March 31, 2000
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...............................................6
Municipal Money Market...................................................8
New Jersey Municipal Money Market.......................................14
North Carolina Municipal Money Market...................................17
Ohio Municipal Money Market.............................................20
Pennsylvania Municipal Money Market.....................................23
Virginia Municipal Money Market.........................................28
PORTFOLIO FINANCIAL STATEMENTS
Statements of Operations.............................................30-31
Statements of Changes in Net Assets..................................32-33
Financial Highlights.................................................34-41
NOTES TO FINANCIAL STATEMENTS..............................................42-49
<PAGE>
BLACKROCK FUNDS
March 31, 2000
Dear Shareholder:
We are pleased to present the Semi-Annual Report for the BlackRock Funds
for the six months ending March 31, 2000.
As the first quarter of the new millennium draws to a close, the economy
continues to impress us with its continued strength and resilience -- however we
remain concerned about future volatility. Since we last reported to you on Sept
30, 1999 the stock market as measured by the S&P 500 returned 17.51%, the DJIA
returned 6.43%, the NASDAQ returned 66.68%, and the Lehman Aggregate Index
returned 2.08%.
What makes this economic strength more notable is that it is taking place
under the careful eye of the Federal Reserve which has a strict tightening bias
in place. On March 21, 2000 the Fed raised the rate for overnight bank loans
another 25 bps to 6% -- the highest rate in 3 years and the fifth straight
increase since last June. Historically, rising interest rates tend to discourage
the stock market but this didn't happen on March 21. Despite the rise in rates,
the DJIA jumped up 227 points and the NASDAQ index rose 101.7!
This seems to indicate that investors don't believe that small increases
in the cost of lending will be enough to stop growth from continuing. Is this
positive sentiment well founded?
It may be. It is clear that the business world is changing and that a
major instrument of this change is technology. A key driver in the growth of
technology is the Internet. It is still very early in the new economy, but it is
clear that major changes are taking place in the way that companies do business,
which can have tremendous impact on growth and profitability. One particularly
exciting area for investors is the so-called business to business (or B2B)
transactions in which the Internet will not only expedite the connections
between buyers and sellers but also provide the value- added services that will
likely increase the speed, efficiency and cost-effectiveness of these
transactions. The Internet can be one of the greatest business productivity
tools in history. This is important because as productivity increases, companies
can continue to grow without pricing pressure which means inflation can remain
in check and the economy can continue to grow.
While there appears to be plenty of good reason for optimism and
excitement, there are also reasons for caution.
There are several trends in the industry that may indicate that the market
is moving up faster and higher than is justified by growth fundamentals alone.
For example, many investors are fueling their purchases with borrowed money and
margin borrowing is currently at record highs. The investment industry is also
paying more than ever before to attract investors. Wall Street advertising
increased 95% last year (investment firms paid $1.2 billion to advertise
directly to the public last year, three times what they paid for ads 5 years
ago). Ten years ago, the average holding period for a NASDAQ stock was 2 years;
today its about 5 months.* This may indicate that investors are growing more
impatient, which could spell more and greater volatility ahead.
1
<PAGE>
BLACKROCK FUNDS
You don't have to look very hard to see examples of extreme volatility. On
March 7, 2000 when the DJIA lost 374 points, market action was precipitated when
Procter & Gamble did not make its earnings projections and plunged 31% in one
day. This kind of reaction may be extreme but it is certainly not rare. In fact,
9 days later on March 16th, the Dow rebounded and ran up 500 points. The Dow
ended the month up 1,126 points up from its low.
This is a challenging environment for investors because of both the
volatility and the continuous media interest in the Internet and the stock
market. Never before has the investing public had so much information available
to them via television, newspapers, magazines and the Internet. Today investors
can tune in televised stock market reports virtually round the clock and are
only a keystroke away from market information day or night.
The danger for investors is that focusing on volatility and news can
create a short-term view of investing which is generally not in their best
interest. Successful investing is a long term process and while it may be
interesting to get your market information as it unfolds, it doesn't have much
to do with long-term investing success. In the long run, stocks rise and fall
based on their ability to earn money. The ability to generate earnings depends
on the strength of a company's business franchise, the skill of its management
and other fundamental factors. These factors are all proven long term.
