 | 31,400 | ||
Apple, Inc., expiring July 2008 at $150 | 160 | 302,000 | ||
Autodesk, Inc., expiring July 2008 at $40 | 110 | 825 | ||
Bank of America Corp., expiring August 2008 | ||||
at $45 | 100 | 200 | ||
Carnival Corp., expiring July 2008 at $40 | 10 | 50 | ||
Caterpillar, Inc., expiring August 2008 at $85 | 50 | 2,300 | ||
Cigna Corp., expiring July 2008 at $50 | 20 | 100 | ||
Cisco Systems, Inc., expiring August 2008 | ||||
at $26 | 160 | 4,320 | ||
The Coca-Cola Co., expiring August 2008 | ||||
at $62.50 | 30 | 225 | ||
ConocoPhillips, expiring August 2008 at $85 | 40 | 41,800 | ||
Corning, Inc., expiring August 2008 at $25 | 60 | 3,450 | ||
Cummins, Inc., expiring August 2008 at $75 | 80 | 16,200 | ||
E.I. du Pont de Nemours & Co., expiring July 2008 | ||||
at $47.50 | 21 | 158 | ||
E.I. du Pont de Nemours & Co., expiring July 2008 | ||||
at $50 | 40 | 200 | ||
EMC Corp., expiring July 2008 at $18 | 40 | 60 | ||
eBay, Inc., expiring July 2008 at $30 | 200 | 5,700 | ||
Eli Lilly & Co., expiring July 2008 at $55 | 20 | 100 | ||
Express Scripts, Inc., expiring August 2008 | ||||
at $65 | 30 | 7,500 | ||
Exxon Mobil Corp., expiring August 2008 | ||||
at $95 | 40 | 3,780 | ||
Fluor Corp., expiring July 2008 at $135 | 20 | 102,400 | ||
Freeport-McMoRan Copper & Gold, Inc. Class B, | ||||
expiring August 2008 at $95 | 40 | 97,900 | ||
Gilead Sciences, Inc., expiring August 2008 | ||||
at $55 | 110 | 16,225 | ||
The Goldman Sachs Group, Inc., expiring July 2008 | ||||
at $175 | 30 | 18,525 | ||
Hewlett-Packard Co., expiring August 2008 | ||||
at $45 | 20 | 2,750 | ||
Intel Corp., expiring July 2008 at $20 | 335 | 62,645 |
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
13 |
Schedule of Investments (continued)
BlackRock Enhanced Equity Yield & Premium Fund, Inc.
(Percentages shown are based on Net Assets)
Options Purchased | Contracts | Value | ||
|
|
|
||
Call Options Purchased (concluded) | ||||
Intuit, Inc., expiring July 2008 at $27.50 | 60 | $ 5,250 | ||
JPMorgan Chase & Co., expiring August 2008 | ||||
at $42.50 | 140 | 4,480 | ||
Johnson Controls, Inc., expiring July 2008 at $35 | 20 | 150 | ||
Medco Health Solutions, Inc., expiring July 2008 | ||||
at $45 | 30 | 8,250 | ||
Merck & Co., Inc., expiring July 2008 at $47.50 | 80 | 400 | ||
National Oilwell Varco, Inc., expiring August 2008 | ||||
at $60 | 50 | 147,000 | ||
Oracle Corp., expiring August 2008 at $24 | 250 | 3,125 | ||
QUALCOMM, Inc., expiring July 2008 at $42.50 | 160 | 42,400 | ||
Reynolds American, Inc., expiring August 2008 | ||||
at $60 | 30 | 225 | ||
Smith International, Inc., expiring July 2008 | ||||
at $62.50 | 70 | 145,250 | ||
Staples, Inc., expiring August 2008 at $25 | 80 | 6,000 | ||
UST, Inc., expiring July 2008 at $55 | 80 | 8,400 | ||
United Parcel Service, Inc. Class B, expiring | ||||
July 2008 at $75 | 40 | 200 | ||
VF Corp., expiring August 2008 at $80 | 50 | 3,625 | ||
Verizon Communications, Inc., expiring July 2008 | ||||
at $40 | 160 | 1,120 | ||
Wal-Mart Stores, Inc., expiring July 2008 at $57.50 | 90 | 6,615 | ||
Waste Management, Inc., expiring July 2008 at $35 | 20 | 5,700 | ||
Wells Fargo & Co., expiring July 2008 at $27.50 | 80 | 1,600 | ||
Wells Fargo & Co., expiring July 2008 at $35 | 50 | 250 | ||
XTO Energy, Inc., expiring August 2008 at $70 | 60 | 21,600 | ||
Xilinx, Inc., expiring July 2008 at $27.50 | 250 | 8,125 | ||
|
|
|
||
Total Options Purchased | ||||
(Cost $1,237,100) 0.5% | 1,179,433 | |||
|
|
|
||
Total Investments Before Options Written | ||||
(Cost $287,691,397*) 101.7% | 265,438,889 | |||
|
|
|
||
Options Written | ||||
|
|
|
||
Call Options Written | ||||
Abbott Laboratories, expiring August 2008 | ||||
at $55 | 20 | (1,900) | ||
Amgen, Inc., expiring July 2008 at $47.50 | 160 | (13,760) | ||
Anadarko Petroleum Corp., expiring August 2008 | ||||
at $65 | 40 | (44,600) | ||
Apple, Inc., expiring July 2008 at $170 | 320 | (165,600) | ||
ConocoPhillips, expiring August 2008 at $90 | 80 | (53,600) | ||
Cummins, Inc., expiring August 2008 at $80 | 160 | (17,600) | ||
Express Scripts, Inc., expiring August 2008 at $75 | 60 | (2,400) | ||
Exxon Mobil Corp., expiring August 2008 at $100 | 80 | (2,280) | ||
Fluor Corp., expiring July 2008 at $155 | 40 | (125,600) |
Options Written | Contracts | Value | ||
|
|
|
||
Call Options Written (concluded) | ||||
Freeport-McMoRan Copper & Gold, Inc. Class B, | ||||
expiring August 2008 at $110 | 80 | $ (110,200) | ||
Gilead Sciences, Inc., expiring August 2008 at $60 | 220 | (6,600) | ||
The Goldman Sachs Group, Inc., expiring July 2008 | ||||
at $195 | 60 | (3,150) | ||
Hewlett-Packard Co., expiring August 2008 at $50 | 40 | (900) | ||
Intel Corp., expiring July 2008 at $22.50 | 670 | (31,155) | ||
JPMorgan Chase & Co., expiring August 2008 | ||||
at $45 | 280 | (3,780) | ||
Medco Health Solutions, Inc., expiring July 2008 | ||||
at $50 | 60 | (2,250) | ||
National Oilwell Varco, Inc., expiring August 2008 | ||||
at $70 | 100 | (200,000) | ||
QUALCOMM, Inc., expiring July 2008 at $47.50 | 320 | (13,280) | ||
S&P 500 Listed Option, expiring August 2008 | ||||
at $1,370 | 650 | (474,500) | ||
S&P 500 Listed Option, expiring August 2008 | ||||
at $1,380 | 365 | (200,750) | ||
Smith International, Inc., expiring July 2008 at $70 | 140 | (186,900) | ||
Staples, Inc., expiring August 2008 at $27.50 | 160 | (2,800) | ||
UST, Inc., expiring July 2008 at $60 | 160 | (3,600) | ||
VF Corp., expiring August 2008 at $85 | 60 | (1,500) | ||
Wal-Mart Stores, Inc., expiring July 2008 at $60 | 180 | (3,330) | ||
Waste Management, Inc., expiring July 2008 | ||||
at $37.50 | 40 | (3,800) | ||
XTO Energy, Inc., expiring August 2008 at $75 | 120 | (23,100) | ||
|
|
|
||
Total Options Written | ||||
(Premiums Received $2,939,939) (0.7%) | (1,698,935) | |||
|
|
|
||
Total Investments, Net of Options Written 101.0% | 263,739,954 | |||
Liabilities in Excess of Other Assets (1.0%) | (2,565,603) | |||
|
||||
Net Assets 100.0% | $261,174,351 | |||
|
|
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2008, as computed for federal income tax purposes, were as follows: |
Aggregate cost | $287,701,679 | |
|
||
Gross unrealized appreciation | $ 18,013,396 | |
Gross unrealized depreciation | (40,276,186) | |
|
||
Net unrealized depreciation | $ (22,262,790) | |
|
(a) Non-income producing security.
