March 31, 1999
Money Market
Portfolios
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
Not FDIC Insured
May Lose Value
No Bank Guarantee
[GRAPHIC OMITTED]
BLACKROCK
FUNDS
PURE INVESTMENT STYLE(REGISTRATION MARK)
<PAGE>
BLACKROCK FUNDS
MONEY MARKET PORTFOLIOS
* Money Market * Ohio Municipal Money Market
* U.S. Treasury Money Market * Pennsylvania Municipal
* Municipal Money Market Money Market
* New Jersey Municipal * Virginia Municipal Money
Money Market Market
* North Carolina Municipal
* Money Market
TABLE OF CONTENTS
SHAREHOLDER LETTER.............................................................1
PORTFOLIO SUMMARIES
Money Market.............................................................3
U.S. Treasury Money Market...............................................5
Municipal Money Market...................................................6
New Jersey Municipal Money Market.......................................10
North Carolina Municipal Money Market...................................13
Ohio Municipal Money Market.............................................16
Pennsylvania Municipal Money Market.....................................19
Virginia Municipal Money Market.........................................24
PORTFOLIO FINANCIAL STATEMENTS
Statements of Operations.............................................26-27
Statements of Changes in Net Assets..................................28-29
Financial Highlights.................................................30-37
Notes to Financial Statements........................................38-46
<PAGE>
BLACKROCK FUNDS
March 31, 1999
Dear Shareholder:
We are pleased to present the Semi-Annual Report for the BlackRock Funds
for March 31, 1999.
These are certainly exciting times for the U.S. stock market. On March 29,
1999, the Dow Jones Industrial Average (DJIA) eclipsed the mythic 10,000 level
for the first time in history, only to fall slightly below this mark at the end
of the period. This milestone is a media event that has created considerable
excitement and propelled the stock market into the forefront of public
attention. We believe that times like these present a good opportunity for
investors to look past the heat of the moment and focus on the true meaning of
events.
A quick look at recent history confirms that 10,000 on the Dow is indeed a
lofty height. It was only 27 years ago in 1972 that the Dow reached the 1,000
level for the first time. But that success did not last. Battered by recession
in the U.S. economy and worldwide oil shortages, the Dow plummeted below 600 in
1974, the lowest point in a generation, and it didn't get back to 1,000 again
until 1982. From 1982 to 1994 the Dow climbed to the 3,500 level. From there it
moved to 5,000 in 1996, 7,500 in 1998 and 10,000 in 1999. By anyone's measure
this has been a fast and impressive, yet often volatile, climb.
On the other hand, it is worth remembering that the Dow is not a broad
based index -- in fact it is only 30 stocks! While the Dow has been flying high,
many stocks, particularly smaller stocks, have not. Furthermore, the stocks that
make up the Dow are some of the largest of the large cap stocks, the very group
that has done so well over recent years. At the same time returns on small cap
stocks, measured by the Russell 2000, have lagged by returning -16.25% for the
twelve months ended March 31, 1999 and the large caps, measured by the S&P 500,
have been humming along at a rate of 18.58% in the same time period.
Is the market overdue for a significant correction, or can it continue to
move still higher? Of course, none of us can predict the future but there are
several important positive indications. We believe the economy is strong,
interest rates are favorable and inflation appears under control. While
BlackRock believes that the market will remain in positive territory for the
remainder of 1999, we also believe that growth will be tempered and that
investors would do well to roll back their expectations to more modest levels.
If you look at stock market performance from 1926 to 1998, as presented in the
Ibbotson 1999 Yearbook, Large Company Stocks (S&P Composite Index) returned an
average annual rate of 11.2%, Small Company Stocks (9th and 10th Deciles NYSE
plus corresponding AMEX and OTC) at 12.4%, and Long Term Bonds (Salomon Brothers
Long Term High-Grade Corporate Bond Index) at 5.8%. While past performance does
not predict future returns, common sense suggests that the market cannot be
expected to keep growing at current rates.
These historical returns, while not approaching the returns of recent
years, are still significant and confirm the appropriateness of our core
investment philosophy for long-term investors: start investing early and stay
invested through all market cycles. Of course, the asset allocation that you use
for your portfolio can change to reflect changes in the market and in your own
personal financial situation.
1
<PAGE>
BLACKROCK FUNDS
We also believe that with the Federal Reserve currently holding steady on
interest rates, investors should not overlook the investment opportunity in the
bond market, both taxable and tax free. We are pleased to report that during the
period of this report we successfully launched a new fund, the BlackRock High
Yield Bond Portfolio, designed for investors who want high current income from
investing in securities that are rated less than investment grade.
We are pleased with the growth of BlackRock Funds during the past six
months. The addition of the BlackRock High Yield Bond Portfolio in November 1998
increased the number of BlackRock Funds to 36 investment portfolios.
Additionally, we received record inflows into the fund family, which helped
bring our total assets under management to approximately $25 billion as of March
31, 1999.
Thank you for your continued confidence in BlackRock Funds. We value your
business and appreciate the opportunity to help you achieve your long-term
investment goals.
Sincerely,
/S/ KAREN H. SABATH
Karen H. Sabath
MANAGING DIRECTOR
BLACKROCK ADVISORS, INC.
2
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MONEY MARKET PORTFOLIO
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
CERTIFICATES OF DEPOSIT--11.5%
DOMESTIC--4.1%
First National Bank of Chicago
4.86% 05/04/99 $ 50,000 $ 50,000,000
4.98% 06/07/99 25,000 25,001,304
4.98% 01/06/00 50,000 49,992,598
Wilmington Trust Co.
5.83% 05/07/99 15,000 15,000,000
--------------
139,993,902
--------------
YANKEE DOLLAR--7.4%
Canadian Imperial Bank of Commerce
5.12% 02/23/00 25,000 24,989,018
5.18% 03/16/00 25,000 24,993,075
Credit Agricole Indosuez SA
5.75% 05/19/99 20,000 19,997,986
National Westminster PLC
5.74% 05/07/99 14,700 14,707,269
4.98% 01/10/00 35,000 34,994,746
5.28% 04/03/00 50,000 49,989,215
Svenska Handelsbanken, Inc.
5.18% 03/16/00 25,000 24,989,037
Toronto Dominion
5.00% 01/05/00 15,000 14,998,894
5.10% 02/22/00 22,500 22,492,230
Westpac Banking Corp.
5.84% 04/29/99 25,000 24,999,358
--------------
257,150,828
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $397,144,730) 397,144,730
--------------
COMMERCIAL PAPER--65.1%
AIRCRAFT ENGINES & ENGINE PARTS--3.6%
Allied-Signal, Inc.
4.82% 04/27/99 50,000 49,825,944
4.85% 05/10/99 50,000 49,737,292
4.92% 09/10/99 25,000 24,446,500
--------------
124,009,736
--------------
ASSET BACKED SECURITIES--21.3%
Barton Capital Corp.
4.88% 04/05/99 15,250 15,241,731
4.85% 04/06/99 50,000 49,966,319
4.85% 04/14/99 49,908 49,820,592
4.87% 04/22/99 35,645 35,543,738
Dakota Certificates
4.87% 04/05/99 25,000 24,986,472
4.88% 04/09/99 50,000 49,945,778
4.84% 05/03/99 50,000 49,784,889
4.83% 05/21/99 25,000 24,832,292
Delaware Funding Corp.
4.87% 04/20/99 78,592 78,389,997
Enterprise Funding Corp.
4.87% 06/07/99 6,585 6,525,316
Preferred Receivables Funding Corp.
4.83% 04/14/99 16,320 16,291,535
4.84% 05/24/99 9,000 8,935,870
Receivables Capital Corp.
4.82% 04/09/99 20,000 19,978,578
4.86% 04/22/99 49,939 49,797,423
Riverwoods Funding Corp.
4.84% 04/09/99 100,000 99,892,444
Triple A-1 Funding Corp.
4.86% 04/22/99 33,514 33,418,988
4.88% 04/28/99 50,662 50,476,577
Par
Maturity (000) Value
-------- -------- ------------
COMMERCIAL PAPER (CONTINUED)
ASSET BACKED SECURITIES (CONTINUED)
Windmill Funding Corp.
4.89% 04/01/99 $ 17,410 $ 17,410,000
4.87% 04/19/99 34,385 34,301,272
4.87% 04/21/99 21,159 21,101,753
--------------
736,641,564
--------------
BANKS--7.6%
Abbey National North America
4.82% 08/16/99 23,540 23,108,211
Bank of America
4.83% 07/27/99 25,000 24,607,562
J.P. Morgan & Co.
4.83% 09/27/99 24,400 23,814,014
Spintab Swedmortgage AB
5.06% 04/16/99 40,000 39,915,667
4.84% 08/16/99 45,000 44,171,150
4.92% 10/01/99 30,000 29,249,700
Svenska Handelsbanken, Inc.
4.80% 08/09/99 35,000 34,393,333
Swedbank, Inc.
4.85% 08/27/99 45,000 44,102,750
--------------
263,362,387
--------------
COMMUNICATION EQUIPMENT--2.3%
Alcatel Alsthom, Inc.
4.90% 06/08/99 55,500 54,986,317
4.87% 08/19/99 25,000 24,526,528
--------------
79,512,845
--------------
CREDIT INSTITUTIONS--6.3%
Countrywide Funding Corp.
4.88% 04/14/99 60,000 59,894,267
4.91% 04/16/99 100,000 99,795,417
4.88% 04/30/99 10,000 9,960,689
Heller Finance, Inc.
4.92% 04/22/99 50,000 49,856,500
--------------
219,506,873
--------------
INSURANCE--0.7%
Prudential Funding Corp.
4.76% 07/15/99 25,000 24,652,917
--------------
MOTOR VEHICLES--4.7%
Chrysler Corp.
4.84% 05/19/99 75,000 74,516,000
Daimler-Benz North America Corp.
4.98% 05/04/99 15,000 14,931,525
4.98% 05/14/99 25,000 24,851,292
4.75% 07/14/99 50,000 49,313,889
--------------
163,612,706
--------------
OIL & GAS--4.0%
Repsol International
4.88% 06/07/99 20,000 19,818,356
4.91% 06/28/99 20,000 19,759,955
4.87% 07/15/99 50,000 49,289,792
4.75% 07/23/99 50,000 49,254,514
--------------
138,122,617
--------------
See accompanying notes to financial statements.
3
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MONEY MARKET PORTFOLIO (CONCLUDED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
COMMERCIAL PAPER (CONTINUED)
PUBLISHING & PRINTING--4.6%
Knight-Ridder, Inc.
5.10% 04/14/99 $ 20,000 $ 19,963,167
5.20% 04/14/99 50,000 49,906,111
4.85% 04/28/99 55,000 54,799,937
5.00% 06/14/99 15,000 14,845,833
4.78% 07/23/99 20,000 19,699,922
--------------
159,214,970
--------------
RETAIL MERCHANDISING--2.6%
Sears Roebuck Acceptance Corp.
4.83% 04/14/99 75,000 74,869,187
St. Michael Finance Ltd.
4.82% 06/14/99 14,567 14,422,673
--------------
89,291,860
--------------
SECURITY BROKERS & DEALERS--6.5%
Merrill Lynch & Co., Inc.
4.90% 05/24/99 50,000 49,639,306
Morgan Stanley & Co.
4.87% 04/13/99 50,000 49,918,833
4.87% 04/22/99 25,000 24,928,979
4.81% 05/14/99 100,000 99,425,472
--------------
223,912,590
--------------
SERVICES - EQUIPMENT RENTAL & LEASING--0.9%
HD Real Estate, Inc.
4.83% 04/05/99 29,878 29,861,965
--------------
TOTAL COMMERCIAL PAPER
(Cost $2,251,703,030) 2,251,703,030
--------------
TIME DEPOSITS--3.3%
Bank of Montreal
5.06%
(Cost $115,000,000) 04/01/99 115,000 115,000,000
--------------
GUARANTEED INVESTMENT CONTRACT--0.3%
Peoples Security Life
5.13%
(Cost $10,000,000) 04/01/99 10,000 10,000,000
--------------
VARIABLE RATE OBLIGATIONS--19.8%
ASSET BACKED SECURITIES--3.8%
SMM Trust
4.96%** 04/28/99 50,000 50,000,000
5.10%** 06/15/99 80,000 80,000,000
--------------
130,000,000
--------------
BANKS--4.6%
NationsBank Corp.
5.07%** 04/02/99 50,000 50,000,350
Norwest Corp.
4.95%** 06/21/99 60,000 59,997,284
Royal Bank of Canada
4.82%** 04/14/99 50,000 49,984,082
--------------
159,981,716
--------------
CHEMICAL--0.7%
Dow Chemical Co.
4.90%** 06/15/99 25,000 24,991,156
--------------
Par
Maturity (000) Value
-------- -------- ------------
VARIABLE RATE OBLIGATIONS (CONTINUED)
CREDIT INSTITUTIONS--7.8%
American Honda Finance Corp.
4.95%** 05/07/99 $ 35,000 $ 35,000,000
5.00%** 05/25/99 35,000 34,993,671
4.98%** 06/14/99 40,000 40,000,000
4.98%** 06/16/99 25,000 25,000,000
4.97%** 06/18/99 35,000 34,996,633
Beneficial Corp.
5.21%** 05/04/99 19,500 19,499,849
General Motors Acceptance Corp.
4.96%** 04/08/99 40,000 39,968,171
4.91%** 05/26/99 40,000 39,993,621
--------------
269,451,945
--------------
GOVERNMENT--0.3%
Province of Ontario
5.00%** 05/17/99 10,000 10,001,736
--------------
INSURANCE--1.4%
General American Life
5.14%** 04/01/99 50,000 50,000,000
--------------
SECURITY BROKERS & DEALERS--1.2%
Merrill Lynch & Co., Inc
5.04%** 05/20/99 40,000 40,022,019
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $684,448,572) 684,448,572
--------------
PAINE WEBBER LIQUID INSTITUTIONAL
RESERVES MONEY MARKET FUND--0.2%
Paine Webber Liquid Institutional
Reserves Money Market Fund
(Cost $5,457,779) 5,458 5,457,779
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $3,463,754,111*) 100.2% 3,463,754,111
LIABILITIES IN EXCESS
OF OTHER ASSETS (0.2%) (6,018,745)
------ --------------
NET ASSETS (Equivalent to $1.00
per share based on 2,143,233,006
Institutional shares, 806,883,567
Service shares, 502,456,472
Investor A shares, 3,964,555
Investor B shares and 1,226,803
Investor C shares outstanding) 100.0% $3,457,735,366
====== ==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
INVESTOR A, INVESTOR B AND
INVESTOR C SHARE
($3,457,735,366 (DIVIDE) 3,457,764,403) $1.00
=====
- ---------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1999, and maturities shown are the
next interest readjustment date.
See accompanying notes to financial statements.
4
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
U.S. TREASURY MONEY MARKET PORTFOLIO
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
U.S. TREASURY OBLIGATIONS--36.1%
U.S. Treasury Bills
4.84% 04/15/99 $ 25,000 $ 24,952,945
4.81% 04/19/99 100,000 99,759,500
U.S. Treasury Notes
7.00% 04/15/99 6,000 6,003,085
6.38% 04/30/99 22,000 22,014,174
6.38% 05/15/99 5,000 5,004,465
6.25% 05/31/99 28,000 28,028,918
6.00% 06/30/99 5,000 5,005,009
6.75% 06/30/99 15,000 15,042,159
5.88% 07/31/99 10,000 10,010,975
5.88% 11/15/99 24,000 24,167,883
5.63% 11/30/99 55,000 55,329,324
7.75% 11/30/99 5,000 5,100,140
7.75% 01/31/00 28,500 29,193,422
5.50% 02/29/00 15,000 15,083,085
7.13% 02/29/00 13,000 13,268,405
6.88% 03/31/00 10,000 10,178,504
5.50% 04/15/00 5,000 5,025,948
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $373,167,941) 373,167,941
--------------
REPURCHASE AGREEMENTS--66.3%
Barclay Investments
4.90% 04/01/99 45,000 45,000,000
(Agreement dated 03/31/99 to be
repurchased at $45,006,125.
Collateralized by $44,910,000 U.S.
Treasury Notes 8.00% due 08/15/99.
The value of the collateral is
$45,989,474.)
Bear Stearns
4.95% 04/01/99 45,000 45,000,000
(Agreement dated 03/31/99 to be
repurchased at $45,006,188.
Collateralized by $114,980,000 U.S.
Treasury Strips 0.00% due 05/15/12
to 11/15/20. The value of the
collateral is $45,909,134.)
Goldman Sachs & Co.
4.90% 04/01/99 45,000 45,000,000
(Agreement dated 03/31/99 to be
repurchased at $45,006,125.
Collateralized by $45,000,000 U.S.
Treasury Bonds 12.50% due 08/15/14.
The value of the collateral is
$46,134,680.)
Greenwich Capital Markets
4.90% 04/01/99 150,000 150,000,000
(Agreement dated 03/31/99 to be
repurchased at $150,020,417.
Collateralized by $16,985,000 U.S.
Treasury Bonds 8.875% due 08/15/17
to 02/15/19 and $314,653,000 U.S.
Treasury Strips 0.00% due 05/15/99
to 11/15/27. The value of the
collateral is $153,005,979.)
J.P. Morgan Securities
4.88% 04/01/99 45,000 45,000,000
(Agreement dated 03/31/99 to be
repurchased at $45,006,094.
Collateralized by $29,315,000 U.S.
Treasury Bonds 11.25% due 02/15/15.
The value of the collateral is
$45,900,840.)
Par
Maturity (000) Value
-------- -------- ------------
REPURCHASE AGREEMENTS (CONTINUED)
Merrill Lynch
4.75% 04/01/99 $ 45,000 $ 45,000,000
(Agreement dated 03/31/99 to be
repurchased at $45,005,938.
Collateralized by $33,296,000 U.S.
Treasury Bonds 7.50% to 9.125% due
05/15/18 to 11/15/24. The value of
the collateral is $45,902,226.)
Morgan Stanley & Co.
5.08% 04/01/99 209,400 209,400,000
(Agreement dated 03/31/99 to be
repurchased at $209,429,520.
Collateralized by $92,559,000 U.S.
Treasury Strips 0.00% due 02/15/16
to 08/15/25 and $181,133,000 U.S.
Treasury Notes 5.50% to 7.50% due
10/31/99 to 07/15/06. The value of
the collateral is $213,865,228.)
Warburg, Dillon, Reed
4.75% 04/22/99 100,000 100,000,000
--------------
(Agreement dated 03/17/99 to be
repurchased at $100,475,000.
Collateralized by $322,547,000 U.S.
Treasury Strips 0.00% due 11/15/15
to 08/15/20. The value of the
collateral is $102,000,168.)
