497 1 d497.htm BLACKROCK PROSPECTUS SUPPLEMENT Blackrock Prospectus Supplement

BLACKROCK FUNDSSM

 

EQUITY PORTFOLIOS/INVESTOR CLASSES

 

SUPPLEMENT TO PROSPECTUS DATED JANUARY 28, 2004

 

BLACKROCK MID-CAP GROWTH EQUITY PORTFOLIO

 

Fund Management

 

The section “Fund Management” on pages 30-31 has been amended to read in its entirety as follows:

 

The fund is lead managed by Neil Wagner, Managing Director at BlackRock Advisors, Inc. (BlackRock) since January 2004, and co-managed by Andrew F. Thut, Vice President at BlackRock. Prior to joining BlackRock in April 2002, Mr. Wagner was a portfolio manager at Massachusetts Financial Services (MFS) since 1998. Prior to that, he was a senior research analyst at DFS Advisors LLC from 1997 to 1998 and an associate at Berkshire Partners from 1995 to 1997. Prior to joining BlackRock in April 2002, Mr. Thut was an equity analyst on the small and mid cap growth team at MFS since 1998. Prior to joining MFS, Mr. Thut worked in the Technology Investment Banking Group at BT Alex. Brown since 1995. Mr. Wagner has been a manager of the fund since May 2002 and Mr. Thut has been an analyst on the fund since May 2002 and a manager of the fund since March 2004.

 

BLACKROCK SMALL CAP VALUE EQUITY PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 36 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    3 Years    5 Years    10 Years   

Inception

Date

Small Cap Value; Inv A

                         

Return Before Taxes

    40.56%    7.11%    6.88%    9.83%    04/13/92

Return After Taxes on Distributions

    36.88%    3.88%    4.55%    7.35%     

Return After Taxes on Distributions and Sale of Shares

    28.15%    4.69%    4.85%    7.32%     

Small Cap Value; Inv B

                         

Return Before Taxes

    41.49%    7.16%    6.80%    9.60%    04/13/92

Small Cap Value; Inv C

                         

Return Before Taxes

    45.08%    7.97%    7.07%    9.60%    04/13/92

Russell 2000 Value

(Reflects no deductions for fees, expenses or taxes)

    46.03%    13.83%    12.28%    12.70%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.

 

These returns assume payment of applicable sales charges.

BLACKROCK SMALL CAP CORE EQUITY PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 44 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    Since
Inception		    Inception
Date

Small Cap Core Equity; Investor A

               

Return Before Taxes

    49.30%    15.31%    01/02/02

Return After Taxes on Distributions

    48.85%    15.13%     

Return After Taxes on Distributions and Sale of Shares

    32.15%    13.06%     

Small Cap Core Equity; Investor B

               

Return Before Taxes

    52.46%    16.53%    01/02/02

Small Cap Core Equity; Investor C

               

Return Before Taxes

    55.96%    18.24%    01/02/02

Russell 2000

               

(Reflects no deduction for fees, expenses or taxes)

    47.25%    8.33%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.
  1 Performance of the fund and the benchmark for 2003 calendar year reflects the cumulative performance from the inception date (January 2, 2002) until December 31, 2002.

 

These returns assume payment of applicable sales charges.

 

BLACKROCK SMALL CAP GROWTH EQUITY PORTFOLIO

 

Fund Management

 

The section “Fund Management” on pages 53-54 has been amended to read in its entirety as follows:

 

The fund is lead managed by Neil Wagner, Managing Director at BlackRock Advisors, Inc. (BlackRock) since January 2004, and co-managed by Andrew F. Thut, Vice President at BlackRock. Prior to joining BlackRock in April 2002, Mr. Wagner was a portfolio manager at Massachusetts Financial Services (MFS) since 1998. Prior to that, he was a senior research analyst at DFS Advisors LLC from 1997 to 1998 and an associate at Berkshire Partners from 1995 to 1997. Prior to joining BlackRock in April 2002, Mr. Thut was an equity analyst on the small and mid cap growth team at MFS since 1998. Prior to joining MFS, Mr. Thut worked in the Technology Investment Banking Group at BT Alex. Brown since 1995. Mr. Wagner has been a manager of the fund since May 2002 and Mr. Thut has been an analyst on the fund since May 2002 and a manager of the fund since March 2004.

