N-Q 1 final.htm BR EUROFUND EuroFund -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-04612

Name of Fund: BlackRock EuroFund

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock
EuroFund, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box
9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 06/30/2009

Date of reporting period: 07/01/2008 – 09/30/2008

Item 1 – Schedule of Investments


BlackRock EuroFund                 
Schedule of Investments September 30, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 

 
Industry    Common Stocks        Shares    Value 

 
 
 
 
Denmark - 1.8%                 

 
 
 
 
Commercial Banks - 1.8%    Danske Bank A/S        450,703    $ 10,851,811 

 
 
 
 
    Total Common Stocks in Denmark            10,851,811 

 
 
 
 
Finland - 1.4%                 

 
 
 
 
Electric Utilities - 1.4%    Fortum Oyj        255,190    8,563,970 

 
 
 
 
    Total Common Stocks in Finland            8,563,970 

 
 
 
 
France - 11.4%                 

 
 
 
 
Automobiles - 0.9%    Peugeot SA        147,090    5,535,895 

 
 
 
 
Commercial Banks - 1.9%    Societe Generale SA        124,110    11,148,733 

 
 
 
 
Insurance - 2.2%    AXA SA        401,535    13,143,959 

 
 
 
 
Machinery - 0.7%    Vallourec SA        19,177    4,137,962 

 
 
 
 
Multi-Utilities - 2.5%    GDF Suez        293,340    15,261,360 

 
 
 
 
Oil, Gas & Consumable Fuels - 3.2%    Total SA        311,408    18,917,969 

 
 
 
 
    Total Common Stocks in France            68,145,878 

 
 
 
 
Germany - 17.6%                 

 
 
 
 
Air Freight & Logistics - 2.2%    Deutsche Post AG        639,205    13,336,672 

 
 
 
 
Diversified Telecommunication    Deutsche Telekom AG        1,101,312    16,725,838 
Services - 2.8%                 

 
 
 
 
Electric Utilities - 2.4%    E.ON AG        282,639    14,227,126 

 
 
 
 
Industrial Conglomerates - 1.7%    Siemens AG        110,035    10,263,709 

 
 
 
 
Insurance - 4.7%    Allianz AG Registered Shares        120,331    16,497,131 
    Muenchener Rueckversicherungs AG        80,058    12,076,305 
               
                28,573,436 

 
 
 
 
Machinery - 1.0%    GEA Group AG        301,097    5,827,927 

 
 
 
 
Pharmaceuticals - 2.8%    Bayer AG        228,026    16,699,934 

 
 
 
 
    Total Common Stocks in Germany            105,654,642 

 
 
 
 
Italy - 6.7%                 

 
 
 
 
Aerospace & Defense - 1.4%    Finmeccanica SpA        388,822    8,428,698 

 
 
 
 
Commercial Banks - 3.0%    Intesa Sanpaolo SpA        3,282,254    18,050,973 

 
 
 
 
Oil, Gas & Consumable Fuels - 2.3%    Eni SpA        529,068    14,023,473 

 
 
 
 
    Total Common Stocks in Italy            40,503,144 

 
 
 
 
Luxembourg - 1.7%                 

 
 
 
 
Metals & Mining - 1.7%    ArcelorMittal        203,544    10,305,708 

 
 
 
 
    Total Common Stocks in Luxembourg            10,305,708 

 
 
 
 
Netherlands - 1.4%                 

 
 
 
 
Diversified Financial Services - 1.4%    ING Groep NV CVA        395,722    8,483,384 

 
 
 
 
    Total Common Stocks in the Netherlands        8,483,384 

 
 
 
Norway - 3.7%                 

 
 
 
 
Commercial Banks - 1.6%    DnB NOR ASA        1,217,815    9,447,560 

 
 
 
 
Oil, Gas & Consumable Fuels - 2.1%    Statoilhydro ASA        523,070    12,429,893 

 
 
 
 
    Total Common Stocks in Norway            21,877,453 

 
 
 
 
Spain - 3.0%                 

 
 
 
 
Diversified Telecommunication    Telefonica SA        763,875    18,163,045 
Services - 3.0%                 

 
 
 
 
    Total Common Stocks in Spain            18,163,045 

 
 
 
 
Sweden - 1.3%                 

 
 
 
 
Machinery - 1.3%    Volvo AB B Shares        839,897    7,588,105 

 
 
 
 
    Total Common Stocks in Sweden            7,588,105 

 
 
 
 

1


BlackRock EuroFund                 
Schedule of Investments September 30, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 

 
Industry    Common Stocks        Shares           Value 

 
 
 
 
Switzerland - 15.7%                 

 
 
 
 
Capital Markets - 3.0%    Credit Suisse Group AG        384,273    $ 17,946,306 

 
 
 
 
Food Products - 3.9%    Nestle SA Registered Shares        542,829    23,459,733 

 
 
 
 
Insurance - 2.8%    Zurich Financial Services AG        61,234    16,956,955 

 
 
 
 
Pharmaceuticals - 6.0%    Novartis AG Registered Shares        372,457    19,609,697 
    Roche Holding AG        103,387    16,184,399 
               
                35,794,096 

 
 
 
 