So, while we are pleased by the unprecedented prosperity we are enjoying,
we caution investors to perform a reality check on expectations. Last year four
of our funds returned over 100% to shareholders. We are extremely proud of these
results but we do not depend on them to continue at the same rate. The challenge
for investors is the same in these boom times as it is in lean times: to figure
out the mix of assets that make sense for your particular financial situation,
decide on a course of action and stay the course -- regardless of short-term
volatility.
BlackRock Funds is proud to be able to offer our shareholders a full range
of funds to meet virtually any investment need. We are pleased to announce that
later this year we will expand our offerings to include new equity funds
concentrating on three potential high growth areas: global science and
technology, European markets and Asia Pacific markets.
Thank you for your continued confidence in BlackRock Funds. We 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.
* Source: Business Week , 4/3 issue
2
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- --------------
CERTIFICATES OF DEPOSIT--8.2%
DOMESTIC--6.2%
Bank of America N.A.
6.17%** 04/03/00 $69,700 $ 69,700,000
Bank One N.A.
6.00% 05/17/00 50,000 50,000,000
First Chicago NBD
6.06% 08/14/00 25,000 24,995,414
Key Bank N.A.
5.71% 07/12/00 10,000 9,999,598
Wilmington Trust Co.
6.05% 04/14/00 25,000 25,000,000
5.99% 05/18/00 15,000 14,999,807
6.00% 05/18/00 12,100 12,100,000
6.11% 06/19/00 29,000 29,000,000
--------------
235,794,819
--------------
YANKEE DOLLAR--2.0%
Bank of Montreal Chicago
5.18% 05/10/00 24,850 24,848,977
National Westminster PLC
5.28% 04/03/00 50,000 49,999,941
--------------
74,848,918
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $310,643,737) 310,643,737
--------------
COMMERCIAL PAPER--64.2%
AIRCRAFT PARTS & AUXILIARY EQUIPMENT--1.3%
Textron Financial Corp.
5.90% 04/13/00 40,000 39,921,333
5.92% 05/02/00 10,000 9,949,022
--------------
49,870,355
--------------
ASSET BACKED SECURITIES--11.6%
Emerald Certificates Program
5.92% 04/05/00 35,000 34,976,978
5.92% 04/07/00 11,000 10,989,147
5.95% 04/10/00 7,735 7,723,494
6.09% 04/24/00 25,000 24,902,729
Fairway Finance Corp.
5.90% 04/17/00 35,556 35,462,764
6.10% 06/13/00 50,000 49,381,528
Grand Funding Corp.
5.95% 05/03/00 50,000 49,735,556
Moriarty LLC
5.87% 04/06/00 20,000 19,983,694
5.87% 04/10/00 50,000 49,926,625
5.90% 04/25/00 14,400 14,343,360
5.87% 04/26/00 25,000 24,898,090
Preferred Receivables Funding Corp.
6.09% 05/22/00 14,000 13,879,215
Sigma Finance, Inc.
6.00% 05/16/00 29,000 28,782,500
Special Purpose Accounts Receivable
5.93% 04/05/00 50,000 49,967,056
5.97% 05/15/00 23,000 22,832,177
Triple A-1 Funding
5.86% 04/10/00 600 599,121
--------------
438,384,034
--------------
Par
Maturity (000) Value
-------- ------- ------------
COMMERCIAL PAPER (CONTINUED)
BANKS--4.6%
AB Spintab
5.87% 04/25/00 $99,300 $ 98,911,406
Santander Finance, Inc.
5.90% 05/15/00 25,000 24,819,722
Swedbank
5.85% 04/11/00 50,000 49,918,750
--------------
173,649,878
--------------
HOSPITAL & MEDICAL SERVICE PLANS--0.6%
United Healthcare Corp.
5.92% 05/01/00 24,100 23,981,107
--------------
INSURANCE--0.9%
Aetna Services, Inc.
5.90% 04/03/00 20,000 19,993,444
5.90% 04/11/00 15,000 14,975,417
--------------
34,968,861
--------------
MISCELLANEOUS INDUSTRY & COMMERCIAL
MACHINERY & EQUIPMENT--3.8%
Invensys PLC
5.88% 04/24/00 49,750 49,563,106
5.85% 04/26/00 49,600 49,398,500
5.93% 05/09/00 25,000 24,843,514
5.90% 05/15/00 22,265 22,104,445
--------------
145,909,565
--------------
MOTOR VEHICLE PARTS & ACCESSORIES--0.8%
Eaton Corp.