BLACKROCK INDEX EQUITY PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 111 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    3 Years    5 Years    10 Years    Inception
Date

Index Equity; Inv A

                         

Return Before Taxes

    23.84%    -5.80%    -1.98%    9.86%    04/20/92

Return After Taxes on Distributions

    23.64%    -6.01%    -2.21%    8.77%     

Return After Taxes on Distributions and Sale of Shares

    15.72%    -4.99%    -1.78%    8.03%     

Index Equity; Inv B

                         

Return Before Taxes

    22.22%    -6.66%    -2.49%    9.56%    04/20/92

Index Equity; Inv C

                         

Return Before Taxes

    25.73%    -5.55%    -2.11%    9.55%    04/20/92

S&P 500®

(Reflects no deduction for fees, expenses or taxes)

    28.69%    -4.05%    -0.57%    11.07%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.

 

These returns assume payment of applicable sales charges.

 

BLACKROCK BALANCED PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 121 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    3 Years    5 Years    10 Years    Inception
Date

Balanced; Inv A

                         

Return Before Taxes

    14.69%    -4.77%    -2.27%    6.54%    05/14/90

Return After Taxes on Distributions

    14.16%    -5.49%    -3.74%    4.75%     

Return After Taxes on Distributions and Sale of Shares

    9.77%    -4.44%    -2.48%    4.81%     

Balanced; Inv B

                         

Return Before Taxes

    14.72%    -5.12%    -2.41%    6.30%    05/14/90

Balanced; Inv C

                         

Return Before Taxes

    18.22%    -4.03%    -2.10%    6.30%    05/14/90

65% S&P 500®/35% Leh. Agg.

(Reflects no deduction for fees, expenses or taxes)

      19.73%      0.35%    2.29%      9.94%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.

 

These returns assume payment of applicable sales charges.

 

This Supplement is dated March 5, 2004.

BLACKROCK FUNDSSM

 

EQUITY PORTFOLIOS/SERVICE CLASS

 

SUPPLEMENT TO PROSPECTUS DATED JANUARY 28, 2004

 

BLACKROCK MID-CAP GROWTH EQUITY PORTFOLIO

 

Fund Management

 

The section “Fund Management” on pages 21-22 has been amended to read in its entirety as follows:

 

The fund is lead managed by Neil Wagner, Managing Director at BlackRock Advisors, Inc. (BlackRock) since January 2004, and co-managed by Andrew F. Thut, Vice President at BlackRock. Prior to joining BlackRock in April 2002, Mr. Wagner was a portfolio manager at Massachusetts Financial Services (MFS) since 1998. Prior to that, he was a senior research analyst at DFS Advisors LLC from 1997 to 1998 and an associate at Berkshire Partners from 1995 to 1997. Prior to joining BlackRock in April 2002, Mr. Thut was an equity analyst on the small and mid cap growth team at MFS since 1998. Prior to joining MFS, Mr. Thut worked in the Technology Investment Banking Group at BT Alex. Brown since 1995. Mr. Wagner has been a manager of the fund since May 2002 and Mr. Thut has been an analyst on the fund since May 2002 and a manager of the fund since March 2004.

 

BLACKROCK SMALL CAP VALUE EQUITY PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 26 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    3 Years    5 Years    10 Years    Inception
Date

Small Cap Value

                         

Return Before Taxes

    47.46%    8.98%    8.06%    10.50%    04/13/92

Return After Taxes on Distributions

    43.63%    5.67%    5.66%    7.96%     

Return After Taxes on Distributions and Sale of Shares

    32.72%    6.26%    5.83%    7.89%     

Russell 2000 Value

(Reflects no deduction for fees, expenses or taxes)

    46.03%    13.83%    12.28%    12.70%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.

