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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Western Asset Inflation Management Fund | NYSE:IMF | NYSE | Ordinary Share |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 18.38 | 0.00 | 01:00:00 |
Fund Overview | Key facts and details about the Funds listed in this prospectus, including investment objectives, principal investment strategies, principal risk factors, fee and expense information, and historical performance information | |
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3 | |
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9 | |
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15 |
Account Information | Information about account services, sales charges & waivers, shareholder transactions, and distributions and other payments | |
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34 | |
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36 | |
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41 | |
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42 | |
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47 | |
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48 | |
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49 | |
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49 | |
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50 |
Management of the Funds | Information about BlackRock and the Portfolio Managers | |
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51 | |
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53 | |
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54 | |
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55 | |
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56 |
Financial Highlights |
Financial
Performance of the Funds
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58 |
Glossary |
Glossary
of Investment Terms
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73 |
For More Information |
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Inside Back Cover |
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Back Cover |
Shareholder
Fees
(fees paid directly from your investment) |
Investor
A
Shares |
Investor
B
Shares |
Investor
C
Shares |
Institutional
Shares |
Class
R
Shares |
|||||
Maximum
Sales Charge (Load) Imposed on Purchases
(as percentage of offering price) |
5.25% | None | None | None | None | |||||
Maximum Deferred Sales Charge (Load) (as percentage of offering price or redemption proceeds, whichever is lower) | None 1 | 4.50% 2 | 1.00% 3 | None | None | |||||
Annual
Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) 4 |
Investor
A
Shares |
Investor
B
Shares |
Investor
C
Shares |
Institutional
Shares |
Class
R
Shares |
|||||
Management Fee 4 | 0.73% | 0.73% | 0.73% | 0.73% | 0.73% | |||||
Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 1.00% | None | 0.50% | |||||
Other Expenses | 0.58% | 1.31% | 0.76% | 0.49% | 0.62% | |||||
Administration Fees | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% | |||||
Miscellaneous Other Expenses | 0.33% | 1.06% | 0.51% | 0.24% | 0.37% | |||||
Total Annual Fund Operating Expenses | 1.56% | 3.04% | 2.49% | 1.22% | 1.85% | |||||
Fee Waivers and/or Expense Reimbursements 5 | (0.18)% | (0.60)% | (0.07)% | (0.22)% | (0.15)% | |||||
Total
Annual Fund Operating Expenses After Fee Waivers
and/or Expense Reimbursements 5 |
1.38% | 2.44% | 2.42% | 1.00% | 1.70% |
1 | A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at time of purchase as part of an investment of $1,000,000 or more. |
2 | The CDSC is 4.50% if shares are redeemed in less than one year. The CDSC for Investor B Shares decreases for redemptions made in subsequent years. After six years there is no CDSC on Investor B Shares. (See the section “Details About the Share Classes — Investor B Shares” in the Fund’s prospectus for the complete schedule of CDSCs.) |
3 | There is no CDSC on Investor C Shares after one year. |
4 | The fees and expenses shown in the table and the example that follows include both the expenses of International Fund and International Fund’s share of the allocated expenses of BlackRock Master International Portfolio (“Master International Portfolio”). Management fees are paid by Master International Portfolio. |
5 | As described in the “Management of the Funds” section of the Fund’s prospectus on pages 51-57, BlackRock has contractually agreed to waive and/or reimburse fees and/or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) as a percentage of average daily net assets to 1.38% (for Investor A Shares), 2.44% (for Investor B Shares), 2.42% (for Investor C Shares), 1.00% (for Institutional Shares) and 1.70% (for Class R Shares) until March 1, 2015. The agreement may be terminated upon 90 days’ notice by a majority of the non-interested directors of the Corporation or by a vote of a majority of the outstanding voting securities of the Fund. |
1 Year | 3 Years | 5 Years | 10 Years | |
Investor A Shares | $658 | $ 975 | $1,314 | $2,270 |
Investor B Shares | $697 | $1,233 | $1,744 | $2,964 |
Investor C Shares | $345 | $ 769 | $1,319 | $2,821 |
Institutional Shares | $102 | $ 365 | $ 649 | $1,458 |
Class R Shares | $173 | $ 567 | $ 987 | $2,157 |
1 Year | 3 Years | 5 Years | 10 Years | |
Investor B Shares | $247 | $883 | $1,544 | $2,964 |
Investor C Shares | $245 | $769 | $1,319 | $2,821 |
■ | Derivatives Risk — The Fund’s use of derivatives may reduce the Fund’s returns and/or increase volatility. Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value accurately. Valuation may be more difficult in times of market turmoil since many investors and market makers may be reluctant to purchase complex instruments or quote prices for them. Derivatives also may expose the Fund to greater risk and increase its costs. Certain transactions in derivatives involve substantial leverage risk and may expose the Fund to potential losses that exceed the amount originally invested by the Fund. Recent legislation calls for new regulation of the derivatives markets. The extent and impact of the regulation is not yet known and may not be known for some time. New regulation may make derivatives more costly, may limit the availability of derivatives, or may otherwise adversely affect the value or performance of derivatives. |
■ | Emerging Markets Risk — Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging securities markets have far lower trading volumes and less liquidity than developed markets. |
■ | Equity Securities Risk — Stock markets are volatile. The price of an equity security fluctuates based on changes in a company’s financial condition and overall market and economic conditions. |
■ | Foreign Securities Risk — Foreign investments often involve special risks not present in U.S. investments that can increase the chances that the Fund will lose money. These risks include: |
■ | The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory oversight. |
■ | Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio. |
■ | The economies of certain foreign markets may not compare favorably with the economy of the United States with respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of payments position. |
■ | The governments of certain countries may prohibit or impose substantial restrictions on foreign investments in their capital markets or in certain industries. |
■ | Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to the same extent as does the United States and may not have laws to protect investors that are comparable to U.S. securities laws. |
■ | Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of securities not typically associated with settlement and clearance of U.S. investments. |
■ | The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe. These events may affect the value and liquidity of certain of the Fund’s investments. |
■ | Geographic Concentration Risk — From time to time, the Fund may invest a substantial amount of its assets in issuers located in a single country or a limited number of countries. If the Fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in those countries will have a significant impact on its investment performance. The Fund’s investment performance may also be more volatile if it concentrates its investments in certain countries, especially emerging market countries. |
■ | Leverage Risk — Some transactions may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet any required asset segregation requirements. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses leverage. |
■ | Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money. |
■ | Mid Cap Securities Risk — The securities of mid cap companies generally trade in lower volumes and are generally subject to greater and less predictable price changes than the securities of larger capitalization companies. |
As
of 12/31/13
Average Annual Total Returns |
1 Year 1 | 5 Years 1 | 10 Years 1 |
BlackRock International Fund — Investor A | |||
Return Before Taxes | 15.80% | 12.52% | 5.75% |
Return After Taxes on Distributions | 15.56% | 12.40% | 5.66% |
Return After Taxes on Distributions and Sale of Shares | 9.46% | 10.05% | 4.68% |
BlackRock International Fund — Investor B | |||
Return Before Taxes | 16.39% | 12.24% | 5.48% |
BlackRock International Fund — Investor C | |||
Return Before Taxes | 19.94% | 12.78% | 5.46% |
BlackRock International Fund — Institutional | |||
Return Before Taxes | 22.59% | 14.14% | 6.65% |
BlackRock International Fund — Class R | |||
Return Before Taxes | 21.73% | 13.47% | 6.07% |
MSCI
All Country World Index Ex-U.S.
(Reflects no deduction for fees, expenses or taxes) |
15.29% | 12.81% | 7.57% |
1 | For the fiscal year ended October 31, 2013, a portion of the Fund’s return for each share class consisted of a payment from an affiliate to compensate for foregone securities lending revenue. |
Name |
Portfolio
Manager
of the Fund Since |
Title |
James Bristow, CFA | 2007 | Managing Director of BlackRock, Inc. |
Gareth Williams, CFA | 2011 | Director of BlackRock, Inc. |
Investor
A and
Investor C Shares |
Investor B Shares | Institutional Shares | Class R Shares | |
Minimum
Initial
Investment |
$1,000
for all accounts except:
• $250 for certain fee-based programs. • $100 for certain employer-sponsored retirement plans. • $50, if establishing an Automatic Investment Plan. |
Available only through exchanges and dividend reinvestments by current holders and for purchase by certain employer-sponsored retirement plans. |
$2
million for institutions and individuals.
Institutional Shares are available to clients of registered investment advisers who have $250,000 invested in the Fund. |
$100 for all accounts. |
Minimum
Additional
Investment |
$50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | N/A | No subsequent minimum. | No subsequent minimum. |
Shareholder
Fees
(fees paid directly from your investment) |
Investor
A
Shares |
Investor
B
Shares |
Investor
C
Shares |
Institutional
Shares |
Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price) | 5.25% | None | None | None |
Maximum Deferred Sales Charge (Load) (as percentage of offering price or redemption proceeds, whichever is lower) | None 1 | 4.50% 2 | 1.00% 3 | None |
Annual
Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
Investor
A
Shares |
Investor
B
Shares |
Investor
C
Shares |
Institutional
Shares |
Management Fee | 1.00% | 1.00% | 1.00% | 1.00% |
Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 1.00% | None |
Other Expenses | 0.35% | 0.62% | 0.46% | 0.29% |
Total Annual Fund Operating Expenses | 1.60% | 2.62% | 2.46% | 1.29% |
1 | A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at time of purchase as part of an investment of $1,000,000 or more. |
2 | The CDSC is 4.50% if shares are redeemed in less than one year. The CDSC for Investor B Shares decreases for redemptions made in subsequent years. After six years there is no CDSC on Investor B Shares. (See the section “Details About the Share Classes — Investor B Shares” in the Fund’s prospectus for the complete schedule of CDSCs.) |
3 | There is no CDSC on Investor C Shares after one year. |
1 Year | 3 Years | 5 Years | 10 Years | |
Investor A Shares | $679 | $1,003 | $1,350 | $2,325 |
Investor B Shares | $715 | $1,164 | $1,590 | $2,706 |
Investor C Shares | $349 | $ 767 | $1,311 | $2,796 |
1 Year | 3 Years | 5 Years | 10 Years | |
Institutional Shares | $131 | $ 409 | $ 708 | $1,556 |
1 Year | 3 Years | 5 Years | 10 Years | |
Investor B Shares | $265 | $814 | $1,390 | $2,706 |
Investor C Shares | $249 | $767 | $1,311 | $2,796 |
■ | Convertible Securities Risk — The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market and issuer risks that apply to the underlying common stock. |
■ | Depositary Receipts Risk — The issuers of unsponsored depositary receipts are not obligated to disclose information that is, in the United States, considered material. Therefore, there may be less information available regarding these issuers and there may not be a correlation between such information and the market value of the depositary receipts. Depositary receipts are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted. |
■ | Derivatives Risk — The Fund’s use of derivatives may reduce the Fund’s returns and/or increase volatility. Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value accurately. Valuation may be more difficult in times of market turmoil since many investors and market makers may be reluctant to purchase complex instruments or quote prices for them. Derivatives also may expose the Fund to greater risk and increase its costs. Certain transactions in derivatives involve substantial leverage risk and may expose the Fund to potential losses that exceed the amount originally invested by the Fund. Recent legislation calls for new regulation of the derivatives markets. The extent and impact of the regulation is not yet known and may not be known for some time. New regulation may make derivatives more costly, may limit the availability of derivatives, or may otherwise adversely affect the value or performance of derivatives. |
Risks of Investing in Participation Notes — Investing in participation notes involves the same risks associated with a direct investment in the shares of the companies the notes seek to replicate. However, the performance results of participation notes will not replicate exactly the performance of the issuers or markets that the notes seek to replicate due to transaction costs and other expenses. In addition, participation notes are subject to counterparty risk. Participation notes may be considered illiquid. | |
■ | Emerging Markets Risk — Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging securities markets have far lower trading volumes and less liquidity than developed markets. |
■ | Equity Securities Risk — Stock markets are volatile. The price of an equity security fluctuates based on changes in a company’s financial condition and overall market and economic conditions. |
■ | Foreign Securities Risk — Foreign investments often involve special risks not present in U.S. investments that can increase the chances that the Fund will lose money. These risks include: |
■ | The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory oversight. |
■ | Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio. |
■ | The economies of certain foreign markets may not compare favorably with the economy of the United States with respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of payments position. |
■ | The governments of certain countries may prohibit or impose substantial restrictions on foreign investments in their capital markets or in certain industries. |
■ | Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to the same extent as does the United States and may not have laws to protect investors that are comparable to U.S. securities laws. |
■ | Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of securities not typically associated with settlement and clearance of U.S. investments. |
■ | The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe. These events may affect the value and liquidity of certain of the Fund’s investments. |
■ | Leverage Risk — Some transactions may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or |
to meet any required asset segregation requirements. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses leverage. | |
■ | Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money. |
■ | “New Issues” Risk — “New issues” are IPOs of equity securities. Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the initial public offering. |
■ | Non-Diversification Risk — The Fund is a non-diversified fund. Because the Fund may invest in securities of a smaller number of issuers, it may be more exposed to the risks associated with and developments affecting an individual issuer than a fund that invests more widely. |
■ | Small Cap and Emerging Growth Securities Risk — Small cap or emerging growth companies may have limited product lines or markets. They may be less financially secure than larger, more established companies. They may depend on a more limited management group than larger capitalized companies. |
As
of 12/31/13
Average Annual Total Returns |
1 Year 1 | 5 Years 1 | 10 Years 1 |
BlackRock Emerging Markets Fund, Inc. — Investor A | |||
Return Before Taxes | (7.61)% | 13.47% | 9.70% |
Return After Taxes on Distributions | (7.50)% | 13.30% | 8.37% |
Return After Taxes on Distributions and Sale of Shares | (4.10)% | 10.79% | 8.02% |
BlackRock Emerging Markets Fund, Inc. — Investor B | |||
Return Before Taxes | (7.84)% | 13.41% | 9.58% |
BlackRock Emerging Markets Fund, Inc. — Investor C | |||
Return Before Taxes | (4.29)% | 13.75% | 9.40% |
BlackRock Emerging Markets Fund, Inc. — Institutional | |||
Return Before Taxes | (2.19)% | 15.07% | 10.62% |
MSCI
Emerging Markets Index
(Reflects no deduction for fees, expenses or taxes) |
(2.60)% | 14.79% | 11.17% |
1 | For the fiscal year ended October 31, 2013, a portion of the Fund’s return for each share class consisted of a payment from an affiliate to compensate for foregone securities lending revenue. |
Name |
Portfolio
Manager
of the Fund Since |
Title |
Luiz Soares | 2012 | Managing Director of BlackRock, Inc. |
Dhiren Shah, CFA | 2009 | Director of BlackRock, Inc. |
Investor
A and
Investor C Shares |
Investor B Shares | Institutional Shares | |
Minimum Initial Investment |
$1,000
for all accounts except:
• $250 for certain fee-based programs. • $100 for certain employer-sponsored retirement plans. • $50, if establishing an Automatic Investment Plan. |
Available only through exchanges and dividend reinvestments by current holders and for purchase by certain employer-sponsored retirement plans. |
$2
million for institutions and individuals.
Institutional Shares are available to clients of registered investment advisers who have $250,000 invested in the Fund. |
Minimum
Additional
Investment |
$50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | N/A | No subsequent minimum. |
Shareholder
Fees
(fees paid directly from your investment) |
Investor
A
Shares |
Investor
B
Shares |
Investor
C
Shares |
Institutional
Shares |
Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price) | 5.25% | None | None | None |
Maximum Deferred Sales Charge (Load) (as percentage of offering price or redemption proceeds, whichever is lower) | None 1 | 4.50% 2 | 1.00% 3 | None |
Annual
Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
Investor
A
Shares |
Investor
B
Shares |
Investor
C
Shares |
Institutional
Shares |
Management Fee | 1.00% | 1.00% | 1.00% | 1.00% |
Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 1.00% | None |
Other Expenses | 0.28% | 0.44% | 0.35% | 0.27% |
Total Annual Fund Operating Expenses | 1.53% | 2.44% | 2.35% | 1.27% |
1 | A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at time of purchase as part of an investment of $1,000,000 or more. |
2 | The CDSC is 4.50% if shares are redeemed in less than one year. The CDSC for Investor B Shares decreases for redemptions made in subsequent years. After six years there is no CDSC on Investor B Shares. (See the section “Details About the Share Classes — Investor B Shares” in the Fund’s prospectus for the complete schedule of CDSCs.) |
3 | There is no CDSC on Investor C Shares after one year. |
1 Year | 3 Years | 5 Years | 10 Years | |
Investor A Shares | $672 | $ 983 | $1,315 | $2,253 |
Investor B Shares | $697 | $1,111 | $1,501 | $2,551 |
Investor C Shares | $338 | $ 733 | $1,255 | $2,686 |
Institutional Shares | $129 | $ 403 | $ 697 | $1,534 |
1 Year | 3 Years | 5 Years | 10 Years | |
Investor B Shares | $247 | $761 | $1,301 | $2,551 |
Investor C Shares | $238 | $733 | $1,255 | $2,686 |
■ | Depositary Receipts Risk — The issuers of unsponsored depositary receipts are not obligated to disclose information that is, in the United States, considered material. Therefore, there may be less information available regarding these issuers and there may not be a correlation between such information and the market value of the depositary receipts. Depositary receipts are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted. |
■ | Derivatives Risk — The Fund’s use of derivatives may reduce the Fund’s returns and/or increase volatility. Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value accurately. Valuation may be more difficult in times of market turmoil since many investors and market makers may be reluctant to purchase complex instruments or quote prices for them. Derivatives also may expose the Fund to greater risk and increase its costs. Certain transactions in derivatives involve substantial leverage risk and may expose the Fund to potential losses that exceed the amount originally invested by the Fund. Recent legislation calls for new regulation of the derivatives markets. The extent and impact of the regulation is not yet known and may not be known for some time. New regulation may make derivatives more costly, may limit the availability of derivatives, or may otherwise adversely affect the value or performance of derivatives. |
■ | Emerging Markets Risk — Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging securities markets have far lower trading volumes and less liquidity than developed markets. |
■ | Equity Securities Risk — Stock markets are volatile. The price of an equity security fluctuates based on changes in a company’s financial condition and overall market and economic conditions. |
■ | Foreign Securities Risk — Foreign investments often involve special risks not present in U.S. investments that can increase the chances that the Fund will lose money. These risks include: |
■ | The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory oversight. |
■ | Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio. |
■ | The economies of certain foreign markets may not compare favorably with the economy of the United States with respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of payments position. |
■ | The governments of certain countries may prohibit or impose substantial restrictions on foreign investments in their capital markets or in certain industries. |
■ | Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to the same extent as does the United States and may not have laws to protect investors that are comparable to U.S. securities laws. |
■ | Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of securities not typically associated with settlement and clearance of U.S. investments. |
■ | Geographic Concentration Risk — From time to time, the Fund may invest a substantial amount of its assets in issuers located in a single country or a limited number of countries. If the Fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in those countries will have a significant impact on its investment performance. For example, as of the Fund’s most recently ended fiscal year, the Fund was substantially invested in Brazil. See “Risks of Investing in Latin America – Risks of Investing in Brazil” below. The Fund’s investment performance may also be more volatile if it concentrates its investments in certain countries, especially emerging market countries. |
■ | Leverage Risk — Some transactions may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet any required asset segregation requirements. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses leverage. |
■ | Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money. |
■ | Mid Cap Securities Risk — The securities of mid cap companies generally trade in lower volumes and are generally subject to greater and less predictable price changes than the securities of larger capitalization companies. |
■ | “New Issues” Risk — “New issues” are IPOs of equity securities. Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the initial public offering. |
■ | Non-Diversification Risk — The Fund is a non-diversified fund. Because the Fund may invest in securities of a smaller number of issuers, it may be more exposed to the risks associated with and developments affecting an individual issuer than a fund that invests more widely. |
■ | Risks of Investing in Latin America — The economies of Latin American countries have in the past experienced considerable difficulties, including high inflation rates and high interest rates. The emergence of Latin American economies and securities markets will require continued economic and fiscal discipline that has been lacking at times in the past, as well as stable political and social conditions. International economic conditions, particularly those in the United States, as well as world prices for oil and other commodities may also influence the development of the Latin American economies. |
Risks of Investing in Brazil – Investments in Brazil are subject to special risks, including exposure to currency fluctuations, governmental restrictions on the outflow of profits to investors abroad, less liquidity, less developed or efficient trading markets, lack of comprehensive or publicly available company information, political instability and differing regulatory, accounting, auditing and financial standards. As an emerging market, the Brazilian market tends to be more volatile than the markets of more mature economies, and generally has a less diverse and less mature economic structure and a less stable political system than those of developed markets. Certain political, economic, legal and currency risks have contributed to a high level of price volatility in the Brazilian equity and currency markets and could adversely affect the Fund’s performance. The Brazilian government has exercised, and continues to exercise, significant influence over the Brazilian economy, which may have a significant effect on Brazilian companies and on market conditions and prices of Brazilian securities. | |
■ | Small Cap and Emerging Growth Securities Risk — Small cap or emerging growth companies may have limited product lines or markets. They may be less financially secure than larger, more established companies. They may depend on a more limited management group than larger capitalized companies. |
1 | For the fiscal year ended November 30, 2007, a portion of the Fund’s return for each share class consisted of a payment by the investment adviser in order to resolve a regulatory issue relating to an investment. |
Name |
Portfolio
Manager
of the Fund Since |
Title |
William Landers, CFA | 2002 | Managing Director of BlackRock, Inc. |
Investor
A and
Investor C Shares |
Investor B Shares | Institutional Shares | |
Minimum Initial Investment |
$1,000
for all accounts except:
• $250 for certain fee-based programs. • $100 for certain employer-sponsored retirement plans. • $50, if establishing an Automatic Investment Plan. |
Available only through exchanges and dividend reinvestments by current holders and for purchase by certain employer-sponsored retirement plans. |
$2
million for institutions and individuals.