TOTAL REPURCHASE AGREEMENTS
(Cost $684,400,000) 684,400,000
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,057,567,941*) 102.4% 1,057,567,941
LIABILITIES IN EXCESS
OF OTHER ASSETS (2.4%) (24,994,313)
------ --------------
NET ASSETS (Equivalent to $1.00 per
share based on 381,436,919
Institutional shares, 578,381,381
Service shares, 72,719,654 Investor
A shares and 54,743 Investor C
shares outstanding) 100.0% $1,032,573,628
====== ==============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
INVESTOR A AND INVESTOR
C SHARE
($1,032,573,628 (DIVIDE) 1,032,592,697) $1.00
=====
- ---------------------
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
5
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS--99.4%
ARIZONA--1.1%
Arizona State School District Certificates
of Participation Series 1998A TAN
4.10% 07/30/99 $ 2,000 $ 2,003,377
Mojave County TECP (Citizen's
Utilities Project) Series 1999 MB
2.75% 05/10/99 2,500 2,500,000
3.20% 05/10/99 1,000 1,000,000
--------------
5,503,377
--------------
CALIFORNIA--21.5%
California Economic Development
Authority RB (California ISO Project)
Series 1998 DN
3.00%** 04/01/99 3,700 3,700,000
California Economic Development
Financing Authority RB (Independent
System Operator Corp. Project)
Series 1998C DN
3.25%** 04/01/99 3,100 3,100,000
California Health Facilities Authority RB
(Sutter Health Project)
Series 1996C DN
2.95%** 04/01/99 1,800 1,800,000
California Pollution Control Financing
Authority RB (Pacific Gas and
Electric Co. Project) Series 1996C DN
3.15%** 04/01/99 1,400 1,400,000
California Pollution Control Financing
Authority RB (Pacific Gas and
Electric Co. Project) Series 1996D DN
3.15%** 04/07/99 1,100 1,100,000
California Pollution Control Financing
Authority RB (Pacific Gas and
Electric Co. Project) Series 1996E DN
3.25%** 04/01/99 400 400,000
California Statewide Community
Development Authority RB
Series 1998A-23 DN
2.90%** 04/07/99 49,000 49,000,000
Los Angeles Community Redevelopment
Agency Multi-Family Housing RB
(Promenade Towers Project)
Series 1989 DN
2.95%** 04/07/99 3,200 3,200,000
Los Angeles County GO
Series 1998 TRAN
4.50% 06/30/99 15,000 15,029,559
Los Angeles Convention and Exhibit
Center Authority RB Series 1998D DN
2.90%** 04/07/99 4,000 4,000,000
M-S-R Public Power Agency RB
(San Juan Project) Series 1997D DN
2.70%** 04/01/99 17,300 17,300,000
Oakland Partners RB (Capital
Improvement Project) Series 1985 DN
3.00%** 04/07/99 7,700 7,700,000
San Francisco Redevelopment Agency
Refunding RB (South Beach Harbor
Project) Series 1986 DN
2.70%** 04/07/99 1,000 1,000,000
--------------
108,729,559
--------------
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
DELAWARE--1.3%
Delaware Economic Development
Authority RB (Normaco Income Project)
Series 1984 DN
3.30%** 04/07/99 $ 6,600 $ 6,600,000
--------------
FLORIDA--7.6%
Capital Projects Finance Authority RB
(Florida Hospital Association -
Capital Loan Program Project)
Series 1998A DN
3.05%** 04/07/99 2,500 2,500,000
Greater Orlando Airport Authority
RB Series 1998 MB
3.10% 05/20/99 5,104 5,104,000
Martin County PCRB (Florida Power
and Light Co. Project) Series 1994 DN
3.10%** 04/01/99 2,900 2,900,000
Miami-Dade County IDRB (Airbus
Service Co. Project) Series 1998A DN
3.20%** 04/07/99 5,000 5,000,000
Orange County IDRB (Lake Highland
Preparatory School Project)
Series 1998 DN
3.10%** 04/07/99 10,700 10,700,000
Putnam County Development Authority
PCRB (Florida Power and Light Co.
Project) Series 1994 DN
3.10%** 04/01/99 2,100 2,100,000
Sunshine State Government Financing
Authority RB Series 1999 TECP
3.25% 06/11/99 5,500 5,500,000
Sunshine State Governmental Finance
Commission RB Series 1986 MB
2.90% 04/09/99 5,000 5,000,000
--------------
38,804,000
--------------
GEORGIA--3.6%
Burke County Development Authority RB
(Oglethorpe Power Corp.
Project) Series 1996 MB
3.45% 05/01/99 5,000 5,000,000
Forsyth County IDRB (American BOA,
Inc. Project) Series 1995 DN
3.20%** 04/07/99 3,000 3,000,000
Monroe County Development Authority
PCRB (Oglethorpe Power Corp.
Project) Series 1997 MB
3.40% 05/27/99 5,330 5,330,000
Valdosta and Lowndes County Hospital
Authority RB (South Georgia Medical
Center Project) Series 1998 DN
2.95%** 04/07/99 4,900 4,900,000
--------------
18,230,000
--------------
HAWAII--1.4%
Hawaii State Department of Budget
and Finance TECP Series 1999 MB
3.25% 06/14/99 7,000 7,000,000
--------------
IDAHO--0.7%
Idaho GO Series 1998 TAN
4.50% 06/30/99 3,750 3,758,030
--------------
See accompanying notes to financial statements.
6
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS--8.7%
Chicago O'Hare International Airport
System RB (Airport Improvement
Project) Series 1996A MB
4.70% 01/01/00 $ 1,290 $ 1,303,738
Illinois Development Finance Authority
IDRB (Royal Continental Box Co.
Project) Series 1995A DN
3.09%** 04/07/99 800 800,000
Illinois Development Finance Authority
IDRB (Webster-Wayne Shopping
Center Project) Series 1995 DN
3.00%** 04/07/99 6,085 6,085,000
Illinois Development Finance Authority
RB (Illinois Power Co. Project)
Series 1993 MB
3.00% 08/26/99 4,000 4,000,000
Illinois Educational Facilities Authority
RB (Cultural Pooled Financing
Project) Series 1998 DN
2.95%** 04/07/99 5,000 5,000,000
Illinois Health Facilities Authority
RB (Children's Memorial Hospital
Project) Series 1990 MB
2.95% 06/25/99 3,000 3,000,000
Illinois Health Facilities Authority
RB (Evanston Hospital Corp.
Project) Series 1988 MB
3.05% 02/15/00 8,000 8,000,000
Illinois Health Facilities Authority
RB (Evanston Hospital Corp.
Project) Series 1990A MB
3.15% 08/02/99 8,500 8,500,000
Illinois Health Facilities Authority
Revolving Fund Pooled Financing
Program RB (The University of
Chicago Project) Series 1994 MB
2.95% 05/03/99 4,800 4,800,000
Roselle Village IDRB (Abrasive-Form,
Inc. Project) Series 1995 DN
3.43%** 04/07/99 1,900 1,900,000
Village of Schiller Park IDRB (Victor
Products Corp. Project)
Series 1995 DN
3.43%** 04/07/99 600 600,000
--------------
43,988,738
--------------
INDIANA--2.2%
Indiana Development Finance Authority
Refunding PCRB (Southern Indiana
Gas and Electric Co. Project)
Series 1998A MB
3.00% 03/01/00 5,000 5,000,000
Marion Industrial Economic Development
RB (The Synectic Partnership Project)
Series 1997 DN
3.00%** 04/07/99 3,800 3,800,000
Monroe County IDRB (Griner
Engineering Project) Series 1997 DN
3.25%** 04/07/99 2,462 2,462,000
--------------
11,262,000
--------------
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
KANSAS--0.4%
Wyandotte County/Kansas City RB
Series 1999C MB
3.30% 02/01/00 $ 2,222 $ 2,222,843
--------------
KENTUCKY--6.1%
Kentucky Interlocal School Transportation
Certificates of Participation RB
Series 1998 TRAN
3.90% 06/30/99 24,000 24,019,108
Kentucky Housing Authority RB
Series 1999C MB
3.20% 07/01/99 1,000 1,000,000
Pulaski County Solid Waste Disposal
RB (National Rural Utilities for East
Kentucky Power Project)
Series 1999B MB
2.80% 08/15/99 5,900 5,900,000
--------------
30,919,108
--------------
LOUISIANA--4.9%
Plaquemines Port Harbor and Terminal
District Marine Terminal Facilities
RB (Electro-Coal Transfer Project)
Series 1985A MB
3.05% 04/09/99 22,100 22,100,000
3.00% 06/14/99 3,000 3,000,000
--------------
25,100,000
--------------
MARYLAND--6.3%
Anne Arundel County RB (Mountain
Ridge Apartments Project)
Series 1996D DN
3.30%** 04/07/99 6,235 6,235,000
Baltimore County RB (Shade Tree
Trace Project) Series 1996 DN
3.30%** 04/07/99 6,425 6,425,000
Maryland Finance Authority IDRB
(Baltimore International Culinary
Project) Series 1994 DN
3.15%** 04/07/99 3,525 3,525,000
Maryland Health and Higher
Education Authority RB (Norwood
School Project) Series 1998 DN
3.14%** 04/07/99 10,505 10,505,000
Maryland IDA Finance RB (Brass
Mill Road Limited Partnership
Facility Project) Series 1995 DN
3.30%** 04/07/99 3,105 3,105,000
Maryland IDA Finance RB (Patapsco
Associates LP Facility Project)
Series 1995 DN
3.30%** 04/07/99 2,040 2,040,000
--------------
31,835,000
--------------
MASSACHUSETTS--3.1%
Massachusetts Health and Education
Facilities Authority RB (Harvard
University Project)
Series 1996Q-1 DN
2.85%** 04/07/99 7,000 7,000,000
See accompanying notes to financial statements.
7
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET Portfolio (CONTINUED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
MASSACHUSETTS (CONTINUED)
Massachusetts Housing Finance
Agency Multi-Family Development
RB (Princeton Crossing Project)
Series 1996A DN
2.95%** 04/07/99 $ 7,000 $ 7,000,000
Whiteman-Hanson Regional School
District GO Series 1999 BAN
3.50% 03/24/00 1,850 1,855,239
--------------
15,855,239
--------------
MISSOURI--1.7%
Kansas City IDRB (Mid-America Health
Services Project) Series 1984 DN
3.20%** 04/07/99 5,200 5,200,000
Missouri Environmental Improvement
and Energy Resource Authority RB
(Kansas City Power and Light Co.
Project) Series 1992 DN
3.00%** 04/07/99 3,600 3,600,000
--------------
8,800,000
--------------
NEBRASKA--0.4%
Nebraska Investment Finance Authority
Multi-Family Loan RB (Apple Creek
Associates Project) Series 1985A DN
3.26%** 04/07/99 1,900 1,900,000
--------------
NEW JERSEY--1.6%
Essex County Improvement Authority
GO Series 1999 BAN
3.50% 03/31/00 3,000 3,010,142
South Jersey Transportation Authority
RB Series 1998 MB
2.95% 11/03/99 5,000 5,000,000
--------------
8,010,142
--------------
NEW MEXICO--0.4%
New Mexico GO Series 1998 TRAN
3.75% 06/30/99 2,000 2,003,743
--------------
NEW YORK--0.5%
New York City GO Series 1993B-2 DN
3.40%** 04/01/99 2,400 2,400,000
--------------
NORTH CAROLINA--1.6%
Charlotte-Mecklenburg Hospital Authority
RB (Health Care System Project)
Series 1996C DN
2.90%** 04/07/99 6,600 6,600,000
North Carolina Medical Care
Commission Hospital RB (Baptist
Hospital Project) Series 1996 DN
3.05%** 04/07/99 1,200 1,200,000
North Carolina Medical Care
Commission Hospital RB (Moses
Cone Health System Project)
Series 1998 DN
3.10%** 04/07/99 500 500,000
--------------
8,300,000
--------------
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH DAKOTA--0.8%
Fargo IDRB (Owen Industries, Inc.
Project) Series 1997 DN
3.25%** 04/07/99 $ 1,000 $ 1,000,000
Mercer County Solid Waste Disposal
RB (National Rural Utilities Project)
Series 1995A MB
2.90% 09/01/99 2,900 2,900,000
--------------
3,900,000
--------------
OHIO--2.8%
Clinton County Hospital RB (Ohio
Hospital Capital, Inc. Pooled
Financing Project) Series 1998 DN
3.10%** 04/07/99 2,000 2,000,000
Fairfield County Water System
Improvement GO Series 1998 BAN
4.45% 07/27/99 1,175 1,177,723
Montgomery County Limited Obligation
RB (Society of St. Vincent de Paul
Project) Series 1996 DN
3.10%** 04/07/99 1,800 1,800,000
Newark GO Series 1999 BAN
3.30% 09/10/99 1,000 1,001,077
Ohio Air Quality Development Authority
RB Series 1985B DN
3.30%** 04/01/99 1,300 1,300,000
Warren County Health Care Facilities
RB (Otterbein Homes Project)
Series 1998B DN
2.95%** 04/07/99 4,000 4,000,000
Youngstown IDRB (Portage Transformer
Co. Project) Series 1996 DN
3.25%** 04/01/99 2,880 2,880,000
--------------
14,158,800
--------------
OKLAHOMA--0.4%
Muskogee Industrial Trust PCRB
(Oklahoma Gas and Electric Co.
Project) Series 1995A DN
3.15%** 04/07/99 2,000 2,000,000
--------------
OREGON--3.5%
Oregon Health, Housing, Education,
and Cultural Facility Authority RB
(Peacehealth Project) Series 1998 DN
3.05%** 04/07/99 15,000 15,000,000
Portland Multi-Family Housing RB
(Village of Lovejoy Fountain Project)
Series 1997 DN
3.05%** 04/07/99 3,000 3,000,000
--------------
18,000,000
--------------
PENNSYLVANIA--3.6%
Pennsylvania Higher Education Facilities
Authority RB (The University of
Pennsylvania Health Services Project)
Series 1998B DN
3.20%** 04/07/99 10,695 10,695,000
Schuylkill County IDA Resource
Recovery RB (Northeastern
Power Co. Project)
Series 1997B DN
3.25%** 04/01/99 7,500 7,500,000
--------------
18,195,000
--------------
See accompanying notes to financial statements.
8
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET Portfolio (CONCLUDED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
RHODE ISLAND--2.3%
Rhode Island Housing and Mortgage
Finance Corp. GO
Series 1998B-24 MB
3.15% 12/15/99 $ 1,700 $ 1,700,000
Rhode Island State and Providence
Plantations Trust Certificate GO
Series 1998A DN
3.16%** 04/01/99 10,000 10,000,000
------------
11,700,000
------------
SOUTH CAROLINA--0.8%
South Carolina Economic Development
Authority RB (Catholic Diocese
Project) Series 1998 DN
3.05%** 04/07/99 4,000 4,000,000
------------
TENNESSEE--2.9%
Chattanooga IDRB (Southern Foundry
Supply, Inc. Project) Series 1996 DN
3.20%** 04/07/99 1,300 1,300,000
Metropolitan Government Nashville and
Davidson County Health and
Education Facilities Board RB
(Meharry Medical College Project)
Series 1998 DN
3.00%** 04/07/99 6,605 6,605,000
Montgomery County Public Building
Authority Pooled Financing RB
(Montgomery County Loan Project)
Series 1996 DN
3.00%** 04/07/99 1,000 1,000,000
Morristown IDRB (Bos Automotive
Products, Inc. Project)
Series 1997 DN
3.20%** 04/07/99 2,000 2,000,000
Tennessee State School Board Authority
Higher Educational Facilities RB
Series 1999 TECP
3.15% 04/23/99 3,600 3,600,000
------------
14,505,000
------------
TEXAS--2.1%
Comal County IDRB (Simpson Co.
Project) Series 1996 DN
3.25%** 04/07/99 2,600 2,600,000
Sabine River Authority PCRB
(Texas Utilities Electric Co. Project)
Series 1995C DN
3.45%** 04/01/99 3,100 3,100,000
Texas go Series 1998 TRAN
4.50% 08/31/99 5,000 5,031,713
------------
10,731,713
------------
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
UTAH--0.5%
Utah GO Series 1993 MB
4.40% 07/01/99 $ 2,375 $ 2,383,938
------------
VIRGINIA--2.0%
Metropolitan Washington D.C. Airports
Authority, Virginia Passenger Facility
Flexible Term Notes Series 1999 TECP
3.00% 04/20/99 7,500 7,500,000
2.80% 05/14/99 2,500 2,500,000
------------
10,000,000
------------
WASHINGTON--0.9%
Grant County Industrial Development
Corp. of Port District No. 1 RB
(Dodson Road Orchards, LLC
Project) Series 1998 DN
3.05%** 04/07/99 2,500 2,500,000
Yakima County Public Corp. RB
(Jeld-Wen Income Project)
Series 1988 DN
3.00%** 04/07/99 1,940 1,940,000
------------
4,440,000
------------
WISCONSIN--1.7%
Wisconsin GO Series 1999 TECP
2.60% 04/05/99 8,744 8,744,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $503,980,230*) 99.4% 503,980,230
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.6% 3,015,902
------ ------------
NET ASSETS (Equivalent to $1.00 per
share based on 314,899,445
Institutional shares, 183,935,454
Service shares and 8,193,317 Investor
A shares outstanding) 100.0% $506,996,132
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE
AND INVESTOR A SHARE
($506,996,132 (DIVIDE) 507,028,216) $1.00
=====
- ---------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1999, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
9
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS--99.7%
NEW JERSEY--97.7%
Bergen County General Improvement
Notes GO Series 1998 MB
4.00% 11/15/99 $ 1,000 $ 1,007,028
Camden County Improvement Authority
RB (Jewish Community Center
Project) Series 1995 DN
2.90%** 04/07/99 850 850,000
Cedar Grove Township GO
Series 1999 BAN
3.50% 03/07/00 1,000 1,003,606
Clark Township GO Series 1999 BAN
3.28% 01/05/00 2,000 2,002,188
Cranford Township GO Series 1999 BAN
3.63% 01/18/00 2,050 2,058,025
East Windsor Regional School District
GO (County of Mercer School
Project) Series 1998 MB
4.60% 07/15/99 205 205,545
Essex County Public Improvement
Authority RB (County Asset Sale
Project) Series 1995 DN
2.85%** 04/07/99 5,000 5,000,000
Fanwood GO Series 1999 BAN
3.98% 01/05/00 700 704,036
Gloucester County GO Series 1998 MB
4.70% 06/01/99 1,205 1,207,181
Gloucester County Industrial Pollution
Control Financing Authority Refunding
RB (Mobil Oil Refining Co. Project)
Series 1993 DN
2.80%** 04/07/99 2,810 2,810,000
Haddonfield School District Unlimited
GO Series 1998 MB
4.00% 07/02/99 1,450 1,451,232
Hamilton Township General
Improvement and Sewer Utility Bonds
GO Series 1998 MB
4.50% 05/01/99 400 400,239
Harding Township GO Series 1998 BAN
3.77% 07/09/99 2,628 2,628,186
Jackson Township GO Series 1998 BAN
3.25% 12/14/99 3,029 3,033,128
Jefferson Township GO Series 1998 BAN
3.25% 02/17/00 1,000 1,002,567
Jersey City Municipal Utilities Authority
Water RB Series 1998 MB
3.65% 03/23/00 1,925 1,925,000
Jersey City State Operated School
District Certificates of Participation
Series 1998 MB
4.00% 06/01/99 1,280 1,280,717
Kinnelon GO Series 1999 BAN
4.00% 01/14/00 952 957,823
4.00% 02/04/00 952 958,635
Little Ferry Unlimited GO
Series 1998 BAN
3.75% 08/06/9 2,623 2,623,879
Maplewood Township GO
Series 1998 BAN
3.50% 10/22/99 2,253 2,257,122
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
Mercer County Improvement Authority
RB (Atlantic Financial & Johnson
Project) Series 1998 DN
2.95%** 04/07/99 $ 3,000 $ 3,000,000
Mount Olive Township GO
Series 1998 MB
4.70% 08/15/99 439 440,750
New Jersey Building Authority State
RB Series 1994 MB
4.40% 06/15/99 1,000 1,002,663
New Jersey Economic Development
Authority PCRB (Public Service
Electric & Gas Co. Project)
Series 1995A DN
2.80%** 04/07/99 2,170 2,170,000
New Jersey Economic Development
Authority RB (Bethany Baptist
Church Project) Series 1998 DN
2.90%** 04/07/99 1,000 1,000,000
New Jersey Economic Development
Authority RB (Chambers Cogen
Project) Series 1991 MB
2.90% 05/12/99 3,700 3,700,000
New Jersey Economic Development
Authority RB (Facile Holdings, Inc.
Project) Series 1998 DN
2.95%** 04/07/99 5,300 5,300,000
New Jersey Economic Development
Authority RB (Far Sighted
Investment LLC Project)
Series 1998A DN
3.05%** 04/07/99 1,180 1,180,000
New Jersey Economic Development
Authority RB (First Mortgage Cranes
Mill Project) Series 1997 DN
2.95%** 04/07/99 600 600,000
New Jersey Economic Development
Authority RB (Hamilton Industrial
Development Project) Series 1998 DN
2.85%** 04/07/99 2,000 2,000,000
New Jersey Economic Development
Authority RB (J. James Realty Co.