(b) Depositary receipts. (c) All, or a portion of security, pledged as collateral in connection with open financial futures contracts. (d) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: |
Net | ||||
Activity | Interest | |||
Affiliate | (000) | Income | ||
|
|
|
||
BlackRock Liquidity Series, LLC | ||||
Money Market Series | $(12,274) | $512,869 | ||
|
|
|
See Notes to Financial Statements. |
14 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Schedule of Investments (concluded) |
BlackRock Enhanced Equity Yield & Premium Fund, Inc. |
(e) Represents the current yield as of report date.
Financial futures contracts purchased on June 30,2008 were as follows:
Expiration | Face | Unrealized | ||||||
Contracts | Issue | Date | Value | Depreciation | ||||
|
|
|
|
|
||||
238 | S&P 500 Index September 2008 | $15,618,655 | $ (373,565) | |||||
|
|
|
|
For Fund compliance purposes,the Funds industry classifications refer to any
one or more of the industry sub-classifications used by one or more widely
recognized market indexes or ratings group indexes, and/or as defined by Fund
management. This definition may not apply for purposes of this report, which may
combine industry sub-classifications for reporting ease.
Effective January 1,2008,the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, Fair Value
Measurements (FAS 157). FAS 157 clarifies the definition of fair value, estab-
lishes a framework for measuring fair values and requires additional disclosures
about the use of fair value measurements. Various inputs are used in determining
the fair value of investments, which are as follows:
Level 1 price quotations in active markets/exchanges for identical
securities
Level 2 other observable inputs (including,but not limited to: quoted prices
for 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)
Level 3 unobservable inputs based on the best information available in the
circumstance, to the extent observable inputs are not available (including the
Fund's own assumption used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities. For
information about the Fund's policy regarding valuation of investments and
other significant accounting policies, please refer to Note 1 of the Notes to
Financial Statements.
The following table summarizes the inputs used as of June 30, 2008 in deter-
mining the fair valuation of the Fund's investments:
Other | ||||
Valuation | Investments in | Financial | ||
Inputs | Securities | Instruments* | ||
|
|
|
||
Level 1 | $242,651,508 | $(893,067) | ||
Level 2 | 21,607,948 | | ||
Level 3 | | | ||
|
|
|
||
Total | $264,259,456 | $(893,067) | ||
|
|
* Other financial instruments are options and futures. |
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
15 |
Statements of Assets and Liabilities | ||||
BlackRock | ||||
BlackRock | Enhanced | |||
Enhanced | Equity Yield | |||
Equity Yield | & Premium | |||
June 30, 2008 (Unaudited) | Fund, Inc. | Fund, Inc. | ||
|
|
|
||
Assets | ||||
|
|
|
||
Investments at value unaffiliated 1,2 | $ 300,229,286 | $ 243,830,941 | ||
Investments at value affiliated 3 | 24,740,410 | 21,607,948 | ||
Dividends receivable | 540,540 | 319,809 | ||
Securities lending income receivable | 630 | | ||
Margin variation receivable | 9,311 | 9,055 | ||
Repurchase fees receivable | 117,927 | | ||
Prepaid expenses | 18,380 | 15,476 | ||
|
|
|||
Total assets | 325,656,484 | 265,783,229 | ||
|
|
|
||
Liabilities | ||||
|
|
|
||
Collateral at value securities loaned | 850,000 | | ||
Options written at value 4 | 2,037,000 | 1,698,935 | ||
Bank overdraft | 24,341 | 37,888 | ||
Capital shares redeemed payable | 5,896,338 | | ||
Dividends payable | 2,079,725 | 2,555,296 | ||
Investment advisory fees payable | 277,745 | 230,145 | ||
Officers and Directors fees payable | 491 | 400 | ||
Other affiliates payable | 2,821 | 2,459 | ||
Other accrued expenses payable | 100,163 | 83,755 | ||
|
|
|||
Total liabilities | 11,268,624 | 4,608,878 | ||
|
|
|
||
Net Assets | ||||
|
|
|
||
Net assets | $ 314,387,860 | $ 261,174,351 | ||
|
|
|
||
Net Assets Consist of | ||||
|
|
|
||
Par value $0.10 per share, 200,000,000 shares authorized 5 | $ 2,095,443 | $ 1,769,705 | ||
Paid-in capital in excess of par | 355,535,584 | 296,334,101 | ||
Distributions in excess of net investment income | (18,940,208) | (16,488,546) | ||
Accumulated net realized gain | 10,705,313 | 944,160 | ||
Net unrealized appreciation/depreciation | (35,008,272) | (21,385,069) | ||
|
|
|||
Net assets | $ 314,387,860 | $ 261,174,351 | ||
|
|
|||
Net asset value | $ 15.00 | $ 14.76 | ||
|
|
|||
1 Cost unaffiliated | $ 335,977,567 | $ 266,083,449 | ||
|
|
|||
2 Securities loaned | $ 838,100 | | ||
|
|
|||
3 Cost affiliated | $ 24,740,410 | $ 21,607,948 | ||
|
|
|||
4 Premiums received | $ 3,488,930 | $ 2,939,939 | ||
|
|
|||
5 Shares of Common Stock outstanding | 20,954,427 | 17,697,047 | ||
|
|
See Notes to Financial Statements. |
16 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Statements of Operations | ||||
BlackRock | ||||
BlackRock | Enhanced | |||
Enhanced | Equity Yield | |||
Equity Yield | & Premium | |||
Six Months Ended June 30, 2008 (Unaudited) | Fund, Inc. | Fund, Inc. | ||
|
|
|
||
Investment Income | ||||
|
|
|
||
Dividends 1 | $ 3,848,429 | $ 2,748,416 | ||
Interest from affiliates | 446,003 | 512,869 | ||
Securities lending | 21,152 | | ||
|
|
|||
Total income | 4,315,584 | 3,261,285 | ||
|
|
|
||
Expenses | ||||
|
|
|
||
Investment advisory | 1,736,670 | 1,422,561 | ||
Professional | 43,064 | 43,400 | ||
Accounting services | 41,054 | 51,712 | ||
Officer and Directors | 18,537 | 14,156 | ||
Custodian | 16,240 | 9,732 | ||
Printing | 13,528 | 12,272 | ||
Repurchase offer | 9,698 | 32,097 | ||
Transfer agent | 8,576 | 9,999 | ||
Registration | 5,362 | 5,145 | ||
Miscellaneous | 15,022 | 9,284 | ||
|
|
|||
Total expenses | 1,907,751 | 1,610,358 | ||
|
|
|||
Net investment income | 2,407,833 | 1,650,927 | ||
|
|
|
||
Realized and Unrealized Gain (Loss) | ||||
|
|
|
||
Net realized gain (loss) from: | ||||
Investments | (12,337,875) | (6,458,637) | ||
Futures | (1,669,251) | (3,493,343) | ||
Options written | 26,194,513 | 13,286,854 | ||