Institutional Shares are available to clients of registered investment advisers who have $250,000 invested in the Fund. |
Minimum
Additional
Investment |
$50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). | N/A | No subsequent minimum. |
■ | financial resources; |
■ | value of assets; |
■ | sales and earnings growth; |
■ | product development; |
■ | quality of management; and |
■ | overall business prospects. |
■ | Understanding and tracking the key drivers of growth; |
■ | Evaluating the rate of acceleration and the visibility of each driver; |
■ | Assessing the quality of governance in terms of management, balance sheet and cash flow; and |
■ | Appraising the valuation in absolute terms and relative to history and to peers. |
■ | common stock; |
■ | preferred stock; |
■ | securities convertible into common stock; |
■ | derivative securities or instruments such as options (including warrants) and futures, the value of which is based on a common stock or group of common stocks; and |
■ | depositary receipts. |
■ | Borrowing — Each Fund may borrow for temporary or emergency purposes or to settle securities transactions. |
■ | Convertible Securities (International Fund and Latin America Fund) — The Funds may invest in convertible securities. Convertible securities generally are debt securities or preferred stock that may be converted into common stock. Convertible securities typically pay current income as either interest (debt security convertibles) or dividends (preferred stock). A convertible security’s value usually reflects both the stream of current income payments and the market value of the underlying common stock. |
■ | Debt Securities — Debt securities include fixed-income securities issued by companies, as well as U.S. and foreign sovereign debt obligations. When choosing debt securities, Fund management considers various factors including the credit quality of issuers and yield analysis. Each Fund may invest in debt securities that are rated below investment grade, which are commonly known as junk bonds. Emerging Markets Fund may also invest up to 20% of its assets in non-convertible debt securities. Non-convertible debt securities will generally be longer-term securities with the potential for capital appreciation through changes in interest rates, exchange rates or the general perception of the creditworthiness of issuers in certain countries. Emerging Markets Fund may invest a greater percentage of its assets in nonconvertible fixed income securities on occasion as a temporary defensive measure. |
■ | Depositary Receipts (International Fund) — The Fund may invest in securities of foreign issuers in the form of depositary receipts or other securities that are convertible into securities of foreign issuers. American Depositary Receipts are receipts typically issued by an American bank or trust company that evidence underlying securities issued by a foreign corporation. European Depositary Receipts (issued in Europe) and Global Depositary Receipts (issued throughout the world) each evidence a similar ownership arrangement. The Fund may invest in unsponsored depositary receipts. |
■ | Foreign Exchange Transactions — Each Fund may engage in foreign exchange transactions to seek to hedge against the risk of loss from changes in currency exchange rates, but Fund management cannot guarantee that it will be able to enter into such transactions or that such transactions will be effective. |
■ | Illiquid/Restricted Securities — Each Fund may invest up to 15% of its net assets in illiquid securities that it cannot sell within seven days at approximately current value. Each Fund may also invest in restricted securities, which are securities that cannot be offered for public resale unless registered under the applicable securities laws or that have a contractual restriction that prohibits or limits their resale (i.e., Rule 144A securities). They may include private placement securities that have not been registered under the applicable securities laws. Restricted securities may not be listed on an exchange and may have no active trading market and therefore may be considered to be illiquid. Rule 144A securities are restricted securities that can be resold to qualified institutional buyers but not to the general public and may be considered liquid securities. |
■ | Indexed and Inverse Securities — Each Fund may invest in securities that provide a return based on fluctuations in a stock or other financial index. For example, each Fund may invest in a security that increases in value with the price of a particular securities index. In some cases, the return of the security may be inversely related to the price of the index. This means that the value of the security will rise as the price of the index falls and vice versa. Although these types of securities can make it easier for the Fund to access certain markets or hedge risks of other assets held by the Fund, these securities are subject to the risks related to the underlying index or other assets. |
■ | Investment Companies and Venture Capital Funds — Each Fund has the ability to invest in other investment companies, such as exchange-traded funds, unit investment trusts, and open-end and closed-end funds. A Fund may invest in affiliated investment companies, including affiliated money market funds and affiliated exchange-traded funds. Emerging Markets Fund and Latin America Fund may each invest in venture capital funds. |
■ | “ New Issues” (International Fund) — From time to time, the Fund may invest in shares of companies through initial public offerings (“IPOs”). |
■ | Repurchase Agreements and Purchase and Sale Contracts — Each Fund may enter into certain types of repurchase agreements or purchase and sale contracts. Under a repurchase agreement, the seller agrees to repurchase a security at a mutually agreed-upon time and price. A purchase and sale contract is similar to a repurchase agreement, but purchase and sale contracts also provide that the purchaser receives any interest on the security paid during the period. |
■ | Securities Lending — Each Fund may lend securities with a value up to 33 1 ∕ 3 % of its total assets to financial institutions that provide cash or securities issued or guaranteed by the U.S. Government as collateral. |
■ | Short Sales (Emerging Markets Fund and Latin America Fund) — Each Fund may engage in short sales, which are transactions in which the Fund sells securities borrowed from others with the expectation that the price of the security will fall before the Fund must purchase the security to return it to the lender. Each Fund may make short sales of securities, either as a hedge against potential declines in value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value. Each Fund will not make a short sale if, after giving effect to such sale, the market value of all securities sold short exceeds 20% of the value of its total assets. However, the Funds may make short sales “against the box” without being subject to this limitation. In this type of short sale, at the time of the sale, the Fund owns or has the immediate and unconditional right to acquire the identical securities at no additional cost. |
■ | Short-Term Securities or Instruments (Emerging Markets Fund) — The Fund can invest in high quality short-term U.S. dollar or non-U.S. dollar denominated fixed-income securities or other instruments, such as U.S. or foreign government securities, commercial paper and money market instruments issued by U.S. or foreign commercial banks or depository institutions. Fund management may increase the Fund’s investment in these instruments in times of market volatility or when it believes that it is prudent or timely to be invested in lower yielding but less risky securities. Large investments in such securities or instruments may prevent the Fund from achieving its investment objective. |
■ | Standby Commitment Agreements — Standby commitment agreements commit the Fund, for a stated period of time, to purchase a stated amount of securities that may be issued and sold to the Fund at the option of the issuer. |
■ | Temporary Defensive Strategies — Each Fund may invest in short-term instruments, such as money market securities denominated in U.S. dollars or foreign currencies and repurchase agreements, for temporary emergency |
purposes, including to meet redemptions. A Fund may also invest, without limit, in short-term investments, including money market funds, purchase high quality bonds or buy or sell derivatives to reduce exposure to equity markets when the Fund believes it is advisable to do so on a temporary defensive basis. Normally a portion of a Fund’s assets would be held in these short-term instruments in anticipation of making investments in accordance with its investment objectives and strategies or to meet redemptions or when Fund management is unable to find attractive investments. Short-term investments and temporary defensive positions may limit the potential for growth in the value of your shares and may, therefore, limit a Fund’s ability to achieve its investment objective. | |
■ | Warrants — A warrant gives a Fund the right to buy stock. The warrant specifies the amount of underlying stock, the purchase (or “exercise”) price and the date the warrant expires. A Fund has no obligation to exercise the warrant and buy the stock. A warrant has value only if a Fund is able to exercise it or sell it before it expires. |
■ | When-Issued and Delayed Delivery Securities and Forward Commitments — The purchase or sale of securities on a when-issued basis, on a delayed delivery basis or through a forward commitment involves the purchase or sale of securities by a Fund at an established price with payment and delivery taking place in the future. A Fund enters into these transactions to obtain what is considered an advantageous price to a Fund at the time of entering into the transaction. |
■ | Convertible Securities Risk (Emerging Markets Fund Principal Risk; International Fund and Latin America Fund Other Risk) — The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market and issuer risks that apply to the underlying common stock. |
■ | Depositary Receipts Risk (Emerging Markets Fund and Latin America Fund Principal Risk; International Fund Other Risk) — The issuers of unsponsored depositary receipts are not obligated to disclose information that is, in the United States, considered material. Therefore, there may be less information available regarding these issuers and there may not be a correlation between such information and the market value of the depositary receipts. Depositary receipts are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted. |
■ | Derivatives Risk — Derivatives are volatile and involve significant risks, including: |
Volatility Risk — The Fund’s use of derivatives may reduce the Fund’s returns and/or increase volatility. Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. | |
Counterparty Risk — Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. | |
Market and Liquidity Risk — Some derivatives are more sensitive to interest rate changes and market price fluctuations than other securities. The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value accurately. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s derivatives positions to lose value. | |
Valuation Risk — Valuation may be more difficult in times of market turmoil since many investors and market makers may be reluctant to purchase complex instruments or quote prices for them. Derivatives may also expose |
the Fund to greater risk and increase its costs. Certain transactions in derivatives involve substantial leverage risk and may expose the Fund to potential losses that exceed the amount originally invested by the Fund. | |
Hedging Risk — When a derivative is used as a hedge against a position that the Fund holds, any loss generated by the derivative generally should be substantially offset by gains on the hedged investment, and vice versa. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. Hedges are sometimes subject to imperfect matching between the derivative and the underlying security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging may result in certain adverse tax consequences noted below. | |
Tax Risk — The federal income tax treatment of a derivative may not be as favorable as a direct investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary income rather than capital gains. In addition, certain derivatives are subject to mark-to-market or straddle provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). If such provisions are applicable, there could be an increase (or decrease) in the amount of taxable dividends paid by the Fund. In addition, the tax treatment of certain derivatives, such as swaps, is unsettled and may be subject to future legislation, regulation or administrative pronouncements issued by the Internal Revenue Service (“IRS”). | |
Regulatory Risk — Recent legislation calls for new regulation of the derivatives markets. The extent and impact of the regulation is not yet known and may not be known for some time. In particular, the Dodd-Frank Wall Street Reform Act (the “Reform Act”) may make derivatives more costly, may limit the availability of derivatives, or may otherwise adversely affect the value or performance of derivatives. The Reform Act substantially increases regulation of the over-the-counter (“OTC”) derivatives market and participants in that market, including imposing clearing and reporting requirements on transactions involving instruments that fall within the Reform Act’s definition of “swap” and “security-based swap,” which terms generally include OTC derivatives and imposing registration and potential substantive requirements on certain swap and security-based swap market participants. In addition, under the Reform Act, the Fund may be subject to additional recordkeeping and reporting requirements. | |
Risks Specific to Certain Derivatives Used by the Fund | |
Swaps — Swap agreements are two-party contracts entered into for periods ranging from a few weeks to more than one year. In a standard “swap” transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments, which can be adjusted for an interest factor. Swap agreements involve the risk that the party with whom the Fund has entered into the swap will default on its obligation to pay the Fund and the risk that the Fund will not be able to meet its obligations to pay the other party to the agreement. | |
Forward Foreign Currency Exchange Contracts — Forward foreign exchange transactions are OTC contracts to purchase or sell a specified amount of a specified currency or multinational currency unit at a price and future date set at the time of the contract. Forward foreign currency exchange contracts do not eliminate fluctuations in the value of non-U.S. securities but rather allow the Fund to establish a fixed rate of exchange for a future point in time. This strategy can have the effect of reducing returns and minimizing opportunities for gain. | |
Indexed and Inverse Securities – Indexed and inverse securities provide a potential return based on a particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index levels move in a way Fund management does not anticipate. | |
Futures — Futures are standardized, exchange-traded contracts that obligate a purchaser to take delivery, and a seller to make delivery, of a specific amount of an asset at a specified future date at a specified price. The primary risks associated with the use of futures contracts and options are (a) the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract or option; (b) possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the investment advisor’s inability to predict correctly the direction of securities prices, interest rates, currency exchange rates and other economic factors; and (e) the possibility that the counterparty will default in the performance of its obligations. | |
Options — An option is an agreement that, for a premium payment or fee, gives the option holder (the purchaser) the right but not the obligation to buy (a “call option”) or sell (a “put option”) the underlying asset (or settle for cash an amount based on an underlying asset, rate, or index) at a specified price (the “exercise price”) during a period of time or on a specified date. Investments in options are considered speculative. When the Fund purchases an |
option, it may lose the premium paid for it if the price of the underlying security or other assets decreased or remained the same (in the case of a call option) or increased or remained the same (in the case of a put option). If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. To the extent that the Fund writes or sells an option, if the decline or increase in the underlying asset is significantly below or above the exercise price of the written option, the Fund could experience a substantial loss. | |
Risks of Investing in Participation Notes (Emerging Markets Fund) — Investing in participation notes involves the same risks associated with a direct investment in the shares of the companies the notes seek to replicate. However, the performance results of participation notes will not replicate exactly the performance of the issuers or markets that the notes seek to replicate due to transaction costs and other expenses. | |
Investment in a participation note is not the same as investment in the constituent shares of the company and is subject to counterparty risk. A participation note represents only an obligation of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying security. In other words, shares of the underlying security are not in any way owned by the Fund. However each participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because a participation note is an obligation of the issuer, rather than direct investment shares of the underlying security, the Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its obligations. | |
Participation notes may be considered illiquid. The price, performance and liquidity of the participation note are all linked directly to the underlying security. The Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local trading market for the security underlying the participation note. | |
■ | Emerging Markets Risk — The risks of foreign investments are usually much greater for emerging markets. Investments in emerging markets may be considered speculative. Emerging markets include those in countries defined as emerging or developing by the World Bank, the International Finance Corporation or the United Nations. Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. They are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging markets have far lower trading volumes and less liquidity than developed markets. Since these markets are often small, they may be more likely to suffer sharp and frequent price changes or long-term price depression because of adverse publicity, investor perceptions or the actions of a few large investors. In addition, traditional measures of investment value used in the United States, such as price to earnings ratios, may not apply to certain small markets. Also, there may be less publicly available information about issuers in emerging markets than would be available about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and financial reporting standards and requirements comparable to those to which U.S. companies are subject. |
Many emerging markets have histories of political instability and abrupt changes in policies. As a result, their governments are more likely to take actions that are hostile or detrimental to private enterprise or foreign investment than those of more developed countries, including expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments. In the past, governments of such nations have expropriated substantial amounts of private property, and most claims of the property owners have never been fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a Fund could lose the entire value of its investments in the affected market. Some countries have pervasiveness of corruption and crime that may hinder investments. Certain emerging markets may also face other significant internal or external risks, including the risk of war, and ethnic, religious and racial conflicts. In addition, governments in many emerging market countries participate to a significant degree in their economies and securities markets, which may impair investment and economic growth. National policies that may limit a Fund’s investment opportunities include restrictions on investment in issuers or industries deemed sensitive to national interests. | |
Emerging markets may also have differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments. Sometimes, they may lack or be in the relatively early development of legal structures governing private and foreign investments and private property. Many emerging markets do not have income tax treaties with the United States, and as a result, investments by the Fund may be subject to higher withholding taxes in such countries. In addition, some countries with emerging markets may impose differential capital gains taxes on foreign investors. | |
Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those in developed markets, in part because the Fund will need to use brokers and counterparties that are less well |
capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud, negligence, undue influence being exerted by the issuer or refusal to recognize that ownership exists in some emerging markets, and, along with other factors, could result in ownership registration being completely lost. The Fund would absorb any loss resulting from such registration problems and may have no successful claim for compensation. In addition, communications between the United States and emerging market countries may be unreliable, increasing the risk of delayed settlements or losses of security certificates. | |
■ | Equity Securities Risk — Common and preferred stocks represent equity ownership in a company. Stock markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio investing in equities. The value of equity securities purchased by the Fund could decline if the financial condition of the companies the Fund invests in declines or if overall market and economic conditions deteriorate. The value of equity securities may also decline due to factors that affect a particular industry or industries, such as labor shortages or an increase in production costs and competitive conditions within an industry. In addition, the value may decline due to general market conditions that are not specifically related to a company or industry, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or generally adverse investor sentiment. |
■ | Foreign Securities Risk — Securities traded in foreign markets have often (though not always) performed differently from securities traded in the United States. However, such investments often involve special risks not present in U.S. investments that can increase the chances that the Fund will lose money. In particular, the Fund is subject to the risk that because there may be fewer investors on foreign exchanges and a smaller number of securities traded each day, it may be more difficult for the Fund to buy and sell securities on those exchanges. In addition, prices of foreign securities may go up and down more than prices of securities traded in the United States. |
■ | Geographic Concentration Risk (International Fund and Latin America Fund) — From time to time, the Fund may invest a substantial amount of its assets in issuers located in a single country or a limited number of countries. If the Fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in those countries will have a significant impact on its investment performance. For example, as of Latin America Fund’s most recently ended fiscal year, Latin America Fund was substantially invested in Brazil. See “Risks of Investing in Latin America – Risks of Investing in Brazil” below. The Fund’s investment performance may also be more volatile if it concentrates its investments in certain countries, especially emerging market countries. |
■ | Leverage Risk — Some transactions may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its costs. As an open-end investment company registered with the Securities and Exchange Commission (the “SEC”), the Fund is subject to the federal securities laws, including the Investment Company Act of 1940, as amended (the “Investment Company Act”), the rules thereunder, and various SEC and SEC staff interpretive positions. In accordance with these laws, rules and positions, the Fund must “set aside” liquid assets (often referred to as “asset segregation”), or engage in other SEC- or staff-approved measures, to “cover” open positions with respect to certain kinds of instruments. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet any required asset segregation requirements. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses leverage. |
■ | Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money. |
■ | Mid Cap Securities Risk (International Fund and Latin America Fund) — The securities of mid cap companies generally trade in lower volumes and are generally subject to greater and less predictable price changes than the securities of larger capitalization companies. |
■ | “New Issues” Risk (Emerging Markets Fund and Latin America Fund Principal Risk; International Fund Other Risk) — “New issues” are IPOs of equity securities. Investments in companies that have recently gone public have the potential to produce substantial gains for the Fund. However, there is no assurance that the Fund will have access to profitable IPOs and therefore investors should not rely on these past gains as an indication of future performances. The investment performance of the Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when the Fund is able to do so. In addition, as the Fund increases in size, the impact of IPOs on the Fund’s performance will generally decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the initial public offering. When an initial public offering is brought to the market, availability may be limited and the Fund may not be able to buy any shares at the offering price, or, if it is able to buy shares, it may not be able to buy as many shares at the offering price as it would like. |