Project) Series 1998 DN
3.00%** 04/07/99 590 590,000
New Jersey Economic Development
Authority RB (Keystone Project)
Series 1992 MB
3.00% 04/30/99 3,000 3,000,000
New Jersey Economic Development
Authority RB (Local Housing Project)
Series 1992D-1 DN
3.00%** 04/07/99 1,285 1,285,000
New Jersey Economic Development
Authority RB (Nandan Co. Project)
Series 1995 DN
3.10%** 04/07/99 2,015 2,015,000
New Jersey Economic Development
Authority RB (Newark Fibers, Inc.
Project) Series 1998 DN
3.10%** 04/07/99 3,000 3,000,000
See accompanying notes to financial statements.
10
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
New Jersey Economic Development
Authority RB (Ninette Group LP
Project) Series 1998 DN
3.05%** 04/07/99 $ 1,000 $ 1,000,000
New Jersey Economic Development
Authority RB (St. James Prep. and
Social Service Project)
Series 1998 DN
2.90%** 04/07/99 1,000 1,000,000
New Jersey Economic Development
Authority RB (Venice Maid Foods
Project) Series 1997 DN
3.05%** 04/07/99 1,000 1,000,000
New Jersey Economic Development
Authority RB (Wechsler Coffee Corp.
Project) Series 1998 DN
3.00%** 04/07/99 1,500 1,500,000
New Jersey Economic Development
Authority RB (Winchester Gardens,
Ward Homestead Project)
Series 1995B DN
2.85%** 04/07/9 1,005 1,005,000
New Jersey Economic Development
Authority RB (Wood Hollow
Associates Project) Series 1997 DN
3.05%** 04/07/99 2,415 2,415,000
New Jersey Economic Development
Authority Refunding RB (New Jersey
Natural Gas Co. Project)
Series 1998C DN
2.60%** 04/07/99 700 700,000
New Jersey Economic Development
Authority RB (Thermal Energy,
LP Project) Series 1995 DN
2.90%** 04/07/99 6,000 6,000,000
New Jersey Economic Development
Authority Water Facilities RB
(United Water New Jersey, Inc.
Project) Series 1996A DN
3.00%** 04/01/99 2,200 2,200,000
New Jersey Health Care Facilities
Financial Authority RB (Centrastate
Medical Center, Inc. Project)
Series 1998 MB
3.15% 07/01/99 500 500,000
New Jersey Health Care Facilities
Financing Authority Refunding RB
(St. Barnabas Medical Center
Project) Series 1998A MB
4.25% 07/01/99 1,395 1,397,189
New Jersey Higher Education
Assistance Authority Student Loan
RB (New Jersey Class Loan Program
Project) Series 1997B MB
3.75% 06/01/99 1,400 1,400,000
New Jersey Housing and Mortgage
Finance Agency Tax-Exempt Eagle
Trust Certificates Series 1997A DN
3.06%** 04/07/99 4,000 4,000,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
New Jersey Sports and Exposition
Authority Municipal Trust Certificates
Series 1998A DN
3.06%** 04/07/99 $ 4,875 $ 4,875,000
New Jersey Sports and Exposition
Authority RB Series 1992C DN
2.80%** 04/07/99 8,300 8,300,000
New Jersey State Education Facility
Infrastructure RB Series 1998 DN
2.90%** 04/01/99 2,900 2,900,000
New Jersey Transportation Trust Fund
Authority Trust Receipts RB
(Transportation System Project)
Series 1996A DN
2.90%** 04/07/99 7,500 7,500,000
New Jersey Turnpike Authority RB
Series 1991D DN
2.70%** 04/07/99 5,300 5,300,000
Ocean County College Capital
Improvement GO Series 1998 MB
4.05% 06/01/99 200 200,113
Pequannock Township GO
Series 1998 BAN
3.25% 12/03/99 1,000 1,001,304
Point Pleasant General Improvement
Unlimited GO Series 1998 MB
4.35% 09/01/99 235 235,814
Port Authority of New York and
New Jersey RB Series 1991 MB
2.95% 06/11/99 2,000 2,000,000
Port Authority of New York and
New Jersey Versatile Structure
Obligations RB Series 1995 DN
3.20%** 04/07/99 200 200,000
Port Authority of New York and
New Jersey Versatile Structure
Obligations RB Series 1995 MB
2.85% 05/12/99 4,535 4,535,000
Port Authority of New York and
New Jersey Versatile Structure
Obligations RB Series 1996-4 DN
3.20%** 04/01/99 700 700,000
Salem County Pollution Control
Financing Authority PCRB (Atlantic
City Electric Co. Project)
Series 1997A DN
2.60%** 04/07/99 1,200 1,200,000
Salem County Pollution Control
Financing Authority PCRB
(Atlantic City Electric Co. Project)
Series 1997B DN
2.70%** 04/07/99 1,000 1,000,000
Salem County Pollution Control
Financing Authority PCRB
(E.I. DuPont de Nemours & Co.
Project) Series 1982A DN
3.00%** 04/07/99 9,600 9,600,000
Salem County Pollution Control
Financing Authority PCRB (Public
Service Electric and Gas Project)
Series 1997 DN
2.70%** 04/07/99 1,500 1,500,000
See accompanying notes to financial statements.
11
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
Sea Isle City Unlimited Tax GO
Series 1998 MB
4.00% 10/01/99 $ 200 $ 200,585
Seaside Heights GO Series 1999 BAN
3.60% 02/18/00 1,964 1,973,772
South Jersey Transportation Authority
RB Series 1998 MB
2.95% 11/03/99 3,000 3,000,000
Washington Township Municipal
Utilities Authority Utility Systems RB
Series 1999 MB
3.85% 02/01/00 200 201,063
West Orange GO Series 1998 BAN
3.25% 11/16/99 1,650 1,652,813
------------
147,842,203
------------
GUAM--1.7%
Guam Power Authority RB
Series 1998 TECP
2.75% 05/13/99 2,500 2,500,000
------------
PUERTO RICO--0.3%
Puerto Rico Government Development
Bank Refunding RB Series 1985 DN
2.75%** 04/07/99 400 400,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $150,742,203*) 99.7% 150,742,203
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.3% 508,037
------ ------------
NET ASSETS (Equivalent to $1.00 per
share based on 83,085,806
Institutional shares, 34,968,281
Service shares, 33,209,055 Investor A
shares and 52 Investor B shares
outstanding) 100.0% $151,250,240
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
INVESTOR A AND INVESTOR B
SHARE
($151,250,240 (DIVIDE) 151,263,194) $1.00
=====
- ---------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1999, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
12
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS--99.7%
NORTH CAROLINA--99.7%
Asheville Certificates of Participation
Series 1993A DN
2.95%** 04/07/99 $ 800 $ 800,000
Buncombe County GO Series 1997 DN
3.10%** 04/07/99 6,000 6,000,000
Buncombe County Industrial Facilities
and Pollution Control Financing
Authority PCRB (Lustar Dyeing, Inc.
Project) Series 1998 DN
3.20%** 04/07/99 2,880 2,880,000
Catawba County Industrial Facilities
and Pollution Control Financing
Authority IDRB (WSMP, Inc. Project)
Series 1992 DN
3.10%** 04/07/99 400 400,000
Charlotte Airport Refunding RB
Series 1993A DN
2.90%** 04/07/99 4,315 4,315,000
Charlotte-Mecklenburg Hospital
Authority RB (Health Care System
Project) Series 1996B DN
3.00%** 04/07/99 2,250 2,250,000
Charlotte-Mecklenburg Hospital
Authority RB (Health Care System
Project) Series 1996C DN
2.90%** 04/07/99 1,600 1,600,000
Charlotte-Mecklenburg Hospital
Authority RB (Health Care System
Project) Series 1996D DN
3.05%** 04/07/99 1,000 1,000,000
Charlotte GO Series 1989 MB
6.75% 06/01/99 1,500 1,524,143
Cumberland County Industrial Facilities
and Pollution Control Financing
Authority IDRB (BG Properties,
LLC Project) Series 1998 DN
3.25%** 04/07/99 1,450 1,450,000
Dare County GO Series 1990 MB
6.90% 03/01/00 500 526,229
Durham GO Series 1993 DN
3.05%** 04/07/99 4,335 4,335,000
Gaston County Industrial Facilities and
Pollution Control Financing Authority
PCRB (Gold Medal Homes Project)
Series 1996 DN
3.10%** 04/07/99 1,555 1,555,000
Gaston County Recreational Facilities
RB (Gaston County Family Young
Men's Christian Association Project)
Series 1998 DN
3.00%** 04/07/99 2,500 2,500,000
Gates County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Coxe-Lewis Corp. Project)
Series 1999 DN
3.15%** 04/07/99 2,200 2,200,000
Green County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Federal Paper Board Co.,
Inc. Project) Series 1989 DN
3.10%** 04/07/99 1,100 1,100,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Green County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Snow Hill Tape Corp. Project)
Series 1995 DN
3.10%** 04/07/99 $ 2,000 $ 2,000,000
Greensboro Certificates of Participation
(Equipment Project) Series 1994 DN
3.10%** 04/07/99 1,600 1,600,000
Greensboro Certificates of Participation
(Greensboro Coliseum Complex
Improvement Project)
Series 1995A DN
2.95%** 04/07/99 2,000 2,000,000
Greensboro GO Public Improvement
Bonds Series 1998 DN
2.95%** 04/07/99 2,560 2,560,000
Guilford County GO Series 1989 MB
6.80% 06/01/99 1,000 1,020,031
Guilford County Industrial Facilities
and Pollution Control Financing
Authority IDRB (U.S. Label Corp.
Project) Series 1995 DN
3.10%** 04/07/99 2,500 2,500,000
Guilford County Industrial Facilities
and Pollution Control Financing
Authority PCRB (L&E Packaging, Inc.
Project) Series 1996 DN
3.10%** 04/07/99 1,550 1,550,000
Haywood Regional Medical Center
RB Series 1997 DN
3.00%** 04/07/99 1,800 1,800,000
Henderson County GO Series 1998 MB
3.25% 06/01/99 560 560,223
Lee County Industrial Facilities and
Pollution Control Financing Authority
Refunding IDRB (Trion, Inc. Project)
Series 1995 DN
3.00%** 04/07/99 1,700 1,700,000
Lincoln County GO Series 1999 MB
3.50% 06/01/99 285 285,227
Mecklenberg County GO
Series 1989 MB
6.60% 04/01/99 680 683,400
Mecklenburg County GO
Series 1996B DN
2.90%** 04/01/99 2,100 2,100,000
Mecklenburg County GO
Series 1996C DN
2.90%** 04/01/99 200 200,000
Mecklenburg County GO
Series 1998C DN
3.00%** 04/07/99 5,000 5,000,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Aplix, Inc. Project)
Series 1996 DN
3.10%** 04/07/99 3,100 3,100,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Griffith Micro Science
Project) Series 1995 DN
3.00%** 04/07/99 1,500 1,500,000
See accompanying notes to financial statements.
13
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Otto Industries, Inc.
Project) Series 1988 DN
3.10%** 04/07/99 $ 2,950 $ 2,950,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority RB (Piedmont Plastics
Project) Series 1997 DN
3.25%** 04/07/99 4,700 4,700,000
Moore County Public Improvement
Bond GO Series 1998 MB
4.40% 06/01/99 600 600,680
New Hanover County Industrial
Facilities IDRB (Interroll Corp.
Project) Series 1989 DN
3.10%** 04/01/99 995 995,000
North Carolina Agricultural Finance
Authority Agricultural Development
RB (Harvey Fertilizer & Gas Co.
Project) Series 1995 DN
3.10%** 04/07/99 1,640 1,640,000
North Carolina Eastern Municipal
Power Agency Power System
RB Series 1988B TECP
2.85% 04/01/99 2,000 2,000,000
2.95% 06/09/99 7,000 7,000,000
North Carolina Eastern Municipal
Power Agency Power System RB
Series 1999 TECP
3.05% 05/04/99 3,000 3,000,000
North Carolina Eastern Municipal
Power Agency Power System RB
Series 1999A MB
4.25% 01/01/00 15,135 15,274,494
North Carolina Educational Facilities
Finance Agency RB (Duke University
Project) Series 1991B DN
2.95%** 04/07/99 200 200,000
North Carolina Educational Facilities
Finance Agency RB (Duke University
Project) Series 1992A DN
2.95%** 04/07/99 4,600 4,600,000
North Carolina Educational Facilities
Finance Agency RB (Gardner-Webb
University Project) Series 1997 DN
3.00%** 04/07/99 2,400 2,400,000
North Carolina Educational Facilities
Finance Agency RB (Greensboro
College Project) Series 1997 DN
2.90%** 04/07/99 500 500,000
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1990 DN
3.05%** 04/07/99 3,400 3,400,000
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1996 DN
3.05%** 04/07/99 1,000 1,000,000
North Carolina GO Series 1992A MB
6.10% 03/01/00 1,975 2,029,971
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
North Carolina Highway GO
Series 1997A MB
4.50% 05/01/99 $ 6,000 $ 6,004,317
North Carolina Medical Care
Commission Health Care Facility RB
(Lutheran Services for the Aging
Project) Series 1998 DN
3.05%** 04/07/99 4,000 4,000,000
North Carolina Medical Care
Commission Health Care Facility RB
(Methodist Home Project) 1988 DN
3.60%** 04/07/99 2,070 2,070,000
North Carolina Medical Care
Commission Hospital RB (Baptist
Hospital Project) Series 1996 DN
3.05%** 04/07/99 400 400,000
North Carolina Medical Care
Commission Hospital RB (Duke
University Hospital Project)
Series 1985D DN
2.95%** 04/07/99 1,000 1,000,000
North Carolina Medical Care
Commission Hospital RB (Lincoln
Health System Project)
Series 1996A DN
3.00%** 04/07/99 4,500 4,500,000
North Carolina Medical Care
Commission Hospital RB
(Moses Cone Health System
Project) Series 1998 DN
3.10%** 04/07/99 6,200 6,200,000
North Carolina Medical Care
Commission Hospital RB (Park Ridge
Hospital Project) Series 1988 DN
3.00%** 04/07/99 3,700 3,700,000
North Carolina Medical Care
Commission Hospital RB (Pooled
Equipment Financing Project)
Series 1985 DN
2.95%** 04/07/99 900 900,000
North Carolina Medical Care
Commission Hospital RB (Pooled
Financing Project) Series 1994 DN
3.00%** 04/07/99 2,300 2,300,000
North Carolina Medical Care
Commission RB (Angel Medical
Center, Inc. Project) Series 1997 DN
3.00%** 04/07/99 2,900 2,900,000
North Carolina Medical Care
Commission RB (Lutheran Retirement
Project) Series 1999 DN
3.00%** 04/07/99 3,000 3,000,000
North Carolina Municipal Power
Agency RB (Catawba Project)
Series 1999A TECP
2.85% 04/12/99 1,000 1,000,000
2.75% 05/03/99 2,300 2,300,000
2.75% 05/04/99 4,600 4,600,000
3.10% 05/12/99 2,415 2,415,000
2.85% 05/18/99 4,000 4,000,000
7.00% 01/01/00 3,435 3,600,045
See accompanying notes to financial statements.
14
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Person County Industrial Facilities
and Pollution Control Financing Authority
RB (Carolina Power & Light Co.
Project) Series 1992A DN
3.10%** 04/07/99 $ 1,200 $ 1,200,000
Pitt County RB (Pitt County Memorial
Hospital Project) Series 1995 MB
4.20% 12/01/99 725 730,495
Raleigh GO Series 1996 MB
5.10% 06/01/99 1,000 1,003,453
Raleigh-Durham Airport Authority
Special Facility Refunding RB
(American Airlines, Inc. Project)
Series 1995A DN
3.20%** 04/01/99 1,400 1,400,000
Randolph County Industrial Facilities
and Pollution Control Finance
Authority PCRB (Jowat Corp. Project)
Series 1999 DN
3.10%** 04/01/99 3,000 3,000,000
Rockingham County Industrial
Facilities and Pollution
Control Finance Authority
(Medibeg USA, Inc.
Project) Series 1997 DN
3.10%** 04/07/99 3,000 3,000,000
Rockingham County Industrial Facilities
and Pollution Control Finance
Authority PCRB (Whiteridge, Inc.
Project) Series 1998 DN
3.25%** 04/07/99 1,400 1,400,000
Rutherford County Industrial Facilities
and Pollution Control Finance
Authority PCRB (Thieman Metal
Technologies, LLC Project)
Series 1998 DN
3.25%** 04/07/99 3,000 3,000,000
Sampson County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Dubose Strapping,
Inc. Project) Series 1997 DN
3.20%** 04/07/99 1,800 1,800,000
Union County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Rock-Tenn Converting Co.
Project) Series 1997 DN
3.20%** 04/07/99 1,750 1,750,000
University of North Carolina RB
(Chapel Parking System Board of
Governors of the UNC Project)
Series 1997C DN
2.90%** 04/07/99 1,000 1,000,000
University of North Carolina System
Pool RB Series 1998B MB
3.25% 10/01/99 2,420 2,422,348
Wake County Industrial Facilities and
Pollution Control Financing Authority
PCRB (Carolina Power & Light Co.
Project) Series 1985A DN
3.05%** 04/07/99 1,480 1,480,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
PCRB (Carolina Power & Light Co.
Project) Series 1985B DN
2.95%** 04/07/99 5,300 5,300,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Wake County Industrial Facilities and
Pollution Control Financing Authority
Refunding PCRB (Carolina Power &
Light Co. Project) Series 1990A TECP
2.60% 04/07/99 $ 6,300 $ 6,300,000
3.15% 04/07/99 6,500 6,500,000
Warren County Industrial Facilities and
Pollution Control Financing Authority
PCRB (Glen Raven Mills, Inc. Project)
Series 1997 DN
3.10%** 04/07/99 1,500 1,500,000
Washington County Industrial Facilities
Pollution Control Financing Authority
PCRB (Mackeys Ferry Sawmill, Inc.
Project) Series 1997 DN
3.10%** 04/07/99 1,400 1,400,000
Wilkes County Industrial Facilities and
Pollution Control Financing Authority
PCRB (Schas Circular Industries, Inc.
Project) Series 1997A DN
3.20%** 04/07/99 6,325 6,325,000
Wilson County Industrial Facilities and
Pollution Control Financing Authority
IDRB (North Carolina Chip Co.
Project) Series 1989 DN
3.10%** 04/07/99 200 200,000
Winston-Salem Certificates of
Participation RB (Risk Acceptance
Management Corp. Project)
Series 1988 DN
3.05%** 04/07/99 445 445,000
------------
222,930,056
------------
PUERTO RICO--0.0%
Puerto Rico Industrial, Medical and
Environmental Pollution Control
Facilities Financing Authority PCRB
(Ana G. Mendez Foundation Project)
Series 1985 DN
2.90%** 04/07/99 145 145,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $223,075,056*) 99.7% 223,075,056
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.3% 590,945
------ ------------
NET ASSETS (Equivalent to $1.00 per
share based on 219,439,776
Institutional shares, 3,826,989
Service shares and 397,607 Investor A
shares outstanding) 100.0% $223,666,001
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($223,666,001 (DIVIDE) 223,664,372) $1.00
=====
- ---------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1999, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
15
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS--99.6%
OHIO--99.6%
Allen County GO Series 1998 BAN
4.05% 04/13/99 $ 1,000 $ 1,000,095
Bellbrook GO Series 1998 BAN
3.55% 10/21/99 1,800 1,801,927
Brecksville GO Series 1998 BAN
3.40% 12/15/99 490 490,522
Butler County GO Series 1998 BAN
3.55% 10/21/99 1,000 1,002,153
Clermont County Health Facilities
Authority RB (Mercy Health System
Project) Series 1996A DN
3.00%** 04/07/99 5,000 5,000,000
Cleveland Airport System RB
Series 1997D DN
3.00%** 04/07/99 3,000 3,000,000
Clinton County Hospital RB (Ohio
Hospital Capital, Inc. Pooled
Financing Project) Series 1998 DN
3.10%** 04/01/99 2,100 2,100,000
Columbus GO Series 1998C MB
4.55% 08/15/99 1,000 1,006,082
Cuyahoga County Hospital RB
(Cleveland Clinic Foundation
Project) Series 1997A DN
3.00%** 04/01/99 1,300 1,300,000
Cuyahoga County Hospital RB
(Cleveland Clinic Foundation Project)
Series 1998A DN
3.00%** 04/07/99 700 700,000
Cuyahoga County Hospital Refunding
RB (Metrohealth Systems Project)
Series 1997 MB
5.00% 02/15/00 1,000 1,016,613
Cuyahoga County IDRB (Actron
Manufacturing Project)
Series 1998 DN
3.25%** 04/01/99 1,410 1,410,000
Cuyahoga County IDRB (Northstar
Project) Series 1998 DN
3.10%** 04/01/99 3,555 3,555,000
Cuyahoga County IDRB (Pleasant Lake
Associates Project) Series 1995 DN
3.00%** 04/07/99 875 875,000
Delaware County IDRB (Air Waves, Inc.