5.95% 05/09/00 32,300 32,097,138
--------------
NATURAL GAS TRANSMISSION & DISTRIBUTION--1.5%
Consolidated Natural Gas Co.
5.90% 04/03/00 14,822 14,817,142
5.90% 04/06/00 17,700 17,685,496
Duke Capital Corp.
5.87% 04/13/00 23,000 22,954,997
--------------
55,457,635
--------------
OIL & GAS--4.3%
Repsol International Finance BV
5.92% 04/17/00 17,000 16,955,271
5.94% 04/18/00 11,400 11,368,023
5.92% 04/27/00 10,000 9,957,244
6.00% 05/09/00 9,493 9,432,878
6.00% 05/11/00 9,700 9,635,333
6.00% 05/16/00 10,000 9,925,000
5.98% 05/17/00 25,000 24,808,972
6.00% 05/17/00 56,000 55,570,667
6.03% 06/01/00 17,000 16,826,302
--------------
164,479,690
--------------
RETAIL MERCHANDISING--0.5%
St. Michael Finance Ltd.
5.90% 05/09/00 19,170 19,050,613
--------------
SECURITY BROKERS & DEALERS--10.3%
Bear Stearns Co., Inc.
5.89% 04/24/00 25,000 24,905,924
5.95% 05/23/00 25,000 24,785,139
6.00% 05/24/00 60,000 59,470,000
See accompanying notes to financial statements.
3
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- --------------
COMMERCIAL PAPER (CONTINUED)
SECURITY BROKERS & DEALERS (CONTINUED)
Donaldson, Lufkin & Jenrette, Inc.
6.15% 04/10/00 $39,700 $ 39,638,961
6.15% 04/11/00 25,000 24,957,292
6.17% 04/11/00 30,000 29,948,583
Morgan Stanley, Dean Witter & Co.
5.85% 04/12/00 50,000 49,910,625
5.93% 05/18/00 50,000 49,612,903
5.95% 06/05/00 65,000 64,301,701
Salomon Smith Barney Holdings, Inc.
6.00% 06/06/00 25,000 24,725,000
--------------
392,256,128
--------------
SHORT TERM BUSINESS CREDIT INSTITUTIONS--15.7%
Associates First Capital BV
5.91% 05/08/00 20,000 19,878,517
5.93% 05/26/00 75,000 74,320,521
5.94% 06/01/00 50,000 49,496,750
Finova Capital Corp.
5.90% 04/03/00 20,000 19,993,444
5.95% 05/11/00 14,900 14,801,494
6.00% 05/30/00 50,000 49,508,333
6.00% 06/01/00 24,000 23,756,000
6.00% 06/02/00 25,000 24,741,667
General Electric Capital International
Funding, Inc.
5.89% 04/21/00 30,000 29,901,833
6.01% 06/12/00 50,000 49,399,000
Heller Financial, Inc.
5.90% 04/13/00 35,000 34,931,167
5.92% 04/19/00 40,000 39,881,600
5.92% 04/20/00 30,000 29,906,267
6.00% 05/04/00 35,000 34,807,500
Sears Acceptance Corp.
5.90% 04/20/00 35,000 34,891,014
6.00% 05/16/00 30,000 29,775,000
6.00% 05/17/00 40,000 39,693,333
--------------
599,683,440
--------------
TELECOMMUNICATIONS--8.3%
British Telecommunication
5.89% 05/04/00 26,345 26,202,759
5.90% 05/08/00 100,000 99,393,611
GTE Corp.
5.90% 04/05/00 25,000 24,983,611
MCI Worldcom, Inc.
5.92% 04/17/00 27,100 27,028,697
5.92% 04/18/00 60,000 59,832,267
5.92% 04/19/00 47,000 46,860,880
5.92% 04/20/00 13,000 12,959,382
5.92% 04/26/00 20,000 19,917,778
--------------
317,178,985
--------------
TOTAL COMMERCIAL PAPER
(Cost $2,446,967,429) 2,446,967,429
--------------
TIME DEPOSITS--2.1%
Skandinaviska Enskilda Banken
6.38%
(Cost $80,000,000) 04/03/00 80,000 80,000,000
--------------
GUARANTEED INVESTMENT CONTRACT--1.6%
Peoples Security Life
6.08%
(Cost $60,000,000) 04/03/00 60,000 60,000,000
--------------
Par
Maturity (000) Value
-------- ------- --------------
MEDIUM TERM NOTES--4.2%
SECURITY BROKERS & DEALERS--4.2%
Goldman Sachs Group, Inc.