BLACKROCK SMALL CAP CORE EQUITY PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 32 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    Since
Inception		    Inception
Date

Return Before Taxes

    57.41%    18.41%    01/02/02

Return After Taxes on Distributions

    56.94%    18.24%     

Return After Taxes on Distributions and Sale of Shares

    37.42%    15.75%     

Russell 2000
(Reflects no deduction for fees, expenses
or taxes)

    47.25%    8.33%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.
  1 Performance of the fund and the benchmark for the 2002 calendar year reflects the cumulative performance from the inception date of the fund (January 2, 2002) until December 31, 2002.

 

BLACKROCK SMALL CAP GROWTH EQUITY PORTFOLIO

 

Fund Management

 

The section “Fund Management” on pages 39-40 has been amended to read in its entirety as follows:

 

The fund is lead managed by Neil Wagner, Managing Director at BlackRock Advisors, Inc. (BlackRock) since January 2004, and co-managed by Andrew F. Thut, Vice President at BlackRock. Prior to joining BlackRock in April 2002, Mr. Wagner was a portfolio manager at Massachusetts Financial Services (MFS) since 1998. Prior to that, he was a senior research analyst at DFS Advisors LLC from 1997 to 1998 and an associate at Berkshire Partners from 1995 to 1997. Prior to joining BlackRock in April 2002, Mr. Thut was an equity analyst on the small and mid cap growth team at MFS since 1998. Prior to joining MFS, Mr. Thut worked in the Technology Investment Banking Group at BT Alex. Brown since 1995. Mr. Wagner has been a manager of the fund since May 2002 and Mr. Thut has been an analyst on the fund since May 2002 and a manager of the fund since March 2004.

 

BLACKROCK INDEX EQUITY PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 89 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    3 Years    5 Years    10 Years    Inception
Date

Index Equity

                         

Return Before Taxes

    27.86%    -4.68%    -1.21%    10.36%    04/20/92

Return After Taxes on Distributions

    27.62%    -4.96%    -1.50%    9.20%     

Return After Taxes on Distributions and Sale of Shares

    18.37%    -4.09%    -1.17%    8.44%     

S&P 500®

(Reflects no deduction for fees, expenses or taxes)

    28.69%    -4.05%    -0.57%    11.07%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.

BLACKROCK BALANCED PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 96 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    3 Years    5 Years    10 Years    Inception
Date

Balanced

                         

Return Before Taxes

    20.30%    -3.14%    -1.20%    7.19%    05/14/90

Return After Taxes on Distributions

    19.69%    -3.94%    -2.75%    5.33%     

Return After Taxes on Distributions and Sale of Shares

    13.44%    -3.12%    -1.63%    5.35%     

65% S&P 500®/35% Leh. Agg.

(Reflects no deduction for fees, expenses or taxes)

    19.73%    0.35%    2.29%    9.94%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.

 

This Supplement is dated March 5, 2004.

BLACKROCK FUNDSSM

 

EQUITY PORTFOLIOS/INSTITUTIONAL CLASS

 

SUPPLEMENT TO PROSPECTUS DATED JANUARY 28, 2004

 

BLACKROCK MID-CAP GROWTH EQUITY PORTFOLIO

 

Fund Management

 

The section “Fund Management” on page 22 has been amended to read in its entirety as follows:

 

The fund is lead managed by Neil Wagner, Managing Director at BlackRock Advisors, Inc. (BlackRock) since January 2004, and co-managed by Andrew F. Thut, Vice President at BlackRock. Prior to joining BlackRock in April 2002, Mr. Wagner was a portfolio manager at Massachusetts Financial Services (MFS) since 1998. Prior to that, he was a senior research analyst at DFS Advisors LLC from 1997 to 1998 and an associate at Berkshire Partners from 1995 to 1997. Prior to joining BlackRock in April 2002, Mr. Thut was an equity analyst on the small and mid cap growth team at MFS since 1998. Prior to joining MFS, Mr. Thut worked in the Technology Investment Banking Group at BT Alex. Brown since 1995. Mr. Wagner has been a manager of the fund since May 2002 and Mr. Thut has been an analyst on the fund since May 2002 and a manager of the fund since March 2004.

