-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LcCx4YGk8DujcgOpBpV0rYPUrByDqzVlBxmgGdq78pa98WqTZGdWS2dp0vr717uJ S6BQawWiZxZrNVf3LnpxXw== 0000930413-07-009733.txt : 20071231 0000930413-07-009733.hdr.sgml : 20071231 20071231091702 ACCESSION NUMBER: 0000930413-07-009733 CONFORMED SUBMISSION TYPE: NSAR-B PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20071031 FILED AS OF DATE: 20071231 DATE AS OF CHANGE: 20071231 EFFECTIVENESS DATE: 20071231 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK CORE BOND TRUST CENTRAL INDEX KEY: 0001160864 IRS NUMBER: 522346891 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: NSAR-B SEC ACT: 1940 Act SEC FILE NUMBER: 811-10543 FILM NUMBER: 071333284 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 888-825-2257 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 NSAR-B 1 c51512_nsar-b.fil PAGE 1 000 B000000 10/31/2007 000 C000000 0001160864 000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000 I000000 6.1 000 J000000 A 001 A000000 BLACKROCK CORE BOND TRUST 001 B000000 811-10543 001 C000000 8888252257 002 A000000 100 BELLEVUE PARKWAY 002 B000000 WILMINGTON 002 C000000 DE 002 D010000 19809 003 000000 N 004 000000 N 005 000000 N 006 000000 N 007 A000000 N 007 B000000 0 007 C010100 1 008 A000001 BLACKROCK ADVISORS, LLC 008 B000001 A 008 C000001 801-47710 008 D010001 WILMINGTON 008 D020001 DE 008 D030001 19809 008 A000002 BLACKROCK FINANCIAL MANAGEMENT,INC. 008 B000002 S 008 C000002 801-48433 008 D010002 NEW YORK 008 D020002 NY 008 D030002 10022 012 A000001 COMPUTERSHARE TRUST COMPANY, NA 012 B000001 85-11340 012 C010001 CANTON 012 C020001 MA 012 C030001 02021 013 A000001 DELOITTE & TOUCHE LLP 013 B010001 BOSTON 013 B020001 MA 013 B030001 02116 014 A000001 BLACKROCK INVESTMENTS, INC. 014 B000001 8-048436 014 A000002 NORTHERN FUND DISTRIBUTORS, LLC 014 B000002 8-051242 014 A000003 PNC CAPITAL MARKETS, INC. 014 B000003 8-032493 014 A000004 J.J.B. HILLIARD W.L. LYONS, INC. PAGE 2 014 B000004 8-033133 014 A000005 PFPC DISTRIBUTORS, INC. 014 B000005 8-045467 014 A000006 MGI FUNDS DISTRIBUTOR, INC. 014 B000006 8-046960 014 A000007 BB&T AM Distributors, Inc. 014 B000007 8-052396 014 A000008 BLACKROCK DISTRIBUTORS, INC. 014 B000008 8-048775 014 A000009 PERSIMMON SECURITIES 014 B000009 8-053071 014 A000010 PNC INVESTMENTS LLC 014 B000010 8-066195 014 A000011 MLPF&S AND OTHER ML BROKER/DEALER AFFILIATES 014 B000011 8-7221 014 A000012 Harris Williams LLC 014 B000012 8-53380 014 A000013 Mercantile Brokerage Services, Inc. 014 B000013 8-18210 014 A000014 Northern Trust Securities, Inc. 014 B000014 8-23689 014 A000015 PNC Brokerage Corp. 014 B000015 8-46315 015 A000001 STATESTREET BANK AND TRUST COMPANY 015 B000001 C 015 C010001 BOSTON 015 C020001 MA 015 C030001 02171 015 E010001 X 015 A000002 WACHOVIA SECURITIES 015 B000002 C 015 C010002 SPRING LAKE 015 C020002 NJ 015 C030002 07762 015 C040002 1443 015 E020002 X 018 000000 Y 019 A000000 Y 019 B000000 60 019 C000000 BLACKROCKF 020 A000001 CITIGROUP 020 B000001 11-2418191 020 C000001 103 021 000000 103 022 A000001 LEHMAN BROTHERS 022 B000001 13-2518466 022 C000001 1099158 022 D000001 715284 022 A000002 GOLDMAN SACHS & CO. 022 B000002 13-5108880 022 C000002 367213 PAGE 3 022 D000002 344165 022 A000003 CREDIT SUISSE FIRST BOSTON 022 B000003 13-5659485 022 C000003 187583 022 D000003 151905 022 A000004 CITIGROUP 022 B000004 11-2418191 022 C000004 171117 022 D000004 160806 022 A000005 UBS SECURITIES 022 B000005 13-2932996 022 C000005 139506 022 D000005 121211 022 A000006 BARCLAYS CAPITAL INC. 022 B000006 06-1031656 022 C000006 207314 022 D000006 44390 022 A000007 DEUTSCHE BANK SECURITIES, INC. 022 B000007 13-2473088 022 C000007 98175 022 D000007 62728 022 A000008 BANC OF AMERICA SECURITIES LLC 022 B000008 76-0385312 022 C000008 32701 022 D000008 71619 022 A000009 BEAR STEARNS & CO. 022 B000009 13-3299429 022 C000009 52733 022 D000009 32640 