6.00% 04/12/00 $25,000 $ 25,000,000
6.09% 05/08/00 75,000 75,000,000
6.10% 05/10/00 59,200 59,200,000
--------------
TOTAL MEDIUM TERM NOTES
(Cost $159,200,000) 159,200,000
--------------
VARIABLE RATE OBLIGATIONS--19.8%
AIRCRAFT PARTS & AUXILIARY EQUIPMENT--1.2%
Textron Financial Corp.
6.10%** 05/02/00 44,600 44,600,000
--------------
ASSET BACKED SECURITIES--4.6%
Main Place Real Estate Investment
Trust
6.21%** 04/25/00 10,000 10,003,890
SMM Trust
6.02%** 04/13/00 80,000 80,000,000
6.15%** 04/13/00 20,000 20,000,000
6.11%** 05/26/00 64,850 64,850,000
--------------
174,853,890
--------------
BANKS--10.2%
American Express Centurion Bank
6.17%** 04/03/00 28,650 28,650,000
Bankers Trust Co.
6.01%** 04/10/00 25,000 24,999,248
Bayerische Hypo-Und Vereinsbank
5.91%** 04/14/00 75,000 74,998,402
5.91%** 04/17/00 75,000 74,992,826
Bayerische Landesbank Girozentrale
6.05%** 04/28/00 49,700 49,677,865
Key Bank N.A.
6.05%** 06/14/00 40,000 39,995,223
U.S. Bancorp
6.19%** 04/27/00 14,400 14,400,911
Westdeutsche Landesbank New York
6.05%** 04/25/00 29,500 29,486,907
Westpac Banking Corp.
5.97%** 04/04/00 50,000 49,985,986
--------------
387,187,368
--------------
CREDIT INSTITUTIONS--3.0%
American Honda Finance Corp.
6.08%** 05/04/00 19,700 19,696,582
6.07%** 05/08/00 10,000 9,995,998
6.08%** 05/17/00 25,000 24,992,459
6.06%** 05/24/00 10,000 9,999,719
Block Financial Corp.
6.10%** 04/27/00 25,000 24,889,861
General Motors Acceptance Corp.
6.00%** 04/20/00 25,000 24,995,526
--------------
114,570,145
--------------
FINANCE SERVICES--0.7%
7 World Trade Center, Inc.
6.27%** 06/01/00 25,000 25,000,000
--------------
SHORT TERM BUSINESS CREDIT INSTITUTIONS--0.2%
Caterpillar Financial Services Corp.
6.08%** 04/10/00 9,500 9,501,726
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $755,713,129) 755,713,129
--------------
See accompanying notes to financial statements.
4
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MONEY MARKET PORTFOLIO (CONCLUDED)
AS OF MARCH 31, 2000 (UNAUDITED) Shares Value
------- --------------
SHORT TERM INVESTMENTS--0.1%
Paine Webber Liquid Institutional
Reserves Money Market Fund
(Cost $4,333,247) 4,333,247 $ 4,333,247
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $3,816,857,542*) 100.2% 3,816,857,542
LIABILITIES IN EXCESS
OF OTHER ASSETS (0.2%) (7,280,840)
------- --------------
NETASSETS (Equivalent to $1.00
per share based on 2,328,726,304
Institutional shares, 758,408,922
Service shares, 177,261,469
Hilliard Lyons shares, 530,739,743
Investor A shares, 6,422,662
Investor B shares and 8,079,062
Investor C shares outstanding) 100.0% $3,809,576,702
======= ==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE, HILLIARD
LYONS, INVESTOR A, INVESTOR B
AND INVESTOR C SHARE
($3,809,576,702 (DIVIDE) 3,809,638,162) $1.00
=====
---------------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 2000.
See accompanying notes to financial statements.
5
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
U.S. TREASURY MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
U.S. TREASURY OBLIGATIONS--34.9%
U.S. Treasury Bills
5.98% 04/20/00 $26,000 $ 25,917,902
5.70% 04/27/00 93,135 92,752,073
5.30% 06/08/00 20,000 19,799,778
5.33% 07/20/00 20,000 19,674,278
U.S. Treasury Notes
5.50% 04/15/00 5,000 5,000,956
6.75% 04/30/00 51,000 51,064,136
6.38% 05/15/00 10,000 10,016,902
5.50% 05/31/00 7,500 7,503,526
6.25% 05/31/00 10,000 10,017,305
5.88% 06/30/00 5,000 5,005,985
5.38% 07/31/00 7,000 6,983,457
6.00% 08/15/00 43,000 42,993,186
6.25% 08/31/00 20,000 20,055,865
4.50% 09/30/00 5,000 4,975,034
4.00% 10/31/00 5,000 4,941,506
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $326,701,889) 326,701,889
------------
REPURCHASE AGREEMENTS--65.1%
ABN Ambro Securities
6.20% 04/03/00 40,900 40,900,000
(Agreement dated 03/31/00 to be
repurchased at $40,921,132.