■ | Non-Diversification Risk (Emerging Markets Fund and Latin America Fund) — Each Fund is a non-diversified fund. Because the Fund may invest in securities of a smaller number of issuers, it may be more exposed to the risks associated with and developments affecting an individual issuer than a fund that invests more widely. |
■ | Risks of Investing in Latin America (Latin America Fund) — The economies of Latin American countries have in the past experienced considerable difficulties, including high inflation rates and high interest rates. The emergence of Latin American economies and securities markets will require continued economic and fiscal discipline that has been lacking at times in the past, as well as stable political and social conditions. International economic conditions, particularly those in the United States, as well as world prices for oil and other commodities may also influence the development of the Latin American economies. |
Some Latin American currencies have experienced steady devaluations relative to the U.S. dollar and certain Latin American countries have had to make major adjustments in their currencies from time to time. In addition, governments of many Latin American countries have exercised and continue to exercise substantial influence over many aspects of the private sector. Governmental actions in the future could have a significant effect on economic conditions in Latin American countries, which could affect the companies in which the Fund invests and, therefore, the value of Fund shares. As noted, in the past, many Latin American countries have experienced substantial, and in some periods extremely high, rates of inflation for many years. For companies that keep accounting records in the local currency, inflation accounting rules in some Latin American countries require, for both tax and accounting purposes, that certain assets and liabilities be restated on the company’s balance sheet in order to express items in terms of currency of constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain Latin American companies. Inflation and rapid fluctuations in inflation rates have had, and could, in the future, have very negative effects on the economies and securities markets of certain Latin American countries. | |
Substantial limitations may exist in certain countries with respect to the Fund’s ability to repatriate investment income, capital or the proceeds of sales of securities. The Fund could be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the application to the Fund of any restrictions on investments. The Fund will not invest more than 15% of its net assets in securities that are subject to material legal restrictions on repatriation. | |
Certain Latin American countries have entered into regional trade agreements that are designed to, among other things, reduce barriers between countries, increase competition among companies and reduce government subsidies in certain industries. No assurance can be given that these changes will be successful in the long term, or that these changes will result in the economic stability intended. There is a possibility that these trade arrangements will not be fully implemented, or will be partially or completely unwound. It is also possible that a significant participant could choose to abandon a trade agreement, which could diminish its credibility and influence. Any of these occurrences could have adverse effects on the markets of both participating and non-participating countries, including sharp appreciation or depreciation of participants’ national currencies and a significant increase in exchange rate volatility, a resurgence in economic protectionism, an undermining of confidence in the Latin American markets, an undermining of Latin American economic stability, the collapse or slowdown of the drive towards Latin American economic unity, and/ or reversion of the attempts to lower government debt and inflation rates that were introduced in anticipation of such trade agreements. Such developments could have an adverse impact on the Fund’s investments in Latin America generally or in specific countries participating in such trade agreements. | |
Other Latin American market risks include foreign exchange controls, difficulties in pricing securities, defaults on sovereign debt, difficulties in enforcing favorable legal judgments in local courts and political and social instability. Legal remedies available to investors in certain Latin American countries may be less extensive than those available to investors in the United States or other foreign countries. |
Risks of Investing in Brazil (Latin America Fund) – Investments in Brazil are subject to special risks, including exposure to currency fluctuations, governmental restrictions on the outflow of profits to investors abroad, less liquidity, less developed or efficient trading markets, lack of comprehensive or publicly available company information, political instability and differing regulatory, accounting, auditing and financial standards. As an emerging market, the Brazilian market tends to be more volatile than the markets of more mature economies, and generally has a less diverse and less mature economic structure and a less stable political system than those of developed markets. Certain political, economic, legal and currency risks have contributed to a high level of price volatility in the Brazilian equity and currency markets and could adversely affect the Fund’s performance. The Brazilian government has exercised, and continues to exercise, significant influence over the Brazilian economy, which may have a significant effect on Brazilian companies and on market conditions and prices of Brazilian securities. | |
■ | Small Cap and Emerging Growth Securities Risk (Emerging Markets Fund and Latin America Fund Principal Risk; International Fund Other Risk) — Small cap or emerging growth companies may have limited product lines or markets. They may be less financially secure than larger, more established companies. They may depend on a small number of key personnel. If a product fails or there are other adverse developments, or if management changes, the Fund’s investment in a small cap or emerging growth company may lose substantial value. In addition, it is more difficult to get information on smaller companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by large investors and are followed by relatively few securities analysts. |
The securities of small cap or emerging growth companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than larger cap securities or the market as a whole. In addition, small cap and emerging growth securities may be particularly sensitive to changes in interest rates, borrowing costs and earnings. Investing in small cap or emerging growth securities requires a longer term view. |
■ | Borrowing Risk — Borrowing may exaggerate changes in the net asset value of Fund shares and in the return on the Fund’s portfolio. Borrowing will cost the Fund interest expense and other fees. The costs of borrowing may reduce the Fund’s return. Borrowing may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations. |
■ | Debt Securities Risk — Debt securities, such as bonds, involve credit risk. Credit risk is the risk that the borrower will not make timely payments of principal and interest. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s financial condition and on the terms of the securities. Debt securities are also subject to interest rate risk. Interest rate risk is the risk that the value of a debt security may fall when interest rates rise. In general, the market price of debt securities with longer maturities will go up or down more in response to changes in interest rates than the market price of shorter term securities. The Fund may be subject to greater risk of rising interest rates due to the current period of historically low rates. |
■ | Expense Risk — Fund expenses are subject to a variety of factors, including fluctuations in the Fund’s net assets. Accordingly, actual expenses may be greater or less than those indicated. For example, to the extent that the Fund’s net assets decrease due to market declines or redemptions, the Fund’s expenses will increase as a percentage of Fund net assets. During periods of high market volatility, these increases in the Fund’s expense ratio could be significant. |
■ | High Portfolio Turnover Risk (International Fund and Emerging Markets Fund) — The Fund may engage in active and frequent trading of its portfolio securities. High portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects of higher than normal portfolio turnover may adversely affect Fund performance. |
■ | Investment in Other Investment Companies Risk — As with other investments, investments in other investment companies are subject to market and selection risk. In addition, if the Fund acquires shares of investment companies, including ones affiliated with the Fund, shareholders bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of the investment companies. To the extent the Fund is held by an affiliated fund, the ability of the Fund itself to hold other investment companies may be limited. |
■ | Junk Bonds Risk — Although junk bonds generally pay higher rates of interest than investment grade bonds, junk bonds are high risk investments that may cause income and principal losses for the Fund. The major risks of junk bond investments include: |
■ | Junk bonds may be issued by less creditworthy issuers. Issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of investment grade bonds. In the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of junk bond holders, leaving few or no assets available to repay junk bond holders. |
■ | Prices of junk bonds are subject to extreme price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater impact on the prices of junk bonds than on other higher rated fixed-income securities. |
■ | Issuers of junk bonds may be unable to meet their interest or principal payment obligations because of an economic downturn, specific issuer developments, or the unavailability of additional financing. |
■ | Junk bonds frequently have redemption features that permit an issuer to repurchase the security from the Fund before it matures. If the issuer redeems junk bonds, the Fund may have to invest the proceeds in bonds with lower yields and may lose income. |
■ | Junk bonds may be less liquid than higher rated fixed-income securities, even under normal economic conditions. There are fewer dealers in the junk bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers. Because they are less liquid, judgment may play a greater role in valuing certain of the Fund’s securities than is the case with securities trading in a more liquid market. |
■ | The Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer. |
■ | Liquidity Risk — Liquidity risk exists when particular investments are difficult to purchase or sell. The Fund’s investment in illiquid securities may reduce the returns of the Fund because it may be difficult to sell the illiquid securities at an advantageous time or price. To the extent that the Fund’s principal investment strategies involve derivatives or securities with substantial market and/or credit risk, the Fund will tend to have the greatest exposure to liquidity risk. Liquid investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. Illiquid investments may be harder to value, especially in changing markets, and if the Fund is forced to sell these investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the Fund, due to limitations on illiquid investments, may be subject to purchase and sale restrictions. |
■ | Repurchase Agreements and Purchase and Sale Contracts Risks — If the other party to a repurchase agreement or purchase and sale contract defaults on its obligation under the agreement, the Fund may suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security in either situation and the market value of the security declines, the Fund may lose money. |
■ | Securities Lending Risk — Securities lending involves the risk that the borrower may fail to return the securities in a timely manner or at all. As a result, the Fund may lose money and there may be a delay in recovering the loaned securities. The Fund could also lose money if it does not recover the securities and/or the value of the collateral falls, including the value of investments made with cash collateral. These events could trigger adverse tax consequences for the Fund. |
■ | Short Sales Risk (Emerging Markets Fund and Latin America Fund) — Because making short sales in securities that it does not own exposes the Fund to the risks associated with those securities, such short sales involve speculative exposure risk. The Fund will incur a loss as a result of a short sale if the price of the security increases between the date of the short sale and the date on which the Fund replaces the security sold short. The Fund will realize a gain if the security declines in price between those dates. As a result, if the Fund makes short sales in securities that increase in value, it will likely underperform similar funds that do not make short sales in securities they do not own. There can be no assurance that the Fund will be able to close out a short sale position at any particular time or at an acceptable price. Although the Fund’s gain is limited to the amount at which it sold a security short, its potential loss is limited only by the maximum attainable price of the security, less the price at which the security was sold. The Fund may also pay transaction costs and borrowing fees in connection with short sales. |
■ | Sovereign Debt Risk — Sovereign debt instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in |
relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. If a governmental entity defaults, it may ask for more time in which to pay or for further loans. There is no legal process for collecting sovereign debt that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected. | |
■ | Standby Commitment Agreements Risk — Standby commitment agreements involve the risk that the security the Fund buys will lose value prior to its delivery to the Fund and will no longer be worth what the Fund has agreed to pay for it. These agreements also involve the risk that if the security goes up in value, the counterparty will decide not to issue the security. In this case, the Fund loses both the investment opportunity for the assets it set aside to pay for the security and any gain in the security’s price. |
■ | Warrants Risk — If the price of the underlying stock does not rise above the exercise price before the warrant expires, the warrant generally expires without any value and the Fund will lose any amount it paid for the warrant. Thus, investments in warrants may involve substantially more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock. |
■ | When-Issued and Delayed Delivery Securities and Forward Commitments Risk — When-issued and delayed delivery securities and forward commitments involve the risk that the security the Fund buys will lose value prior to its delivery. There also is the risk that the security will not be issued or that the other party to the transaction will not meet its obligation. If this occurs, the Fund may lose both the investment opportunity for the assets it set aside to pay for the security and any gain in the security’s price. |
Investor A | Investor B | Investor C 2,3 | Institutional | Class R 4 | |
Availability | Generally available through Financial Intermediaries. | Available only through exchanges and dividend reinvestments by current holders and for purchase by certain employer-sponsored retirement plans. | Generally available through Financial Intermediaries. |
Limited
to certain investors, including:
• Current Institutional shareholders that meet certain requirements. • Certain employer-sponsored retirement plans. • Participants in certain programs sponsored by BlackRock or its affiliates or other Financial Intermediaries. • Certain employees of BlackRock or its affiliates. |
Available only to certain employer-sponsored retirement plans. |
Minimum Investment |
$1,000
for all accounts except:
• $250 for certain fee-based programs. • $100 for certain employer-sponsored retirement plans. • $50, if establishing an Automatic Investment Plan (“AIP”). |
Investor B Shares are not generally available for purchase (see above). |
$1,000
for all accounts except:
• $250 for certain fee-based programs. • $100 for certain employer-sponsored retirement plans. • $50, if establishing an AIP. |
•
$2 million for institutions and individuals.
• Institutional Shares are available to clients of registered investment advisers who have $250,000 invested in the Fund. |
• $100 for all accounts. |
Initial Sales Charge? | Yes. Payable at time of purchase. Lower sales charges are available for larger investments. | No. Entire purchase price is invested in shares of the Fund. | No. Entire purchase price is invested in shares of the Fund. | No. Entire purchase price is invested in shares of the Fund. | No. Entire purchase price is invested in shares of the Fund. |
Deferred Sales Charge? | No. (May be charged for purchases of $1 million or more that are redeemed within 18 months.) | Yes. Payable if you redeem within six years of purchase. | Yes. Payable if you redeem within one year of purchase. | No. | No. |
Distribution and Service (12b-1) Fees? |
No
Distribution Fee.
0.25% Annual Service Fee. |
0.75%
Annual Distribution Fee.
0.25% Annual Service Fee. |
0.75%
Annual Distribution Fee.
0.25% Annual Service Fee. |
No. |
0.25%
Annual Distribution Fee.
0.25% Annual Service Fee. |
Redemption Fees? | No. | No. | No. | No. | No. |
Conversion to Investor A Shares? | N/A | Yes, automatically after approximately eight years. | No. | No. | No. |
1 | Please see “Details About the Share Classes” for more information about each share class. |
2 | If you establish a new account directly with a Fund and do not have a Financial Intermediary associated with your account, you may only invest in Investor A Shares. Applications without a Financial Intermediary that select Investor C Shares will not be accepted. |
3 | A Fund will not accept a purchase order of $500,000 or more for Investor C Shares. Your Financial Intermediary may set a lower maximum for Investor C Shares. |
Your Investment |
Sales
Charge
as a % of Offering Price |
Sales
Charge
as a % of Your Investment 1 |
Dealer
Compensation as a % of Offering Price |
Less than $25,000 | 5.25% | 5.54% | 5.00% |
$25,000 but less than $50,000 | 4.75% | 4.99% | 4.50% |
$50,000 but less than $100,000 | 4.00% | 4.17% | 3.75% |
$100,000 but less than $250,000 | 3.00% | 3.09% | 2.75% |
$250,000 but less than $500,000 | 2.50% | 2.56% | 2.25% |
$500,000 but less than $750,000 | 2.00% | 2.04% | 1.75% |
$750,000 but less than $1,000,000 | 1.50% | 1.52% | 1.25% |
$1,000,000 and over 2 | 0.00% | 0.00% | — 2 |
1 | Rounded to the nearest one-hundredth percent. |
2 | If you invest $1,000,000 or more in Investor A Shares, you will not pay an initial sales charge. In that case, BlackRock compensates the Financial Intermediary from its own resources. However, if you redeem your shares within 18 months after purchase, you may be charged a deferred sales charge of 1.00% of the lesser of the original cost of the shares being redeemed or your redemption proceeds. Such deferred sales charge may be waived in connection with certain fee-based programs. |
■ | Certain employer-sponsored retirement plans. For purposes of this waiver, employer-sponsored retirement plans do not include SEP IRAs, SIMPLE IRAs or SARSEPs; |
■ | Rollovers of current investments through certain employer-sponsored retirement plans, provided the shares are transferred to the same BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs that are sponsored by Financial Intermediary firms provided the Financial Intermediary firm has entered into a Class A Net Asset Value agreement with respect to such program with the Distributor; |
■ | Insurance company separate accounts; |
■ | Registered investment advisers, trust companies and bank trust departments exercising discretionary investment authority with respect to amounts to be invested in the Fund; |
■ | Persons participating in a fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial institution; |
■ | Financial Intermediaries who have entered into an agreement with the Distributor and have been approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not charge a transaction fee; |
■ | Persons associated with a Fund, a Fund’s manager, a Fund’s sub-advisers, transfer agent, Distributor, fund accounting agents, Barclays PLC (“Barclays”) and their respective affiliates (to the extent permitted by these firms) including: (a) officers, directors and partners; (b) employees and retirees; (c) employees of firms who have entered into selling agreements to distribute shares of BlackRock Funds; (d) immediate family members of such persons; and (e) any trust, pension, profit-sharing or other benefit plan for any of the persons set forth in (a) through (d); and |
■ | State sponsored 529 college savings plans. |
Years Since Purchase | Sales Charge 1 |
0–1 | 4.50% |
1–2 | 4.00% |
2–3 | 3.50% |
3–4 | 3.00% |
4–5 | 2.00% |
5–6 | 1.00% |
6 and thereafter | 0.00% |
1 | The percentage charge will apply to the lesser of the original cost of the shares being redeemed or the proceeds of your redemption. Not all BlackRock Funds have identical deferred sales charge schedules. If you exchange your shares for shares of another BlackRock Fund, the original deferred sales charge schedule will apply. |
■ | Redemptions of shares purchased through certain employer-sponsored retirement plans and rollovers of current investments in a Fund through such plans; |
■ | Exchanges pursuant to the exchange privilege, as described in “How to Buy, Sell, Exchange and Transfer Shares — How to Exchange Shares or Transfer Your Account”; |
■ | Redemptions made in connection with minimum required distributions from IRA or 403(b)(7) accounts due to the shareholder reaching the age of 70½; |
■ | Certain post-retirement withdrawals from an IRA or other retirement plan if you are over 59½ years old and you purchased your shares prior to October 2, 2006; |
■ | Redemptions made with respect to certain retirement plans sponsored by a Fund, BlackRock or an affiliate; |
■ | Redemptions resulting from shareholder death as long as the waiver request is made within one year of death or, if later, reasonably promptly following completion of probate (including in connection with the distribution of account assets to a beneficiary of the decedent); |
■ | Withdrawals resulting from shareholder disability (as defined in the Internal Revenue Code) as long as the disability arose subsequent to the purchase of the shares; |
■ | Involuntary redemptions made of shares in accounts with low balances; |
■ | Certain redemptions made through the Systematic Withdrawal Plan offered by a Fund, BlackRock or an affiliate; |
■ | Redemptions related to the payment of BNY Mellon Investment Servicing Trust Company custodial IRA fees; and |
■ | Redemptions when a shareholder can demonstrate hardship, in the absolute discretion of a Fund. |
■ | Investors who currently own Institutional Shares of a Fund may make additional purchases of Institutional Shares of the Fund directly from the Fund; |
■ | Institutional and individual retail investors with a minimum investment of $2 million who purchase directly from a Fund; |
■ | Certain employer-sponsored retirement plans. For this purpose, employer-sponsored retirement plans do not include SEP IRAs, SIMPLE IRAs or SARSEPs; |
■ | Investors in selected fee-based programs; |
■ | Clients of registered investment advisers who have $250,000 invested in a Fund; |
■ | Trust department clients of PNC Bank and Bank of America, N.A. and their affiliates for whom they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans); (ii) otherwise have investment discretion; or (iii) act as custodian for at least $2 million in assets; |
■ | Unaffiliated banks, thrifts or trust companies that have agreements with the Distributor; |
■ | Holders of certain Bank of America Corporation (“BofA Corp.”) sponsored unit investment trusts (“UITs”) who reinvest dividends received from such UITs in shares of a Fund; and |
■ | Employees, officers and directors/trustees of BlackRock, Inc., BlackRock Funds, BofA Corp., PNC, Barclays or their respective affiliates. |
■ | Responding to customer questions on the services performed by the Financial Intermediary and investments in Investor A, Investor B, Investor C and Class R Shares; |
■ | Assisting customers in choosing and changing dividend options, account designations and addresses; and |
■ | Providing other similar shareholder liaison services. |
Your Choices | Important Information for You to Know | |
Initial Purchase (continued) | Next, determine the amount of your investment (continued) | investors if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum investment requirement. |
Have your Financial Intermediary submit your purchase order |
The
price of your shares is based on the next calculation of the Fund’s net asset value after your order is placed. Any purchase orders placed prior to the close of business on the New York Stock Exchange (the “NYSE”) (generally 4:00
p.m. Eastern time) will be priced at the net asset value determined that day. Certain Financial Intermediaries, however, may require submission of orders prior to that time. Purchase orders placed after that time will be priced at the net asset
value determined on the next business day.