|
|
|||
12,187,387 | 3,334,874 | |||
|
|
|||
Net change in unrealized appreciation/depreciation on: | ||||
Investments | (47,473,179) | (31,618,842) | ||
Futures | (593,596) | (208,772) | ||
Options written | (148,238) | (15,381) | ||
|
|
|||
(48,215,013) | (31,842,995) | |||
|
|
|||
Total realized and unrealized loss | (36,027,626) | (28,508,121) | ||
|
|
|||
Net Decrease in Net Assets Resulting from Operations | $ (33,619,793) | $ (26,857,194) | ||
|
|
|||
1 Foreign withholding tax | $ 7,856 | $ 1,884 | ||
|
|
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
17 |
Statements of Changes in Net Assets | ||||||||
BlackRock Enhanced | BlackRock Enhanced Equtiy | |||||||
Equity Yield Fund, Inc. | Yield & Premium Fund, Inc. | |||||||
|
|
|||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||
June 30, 2008 | December 31, | June 30, 2008 | December 31, | |||||
Increase (Decrease) in Net Assets: | (Unaudited) | 2007 | (Unaudited) | 2007 | ||||
|
|
|
|
|
||||
Operations | ||||||||
|
|
|
|
|
||||
Net investment income | $ 2,407,833 | $ 6,057,971 | $ 1,650,927 | $ 3,654,996 | ||||
Net realized gain | 12,187,387 | 9,701,370 | 3,334,874 | 16,061,914 | ||||
Net change in unrealized appreciation/depreciation | (48,215,013) | 2,890,965 | (31,842,995) | 1,483,822 | ||||
|
|
|
|
|||||
Net increase (decrease) in net assets resulting from operations | (33,619,793) | 18,650,306 | (26,857,194) | 21,200,732 | ||||
|
|
|
|
|
||||
Dividends and Distributions to Shareholders From | ||||||||
|
|
|
|
|
||||
Net investment income | (21,348,041) 2 | (6,028,827) | (18,139,473) 2 | (3,654,996) | ||||
Net realized gain | | (10,245,934) | | (17,184,920) | ||||
Tax return of capital | | (26,237,858) | | (15,306,196) | ||||
|
|
|
|
|||||
Decrease in net assets resulting from dividends and distributions to shareholders | (21,348,041) | (42,512,619) | (18,139,473) | (36,146,112) | ||||
|
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|
|
|
||||
Common Stock Transactions | ||||||||
|
|
|
|
|
||||
Reinvestment of dividends and distributions | | 5,093,318 | | 2,993,123 | ||||
Net redemption of Common Stock resulting from a repurchase offer 1 | (5,778,411) | (277,233) | | (606,573) | ||||
|
|
|
|
|||||
Net increase (decrease) in net assets resulting from Common Stock transactions | (5,778,411) | 4,816,085 | | 2,386,550 | ||||
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|
||||
Net Assets | ||||||||
|
|
|
|
|
||||
Total decrease in net assets | (60,746,245) | (19,046,228) | (44,996,667) | (12,558,830) | ||||
Beginning of period | 375,134,105 | 394,180,333 | 306,171,018 | 318,729,848 | ||||
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|
|||||
End of period | $ 314,387,860 | $ 375,134,105 | $ 261,174,351 | $ 306,171,018 | ||||
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|
|||||
End of period distributions in excess of net investment income | $ (18,940,208) | | $ (16,488,546) | | ||||
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|
|||||
1 Repurchase offer fees | $ 117,927 | $ 5,575 | | $ 16,944 | ||||
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2 A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end. | |
See Notes to Financial Statements. |
18 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Financial Highlights | BlackRock Enhanced Equity Yield Fund, Inc. | |||||||||
Year Ended | Period | |||||||||
Six Months Ended | December 31, | May 6, 2005 1 | ||||||||
June 30, 2008 | to December 31, | |||||||||
(Unaudited) | 2007 | 2006 | 2005 | |||||||
Per Share Operating Performance | ||||||||||
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|
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|
|
|
|||||
Net asset value, beginning of period | $ 17.57 | $ 18.68 | $ 18.49 | $ 19.10 | ||||||
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|
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|
|||||||
Net investment income 2 | 0.11 | 0.29 | 0.27 | 0.23 | ||||||
Net realized and unrealized gain (loss) | (1.68) 3 | 0.60 3 | 2.09 3 | 0.19 | ||||||
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|
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|
|
||||||
Net increase (decrease) from investment operations | (1.57) | 0.89 | 2.36 | 0.42 | ||||||
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|
|
||||||
Dividends and distributions from: | ||||||||||
Net investment income | (1.00) 4 | (0.28) | (0.38) | (0.13) | ||||||
Net realized gain | | (0.48) | (0.96) | (0.87) | ||||||
Tax return of capital | | (1.24) | (0.83) | | ||||||
|
|
|
|
|
||||||
Total dividends and distributions | (1.00) | (2.00) | (2.17) | (1.00) | ||||||
|
|
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|
|
||||||
Offering costs resulting from the issuance of Common Stock | | | | (0.03) | ||||||
|
|
|
|
|
||||||
Net asset value, end of period | $ 15.00 | $ 17.57 | $ 18.68 | $ 18.49 | ||||||
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|||||||
Market price, end of period | $ 14.50 | $ 16.16 | $ 19.86 | $ 17.23 | ||||||
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|
||||||
Total Investment Return 5 | ||||||||||
|
|
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|
|||||
Based on net asset value | (8.84)% 6 | 4.96% | 13.38% | 2.16% 6 | ||||||
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||||||
Based on market price | (4.19)% 6 | (9.20)% | 29.35% | (9.08)% 6 | ||||||
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|
|||||
Ratios to Average Net Assets | ||||||||||
|
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|
|||||
Total expenses | 1.10% 7 | 1.09% | 1.12% | 1.07% 7 | ||||||
|
|
|
|
|
||||||
Net investment income | 1.38% 7 | 1.53% | 1.44% | 1.86% 7 | ||||||
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|||||
Supplemental Data | ||||||||||
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|
|||||
Net assets, end of period (000) | $ 314,388 | $ 375,134 | $ 394,180 | $ 387,244 | ||||||
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|
|||||||
Portfolio turnover | 18% | 46% | 49% | 35% | ||||||
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|
1
Commencement of operations.