Collateralized by $41,857,000 U.S.
Treasury Strips 0.00% due 04/20/00.
The value of the collateral is
$41,718,872.)
Barclay Investments
5.90% 06/06/00 25,000 25,000,000
(Agreement dated 03/07/00 to be
repurchased at $25,368,750.
Collateralized by $24,480,000 U.S.
Treasury Notes 8.50% due 11/15/00.
The value of the collateral is
$25,580,633.)
C.S. First Boston Corp.
5.80% 05/01/00 20,000 20,000,000
(Agreement dated 01/31/00 to be
repurchased at $20,290,000.
Collateralized by $20,198,000 U.S.
Treasury Notes 6.25% due 10/31/01.
The value of the collateral is
$21,100,640.)
C.S. First Boston Corp.
5.82% 05/10/00 25,000 25,000,000
(Agreement dated 02/10/00 to be
repurchased at $25,359,708.
Collateralized by $20,100,000 U.S.
Treasury Bonds 8.875% due 08/15/17.
The value of the collateral is
$26,178,490.)
Deutsche Bank Securties, Inc.
5.89% 05/15/00 20,000 20,000,000
(Agreement dated 03/15/00 to be
repurchased at $20,196,333.
Collateralized by $20,739,000 U.S.
Treasury Strips 0.00% due 07/13/00.
The value of the collateral is
$20,400,125.)
Par
Maturity (000) Value
-------- ------- ------------
REPURCHASE AGREEMENTS (CONTINUED)
Goldman Sachs & Co.
6.12% 04/03/00 $42,000 $ 42,000,000
(Agreement dated 03/31/00 to be
repurchased at $42,021,420.
Collateralized by $40,431,000 U.S.
Treasury Bonds 6.25% due 05/15/30. The
value of the collateral is
$42,840,754.)
Greenwich Capital Markets
6.05% 04/03/00 150,000 150,000,000
(Agreement dated 03/31/00 to be
repurchased at $150,075,625.
Collateralized by $316,554,000 U.S.
Treasury Strips 0.00% due 02/15/06
to 05/15/16. The value of the collateral
is $153,000,072.)
J.P. Morgan Securities
6.15% 04/03/00 42,000 42,000,000
(Agreement dated 03/31/00 to be
repurchased at $42,021,525.
Collateralized by $5,954,000 U.S.
Treasury Bonds 13.25% due 05/14/14
and $33,970,000 U.S. Treasury Strips
0.00% due 04/20/00. The value of the
collateral is $42,840,452.)
Lehman Brothers
5.71% 04/12/00 25,000 25,000,000
(Agreement dated 01/12/00 to be
repurchased at $25,356,875.
Collateralized by $25,000,000 U.S.
Treasury Strips 0.00% due 05/15/08.
The value of the collateral is
$25,501,659.)
Lehman Brothers
5.77% 04/26/00 25,000 25,000,000
(Agreement dated 01/26/00 to be
repurchased at $25,360,625.
Collateralized by $25,000,000 U.S.
Treasury Strips 0.00% due 05/15/08.
The value of the collateral is
$25,501,659.)
Morgan Stanley & Co.
6.32% 04/03/00 150,000 150,000,000
(Agreement dated 03/31/00 to be
repurchased at $150,078,938.
Collateralized by $154,615,000 U.S.
Treasury Strips 0.00% due 06/01/00.
The value of the collateral is
$153,195,016.)
Salomon Brothers
5.79% 05/04/00 25,000 25,000,000
(Agreement dated 02/04/00 to be
repurchased at $25,349,813.
Collateralized by $19,830,000 U.S.
Treasury Bonds 8.875% due 02/15/19.
The value of the collateral is
$26,105,698.)
Warburg, Dillon, Reed
5.83% 05/02/00 20,000 20,000,000
(Agreement dated 02/01/00 to be ------------
repurchased at $20,291,500.