A broker-dealer or financial institution maintaining the account in which you hold shares may charge a separate account, service or transaction fee on the purchase or sale of Fund shares that would be in addition to the fees and expenses shown in the Fund’s “Fees and Expenses” table. The Fund may reject any order to buy shares and may suspend the sale of shares at any time. Financial Intermediaries may charge a processing fee to confirm a purchase. |
|
Or contact BlackRock (for accounts held directly with BlackRock) | To purchase shares directly from BlackRock, call (800) 441-7762 and request a new account application. Mail the completed application along with a check payable to “BlackRock Funds” to the Transfer Agent at the address on the application. | |
Add to Your Investment | Purchase additional shares | For Investor A and Investor C Shares, the minimum investment for additional purchases is generally $50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum for additional purchases). The minimums for additional purchases may be waived under certain circumstances. Institutional Shares have no minimum for additional purchases. |
Have your Financial Intermediary submit your purchase order for additional shares | To purchase additional shares you may contact your Financial Intermediary. For more details on purchasing by Internet see below. | |
Or contact BlackRock (for accounts held directly with BlackRock) |
Purchase
by Telephone:
Call (800) 441-7762 and speak with one of our representatives. The Fund has the right to reject any telephone request for any reason.
Purchase in Writing: You may send a written request to BlackRock at the address on the back cover of this prospectus. Purchase by VRU: Investor Shares may also be purchased by use of the Fund’s automated voice response unit service (“VRU”) at (800) 441-7762. Purchase by Internet: You may purchase your shares and view activity in your account by logging onto the BlackRock website at www.blackrock.com/funds. Purchases made on the Internet using the Automated Clearing House (“ACH”) will have a trade date that is the day after the purchase is made. Certain institutional clients’ purchase orders of Institutional Shares placed by wire prior to the close of business on the NYSE will be priced at the net asset value determined that day. Contact your Financial Intermediary or BlackRock for further information. The Fund limits Internet purchases in shares of the Fund to $25,000 per trade. Different maximums may apply to certain institutional investors. Please read the On-Line Services Disclosure Statement and User Agreement, the Terms and Conditions page and the Consent to Electronic Delivery Agreement (if you consent to electronic delivery), before attempting to transact online. The Fund employs reasonable procedures to confirm that transactions entered over the Internet are genuine. By entering into the User Agreement with the Fund in order to open an account through the website, the shareholder waives any right to reclaim any losses from the Fund or any of its affiliates incurred through fraudulent activity. |
Your Choices | Important Information for You to Know | |
Add to Your Investment (continued) |
Acquire
additional shares
by reinvesting dividends and capital gains |
All dividends and capital gains distributions are automatically reinvested without a sales charge. To make any changes to your dividend and/or capital gains distributions options, please call (800) 441-7762 or contact your Financial Intermediary (if your account is not held directly with BlackRock). |
Participate in the Automatic Investment Plan (“AIP”) |
BlackRock’s
AIP allows you to invest a specific amount on a periodic basis from your checking or savings account into your investment account.
Refer to the “Account Services and Privileges” section of this prospectus for additional information. |
|
How to Pay for Shares | Making payment for purchases |
Payment
for an order must be made in Federal funds or other immediately available funds by the time specified by your Financial Intermediary, but in no event later than 4:00 p.m. (Eastern time) on the third business day (in the case of Investor Shares) or
the first business day (in the case of Institutional Shares) following BlackRock’s receipt of the order. If payment is not received by this time, the order will be canceled and you and your Financial Intermediary will be responsible for any
loss to the Fund.
For shares purchased directly from the Fund, a check payable to BlackRock Funds which bears the name of the Fund you are purchasing must accompany a completed purchase application. There is a $20 fee for each purchase check that is returned due to insufficient funds. The Fund does not accept third-party checks. You may also wire Federal funds to the Fund to purchase shares, but you must call (800) 441-7762 before doing so to confirm the wiring instructions. |
Your Choices | Important Information for You to Know | |
Full or Partial Redemption of Shares | Have your Financial Intermediary submit your sales order |
You
can make redemption requests through your Financial Intermediary. Shareholders should indicate whether they are redeeming Investor A, Investor B, Investor C, Institutional or Class R Shares . The price of your shares is based on the next
calculation of the Fund’s net asset value after your order is placed. For your redemption request to be priced at the net asset value on the day of your request, you must submit your request to your Financial Intermediary prior to that
day’s close of business on the NYSE (generally 4:00 p.m. Eastern time). Certain Financial Intermediaries, however, may require submission of orders prior to that time. Any redemption request placed after that time will be priced at the net
asset value at the close of business on the next business day.
Financial Intermediaries may charge a fee to process a redemption of shares. The Fund may reject an order to sell shares under certain circumstances. |
Selling shares held directly with BlackRock |
Methods
of Redeeming
Redeem by Telephone: You may redeem Investor Shares held directly with BlackRock by telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments by check or (ii) $250,000 for payments through ACH or wire transfer. Certain redemption requests, such as those in excess of these amounts, must be in writing with a medallion signature guarantee. For Institutional Shares, certain redemption requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association, national securities exchange or registered securities association. A notary public seal will not be acceptable. The Fund, its administrators and the Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine. The Fund and its service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions |
Your Choices | Important Information for You to Know | |
Full or Partial Redemption of Shares (continued) | Selling shares held directly with BlackRock (continued) |
that
are reasonably believed to be genuine in accordance with such procedures. The Fund may refuse a telephone redemption request if it believes it is advisable to do so.
During periods of substantial economic or market change, telephone redemptions may be difficult to complete. Please find alternative redemption methods below. Redeem by VRU: Investor Shares may also be redeemed by use of the Fund’s automated VRU service. Payment for Investor Shares redeemed by VRU may be made for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire. Redeem by Internet: You may redeem in your account by logging onto the BlackRock website at www.blackrock.com/funds. Proceeds from Internet redemptions may be sent via check, ACH or wire to the bank account of record. Payment for Investor Shares redeemed by Internet may be made for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire. Different maximums may apply to investors in Institutional Shares. Redeem in Writing: You may sell shares held at BlackRock by writing to BlackRock, P.O. Box 9819, Providence, Rhode Island 02940-8019 or for overnight delivery, 4400 Computer Drive, Westborough, Massachusetts 01588. All shareholders on the account must sign the letter. A medallion signature guarantee will generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association, national securities exchange or registered securities association. A notary public seal will not be acceptable. If you hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH or wire to the bank account of record. Payment of Redemption Proceeds Redemption proceeds may be paid by check or, if the Fund has verified banking information on file, through ACH or by wire transfer. Payment by Check: BlackRock will normally mail redemption proceeds within seven days following receipt of a properly completed request. Shares can be redeemed by telephone and the proceeds sent by check to the shareholder at the address on record. Shareholders will pay $15 for redemption proceeds sent by check via overnight mail. You are responsible for any additional charges imposed by your bank for this service. Payment by Wire Transfer: Payment for redeemed shares for which a redemption order is received before 4:00 p.m. (Eastern time) on a business day is normally made in Federal funds wired to the redeeming shareholder on the next business day, provided that the Fund’s custodian is also open for business. Payment for redemption orders received after 4:00 p.m. (Eastern time) or on a day when the Fund’s custodian is closed is normally wired in Federal funds on the next business day following redemption on which the Fund’s custodian is open for business. The Fund reserves the right to wire redemption proceeds within seven days after receiving a redemption order if, in the judgment of the Fund, an earlier payment could adversely affect the Fund. If a shareholder has given authorization for expedited redemption, shares can be redeemed by Federal wire transfer to a single previously designated bank account. Shareholders will pay $7.50 for redemption proceeds sent by Federal wire transfer. You are responsible for any additional charges imposed by your bank for this service. No charge for wiring redemption payments with respect to Institutional Shares is imposed by the Fund. The Fund is not responsible for the efficiency of the Federal wire system or the shareholder’s firm or bank. To change the name of the single, designated bank account to receive wire redemption proceeds, it |
Your Choices | Important Information for You to Know | |
Full or Partial Redemption of Shares (continued) | Selling shares held directly with BlackRock (continued) |
is
necessary to send a written request to the Fund at the address on the back cover of this prospectus.
Payment by ACH: Redemption proceeds may be sent to the shareholder’s bank account (checking or savings) via ACH. Payment for redeemed shares for which a redemption order is received before 4:00 p.m. (Eastern time) on a business day is normally sent to the redeeming shareholder the next business day, with receipt at the receiving bank within the next two business days (48-72 hours), provided that the Fund’s custodian is also open for business. Payment for redemption orders received after 4:00 p.m. (Eastern time) or on a day when the Fund’s custodian is closed is normally sent on the next business day following redemption on which the Fund’s custodian is open for business. The Fund reserves the right to send redemption proceeds within seven days after receiving a redemption order if, in the judgment of the Fund, an earlier payment could adversely affect the Fund. No charge for sending redemption payments via ACH is imposed by the Fund.
***
If you make a redemption request before the Fund has collected payment for the purchase of shares, the Fund may delay mailing your proceeds. This delay will usually not exceed ten days. |
Your Choices | Important Information for You to Know | |
Exchange Privilege | Selling shares of one fund to purchase shares of another BlackRock Fund (“exchanging”) |
Investor
A, Investor B, Investor C or Institutional Shares of the Fund are generally exchangeable for shares of the same class of another BlackRock Fund. No exchange privilege is available for Class R Shares
You can exchange $1,000 or more of Investor A, Investor B or Investor C Shares from one fund into the same class of another fund which offers that class of shares (you can exchange less than $1,000 of Investor A, Investor B or Investor C Shares if you already have an account in the fund into which you are exchanging). Investors who currently own Institutional Shares of the Fund may make exchanges into Institutional Shares of other BlackRock Funds except for investors holding shares through certain client accounts at Financial Intermediaries that are omnibus with the Fund and do not meet applicable minimums. There is no required minimum amount with respect to exchanges of Institutional Shares. You may only exchange into a share class and fund that are open to new investors or in which you have a current account if the fund is closed to new investors. Some of the BlackRock Funds impose a different initial or deferred sales charge schedule. The CDSC will continue to be measured from the date of the original purchase. The CDSC schedule applicable to your original purchase will apply to the shares you receive in the exchange and any subsequent exchange. To exercise the exchange privilege, you may contact your Financial Intermediary. Alternatively, if your account is held directly with BlackRock, you may: (i) call (800) 441-7762 and speak with one of our representatives, (ii) make the exchange via the Internet by accessing your account online at www.blackrock.com/funds, or (iii) send a written request to the Fund at the address on the back cover of this prospectus. Please note, if you indicated on your New Account Application that you did not want the Telephone Exchange Privilege, you will not be able to place exchanges via the telephone until you update this option either in writing or by calling (800) 441-7762. The Fund has the right to reject any telephone request for any reason. Although there is currently no limit on the number of exchanges that you can make, the exchange privilege may be modified or terminated at any time in the future. The Fund may suspend or terminate your exchange privilege at any time for any reason, including if the Fund |
Your Choices | Important Information for You to Know | |
Exchange Privilege (continued) | Selling shares of one fund to purchase shares of another BlackRock Fund (“exchanging”) (continued) | believes, in its sole discretion, that you are engaging in market timing activities. See “Short-Term Trading Policy” below. For Federal income tax purposes, a share exchange is a taxable event and a capital gain or loss may be realized. Please consult your tax adviser or other Financial Intermediary before making an exchange request. |
Transfer Shares to Another Financial Intermediary | Transfer to a participating Financial Intermediary |
You
may transfer your shares of the Fund only to another Financial Intermediary that has entered into an agreement with the Distributor. Certain shareholder services may not be available for the transferred shares. All future trading of these assets
must be coordinated by the receiving firm.
If your account is held directly with BlackRock, you may call (800) 441-7762 with any questions; otherwise please contact your Financial Intermediary to accomplish the transfer of shares. |
Transfer to a non-participating Financial Intermediary |
You
must either:
• Transfer your shares to an account with the Fund; or • Sell your shares, paying any applicable deferred sales charge. If your account is held directly with BlackRock, you may call (800) 441-7762 with any questions; otherwise please contact your Financial Intermediary to accomplish the transfer of shares. |
■ | Suspend the right of redemption if trading is halted or restricted on the NYSE or under other emergency conditions described in the Investment Company Act; |
■ | Postpone the date of payment upon redemption if trading is halted or restricted on the NYSE or under other emergency conditions described in the Investment Company Act or if a redemption request is made before the Fund has collected payment for the purchase of shares; |
■ | Redeem shares for property other than cash if conditions exist which make cash payments undesirable in accordance with its rights under the Investment Company Act; and |
■ | Redeem shares involuntarily in certain cases, such as when the value of a shareholder account falls below a specified level. |
Average Daily Net Assets |
Rate
of
Management Fee |
Not exceeding $500 million | 0.75% |
In excess of $500 million | 0.70% |
Average Daily Net Assets |
Rate
of
Management Fee |
Not exceeding $1 billion | 1.00% |
In excess of $1 billion but not more than $3 billion | 0.94% |
In excess of $3 billion but not more than $5 billion | 0.90% |
In excess of $5 billion but not more than $10 billion | 0.87% |
In excess of $10 billion | 0.85% |
Fund |
Management
Fees
(Net of Applicable Waivers) |
Master International Portfolio | 0.73% |
Emerging Markets Fund | 1.00% |
Latin America Fund | 1.00% |
Portfolio Manager | Primary Role | Since | Title and Recent Biography |
James Bristow, CFA | Jointly and primarily responsible for the day-to-day management of Master International Portfolio’s portfolio, including setting Master International Portfolio’s overall investment strategy and overseeing the management of Master International Portfolio. | 2007 | Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2006 to 2009. |
Gareth Williams, CFA | Jointly and primarily responsible for the day-to-day management of Master International Portfolio’s portfolio, including setting Master International Portfolio’s overall investment strategy and overseeing the management of Master International Portfolio. | 2011 | Director of BlackRock, Inc. since 2013; Vice-President from 2010 to 2012; Associate of BlackRock, Inc. from 2008 to 2009. |
Portfolio Manager | Primary Role | Since | Title and Recent Biography |
Luiz Soares | Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund. | 2012 | Managing Director of BlackRock, Inc. since 2012; Portfolio manager of Axiom International Investors from 2007 to 2011. |
Dhiren Shah, CFA | Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund. | 2009 | Director of BlackRock, Inc. since 2009; Vice President of BlackRock, Inc. from 2006 to 2008. |
Portfolio Manager | Primary Role | Since | Title and Recent Biography |
William Landers, CFA | Primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund. | 2002 | Managing Director of BlackRock, Inc. since 2007. |
Institutional | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 12.30 | $ 12.18 | $ 12.86 | $10.91 | $ 8.20 |
Net investment income (loss) 1 | 0.25 | 0.16 | 0.02 | (0.01) | 0.09 |
Net realized and unrealized gain (loss) | 3.13 | 0.03 | (0.70) 2 | 1.96 2 | 2.62 2 |
Net increase (decrease) from investment operations | 3.38 | 0.19 | (0.68) | 1.95 | 2.71 |
Dividends from net investment income 3 | (0.17) | (0.07) | — | — | — |
Net asset value, end of year | $ 15.51 | $ 12.30 | $ 12.18 | $12.86 | $10.91 |