2 Based on average shares outstanding. 3 Includes repurchase offer fees, which are less than $0.01 per share. 4 A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end. 5 Total investment returns based on market value, which can be significantly greater or less than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. 6 Aggregate total investment return. 7 Annualized. |
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
19 |
Financial Highlights | BlackRock Enhanced Equity Yield & Premium Fund, Inc. | |||||||||
Year Ended | Period | |||||||||
Six Months Ended | December 31, | June 30, 2005 1 | ||||||||
June 30, 2008 | to December 31, | |||||||||
(Unaudited) | 2007 | 2006 | 2005 | |||||||
Per Share Operating Performance | ||||||||||
Net asset value, beginning of period | $ 17.30 | $ 18.14 | $ 18.28 | $ 19.10 | ||||||
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|
|
|
|||||||
Net investment income 2 | 0.09 | 0.21 | 0.27 | 0.19 | ||||||
Net realized and unrealized gain (loss) | (1.60) 3 | 1.00 3 | 1.64 3 | 0.04 | ||||||
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|
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|
|
||||||
Net increase (decrease) from investment operations | (1.51) | 1.21 | 1.91 | 0.23 | ||||||
|
|
|
|
|
||||||
Dividends and distributions from: | ||||||||||
Net investment income | (1.03) 4 | (0.21) | (0.28) | (0.19) | ||||||
Net realized gain | | (0.97) | (0.56) | (0.68) | ||||||
Tax return of capital | | (0.87) | (1.21) | (0.16) | ||||||
|
|
|
|
|
||||||
Total dividends and distributions | (1.03) | (2.05) | (2.05) | (1.03) | ||||||
|
|
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|
|
||||||
Offering costs resulting from the issuance of Common Stock | | | | (0.02) | ||||||
|
|
|
|
|
||||||
Net asset value, end of period | $ 14.76 | $ 17.30 | $ 18.14 | $ 18.28 | ||||||
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|
|||||||
Market price, end of period | $ 13.70 | $ 15.68 | $ 19.52 | $ 16.82 | ||||||
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Total Investment Return 5 | ||||||||||
|
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|
|||||
Based on net asset value | (8.35)% 6 | 7.41% | 10.92% | 1.40% 6 | ||||||
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|
||||||
Based on market price | (6.14)% 6 | (9.53)% | 29.72% | (10.89)% 6 | ||||||
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|||||
Ratios to Average Net Assets | ||||||||||
|
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|
|||||
Total expenses | 1.13% 7 | 1.10% | 1.11% | 1.08% 7 | ||||||
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|
||||||
Net investment income | 1.16% 7 | 1.12% | 1.49% | 1.94% 7 | ||||||
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Supplemental Data | ||||||||||
|
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|||||
Net assets, end of period (000) | $ 261,174 | $ 306,171 | $ 318,730 | $ 321,498 | ||||||
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Portfolio turnover | 26% | 59% | 68% | 34% | ||||||
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|
|
1
Commencement of operations.
2 Based on average shares outstanding. 3 Includes repurchase offer fees, which are less than $0.01 per share. 4 A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end. 5 Total investment returns based on market value, which can be significantly greater or less than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges. 6 Aggregate total investment return. 7 Annualized. |
See Notes to Financial Statements. |
20 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Notes to Financial Statements
(Unaudited)
1. Significant Accounting Policies: BlackRock Enhanced Equity Yield Fund, Inc. and BlackRock Enhanced Equity Yield & Premium Fund, Inc. (the Funds or individually as the Fund) are registered under the Investment Company Act of 1940, as amended (the 1940 Act), as diversified, closed-end management investment companies. The Funds financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The Funds determine and make available for publication the net asset value of their Common Stock on a daily basis. The following is a summary of significant accounting policies followed by the Funds: Valuation of Investments: Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid price. If no bid price is available, the prior days price will be used, unless it is determined that such prior days price no longer reflects the fair value of the security. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end investment companies are valued at net asset value each business day. Short term securities are valued at amortized cost. 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 val- ued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior days price will be used, unless it is determined that such prior days price no longer reflects the fair value of the option. Over-the-counter (OTC) options are valued by an inde- pendent pricing service using a mathematical model which incorporates a number of market data factors. In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by the respective Funds Board of Directors (the Board) as reflecting fair value (Fair Value Assets). When determining the price for Fair Value Assets, the investment advisor and/or sub-advisor seeks to determine the price that the Funds might reasonably expect to receive from the current sale of that asset in an arms-length trans- |
action. Fair value determinations shall be based upon all available fac-
tors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof. Derivative Financial Instruments: The Funds may engage in various portfolio investment strategies to increase the return of the Funds and to hedge, or protect, its exposure to interest rate movements and move- ments in the securities markets. Losses may arise if the value of the con- tract decreases due to an unfavorable change in the price of the under- lying security or if the counterparty does not perform under the contract. Financial futures contracts The Funds may purchase or sell finan- cial or index futures contracts and options on such futures contracts. Futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Upon entering into a contract, the Funds deposit and maintain as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Funds agree to receive from, or pay to, the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as varia- tion margin and are recognized by the Funds as unrealized gains or losses. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Options The Funds may purchase and write call and put options. When the Funds write an option, an amount equal to the premium received by the Funds is reflected as an asset and an equivalent lia- bility. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Funds enter into a closing transaction), the Funds 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 premium received or paid). A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying position at the exercise price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying position at the exercise price at any time or at a specified time dur- ing the option period. |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
21 |
Notes to Financial Statements (continued)