Collateralized by $20,000,000 U.S.
Treasury Bonds 3.875% due 04/15/29.
The value of the collateral is
$20,401,355.)
TOTAL REPURCHASE AGREEMENTS
(Cost $609,900,000) 609,900,000
------------
See accompanying notes to financial statements.
6
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
U.S. TREASURY MONEY MARKET PORTFOLIO (CONCLUDED)
AS OF MARCH 31, 2000 (UNAUDITED) Value
-------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $936,601,889*) 100.0% $936,601,889
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.0% 80,316
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 358,555,977
Institutional shares, 531,227,326
Service shares and 46,930,700
Investor A shares outstanding) 100.0% $936,682,205
======= ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE
AND INVESTOR A SHARE
($936,682,205 (DIVIDE) 936,714,003) $1.00
=====
----------------------
* Aggregate cost for Federal tax purposes.
See accompanying notes to financial statements.
7
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- -------------
MUNICIPAL BONDS--99.9%
ALABAMA--3.3%
Columbia Board Pollution Control
Refunding IDRB (Alabama Power Co.
Project) Series 1995E DN
4.00%** 04/03/00 $ 6,600 $ 6,600,000
Huntsville Health Care Authority RB
Series 1998A DN
3.80%** 04/07/00 10,000 10,000,000
Montgomery Special Care Facilities
Financing Authority RB
Series 1985A DN
3.95%** 04/07/00 1,900 1,900,000
------------
18,500,000
------------
ALASKA--0.5%
Anchorage GO Series 2000 TAN
4.75% 02/02/01 3,000 3,015,695
------------
ARIZONA--1.3%
Coconino County Pollution Control
Corp. RB (Arizona Public Service
Project) Series 1999 DN
3.95%** 04/07/00 5,000 5,000,000
Phoenix Airport RB Series 1995A MB
5.55% 07/01/00 2,185 2,195,316
------------
7,195,316
------------
ARKANSAS--0.2%
Arkansas Development Authority Single
Family Mortgage RB Series 2000D MB
4.30% 03/01/01 1,000 1,000,000
------------
CALIFORNIA--3.8%
Alameda-Contra Costa School
Financing Authority Certificates
Partners RB (Capital Improvements
Financing Project) Series 1997A DN
3.30%** 04/07/00 7,400 7,400,000
California Higher Education Student
Loan Authority, Inc. Loan RB
Series 1992D-2 MB
3.50% 04/01/00 2,000 2,000,000
California RB Series 2000 DN
3.36%** 04/07/00 7,495 7,495,000
St. Lucie PCRB Series 2000 MB
4.05% 08/10/00 5,000 5,000,000
------------
21,895,000
------------
COLORADO--0.9%
Douglas County School District
Regional 1 Douglas & Elbert
Counties RB Series 1999 TAN
4.50% 06/30/00 1,500 1,503,220
Smith Creek Metropolitan District RB
Series 1995 DN
3.95%** 04/07/00 3,800 3,800,000
------------
5,303,220
------------
DELAWARE--1.2%
Delaware Economic Development
Authority RB (Normaco Income
Project) Series 1984 DN
4.05%** 04/07/00 6,600 6,600,000
------------
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
FLORIDA--0.8%
Capital Projects Finance Authority RB
(Florida Hospital Association -
Capital Loan Program Project)
Series 1998A DN
3.90%** 04/07/00 $ 2,500 $ 2,500,000
Greater Orlando Airport Authority GO
Series 2000 TECP
3.80% 05/17/00 2,000 2,000,000
------------
4,500,000
------------
GEORGIA--1.1%
Georgia GO Series 1993E BAN
4.38% 07/01/00 3,000 3,002,711
Georgia GO Series 1998C MB
5.75% 09/01/00 3,065 3,085,389
McDuffie County RB Series 2000 MB
4.75% 06/14/00 100 100,000
------------
6,188,100
------------
HAWAII--1.2%
Hawaii Department of Budget and
Finance RB Series 2000 MB
4.20% 07/11/00 7,000 7,000,000
------------
ILLINOIS--6.5%
Illinois Development Finance Authority
IDRB (Royal Continental Box Co.