Project) Series 1995 DN
3.10%** 04/07/99 935 935,000
East Palestine GO Series 1998 BAN
3.75% 07/30/99 2,000 2,000,000
Erie County IDRB (Brighton Manor Co.
Project) Series 1986 DN
3.20%** 04/07/99 1,160 1,160,000
Franklin County Hospital Refunding RB
(U.S. Health Corp. of Columbus
Project) Series 1996A DN
3.05%** 04/07/99 450 450,000
Franklin County IDRB (Alco Standard
Corp. Project) Series 1994 DN
3.05%** 04/07/99 900 900,000
Gates Mills Village GO Series 1998 BAN
3.90% 06/15/99 1,000 1,000,316
Greene County Economic Development
RB (Ashford Center Project)
Series 1995 DN
3.15%** 04/07/99 1,895 1,895,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Greene County IDRB (AFC Stamping &
Production, Inc., Barsplice Products
Project) Series 1995 DN
3.10%** 04/07/99 $ 985 $ 985,000
Greene County IDRB (Antioch
Publishing Co. Project)
Series 1996 DN
3.25%** 04/07/99 1,800 1,800,000
Hamilton County Hospital Facilities RB
(Beechwood Home Project)
Series 1997 DN
3.12%** 04/01/99 4,050 4,050,000
Hilliard GO Series 1998A BAN
4.05% 04/08/99 750 750,055
Hilliard GO Series 1998B BAN
3.85% 09/09/99 1,100 1,101,401
Lakewood GO Series 1999 BAN
3.25% 03/10/00 2,870 2,877,850
Lebanon GO Series 1998 BAN
3.91% 09/02/99 1,150 1,151,216
Lebanon GO Series 1999 BAN
3.23% 09/02/99 1,000 1,001,163
Lucas County Health Facilities Authority
RB (Lutheran Homes Society Project)
Series 1996 DN
3.00%** 04/07/99 3,990 3,990,000
Marysville GO Series 1998 BAN
3.91% 04/15/99 1,000 1,000,097
Medina County Housing RB (The Oaks
At Medina Project) Series 1997B DN
3.10%** 04/07/99 1,000 1,000,000
Middleburg Heights GO
Series 1998 BAN
3.95% 08/12/99 2,800 2,802,459
Montgomery County Health Care
Facilities RB Series 1998 DN
3.15%** 04/12/99 3,700 3,700,000
North Olmsted GO Series 1998-2 BAN
3.95% 09/23/99 2,675 2,678,087
Oakwood GO Series 1998 BAN
3.50% 12/29/99 1,858 1,860,672
Ohio Air Quality Development Authority
PCRB (JMG Funding Ltd.
Partnership Project)
Series 1994B DN
3.00%** 04/07/99 2,400 2,400,000
Ohio Air Quality Development Authority
PCRB (JMG Funding Ltd.
Partnership Project)
Series 1995B DN
3.00%** 04/07/99 3,000 3,000,000
Ohio Air Quality Development Authority
PCRB (Pennsylvania Power Co.
Project) Series 1997 DN
3.00%** 04/07/99 900 900,000
Ohio Air Quality Development Authority
PCRB (PPG Industries, Inc. Project)
Series 1988A DN
3.30%** 04/07/99 7,000 7,000,000
Ohio Air Quality Development Authority
PCRB (Timken Co. Project)
Series 1992 DN
3.05%** 04/07/99 1,600 1,600,000
See accompanying notes to financial statements.
16
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
OHIO MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Ohio Environmental Improvement RB
(U.S. Steel Corp. Project)
Series 1986 DN
2.85%** 04/07/99 $ 1,300 $ 1,300,000
Ohio Housing Finance Agency
Multi-Family Housing RB (Lincoln
Park Association Project)
Series 1985 MB
3.60% 05/01/99 645 645,000
Ohio Housing Finance Agency
Multi-Family Housing RB (The Club
at Spring Valley Apartments Project)
Series 1996A DN
3.05%** 04/07/99 4,500 4,500,000
Ohio IDRB (Anomatic Corp. Project)
Series 1994 DN
3.25%** 04/01/99 1,260 1,260,000
Ohio IDRB (Ashley Ward, Inc. Project)
Series 1997 DN
3.15%** 04/07/99 1,840 1,840,000
Ohio State Building Authority RB
(Juvenile Correctional Facilities
Improvement Project)
Series 1999A MB
3.50% 10/01/99 1,675 1,679,114
Ohio State Building Authority RB
(Juvenile Correctional Facilities
Improvement Project)
Series 1999B MB
3.50% 04/01/99 1,300 1,300,000
3.50% 10/01/99 345 345,847
Ohio State Building Authority RB (State
Facilities-Adult Correctional Project)
Series 1996A MB
5.00% 04/01/99 2,000 2,000,000
Ohio State Higher Education Facility RB
Series 1990A MB
6.70% 05/01/99 500 501,414
Ohio State Higher Education Facility
Commission RB (Oberlin College
Project) Series 1985 DN
2.95%** 04/07/99 900 900,000
Ohio State Liquor Profits RB
Series 1998 MB
6.85% 03/01/00 1,000 1,034,919
Ohio State Public Facilities Commission
Higher Education Facilities RB
Series 1989A MB
7.25% 05/01/99 250 261,302
Ohio Water Authority Solid Waste
Disposal RB (American Steel &
Wire Corp. Project) Series 1995 DN
3.15%** 04/07/99 8,100 8,100,000
Ohio Water Development Authority
Refunding RB (Timken Co. Project)
Series 1992 DN
3.05%** 04/07/99 1,800 1,800,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Olentangy Local School District GO
Series 1997 MB
4.15% 12/01/99 $ 500 $ 503,095
Portage County IDRB (Action Super
Abrasive Project) Series 1996 DN
3.25%** 04/07/99 1,110 1,110,000
Portage County IDRB (Lovejoy
Industries Project) Series 1994 DN
3.30%** 04/07/99 1,325 1,325,000
Sandusky County IDRB (Brighton
Manor Co. Project) Series 1986 DN
3.20%** 04/07/99 1,500 1,500,000
Shaker Heights GO Series 1999 BAN
3.20% 09/08/99 1,000 1,000,853
Springboro GO Series 1998 BAN
3.40% 01/27/00 1,200 1,202,391
Strongsville GO Series 1998 BAN
3.40% 11/04/99 775 776,115
Strongsville IDRB (Web Plastics
Co. Project) Series 1997 DN
3.25%** 04/07/99 1,045 1,045,000
Summit County IDRB (Austin Printing
Co., Inc. Project) Series 1994 DN
3.25%** 04/07/99 470 470,000
Summit County IDRB (Forest
Manufacturing Project)
Series 1994 DN
3.20%** 04/01/99 300 300,000
Summit County IDRB (JRB Co.,
Inc. Project) Series 1997 DN
3.25%** 04/01/99 3,300 3,300,000
Toledo Services Special Assessment
Notes Series 1997 DN
3.05%** 04/07/99 2,900 2,900,000
Toledo-Lucas County Port Authority
Development RB (Frostbite Brands,
Inc. Project) Series 1993 DN
3.35%** 04/01/99 940 940,000
Trumbull County Health Care Facilities
RB Series 1998 DN
3.15%** 04/01/99 1,800 1,800,000
Washington County GO
Series 1999 BAN
3.25% 11/18/99 1,550 1,552,886
Westlake Economic Development RB
(Oaks Development Co. Project)
Series 1994 DN
3.15%** 04/07/99 1,845 1,845,000
Westlake GO Series 1999 BAN
3.15% 12/01/99 470 470,000
Youngstown IDRB (Portage Transformer
Co. Project) Series 1996 DN
3.25%** 04/01/99 890 890,000
--------------
See accompanying notes to financial statements.
17
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
OHIO MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Value
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $128,643,644*) 99.6% $128,643,644
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.4% 531,062
------ ------------
NET ASSETS (Equivalent to $1.00 per
share based on 52,333,413
Institutional shares, 40,887,199
Service shares and 35,982,982
Investor A shares outstanding) 100.0% $129,174,706
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($129,174,706 (DIVIDE) 129,203,594) $1.00
=====
- ---------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1999, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
18
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS--99.9%
PENNSYLVANIA--99.2%
Allegheny County Higher Education
Building Authority RB (University
of Pittsburgh Project)
Series 1985C DN
2.90%** 04/07/99 $ 1,790 $ 1,790,000
Allegheny County IDRB
(United Mobile Video Project)
Series 1997 DN
3.15%** 04/01/99 4,000 4,000,000
Allegheny County IDRB (USX Corp.
Project) Series 1998 DN
2.95%** 04/07/99 2,000 2,000,000
Allegheny County IDA Refunding PCRB
(Duquesne Light Co. Project)
Series 1990A MB
2.90% 04/15/99 15,000 15,000,000
Allegheny County IDA Refunding PCRB
(Duquesne Light Co. Project)
Series 1992A MB
2.90% 04/15/99 8,000 8,000,000
Allentown Sewer Improvement
Refunding RB Series 1998 MB
3.60% 07/15/99 605 605,000
Beaver County IDRB (Duquesne
Light Co. Project) Series 1990C MB
2.85% 04/15/99 1,000 1,000,000
Beaver County IDRB (Duquesne
Light Co. Project)
Series 1990C TECP
2.70% 04/15/99 1,100 1,100,000
Beaver County IDA Refunding PCRB
(Atlantic Richfield Co. Project)
Series 1995 DN
3.05%** 04/07/99 4,200 4,200,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co., Beaver Valley
Project) Series 1990A DN
2.95%** 04/07/99 4,100 4,100,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co., Beaver Valley
Project) Series 1990A MB
2.75% 04/15/99 16,400 16,400,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co., Mansfield
Project) Series 1990B DN
2.95%** 04/07/99 1,100 1,100,000
Beaver County IDA Refunding PCRB
(Toledo Edison Project)
Series 1992E TECP
3.05% 05/15/99 10,000 10,000,000
Bedford County IDRB (Sepa, Inc.
Facility Project) Series 1985 DN
3.00%** 04/07/99 7,000 7,000,000
Berks County IDRB (Citizens
Utilities Co. Project) Series 1998 MB
2.75% 05/12/99 4,200 4,200,000
Berks County IDA Manufacturing
Facilities RB (Grafika Commercial
Printing, Inc. Project) Series 1995 DN
3.20%** 04/07/99 2,560 2,560,000
Berks County IDRB (Beacon
Container Corp. Project)
Series 1997A DN
3.25%** 04/07/99 2,390 2,390,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Berks County IDRB (Berks Products
Project) Series 1996 DN
3.25%** 04/07/99 $ 2,355 $ 2,355,000
Berks County IDRB (Hub Fabricating
Project) Series 1996 DN
3.20%** 04/07/99 4,865 4,865,000
Berks County IDRB (Richard J. Caron
Foundation Project) Series 1996 DN
3.10%** 04/07/99 1,500 1,500,000
Bethel Park GO Series 1999 TRAN
3.43% 12/31/99 2,000 2,002,610
Bucks County IDRB (LTL Color
Compounders Project)
Series 1999B DN
3.15%** 04/07/99 4,505 4,505,000
Bucks County IDA Environmental
Improvement Refunding RB
(USX Corp. Project) Series 1995 MB
3.00% 06/01/99 6,440 6,440,000
Bucks County IDRB (SHV Real
Estate, Inc. Project) Series 1985 DN
3.05%** 04/07/99 2,200 2,200,000
Bucks County IDA Refunding RB
(Sundstrand Corp. Project)
Series 1991 DN
3.05%** 04/07/99 1,505 1,505,000
Buffalo Township Municipal Authority
Sewer RB Series 1998 RAN
4.00% 08/19/99 2,265 2,265,000
Cambria County IDA Resource
Recovery RB (Cambria Cogen Co.
Project) Series 1998 DN
3.10%** 04/07/99 33,195 33,195,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1990 MB
2.95% 04/09/99 2,550 2,550,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1990A MB
3.10% 08/11/99 19,580 19,580,000
Carbon County IDA Resource Recovery
RB (Panther Creek Partners Project)
Series 1998 MB
2.80% 05/14/99 8,355 8,355,000
Cumberland County IDRB (Lane
Enterprises, Inc. Project)
Series 1994 DN
3.20%** 04/07/99 605 605,000
Cumberland County IDRB (Lawrence
Schiff Silk Co. Project)
Series 1998 DN
3.20%** 04/07/99 2,200 2,200,000
Cumberland County Municipal Authority
RB (Presbyterian Homes Project)
Series 1993A DN
3.10%** 04/07/99 6,000 6,000,000
Dallastown Area School District GO
Series 1998 DN
3.09%** 04/07/99 10,000 10,000,000
Dauphin County General Authority RB
(Allhealth Pooled Financing Program
Project) Series 1997 DN
3.10%** 04/07/99 19,700 19,700,000
See accompanying notes to financial statements.
19
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Dauphin County General Authority RB
(Allhealth Pooled Financing Program
Project) Series 1997A DN
3.10%** 04/07/99 $ 7,200 $ 7,200,000
Dauphin County General Authority RB
(Education & Health Loan Program)
Series 1997 DN
3.09%** 04/07/99 14,100 14,100,000
Delaware County IDA Environmental
Improvement Refunding RB (Sunoco,
Inc. Project) Series 1998 DN
3.00%** 04/07/99 7,000 7,000,000
Delaware County IDA Refunding PCRB
(PECO Energy Project)
Series 1993A DN
3.05%** 04/07/99 2,400 2,400,000
Delaware County IDA Resource
Recovery Facilities Refunding RB
(General Electric Capital Corp.
Project) Series 1997G DN
2.95%** 04/07/99 2,300 2,300,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984A DN
3.00%** 04/07/99 600 600,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984B DN
3.00%** 04/07/99 2,000 2,000,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984C DN
3.00%** 04/07/99 1,900 1,900,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984D DN
3.00%** 04/07/99 3,600 3,600,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984E DN
3.00%** 04/07/99 1,595 1,595,000
Delaware River Port Authority of
Pennsylvania and New Jersey
Refunding Municipal Trust
Certificates Series 1998-12A DN
3.11%** 04/07/99 14,850 14,850,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1985A DN
2.95%** 04/07/99 1,300 1,300,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1985B DN
2.95%** 04/07/99 3,000 3,000,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1985C DN
2.95%** 04/07/99 1,300 1,300,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1985D DN
2.95%** 04/07/99 3,100 3,100,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Elk County IDA Solid Waste RB
(Williamette Industries, Inc. Project)
Series 1992 DN
3.10%** 04/07/99 $ 3,000 $ 3,000,000
Emmaus General Authority RB Pooled
Loan Series 1989F-10 DN
3.00%** 04/07/99 1,000 1,000,000
Emmaus General Authority RB Pooled
Loan Series 1989F-12 DN
3.00%** 04/07/99 800 800,000
Emmaus General Authority RB Pooled
Loan Series 1989G-9 DN
3.00%** 04/07/99 1,300 1,300,000
Emmaus General Authority RB Pooled
Loan Series 1996 DN
3.05%** 04/07/99 4,500 4,500,000
Erie County IDRB (American Turned
Products Project) Series 1997 DN
3.10%** 04/07/99 1,980 1,980,000
Erie County IDRB (Reed
Manufacturing Project)
Series 1997 DN
3.25%** 04/07/99 1,500 1,500,000
Geisinger Health System Authority RB
(Penn State Health Systems Project)
Series 1998B DN
3.05%** 04/01/99 18,500 18,500,000
Indiana County IDRB (Conemaugh
Project) Series 1997A DN
3.00%** 04/07/99 2,310 2,310,000
Lawrence County IDRB (L & N
Metallurgical Products Project)
Series 1996 DN
3.40%** 04/07/99 3,600 3,600,000
Lehigh County General Purpose
Authority RB (Phoebe-Devitt Homes
Project) Series 1998B DN
3.05%** 04/07/99 3,000 3,000,000
Lehigh County General Purpose RB
(Lehigh Valley Hospital Project)
Series 1997A DN
3.00%** 04/01/99 3,100 3,100,000
Lehigh County IDA PCRB (Allegheny
Electric Co-op, Inc. Project)
Series 1984 DN
3.00%** 04/07/99 800 800,000
Lehigh County IDA PCRB (Allegheny
Electric Co-op, Inc. Project)
Series 1985A DN
3.05%** 04/07/99 1,300 1,300,000
Lehigh County Sewer Authority RB
Series 1985B DN
2.90%** 04/07/99 1,570 1,570,000
Lehigh County Water Authority RB
Series 1984 DN
2.90%** 04/07/99 4,545 4,545,000
Littlestown IDA Refunding RB (Hanover
House Industries Project)
Series 1987 DN
3.30%** 04/07/99 8,000 8,000,000
Luzerne County IDRB (Nardone
Brothers Baking Project)
Series 1999 DN
3.15%** 04/07/99 7,535 7,535,000
See accompanying notes to financial statements.
20
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Lycoming County IDRB (Brodart Co.
Project) Series 1998A DN
3.15%** 04/07/99 $ 1,905 $ 1,905,000
Lycoming County IDRB (Brodart Co.
Project) Series 1998C DN
3.15%** 04/07/99 1,000 1,000,000
Mercersburg Borough General Purpose
Authority RB (Mercersburg College
Project) Series 1997 DN
3.10%** 04/07/99 9,500 9,500,000
Montgomery County GO
Series 1996 DN
3.05%** 04/07/99 800 800,000
Montgomery County IDA Manufacturing
Facilities RB (H.P. Cadwallander, Inc.
Project) Series 1995 DN
3.25%** 04/07/99 700 700,000
Montgomery County IDRB (Apple
Fresh Foods Ltd. Project)
Series 1996 DN
3.20%** 04/07/99 935 935,000
Nazareth Borough Municipal Authority
Sewer RB Series 1998 MB
3.60% 09/15/99 550 550,000
Neshaminy School District GO
Series 1998 TRAN
3.94% 06/30/99 4,833 4,834,101
Northampton County Higher Education
Authority RB (Lehigh University
Project) Series 1993B MB
4.75% 07/01/99 1,000 1,004,319
Northampton County IDRB
(Citizens Utilities Co. Project)
Series 1991 MB
2.75% 05/12/99 2,000 2,000,000
2.80% 05/12/99 2,000 2,000,000
Northampton County IDRB
(Citizens Utilities Co. Project)
Series 1996 DN
3.10%** 04/07/99 8,375 8,375,000
Northampton IDRB (Accu Machining
Center, Inc. Project)
Series 1998B DN
3.20%** 04/07/99 2,290 2,290,000
Northampton IDRB (Accu Machining
Center, Inc. Project)
Series 1998C DN
3.20%** 04/07/99 1,065 1,065,000
Northeastern Hospital and Education
Authority Health Care RB (Wyoming
Valley Health Care Project)
Series 1994A DN
3.00%** 04/07/99 2,700 2,700,000
Northumberland County IDRB
(Furman Farms, Inc. Project)
Series 1995A DN
3.20%** 04/07/99 1,225 1,225,000
Northumberland County IDA Resource
Recovery RB (Foster Wheeler Mt.
Carmel Project) Series 1987A DN
3.05%** 04/07/99 3,165 3,165,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Northumberland County IDA Resource
Recovery RB (Foster Wheeler Mt.