Segregation: In cases in which the 1940 Act and the interpretive posi- tions of the Securities and Exchange Commission (SEC) require that the Funds segregate assets in connection with certain investments (e.g., futures) or certain borrowings, the Funds will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physi- cally segregated. Investment Transactions and Investment Income: Investment transac- tions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds have determined the ex-dividend date. Interest income is recog- nized on the accrual basis. Securities Lending: The Funds may lend securities to financial institu- tions that provide cash or securities issued or guaranteed by the U.S. government as collateral, which will be maintained at all times in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is deter- mined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. The Funds typically receive the income on the loaned securities but do not receive the income on the collateral. Where the Funds receive cash collateral, they may invest such collateral and retain the amount earned on such investment, net of any amount rebated to the borrower. A Fund may receive a flat fee for its loans. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securi- ties within the standard time period for settlement of securities transac- tions. The Funds may pay reasonable lending agent, administrative and custodial fees in connection with their loans. In the event that the bor- rower defaults on its obligation to return borrowed securities because of insolvency or for any other reason, the Funds could experience delays and costs in gaining access to the collateral. The Funds also could suffer a loss where the value of the collateral falls below the market value of the borrowed securities, in the event of borrower default or in the event of losses on investments made with cash collateral. Dividends and Distributions: Enhanced Equity Yield, Inc. declares and pays dividends quarterly from net investment income. Enhanced Equity Yield & Premium Fund, Inc. declares and pays dividends semi-annually from net investment income. Distributions of capital gains are recorded on the ex-dividend dates. If the total dividends and distributions made in any tax year exceeds net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a tax return of capital. |
Income Taxes:
It is the Funds policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment compa- nies and to distribute substantially all of its taxable income to its share- holders. Therefore, no federal income tax provision is required. Under the applicable foreign tax laws, a withholding tax may be imposed on inter- est, dividends and capital gains at various rates. The Funds file U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limita- tions on the Funds U.S. federal tax returns remain open for the years ended December 31, 2004 through December 31, 2006. The statutes of limitations on the Funds state and local tax returns may remain open for an additional year depending upon the jurisdiction. Recent Accounting Pronouncement: In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities an amendment of FASB Statement No. 133 (FAS 161) was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced dis- closure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instru- ments affect an entitys results of operations and financial position. The impact on the Funds financial statement disclosures, if any, is currently being assessed. Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan: approved by each Funds Board, non-interested Directors (Independent Directors) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts have been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Directors. This has approximately the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in other certain BlackRock Closed-End Funds. The deferred compensation plan is not funded and obligations thereun- der represent general unsecured claims against the general assets of the Funds. The Funds may, however, elect to invest in common stock of other certain BlackRock Closed-End Funds selected by the Independent Directors in order to match its deferred compensation obligations. |
22 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Notes to Financial Statements (continued)
Bank Overdraft: Enhanced Equity Yield Fund, Inc. recorded a bank overdraft due to a timing difference of securities settlement. Enhanced Equity Yield & Premium Funds, Inc. recorded a bank overdraft, which resulted from estimates of available cash. Other: Expenses directly related to each of the Funds are charged to that Fund. Other operating expenses shared by several funds are pro- rated among those funds on the basis of relative net assets or other appropriate methods. 2. Investment Advisory Agreement and Other Transactions with Affiliates: Each Fund has entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the Advisor), an indirect, wholly owned sub- sidiary of BlackRock, Inc., to provide investment advisory and adminis- tration services. Merrill Lynch & Co., Inc. (Merrill Lynch) and The PNC Financial Services Group Inc. (PNC) are the principal owners of BlackRock, Inc. The Advisor is responsible for the management of each Funds portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Advisor a monthly fee at an annual rate equal to 1.0% of the aggregate average daily value of each Funds net assets plus the proceeds of any outstanding borrowings used for leverage. The Advisor has entered into separate sub-advisory agreements with BlackRock Investment Management, LLC (BIM), an affiliate of the Advisor, with respect to each Fund, under which the Advisor pays BIM for services it provides, a monthly fee that is a percentage of the invest- ment advisory fee paid by each Fund to the Advisor. For the six months ended June 30, 2008, BlackRock Enhanced Equity Yield Fund, Inc. and BlackRock Enhanced Equity Yield & Premium Fund, Inc. reimbursed the Advisor $2,835 and $2,825, respectively for certain accounting services, which are included in accounting services in the Statements of Operations. Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S), a wholly owned subsidiary of Merrill Lynch, received $17,022 and $17,887 in commissions on the execution of portfolio security transactions for BlackRock Enhanced Equity Yield, Inc. and BlackRock Enhanced Equity Yield & Premium Fund, Inc., respectively, for the six months ended June 30, 2008. BlackRock Enhanced Equity Yield Fund has received an exemptive order from the SEC permitting them to lend portfolio securities to MLPF&S. Pursuant to that order, BlackRock Enhanced Equity Yield Fund has |
retained BIM as the securities lending agent for a fee based on a share
of the returns on investment of cash collateral. BIM may, on behalf of the Fund, invest cash collateral received by the Fund for such loans, among other things, in a private investment company managed by the Advisor or in registered money market funds advised by the Advisor or its affiliates. For the six months ended June 30, 2008, BIM received $5,115 in secu- rities lending agent fees from BlackRock Enhaned Equity Yield Fund, Inc. Certain officers and/or directors of the Funds are officers and/or direc- tors of BlackRock, Inc. or its affiliates. 3. Investments: Purchases and sales of investments, excluding short-term securities, for the six months ended June 30, 2008 were as follows: |
Total | Total | |||
Purchases | Sales | |||
|
|
|
||
BlackRock Enhanced Equity Yield | ||||
Fund, Inc | $57,489,112 | $63,348,631 | ||
BlackRock Enhanced Equity Yield & | ||||
Premium Fund, Inc | $69,438,696 | $67,326,096 | ||
|
|
|
BlackRock Enhanced Equity Yield Fund, Inc.
Transactions in call options written for the six months ended June 30, 2008 were as follows: |
Premiums | ||||
Call Options Written | Contracts | Received | ||
|
|
|
||
Outstanding call options written, | ||||
beginning of year | 1,730 | $ 5,561,868 | ||
Options written | 33,680 | 37,905,128 | ||
Options closed | (25,215) | (29,420,926) | ||
Options expired | (4,305) | (10,446,080) | ||
Options exercised | (380) | (111,060) | ||
|
|
|||
Outstanding call options written, | ||||
end of year | 5,510 | $ 3,488,930 | ||
|
|
BlackRock Enhanced Equity Yield & Premium Fund, Inc.