Total Investment Return 4 | |||||
Based on net asset value | 27.77% 5 | 1.63% | (5.29)% | 17.87% | 33.05% |
Ratios to Average Net Assets 6 | |||||
Total expenses | 1.22% 7 | 1.31% 7 | 1.30% 7 | 1.77% | 2.03% |
Total expenses after fees waived | 1.00% 7 | 1.00% 7 | 1.06% 7 | 1.77% | 2.03% |
Net investment income (loss) | 1.81% 7 | 1.29% 7 | 0.19% 7 | (0.13)% | 0.99% |
Supplemental Data | |||||
Net assets, end of year (000) | $431,563 | $313,764 | $416,002 | $2,645 | $5,133 |
Portfolio turnover of the Master International Portfolio | 128% | 117% | 156% | 154% | 178% |
1 | Based on average shares outstanding. |
2 | Includes redemption fees, which are less than $0.005 per share. |
3 | Determined in accordance with federal income tax regulations. |
4 | Where applicable, assumes the reinvestment of dividends and distributions. |
5 | Includes a payment from an affiliate to compensate for foregone securities lending revenue which impacted the Fund’s total return. Not including this payment the Fund’s total return would have been 27.68% for the Institutional Shares. |
6 | Includes the Fund’s share of the Master International Portfolio’s allocated expenses and/or net investment income. |
7 | Includes the Fund’s share of the Master International Portfolio’s allocated fees waived of less than 0.01%. |
Investor A | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 12.03 | $ 11.94 | $ 12.66 | $ 10.76 | $ 8.12 |
Net investment income (loss) 1 | 0.20 | 0.11 | 0.00 2 | (0.06) | 0.05 |
Net realized and unrealized gain (loss) | 3.07 | 0.03 | (0.72) 3 | 1.96 3 | 2.59 3 |
Net increase (decrease) from investment operations | 3.27 | 0.14 | (0.72) | 1.90 | 2.64 |
Dividends from net investment income 4 | (0.13) | (0.05) | — | — | — |
Net asset value, end of year | $ 15.17 | $ 12.03 | $ 11.94 | $ 12.66 | $ 10.76 |
Total Investment Return 5 | |||||
Based on net asset value | 27.37% 6 | 1.21% | (5.69)% | 17.66% | 32.51% |
Ratios to Average Net Assets 7 | |||||
Total expenses | 1.56% 8 | 1.64% 8 | 1.80% 8 | 2.08% | 2.40% |
Total expenses after fees waived | 1.38% 8 | 1.38% 8 | 1.67% 8 | 1.67% | 2.40% |
Net investment income (loss) | 1.53% 8 | 0.96% 8 | 0.01% 8 | (0.51)% | 0.54% |
Supplemental Data | |||||
Net assets, end of year (000) | $280,123 | $221,365 | $208,885 | $37,035 | $28,949 |
Portfolio turnover of the Master International Portfolio | 128% | 117% | 156% | 154% | 178% |
1 | Based on average shares outstanding. |
2 | Amount is less than $0.005 per share. |
3 | Includes redemption fees, which are less than $0.005 per share. |
4 | Determined in accordance with federal income tax regulations. |
5 | Where applicable, excludes the effects of any sale charges and assumes the reinvestment of dividends and distributions. |
6 | Includes a payment from an affiliate to compensate for foregone securities lending revenue which impacted the Fund’s total return. Not including this payment the Fund’s total return would have been 27.29% for the Investor A Shares. |
7 | Includes the Fund’s share of the Master International Portfolio’s allocated expenses and/or net investment income. |
8 | Includes the Fund’s share of the Master International Portfolio’s allocated fees waived of less than 0.01%. |
Investor B | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $11.05 | $ 11.04 | $ 11.84 | $ 10.18 | $ 7.77 |
Net investment income (loss) 1 | 0.05 | (0.02) | (0.12) | (0.17) | (0.04) |
Net realized and unrealized gain (loss) | 2.83 | 0.03 | (0.68) 2 | 1.83 2 | 2.45 2 |
Net increase (decrease) from investment operations | 2.88 | 0.01 | (0.80) | 1.66 | 2.41 |
Net asset value, end of year | $13.93 | $ 11.05 | $ 11.04 | $ 11.84 | $ 10.18 |
Total Investment Return 3 | |||||
Based on net asset value | 26.06% 4 | 0.09% | (6.76)% | 16.31% | 31.02% |
Ratios to Average Net Assets 5 | |||||
Total expenses | 3.04% 6 | 2.93% 6 | 3.08% 6 | 3.21% | 3.61% |
Total expenses after fees waived | 2.42% 6 | 2.44% 6 | 2.99% 6 | 3.21% | 3.61% |
Net investment income (loss) | 0.40% 6 | (0.16)% 6 | (1.01)% 6 | (1.65)% | (0.54)% |
Supplemental Data | |||||
Net assets, end of year (000) | $4,837 | $11,609 | $22,320 | $11,898 | $20,342 |
Portfolio turnover of the Master International Portfolio | 128% | 117% | 156% | 154% | 178% |
1 | Based on average shares outstanding. |
2 | Includes redemption fees, which are less than $0.005 per share. |
3 | Where applicable, excludes the effects of any sale charges and assumes the reinvestment of dividends and distributions. |
4 | Includes a payment from an affiliate to compensate for foregone securities lending revenue which impacted the Fund’s total return. Not including this payment the Fund’s total return would have been 25.97% for the Investor B Shares. |
5 | Includes the Fund’s share of the Master International Portfolio’s allocated expenses and/or net investment income. |
6 | Includes the Fund’s share of the Master International Portfolio’s allocated fees waived of less than 0.01%. |
Investor C | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 11.23 | $ 11.23 | $ 12.00 | $ 10.28 | $ 7.81 |
Net investment income (loss) 1 | 0.06 | (0.01) | (0.11) | (0.13) | (0.01) |
Net realized and unrealized gain (loss) | 2.86 | 0.03 | (0.66) 2 | 1.85 2 | 2.48 2 |
Net increase (decrease) from investment operations | 2.92 | 0.02 | (0.77) | 1.72 | 2.47 |
Dividends from net investment income 3 | (0.00) 4 | (0.02) | — | — | — |
Net asset value, end of year | $ 14.15 | $ 11.23 | $ 11.23 | $ 12.00 | $ 10.28 |
Total Investment Return 5 | |||||
Based on net asset value | 26.02% 6 | 0.23% | (6.42)% | 16.73% | 31.63% |
Ratios to Average Net Assets 7 | |||||
Total expenses | 2.49% 8 | 2.66% 8 | 2.58% 8 | 2.80% | 3.09% |
Total expenses after fees waived | 2.39% 8 | 2.41% 8 | 2.53% 8 | 2.80% | 3.09% |
Net investment income (loss) | 0.51% 8 | (0.09)% 8 | (0.99)% 8 | (1.23)% | (0.07)% |
Supplemental Data | |||||
Net assets, end of year (000) | $156,198 | $135,280 | $151,594 | $13,636 | $12,470 |
Portfolio turnover of the Master International Portfolio | 128% | 117% | 156% | 154% | 178% |
1 | Based on average shares outstanding. |
2 | Includes redemption fees, which are less than $0.005 per share. |
3 | Determined in accordance with federal income tax regulations. |
4 | Amount is greater than $(0.005) per share. |
5 | Where applicable, excludes the effects of any sale charges and assumes the reinvestment of dividends and distributions. |
6 | Includes a payment from an affiliate to compensate for foregone securities lending revenue which impacted the Fund’s total return. Not including this payment the Fund’s total return would have been 25.93% for Investor C Shares. |
7 | Includes the Fund’s share of the Master International Portfolio’s allocated expenses and/or net investment income. |
8 | Includes the Fund’s share of the Master International Portfolio’s allocated fees waived of less than 0.01%. |
Class R | |||
Year Ended October 31, |
Period
August 15, 2011 1 to October 31, 2011 |
||
2013 | 2012 | ||
Per Share Operating Performance | |||
Net asset value, beginning of period | $ 11.98 | $ 11.93 | $ 12.11 |
Net investment income (loss) 2 | 0.16 | 0.07 | (0.01) |
Net realized and unrealized gain (loss) | 3.05 | 0.03 | (0.17) |
Net increase (decrease) from investment operations | 3.21 | 0.10 | (0.18) |
Dividends from net investment income 3 | (0.07) | (0.05) | — |
Net asset value, end of period | $ 15.12 | $ 11.98 | $ 11.93 |
Total Investment Return 4 | |||
Based on net asset value | 26.95% 5 | 0.90% | (1.49)% 6 |
Ratios to Average Net Assets 7 | |||
Total expenses | 1.85% 8 | 1.92% 8 | 1.91% 8,9 |
Total expenses after fees waived | 1.70% 8 | 1.70% 8 | 1.71% 8,9 |
Net investment income (loss) | 1.22% 8 | 0.59% 8 | (0.57)% 8,9 |
Supplemental Data | |||
Net assets, end of period (000) | $29,711 | $26,887 | $32,968 |
Portfolio turnover of the Master International Portfolio | 128% | 117% | 156% |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Determined in accordance with federal income tax regulations. |
4 | Where applicable, assumes the reinvestment of dividends and distributions. |
5 | Includes a payment from an affiliate to compensate for foregone securities lending revenue which impacted the Fund’s total return. Not including this payment the Fund’s total return would have been 26.87% for the Class R Shares. |
6 | Aggregate total investment return. |
7 | Includes the Fund’s share of the Master International Portfolio’s allocated expenses and/or net investment income. |
8 | Includes the Fund’s share of the Master International Portfolio’s allocated fees waived of less than 0.01%. |
9 | Annualized. |
Institutional | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 19.28 | $ 18.23 | $ 20.50 | $ 17.01 | $ 10.17 |
Net investment income 1 | 0.19 | 0.29 | 0.27 | 0.13 | 0.14 |
Net realized and unrealized gain (loss) | 0.90 | 0.85 | (2.34) 2 | 3.47 2 | 6.75 2 |
Net increase (decrease) from investment operations | 1.09 | 1.14 | (2.07) | 3.60 | 6.89 |
Dividends from net investment income 3 | (0.27) | (0.09) | (0.20) | (0.11) | (0.05) |
Net asset value, end of year | $ 20.10 | $ 19.28 | $ 18.23 | $ 20.50 | $ 17.01 |
Total Investment Return 4 | |||||
Based on net asset value | 5.67% 5 | 6.37% | (10.21)% | 21.28% | 68.14% |
Ratios to Average Net Assets | |||||
Total expenses | 1.29% | 1.33% | 1.28% | 1.33% | 1.48% |
Total expenses after fees waived | 1.29% | 1.33% | 1.28% | 1.33% | 1.48% |
Net investment income | 0.95% | 1.53% | 1.39% | 0.71% | 1.10% |
Supplemental Data | |||||
Net assets, end of year (000) | $186,724 | $116,883 | $127,181 | $123,007 | $86,173 |
Portfolio turnover | 71% | 155% | 138% | 135% | 191% |
1 | Based on average shares outstanding. |
2 | Includes a redemption fee, which is less than $0.01 per share. |
3 | Dividends are determined in accordance with federal income tax regulations. |
4 | Where applicable, assumes the reinvestment of dividends and distributions. |
5 | Includes a payment from an affiliate to compensate for foregone securities lending revenue which impacted the Fund’s total return. Not including this payment, the Fund’s total return would have been 5.51%. |
Investor A | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 18.61 | $ 17.60 | $ 19.81 | $ 16.45 | $ 9.85 |
Net investment income 1 | 0.13 | 0.22 | 0.18 | 0.07 | 0.10 |
Net realized and unrealized gain (loss) | 0.86 | 0.83 | (2.24) 2 | 3.36 2 | 6.53 2 |
Net increase (decrease) from investment operations | 0.99 | 1.05 | (2.06) | 3.43 | 6.63 |
Dividends from net investment income 3 | (0.22) | (0.04) | (0.15) | (0.07) | (0.03) |
Net asset value, end of year | $ 19.38 | $ 18.61 | $ 17.60 | $ 19.81 | $ 16.45 |
Total Investment Return 4 | |||||
Based on net asset value | 5.30% 5 | 6.02% | (10.48)% | 20.93% | 67.59% |
Ratios to Average Net Assets | |||||
Total expenses | 1.60% | 1.67% | 1.59% | 1.65% | 1.83% |
Total expenses after fees waived | 1.60% | 1.67% | 1.59% | 1.65% | 1.83% |
Net investment income | 0.69% | 1.24% | 0.93% | 0.43% | 0.80% |
Supplemental Data | |||||
Net assets, end of year (000) | $215,490 | $174,637 | $155,017 | $144,976 | $111,850 |
Portfolio turnover | 71% | 155% | 138% | 135% | 191% |
1 | Based on average shares outstanding. |
2 | Includes a redemption fee, which is less than $0.01 per share. |
3 | Dividends are determined in accordance with federal income tax regulations. |
4 | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions. |
5 | Includes a payment from an affiliate to compensate for foregone securities lending revenue which impacted the Fund’s total return. Not including this payment, the Fund’s total return would have been 5.13%. |
Investor B | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $16.49 | $15.71 | $ 17.70 | $14.76 | $ 8.89 |
Net investment income (loss) 1 | (0.08) | 0.04 | (0.00) 2 | (0.07) | (0.01) |
Net realized and unrealized gain (loss) | 0.78 | 0.74 | (1.99) 3 | 3.01 3 | 5.88 3 |
Net increase (decrease) from investment operations | 0.70 | 0.78 | (1.99) | 2.94 | 5.87 |
Net asset value, end of year | $17.19 | $16.49 | $ 15.71 | $17.70 | $14.76 |
Total Investment Return 4 | |||||
Based on net asset value | 4.25% 5 | 4.96% | (11.24)% | 19.92% | 66.03% |
Ratios to Average Net Assets | |||||
Total expenses | 2.62% | 2.66% | 2.45% | 2.49% | 2.71% |
Total expenses after fees waived | 2.62% | 2.66% | 2.45% | 2.49% | 2.71% |
Net investment income (loss) | (0.49)% | 0.25% | (0.02)% | (0.45)% | (0.08)% |
Supplemental Data | |||||
Net assets, end of year (000) | $1,381 | $2,251 | $ 3,386 | $4,677 | $4,809 |
Portfolio turnover | 71% | 155% | 138% | 135% | 191% |
1 | Based on average shares outstanding. |
2 | Amount is greater than $(0.01) per share. |
3 | Includes a redemption fee, which is less than $0.01 per share. |
4 | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions. |
5 | Includes a payment from an affiliate to compensate for foregone securities lending revenue which impacted the Fund’s total return. Not including this payment, the Fund’s total return would have been 4.06%. |
Investor C | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 16.02 | $ 15.26 | $ 17.23 | $ 14.38 | $ 8.65 |
Net investment income (loss) 1 | (0.03) | 0.06 | 0.05 | (0.06) | (0.01) |
Net realized and unrealized gain (loss) | 0.74 | 0.71 | (1.98) 2 | 2.92 2 | 5.74 2 |
Net increase (decrease) from investment operations | 0.71 | 0.77 | (1.93) | 2.86 | 5.73 |
Dividends from net investment income 3 | (0.08) | (0.01) | (0.04) | (0.01) | — |
Net asset value, end of year | $ 16.65 | $ 16.02 | $ 15.26 | $ 17.23 | $ 14.38 |
Total Investment Return 4 | |||||
Based on net asset value | 4.45% 5 | 5.07% | (11.21)% | 19.90% | 66.24% |
Ratios to Average Net Assets | |||||
Total expenses | 2.46% | 2.56% | 2.37% | 2.49% | 2.66% |
Total expenses after fees waived | 2.46% | 2.56% | 2.37% | 2.49% | 2.66% |
Net investment income (loss) | (0.18)% | 0.38% | 0.30% | (0.38)% | (0.08)% |
Supplemental Data | |||||
Net assets, end of year (000) | $119,015 | $102,559 | $87,455 | $38,711 | $26,347 |
Portfolio turnover | 71% | 155% | 138% | 135% | 191% |
1 | Based on average shares outstanding. |
2 | Includes a redemption fee, which is less than $0.01 per share. |
3 | Dividends are determined in accordance with federal income tax regulations. |
4 | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions. |
5 | Includes a payment from an affiliate to compensate for foregone securities lending revenue which impacted the Fund’s total return. Not including this payment, the Fund’s total return would have been 4.27%. |
Institutional | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 1 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 58.82 | $ 62.80 | $ 75.35 | $ 58.63 | $ 30.53 |
Net investment income 2 | 0.79 | 0.94 | 1.31 | 0.85 | 0.64 |
Net realized and unrealized gain (loss) | (2.48) | (4.38) | (12.58) | 16.82 | 27.45 |
Net increase (decrease) from investment operations | (1.69) | (3.44) | (11.27) | 17.67 | 28.09 |
Dividends from net investment income 3 | (1.00) | (0.54) | (1.28) | (0.97) | — |
Redemption fee | — | — | — | 0.02 | 0.01 |
Net asset value, end of year | $ 56.13 | $ 58.82 | $ 62.80 | $ 75.35 | $ 58.63 |
Total Investment Return 4 | |||||
Based on net asset value | (3.01)% | (5.43)% | (15.18)% | 30.52% | 92.04% |
Ratios to Average Net Assets | |||||
Total expenses | 1.27% | 1.32% | 1.26% | 1.25% | 1.35% |
Total expenses after fees waived | 1.27% | 1.32% | 1.26% | 1.25% | 1.35% |
Net investment income | 1.36% | 1.55% | 1.89% | 1.31% | 1.60% |
Supplemental Data | |||||
Net assets, end of year (000) | $110,295 | $125,473 | $175,554 | $200,980 | $114,101 |
Portfolio turnover | 66% | 50% | 33% | 64% | 50% |
1 | Consolidated Financial Highlights. |
2 | Based on average shares outstanding. |
3 | Dividends are determined in accordance with federal income tax regulations. |
4 | Where applicable, assumes the reinvestment of dividends and distributions. |
Investor A | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 1 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 57.90 | $ 61.67 | $ 74.07 | $ 57.73 | $ 30.15 |
Net investment income 2 | 0.61 | 0.78 | 1.08 | 0.65 | 0.51 |
Net realized and unrealized gain (loss) | (2.43) | (4.25) | (12.37) | 16.54 | 27.06 |
Net increase (decrease) from investment operations | (1.82) | (3.47) | (11.29) | 17.19 | 27.57 |
Dividends from net investment income 3 | (0.87) | (0.30) | (1.11) | (0.88) | — |
Redemption fee | — | — | — | 0.03 | 0.01 |
Net asset value, end of year | $ 55.21 | $ 57.90 | $ 61.67 | $ 74.07 | $ 57.73 |
Total Investment Return 4 | |||||
Based on net asset value | (3.27)% | (5.60)% | (15.44)% | 30.15% | 91.48% |
Ratios to Average Net Assets | |||||
Total expenses | 1.53% | 1.53% | 1.55% | 1.53% | 1.63% |
Total expenses after fees waived | 1.53% | 1.53% | 1.55% | 1.53% | 1.63% |
Net investment income | 1.06% | 1.32% | 1.57% | 1.00% | 1.26% |
Supplemental Data | |||||
Net assets, end of year (000) | $236,205 | $315,531 | $405,903 | $616,664 | $475,611 |
Portfolio turnover | 66% | 50% | 33% | 64% | 50% |
1 | Consolidated Financial Highlights. |
2 | Based on average shares outstanding. |
3 | Dividends are determined in accordance with federal income tax regulations. |
4 | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions. |
Investor B | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 1 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $53.96 | $57.68 | $ 69.31 | $ 54.12 | $ 28.54 |
Net investment income 2 | 0.08 | 0.24 | 0.46 | 0.12 | 0.15 |
Net realized and unrealized gain (loss) | (2.28) | (3.96) | (11.59) | 15.50 | 25.42 |
Net increase (decrease) from investment operations | (2.20) | (3.72) | (11.13) | 15.62 | 25.57 |
Dividends from net investment income 3 | (0.25) | — | (0.50) | (0.45) | — |
Redemption fee | — | — | — | 0.02 | 0.01 |
Net asset value, end of year | $51.51 | $53.96 | $ 57.68 | $ 69.31 | $ 54.12 |
Total Investment Return 4 | |||||
Based on net asset value | (4.12)% | (6.45)% | (16.16)% | 29.06% | 89.63% |
Ratios to Average Net Assets | |||||
Total expenses | 2.44% | 2.41% | 2.40% | 2.37% | 2.62% |
Total expenses after fees waived | 2.44% | 2.41% | 2.40% | 2.37% | 2.62% |
Net investment income | 0.15% | 0.43% | 0.71% | 0.21% | 0.40% |
Supplemental Data | |||||
Net assets, end of year (000) | $5,009 | $7,989 | $11,886 | $18,660 | $18,695 |
Portfolio turnover | 66% | 50% | 33% | 64% | 50% |
1 | Consolidated Financial Highlights. |
2 | Based on average shares outstanding. |
3 | Dividends are determined in accordance with federal income tax regulations. |
4 | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions. |
Investor C | |||||
Year Ended October 31, | |||||
2013 | 2012 | 2011 | 2010 | 2009 1 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 52.79 | $ 56.39 | $ 67.92 | $ 53.17 | $ 28.01 |
Net investment income 2 | 0.13 | 0.27 | 0.51 | 0.14 | 0.17 |
Net realized and unrealized gain (loss) | (2.24) | (3.87) | (11.35) | 15.21 | 24.98 |
Net increase (decrease) from investment operations | (2.11) | (3.60) | (10.84) | 15.35 | 25.15 |
Dividends from net investment income 3 | (0.31) | — | (0.69) | (0.62) | — |
Redemption fee | — | — | — | 0.02 | 0.01 |
Net asset value, end of year | $ 50.37 | $ 52.79 | $ 56.39 | $ 67.92 | $ 53.17 |
Total Investment Return 4 | |||||
Based on net asset value | (4.05)% | (6.38)% | (16.10)% | 29.15% | 89.82% |