Carmel Project) Series 1987B DN
3.05%** 04/07/99 $ 590 $ 590,000
Pennsylvania Economic Development
Financing Authority RB (National
Gypsum Co. Project)
Series 1997A DN
3.15%** 04/07/99 11,300 11,300,000
Pennsylvania Economic Development
Financing Authority RB (Wendt
Dunnington Co. Project)
Series 1995 DN
3.10%** 04/07/99 995 995,000
Pennsylvania Economic Development
Financing Authority Retirement
Facility RB (Homewood Retirement
Centers Project) Series 1992 DN
3.06%** 04/07/99 6,025 6,025,000
Pennsylvania Energy Development
Authority RB (B&W Ebensburg
Project) Series 1986 DN
3.00%** 04/07/99 1,810 1,810,000
Pennsylvania Energy Development
Authority RB (B&W Ebensburg
Project) Series 1988 DN
3.00%** 04/07/99 2,900 2,900,000
Pennsylvania Energy Development
Authority RB (Piney Creek Project)
Series 1986A DN
3.00%** 04/07/99 14,650 14,650,000
Pennsylvania Energy Development
Authority RB (Piney Creek Project)
Series 1986C DN
3.00%** 04/07/99 3,800 3,800,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988A DN
3.10%** 04/07/99 4,700 4,700,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988B DN
3.10%** 04/07/99 2,300 2,300,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988C DN
3.10%** 04/07/99 7,300 7,300,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988E DN
3.10%** 04/07/99 100 100,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1994A DN
3.10%** 04/07/99 3,050 3,050,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1995A DN
3.10%** 04/07/99 3,600 3,600,000
Pennsylvania Higher Education
Facilities Authority RB (The University
of Pennsylvania Health Services
Project) Series 1996C DN
3.20%** 04/07/99 7,700 7,700,000
See accompanying notes to financial statements.
21
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Pennsylvania Higher Education
Facilities Authority RB (The University
of Pennsylvania Health Services
Project) Series 1998B DN
3.20%** 04/07/99 $ 5,000 $ 5,000,000
Pennsylvania Higher Education
Facilities Authority Health Services
RB (The University of Pennsylvania
Project) Series 1994B DN
3.20%** 04/07/99 20,475 20,475,000
Pennsylvania Higher Education
Facilities Authority RB (Hahnemann
University Project) Series 1989 MB
7.20% 07/01/99 5,500 5,666,008
Pennsylvania Higher Education
Facilities Authority RB (Pennsylvania
College of Optometry Project)
Series 1996 DN
3.00%** 04/07/99 6,090 6,090,000
Pennsylvania IDA Economic
Development RB Series 1996 MB
4.75% 07/01/99 1,335 1,339,960
Philadelphia GO Series 1998A TRAN
4.25% 06/30/99 9,000 9,013,151
Philadelphia IDRB (30th Street
Station Project) Series 1987 DN
2.85%** 04/07/99 6,900 6,900,000
Philadelphia IDRB (GDL Estates
Corp. Project) Series 1998B DN
3.10%** 04/07/99 3,565 3,565,000
Philadelphia Water and Wastewater
Revenue Municipal Trust Certificates
MTC #38 Series 1999A DN
3.16%** 04/07/99 10,000 10,000,000
Reading Regional Airport Authority RB
Series 1998A DN
3.15%** 04/07/99 1,500 1,500,000
Rose Tree Media School District GO
Series 1999 MB
3.00% 02/15/00 1,085 1,085,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985A DN
3.05%** 04/07/99 2,000 2,000,000
Sayre Health Care Facilities Authority RB
(VHA Capital Financing Project)
Series 1985B DN
3.05%** 04/07/99 4,950 4,950,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985K DN
3.05%** 04/07/99 1,400 1,400,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985L DN
3.05%** 04/07/99 1,700 1,700,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985M DN
3.05%** 04/07/99 1,000 1,000,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Schuylkill County IDRB (Craftex
Mills Project) Series 1996 DN
3.20%** 04/07/99 $ 2,150 $ 2,150,000
Schuylkill County IDRB (Kaytee
Products, Inc. Project)
Series 1995 DN
3.20%** 04/07/99 3,695 3,695,000
Schuylkill County IDRB (Pine Grove
Landfill Project) Series 1995 DN
3.35%** 04/01/99 2,000 2,000,000
Schuylkill County IDA Resource
Recovery RB (Gilberton Power
Project) Series 1985 DN
2.95%** 04/07/99 1,000 1,000,000
Schuylkill County IDA Resource
Recovery RB (Northeastern Power Co.
Project) Series 1997B DN
3.25%** 04/01/99 3,100 3,100,000
Scranton School District GO
Series 1999 TRAN
3.30% 12/31/99 4,900 4,903,509
Scranton-Lackawana Health and
Welfare Authority RB (Mercy Health
System Project) Series 1996A DN
3.00%** 04/07/99 3,300 3,300,000
Southeastern Pennsylvania
Transportation Authority
Special RB Series 1999A MB
3.25% 03/01/00 1,805 1,810,835
State Public School Building
Authority RB (Pittston Area School
District Project) Series 1998P MB
4.00% 07/15/99 785 785,871
Union County IDRB (Playworld
Systems, Inc. Project)
Series 1999 DN
3.25%** 04/07/99 1,000 1,000,000
Venango IDA Resource Recovery
RB (Scrubgrass Project)
Series 1990A MB
2.80% 05/14/99 300 300,000
2.80% 06/01/99 300 300,000
Venango IDA Resource Recovery
RB (Scrubgrass Project)
Series 1990B MB
2.95% 04/09/99 3,300 3,300,000
2.80% 05/14/99 9,365 9,365,000
2.80% 06/01/99 11,785 11,785,000
Venango IDA Resource Recovery
RB (Scrubgrass Project)
Series 1993 MB
2.80% 05/14/99 8,385 8,385,000
2.80% 06/01/99 3,000 3,000,000
Washington County Authority
Higher Education Pooled Equipment
Lease RB Series 1985 DN
3.05%** 04/07/99 4,645 4,645,000
Washington County Authority Lease
RB Series 1985B-1 DN
3.00%** 04/07/99 1,278 1,278,000
See accompanying notes to financial statements.
22
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Westmoreland County IDRB
(Elizabeth Carbide Die Co. Project)
Series 1998B DN
3.25%** 04/07/99 $ 3,500 $ 3,500,000
York County General Authority
Pooled Financing RB
Series 1996 DN
3.10%** 04/07/99 3,495 3,495,000
York County Hospital Authority
RB (Homewood Retirement Centers
of The United Church of Christ,
Inc. Project) Series 1990 DN
3.06%** 04/07/99 7,550 7,550,000
York County IDRB (Allied Signal,
Inc. Project) Series 1993 DN
3.10%** 04/07/99 1,000 1,000,000
York County IDRB (York Sheet Metal,
Inc. Project) Series 1998 DN
3.15%** 04/07/99 3,500 3,500,000
York County PCRB (PECO Energy
Co. Project) Series 1993A DN
3.05%** 04/07/99 5,300 5,300,000
------------
636,853,364
------------
PUERTO RICO--0.7%
Puerto Rico Government Development
Bank Refunding RB Series 1985 DN
2.75%** 04/07/99 700 700,000
Puerto Rico Industrial, Medical and
Environmental Pollution Control
Facilities Financing Authority PCRB
(Reynolds Metals Co. Project)
Series 1983 MB
3.60% 09/01/99 3,850 3,850,000
------------
4,550,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $641,403,364*) 99.9% 641,403,364
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.1% 740,774
------ ------------
NET ASSETS (Equivalent to $1.00 per
share based on 421,208,424
Institutional shares, 83,185,894
Service shares and 137,762,713
Investor A shares outstanding) 100.0% $642,144,138
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($642,144,138 (DIVIDE) 642,157,031) $1.00
=====
- ---------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1999, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
See accompanying notes to financial statements.
23
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS--99.9%
VIRGINIA--86.8%
Albemarle County IDRB (University
of Virginia Health Services
Foundation Project) Series 1998 DN
3.05%** 04/07/99 $ 2,000 $ 2,000,000
Alexandria IDRB (Young Men's
Christian Association of Metropolitan
Washington Project) Series 1998 DN
3.16%** 04/07/99 2,000 2,000,000
Amelia County IDA Exempt Facility RB
(Chambers Waste System of Virginia,
Inc. Project) Series 1991 DN
3.15%** 04/07/99 1,110 1,110,000
Brunswick County IDA Exempt Facility
RB (Aegis Waste Solutions, Inc.
Project) Series 1996 DN
3.15%** 04/07/99 1,000 1,000,000
Campbell County IDRB (Hadson
Power 12 Altavista Project)
Series 1990A DN
3.40%** 04/01/99 2,800 2,800,000
Capital Region Airport Commission RB
(Richmond International Airport
Project) Series 1995C DN
3.05%** 04/07/99 5,865 5,865,000
Chesterfield County IDA PCRB
(Virginia Electric & Power Co. Project)
Series 1985 MB
2.75% 05/12/99 500 500,000
3.10% 08/13/99 1,000 1,000,000
Chesterfield County IDRB (Blueprint
Holding, Inc. Project) Series 1997 DN
3.10%** 04/07/99 2,000 2,000,000
Chesterfield County IDRB (Lumberg,
Inc. Project) Series 1998 DN
3.10%** 04/07/99 300 300,000
City of Virginia Beach Development
Authority RB (Ocean Ranch Motel
Corp. Project) Series 1998 DN
3.15%** 04/01/99 1,000 1,000,000
Commonwealth of Virginia GO
Series 1999 TECP
2.70% 04/01/99 1,000 1,000,000
Dinwiddie County IDA Exempt Facility
RB (Chaparral Steel Virginia Project)
Series 1998 DN
3.35%** 04/07/99 400 400,000
Fairfax County Economic Development
Authority RB (Foreman Development
Associates Project) Series 1996 DN
3.40%** 04/07/99 2,425 2,425,000
Fairfax County IDRB (Fairfax Hospital
System Project) Series 1988A DN
3.05%** 04/07/99 1,000 1,000,000
Fairfax County IDRB (Fairfax Hospital
System Project) Series 1988C DN
3.05%** 04/07/99 300 300,000
Fairfax County Water Authority RB
Series 1989 MB
7.30% 01/01/00 265 278,164
Greensville County IDRB (Perdue
Farms, Inc. Project) Series 1986 DN
3.20%** 04/01/99 1,600 1,600,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
Halifax County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1992 MB
2.80% 05/12/99 $ 2,000 $ 2,000,000
Hampton Redevelopment and Housing
Authority Multi-Family Housing
Refunding RB (Avalon at Hampton
Project) Series 1996A DN
2.90%** 04/07/99 2,400 2,400,000
Hampton Roads Regional Jail
Authority Regional Jail Facility RB
Series 1996B DN
3.05%** 04/07/99 700 700,000
Hopewell IDA Exempt Facility RB
(Hadson Power 13-Hopewell Project)
Series 1990A DN
3.40%** 04/01/99 2,500 2,500,000
King George County IDA Exempt
Facility RB (Birchwood Power
Partners Project) Series 1995 DN
3.35%** 04/01/99 1,100 1,100,000
King George County IDA Exempt
Facility RB (Birchwood Power
Partners Project) Series 1996 DN
3.35%** 04/01/99 300 300,000
King George County IDA Exempt
Facility RB (Birchwood Power
Partners Project) Series 1997 DN
3.35%** 04/01/99 400 400,000
Louisa County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1985 MB
2.80% 05/14/99 100 100,000
Louisa County IDRB (Pooled
Financing Project) Series 1995 DN
3.00%** 04/07/99 500 500,000
Metropolitan Washington D.C. Airports
Authority, Virginia Passenger Facility
Flexible Term Notes
Series 1999 TECP
2.90% 04/29/99 3,000 3,000,000
Norfolk IDRB (2F Realty Co. Project)
Series 1998 DN
3.10%** 04/07/99 1,500 1,500,000
Norfolk IDRB (Children's Hospital of
the King's Daughters Project)
Series 1998 DN
3.00%** 04/07/99 600 600,000
Peninsula Port Authority of Virginia
Coal Terminal RB (Dominion
Terminal Associates Project)
Series 1987D DN
3.20%** 04/01/99 900 900,000
Peninsula Port Authority of Virginia IDRB
(Allied-Signal, Inc. Project)
Series 1993 DN
3.10%** 04/07/99 1,000 1,000,000
Peninsula Port Authority of Virginia Port
Facility Refunding RB (CSX
Transportation, Inc. Project)
Series 1992 MB
2.65% 05/12/99 1,000 1,000,000
See accompanying notes to financial statements.
24
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
AS OF MARCH 31, 1999 (UNAUDITED)
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
Prince William County IDA PCRB
(Virginia Electric & Power Co. Project)
Series 1986 MB
2.75% 05/12/99 $ 300 $ 300,000
Prince William County IDRB (Colonial
Investments Facility Project)
Series 1996 DN
3.40%** 04/07/99 3,085 3,085,000
Richmond IDRB (Halifax Paper Board
Co. Project) Series 1990 DN
3.40%** 04/07/99 486 486,000
Richmond IDRB (PM Beef Project)
Series 1997 DN
3.35%** 04/07/99 3,400 3,400,000
Virginia College Building Authority
Educational Facilities RB (University
of Richmond Project) Series 1996 DN
3.05%** 04/07/99 1,000 1,000,000
Virginia Education Loan Authority RB
(Guaranteed Student Loan Program)
Series 1992F MB
6.10% 03/01/00 915 939,117
Virginia Port Authority Port Facilities RB
Series 1997 MB
4.50% 07/01/99 1,000 1,003,573
Virginia Resource Authority RB
(Henrico County Project)
Series 1997 DN
3.15%** 04/07/99 2,000 2,000,000
Virginia Small Business Financing
Authority IDRB (Coastal
Development Group Project)
Series 1989 DN
3.40%** 04/07/99 195 195,000
Virginia State Public School Authority
RB Series 1991B MB
6.10% 01/01/00 1,000 1,042,042
York County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1985 MB
2.75% 05/12/99 200 200,000
-----------
58,228,896
-----------
PUERTO RICO--13.1%
Puerto Rico Government Development
Bank Refunding RB Series 1985 DN
2.75%** 04/07/99 300 300,000
Puerto Rico Industrial, Medical and
Environmental Pollution Control
Facilities Financing Authority PCRB
(Reynolds Metals Co. Project)
Series 1983 MB
3.60% 09/01/99 600 600,000
Puerto Rico Industrial, Tourist,
Education, Medical, and
Environmental Control Finance
Authority RB (Ana G. Mendez
University System Project)
Series 1998 DN
2.75%** 04/07/99 4,400 4,400,000
Par
Maturity (000) Value
-------- -------- ------------
MUNICIPAL BONDS (CONTINUED)
PUERTO RICO (CONTINUED)
Puerto Rico Insured Trust Receipts
Series 1998A DN
2.95%** 04/01/99 $ 3,500 $ 3,500,000
-----------
8,800,000
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $67,028,896*) 99.9% 67,028,896
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.1% 98,700
------ -----------
NET ASSETS (Equivalent to $1.00 per
share based on 63,944,113
Institutional shares, 2,610,755
Service shares and 573,320 Investor A
shares outstanding) 100.0% $67,127,596
====== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($67,127,596 (DIVIDE) 67,128,188) $1.00
=====
- ---------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1999, and maturities shown are the
longer of the next interest readjustment date or the date the principal owed
can be recovered through demand.
INVESTMENT ABBREVIATIONS
BAN.................................Bond Anticipation Note
DN.............................................Demand Note
GO......................................General Obligation
IDA.......................Industrial Development Authority
IDRB...................Industrial Development Revenue Bond
MB..........................................Municipal Bond
PCRB........................Pollution Control Revenue Bond
RAN..............................Revenue Anticipation Note
RB............................................Revenue Bond
TAN..................................Tax Anticipation Note
TECP...........................Tax-Exempt Commercial Paper
TRAN...................Tax and Revenue Anticipation Note
See accompanying notes to financial statements.