022 A000010 MORGAN STANLEY 022 B000010 13-2655998 022 C000010 52068 022 D000010 31055 023 C000000 2574447 023 D000000 1858042 024 000000 Y 025 A000001 LEHMAN BROTHERS 025 B000001 13-2518466 025 C000001 D 025 D000001 2425 025 A000002 CREDIT SUISSE FIRST BOSTON 025 B000002 13-5659485 025 C000002 D 025 D000002 6259 025 A000003 GOLDMAN SACHS & CO. 025 B000003 13-5108880 025 C000003 D 025 D000003 8409 025 A000004 JP MORGAN CHASE BANK 025 B000004 13-2624428 025 C000004 D PAGE 4 025 D000004 10917 025 A000005 MORGAN STANLEY 025 B000005 13-2655998 025 C000005 D 025 D000005 9932 025 A000006 SALOMON SMITH BARNEY 025 B000006 13-3082694 025 C000006 D 025 D000006 3620 025 A000007 BANC OF AMERICA 025 B000007 56-2058405 025 C000007 D 025 D000007 6809 025 A000008 CITIGROUP 025 B000008 11-2418191 025 C000008 D 025 D000008 11837 025 A000009 HSBC SECURITIES 025 B000009 13-2650272 025 C000009 D 025 D000009 1013 025 A000010 PRUDENTIAL SECURITIES, INC. 025 B000010 22-2347336 025 C000010 D 025 D000010 1097 025 A000011 MERRILL LYNCH 025 B000011 13-5674085 025 C000011 D 025 D000011 933 025 A000012 Citibank, N.A. 025 C000012 D 025 D000012 2826 025 A000013 WACHOVIA SECURITIES 025 B000013 54-0796506 025 C000013 D 025 D000013 1018 025 A000014 BARCLAYS INVESTMENTS INC 025 B000014 05-0346412 025 C000014 D 025 D000014 901 026 A000000 N 026 B000000 N 026 C000000 N 026 D000000 Y 026 E000000 N 026 F000000 N 026 G010000 N 026 G020000 N 026 H000000 N 027 000000 N 028 A010000 0 PAGE 5 028 A020000 0 028 A030000 0 028 A040000 0 028 B010000 0 028 B020000 0 028 B030000 0 028 B040000 0 028 C010000 0 028 C020000 0 028 C030000 0 028 C040000 0 028 D010000 0 028 D020000 0 028 D030000 0 028 D040000 0 028 E010000 0 028 E020000 0 028 E030000 0 028 E040000 0 028 F010000 0 028 F020000 0 028 F030000 0 028 F040000 0 028 G010000 0 028 G020000 0 028 G030000 0 028 G040000 0 028 H000000 0 030 A000000 0 030 B000000 0.00 030 C000000 0.00 031 A000000 0 031 B000000 0 032 000000 0 033 000000 0 035 000000 0 036 B000000 0 038 000000 0 042 A000000 0 042 B000000 0 042 C000000 0 042 D000000 0 042 E000000 0 042 F000000 0 042 G000000 0 042 H000000 0 043 000000 0 044 000000 0 045 000000 Y 046 000000 N 047 000000 Y PAGE 6 048 000000 0.550 048 A010000 0 048 A020000 0.000 048 B010000 0 048 B020000 0.000 048 C010000 0 048 C020000 0.000 048 D010000 0 048 D020000 0.000 048 E010000 0 048 E020000 0.000 048 F010000 0 048 F020000 0.000 048 G010000 0 048 G020000 0.000 048 H010000 0 048 H020000 0.000 048 I010000 0 048 I020000 0.000 048 J010000 0 048 J020000 0.000 048 K010000 0 048 K020000 0.000 049 000000 N 050 000000 N 051 000000 N 052 000000 N 053 A000000 N 054 A000000 Y 054 B000000 Y 054 C000000 N 054 D000000 N 054 E000000 N 054 F000000 N 054 G000000 Y 054 H000000 Y 054 I000000 N 054 J000000 Y 054 K000000 N 054 L000000 N 054 M000000 Y 054 N000000 N 054 O000000 N 055 A000000 Y 055 B000000 N 056 000000 Y 057 000000 N 058 A000000 N 059 000000 Y 060 A000000 Y 060 B000000 Y PAGE 7 061 000000 0 062 A000000 Y 062 B000000 0.0 062 C000000 0.0 062 D000000 0.0 062 E000000 0.0 062 F000000 0.0 062 G000000 0.0 062 H000000 0.0 062 I000000 0.0 062 J000000 0.0 062 K000000 0.0 062 L000000 0.0 062 M000000 3.4 062 N000000 63.6 062 O000000 0.0 062 P000000 66.2 062 Q000000 24.4 062 R000000 0.4 063 A000000 0 063 B000000 15.2 064 A000000 N 064 B000000 N 066 A000000 N 067 000000 N 068 A000000 N 068 B000000 N 069 000000 N 070 A010000 Y 070 A020000 Y 070 B010000 N 070 B020000 N 070 C010000 Y 070 C020000 Y 070 D010000 N 070 D020000 N 070 E010000 Y 070 E020000 Y 070 F010000 N 070 F020000 N 070 G010000 Y 070 G020000 Y 070 H010000 N 070 H020000 N 070 I010000 N 070 I020000 N 070 J010000 Y 070 J020000 Y 070 K010000 Y 070 K020000 N 070 L010000 Y PAGE 8 070 L020000 Y 070 M010000 Y 070 M020000 Y 070 N010000 Y 070 N020000 N 070 O010000 Y 070 O020000 N 070 P010000 Y 070 P020000 N 070 Q010000 N 070 Q020000 N 070 R010000 Y 070 R020000 N 071 