Ratios to Average Net Assets | |||||
Total expenses | 2.35% | 2.35% | 2.33% | 2.32% | 2.49% |
Total expenses after fees waived | 2.35% | 2.35% | 2.33% | 2.32% | 2.49% |
Net investment income | 0.25% | 0.49% | 0.80% | 0.24% | 0.46% |
Supplemental Data | |||||
Net assets, end of year (000) | $72,047 | $111,344 | $160,612 | $217,750 | $151,046 |
Portfolio turnover | 66% | 50% | 33% | 64% | 50% |
1 | Consolidated Financial Highlights. |
2 | Based on average shares outstanding. |
3 | Dividends are determined in accordance with federal income tax regulations. |
4 | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions. |
■ | Access the BlackRock website at http://www.blackrock.com/edelivery; and |
■ | Log into your account. |
TICKER SYMBOLS | ||||||
Class |
BlackRock
International Fund of BlackRock Series, Inc. Ticker Symbol |
BlackRock
Emerging Markets Fund, Inc. Ticker Symbol |
BlackRock
Latin America Fund, Inc. Ticker Symbol |
|||
Investor A Shares
|
MDILX | MDDCX | MDLTX | |||
Investor B Shares
|
MBILX | MBDCX | MBLTX | |||
Investor C Shares
|
MCILX | MCDCX | MCLTX | |||
Institutional Shares
|
MAILX | MADCX | MALTX | |||
Class R Shares
|
BIFRX | — | — |
International
Fund |
Emerging
Markets Fund |
Latin
America Fund |
|
144A Securities | X | X | X |
Asset-Backed Securities | X | ||
Asset-Based Securities | |||
Precious Metal-Related Securities | X | X | X |
Bank Loans | |||
Borrowing and Leverage | X | X | X |
Cash Flows; Expenses | |||
Cash Management | |||
Collateralized Debt Obligations | |||
Collateralized Loan Obligations | |||
Collateralized Bond Obligations | |||
Commercial Paper | X | X | X |
Commodity-Linked Derivative Instruments and Hybrid Instruments | |||
Qualifying Hybrid Instruments | |||
Hybrid Instruments without Principal Protection | |||
Limitations on Leverage | |||
Counterparty Risk | |||
Convertible Securities | X | X | X |
Debt Securities | X | X | X |
Depositary Receipts (ADRs, EDRs and GDRs) | X | X | X |
Derivatives | X | X | X |
Hedging | X | X | X |
Indexed and Inverse Securities | X | X | X |
Swap Agreements | X | X | X |
Credit Default Swap Agreements and Similar Instruments | |||
Contracts for Difference | |||
Credit Linked Securities | |||
Interest Rate Transactions and Swaptions | X | X | X |
Total Return Swap Agreements | |||
Types of Options | X | X | X |
Options on Securities and Securities Indices | X | X | X |
Call Options | X | X | X |
Put Options | X | X | X |
Risks Associated with Options | X | X | X |
Futures | X | X | X |
Risks Associated with Futures | X | X | X |
Foreign Exchange Transactions | X | X | X |
Forward Foreign Exchange Transactions | X | X | X |
Currency Futures | X | X | X |
Currency Options | X | X | X |
Currency Swaps | X | X | X |
Limitations on Currency Transactions | X | X | X |
Risk Factors in Hedging Foreign Currency | X | X | X |
Risk Factors in Derivatives | X | X | X |
Credit Risk | X | X | X |
Currency Risk | X | X | X |
Leverage Risk | X | X | X |
International
Fund |
Emerging
Markets Fund |
Latin
America Fund |
|
Liquidity Risk | X | X | X |
Correlation Risk | |||
Index Risk | |||
Additional Risk Factors of OTC Transactions; Limitations on the Use of OTC Derivatives | X | X | X |
Distressed Securities | |||
Dollar Rolls | X | X | |
Equity Securities | X | X | X |
Exchange Traded Notes (“ETNs”) | |||
Foreign Investment Risks | X | X | X |
Foreign Market Risk | X | X | X |
Foreign Economy Risk | X | X | X |
Currency Risk and Exchange Risk | X | X | X |
Governmental Supervision and Regulation/Accounting Standards | X | X | X |
Certain Risks of Holding Fund Assets Outside the United States | X | X | X |
Settlement Risk | X | X | X |
Publicly Available Information | |||
Funding Agreements | |||
Guarantees | |||
Illiquid or Restricted Securities | X | X | X |
Inflation-Indexed Bonds | |||
Inflation Risk | |||
Information Concerning the Indexes | |||
Standard & Poor’s 500 Index | |||
Russell Indexes | |||
MSCI Indexes | |||
Initial Public Offering (“IPO”) Risk | X | X | X |
Investment Grade Debt Obligations | X | ||
Investment in Emerging Markets | X | X | X |
Brady Bonds | |||
Investment in Other Investment Companies | X | X | X |
Exchange-Traded Funds | X | X | X |
Junk Bonds | X | X | X |
Lease Obligations | |||
Liquidity Management | X | X | X |
Master Limited Partnerships | |||
Merger Transaction Risk | |||
Mezzanine Investments | X | ||
Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks | X | X | X |
Mortgage-Related Securities | X | ||
Mortgage-Backed Securities | X | ||
Collateralized Mortgage Obligations (“CMOs”) | |||
Adjustable Rate Mortgage Securities | |||
CMO Residuals | |||
Stripped Mortgage-Backed Securities | |||
Tiered Index Bonds | |||
TBA Commitments | |||
Municipal Bonds | |||
General Obligation Bonds | |||
Revenue Bonds | |||
PABs | |||
Participation Notes | X | X | X |
Pay-in-Kind Bonds | |||
Portfolio Turnover Rates | X | X |
International
Fund |
Emerging
Markets Fund |
Latin
America Fund |
|
Preferred Stock | X | X | X |
Real Estate Related Securities | X | X | X |
Real Estate Investment Trusts (“REITS”) | X | X | X |
Repurchase Agreements and Purchase and Sale Contracts | X | X | X |
Reverse Repurchase Agreements | X | X | |
Rights Offerings and Warrants to Purchase | |||
Securities Lending | X | X | X |
Securities of Smaller or Emerging Growth Companies | X | X | X |
Short Sales | X | X | |
Sovereign Debt | X | X | X |
Standby Commitment Agreements | X | X | X |
Stripped Securities | X | ||
Structured Notes | X | X | X |
Supranational Entities | X | ||
Trust Preferred Securities | |||
U.S. Government Obligations | X | ||
U.S. Treasury Obligations | |||
Utility Industries | X | X | X |
Warrants | X | X | X |
When Issued Securities, Delayed Delivery Securities and Forward Commitments | X | X | X |
Yields and Ratings | X | ||
Zero Coupon Securities |
Directors | Experience, Qualifications and Skills | |
Independent Directors | ||
David O. Beim | David O. Beim has served for over 16 years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy Merrill Lynch Investment Managers, L.P. (“MLIM”) funds. Mr. Beim has served as a professor of finance and economics at the Columbia University Graduate School of Business since 1991 and has taught courses on corporate finance, international banking and emerging financial markets. The Board benefits from the perspective and background gained by his almost 20 years of academic experience. He has published numerous articles and books on a range of topics, including, among others, banking and finance. In addition, Mr. Beim spent 25 years in investment banking, including starting and running the investment banking business at Bankers Trust Company. | |
Ronald W. Forbes | Ronald W. Forbes has served for more than 30 years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy MLIM funds. This length of service provides Mr. Forbes with direct knowledge of the operation of the Funds and the business and regulatory issues facing the Funds. He currently serves as professor emeritus at the School of Business at the State University of New York at Albany, and has served as a professor of finance thereof since 1989. Mr. Forbes’ experience as a professor of finance provides valuable background for his service on the Board. Mr. Forbes has also served as a member of the task force on municipal securities markets for the Twentieth Century Fund. | |
Dr. Matina S. Horner | Dr. Matina S. Horner has served for over ten years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy BlackRock funds. The Board benefits from her prior service as Executive Vice President of Teachers Insurance and Annuity Association and College Retirement Equities Fund, which provided Dr. Horner with management and corporate governance experience. In addition, Dr. Horner served as a professor in the Department of Psychology at Harvard University and served as President of Radcliffe College for 17 years. Dr. Horner also served on various public, private and non-profit boards. |
Directors | Experience, Qualifications and Skills | |
Rodney D. Johnson | Rodney D. Johnson has served for over 20 years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy BlackRock funds. He has over 25 years of experience as a financial advisor covering a range of engagements, which has broadened his knowledge of and experience with the investment management business. Prior to founding Fairmount Capital Advisors, Inc., Mr. Johnson served as Chief Financial Officer of Temple University for four years. He served as Director of Finance and Managing Director, in addition to a variety of other roles, for the City of Philadelphia, and has extensive experience in municipal finance. Mr. Johnson was also a tenured associate professor of finance at Temple University and a research economist with the Federal Reserve Bank of Philadelphia. | |
Herbert I. London | Herbert I. London has served for over 20 years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy MLIM funds. Dr. London’s experience as president of the Hudson Institute, an internationally recognized think tank and public policy research organization in Washington D.C., from 1997 to 2011, and in various positions at New York University provide both background and perspective on financial, economic and global issues, which enhance his service on the Board. He has authored several books and numerous articles, which have appeared in major newspapers and journals throughout the United States. | |
Ian A. MacKinnon | Ian A. MacKinnon recently joined as a member of the boards of the funds in the Equity-Liquidity Complex. Mr. MacKinnon spent over 25 years in fixed income investing. He served over 20 years as a portfolio manager at The Vanguard Group and was managing director and head of the Vanguard Fixed Income Group. The Board benefits from the perspective and experience he has gained over 25 years in portfolio management and his expertise in the fixed income markets. Mr. MacKinnon has also served as a board member of the Municipal Securities Rulemaking Board. | |
Cynthia A. Montgomery | Cynthia A. Montgomery has served for over 20 years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy MLIM funds. The Board benefits from Ms. Montgomery’s more than 20 years of academic experience as a professor at Harvard Business School where she taught courses on corporate strategy and corporate governance. Ms. Montgomery also has business management and corporate governance experience through her service on the corporate boards of a variety of public companies. She has also authored numerous articles and books on these topics. | |
Joseph P. Platt | Joseph P. Platt has served for over 15 years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy BlackRock funds. Mr. Platt currently serves as general partner at Thorn Partners, LP, a private investment company. Prior to his joining Thorn Partners, LP, he was an owner, director and executive vice president with Johnson and Higgins, an insurance broker and employee benefits consultant. He has over 25 years’ experience in the areas of insurance, compensation and benefits. Mr. Platt also serves on the boards of public, private and non-profit companies. | |
Robert C. Robb, Jr. | Robert C. Robb, Jr. has served for over 15 years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy BlackRock funds. Mr. Robb has over 30 years of experience in management consulting and has worked with many companies and business associations located throughout the United States. Mr. Robb brings to the Board a wealth of practical business experience across a range of industries. |
Directors | Experience, Qualifications and Skills | |
Toby Rosenblatt | Toby Rosenblatt has served for over 20 years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy BlackRock funds. He has served as president and general partner of Founders Investments, Ltd., a private investment limited partnership, since 1999, providing him with relevant experience with the issues faced by investment management firms and their clients. Mr. Rosenblatt has been active in the civic arena and has served as a trustee of a number of community and educational organizations for over 30 years. | |
Kenneth L. Urish | Kenneth L. Urish has served for over 15 years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy BlackRock funds. He has over 30 years of experience in public accounting. Mr. Urish has served as a managing member of an accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to be an audit committee financial expert, as such term is defined in the applicable Commission rules. | |
Frederick W. Winter | Frederick W. Winter has served for over 15 years on the boards of registered investment companies, most recently as a member of the boards of the funds in the Equity-Liquidity Complex and its predecessor funds, including the legacy BlackRock funds. The Board benefits from Mr. Winter’s years of academic experience, having served as a professor and dean emeritus of the Joseph M. Katz Graduate School of Business at the University of Pittsburgh since 2005, and dean thereof from 1997 to 2005. He is widely regarded as a specialist in marketing strategy, marketing management, business-to-business marketing and services marketing. He has also served as a consultant to more than 50 different firms. | |
Interested Directors | ||
Paul L. Audet | Paul L. Audet has a wealth of experience in the investment management industry, including more than 15 years with BlackRock and over 30 years in finance and asset management. His expertise in finance is demonstrated by his positions as Chief Financial Officer of BlackRock and head of BlackRock’s Global Cash Management business. Mr. Audet currently is a member of BlackRock’s Global Operating and Corporate Risk Management Committees, the BlackRock Alternative Investors Executive Committee and the Investment Committee for the Private Equity Fund of Funds. Prior to joining BlackRock, Mr. Audet was the Senior Vice President of Finance at PNC Bank Corp. and Chief Financial Officer of the investment management and mutual fund processing businesses and head of PNC’s Mergers & Acquisitions unit. | |
Henry Gabbay | Henry Gabbay’s many years of experience in finance provide the Board with a wealth of practical business knowledge and leadership. In particular, Mr. Gabbay’s experience as a Consultant for and Managing Director of BlackRock, Inc., Chief Administrative Officer of BlackRock and President of BlackRock Funds provides the Funds with greater insight into the analysis and evaluation of both their existing investment portfolios and potential future investments as well as enhanced oversight of their investment decisions and investment valuation processes. In addition, Mr. Gabbay’s former positions as Chief Administrative Officer of BlackRock and as Treasurer of certain closed-end funds in the BlackRock Fund Complexes provide the Boards with direct knowledge of the operations of the Funds and their investment adviser. Mr. Gabbay’s previous service on and long-standing relationship with the Boards also provide him with a specific understanding of the Funds, their operations, and the business and regulatory issues facing the Funds. |
Name,
Address
and Year of Birth |
Position(s)
Held with the Corporation/ Funds |
Length
of
Time Served 2 |
Principal
Occupation(s)
During Past Five Years |
Number
of
BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen |
Public
Company and Investment Company Directorships |
|||||
Independent Directors 1 | ||||||||||
David
O. Beim
3
55 East 52nd Street New York, NY 10055 1940 |
Director | 2007 to present | Professor of Professional Practice at the Columbia University Graduate School of Business since 1991; Trustee, Phillips Exeter Academy from 2002 to 2012; Chairman, Wave Hill, Inc. (public garden and cultural center) from 1990 to 2006. | 33 RICs consisting of 155 Portfolios | None | |||||
Ronald
W. Forbes
4
55 East 52nd Street New York, NY 10055 1940 |
Director | 2007 to present (the Corporation); 2000 to present (Latin America Fund and Emerging Markets Fund) | Professor Emeritus of Finance, School of Business, State University of New York at Albany since 2000. | 33 RICs consisting of 155 Portfolios | None | |||||
Dr.
Matina S. Horner
5
55 East 52nd Street New York, NY 10055 1939 |
Director | 2007 to present | Executive Vice President, Teachers Insurance and Annuity Association and College Retirement Equities Fund from 1989 to 2003. | 33 RICs consisting of 155 Portfolios | NSTAR (electric and gas utility) | |||||
Rodney
D. Johnson
4
55 East 52nd Street New York, NY 10055 1941 |
Director | 2007 to present | President, Fairmount Capital Advisors, Inc. from 1987 to 2013; Member of the Archdiocesan Investment Committee of the Archdiocese of Philadelphia from 2004 to 2012; Director, The Committee of Seventy (civic) from 2006 to 2012; Director, Fox Chase Cancer Center from 2004 to 2011. | 33 RICs consisting of 155 Portfolios | None | |||||
Herbert
I. London
55 East 52nd Street New York, NY 10055 1939 |
Director | 2007 to present | Professor Emeritus, New York University since 2005; President, London Center for Policy Research since 2012; John M. Olin Professor of Humanities, New York University from 1993 to 2005 and Professor thereof from 1980 to 2005; President Emeritus, Hudson Institute (policy research organization) from 2011 to 2012, President thereof from 1997 to 2011 and Trustee from 1980 to 2012; Chairman of the Board of Trustees for Grantham University since 2006; Director, InnoCentive, Inc. (global internet service) since 2005; Director, Cerego, LLC (educational software) since 2005; Director, Cybersettle (online adjudication) since 2009; Director, AIMS Worldwide, Inc. (marketing) from 2007 to 2012. | 33 RICs consisting of 155 Portfolios | None |
Name,
Address
and Year of Birth |
Position(s)
Held with the Corporation/ Funds |
Length
of
Time Served 2 |
Principal
Occupation(s)
During Past Five Years |
Number
of
BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen |
Public
Company and Investment Company Directorships |
|||||
Ian
A. MacKinnon
55 East 52nd Street New York, NY 10055 1948 |
Director | 2012 to present | Director, Kennett Capital, Inc. (investments) since 2006; Director, Free Library of Philadelphia from 1998 to 2008. | 33 RICs consisting of 155 Portfolios | None | |||||
Cynthia
A. Montgomery
55 East 52nd Street New York, NY 10055 1952 |
Director | 2007 to present (the Corporation); 2000 to present (Latin America Fund and Emerging Markets Fund) | Professor, Harvard Business School since 1989; Director, McLean Hospital from 2005 to 2012; Director, Harvard Business School Publishing from 2005 to 2010. | 33 RICs consisting of 155 Portfolios | Newell Rubbermaid, Inc. (manufacturing) | |||||
Joseph
P. Platt
6
55 East 52nd Street New York, NY 10055 1947 |
Director | 2007 to present | Director, Jones and Brown (Canadian insurance broker) since 1998; General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Director, The West Penn Allegheny Health System (a not-for-profit health system) from 2008 to 2013; Partner, Amarna Corporation, LLC (private investment company) from 2002 to 2008. | 33 RICs consisting of 155 Portfolios | Greenlight Capital Re, Ltd. (reinsurance company) | |||||