25
<PAGE>
BLACKROCK FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
New Jersey
U.S. Treasury Municipal Municipal
Money Market Money Market Money Market Money Market
Portfolio Portfolio Portfolio Portfolio
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................ $87,032,957 $24,993,432 $7,620,763 $2,368,174
----------- ----------- ---------- ----------
EXPENSES:
Investment advisory fee ............. 6,639,230 2,260,469 1,074,570 338,902
Administration fee .................. 2,493,553 860,689 429,060 135,568
Custodian fee ....................... 187,256 72,504 43,771 14,187
Transfer agent fee .................. 458,872 164,012 84,620 31,098
Shareholder servicing fees .......... 1,192,099 529,096 142,186 75,339
Shareholder processing fees ......... 965,079 492,177 137,432 60,961
Distribution fees ................... 13,107 127 402 10,398
Legal and audit ..................... 67,088 27,590 12,759 4,185
Printing ............................ 78,927 32,494 15,027 4,929
Registration fees and expenses ...... 41,518 23,677 23,615 5,297
Trustees' fees and officer's salary . 22,551 8,510 3,920 1,630
Other ............................... 49,248 16,524 8,819 2,703
----------- ----------- ---------- ----------
12,208,528 4,487,869 1,976,181 685,197
Less fees waived .................... (3,138,020) (1,385,662) (689,955) (238,777)
----------- ----------- ---------- ----------
Total expenses ................... 9,070,508 3,102,207 1,286,226 446,420
----------- ----------- ---------- ----------
Net investment income ............... 77,962,449 21,891,225 6,334,537 1,921,754
----------- ----------- ---------- ----------
Net realized gain (loss)
on investments ................... (37,285) 29,067 -- 5,305
----------- ----------- ---------- ----------
Change in unrealized market discount -- -- 87 --
----------- ----------- ---------- ----------
Net increase in net assets resulting
from operations .................. $77,925,164 $21,920,292 $6,334,624 $1,927,059
=========== =========== ========== ==========
</TABLE>
FOR THE SIX MONTHS ENDED MARCH 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
North Carolina Ohio Pennsylvania Virginia
Municipal Municipal Municipal Municipal
Money Market Money Market Money Market Money Market
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................ $3,205,850 $1,990,684 $10,238,970 $1,060,882
---------- ---------- ----------- ----------
EXPENSES:
Investment advisory fee ............. 463,903 271,495 1,468,947 149,468
Administration fee .................. 178,538 108,598 574,832 59,787
Custodian fee ....................... 19,569 11,932 53,099 8,355
Transfer agent fee .................. 39,289 29,165 103,446 15,317
Shareholder servicing fees .......... 17,115 59,732 229,155 3,327
Shareholder processing fees ......... 16,927 48,232 177,086 3,003
Distribution fees ................... -- 1,150 32,285 324
Legal and audit ..................... 4,942 3,357 16,609 2,032
Printing ............................ 6,171 3,954 19,562 2,393
Registration fees and expenses ...... 5,832 4,528 9,130 6,420
Trustees' fees and officer's salary . 1,805 1,396 5,113 1,071
Other ............................... 3,303 2,111 9,938 1,222
---------- ---------- ----------- ----------
757,394 545,650 2,699,202 252,719
Less fees waived .................... (406,929) (193,773) (897,476) (144,875)
---------- ---------- ----------- ----------
Total expenses ................... 350,465 351,877 1,801,726 107,844
---------- ---------- ----------- ----------
Net investment income ............... 2,855,385 1,638,807 8,437,244 953,038
---------- ---------- ----------- ----------
Net realized gain (loss)
on investments ................... -- -- -- --
---------- ---------- ----------- ----------
Change in unrealized market discount 292 -- 544 --
---------- ---------- ----------- ----------
Net increase in net assets resulting
from operations .................. $2,855,677 $1,638,807 $ 8,437,788 $ 953,038
========== ========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
26&27
<PAGE>
BLACKROCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. Treasury Municipal
Money Market Portfolio Money Market Portfolio Money Market Portfolio
----------------------------- ------------------------------ -------------------------
For the For the For the
Six Months For the Six Months For the Six Months For the
Ended Year Ended Ended Year Ended Ended Year Ended
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98
-------------- -------------- -------------- -------------- ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ...............$ 77,962,449 $ 149,800,719 $ 21,891,225 $ 49,555,191 $ 6,334,537 $ 14,459,939
Net gain (loss) on investments ...... (37,285) 88,296 29,067 159,097 87 (3,165)
-------------- -------------- -------------- -------------- ------------ ------------
Net increase in net assets resulting
from operations ..................... 77,925,164 149,889,015 21,920,292 49,714,288 6,334,624 14,456,774
-------------- -------------- -------------- -------------- ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Class ................. (48,741,895) (49,337,129) (7,971,024) (9,436,685) (4,066,504) (3,592,924)
Service Class ....................... (19,202,199) (85,254,049) (12,388,537) (37,061,973) (2,158,932) (10,687,842)
Investor A Class .................... (9,952,669) (15,177,945) (1,531,098) (3,056,533) (108,095) (178,559)
Investor B Class .................... (52,816) (21,163) -- -- -- --
Investor C Class .................... (12,870) (10,433) (566) -- (1,006) (614)
-------------- -------------- -------------- -------------- ------------ ------------
Total distribution from net
investment income ................. (77,962,449) (149,800,719) (21,891,225) (49,555,191) (6,334,537) (14,459,939)
-------------- -------------- -------------- -------------- ------------ ------------
Total distributions to shareholders . (77,962,449) (149,800,719) (21,891,225) (49,555,191) (6,334,537) (14,459,939)
-------------- -------------- -------------- -------------- ------------ ------------
Capital share transactions .............. 423,045,587 289,478,727 66,929,021 (76,171,119) 110,575,401 1,286,625
-------------- -------------- -------------- -------------- ------------ ------------
Total increase (decrease) in
net assets ........................ 423,008,302 289,567,023 66,958,088 (76,012,022) 110,575,488 1,283,460
Net assets:
Beginning of period ................... 3,034,727,064 2,745,160,041 965,615,540 1,041,627,562 396,420,644 395,137,184
-------------- -------------- -------------- -------------- ------------ ------------
End of period .........................$3,457,735,366 $3,034,727,064 $1,032,573,628 $ 965,615,540 $506,996,132 $396,420,644
============== ============== ============== ============== ============ ============
</TABLE>
<TABLE>
<CAPTION>
New Jersey Municipal North Carolina Municipal Ohio Municipal
Money Market Portfolio Money Market Portfolio Money Market Portfolio
--------------------------- --------------------------- ---------------------------
For the For the For the
Six Months For the Six Months For the Six Months For the
Ended Year Ended Ended Year Ended Ended Year Ended
3/31/99 9/30/98 3/31/99 9/30/98 3/31/99 9/30/98
------------ ------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ...............$ 1,921,754 $ 3,978,699 $ 2,855,385 $ 6,233,223 $ 1,638,807 $ 4,005,147
Net gain (loss) on investments ...... 5,305 462 292 1,458 -- (16,540)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations ..................... 1,927,059 3,979,161 2,855,677 6,234,681 1,638,807 3,988,607
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Class ................. (1,055,532) (446,371) (2,564,630) (5,484,220) (824,378) (1,363,131)
Service Class ....................... (418,893) (2,668,058) (286,372) (741,593) (544,555) (2,124,586)
Investor A Class .................... (447,328) (864,269) (4,383) (7,410) (269,874) (517,430)
Investor B Class .................... (1) (1) -- -- -- --
Investor C Class .................... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distribution from net
investment income ................. (1,921,754) (3,978,699) (2,855,385) (6,233,223) (1,638,807) (4,005,147)
------------ ------------ ------------ ------------ ------------ ------------
Total distributions to shareholders . (1,921,754) (3,978,699) (2,855,385) (6,233,223) (1,638,807) (4,005,147)
------------ ------------ ------------ ------------ ------------ ------------
Capital share transactions .............. 3,327,371 17,499,690 22,130,503 29,868,127 6,579,835 24,836,540
------------ ------------ ------------ ------------ ------------ ------------
Total increase (decrease) in
net assets ........................ 3,332,676 17,500,152 22,130,795 29,869,585 6,579,835 24,820,000
Net assets:
Beginning of period ................... 147,917,564 130,417,412 201,535,206 171,665,621 122,594,871 97,774,871
------------ ------------ ------------ ------------ ------------ ------------
End of period .........................$151,250,240 $147,917,564 $223,666,001 $201,535,206 $129,174,706 $122,594,871
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Pennsylvania Municipal Virginia Municipal
Money Market Portfolio Money Market Portfolio
--------------------------- -------------------------
For the For the
Six Months For the Six Months For the
Ended Year Ended Ended Year Ended
3/31/99 9/30/98 3/31/99 9/30/98
------------ ------------ ----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ...............$ 8,437,244 $ 18,261,199 $ 953,038 $ 2,395,730
Net gain (loss) on investments ...... 544 1,531 -- (422)
------------ ------------ ----------- -----------
Net increase in net assets resulting
from operations ..................... 8,437,788 18,262,730 953,038 2,395,308
------------ ------------ ----------- -----------
Distributions to shareholders from:
Net investment income:
Institutional Class ................. (5,915,755) (8,341,719) (902,231) (2,187,105)
Service Class ....................... (1,036,858) (6,846,156) (43,298) (182,287)
Investor A Class .................... (1,484,631) (3,073,324) (7,509) (26,338)
Investor B Class .................... -- -- -- --
Investor C Class .................... -- -- -- --
------------ ------------ ----------- -----------
Total distribution from net
investment income ................. (8,437,244) (18,261,199) (953,038) (2,395,730)
------------ ------------ ----------- -----------
Total distributions to shareholders . (8,437,244) (18,261,199) (953,038) (2,395,730)
------------ ------------ ----------- -----------
Capital share transactions .............. 107,300,055 (27,011,532) (14,732,340) 12,686,340
------------ ------------ ----------- -----------
Total increase (decrease) in
net assets ........................ 107,300,599 (27,010,001) (14,732,340) 12,685,918
Net assets:
Beginning of period ................... 534,843,539 561,853,540 81,859,936 69,174,018
------------ ------------ ----------- -----------
End of period .........................$642,144,138 $534,843,539 $67,127,596 $81,859,936
============ ============ =========== ===========
</TABLE>
See accompanying notes to financial statements.
28-29
<PAGE>
BLACKROCK FUNDS
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS
VALUE NET FROM NET REALIZED VALUE END OF
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------
MONEY MARKET PORTFOLIO
- ----------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0243 $(0.0243) $0.00 $1.00 2.45% $2,143,223
9/30/98 1.00 0.0532 (0.0532) 0.00 1.00 5.46 1,858,165
9/30/97 1.00 0.0529 (0.0529) 0.00 1.00 5.42 878,566
9/30/96 1.00 0.0533 (0.0533) 0.00 1.00 5.46 587,730
9/30/95 1.00 0.0564 (0.0564) 0.00 1.00 5.79 654,157
9/30/94 1.00 0.0359 (0.0359) 0.00 1.00 3.64 502,972
SERVICE CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0228 $(0.0228) $0.00 $1.00 2.30% $ 806,876
9/30/98 1.00 0.0502 (0.0502) 0.00 1.00 5.14 808,962
9/30/97 1.00 0.0499 (0.0499) 0.00 1.00 5.11 1,610,315
9/30/96 1.00 0.0503 (0.0503) 0.00 1.00 5.15 1,575,064
9/30/95 1.00 0.0534 (0.0534) 0.00 1.00 5.48 1,194,017
9/30/94 1.00 0.0333 (0.0333) 0.00 1.00 3.37 575,948
INVESTOR A CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0224 $(0.0224) $0.00 $1.00 2.26% $ 502,445
9/30/98 1.00 0.0495 (0.0495) 0.00 1.00 5.06 365,458
9/30/97 1.00 0.0491 (0.0491) 0.00 1.00 5.02 256,039
9/30/96 1.00 0.0485 (0.0485) 0.00 1.00 4.96 162,099
9/30/95 1.00 0.0511 (0.0511) 0.00 1.00 5.23 10,185
9/30/94 1.00 0.0308 (0.0308) 0.00 1.00 3.12 4,342
INVESTOR B CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0189 $(0.0189) $0.00 $1.00 1.91% $ 3,964
9/30/98 1.00 0.0426 (0.0426) 0.00 1.00 4.34 1,805
9/30/97 1.00 0.0424 (0.0424) 0.00 1.00 4.32 238
9/30/96 1.00 0.0426 (0.0426) 0.00 1.00 4.34 138
9/15/95 1 through 9/30/95 1.00 0.0020 (0.0020) 0.00 1.00 0.20 27
INVESTOR C CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0189 $(0.0189) $0.00 $1.00 1.91% $ 1,227
9/30/98 1.00 0.0426 (0.0426) 0.00 1.00 4.34 337
10/17/96 1 through 9/30/97 1.00 0.0390 (0.0390) 0.00 1.00 3.97 2
- ------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO
- ------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0227 $(0.0227) $0.00 $1.00 2.29% $ 381,433
9/30/98 1.00 0.0519 (0.0519) 0.00 1.00 5.32 297,161
9/30/97 1.00 0.0515 (0.0515) 0.00 1.00 5.27 162,052
9/30/96 1.00 0.0519 (0.0519) 0.00 1.00 5.32 167,193
9/30/95 1.00 0.0555 (0.0555) 0.00 1.00 5.69 120,540
9/30/94 1.00 0.0357 (0.0357) 0.00 1.00 3.63 37,519
SERVICE CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0212 $(0.0212) $0.00 $1.00 2.14% $ 578,353
9/30/98 1.00 0.0489 (0.0489) 0.00 1.00 5.00 596,644
9/30/97 1.00 0.0485 (0.0485) 0.00 1.00 4.93 836,151
9/30/96 1.00 0.0489 (0.0489) 0.00 1.00 5.00 955,454
9/30/95 1.00 0.0525 (0.0525) 0.00 1.00 5.38 550,959
9/30/94 1.00 0.0331 (0.0331) 0.00 1.00 3.36 372,883
INVESTOR A CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0207 $(0.0207) $0.00 $1.00 2.09% $ 72,733
9/30/98 1.00 0.0476 (0.0476) 0.00 1.00 4.87 71,811
9/30/97 1.00 0.0468 (0.0468) 0.00 1.00 4.75 43,425
9/30/96 1.00 0.0467 (0.0467) 0.00 1.00 4.77 10,630
9/30/95 1.00 0.0501 (0.0501) 0.00 1.00 5.13 1,285
9/30/94 1.00 0.0309 (0.0309) 0.00 1.00 3.11 1,656
INVESTOR C CLASS
12/8/98 1 through 03/31/99 6 $1.00 $0.0105 $(0.0105) $0.00 $1.00 0.83% $ 55
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS
AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING
ASSETS WAIVERS) ASSETS WAIVERS)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ----------------------
MONEY MARKET PORTFOLIO
- ----------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 0.42%2 0.61%2 4.86%2 4.67%2
9/30/98 0.39 0.63 5.32 5.08
9/30/97 0.32 0.65 5.30 4.97
9/30/96 0.29 0.65 5.34 4.98
9/30/95 0.27 0.64 5.66 5.28
9/30/94 0.25 0.66 3.64 3.23
SERVICE CLASS
10/1/98 through 3/31/99 6 0.72%2 0.91%2 4.56%2 4.37%2
9/30/98 0.69 0.93 5.03 4.79
9/30/97 0.61 0.94 4.99 4.66
9/30/96 0.59 0.95 5.00 4.64
9/30/95 0.57 0.94 5.35 4.98
9/30/94 0.51 0.92 3.35 2.95
INVESTOR A CLASS
10/1/98 through 3/31/99 6 0.80%2 0.99%2 4.47%2 4.28%2
9/30/98 0.77 1.01 4.94 4.70
9/30/97 0.70 1.03 4.92 4.59
9/30/96 0.74 1.10 4.81 4.45
9/30/95 0.81 1.19 5.15 4.78
9/30/94 0.75 1.16 3.39 2.98
INVESTOR B CLASS
10/1/98 through 3/31/99 6 1.50%2 1.69%2 3.76%2 3.57%2
9/30/98 1.48 1.72 4.22 3.98
9/30/97 1.39 1.72 4.26 3.93
9/30/96 1.36 1.73 4.18 3.82
9/15/95 1 through 9/30/95 1.34 2 1.72 2 4.58 2 4.20 2
INVESTOR C CLASS
10/1/98 through 3/31/99 6 1.50%2 1.69%2 3.74%2 3.55%2
9/30/98 1.49 1.73 4.22 3.98
10/17/96 1 through 9/30/97 1.50 2 1.83 2 4.01 2 3.68 2
- ------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO
- ------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 0.41%2 0.69%2 4.55%2 4.27%2
9/30/98 0.38 0.69 5.19 4.88
9/30/97 0.31 0.69 5.15 4.77
9/30/96 0.29 0.69 5.18 4.78
9/30/95 0.27 0.69 5.64 5.22
9/30/94 0.25 0.70 3.69 3.24
SERVICE CLASS
10/1/98 through 3/31/99 6 0.71%2 0.99%2 4.26%2 3.98%2
9/30/98 0.68 0.99 4.90 4.59
9/30/97 0.61 0.99 4.85 4.47
9/30/96 0.59 0.99 4.84 4.45
9/30/95 0.57 0.98 5.27 4.85
9/30/94 0.52 0.97 3.42 2.97
INVESTOR A CLASS
10/1/98 through 3/31/99 6 0.81%2 1.09%2 4.16%2 3.88%2
9/30/98 0.81 1.12 5.57 5.26
9/30/97 0.78 1.16 4.70 4.32
9/30/96 0.79 1.19 4.60 4.20
9/30/95 0.80 1.21 5.03 4.62
9/30/94 0.75 1.20 3.60 3.14
INVESTOR C CLASS
12/8/98 1 through 03/31/99 6 1.55%2 1.83%2 3.36%2 3.08%2
</TABLE>
See accompanying notes to financial statements.
30-31
<PAGE>
BLACKROCK FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET
ASSET DISTRIBUTIONS FROM NET ASSET
VALUE NET FROM NET REALIZED VALUE
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF
OF PERIOD INCOME INCOME GAINS PERIOD
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0139 $(0.0139) $0.00 $1.00
9/30/98 1.00 0.0327 (0.0327) 0.00 1.00
9/30/97 1.00 0.0337 (0.0337) 0.00 1.00
9/30/96 1.00 0.0339 (0.0339) 0.00 1.00
9/30/95 1.00 0.0364 (0.0364) 0.00 1.00
9/30/94 1.00 0.0246 (0.0246) 0.00 1.00
SERVICE CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0124 $(0.0124) $0.00 $1.00
9/30/98 1.00 0.0297 (0.0297) 0.00 1.00
9/30/97 1.00 0.0307 (0.0307) 0.00 1.00
9/30/96 1.00 0.0309 (0.0309) 0.00 1.00
9/30/95 1.00 0.0334 (0.0334) 0.00 1.00
9/30/94 1.00 0.0219 (0.0219) 0.00 1.00
INVESTOR A CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0115 $(0.0115) $0.00 $1.00
9/30/98 1.00 0.0280 (0.0280) 0.00 1.00
9/30/97 1.00 0.0290 (0.0290) 0.00 1.00
9/30/96 1.00 0.0288 (0.0288) 0.00 1.00
9/30/95 1.00 0.0311 (0.0311) 0.00 1.00
9/30/94 1.00 0.0193 (0.0193) 0.00 1.00
INVESTOR C CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0040 $(0.0040) $0.00 $1.00
9/30/98 1.00 0.0133 (0.0133) 0.00 1.00
9/12/97 1 through 9/30/97 1.00 0.0013 (0.0013) 0.00 1.00
- -------------------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0138 $(0.0138) $0.00 $1.00
9/30/98 1.00 0.0319 (0.0319) 0.00 1.00
9/30/97 1.00 0.0323 (0.0323) 0.00 1.00
2/1/96 through 9/30/96 1.00 0.0207 (0.0207) 0.00 1.00
1/16/96 1 through 1/31/96 1.00 0.0000 (0.0000) 0.00 1.00
SERVICE CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0123 $(0.0123) $0.00 $1.00
9/30/98 1.00 0.0289 (0.0289) 0.00 1.00
9/30/97 1.00 0.0293 (0.0293) 0.00 1.00
2/1/96 through 9/30/96 1.00 0.0187 (0.0187) 0.00 1.00
3/1/95 through 1/31/96 1.00 0.0300 (0.0300) 0.00 1.00
2/28/95 1.00 0.0200 (0.0200) 0.00 1.00
2/28/94 1.00 0.0200 (0.0200) 0.00 1.00
INVESTOR A CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0112 $(0.0112) $0.00 $1.00
9/30/98 1.00 0.0265 (0.0265) 0.00 1.00
9/30/97 1.00 0.0268 (0.0268) 0.00 1.00
2/1/96 through 9/30/96 1.00 0.0175 (0.0175) 0.00 1.00
1/16/96 1 through 1/31/96 1.00 0.0000 (0.0000) 0.00 1.00
INVESTOR B CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0094 $(0.0094) $0.00 $1.00
5/13/98 5 through 9/30/98 1.00 0.0079 (0.0079) 0.00 1.00
3/20/97 1 through 9/30/97 1.00 0.0077 (0.0077) 0.00 1.00
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
NET RATIO OF EXPENSES INVESTMENT INCOME
ASSETS RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS
TOTAL PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING
RETURN (000) ASSETS WAIVERS) ASSETS WAIVERS)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 1.40% $ 314,898 0.42%2 0.71%2 2.77%2 2.48%2
9/30/98 3.32 246,733 0.39 0.71 3.25 2.93
9/30/97 3.42 58,747 0.31 0.72 3.36 2.95
9/30/96 3.41 43,936 0.29 0.73 3.37 2.93
9/30/95 3.70 53,778 0.27 0.71 3.64 3.20
9/30/94 2.48 30,608 0.25 0.73 2.48 2.01
SERVICE CLASS
10/1/98 through 3/31/99 6 1.24% $ 183,905 0.72%2 1.01%2 2.48%2 2.19%2
9/30/98 3.01 140,155 0.69 1.01 2.96 2.64
9/30/97 3.11 327,910 0.61 1.02 3.06 2.65
9/30/96 3.10 261,617 0.59 1.03 3.08 2.64
9/30/95 3.39 265,629 0.57 1.01 3.35 2.91
9/30/94 2.20 133,358 0.51 0.99 2.18 1.71
INVESTOR A CLASS
10/1/98 through 3/31/99 6 1.16% $ 8,193 0.89%2 1.18%2 2.34%2 2.05%2
9/30/98 2.83 9,227 0.86 1.18 2.80 2.48
9/30/97 2.93 8,468 0.79 1.20 2.92 2.51
9/30/96 2.88 1,851 0.77 1.21 2.80 2.36
9/30/95 3.15 20 0.79 1.23 3.08 2.64
9/30/94 1.95 41 0.75 1.23 2.05 1.58
INVESTOR C CLASS
10/1/98 through 3/31/99 6 0.40% $ --7 1.49%2 1.78%2 1.88%2 1.59%2
9/30/98 1.34 306 1.47 1.79 2.08 1.76
9/12/97 1 through 9/30/97 0.13 12 1.32 2 1.73 2 2.63 2 2.22 2
- -------------------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 1.38% $ 83,089 0.39%2 0.71%2 2.75%2 2.43%2
9/30/98 3.24 68,771 0.38 0.75 3.17 2.80
9/30/97 3.28 7,432 0.32 0.76 3.27 2.83
2/1/96 through 9/30/96 2.09 614 0.29 2 0.78 2 3.07 2 2.58 2
1/16/96 1 through 1/31/96 3.07 4,195 0.29 2 0.78 2 3.07 2 2.58 2
SERVICE CLASS
10/1/98 through 3/31/99 6 1.23% $ 34,947 0.69%2 1.01%2 2.46%2 2.14%2
9/30/98 2.93 35,152 0.67 1.04 2.89 2.52
9/30/97 2.96 101,294 0.61 1.05 2.93 2.49
2/1/96 through 9/30/96 1.89 68,139 0.59 2 1.08 2 2.82 2 2.33 2
3/1/95 through 1/31/96 3.23 56,958 0.70 2 0.74 2 3.17 2 3.13 2
2/28/95 2.46 43,610 0.63 0.70 2.46 2.39
2/28/94 1.79 39,408 0.65 0.72 1.77 1.70
INVESTOR A CLASS
10/1/98 through 3/31/99 6 1.13% $ 33,214 0.90%2 1.22%2 2.25%2 1.93%2
9/30/98 2.68 43,995 0.91 1.28 2.64 2.27
9/30/97 2.71 21,691 0.86 1.30 2.68 2.24
2/1/96 through 9/30/96 1.76 17,314 0.78 2 1.27 2 2.63 2 2.15 2
1/16/96 1 through 1/31/96 2.66 21,662 0.71 2 1.20 2 2.66 2 2.17 2
INVESTOR B CLASS
10/1/98 through 3/31/99 6 0.94% $ -- 1.46%2 1.78%2 1.68%2 1.36%2
5/13/98 5 through 9/30/98 0.79 -- 1.44 2 1.81 2 2.12 2 1.75 2
3/20/97 1 through 9/30/97 0.77 --4 1.37 2 1.81 2 2.35 2 1.91 2
</TABLE>
See accompanying notes to financial statements.