A000000 910676 071 B000000 700049 071 C000000 574541 071 D000000 122 072 A000000 12 072 B000000 25539 072 C000000 32 072 D000000 0 072 E000000 4 072 F000000 2263 072 G000000 0 072 H000000 0 072 I000000 15 072 J000000 240 072 K000000 0 072 L000000 103 072 M000000 35 072 N000000 11 072 O000000 0 072 P000000 2987 072 Q000000 0 072 R000000 76 072 S000000 72 072 T000000 0 072 U000000 0 072 V000000 0 072 W000000 65 072 X000000 5867 072 Y000000 0 072 Z000000 19708 072AA000000 340 072BB000000 0 072CC010000 0 072CC020000 3508 072DD010000 16496 072DD020000 0 072EE000000 0 073 A010000 0.6105 PAGE 9 073 A020000 0.0000 073 B000000 0.0000 073 C000000 0.1935 074 A000000 202 074 B000000 0 074 C000000 0 074 D000000 583127 074 E000000 1345 074 F000000 12 074 G000000 0 074 H000000 0 074 I000000 3543 074 J000000 79414 074 K000000 0 074 L000000 6200 074 M000000 85942 074 N000000 759785 074 O000000 194610 074 P000000 230 074 Q000000 0 074 R010000 103354 074 R020000 80406 074 R030000 1554 074 R040000 11296 074 S000000 0 074 T000000 368335 074 U010000 27019 074 U020000 0 074 V010000 13.63 074 V020000 0.00 074 W000000 0.0000 074 X000000 78 074 Y000000 107839 075 A000000 0 075 B000000 367577 076 000000 12.23 077 A000000 Y 077 B000000 Y 077 C000000 N 077 D000000 N 077 E000000 N 077 F000000 N 077 G000000 N 077 H000000 N 077 I000000 N 077 J000000 N 077 K000000 N 077 L000000 N 077 M000000 N 077 N000000 N 077 O000000 Y PAGE 10 077 P000000 N 077 Q010000 Y 077 Q020000 N 077 Q030000 N 078 000000 N 080 A000000 Vigilant Insurance Company 080 B000000 Gulf Insurance Group 080 C000000 33000 081 A000000 Y 081 B000000 61 082 A000000 Y 082 B000000 10 083 A000000 N 083 B000000 0 084 A000000 N 084 B000000 0 085 A000000 Y 085 B000000 N 086 A010000 0 086 A020000 0 086 B010000 0 086 B020000 0 086 C010000 0 086 C020000 0 086 D010000 0 086 D020000 0 086 E010000 0 086 E020000 0 086 F010000 0 086 F020000 0 087 A010000 COMMON STOCK 087 A020000 09249E101 087 A030000 BHK 088 A000000 N 088 B000000 N 088 C000000 N 088 D000000 N SIGNATURE DONALD C. BURKE TITLE TREASURER EX-99.77B 2 c51512_ex99-77b.txt REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors, Trustees and Shareholders of: BlackRock Broad Investment Grade 2009 Term Trust Inc. BlackRock Core Bond Trust BlackRock High Yield Trust BlackRock Income Opportunity Trust BlackRock Income Trust Inc. BlackRock Limited Duration Income Trust BlackRock Preferred and Equity Advantage Trust BlackRock Strategic Bond Trust BCT Subsidiary Inc. (each a "Trust" and collectively, the "Trusts") In planning and performing our audits of the financial statements of the Trusts listed above as of and for the year ended October 31, 2007, in accordance with the standards of the Public Company Accounting Oversight Board (United States), we considered their internal control over financial reporting, including control activities over safeguarding securities, as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-SAR, but not for the purpose of expressing an opinion on the effectiveness of the Trusts' internal control over financial reporting. Accordingly, we express no such opinion. The management of the Trusts is responsible for establishing and maintaining effective internal control over financial reporting. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls. A trust's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A trust's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the trust; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the trust are being made only in accordance with authorizations of management and directors/trustees of the trust; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of a trust's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the trust's annual or interim financial statements will not be prevented or detected on a timely basis. Our consideration of the Trusts' internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily disclose all deficiencies in internal control that might be material weaknesses under standards established by the Public Company Accounting Oversight Board (United States). However, we noted no deficiencies in the Trusts' internal controls over financial reporting and their operation, including controls for safeguarding securities' that we consider to be a material weakness as defined above as of October 31, 2007. This report is intended solely for the information and use of management, the Board of Directors, Trustees of the Trusts listed above and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties. /s/ Deloitte & Touche LLP Boston, Massachusetts December 28, 2007 EX-99.77O 3 c51512_ex99-77o.txt FORM 10f-3 THE BLACKROCK FUNDS RECORD OF SECURITIES PURCHASED UNDER THE TRUST'S RULE 10f-3 PROCEDURES 1. Name of Purchasing Portfolio: EQ/Long Term Bond Portfolio (AXA-LTB), AXA Premier VIP Core Bond Portfolio (AXA-VIP), BlackRock Balanced Capital Portfolio (FI) (Ins - Series) (BCS_F), BlackRock Core Bond Trust (BHK), BlackRock Income Opportunity Trust (BNA-USD), BlackRock Preferred Opportunity Trust (BPP), BlackRock Total Return Portfolio II (BR-CORE), BlackRock Total Return Portfolio (BR-COREPL), BlackRock Intermediate Bond Portfolio II (BR-INT), BlackRock Managed Income Portfolio (BR-MINC), BlackRock Preferred and Equity Advantage Trust - Preferred Sleeve (BTZ-PREF), BlackRock Bond V.I. Fund (Ins - Var Ser) (BVA-BF), BlackRock Bond Portfolio (Ins - Series) (BVA-TR), BlackRock Balanced Capital VI Fund (FI) (BVI_F), Diversified Investment Advisors Core Bond Fund (DIA-CORE), Hirtle Callaghan & Co. Fixed Income II Portfolio(HCIIX), Metropolitan Series BlackRock Bond Income Portfolio (MET-BI), Metropolitan Series BlackRock Diversified Portfolio (Core Bond) (METD_B), Master Aggregate Bond Index Series of the Quantitative Master Series Trust (MF-LBAG), BlackRock Preferred & Corporate Income Strategies Fund, Inc. (PSW), BlackRock Preferred Income Strategies Fund, Inc. (PSY), UBS PACE Intermediate Fixed Income Investments (UBS-PACE), BlackRock Asset Allocation Portfolio (Fixed Income) (BR_AA_FI), Master Core Bond Portfolio of Master Bond Trust (MF-BOND) 2. Issuer: The Progressive Corporation 3. Date of Purchase: 6/18/07 1 4. Underwriter from whom purchased: Goldman Sachs & Co. 5. Name of Affiliated Underwriter (as defined in the Trust's procedures) managing or participating in syndicate: Merrill Lynch, Pierce, Fenner & Smith Incorporated 6. Aggregate principal amount of purchased (out of total offering): $60,750,000 out of $1,000,000,000 7. Aggregate principal amount purchased by funds advised by BlackRock and any purchases by other accounts with respect to which BlackRock has investment discretion (out of the total offering): $105,000,000 out of $1,000,000,000 8. Purchase price (net of fees and expenses): $99.729 9. Date offering commenced: 6/18/07 10. Offering price at end of first day on which any sales were made: 11. Have the following conditions been satisfied: YES NO --- --- a. The securities are part of an issue registered under the Securities Act of 1933, as amended, which is being offered to the public, OR are Eligible Municipal Securities, OR are securities sold in an Eligible Foreign Offering OR are securities sold in an Eligible Rule 144A Offering OR part of an issue of government securities. X --- --- b. The securities were purchased prior to the end of the first day on which any sales were made, at a price that was not more than the price paid by each other purchaser of securities in that offering or in any concurrent offering of the securities (except, in the case of an Eligible Foreign Offering, for any rights to purchase required by laws to be granted to existing security holders of the Issuer) OR, if a rights offering, the securities were purchased on or before the fourth day preceding the