Transactions in call options written for the six months ended June 30, 2008, were as follows: |
Premiums | ||||
Call Options Written | Contracts | Received | ||
|
|
|
||
Outstanding call options written, | ||||
beginning of year | 1,390 | $ 4,560,235 | ||
Options written | 29,081 | 31,033,139 | ||
Options closed | (20,846) | (23,936,142) | ||
Options expired | (4,540) | (8,550,554) | ||
Options exercised | (420) | (166,739) | ||
|
|
|||
Outstanding call options written, | ||||
end of year | 4,665 | $ 2,939,939 | ||
|
|
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
23 |
Notes to Financial Statements (concluded)
4. Capital Share Transactions: Each Fund is authorized to issue 200,000,000 shares of capital stock, par value $0.10 per share, all of which were initially classified as Common Stock. Each Funds Board is authorized, however, to classify and reclassify any unissued shares of capital stock without approval of the holders of Common Stock. Common Stock Each Fund will make offers to repurchase its shares at annual (approxi- mately 12-month) intervals. The shares tendered in the repurchase offer will be subject to a repurchase fee retained by the Fund to compensate the Fund for expenses directly related to the repurchase offer. BlackRock Enhanced Equity Yield Fund, Inc. Shares issued and outstanding during the six months ended June 30, 2008 decreased by 393,614 as a result of a repurchase offer. Shares issued and outstanding for the year ended December 31, 2007 increased by 266,355 from dividend and distribution reinvestments and decreased by 15,067 as a result of a repurchase offer. BlackRock Enhanced Equity Yield & Premium Fund, Inc. Shares issued and outstanding during the six months ended June 30, 2008 remained constant. Shares issued and outstanding during the year ended December 31, 2007 increased by 163,331 from dividend and distribution reinvestments and decreased by 33,736 as a result of a repurchase offer. 5. Plan of Reorganization: On March 14, 2008, the Board approved a plan of reorganization for the Funds, subject to shareholder approval and certain other conditions, whereby BlackRock Enhanced Capital and Income Fund, Inc. will acquire substantially all of the assets and assume substantially all of the liabili- ties of each Fund in exchange for newly issued shares of BlackRock Enhanced Capital and Income Fund, Inc. 6. Subsequent Event: BlackRock Enhanced Equity Yield & Premium Fund, Inc. announced on August 8, 2008 an offer to repurchase up to 5% of its outstanding Common Stock from shareholders to commence August 15, 2008 and is scheduled to expire on September 12, 2008. |
24 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement |
The Board of Directors (collectively, the Board, the members of which
are referred to as Directors) of BlackRock Enhanced Equity Yield Fund, Inc. (EEF) and BlackRock Enhanced Equity Yield & Premium Fund, Inc. (ECV and, together with EEF, the Funds) met in April and May 2008 to consider approving the continuation of each Funds investment advisory agreement (each, an Advisory Agreement) with BlackRock Advisors, LLC (the Advisor), each Funds investment adviser. The Board also considered the approval of each Funds subadvisory agreement (each, a Subadvisory Agreement and, together with the Advisory Agreement, the Agreements) between the Advisor and BlackRock Investment Management, LLC (the Subadvisor). The Advisor and the Subadvisor are collectively referred to herein as the Advisors and, together with BlackRock, Inc., BlackRock. Activities and Composition of the Board The Board of Directors of each Fund consists of thirteen individuals, eleven of whom are not interested persons of the Funds as defined in the Investment Company Act of 1940 (the 1940 Act) (the Independent Directors). The Directors are responsible for the oversight of the opera- tions of the Funds and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in con- nection with their duties. The Chairman of the Board is an Independent Director. The Board has established four standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee and a Performance Oversight Committee. Advisory Agreement and Subadvisory Agreement Upon the consummation of the combination of BlackRock, Inc.s invest- ment management business with Merrill Lynch & Co., Inc.s investment management business, including Merrill Lynch Investment Managers, L. P., and certain affiliates, each Fund entered into an Advisory Agree- ment and a Subadvisory Agreement, each with an initial two-year term. Consistent with the 1940 Act, after the Advisory Agreements and Subadvisory Agreements respective initial two-year term, the Board is required to consider the continuation of each Funds Advisory Agreement and Subadvisory Agreement on an annual basis. In connection with this process, the Board assessed, among other things, the nature, scope and quality of the services provided to each Fund by the personnel of BlackRock and its affiliates, including investment advisory services, administrative services, secondary market support services, oversight of fund accounting and custody, and assistance in meeting legal and regulatory requirements. The Board also received and assessed informa- tion regarding the services provided to each Fund by certain unaffiliated service providers. Throughout the year, the Board also considered a range of information in connection with its oversight of the services provided by BlackRock and its affiliates. Among the matters the Board considered were: |
(a) investment performance for one-, three- and five-year periods, as
applicable, against peer funds, as well as senior management and port- folio managers analysis of the reasons for underperformance, if applica- ble; (b) fees, including advisory, administration and other fees paid to BlackRock and its affiliates by each Fund, as applicable; (c) Fund oper- ating expenses paid to third parties; (d) the resources devoted to and compliance reports relating to each Funds investment objective, policies and restrictions; (e) each Funds compliance with its Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRocks and other service providers internal controls; (h) BlackRocks implementation of the proxy voting guidelines approved by the Board; (i) the use of brokerage commissions and spread and execution quality; (j) valuation and liquidity procedures; and (k) reviews of BlackRocks business, including BlackRocks response to the increasing scale of its business. Board Considerations in Approving the Advisory Agreement and Subadvisory Agreement To assist the Board in its evaluation of the Agreements, the Directors received information from BlackRock in advance of the April 22, 2008 meeting which detailed, among other things, the organization, business lines and capabilities of the Advisors, including: (a) the responsibilities of various departments and key personnel and biographical information relating to key personnel; (b) financial statements for BlackRock; (c) the advisory and/or administrative fees paid by each Fund to the Advisors, including comparisons, compiled by Lipper Inc. (Lipper), an independent third party, with the management fees, which include advisory and administration fees, of funds with similar investment objectives (Peers); (d) the profitability of BlackRock and certain industry profitability ana- lyses for advisers to registered investment companies; (e) the expenses of BlackRock in providing various services; (f) non-investment advisory reimbursements, if applicable, and fallout benefits to BlackRock; (g) economies of scale, if any, generated through the Advisors manage- ment of all of the BlackRock closed-end funds (the Fund Complex); (h) the expenses of each Fund, including comparisons of respective Funds expense ratios (both before and after any fee waivers) with the expense ratios of its Peers; (i) an internal comparison of management fees classified by Lipper, if applicable; and (j) each Funds performance for the past one-, three- and five-year periods, as applicable, as well as each Funds performance compared to its Peers. The Board also considered other matters it deemed important to the approval process, where applicable, such as payments made to BlackRock or its affiliates relating to the distribution of Fund shares, services related to the valuation and pricing of Fund portfolio holdings, allocation of Fund brokerage fees (including the related benefits to BlackRock of soft dollars) and direct and indirect benefits to BlackRock and its affiliates from their relationship with the Funds. |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
25 |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued) |
In addition to the foregoing materials, independent legal counsel to the