 

BLACKROCK SMALL CAP VALUE EQUITY PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 27 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    3 Years    5 Years    10 Years    Inception
Date

Small Cap Value

                         

Return Before Taxes

    47.93%    9.29%    8.38%    10.83%    04/13/92

Return After Taxes on Distributions

    44.11%    5.93%    5.90%    8.18%     

Return After Taxes on Distributions and Sale of Shares

    33.02%    6.49%    6.06%    8.10%     

Russell 2000 Value

(Reflects no deduction for fees, expenses or taxes)

    46.03%    13.83%    12.28%    12.70%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.

 

BLACKROCK SMALL CAP CORE EQUITY PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 33 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    Since
Inception		    Inception
Date

Small Cap Core Equity

               

Return Before Taxes

    57.41%    18.41%    01/02/02

Return After Taxes on
Distributions

    56.94%    18.24%     

Return After Taxes on
Distributions and Sale of Shares

    37.42%    15.75%     

Russell 2000

(Reflects no deduction for fees,

expenses or taxes)

    47.25%    8.33%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.
  1 Performance of the fund and the benchmark for the 2002 calendar year reflects the cumulative performance from the inception date (January 2, 2002) until December 31, 2002.

 

BLACKROCK SMALL CAP GROWTH EQUITY PORTFOLIO

 

Fund Management

 

The section “Fund Management” on pages 40-41 has been amended to read in its entirety as follows:

 

The fund is lead managed by Neil Wagner, Managing Director at BlackRock Advisors, Inc. (BlackRock) since January 2004, and co-managed by Andrew F. Thut, Vice President at BlackRock. Prior to joining BlackRock in April 2002, Mr. Wagner was a portfolio manager at Massachusetts Financial Services (MFS) since 1998. Prior to that, he was a senior research analyst at DFS Advisors LLC from 1997 to 1998 and an associate at Berkshire Partners from 1995 to 1997. Prior to joining BlackRock in April 2002, Mr. Thut was an equity analyst on the small and mid cap growth team at MFS since 1998. Prior to joining MFS, Mr. Thut worked in the Technology Investment Banking Group at BT Alex. Brown since 1995. Mr. Wagner has been a manager of the fund since May 2002 and Mr. Thut has been an analyst on the fund since May 2002 and a manager of the fund since March 2004.

BLACKROCK INDEX EQUITY PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 90 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    3 Years    5 Years    10 Years    Inception
Date

Index Equity

                         

Return Before Taxes

    28.46%    -4.25%    -0.79%    10.75%    04/20/92

Return After Taxes on Distributions

    28.17%    -4.61%    -1.18%    9.48%     

Return After Taxes on Distributions and Sale of Shares

    18.82%    -3.78%    -0.88%    8.72%     

S&P 500®

(Reflects no deduction for fees, expenses or taxes)

    28.69%    -4.05%    -0.57%    11.07%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.

 

BLACKROCK BALANCED PORTFOLIO

 

Risk/Return Information

 

The “Average Annual Total Returns” table in the section “Risk/Return Information” on page 97 has been amended to read in its entirety as follows:

 

As of 12/31/03

 

AVERAGE ANNUAL TOTAL RETURNS*

 

     1 Year    3 Years    5 Years    10 Years    Inception
Date

Balanced

                         

Return Before Taxes

    20.63%    -2.86%    -0.91%    7.50%    05/14/90

Return After Taxes on Distributions

    19.95%    -3.76%    -2.56%    5.53%     

Return After Taxes on Distributions and Sale of Shares

    13.70%    -2.94%    -1.45%    5.55%     

65% S&P 500®/ 35% Leh. Agg.

(Reflects no deduction for fees, expenses or taxes)

    19.73%    0.35%    2.29%    9.94%    N/A
  * The chart and the table both assume reinvestment of dividends and distributions. Source: BlackRock Advisors, Inc.

 

This Supplement is dated March 5, 2004.