Robert
C. Robb, Jr.
55 East 52nd Street New York, NY 10055 1945 |
Director | 2007 to present | Partner, Lewis, Eckert, Robb and Company (management and financial consulting firm) since 1981. | 33 RICs consisting of 155 Portfolios | None | |||||
Toby
Rosenblatt
55 East 52nd Street New York, NY 10055 1938 |
Director | 2007 to present | President, Founders Investments Ltd. (private investments) since 1999; Director, Forward Management, LLC since 2007; Director, College Access Foundation of California (philanthropic foundation) since 2009; Director, A.P. Pharma, Inc. (specialty pharmaceuticals) from 1983 to 2011; Director, The James Irvine Foundation (philanthropic foundation) from 1998 to 2008. | 33 RICs consisting of 155 Portfolios | None | |||||
Kenneth
L. Urish
7
55 East 52nd Street New York, NY 10055 1951 |
Director | 2007 to present | Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Immediate past-Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001; Principal, UP Strategic Wealth Investment Advisors, LLC since 2013; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007. | 33 RICs consisting of 155 Portfolios | None |
Name,
Address
and Year of Birth |
Position(s)
Held with the Corporation/ Funds |
Length
of
Time Served 2 |
Principal
Occupation(s)
During Past Five Years |
Number
of
BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen |
Public
Company and Investment Company Directorships |
|||||
Frederick
W. Winter
55 East 52nd Street New York, NY 10055 1945 |
Director | 2007 to present | Director, Alkon Corporation (pneumatics) since 1992; Professor and Dean Emeritus of the Joseph M. Katz School of Business, University of Pittsburgh from 2005 to 2013 and Dean thereof from 1997 to 2005; Director, Tippman Sports (recreation) from 2005 to 2013; Director, Indotronix International (IT services) from 2004 to 2008. | 33 RICs consisting of 155 Portfolios | None | |||||
Interested Directors 1,8 | ||||||||||
Paul
L. Audet
55 East 52nd Street New York, NY 10055 1953 |
Director | 2011 to present | Senior Managing Director of BlackRock, Inc. and Head of U.S. Mutual Funds since 2011; Chair of the U.S. Mutual Funds Committee reporting to the Global Executive Committee since 2011; Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005. | 144 RICs consisting of 330 Portfolios | None | |||||
Henry
Gabbay
55 East 52nd Street New York, NY 10055 1947 |
Director | 2007 to present | Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock from 1998 to 2007; President of BlackRock Funds and BlackRock Allocation Target Shares (formerly, BlackRock Bond Allocation Target Shares) from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock Fund Complex from 1989 to 2006. | 144 RICs consisting of 330 Portfolios | None |
1 | Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The Boards of Directors have approved extensions in the terms of Directors who turn 72 prior to December 31, 2013. |
2 | Following the combination of MLIM and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. As a result, although the chart shows certain Independent Directors as joining the Corporation’s /Funds’ Boards in 2007, those Independent Directors first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: David O. Beim, 1998; Ronald W. Forbes, 1977; Dr. Matina S. Horner, 2004; Rodney D. Johnson, 1995; Herbert I. London, 1987; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Robert C. Robb, Jr., 1999; Toby Rosenblatt, 2005; Kenneth L. Urish, 1999; and Frederick W. Winter, 1999. |
3 | Chair of the Performance Oversight Committee. |
4 | Co-Chair of the Board. |
5 | Chair of the Governance Committee. |
6 | Chair of the Compliance Committee. |
7 | Chair of the Audit Committee. |
8 | Mr. Audet is an “interested person,” as defined in the 1940 Act, of the Corporation and the Funds based on his position with BlackRock, Inc. and its affiliates. Mr. Gabbay is an “interested person” of the Corporation and the Funds based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership of BlackRock, Inc. and The PNC Financial Services Group, Inc. securities. |
Name,
Address
and Year of Birth |
Position(s)
Held with the Corporation/ Funds |
Length
of
Time Served 1 |
Principal
Occupation(s)
During Past Five Years |
Number
of
BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen |
Public
Company and Investment Company Directorships |
|||||
John
M. Perlowski
55 East 52nd Street New York, NY 10055 1964 |
President and Chief Executive Officer | 2010 to present | Managing Director of BlackRock, Inc. since 2009; Global Head of BlackRock Fund Administration since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009. | 144 RICs consisting of 330 Portfolios | None | |||||
Brendan
Kyne
55 East 52nd Street New York, NY 10055 1977 |
Vice President | 2009 to present | Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008. | 144 RICs consisting of 330 Portfolios | None | |||||
Neal
J. Andrews
55 East 52nd Street New York, NY 10055 1966 |
Chief Financial Officer and Assistant Treasurer | 2007 to present | Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006. | 144 RICs consisting of 330 Portfolios | None | |||||
Jay
M. Fife
55 East 52nd Street New York, NY 10055 1970 |
Treasurer | 2007 to present | Managing Director of BlackRock, Inc. since 2007; Director of BlackRock, Inc. in 2006; Assistant Treasurer of MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006. | 144 RICs consisting of 330 Portfolios | None | |||||
Brian
P. Kindelan
55 East 52nd Street New York, NY 10055 1959 |
Chief Compliance Officer and Anti-Money Laundering Officer | 2007 to present | Chief Compliance Officer of the BlackRock-advised Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005. | 144 RICs consisting of 330 Portfolios | None | |||||
Benjamin
Archibald
55 East 52nd Street New York, NY 10055 1975 |
Secretary | 2012 to present | Managing Director of BlackRock, Inc. since 2014; Director of BlackRock, Inc. from 2010 to 2013; Assistant Secretary of the Corporation/Funds from 2010 to 2012; General Counsel and Chief Operating Officer of Uhuru Capital Management from 2009 to 2010; Executive Director and Counsel of Goldman Sachs Asset Management from 2005 to 2009. | 62 RICs consisting of 248 Portfolios | None |
1 | Officers of the Corporation and the Funds serve at the pleasure of the respective Board. |
Aggregate Dollar Range of Equity Securities in | ||||||||
Name of Director |
International
Fund |
Emerging
Markets Fund |
Latin
America
Fund |
Supervised Funds | ||||
Interested Directors: | ||||||||
Paul L. Audet
|
None | None | None | Over $100,000 | ||||
Henry Gabbay
|
None | None | None | $50,001-$100,000 | ||||
Independent Directors: | ||||||||
David O. Beim
|
None | None | None | Over $100,000 | ||||
Ronald W. Forbes
|
None | $1–$10,000 | $10,001–$50,000 | Over $100,000 | ||||
Dr. Matina S. Horner
|
None | None | None | Over $100,000 | ||||
Rodney D. Johnson.
|
None | None | None | Over $100,000 | ||||
Herbert I. London
|
None | None | None | $50,001–$100,000 | ||||
Ian A. MacKinnon
|
None | None | None | Over $100,000 | ||||
Cynthia A Montgomery
|
None | None | None | Over $100,000 | ||||
Joseph P. Platt
|
None | None | None | Over $100,000 | ||||
Robert C. Robb, Jr.
|
None | None | None | Over $100,000 | ||||
Toby Rosenblatt
|
None | None | None | Over $100,000 | ||||
Kenneth L. Urish
|
None | None | None | Over $100,000 | ||||
Frederick W. Winter
|
None | None | None | Over $100,000 |
Name |
Compensation
from Master International Portfolio |
Compensation
from Emerging Markets Fund |
Compensation
from Latin America Fund |
Estimated
Annual Benefits Upon Retirement |
Aggregate
Compensation from the Corporation, the Funds and Other RICs and Portfolios Overseen 1 |
|||||
Independent Directors | ||||||||||
David O.
Beim
2
|
$1,969 | $1,037 | $1,418 | None | $340,000 | |||||
Ronald W.
Forbes
3
|
$2,256 | $1,172 | $1,616 | None | $388,750 | |||||
Dr. Matina S.
Horner
4
|
$1,969 | $1,037 | $1,418 | None | $340,000 | |||||
Rodney D.
Johnson
3
|
$2,256 | $1,172 | $1,616 | None | $388,750 | |||||
Herbert I. London
|
$1,805 | $935 | $1,290 | None | $315,000 | |||||
Ian A. MacKinnon
|
$1,852 | $982 | $1,337 | None | $320,000 | |||||
Cynthia A. Montgomery
|
$1,852 | $982 | $1,337 | None | $320,000 | |||||
Joseph P.
Platt
5
|
$2,052 | $1,056 | $1,466 | None | $356,250 | |||||
Robert C. Robb, Jr
|
$1,852 | $982 | $1,337 | None | $320,000 | |||||
Toby Rosenblatt
|
$1,872 | $984 | $1,349 | None | $321,250 | |||||
Kenneth L.
Urish
6
|
$1,969 | $1,037 | $1,923 | None | $347,500 | |||||
Frederick W. Winter
|
$1,852 | $982 | $1,337 | None | $320,000 | |||||
Interested Directors | ||||||||||
Paul L. Audet
|
None | None | None | None | None | |||||
Henry Gabbay
|
$1,337 | $826 | $867 | None | $661,563 |
1 | For the number of BlackRock-advised Funds from which each Director receives compensation, see the Biographical Information chart beginning on page I-16. |
2 | Chair of the Performance Oversight Committee. |
3 | Co-Chair of the Board. |
4 | Chair of the Governance Committee. |
5 | Chair of the Compliance Committee. |
6 | Chair of the Audit Committee. |
Average Daily Net Assets |
Rate
of
Management Fee |
|
Not exceeding $1 billion
|
1.00% | |
In excess of $1 billion but not more than $3
billion
|
0.94% | |
In excess of $3 billion but not more than $5
billion
|
0.90% |
Average Daily Net Assets |
Rate
of
Management Fee |
|
In excess of $5 billion but not more than $10
billion
|
0.87% | |
In excess of $10 billion
|
0.85% |
Fiscal Year Ended October 31, |
Paid
to the
Manager |
Waived
by the
Manager 1 |
Reimbursed
by the Manager 1 |
|||
2013
|
$5,683,266 | $10,627 | $ 0 | |||
2012
|
$5,555,753 | $26,625 | $1,111,962 | |||
2011
|
$1,826,086 | $ 8,406 | $ 191,028 2 |
1 | The Manager may waive a portion of the Master International Portfolio’s management fee in connection with the Master International Portfolio’s investment in an affiliated money market fund. |
2 | For the period August 15, 2011 (the effective date of the waiver agreement) to October 31, 2011. |
Fiscal Year Ended October 31, |
Paid
to the
Manager |
Waived
by the
Manager 1 |
||
2013
|
$4,392,882 | $8,140 | ||
2012
|
$3,923,503 | $9,948 | ||
2011
|
$3,048,643 | $7,736 |
1 | The Manager may waive a portion of the Fund’s management fee in connection with the Fund’s investment in an affiliated money market fund. |
Fiscal Year Ended October 31 |
Paid
to the
Manager |
Waived
by the
Manager 1 |
||
2013
|
$5,030,326 | $2,562 | ||
2012
|
$6,635,510 | $3,354 | ||
2011
|
$9,582,102 | $3,391 |
1 | The Manager may waive a portion of the Fund’s management fee in connection with the Fund’s investment in an affiliated money market fund. |
Fiscal Year Ended October 31, | Paid to BIL | |
2013
|
$4,195,702 | |
2012
|
$4,770,153 | |
2011
|
$1,336,478 |
Fiscal Year Ended October 31, |
Paid
to the
Subadvisers |
|
2013
|
$3,242,934 | |
2012
|
$2,899,252 | |
2011
|
$2,240,092 |
Fiscal Year Ended October 31, |
Paid
to the
Subadvisers |
|
2013
|
$3,718,211 | |
2012
|
$4,918,976 | |
2011
|
$7,037,828 |
Fiscal Year Ended October 31 |
Paid
to the
Administrator |
Waived
by the
Administrator 1 |
Reimbursed
by
the Administrator 1 |
|||
2013
|
$1,938,791 | $ 378,313 | $1,050,386 | |||
2012
|
$1,893,017 | $1,060,162 | $1,111,962 | |||
2011
|
$ 619,750 | $ 189,510 2 | $ 191,028 2 |
1 | In connection with the Fund’s reorganization with an affiliated fund, the Administrator contractually agreed to waive and/or reimburse fees and/or expenses of the Fund in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) as a percentage of average daily net assets to 1.38% (for Investor A Shares), 2.44% (for Investor B Shares), 2.42% (for Investor C Shares), 1.00% (for Institutional Shares) and 1.70% (for Class R Shares) until March 1, 2015. The agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors of the Corporation or by a vote of a majority of the outstanding voting securities of International Fund. |
2 | For the period August 15, 2011 (the effective date of the waiver agreement) to October 31, 2011. |
Fiscal Year Ended October 31, | Paid to BlackRock | |
2013
|
$12,358 | |
2012
|
$12,452 |
Fiscal Year Ended October 31, | Paid to BlackRock | |
2011
|
$ 1,572 |
Fiscal Year Ended October 31, | Paid to BlackRock | |
2013
|
$20,474 | |
2012
|
$ 9,188 | |
2011
|
$ 7,367 |
Fiscal Year Ended October 31, | Paid to BlackRock | |
2013
|
$33,681 | |
2012
|
$38,159 | |
2011
|
$70,060 |
Fiscal Year Ended October 31, |
Paid
to
BNY Mellon 1 |
Paid
to
State Street 1 |
Paid
to the
Manager |
|||
2013
|
180,570 2 | $ 606 3 | $7,926 | |||
2012
|
N/A | $214,952 | $8,337 | |||
2011
|
N/A | $ 68,319 | $2,548 |
1 | For providing services to Master International Portfolio and each feeder fund that invests its assets in the Master International Portfolio. |
2 | For the period November 5, 2012 through October 31, 2013. |
3 | For the period November 1, 2012 through November 4, 2012. |
Fiscal Year Ended October 31, |
Paid
to
State Street |
Paid
to the
Manager |
||
2013
|
$ 98,372 | $4,731 | ||
2012
|
$125,526 | $4,038 |
Fiscal Year Ended October 31, |
Paid
to
State Street |
Paid
to the
Manager |
||
2011
|
$ 73,435 | $3,540 |
Fiscal Year Ended October 31, |
Paid
to
State Street |
Paid
to the
Manager |
||
2013
|
$125,654 | $ 5,376 | ||
2012
|
$164,894 | $ 6,423 | ||
2011
|
$290,724 | $13,355 |
Number
of Other Accounts Managed
and Assets by Account Type |
Number
of Other Accounts and Assets for
Which Advisory Fee is Performance-Based |
|||||
Name of Portfolio Manager |
Other
Registered Investment Companies |
Other
Pooled
Investment Vehicles |
Other
Accounts |
Other
Registered Investment Companies |
Other
Pooled
Investment Vehicles |
Other
Accounts |
William Landers, CFA | 0 | 4 | 3 | 0 | 0 | 0 |
$0 | $3.7 Billion | $456.6 Million | $0 | $0 | $0 |
Portfolio Manager(s) | Funds Managed | Applicable Benchmarks | ||
James Bristow, CFA | International Fund |
MSCI
World
MSCI World ex-Greece MSCI World ex-Portugal MSCI World ex-Japan MSCI AC World ex-Australia MSCI AC World Info Tech MSCI ACWI MSCI ACWI ex-U.S. |
||
William Landers, CFA | Latin America Fund |
Lipper
Latin America Fund classification
Morningstar Latin America Equity |
||
Dhiren
Shah, CFA
Luiz Soares |
Emerging Markets Fund |
Morningstar
Europe OE Global
Emerging Markets and eVest Emerging Markets All Equity |
||
Gareth Williams, CFA | International Fund |
MSCI ACWI ex-U.S. |
Portfolio Manager | Fund Managed |
Dollar
Range of
Equity Securities Beneficially Owned |
||
James Bristow, CFA
|
International Fund | $500,001-$1,000,000 | ||
Gareth Williams, CFA
|
International Fund | $10,001-$50,000 | ||
Dhiren Shah, CFA
|
Emerging Markets Fund | None | ||
Luiz Soares
|
Emerging Markets Fund | None | ||
William Landers, CFA
|
Latin America Fund | Over $1 Million |
Investor A Shares | ||||||||
Fiscal Year Ended October 31, |
Gross
Sales
Charges Collected |
Sales
Charges
Retained by BRIL |
Sales
Charges
Paid to Affiliates |
CDSCs
Received on Redemption of Load-Waived Shares |
||||
2013
|
$711,750 | $53,721 | $53,721 | $3,504 | ||||
2012
|
$385,618 | $28,590 | $28,590 | $ 296 | ||||
2011
|
$233,480 | $17,476 | $17,656 | $ 11 |
Investor B Shares 1 | ||||
Fiscal Year Ended October 31, |
CDSCs
Received by BRIL |
CDSCs
Paid to Affiliates |
||
2013
|
$ 367 | $ 367 | ||
2012
|
$1,875 | $1,875 | ||
2011
|
$1,315 | $1,315 |
Investor C Shares | ||||
Fiscal Year Ended October 31, |
CDSCs
Received by BRIL |
CDSCs
Paid to Affiliates |
||
2013
|
$10,697 | $10,697 | ||
2012
|
$ 9,952 | $ 9,952 | ||
2011
|
$ 4,154 | $ 4,154 |
1 | Additional Investor B CDSCs payable to the Distributor may have been waived or converted to a contingent obligation in connection with a shareholder’s participation in certain fee-based programs. |
Investor A Shares | ||||||||
Fiscal Year Ended October 31, |
Gross
Sales
Charges Collected |
Sales
Charges
Retained by BRIL |
Sales
Charges
Paid to Affiliates |
CDSCs
Received
on Redemption of Load-Waived Shares |
||||
2013
|
$853,707 | $63,581 | $63,581 | $10,180 | ||||
2012
|
$506,062 | $37,629 | $37,629 | $ 1,927 | ||||
2011
|
$423,866 | $31,621 | $33,179 | $ 2,384 |
Investor B Shares 1 | ||||
Fiscal Year Ended October 31, |
CDSCs
Received by BRIL |
CDSCs
Paid to Affiliates |
||
2013
|
$1,008 | $1.008 | ||
2012
|
$2,956 | $2,956 | ||
2011
|
$3,882 | $3,882 |
Investor C Shares | ||||
Fiscal Year Ended October 31, |
CDSCs
Received by BRIL |
CDSCs
Paid to Affiliates |
||
2013
|
$12,359 | $12,359 | ||
2012
|
$27,718 | $27,718 | ||
2011
|
$11,042 | $11,042 |
1 | Additional Investor B CDSCs payable to the Distributor may have been waived or converted to a contingent obligation in connection with a shareholder’s participation in certain fee-based programs. |
Investor A Shares | ||||||||
Fiscal Year Ended October 31, |
Gross
Sales
Charges Collected |
Sales
Charges
Retained by BRIL |
Sales
Charges
Paid to Affiliates |
CDSCs
Received on Redemption of Load-Waived Shares |
||||
2013
|
$ 249,114 | $18,991 | $18,991 | $ 1,887 | ||||
2012
|
$ 474,820 | $37,185 | $37,485 | $ 4,073 | ||||
2011
|
$1,408,698 | $93,519 | $98,308 | $11,291 |
Investor B Shares 1 | ||||
Fiscal Year Ended October 31, |
CDSCs
Received by BRIL |
CDSCs
Paid to Affiliates |
||
2013
|
$12,104 | $12,104 | ||
2012
|
$28,190 | $28,190 | ||
2011
|
$44,274 | $44,274 |
Investor C Shares | ||||
Fiscal Year Ended October 31, |
CDSCs
Received by BRIL |
CDSCs
Paid to Affiliates |
||
2013
|
$ 7,461 | $ 7.461 | ||
2012
|
$23,445 | $23,445 | ||
2011
|
$72,166 | $72,166 |
1 | Additional Investor B CDSCs payable to the Distributor may have been waived or converted to a contingent obligation in connection with a shareholder’s participation in certain fee-based programs. |
Paid to BRIL | ||||||
Class Name |
International
Fund |
Emerging
Markets Fund |
Latin
America
Fund |
|||
Investor A Shares
|
$ 616,541 | $ 484,949 | $704,503 | |||
Investor B Shares
|
$ 77,118 | $ 18,056 | $ 67,058 | |||
Investor C Shares
|
$1,431,892 | $1,079,560 | $942,137 | |||
Class R Shares.
|
$ 136,844 | N/A | N/A |
International
Fund |
Emerging
Markets Fund |
Latin
America
Fund |
|||
Net Assets
|
$280,122,862 | $215,490,360 | $236,204,908 | ||
Number of Shares
Outstanding
|
18,467,305 | 11,116,759 | 4,278,259 | ||
Net Asset Value Per Share (net assets divided by
number of shares
outstanding)
|
$15.17 | $19.38 | $55.21 | ||
Sales Charge (for Investor A shares:
5.25% of offering price;
5.54% of net asset value per
share)
1
|
0.84 | 1.07 | 3.06 |
International
Fund |
Emerging
Markets Fund |
Latin
America
Fund |
|||
Offering Price
|
$16.01 | $20.45 | $58.27 |
1 | Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable. |
Fiscal Year Ended October 31, |
Aggregate
Brokerage
Commissions Paid |
Commissions
Paid
to Affiliates |
||
2013
|
$2,233,532 | $0 | ||
2012
|
$2,137,692 | $0 | ||
2011
|
$ 801,507 | $0 |
Fiscal Year Ended October 31, |
Aggregate
Brokerage
Commissions |
Commissions
Paid
to Affiliates |
||
2013
|
$1,305,570 | $0 | ||
2012
|
$1,686,487 | $0 | ||
2011
|
$1,045,865 | $0 |
Fiscal Year Ended October 31, |
Aggregate
Brokerage
Commissions |
Commissions
Paid
to Affiliates |
||
2013
|
$1,237,459 | $0 | ||
2012
|
$1,107,239 | $0 | ||
2011
|
$ 533,642 | $0 |
Fund |
Amount
of Commissions
Paid to Brokers for Providing 28(e) Eligible Research Services |
Amount
of Brokerage
Transactions Involved |
||
Master International
Portfolio
|
$1,059,500 | $806,689,678 | ||
Emerging Markets Fund
|
$1,132,204 | $650,396,993 | ||
Latin America Fund
|
$1,189,288 | $655,417,080 |
Fiscal Year Ended October 31, | Paid to BIM | |
2013
|
$4,949 | |
2012
|
$ 0 | |
2011
|
$ 0 |
Fiscal Year Ended October 31, | Paid to BIM | |
2013
|
$1,858 | |
2012
|
$ 0 |
Fiscal Year Ended October 31, | Paid to BIM | |
2011
|
$ 0 |
Fiscal Year Ended October 31, | Paid to BIM | |
2013
|
$22,002 | |
2012
|
$ 739 | |
2011
|
$14,229 |
Regular Broker-Dealer | Debt (D) / Equity (E) |
Aggregate
Holdings
(000’s) |
||
Credit Suisse Securities (USA)
LLC
|
E | $27,608 | ||
HBSC Securities (USA)
Inc.
|
E | $18,056 |
Regular Broker-Dealer | Debt (D) / Equity (E) |
Aggregate
Holdings
(000’s) |
||
Bank of America
|
D | $7,709 | ||
Morgan Stanley & Co,
Inc.
|
D | $7,605 |
Name | Address | % | Class | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
87.99% | Investor A Shares | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
86.47% | Investor B Shares | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
92.35% | Investor C Shares | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
40.06% | Institutional Shares | |||
*BlackRock
Advisors LLC
Growth Portfolio Option |
100
Bellevue Parkway
Wilmington, DE 19809 |
11.73% | Institutional Shares | |||
*Charles Schwab & Co Inc. |
101
Montgomery St.