Project) Series 1995A DN
4.00%** 04/07/00 700 700,000
Illinois Development Finance Authority
IDRB (Webster-Wayne Shopping
Center Project) Series 1985 DN
3.96%** 04/07/00 5,920 5,920,000
Illinois Development Finance Authority
PCRB (Illinois Power Co. Project)
Series 1993 MB
4.05% 08/17/00 4,000 4,000,000
Illinois Development Finance Authority
RB (Jewish Federation Projects)
Series 1999 DN
3.90%** 04/07/00 4,410 4,410,000
Illinois Educational Facilities Authority
RB (National Louis University Project)
Series 1999A DN
3.96%** 04/07/00 2,000 2,000,000
Illinois Health Facilities Authority RB
(Evanston Hospital Corp. Project)
Series 1990A MB
3.55% 07/31/00 9,500 9,500,000
Illinois Health Facilities Authority
Revolving Fund Pooled Financing
Program RB (The University of
Chicago Project) Series 1994 MB
4.15% 04/17/00 4,800 4,800,000
Roselle Village IDRB (Abrasive-Form,
Inc. Project) Series 1995 DN
4.38%** 04/07/00 1,700 1,700,000
Village of Schiller Park IDRB (Victor
Products Corp. Project)
Series 1995 DN
4.38%** 04/07/00 300 300,000
See accompanying notes to financial statements.
8
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- -----------
MUNICIPAL BONDS (CONTINUED)
ILLINOIS (CONTINUED)
Winnebago County RB (Mill Project)
Series 1996 DN
4.02%** 04/07/00 $ 3,840 $ 3,840,000
------------
37,170,000
------------
INDIANA--1.0%
Crawfordsville Industrial Economic
Development RB (Pedcor
Investments-Shady Knoll Apartments
Project) Series 1993 DN
4.00%** 04/07/00 3,330 3,330,000
Monroe County IDRB (Griner
Engineering, Inc. Project)
Series 1997 DN
4.10%** 04/07/00 2,140 2,140,000
------------
5,470,000
------------
IOWA--3.8%
Iowa Financial Authority Economic
Development RB (Easter Seal
Society Project) Series 1999 DN
4.05%** 04/07/00 3,200 3,200,000
Iowa Financial Authority Hospital
Facility RB (Iowa Health System
Project) Series 1998B DN
3.90%** 04/07/00 3,800 3,800,000
Iowa Financial Authority Hospital
Facility RB Series 1998B DN
3.90%** 04/07/00 14,800 14,800,000
------------
21,800,000
------------
KANSAS--1.1%
Shawnee Private Activity RB (Simmons
County Project) Series 1996 DN
4.05%** 04/07/00 3,700 3,700,000
Wyandotte County GO Series 2000 BAN
4.30% 02/01/01 2,337 2,336,500
------------
6,036,500
------------
KENTUCKY--1.2%
Jeffersontown Lease Program RB
Series 2000 DN
3.90%** 04/07/00 2,000 2,000,000
Meade County IDRB (Liters Quarry,
Inc. Project) Series 1999 DN
4.10%** 04/07/00 3,000 3,000,000
Pulaski County Solid Waste Disposal
RB (National Rural Utilities for East
Kentucky Power Project)
Series 1993B MB
4.05% 08/15/00 2,000 2,000,000
------------
7,000,000
------------
LOUISIANA--5.2%
Plaquemines Port Harbor GO
Series 2000 TECP
3.65% 04/06/00 6,000 6,000,000
3.65% 04/10/00 2,000 2,000,000
3.75% 05/11/00 21,600 21,600,000
------------
29,600,000
------------
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
MARYLAND--12.0%
Anne Arundel County RB (Mountain
Ridge Apartments Project)
Series 1996 DN
3.90%** 04/07/00 $ 6,135 $ 6,135,000
Anne Arundel County GO
Series 2000 TECP
3.70% 05/11/00 5,000 5,000,000
Baltimore County RB (Saint James
Academy Facilities Project)
Series 1999 DN
3.85%** 04/07/00 4,500 4,500,000
Baltimore County RB (Shade Tree
Trace Project) Series 1996 DN
3.90%** 04/07/00 6,340 6,340,000
Baltimore IDRB (Capital Acquisition
Project) Series 1986 DN
3.85%** 04/07/00 9,200 9,200,000
Community Development
Administration Multifamily
Development RB (Avalon Ridge
Apartments Project) Series 1997 DN
3.75%** 04/07/00 5,000 5,000,000
Maryland Finance Authority IDRB
(Baltimore International Culinary
Project) Series 1994 DN
4.05%** 04/07/00 3,525 3,525,000
Maryland Finance IDRB (Brass Mill
Road LP Facility Project)
Series 1995 DN
3.90%** 04/07/00 2,790 2,790,000
Maryland Finance IDRB (Patapsco
Associates LP Facility Project)
Series 1995 DN
3.90%** 04/07/00 1,910 1,910,000
Maryland Health and Higher Education
Facilities Authority RB (Catholic
Health Project) Series 1997B DN
3.95%** 04/07/00 5,400 5,400,000
Maryland Stadium Authority Sports
Facilities RB Series 1999 DN
3.95%** 04/07/00 12,500 12,499,889
University of Maryland RB (University
Revenue Revolving Equipment
Loan Project) Series 1996B DN
3.80%** 04/07/00 6,200 6,200,000
------------
68,499,889
------------
MASSACHUSETTS--2.2%
Massachusetts Municipal Wholesale
RB Series 2000 MB
4.05% 08/10/00 3,000 3,000,000
Massachusetts Housing Finance
Agency Multi-Family Development
RB (Princeton Crossing Project)
Series 1996A DN
4.00%** 04/07/00 6,800 6,800,000
Massachusetts Water Resource
Authority RB Series 2000B DN
3.80%** 04/07/00 2,900 2,900,000
------------
12,700,000
------------
See accompanying notes to financial statements.