day on which the rights offering terminated. X --- --- 2 c. The underwriting was a firm commitment underwriting. X --- --- d. The commission, spread or profit was reasonable and fair in relation to that being received by others for underwriting similar securities during the same period. X --- --- e. In respect of any securities other than Eligible Municipal Securities, the issuer of such securities has been in continuous operation for not less than three years (including the operations of predecessors). X --- --- f. Has the affiliated underwriter confirmed that it will not receive any direct or indirect benefit as a result of BlackRock's participation in the offering? X --- --- Approved: Dan Chen Date: 6/29/07 -------- ------- 3 FORM 10f-3 THE BLACKROCK FUNDS RECORD OF SECURITIES PURCHASED UNDER THE TRUST'S RULE 10f-3 PROCEDURES 1. Name of Purchasing Portfolio: EQ/Long Term Bond Portfolio (AXA-LTB), AXA Multimanager Core Bond Portfolio (AXA-VIP), BlackRock Bond Allocation Target Shares: Series C Portfolio (BATSC), BlackRock Balanced Capital Portfolio (FI) (Ins - Series) (BCS_F), BlackRock Core Bond Trust (BHK), BlackRock Income Opportunity Trust (BNA_USD), BlackRock Total Return Portfolio II (BR-CORE), BlackRock Total Return Portfolio (BR-COREPL), BlackRock Managed Income Portfolio (BR-MINC), BlackRock Asset Allocation Portfolio (Fixed Income) (BR_AA_FI), BlackRock Bond V.I. Fund (Ins - Var Ser) (BVA-BF), BlackRock Bond Portfolio (Ins - Series) (BVA-TR), BlackRock Balanced Capital VI Fund (FI) (BVI_F), Diversified Investment Advisors Core Bond Fund (DIA-CORE), Hirtle Callaghan & Co. Fixed Income II Portfolio (HCIIX), Metropolitan Series BlackRock Bond Income Portfolio (MET-BI), Metropolitan Series BlackRock Diversified Portfolio (Core Bond) (METD_B), Master Core Bond Portfolio of Master Bond Trust (MF-BOND), Master Core Bond Enhanced Index Series of the Quantitative Master Series Tr (MF-LBAG), MGI Core Opportunistic Fixed Income Fund (MGI), SEI Institutional International Trust International Fixed Income Fund (SIT-IB) 2. Issuer: AT&T Inc. 3. Date of Purchase: 8/28/07 4. Underwriter from whom purchased: Banc of America Securities LLC 1 5. Name of Affiliated Underwriter (as defined in the Trust's procedures) managing or participating in syndicate: Merrill Lynch, Pierce, Fenner & Smith Incorporated 6. Aggregate principal amount of purchased (out of total offering): $92,000,000 out of $2,000,000,000 7. Aggregate principal amount purchased by funds advised by BlackRock and any purchases by other accounts with respect to which BlackRock has investment discretion (out of the total offering): $200,000,000 out of $2,000,000,000 8. Purchase price (net of fees and expenses): 99.568 9. Date offering commenced: 8/28/07 10. Offering price at end of first day on which any sales were made: 11. Have the following conditions been satisfied: YES NO --- --- a. The securities are part of an issue registered under the Securities Act of 1933, as amended, which is being offered to the public, OR are Eligible Municipal Securities, OR are securities sold in an Eligible Foreign Offering OR are securities sold in an Eligible Rule 144A Offering OR part of an issue of government securities. X --- --- b. The securities were purchased prior to the end of the first day on which any sales were made, at a price that was not more than the price paid by each other purchaser of securities in that offering or in any concurrent offering of the securities (except, in the case of an Eligible Foreign Offering, for any rights to purchase required by laws to be granted to existing security holders of the Issuer) OR, if a rights offering, the securities were purchased on or before the fourth day preceding the day on which the rights offering terminated. X --- --- c. The underwriting was a firm commitment underwriting. X --- --- 2 d. The commission, spread or profit was