San Francisco, CA 94104 |
6.83% | Institutional Shares | |||
*BlackRock
Advisors LLC
Aggressive Growth Portfolio Option |
100
Bellevue Parkway
Wilmington, DE 19809 |
5.10% | Institutional Shares | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
89.20% | Class R Shares |
* | Record holder that does not beneficially own the shares. |
Name | Address | % | Class | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
68.49% | Investor A Shares | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
57.89% | Investor B Shares | |||
*Morgan Stanley & Co. |
Harborside
Financial Center
Jersey City, NJ 07311 |
7.91% | Investor B Shares | |||
*Pershing LLC |
1
Pershing Plaza
Jersey City, NJ 07399 |
6.43% | Investor B Shares | |||
*First Clearing, LLC |
2801
Market Street
St. Louis, MO 63103 |
6.01% | Investor B Shares | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
85.27% | Investor C Shares | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
23.67% | Institutional Shares | |||
*BlackRock
Funds LLC
LifePath Master 2030 Portfolio |
400
Howard Street
San Francisco, CA 94105-2618 |
19.48% | Institutional Shares | |||
*BlackRock
Funds LLC
LifePath Master 2040 Portfolio |
400
Howard Street
San Francisco, CA 94105-2618 |
18.11% | Institutional Shares | |||
*BlackRock
Funds LLC
LifePath Master 2020 Portfolio |
400
Howard Street
San Francisco, CA 94105-2618 |
15.78% | Institutional Shares | |||
*BlackRock
Funds LLC
LifePath Master Retirement Portfolio |
400
Howard Street
San Francisco, CA 94105-2618 |
6.07% | Institutional Shares |
* | Record holder that does not beneficially own the shares. |
Name | Address | % | Class | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
42.74% | Investor A Shares | |||
*Pershing LLC |
1
Pershing Plaza
Jersey City, NJ 07399 |
7.52% | Investor A Shares | |||
*NFS LLC FEBO |
499
Washington Blvd
Jersey City, NJ 07399 |
6.74% | Investor A Shares | |||
*UBS WM USA |
499
Washington Blvd 9th Floor
Jersey City, NJ 07310 |
5.48% | Investor A Shares | |||
*Pershing LLC |
1
Pershing Plaza
Jersey City, NJ 07399 |
20.58% | Investor B Shares | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
20.31% | Investor B Shares | |||
*NFS LLC FEBO |
499
Washington Blvd
Jersey City, NJ 07399 |
14.59% | Investor B Shares |
Name | Address | % | Class | |||
*First Clearing, LLC |
2801
Market Street
St. Louis, MO 63103 |
9.94% | Investor B Shares | |||
*Morgan Stanley & Co. |
Harborside
Financial Center
Jersey City, NJ 07311 |
6.03% | Investor B Shares | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
39.83% | Investor C Shares | |||
*Morgan Stanley & Co. |
Harborside
Financial Center
Jersey City, NJ 07311 |
10.46% | Investor C Shares | |||
*Pershing LLC |
1
Pershing Plaza
Jersey City, NJ 07399 |
8.03% | Investor C Shares | |||
*NFS LLC FEBO |
499
Washington Blvd
Jersey City, NJ 07399 |
7.87% | Investor C Shares | |||
*First Clearing, LLC |
2801
Market Street
St. Louis, MO 63103 |
7.43% | Investor C Shares | |||
*Merrill Lynch, Pierce, Fenner & Smith Incorporated |
4800
Deer Lake Drive East
Jacksonville, FL 32246 |
37.26% | Institutional Shares | |||
*First Clearing, LLC |
2801
Market Street
St. Louis, MO 63103 |
16.54% | Institutional Shares | |||
*NFS LLC FEBO |
499
Washington Blvd
Jersey City, NJ 07399 |
14.96% | Institutional Shares | |||
*Morgan Stanley & Co. |
Harborside
Financial Center
Jersey City, NJ 07311 |
6.62% | Institutional Shares | |||
*Charles Schwab & Co Inc. |
101
Montgomery St.
San Francisco, CA 94104 |
6.25% | Institutional Shares | |||
* | Record holder that does not beneficially own the shares. |
• | Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their interest or principal payment obligations because of an economic downturn, specific issuer developments or the unavailability of additional financing. |
• | The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations. The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their development and/or involved in a reorganization or takeover. |
• | Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in high yield securities have a lower degree of protection with respect to principal and interest payments then do investors in higher rated securities. |
• | Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with lower yields and may lose income. |
• | Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities. |
• | Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions. Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less liquid, judgment may play a greater role in valuing certain of a Fund’s portfolio securities than in the case of securities trading in a more liquid market. |
• | The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated securities. The secondary markets for high yield securities are concentrated in relatively few market makers and participants in the markets are mostly institutional investors, including insurance companies, banks, other financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower than that for higher rated securities and the secondary markets could contract under adverse market or economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely affect the market price of the high yield security, which may result in increased difficulty selling the particular issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations on high yield securities are available only from a limited number of dealers, and such quotations may not be the actual prices available for a purchase or sale. When the secondary market for high yield securities becomes more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important role in determining such valuations. |
• | A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer. |
• | The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high yield securities may be affected by legislative and regulatory developments. These developments could adversely affect a Fund’s net asset value and investment practices, the secondary market for high yield securities, the financial condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain corporate issuers of high yield bonds adversely affected the market in the past. |
• | The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non-investment grade security’s principal and interest payments, but does not address market value risk. Because such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using recognized rating agencies and other sources, the sub-adviser performs its own analysis of the issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may depend more on the sub-adviser’s own credit analysis than in the case of mutual funds investing in higher-rated securities. |
(a) | U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings institutions with total assets in excess of $1 billion (including assets of domestic and foreign branches of such banks); |
(b) | high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating agencies; |
(c) | unrated notes, paper and other instruments that are of comparable quality to the instruments described in (b) above as determined by the Fund’s Manager; |
(d) | asset-backed securities (including interests in pools of assets such as mortgages, installment purchase obligations and credit card receivables); |
(e) | securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or authorities and related custodial receipts; |
(f) | dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions, agencies or authorities; |
(g) | funding agreements issued by highly-rated U.S. insurance companies; |
(h) | securities issued or guaranteed by state or local governmental bodies; |
(i) | repurchase agreements relating to the above instruments; |
(j) | municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or one of its agencies or instrumentalities or which otherwise depend directly or indirectly on the credit of the United States; |
(k) | fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s, SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch; |
(l) | tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by S&P, or F-2 or higher by Fitch; |
(m) | municipal bonds rated A or higher by Moody’s, S&P or Fitch; |
(n) | unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as determined by the Fund’s Manager under guidelines established by the Board; and |
(o) | municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United States. |
1. | Month-end portfolio characteristics are available to shareholders, prospective shareholders, intermediaries and consultants on the fifth calendar day after month-end. 1 |
2. | Fund Fact Sheets, which contain certain portfolio characteristics, are available, in both hard copy and electronically, to shareholders, prospective shareholders, intermediaries and consultants on a monthly or quarterly basis no earlier than the fifth calendar day after the end of a month or quarter. |
3. | Money Market Performance Reports, which contain money market fund performance for the recent month, rolling 12-month average yields and benchmark performance, are available on a monthly basis to shareholders, prospective shareholders, intermediaries and consultants by the tenth calendar day of the month. This information may also be obtained electronically upon request. |
• | Generally, month-end portfolio holdings may be made available to fund shareholders, prospective shareholders, intermediaries, consultants and third party data providers ( e.g. , Lipper, Morningstar and Bloomberg) on the 20th calendar day after the end of each month, except for BlackRock Global Allocation Fund, Inc., BlackRock Long-Horizon Equity Fund, Global Allocation Portfolio of BlackRock Series Fund, Inc. and BlackRock Global Allocation V.I. Fund of BlackRock Variable Series Funds, Inc., whose holdings may be made available on the 40th calendar day after the end of the quarter (based on each Fund’s fiscal year end). 1 |
• | Weekly portfolio holdings made available to fund shareholders, prospective shareholders, intermediaries and consultants on the next business day after the end of the weekly period. |
• | Weekly portfolio holdings and characteristics made available to third-party data providers ( e.g. , Lipper, Morningstar, Bloomberg, S&P, Fitch, Moody’s, Crane Data and iMoneyNet, Inc.) on the next business day after the end of the weekly period. |
1 | The precise number of days specified above may vary slightly from period to period depending on whether the specified calendar day falls on a weekend or holiday. |
1. | Fund’s Board of Directors and, if necessary, Independent Directors’ counsel and Fund counsel. |
2. | Fund’s Transfer Agent |
3. | Fund’s Custodian |
4. | Fund’s Administrator, if applicable. |
5. | Fund’s independent registered public accounting firm. |
6. | Fund’s accounting services provider |
7. | Independent rating agencies — Morningstar, Inc., Lipper Inc., S&P, Moody’s, Fitch |
8. | Information aggregators — Markit on Demand, Thomson Financial and Bloomberg, eVestments Alliance, Informa/PSN Investment Solutions, Crane Data, and iMoneyNet. |
9. | Sponsors of 401(k) plans that include BlackRock-advised funds — E.I. Dupont de Nemours and Company, Inc. |
10. | Consultants for pension plans that invest in BlackRock-advised funds — Rocaton Investment Advisors, LLC, Mercer Investment Consulting, Callan Associates, Brockhouse & Cooper, Cambridge Associates, Morningstar/Investorforce, Russell Investments (Mellon Analytical Solutions) and Wilshire Associates. |
11. | Pricing Vendors — Reuters Pricing Service, Bloomberg, FT Interactive Data (FT IDC), ITG, Telekurs Financial, FactSet Research Systems, Inc., JP Morgan Pricing Direct (formerly Bear Stearns Pricing Service), Standard and Poor’s Security Evaluations Service, Lehman Index Pricing, Bank of America High Yield Index, Loan Pricing Corporation (LPC), LoanX, Super Derivatives, IBOXX Index, Barclays Euro Gov’t Inflation-Linked Bond Index, JPMorgan Emerging & Developed Market Index, Reuters/WM Company, Nomura BPI Index, Japan Securities Dealers Association, Valuation Research Corporation and Murray, Devine & Co., Inc. |
12. | Portfolio Compliance Consultants — Oracle/i-Flex Solutions, Inc. |
13. | Third-party feeder funds — Hewitt Money Market Fund, Hewitt Series Fund, Hewitt Financial Services LLC, Homestead, Inc., Transamerica, State Farm Mutual Fund and Sterling Capital Funds and their respective boards, sponsors, administrators and other service providers. |
14. | Affiliated feeder funds — BlackRock Cayman Prime Money Market Fund, Ltd. and BlackRock Cayman Treasury Money Market Fund Ltd., and their respective boards, sponsors, administrators and other service providers. |
15. | Other — Investment Company Institute. |
All
Funds Except
Balanced Capital and Basic Value |
Balanced Capital and Basic Value | ||
Less than $3,000,000
|
1.00% | 0.75% | |
$3 million but less than $15
million
|
0.50% | 0.50% | |
$15 million and above
|
0.25% | 0.25% |
Years
Since Purchase
Payment Made |
CDSC
as a Percentage
of Dollar Amount Subject to Charge* |
|
0 – 1
|
4.50% | |
1 – 2
|
4.00% | |
2 – 3
|
3.50% | |
3 – 4
|
3.00% | |
4 – 5
|
2.00% | |
5 – 6
|
1.00% | |
6 and thereafter
|
None |
* | The percentage charge will apply to the lesser of the original cost of the shares being redeemed or the proceeds of your redemption. Shares acquired through reinvestment of dividends are not subject to a deferred sales charge. Not all BlackRock funds have identical deferred sales charge schedules. If you exchange your shares for shares of another fund, the original charge will apply. |
Aaa | Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. |
Aa | Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. |
A | Obligations rated A are judged to be upper-medium grade and are subject to low credit risk. |
Baa | Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics. |
Ba | Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. |
B | Obligations rated B are considered speculative and are subject to high credit risk. |
Caa | Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk. |
Ca | Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. |
C | Obligations rated C are the lowest rated class and are typically in default, with little prospect for recovery of principal or interest. |
P-1 | Issuers (or supporting institutions) rated Prime-1 have a superior ability to repay short-term debt obligations. |
P-2 | Issuers (or supporting institutions) rated Prime-2 have a strong ability to repay short-term debt obligations. |
P-3 | Issuers (or supporting institutions) rated Prime-3 have an acceptable ability to repay short-term obligations. |
NP | Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating categories. |
MIG 1 | This designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing. |
MIG 2 | This designation denotes strong credit quality. Margins of protection are ample, although not as large as in the preceding group. |
MIG 3 | This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established. |
SG | This designation denotes speculative-grade credit quality. Debt instruments in this category may lack sufficient margins of protection. |
VMIG 1 | This designation denotes superior credit quality. Excellent protection is afforded by the superior short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand. |
VMIG 2 | This designation denotes strong credit quality. Good protection is afforded by the strong short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand. |
VMIG 3 | This designation denotes acceptable credit quality. Adequate protection is afforded by the satisfactory short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand. |
SG | This designation denotes speculative-grade credit quality. Demand features rated in this category may be supported by a liquidity provider that does not have an investment grade short-term rating or may lack the structural and/or legal protections necessary to ensure the timely payment of purchase price upon demand. |
• | Likelihood of payment — capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation; |
• | Nature of and provisions of the obligation and the promise we impute; |
• | Protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights. |
AAA | An obligation rated ‘AAA’ has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. |
AA | An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong. |
A | An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitment on the obligation is still strong. |
BBB | An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. |
BB
B CCC CC C |
Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions. |
BB | An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions, which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. |
B | An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitment on the obligation. |
CCC | An obligation rated ‘CCC’ is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. |
CC | An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ’CC’ rating is used when a default has not yet occurred, but Standard & Poor’s expects default to be a virtual certainty, regardless of the anticipated time to default. |
C | An obligation rated ’C’ is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared to obligations that are rated higher. |
D | An obligation rated ’D’ is in default or in breach of an imputed promise. For non-hybrid capital instruments, the ’D’ rating category is used when payments on an obligation are not made on the date due, unless Standard & Poor’s believes that such payments will be made within five business days in the absence of a stated grace period or within the earlier of the stated grace period or 30 calendar days. The ’D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. An obligation’s rating is lowered to ’D’ if it is subject to a distressed exchange offer. |
* | The ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the major rating categories. |
NR | This indicates that no rating has been requested, or that there is insufficient information on which to base a rating, or that Standard & Poor’s does not rate a particular obligation as a matter of policy. |
A-1 | A short-term obligation rated ‘A-1’ is rated in the highest category by Standard & Poor’s. The obligor’s capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial commitment on these obligations is extremely strong. |
A-2 | A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor’s capacity to meet its financial commitment on the obligation is satisfactory. |
A-3 | A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. |
B | A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative characteristics. The obligor currently has the capacity to meet its financial commitments; however, it faces major ongoing uncertainties which could lead to the obligor’s inadequate capacity to meet its financial commitments. |
C | A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. |
D | A short-term obligation rated ’D’ is in default or in breach of an imputed promise. For non-hybrid capital instruments, the ’D’ rating category is used when payments on an obligation are not made on the date due, unless Standard & Poor’s believes that such payments will be made within any stated grace period. However, any stated grace period longer than five business days will be treated as five business days. The ’D’ rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. An obligation’s rating is lowered to ’D’ if it is subject to a distressed exchange offer. |
• | Amortization schedule — the larger the final maturity relative to other maturities, the more likely it will be treated as a note; and |
• | Source of payment — the more dependent the issue is on the market for its refinancing, the more likely it will be treated as a note. |
Standard & Poor’s municipal short-term note rating symbols are as follows: |
SP-1 | Strong capacity to pay principal and interest. An issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation. |
SP-2 | Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the term of the notes. |
SP-3 | Speculative capacity to pay principal and interest. |
AAA | Highest credit quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. |
AA | Very high credit quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. |
A | High credit quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings. |
BBB | Good credit quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity. |
BB | Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial alternatives may be available to allow financial commitments to be met. |
B | Highly speculative. ‘B’ ratings indicate that material credit risk is present. |
CCC | ‘CCC’ ratings indicate that substantial credit risk is present. |
CC | ‘CC’ ratings indicate very high levels of credit risk. |
C | ‘C’ ratings indicate exceptionally high levels of credit risk. |
F1 | Highest short-term credit quality. Indicates the strongest intrinsic capacity for timely payment of financial commitments; may have an added “+” to denote any exceptionally strong credit feature. |
F2 | Good short-term credit quality. Good intrinsic capacity for timely payment of financial commitments. |
F3 | Fair short-term credit quality. The intrinsic capacity for timely payment of financial commitments is adequate. |
B | Speculative short-term credit quality. Minimal capacity for timely payment of financial commitments, plus heightened vulnerability to near term adverse changes in financial and economic conditions. |
C | High short-term default risk. Default is a real possibility. |
RD | Restricted default. Indicates an entity that has defaulted on one or more of its financial commitments, although it continues to meet other financial obligations. Typically applicable to entity ratings only. |
D | Default. Indicates a broad-based default event for an entity, or the default of a short-term obligation. |
1 Year Western Asset Inflation Management Fund Chart |
1 Month Western Asset Inflation Management Fund Chart |
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