32-33
<PAGE>
BLACKROCK FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET
ASSET DISTRIBUTIONS FROM NET ASSET
VALUE NET FROM NET REALIZED VALUE
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF
OF PERIOD INCOME INCOME GAINS PERIOD
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0141 $(0.0141) $0.00 $1.00
9/30/98 1.00 0.0335 (0.0335) 0.00 1.00
9/30/97 1.00 0.0334 (0.0334) 0.00 1.00
9/30/96 1.00 0.0338 (0.0338) 0.00 1.00
9/30/95 1.00 0.0359 (0.0359) 0.00 1.00
9/30/94 1.00 0.0249 (0.0249) 0.00 1.00
SERVICE CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0126 $(0.0126) $0.00 $1.00
9/30/98 1.00 0.0305 (0.0305) 0.00 1.00
9/30/97 1.00 0.0304 (0.0304) 0.00 1.00
9/30/96 1.00 0.0308 (0.0308) 0.00 1.00
11/1/94 5 through 9/30/95 1.00 0.0305 (0.0305) 0.00 1.00
4/29/94 1 through 9/30/94 1.00 0.0099 (0.0099) 0.00 1.00
INVESTOR A CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0118 $(0.0118) $0.00 $1.00
9/30/98 1.00 0.0288 (0.0288) 0.00 1.00
9/30/97 1.00 0.0287 (0.0287) 0.00 1.00
9/30/96 1.00 0.0286 (0.0286) 0.00 1.00
2/14/95 1 through 9/30/95 1.00 0.0194 (0.0194) 0.00 1.00
- -------------------------------------------
OHIO MUNICIPAL MONEY MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0145 $(0.0145) $0.00 $1.00
9/30/98 1.00 0.0334 (0.0334) 0.00 1.00
9/30/97 1.00 0.0340 (0.0340) 0.00 1.00
9/30/96 1.00 0.0346 (0.0346) 0.00 1.00
9/30/95 1.00 0.0363 (0.0363) 0.00 1.00
9/30/94 1.00 0.0252 (0.0252) 0.00 1.00
SERVICE CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0130 $(0.0130) $0.00 $1.00
9/30/98 1.00 0.0304 (0.0304) 0.00 1.00
9/30/97 1.00 0.0310 (0.0310) 0.00 1.00
9/30/96 1.00 0.0316 (0.0316) 0.00 1.00
9/30/95 1.00 0.0333 (0.0333) 0.00 1.00
9/30/94 1.00 0.0225 (0.0225) 0.00 1.00
INVESTOR A CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0121 $(0.0121) $0.00 $1.00
9/30/98 1.00 0.0286 (0.0286) 0.00 1.00
9/30/97 1.00 0.0292 (0.0292) 0.00 1.00
9/30/96 1.00 0.0293 (0.0293) 0.00 1.00
9/30/95 1.00 0.0310 (0.0310) 0.00 1.00
10/5/93 1 through 9/30/94 1.00 0.0199 (0.0199) 0.00 1.00
- ---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
- ---------------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0136 $(0.0136) $0.00 $1.00
9/30/98 1.00 0.0322 (0.0322) 0.00 1.00
9/30/97 1.00 0.0332 (0.0332) 0.00 1.00
9/30/96 1.00 0.0334 (0.0334) 0.00 1.00
9/30/95 1.00 0.0355 (0.0355) 0.00 1.00
9/30/94 1.00 0.0247 (0.0247) 0.00 1.00
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
NET RATIO OF EXPENSES INVESTMENT INCOME
ASSETS RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS
TOTAL PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING
RETURN (000) ASSETS WAIVERS) ASSETS WAIVERS)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 1.42% $ 219,441 0.31%2 0.70%2 2.79%2 2.40%2
9/30/98 3.40 181,984 0.29 0.74 3.35 2.90
9/30/97 3.39 147,658 0.28 0.73 3.34 2.89
9/30/96 3.43 112,097 0.25 0.74 3.33 2.84
9/30/95 3.65 76,673 0.21 0.74 3.61 3.08
9/30/94 2.52 69,673 0.10 0.76 2.53 1.87
SERVICE CLASS
10/1/98 through 3/31/99 6 1.27% $ 3,827 0.61%2 1.00%2 2.58%2 2.19%2
9/30/98 3.09 19,306 0.60 1.05 3.04 2.59
9/30/97 3.08 23,704 0.60 1.05 3.04 2.59
9/30/96 3.12 7,463 0.55 1.04 3.06 2.56
11/1/94 5 through 9/30/95 3.11 1,841 0.55 2 1.08 2 3.34 2 2.81 2
4/29/94 1 through 9/30/94 0.99 --3 0.36 2 1.02 2 2.54 2 1.87 2
INVESTOR A CLASS
10/1/98 through 3/31/99 6 1.18% $ 398 0.78%2 1.17%2 2.32%2 1.93%2
9/30/98 2.92 245 0.76 1.21 2.88 2.43
9/30/97 2.91 304 0.76 1.21 2.88 2.43
9/30/96 2.90 111 0.76 1.25 2.83 2.34
2/14/95 1 through 9/30/95 1.95 53 0.83 2 1.36 2 3.05 2 2.52 2
- -------------------------------------------
OHIO MUNICIPAL MONEY MONEY MARKET PORTFOLIO
- -------------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 1.46% $ 52,325 0.39%2 0.71%2 2.92%2 2.60%2
9/30/98 3.39 48,614 0.36 0.72 3.36 3.00
9/30/97 3.45 23,739 0.30 0.73 3.37 2.94
9/30/96 3.52 32,944 0.29 0.75 3.47 3.01
9/30/95 3.69 23,679 0.27 0.73 3.66 3.20
9/30/94 2.55 10,521 0.13 0.77 2.56 1.93
SERVICE CLASS
10/1/98 through 3/31/99 6 1.31% $ 40,870 0.69%2 1.01%2 2.64%2 2.32%2
9/30/98 3.08 58,077 0.67 1.03 3.04 2.68
9/30/97 3.15 58,160 0.61 1.03 3.10 2.68
9/30/96 3.21 45,525 0.59 1.05 3.17 2.71
9/30/95 3.38 49,857 0.57 1.03 3.35 2.89
9/30/94 2.27 44,066 0.40 1.04 2.29 1.65
INVESTOR A CLASS
10/1/98 through 3/31/99 6 1.22% $ 35,980 0.87%2 1.19%2 2.35%2 2.03%2
9/30/98 2.90 15,904 0.85 1.21 2.86 2.50
9/30/97 2.96 15,876 0.79 1.21 2.92 2.50
9/30/96 2.98 5,672 0.79 1.25 2.88 2.42
9/30/95 3.15 75 0.80 1.26 3.02 2.56
10/5/93 1 through 9/30/94 2.01 28 0.62 2 1.26 2 1.94 2 1.30 2
- ---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
- ---------------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 1.36% $ 421,207 0.42%2 0.69%2 2.71%2 2.44%2
9/30/98 3.27 350,249 0.39 0.71 3.19 2.87
9/30/97 3.37 229,164 0.30 0.70 3.31 2.91
9/30/96 3.40 198,822 0.29 0.71 3.34 2.92
9/30/95 3.61 233,414 0.26 0.68 3.54 3.12
9/30/94 2.49 158,102 0.16 0.73 2.64 2.07
</TABLE>
See accompanying notes to financial statements.
34-35
<PAGE>
BLACKROCK FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET
ASSET DISTRIBUTIONS FROM NET ASSET
VALUE NET FROM NET REALIZED VALUE
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF
OF PERIOD INCOME INCOME GAINS PERIOD
- -------------------------------------------------------------------------------------------------
- ---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO(CONTINUED)
- ---------------------------------------------
<S> <C> <C> <C> <C> <C>
SERVICE CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0121 $(0.0121) $0.00 $1.00
9/30/98 1.00 0.0292 (0.0292) 0.00 1.00
9/30/97 1.00 0.0302 (0.0302) 0.00 1.00
9/30/96 1.00 0.0304 (0.0304) 0.00 1.00
9/30/95 1.00 0.0325 (0.0325) 0.00 1.00
9/30/94 1.00 0.0221 (0.0221) 0.00 1.00
INVESTOR A CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0113 $(0.0113) $0.00 $1.00
9/30/98 1.00 0.0276 (0.0276) 0.00 1.00
9/30/97 1.00 0.0285 (0.0285) 0.00 1.00
9/30/96 1.00 0.0281 (0.0281) 0.00 1.00
9/30/95 1.00 0.0302 (0.0302) 0.00 1.00
12/28/93 1 through 9/30/94 1.00 0.0153 (0.0153) 0.00 1.00
- -----------------------------------------
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0144 $(0.0144) $0.00 $1.00
9/30/98 1.00 0.0338 (0.0338) 0.00 1.00
9/30/97 1.00 0.0347 (0.0347) 0.00 1.00
9/30/96 1.00 0.0348 (0.0348) 0.00 1.00
9/30/95 1.00 0.0368 (0.0368) 0.00 1.00
7/25/94 1 through 9/30/94 1.00 0.0053 (0.0053) 0.00 1.00
SERVICE CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0129 $(0.0129) $0.00 $1.00
9/30/98 1.00 0.0308 (0.0308) 0.00 1.00
9/30/97 1.00 0.0317 (0.0317) 0.00 1.00
9/30/96 1.00 0.0318 (0.0318) 0.00 1.00
10/11/94 1 through 9/30/95 1.00 0.0330 (0.0330) 0.00 1.00
INVESTOR A CLASS
10/1/98 through 3/31/99 6 $1.00 $0.0115 $(0.0115) $0.00 $1.00
9/30/98 1.00 0.0280 (0.0280) 0.00 1.00
5/27/97 1 through 9/30/97 1.00 0.0102 (0.0102) 0.00 1.00
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
NET RATIO OF EXPENSES INVESTMENT INCOME
ASSETS RATIO OF TO AVERAGE RATIO OF NET TO AVERAGE
END OF EXPENSES TO NET ASSETS INVESTMENT INCOME NET ASSETS
TOTAL PERIOD AVERAGE NET (EXCLUDING TO AVERAGE NET (EXCLUDING
RETURN (000) ASSETS WAIVERS) ASSETSWAIVERS)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO(CONTINUED)
- ---------------------------------------------
SERVICE CLASS
10/1/98 through 3/31/99 6 1.21% $ 83,175 0.72%2 0.99%2 2.41%2 2.14%2
9/30/98 2.97 73,735 0.69 1.01 2.92 2.60
9/30/97 3.06 234,472 0.61 1.01 3.01 2.61
9/30/96 3.04 224,197 0.59 1.01 3.02 2.59
9/30/95 3.33 147,739 0.57 0.99 3.29 2.87
9/30/94 2.24 60,560 0.42 0.99 2.31 1.75
INVESTOR A CLASS
10/1/98 through 3/31/99 6 1.13% $ 137,762 0.88%2 1.15%2 2.25%2 1.98%2
9/30/98 2.80 110,860 0.85 1.17 2.75 2.43
9/30/97 2.89 98,218 0.77 1.17 2.85 2.45
9/30/96 2.90 63,424 0.81 1.23 2.81 2.39
9/30/95 3.06 750 0.82 1.24 3.03 2.61
12/28/93 1 through 9/30/94 1.58 139 0.65 2 1.22 2 2.11 2 1.54 2
- -----------------------------------------
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------
INSTITUTIONAL CLASS
10/1/98 through 3/31/99 6 1.44% $ 63,944 0.30%2 0.74%2 2.89%2 2.45%2
9/30/98 3.43 77,812 0.30 0.77 3.37 2.90
9/30/97 3.53 62,834 0.22 0.81 3.49 2.90
9/30/96 3.54 38,553 0.14 0.82 3.47 2.79
9/30/95 3.74 24,409 0.10 0.95 3.71 2.86
7/25/94 1 through 9/30/94 0.53 13,831 0.10 2 1.02 2 2.89 2 1.97 2
SERVICE CLASS
10/1/98 through 3/31/99 6 1.29% $ 2,611 0.60%2 1.04%2 2.58%2 2.14%2
9/30/98 3.13 3,405 0.60 1.07 3.08 2.61
9/30/97 3.22 5,244 0.48 1.07 3.12 2.53
9/30/96 3.25 14,968 0.45 1.12 3.05 2.38
10/11/94 1 through 9/30/95 3.35 821 0.40 2 1.25 2 3.50 2 2.65 2
INVESTOR A CLASS
10/1/98 through 3/31/99 6 1.16% $ 573 0.87%2 1.31%2 2.32%2 1.88%2
9/30/98 2.84 643 0.87 1.34 2.85 2.38
5/27/97 1 through 9/30/97 1.03 1,096 0.86 2 1.45 2 2.95 2 2.36 2
<FN>
1 Commencement of operations of share class.
2 Annualized.
3 There were no Service Shares outstanding as of September 30, 1994.
4 There were no Investor B shares outstanding as of September 30, 1997.
5 Reissuance of shares.
6 Unaudited.
7 There were no Investor C shares outstanding as of March 31, 1999.
</FN>
</TABLE>
36-37
<PAGE>
BLACKROCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
BlackRock Funds(SM) ("the Fund") was organized on December 22, 1988 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as an open-end management investment company. The Fund
currently has 36 publicly-offered portfolios, eight of which are included in
these financial statements (the "Portfolios"). Each Portfolio is authorized to
issue an unlimited number of shares with a par value of $0.001. Each portfolio
of the Fund may offer as many as six classes of shares. Shares of all classes of
a Portfolio represent equal pro rata interests in such Portfolio, except that
each class bears different expenses which reflect the difference in the range of
services provided to them. The following table provides a list of the Portfolios
included in this report along with their respective class-specific fee
arrangements as provided under the Fund's Amended and Restated Distribution and
Service Plan (the "Plan"). Fees are expressed as a percentage of average daily
net asset values of the respective classes.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Share Classes
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional Service Investor A Investor B Investor C
- -----------------------------------------------------------------------------------------------------------------------------------
Contractual Actual Contractual Actual Contractual Actual Contractual Actual Contractual Actual
Fees Fees(4) Fees (1) Fees(4) Fees(2) Fees(4) Fees(3) Fees(4) Fees(3) Fees(4)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% 1.00% 1.15% 1.00%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% N/A 1.15% 1.00%
- -----------------------------------------------------------------------------------------------------------------------------------
Municipal Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% N/A 1.15% N/A
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey Municipal
Money Market None None 0.30% 0.30% 0.50% 0.48% 1.15% 1.00% 1.15% N/A
- -----------------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal
Money Market None None 0.30% 0.30% 0.50% 0.40% 1.15% N/A 1.15% N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal Money Market None None 0.30% 0.30% 0.50% 0.41% 1.15% N/A 1.15% N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Municipal
Money Market None None 0.30% 0.30% 0.50% 0.47% 1.15% N/A 1.15% N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Virginia Municipal
Money Market None None 0.30% 0.30% 0.50% 0.50% 1.15% N/A 1.15% N/A
- -----------------------------------------------------------------------------------------------------------------------------------
<FN>
(1)-- the maximum annual contractual fees are comprised of a .15% service fee
and .15% shareholder processing fee.
(2)-- the maximum annual contractual fees are comprised of a .10% distribution
fee, .25% service fee and .15% shareholder processing fee.
(3)-- the maximum annual contractual fees are comprised of a .75% distribution
fee, .25% service fee and .15% shareholder processing fee.
(4)-- the actual fees are as of March 31, 1999.
</FN>
</TABLE>
In addition, Institutional and Service shares bear a Transfer Agent fee at an
annual rate not to exceed .03% and Investor A, Investor B and Investor C shares
bear a Transfer Agent fee at an annual rate not to exceed .10% of the average
daily net assets of such respective classes.
Purchases of Class B shares and Class C shares are subject to contingent
deferred sales charges ("CDSCs") if shares are redeemed, declining over 6 years
from a high of 4.5% for Class B shares and 1% if shares are redeemed within 12
months of their purchase for Class C shares. CDSCs collected by the portfolios
totaled $23,375 for Class B shares and $1,741 for Class C shares for the six
months ended March 31, 1999.
(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires the use of management estimates. Actual results could differ from the
estimates.
SECURITY VALUATION -- Portfolio securities are valued under the amortized
cost method which approximates current market value. Under this method,
securities are valued at cost when purchased and thereafter, a constant
proportionate amortization of any discount or premium is recorded until the
maturity of the security. Regular review and monitoring of the valuation is
performed in an attempt to avoid dilution or other unfair results to
shareholders. The Fund seeks to maintain the net asset value per share of each
Portfolio at $1.00.
DIVIDENDS TO SHAREHOLDERS -- Dividends from net investment income are
declared daily and paid monthly. Net realized capital gains, if any, will be
distributed at least annually.
38
<PAGE>
BLACKROCK FUNDS
FEDERAL TAXES -- No provision is made for federal taxes as it is the Fund's
intention to have each Portfolio continue to qualify as a regulated investment
company and to make the requisite distributions to its shareholders which will
be sufficient to relieve it from federal income and excise taxes.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
federal income tax purposes. Interest income is recorded on the accrual basis.
Expenses not directly attributable to a specific Portfolio or class are
allocated among all of the Portfolios or classes of the Fund based on their
relative net assets.
REPURCHASE AGREEMENTS -- Money market instruments may be purchased from
banks and non-bank dealers subject to the seller's agreement to repurchase them
at an agreed upon date and price. Collateral for repurchase agreements may have
longer maturities than the maximum permissible remaining maturity of portfolio
investments. The seller will be required on a daily basis to maintain the value
of the securities subject to the agreement at not less than the repurchase
price. The agreements are conditioned upon the collateral being deposited under
the Federal Reserve book-entry system or held in a separate account by the
Fund's custodian or an authorized securities depository.
(B) TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to an Investment Advisory Agreement, BlackRock Advisors, Inc.
("BlackRock"), a wholly-owned subsidiary of BlackRock, Inc., serves as
investment adviser to the Portfolios. BlackRock Institutional Management
Corporation ("BIMC"), a wholly-owned subsidiary of BlackRock, serves as
sub-adviser to the Portfolios. BlackRock, Inc. is an indirect majority-owned
subsidiary of PNC Bank Corp.
For its advisory services, BlackRock is entitled to receive fees at the
following annual rates, computed daily and payable monthly, based on each
Portfolio's average net assets: .45% of the first $1 billion, .40% of the next
$1 billion, .375% of the next $1 billion and .35% of net assets in excess of $3
billion.