reasonable and fair in relation to that being received by others for underwriting similar securities during the same period. X --- --- e. In respect of any securities other than Eligible Municipal Securities, the issuer of such securities has been in continuous operation for not less than three years (including the operations of predecessors). X --- --- f. Has the affiliated underwriter confirmed that it will not receive any direct or indirect benefit as a result of BlackRock's participation in the offering? X --- --- Approved: Jeff Cucunato Date: 9/l7/2007 ------------- --------- 3 FORM 10f-3 THE BLACKROCK FUNDS RECORD OF SECURITIES PURCHASED UNDER THE TRUST'S RULE 10f-3 PROCEDURES 1. Name of Purchasing Portfolio: AXA Multimanager Core Bond Portfolio (AXA- VIP), BlackRock Bond Allocation Target Shares: Series C Portfolio (BATSC), BlackRock Balanced Capital Portfolio (FI) (Ins-Series) (BCS_F), BlackRock Core Bond Trust (BHK), BlackRock Income Opportunity Trust (BNA-USD), BlackRock Preferred Opportunity Trust (BPP), BlackRock Managed Income Portfolio (BR-MINC), BlackRock Asset Allocation Portfolio (Fixed Income) (BR_AA_FI), BlackRock Preferred and Equity Advantage Trust - Preferred Sleeve (BTZ-PREF), BlackRock Bond V.I. Fund (Ins - Var Ser) (BVA-BF), Metropolitan Series BlackRock Diversified Portfolio (Core Bond) (METD_B), BlackRock Preferred & Corporate Income Strategies Fund, Inc. (PSW), BlackRock Preferred Income Strategies Fund, Inc. (PSY) 2. Issuer: Royal Bank of Scotland (cusip 780097AU5) 3. Date of Purchase: 9/26/07 4. Underwriter from whom purchased: RBS Greenwich Capital 5. Name of Affiliated Underwriter (as defined in the Trust's procedures) managing or participating in syndicate: Merrill Lynch, Pierce, Fenner & Smith Incorporated 6. Aggregate principal amount of purchased (out of total offering): 33mm (1.5B) 1 7. Aggregate principal amount purchased by funds advised by BlackRock and any purchases by other accounts with respect to which BlackRock has investment discretion (out of the total offering): 100mm(1.5B) 8. Purchase price (net of fees and expenses): $100 9. Date offering commenced: 9/26/07 10. Offering price at end of first day on which any sales were made: 11. Have the following conditions been satisfied: YES NO --- --- a. The securities are part of an issue registered under the Securities Act of 1933, as amended, which is being offered to the public, OR are Eligible Municipal Securities, OR are securities sold in an Eligible Foreign Offering OR are securities sold in an Eligible Rule 144A Offering OR part of an issue of government securities. X --- --- b. The securities were purchased prior to the end of the first day on which any sales were made, at a price that was not more than the price paid by each other purchaser of securities in that offering or in any concurrent offering of the securities (except, in the case of an Eligible Foreign Offering, for any rights to purchase required by laws to be granted to existing security holders of the Issuer) OR, if a rights offering, the securities were purchased on or before the fourth day preceding the day on which the rights offering terminated. X --- --- c. The underwriting was a firm commitment underwriting. X --- --- 2 d. The commission, spread or profit was reasonable and fair in relation to that being received by others for underwriting similar securities during the same period. X --- --- e. In respect of any securities other than Eligible Municipal Securities, the issuer of such securities has been in continuous operation for not less than three years (including the operations of predecessors). X --- --- f. Has the affiliated underwriter confirmed that it will not receive any direct or indirect benefit as a result of BlackRock's participation in the offering? X --- --- Approved: Dan Chen Date: 10/10/07 -------- -------- 3 -----END PRIVACY-ENHANCED MESSAGE-----