Independent Directors provided a legal memorandum outlining, among other things, the duties of the Board under the 1940 Act, as well as the general principles of relevant law in reviewing and approving advisory contracts, the requirements of the 1940 Act in such matters, an advis- ers fiduciary duty with respect to advisory agreements and compensa- tion, and the standards used by courts in determining whether invest- ment company boards of directors have fulfilled their duties and the factors to be considered by boards in voting on advisory agreements. The Independent Directors reviewed this information and discussed it with independent legal counsel prior to the meeting on April 22, 2008. At the Board meeting on April 22, 2008, BlackRock made a presenta- tion to and responded to questions from the Board. Following the meet- ing on April 22, 2008, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written materials provided to the Directors prior to the meetings on May 29 and 30, 2008. At the Board meetings on May 29 and 30, 2008, BlackRock responded to further questions from the Board. In connection with BlackRocks presentations, the Board considered each Agreement and, in consultation with independent legal counsel, reviewed the factors set out in judicial decisions and SEC state- ments relating to the renewal of the Agreements. Matters Considered by the Board In connection with its deliberations with respect to the Agreements, the Board considered all factors it believed relevant with respect to each Fund, including the following: the nature, extent and quality of the services provided by the Advisors; the investment performance of each Fund; the costs of the services to be provided and profits to be realized by the Advisors and their affiliates from their relationship with the Funds; the extent to which economies of scale would be realized as the Fund Complex grows; and whether BlackRock realizes other benefits from its relationship with the Funds. A. Nature, Extent and Quality of the Services: In evaluating the nature, extent and quality of the Advisors services, the Board reviewed informa- tion concerning the types of services that the Advisors provide and are expected to provide to each Fund, narrative and statistical information concerning each Funds performance record and how such performance compares to each Funds Peers, information describing BlackRocks organization and its various departments, the experience and responsi- bilities of key personnel and available resources. The Board noted the willingness of the personnel of BlackRock to engage in open, candid discussions with the Board. The Board further considered the quality of the Advisors investment process in making portfolio management decisions. |
In addition to advisory services, the Directors considered the quality of
the administrative and non-investment advisory services provided to the Funds. The Advisors and their affiliates provided each Fund with such administrative and other services, as applicable (in addition to any such services provided by others for the Funds), and officers and other personnel as are necessary for the operations of the respective Fund. In addition to investment management services, the Advisors and their affiliates provided each Fund with services such as: preparing share- holder reports and communications, including annual and semi-annual financial statements and the Funds websites; communications with analysts to support secondary market trading; assisting with daily accounting and pricing; preparing periodic filings with regulators and stock exchanges; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal and compliance support (such as helping to prepare proxy statements and responding to regulatory inquiries); and performing other Fund administrative tasks necessary for the operation of the respective Fund (such as tax reporting and fulfilling regulatory filing requirements). The Board considered the Advisors policies and procedures for assuring compliance with applicable laws and regulations. B. The Investment Performance of the Funds and BlackRock: As previ- ously noted, the Board received performance information regarding each Fund and its Peers. Among other things, the Board received materials reflecting each Funds historic performance and each Funds perform- ance compared to its Peers. More specifically, each Funds one-, three- and five-year total returns (as applicable) were evaluated relative to its Peers (including the Peers median performance). The Board reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper rankings. The Board noted that EEF and ECV performed below the median of each Funds respective Peers for the one-year and since inception periods reported. The Board then discussed with representatives of BlackRock the reasons for each Funds underperformance during these periods compared with its Peers. The Board noted that each Funds underperformance was as a result of each Funds bias towards higher yielding equities, creating a significant allocation of each Funds portfolio to financial companies. The Board noted that the Advisor has tried to address the underperformance of each Fund with its proposal to merge the Funds with BlackRock Enhanced Capital and Income Fund, Inc. The Board concluded that BlackRock was committed to providing the resources necessary to assist the portfolio managers and to improve each Funds performance. Based on its review, the Board generally was satisfied with BlackRocks efforts to improve each Funds performance going forward. |
26 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued) |
After considering this information, the Boards concluded that the per-
formance of each Fund, in light of and after considering the other facts and circumstances applicable to each Fund, supports a conclusion that each Funds Agreements should be renewed. C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds: In evaluating the management fees and expenses that each Fund is expected to bear, the Board considered each Funds current management fee structure and each Funds expense ratios in absolute terms as well as relative to the fees and expense ratios of its applicable Peers. The Board, among other things, reviewed comparisons of each Funds gross management fees before and after any applicable reimbursements and fee waivers and total expense ratios before and after any applicable waivers with those of applicable Peers. The Board also reviewed a narrative analysis of the Peer rankings pre- pared by Lipper and summarized by BlackRock at the request of the Board. This summary placed the Peer rankings into context by analyzing various factors that affect these comparisons. The Board noted that each Fund paid contractual management fees lower than or equal to the median contractual fees paid by each Funds respective Peers. This comparison was made without giving effect to any expense reimbursements or fee waivers. The Board also compared the management fees charged and services provided by the Advisors to closed-end funds in general versus other types of clients (such as open-end investment companies and separately managed institutional accounts) in similar investment categories. The Board noted certain differences in services provided and costs incurred by the Advisor with respect to closed-end funds compared to these other types of clients and the reasons for such differences. In connection with the Boards consideration of the fees and expense information, the Board reviewed the considerable investment manage- ment experience of the Advisors and considered the high level of invest- ment management, administrative and other services provided by the Advisors. In light of these factors and the other facts and circumstances applicable to each Fund, the Board concluded that the fees paid and level of expenses incurred by each Fund under its Agreements support a conclusion that each Funds Agreements should be renewed. D. Profitability of BlackRock: The Board also considered BlackRocks profitability in conjunction with its review of fees. The Board reviewed BlackRocks profitability with respect to the Fund Complex and other fund complexes managed by the Advisors. In reviewing profitability, the Board recognized that one of the most difficult issues in determining profitability is establishing a method of allocating expenses. The Board also reviewed BlackRocks assumptions and methodology of allocating |
expenses, noting the inherent limitations in allocating costs among
various advisory products. The Board also recognized that individual fund or product line profitability of other advisors is generally not publicly available. The Board recognized that profitability may be affected by numerous factors including, among other things, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited. Nevertheless, to the extent available, the Board considered BlackRocks operating margin compared to the operating margin estimated by BlackRock for a leading investment man- agement firm whose operations consist primarily of advising closed-end funds. The comparison indicated that BlackRocks operating margin was approximately the same as the operating margin of such firm. In evaluating the reasonableness of the Advisors compensation, the Board also considered any other revenues paid to the Advisors, including partial reimbursements paid to the Advisors for certain non-investment advisory services, if applicable. The Board noted that these payments were less than the Advisors costs for providing these services. The Board also considered indirect benefits (such as soft dollar arrangements) that the Advisors and their affiliates are expected to receive, which are attrib- utable to their management of the Fund. The Board concluded that BlackRocks profitability, in light of all the other facts and circumstances applicable to each Fund, supports a conclusion that each Funds Agreements should be renewed. E. Economies of Scale: In reviewing each Funds fees and expenses, the Board examined the potential benefits of economies of scale, and whether any economies of scale should be reflected in the Funds fee structure, for example through the use of breakpoints for the Fund or the Fund Complex. In this regard, the Board reviewed information provided by BlackRock, noting that most closed-end fund complexes do not have fund-level breakpoints because closed-end funds generally do not expe- rience substantial growth after their initial public offering and each fund is managed independently consistent with its own investment objectives. The Board noted that only three closed-end funds in the Fund Complex have breakpoints in their fee structures. Information provided by Lipper also revealed that only one closed-end fund complex used a complex- level breakpoint structure. The Board found, based on its review of comparable funds, that each Funds management fee is appropriate in light of the scale of the Fund. F. Other Factors: In evaluating fees, the Board also considered indirect benefits or profits the Advisors or their affiliates may receive as a result of their relationships with the Funds (fall-out benefits). The Directors, including the Independent Directors, considered the intangible benefits that accrue to the Advisors and their affiliates by virtue of their relation- ships with the Funds, including potential benefits accruing to the Advisors and their affiliates as a result of participating in offerings of the |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