For the period ended March 31, 1999, advisory fees and waivers for each
Portfolio were as follows:
<TABLE>
<CAPTION>
Gross Net
Advisory Fee Waiver Advisory Fee
------------- ---------- ------------
<S> <C> <C> <C>
Money Market Portfolio .......................... $6,639,230 $3,138,012 $3,501,218
U.S. Treasury Money Market Portfolio ............ 2,260,469 1,329,721 930,748
Municipal Money Market Portfolio ................ 1,074,570 689,955 384,615
New Jersey Municipal Money Market Portfolio ..... 338,902 238,777 100,125
North Carolina Municipal Money Market Portfolio . 463,903 393,335 70,568
Ohio Municipal Money Market Portfolio ........... 271,495 193,773 77,722
Pennsylvania Municipal Money Market Portfolio ... 1,468,947 897,476 571,471
Virginia Municipal Money Market Portfolio ....... 149,468 136,855 12,613
</TABLE>
BlackRock pays BIMC for its sub-advisory services.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank Corp.,
BlackRock, and BlackRock Distributors, Inc. ("BDI") act as co-administrators for
the Fund. The combined administration fee is computed daily and payable monthly,
based on a percentage of the average daily net assets of each Portfolio, at the
following annual rates: .18% of the first $500 million, .16% of the next $500
million, .14% of the next $1 billion and .13% of average daily net assets in
excess of $2 billion.
For the period ended March 31, 1999, administration fees and waivers for
each Portfolio were as follows:
<TABLE>
<CAPTION>
Gross Net
Administration Administration
Fee Waiver Fee
-------------- ------ --------------
<S> <C> <C> <C>
Money Market Portfolio .......................... $2,493,553 $ 8 $2,493,545
U.S. Treasury Money Market Portfolio ............ 860,689 55,941 804,748
Municipal Money Market Portfolio ................ 429,060 -- 429,060
New Jersey Municipal Money Market Portfolio ..... 135,568 -- 135,568
North Carolina Municipal Money Market Portfolio . 178,538 13,594 164,944
Ohio Municipal Money Market Portfolio ........... 108,598 -- 108,598
Pennsylvania Municipal Money Market Portfolio ... 574,832 -- 574,832
Virginia Municipal Money Market Portfolio ....... 59,787 8,020 51,767
</TABLE>
39
<PAGE>
BLACKROCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(B) TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
Prior to February 1, 1999, BlackRock may have, at its discretion, waived all
or any portion of its advisory fees for any Portfolio. In addition, PFPC,
BlackRock and BDI may have, at their discretion, voluntarily waived all or any
portion of their administration fees for any Portfolio.
In the interest of limiting the expenses of the Portfolios, BlackRock and
the Fund have entered into an expense limitation agreement effective February 1,
1999. The agreement sets a limit on certain of the operating expenses of each
Portfolio for the next year and requires BlackRock to waive or reimburse fees or
expenses if these operating expenses exceed that limit. These expense limits
(which apply to expenses charged on Portfolio assets as a whole, but not
expenses separately charged to the different share classes of a Portfolio) as a
percentage of average daily net assets are:
Money Market ................................. .310%
U.S. Treasury Money Market ................... .295%
Municipal Money Market ....................... .295%
New Jersey Municipal Money Market ............ .265%
North Carolina Municipal Money Market ........ .195%
Ohio Municipal Money Market .................. .265%
Pennsylvania Municipal Money Market .......... .295%
Virginia Municipal Money Market .............. .205%
If in the following two years the operating expenses of a Portfolio that
previously received a waiver or reimbursement from BlackRock are less than the
expense limit for that Portfolio, the Portfolio is required to repay BlackRock
up to the amount of fees waived or expenses reimbursed under the agreement if:
(1) the Portfolio has more than $50 million in assets, (2) BlackRock continues
to be the Portfolio's investment adviser and (3) the Board of Trustees of the
Fund has approved the payments to BlackRock on a quarterly basis.
At March 31, 1999, the amount of advisory fee waiver and reimbursement of
expenses by the BlackRock subject to possible reimbursement under the expense
limitation agreement were as follows:
Money Market ................................ $1,075,359
U.S. Treasury Money Market .................. 449,978
Municipal Money Market ...................... 231,505
New Jersey Municipal Money Market ........... 77,991
North Carolina Municipal Money Market ....... 138,392
Ohio Municipal Money Market ................. 64,307
Pennsylvania Municipal Money Market ......... 300,666
Virginia Municipal Money Market ............. 42,455
In addition, PFPCTrust Co. (formerly PNC Bank, National Association) serves
as custodian for each of the Fund's Portfolios. PFPC serves as transfer agent
and dividend disbursing agent.
Under the Fund's Distribution and Service Plan (the "Plan"), Investor Shares
of the Portfolios bear the expense of payments ("distribution fees") made to BDI
as the Fund's distributor (the "Distributor"), or affiliates of PNC Bank, for
distribution and sales support services. Under the Plan, the Fund has entered
into service agreements with service organization (including PNC Bank and its
affiliates) with respect to each class of Investor Shares and Service Shares.
Refer to the fee table in the "Notes to Financial Statements" for fee
information.
40
<PAGE>
BLACKROCK FUNDS
(C) CAPITAL SHARES
Because the Portfolios have each sold and redeemed shares only at a constant
net asset value of $1.00 per share, the number of shares represented by such
sales, acquisitions, reinvestments, and redemptions is the same as the dollar
amounts shown below for such transactions.
Transactions in capital shares for each period were as follows:
Money Market Portfolio
------------------------------------
For the For the Year
Six Months Ended Ended
3/31/99 9/30/98
----------------- ---------------
(Unaudited)
Shares sold:
Institutional Class ......... $ 1,466,072,707 $ 2,510,904,701
Service Class ............... 1,530,614,460 3,267,936,137
Investor A Class ............ 1,011,197,457 676,723,074
Investor B Class ............ 5,205,773 2,530,449
Investor C Class ............ 4,943,789 946,664
Shares issued in reinvestment
of dividends:
Institutional Class ......... 270,064 306,762
Service Class ............... 3,578,386 7,205,011
Investor A Class ............ 9,404,413 14,652,032
Investor B Class ............ 39,892 15,628
Investor C Class ............ 8,944 8,209
Shares redeemed:
Institutional Class ......... (1,181,261,466) (1,531,603,582)
Service Class ............... (1,536,269,363) (4,076,598,378)
Investor A Class ............ (883,609,884) (581,949,740)
Investor B Class ............ (3,086,183) (978,676)
Investor C Class ............ (4,063,402) (619,564)
--------------- --------------
Net increase ..................... $ 423,045,587 $ 289,478,727
=============== ===============
U.S. Treasury Money
Market Portfolio
------------------------------------
For the For the Year
Six Months Ended Ended
3/31/99 9/30/98
----------------- ---------------
(Unaudited)
Shares sold:
Institutional Class ......... $ 552,152,270 $ 832,070,282
Service Class ............... 1,266,877,449 2,146,642,590
Investor A Class ............ 44,357,631 171,010,303
Investor C Class ............ 54,331 --
Shares issued in reinvestment
of dividends:
Institutional Class ......... 6,805 43,378
Service Class ............... 1,301,832 2,692,251
Investor A Class ............ 1,572,085 2,912,580
Investor C Class ............ 412 --
Shares redeemed:
Institutional Class ......... (467,897,787) (697,032,232)
Service Class ............... (1,286,486,881) (2,388,962,298)
Investor A Class ............ (45,009,126) (145,547,973)
Investor C Class ............ -- --
-------------- --------------
Net increase (decrease) .......... $ 66,929,021 $ (76,171,119)
============== ==============
41
<PAGE>
BLACKROCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Municipal Money
Market Portfolio
------------------------------------
For the For the Year
Six Months Ended Ended
3/31/99 9/30/98
----------------- ---------------
(Unaudited)
Shares sold:
Institutional Class ......... $471,117,960 $ 546,473,646
Service Class ............... 410,256,837 1,026,869,769
Investor A Class ............ 10,069,168 39,593,819
Investor C Class ............ 115 305,586
Shares issued in reinvestment
of dividends:
Institutional Class ......... -- --
Service Class ............... 467,113 2,065,608
Investor A Class ............ 107,794 179,254
Investor C Class ............ 1,397 119
Shares redeemed:
Institutional Class ......... (402,953,508) (358,486,165)
Service Class ............... (366,974,158) (1,216,688,846)
Investor A Class ............ (11,210,224) (39,014,287)
Investor C Class ............ (307,093) (11,878)
------------ -------------
Net increase ..................... $110,575,401 $ 1,286,625
============ =============
New Jersey Municipal
Money Market Portfolio
------------------------------------
For the For the Year
Six Months Ended Ended
3/31/99 9/30/98
----------------- ---------------
(Unaudited)
Shares sold:
Institutional Class ......... $ 75,342,450 $ 116,435,928
Service Class ............... 17,794,808 124,130,716
Investor A Class ............ 61,218,823 125,044,352
Investor B Class ............ -- 100
Shares issued in reinvestment
of dividends:
Institutional Class ......... 27,022 57,896
Service Class ............... 39,062 99,423
Investor A Class ............ 462,453 845,821
Investor B Class ............ 1 1
Shares redeemed:
Institutional Class ......... (61,054,680) (55,155,262)
Service Class ............... (18,039,173) (190,373,134)
Investor A Class ............ (72,463,395) (103,586,101)
Investor B Class ............ -- (50)
------------ -------------
Net increase ..................... $ 3,327,371 $ 17,499,690
============ =============
42
<PAGE>
BLACKROCK FUNDS
North Carolina Municipal
Money Market Portfolio
------------------------------------
For the For the Year
Six Months Ended Ended
3/31/99 9/30/98
----------------- ---------------
(Unaudited)
Shares sold:
Institutional Class ......... $ 247,868,561 $ 545,618,487
Service Class ............... 42,124,887 72,622,006
Investor A Class ............ 190,110 7,409,137
Shares issued in reinvestment
of dividends:
Institutional Class ......... -- --
Service Class ............... 18,948 71,644
Investor A Class ............ 4,391 7,434
Shares redeemed:
Institutional Class ......... (210,411,930) (511,293,347)
Service Class ............... (57,622,939) (77,091,688)
Investor A Class ............ (41,525) (7,475,546)
------------- -------------
Net increase ..................... $ 22,130,503 $ 29,868,127
============= =============
Ohio Municipal
Money Market Portfolio
------------------------------------
For the For the Year
Six Months Ended Ended
3/31/99 9/30/98
----------------- ---------------
(Unaudited)
Shares sold:
Institutional Class ......... $101,982,706 $ 414,685,160
Service Class ............... 52,723,967 159,193,335
Investor A Class ............ 35,171,883 36,700,772
Shares issued in reinvestment
of dividends:
Institutional Class ......... 306 3,769
Service Class ............... 365,653 848,456
Investor A Class ............ 260,484 515,271
Shares redeemed:
Institutional Class ......... (98,271,627) (389,809,601)
Service Class ............... (70,296,983) (160,114,921)
Investor A Class ............ (15,356,554) (37,185,701)
----------- -------------
Net increase ..................... $ 6,579,835 $ 24,836,540
=========== =============
43
<PAGE>
BLACKROCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Pennsylvania Municipal
Money Market Portfolio
------------------------------------
For the For the Year
Six Months Ended Ended
3/31/99 9/30/98
----------------- ---------------
(Unaudited)
Shares sold:
Institutional Class ......... $ 611,379,999 $ 1,298,202,042
Service Class ............... 96,625,197 491,105,327
Investor A Class ............ 199,958,593 410,558,185
Shares issued in reinvestment
of dividends:
Institutional Class ......... 30,290 92,480
Service Class ............... 339,406 783,544
Investor A Class ............ 1,492,580 3,060,363
Shares redeemed:
Institutional Class ......... (540,452,541) (1,177,210,499)
Service Class ............... (87,524,678) (652,626,616)
Investor A Class ............ (174,548,791) (400,976,358)
------------- ---------------
Net increase (decrease) .......... $ 107,300,055 $ (27,011,532)
============= ===============
Virginia Municipal
Money Market Portfolio
------------------------------------
For the For the Year
Six Months Ended Ended
3/31/99 9/30/98
----------------- ---------------
(Unaudited)
Shares sold:
Institutional Class ......... $ 49,908,553 $ 153,965,984
Service Class ............... 6,151,585 14,299,211
Investor A Class ............ 424,789 2,052,243
Shares issued in reinvestment
of dividends:
Institutional Class ......... 199,228 412,471
Service Class ............... 42,337 105,608
Investor A Class ............ 7,708 26,613
Shares redeemed:
Institutional Class ......... (63,976,327) (139,400,364)
Service Class ............... (6,988,087) (16,243,970)
Investor A Class ............ (502,126) (2,531,456)
------------ -------------
Net increase (decrease) .......... $(14,732,340) $ 12,686,340
============ =============
44
<PAGE>
BLACKROCK FUNDS
(D) AT MARCH 31, 1999, NET ASSETS CONSISTED OF:
<TABLE>
<CAPTION>
U.S. New Jersey
Treasury Municipal Municipal
Money Market Money Market Money Market Money Market
Portfolio Portfolio Portfolio Portfolio
-------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
Capital paid-in ...................................... $3,457,692,125 $1,032,527,036 $507,321,514 $151,253,185
Accumulated net realized gain (loss) on
investment transactions ........................... 43,241 46,592 (325,622)1 (2,945)
Net unrealized market discount ....................... -- -- 240 --
-------------- -------------- ------------ ------------
$3,457,735,366 $1,032,573,628 $506,996,132 $151,250,240
============== ============== ============ ============
</TABLE>
<TABLE>
<CAPTION>
North
Carolina Ohio Pennsylvania Virginia
Municipal Municipal Municipal Municipal
Money Market Money Market Money Market Money Market
Portfolio Portfolio Portfolio Portfolio
------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
Capital paid-in ...................................... $223,664,372 $129,203,594 $642,154,113 $ 67,128,189
Accumulated net realized gain (loss)
on investment transactions ........................ (121) (28,888)1 (13,100)1 (573)1
Net unrealized market discount ....................... 1,750 -- 3,125 (20)
------------ ------------ ------------ ------------
$223,666,001 $129,174,706 $642,144,138 $ 67,127,596
============ ============ ============ ============
<FN>
(1) Includes $3,317, $16,541, $1,050 and $401 of deferred post-October losses as of September 30, 1998,
respectively.
</FN>
</TABLE>
(E) CAPITAL LOSS CARRYOVER
At September 30, 1998, capital loss carryovers were available to offset
possible future realized capital gains as follows:
Capital Loss Year Of
Carryforward Expiration
------------- ----------
Municipal Money Market Portfolio: $252,688 1999
15,971 2000
20,433 2001
19,387 2002
12,355 2003
1,471 2006
New Jersey Municipal Money
Market Portfolio: 6,567 2001
340 2002
1,288 2006
North Carolina Municipal Money
Market Portfolio: 121 2003
Ohio Municipal Money Market
Portfolio: 2,285 2002
5,840 2005
4,223 2006
Pennsylvania Municipal Money
Market Portfolio: 2,459 2002
1,329 2003
3,233 2004
1,626 2005
3,403 2006
Virginia Municipal Money Market
Portfolio: 171 2003
45
<PAGE>
BLACKROCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(F) CONVERSION OF COMMON TRUST FUNDS
On January 13, 1998, January 22, 1998 and February 9, 1998 the Board of
Trustees of the Fund, the Board of Directors of PNC Bank and the Board of
Directors of PNC Bank, Delaware, respectively, approved an asset purchase
agreement among the Fund, PNC Bank, Delaware regarding 25 common trust funds for
which either PNC Bank or PNC Bank, Delaware serve as trustee (each a "PNC Common
Trust Fund"). The agreement provided for the acquisition by the Fund of all of
the assets and liabilities of each PNC Common Trust Fund managed by the Advisor
in a tax-free exchange for Institutional shares of the corresponding
portfolio(s) of the Fund and the distribution of such Institutional shares to
the participating trusts of the PNC Common Trust Funds in liquidation of the PNC
Common Trust Funds. The conversion occurred in May, 1998. There were no
BlackRock money market portfolios involved in the PNC Common Trust Fund
conversion.
46
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
BLACKROCK FUNDS
Investment Adviser Co-Administrator and Distributor
BlackRock Advisors, Inc. BlackRock Distributors, Inc.
New York, New York 10154 West Conshohocken, Pennsylvania
19428
Sub-Adviser
BlackRock Institutional Management Co-Administrators
Corporation BlackRock Advisors, Inc.
Wilmington, Delaware 19809 New York, New York 10154
Custodian Counsel
PFPC Trust Co. Simpson, Thatcher & Bartlett
Philadelphia, Pennsylvania 19103 New York, New York 10017
(A partnership which includes
Co-Administrator and Transfer Agent professional corporations)
PFPC Inc.
Wilmington, Delaware 19809 Independent Accountants
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania 19103
To reduce expenses, the Fund will mail only one copy of annual and semi-annual
reports and most prospectuses to your household, even if more than one person in
the household has a Fund account. Please call (800) 441-7762 if you would like
to receive additional reports or prospectuses.
<PAGE>
BLACKROCK FUNDS
FUND SPECTRUM
BLACKROCK FUNDS IS A LEADING MUTUAL FUND COMPANY CURRENTLY MANAGING IN EXCESS OF
$25 BILLION IN 36 PORTFOLIOS DESIGNED TO FIT A BROAD RANGE OF INVESTMENT GOALS.
EACH PORTFOLIO IS MANAGED BY RECOGNIZED EXPERTS IN EQUITY, FIXED INCOME,
INTERNATIONAL, AND TAX-FREE INVESTING WHO ADHERE TO A PURE INVESTMENT
STYLE.
STOCK PORTFOLIOS
Large Cap Value Equity Micro-Cap Equity
Large Cap Growth Equity International Equity
Mid-Cap Value Equity International Small Cap Equity
Mid-Cap Growth Equity International Emerging Markets
Small Cap Value Equity Select Equity
Small Cap Growth Equity Index Equity
Micro-Cap Equity
STOCK & BOND PORTFOLIOS
Balanced
BOND PORTFOLIOS
Low Duration Bond GNMA
Intermediate Government Bond Managed Income
Intermediate Bond International Bond
Core Bond High Yield Bond
Government Income
TAX-FREE BOND PORTFOLIOS
Tax-Free Income Ohio Tax-Free Income
Pennsylvania Tax-Free Income Delaware Tax-Free Income
New Jersey Tax-Free Income Kentucky Tax-Free Income
MONEY MARKET PORTFOLIOS
Money Market North Carolina Municipal Money Market
U.S. Treasury Money Market Ohio Municipal Money Market
Municipal Money Market Pennsylvania Municipal Money Market
New Jersey Municipal Money Market Virginia Municipal Money Market
SHAREHOLDER PRIVILEGES
24 HOUR ACCOUNT INFORMATION
Call us at 1-800-441-7762, 24 hours a day, 7 days a week to get information
about your account balances, recent transactions and share prices. Note:
Institutional and Service Share Class investors should call 1-800-441-7764. You
can also reach us on the Internet through the World Wide Web by accessing
http://www.blackrock.com.
EXCHANGE PRIVILEGES
Should your investment goals change, shareholders in our Investor Class shares
may exchange all or part of their investments into the same share class of any
other portfolio of BlackRock Funds. (1)
AUTOMATIC INVESTMENT PLANS
Investor Class shareholders who want to invest regularly can arrange to have $50
or more automatically deducted from their checking or savings account and
invested in any of the BlackRock portfolios.
SYSTEMATIC WITHDRAWAL PLANS
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $100 or more from their BlackRock portfolios, as
long as their account is at least $1,000.
RETIREMENT PLANS
Shareholders may make investments in conjunction with individual IRAaccounts or
rollover IRAs.
GENERAL INFORMATION ABOUT THE BLACKROCK FUNDS
If you would like additional reports or have questions regarding any of the 36
BlackRock Funds, please call 1-800-FUTURE4 (1-800-388-8734)
(1) BLACKROCK FUNDS RESERVES THE RIGHT TO MODIFY OR TERMINATE THE EXCHANGE
PRIVILEGES AT ANY TIME.
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BLACKROCK
FUNDS
P.O. Box 8907
Wilmington, DE 19899
Shares of the Fund are not deposits or obligations of, or guaranteed or endorsed
by PNC Bank, National Association or any other bank and shares are not federally
insured by, guaranteed by, obligations of or otherwise supported by the U.S.
Government, the Federal Deposit Insurance Corporation, The Federal Reserve
Board, or any other governmental agency. Investments in shares of the fund
involve investment risks, including the possible loss of the principal amount
invested.
SR 3/31/99 MM