    Total Common Stocks in Switzerland            94,157,090 

 
 
 
 
United Kingdom - 26.4%                 

 
 
 
 
Aerospace & Defense - 2.2%    BAE Systems Plc        1,807,967    13,328,138 

 
 
 
 
Commercial Banks - 3.7%    HSBC Holdings Plc        580,013    9,383,555 
    Royal Bank of Scotland Group Plc        4,002,632    12,912,090 
               
                22,295,645 

 
 
 
 
Food Products - 3.0%    Unilever Plc        666,763    18,129,756 

 
 
 
 
Metals & Mining - 3.3%    Anglo American Plc        309,450    10,453,060 
    BHP Billiton Plc        418,283    9,475,815 
               
                19,928,875 

 
 
 
 
Multiline Retail - 0.9%    Next Plc        288,388    5,317,339 

 
 
 
 
Oil, Gas & Consumable Fuels - 4.7%    BP Plc        3,362,077    28,000,222 

 
 
 
 
Pharmaceuticals - 1.7%    GlaxoSmithKline Plc        463,550    10,041,689 

 
 
 
 
Tobacco - 2.9%    British American Tobacco Plc        524,737    17,131,155 

 
 
 
 
Wireless Telecommunication    Vodafone Group Plc        10,868,230    24,001,610 
Services - 4.0%                 

 
 
 
 
    Total Common Stocks in the United Kingdom        158,174,429 

 
 
 
    Total Common Stocks             
    (Cost - $593,381,983) - 92.1%            552,468,659 

 
 
 
 
            Beneficial     
            Interest     
    Short-Term Securities        (000)     

 
 
 
 
United States - 3.6%                 

 
 
 
 
    BlackRock Liquidity Series, LLC             
    Cash Sweep Series, 2.59% (a)(b)        $ 21,692    21,691,557 

 
 
 
 
    Total Short-Term Securities             
    (Cost - $21,691,557) - 3.6%            21,691,557 

 
 
 
 
    Total Investments - (Cost - $615,073,540*) - 95.7%        574,160,216 
    Other Assets Less Liabilities - 4.3%            25,796,355 
               
    Net Assets - 100.0%            $ 599,956,571 
               

*      The cost and unrealized appreciation (depreciation) of investments as of September 30, 2008, as computed for federal income tax purposes, were as follows:
 
Aggregate cost    $ 618,796,241 
   
Gross unrealized appreciation    $ 44,795,095 
Gross unrealized depreciation    (89,431,120) 
   
Net unrealized depreciation    $ (44,636,025) 
   

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

2


BlackRock EuroFund

Schedule of Investments September 30, 2008 (Unaudited)

(b)      Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:
 
    Net     
    Activity     
Affiliate    (000)    Income 

 
 
BlackRock Liquidity Series, LLC Cash Sweep Series    $ 13,042    $ 122,188 

 
 

  • For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub- classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub- classifications for reporting ease.
  • Foreign currency exchange contracts purchased as of September 30, 2008 were as follows:
                Settlement    Unrealized 
Currency Purchased       Currency Sold    Date    Depreciation 

 
 
 
USD    1,445,954    EUR    1,027,868    10/03/08    $ (1,413) 

 
 
 
 
 

  Currency Abbreviations:

EUR USD

Euro U.S. Dollar


  • Effective July 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements.
     
      Various inputs are used in determining the fair value of investments, which are as follows:
     
     
  • Level 1 - price quotations in active markets/exchanges for identical securities
     
     
  • Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)
     
     
  • Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Fund's own assumption used in determining the fair value of investments)
     

    The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent financial statements as contained in its annual report.

    The following table summarizes the inputs used as of September 30, 2008 in determining the fair valuation of the Fund's investments:

    Valuation    Investments in    Other Financial 
    Inputs    Securities    Instruments * 

     
     
    Level 1    -    $ (1,413) 
    Level 2    $ 574,160,216    - 
    Level 3    -    - 

     
     
    Total    $ 574,160,216    $ (1,413) 
       
     

    * Other financial instruments are foreign currency exchange contracts.

    3


    Item 2 – Controls and Procedures

    2(a) – The registrant’s principal executive and principal financial officers or persons performing
    similar functions have concluded that the registrant’s disclosure controls and procedures (as
    defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the
    “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the
    evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act
    and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

    2(b) – There were no changes in the registrant’s internal control over financial reporting (as
    defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal
    quarter that have materially affected, or are reasonably likely to materially affect, the
    registrant’s internal control over financial reporting.

    Item 3 – Exhibits

    Certifications – Attached hereto

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
    Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by
    the undersigned, thereunto duly authorized.

    BlackRock EuroFund

    By: /s/ Donald C. Burke
    Donald C. Burke
    Chief Executive Officer of
    BlackRock EuroFund

    Date: November 24, 2008

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
    Company Act of 1940, this report has been signed below by the following persons on behalf
    of the registrant and in the capacities and on the dates indicated.

    By: /s/ Donald C. Burke
    Donald C. Burke
    Chief Executive Officer (principal executive officer) of
    BlackRock EuroFund

    Date: November 24, 2008

    By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock EuroFund

    Date: November 24, 2008