27 |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement (concluded) |
Funds shares, potentially stronger relationships with members of the
broker-dealer community, increased name recognition of the Advisors and their affiliates, enhanced sales of other investment funds and prod- ucts sponsored by the Advisors and their affiliates and increased assets under management which may increase the benefits realized by the Advisors from soft dollar arrangements with broker-dealers. The Board also considered the unquantifiable nature of these potential benefits. Conclusion with Respect to the Agreements In reviewing the Agreements, the Directors did not identify any single factor discussed above as all-important or controlling and different Directors may have attributed different weights to the various factors considered. The Directors, including the Independent Directors, unani- mously determined that each of the factors described above, in light of all the other factors and all of the facts and circumstances applicable to each respective Fund, was acceptable for each Fund and supported the Directors conclusion that the terms of each Agreement were fair and reasonable, that each Funds fees are reasonable in light of the services provided to the respective Fund and that each Agreement should be approved. |
28 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
Officers and Directors
Richard E. Cavanagh, Chairman of the Board and Director Karen . Robards, Vice Chair of the Board, Chair of the Audit Committee and Director G. Nicholas Beckwith, III, Director Richard S. Davis, Director Kent Dixon, Director Frank J. Fabozzi, Director Kathleen F. Feldstein, Director James T. Flynn, Director Henry Gabbay, Director Jerrold B. Harris, Director R. Glenn Hubbard, Director W. Carl Kester, Director Robert S. Salomon, Jr., Director Donald C. Burke, Fund President and Chief Executive Officer Anne F. Ackerley, Vice President Neal J. Andrews, Chief Financial Officer Jay M. Fife, Treasurer Brian . Kindelan, Chief Compliance Officer of the Fund Howard Surloff, Secretary |
Custodian
State Street Bank and Trust Company Boston, MA 02101 Transfer Agent The Bank of New York Mellon New York, NY 10286 Accounting Agent State Street Bank and Trust Company Princeton, NJ 08540 Independent Registered Public Accounting Firm Deloitte & Touche LLP Princeton, NJ 08540 Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP New York, NY 10036 |
Additional Information
Fundamental Periodic Repurchase Policy The Board of each Fund approved a fundamental policy whereby each Fund has adopted an interval fund structure pursuant to Rule 23c-3 under the 1940 Act. As an interval fund, each Fund will make annual repurchase offers at net asset value (less repurchase fee not to exceed 2%) to all Fund shareholders. The percentage of outstanding shares that the Funds can repurchase in each offer will be established by the respective Funds Board of Directors shortly before the commencement of each offer, and will be between 5% and 25% of the respective Funds then outstanding shares. Each Fund has adopted the following fundamental policy regarding periodic repurchases: (a) The Fund will make repurchase offers at periodic intervals pursuant to Rule 23c-3 under the 1940 Act. (b) The periodic interval between repurchase request deadlines will be approximately 12 months. (c) The repurchase request deadline for each repurchase offer will be 14 days prior to the last Friday in June for BlackRock Enhanced Equity Yield Fund, Inc. and 14 days prior to the last Friday in September for BlackRock Enhanced Equity Yield & Premium Fund, Inc., provided that in the event that such day is not a business day, the repurchase request deadline will be the subsequent business day. (d) The maximum number of days between a repurchase request deadline and the next repurchase pricing date will be 14 days; provided that if the 14 th day after a repurchase request deadline is not a business day, the repurchase pricing date shall be the next business day. Each Funds Board may place such conditions and limitations on a repurchase offer as may be permitted under Rule 23c-3. Repurchase offers may be suspended or postponed under certain circumstances, as provided in Rule 23c-3. |
SEMI-ANNUAL REPORT JUNE 30, 2008 29
Additional Information (concluded)
Availability of Quarterly Schedule of Investments The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds Forms N-Q are available on the SECs website at http://www.sec.gov. The Funds Forms N-Q may also be reviewed |
and copied at the SECs Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Funds Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762. |
Electronic Delivery
Electronic copies of most financial reports are available on each Funds website, or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the respec- tive Funds electronic delivery program. |
Shareholders Who Hold Accounts with Investment Advisors, Banks or
Brokerages: Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service. |
General Information
The Funds 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 it is intended to reduce expenses and elimi- nate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Funds at (800) 441-7762. |
Quarterly performance, semi-annual and annual reports and other
information regarding the Funds may be found on BlackRocks website, which can be accessed at http://www.blackrock.com. This reference to BlackRocks website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRocks website into this report. |
30 SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
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 infor- mation 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 appli- cations, forms or other documents; (ii) information about your trans- actions 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 nonpublic 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 pro- cedures relating to the proper storage and disposal of such information. |
Proxy Voting Policy |
The Board of each Fund has delegated the voting of proxies for Fund
securities to the Advisor pursuant to the Advisors proxy voting guidelines. Under these guidelines, the Advisor will vote proxies related to Fund secu- rities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Funds stockholders, on the one hand, and those of the Advisor, or any affiliated person of the Fund or the Advisor, on the other. In such event, provided that the Advisors Equity Investment Policy Oversight Committee, or a sub- committee thereof (the Committee) is aware of the real or potential con- flict or material non-routine matter and if the Committee does not reason- |
ably believe it is able to follow its general voting guidelines (or if the par-
ticular proxy matter is not addressed in the guidelines) and vote impartial- ly, the Committee may retain an independent fiduciary to advise the Committee on how to vote or to cast votes on behalf of the Advisors clients. If the Advisor determines not to retain an independent fiduciary, or does not desire to follow the advice of such indpendenent fiduciary, the Committee shall determine how to vote the proxy after consulting with the Advisors Portfolio Management Group and/or the Advisors Legal and Compliance Department and concluding that the vote cast is in its clients best interest notwithstanding the conflict. |
SEMI-ANNUAL REPORT |
JUNE 30, 2008 |
31 |
This report is transmitted to shareholders only. This 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. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 441-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commissions website at http://www.sec.gov. Information about how the Funds voted proxies relating to securities held in the Funds portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and Exchange Commissions website at http://www.sec.gov. BlackRock Enhanced Equity Yield Fund, Inc. BlackRock Enhanced Equity Yield & Premium Fund, Inc. 100 Bellevue Parkway Wilmington, DE 19809 |
#EEYP-6/08 |
Item 2 Code of Ethics Not Applicable to this semi-annual report
Item 3 Audit Committee Financial Expert Not Applicable to this semi-annual report Item 4 Principal Accountant Fees and Services Not Applicable to this semi-annual report Item 5 Audit Committee of Listed Registrants Not Applicable to this semi-annual report Item 6 Investments (a) The registrants 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 Not Applicable to this semi-annual report Item 9 Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not Applicable Item 10 Submission of Matters to a Vote of Security Holders The registrants Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and set forth the qualifications of the proposed nominee to the registrants Secretary. There have been no material changes to these procedures. Item 11 Controls and Procedures 11(a) The registrants principal executive and principal financial officers or persons performing similar functions have concluded that the registrants 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. 11(b) There were no changes in the registrants 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 registrants internal control over financial reporting. Item 12 Exhibits attached hereto 12(a)(1) Code of Ethics Not Applicable to this semi-annual report 12(a)(2) Certifications Attached hereto 12(a)(3) Not Applicable 12(b) Certifications Attached hereto |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BlackRock Enhanced Equity Yield Fund, Inc. By: Donald C. Burke Donald C. Burke Chief Executive Officer of BlackRock Enhanced Equity Yield Fund, Inc. Date: August 22, 2008 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: Donald C. Burke Donald C. Burke Chief Executive Officer (principal executive officer) of BlackRock Enhanced Equity Yield Fund, Inc. Date: August 22, 2008 By: Neal J. Andrews Neal J. Andrews Chief Financial Officer (principal financial officer) of BlackRock Enhanced Equity Yield Fund, Inc. Date: August 22, 2008 |
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