9
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- -----------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN--3.4%
Benton Harbor Area School District
RB Series 1999 MB
4.00% 08/31/00 $ 1,000 $ 1,001,203
Detroit Sewer Disposal RB
Series 1998A DN
3.90%** 04/07/00 11,000 11,000,000
Lakeview School District RB
Series 1999 MB
4.00% 08/22/00 1,200 1,201,131
Michigan Hospital Financial Authority
RB (Oakwood Hospital Project)
Series 1985B MB
7.20% 08/01/00 5,000 5,149,579
Pinckney Community Schools RB
Series 1999 MB
4.25% 06/30/00 1,000 1,000,715
------------
19,352,628
------------
MINNESOTA--2.7%
Minneapolis GO (Convention Center
Project) Series 1999 DN
3.75%** 04/07/00 6,200 6,200,000
Minneapolis GO Series 1996 DN
3.75%** 04/07/00 9,000 9,000,000
------------
15,200,000
------------
MISSOURI--0.3%
Kansas City Hospital IDRB
Series 1985 DN
4.10%** 04/03/00 1,500 1,500,000
------------
NEVADA--0.3%
Clark County Economic Development
RB (Lutheran Secondary School
Association Project) Series 2000 DN
3.85%** 04/07/00 1,600 1,600,000
------------
NEW HAMPSHIRE--0.4%
New Hampshire Health and Education
Facilities Authority RB (Tilton School
Project) Series 1999 DN
4.00%** 04/07/00 2,500 2,500,000
------------
NEW JERSEY--0.3%
New Jersey Economic Development
Authority RB (Ocean Spray
Cranberries, Inc. Project)
Series 1987 MB
3.70% 07/01/00 1,000 1,000,000
New Jersey Housing and Mortgage
Finance Agency RB Series 1999 MB
3.75% 09/14/00 970 970,000
------------
1,970,000
------------
NEW MEXICO--0.4%
New Mexico GO Series 1999 TRAN
4.50% 06/30/00 2,000 2,003,128
------------
NEW YORK--1.7%
Long Island Power Authority Electrical
Systems RB Series 1999 DN
3.65%** 04/07/00 200 200,000
Long Island Power Authority Electrical
Systems Subordinated RB
Series 1998-2 DN
3.65%** 04/07/00 2,300 2,300,000
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
NEW YORK (CONTINUED)
New York Energy Research &
Development Authority Pollution
Control Refunding RB (Orange &
Rockland Utilities, Inc. Project)
Series 1994A DN
3.55%** 04/07/00 $ 4,100 $ 4,100,000
New York GO Series 2000B MB
4.05% 08/09/00 2,000 2,000,000
New York Local Government Assistance
Corp. RB Series 1993A DN
3.60%** 04/07/00 700 700,000
New York Local Government Assistance
Corp. RB Series 1995E DN
3.60%** 04/07/00 100 100,000
------------
9,400,000
------------
NORTH CAROLINA--4.4%
Mecklenburg County GO
Series 1996B DN
3.90%** 04/07/00 700 700,000
Mecklenburg County GO
Series 1998C DN
3.85%** 04/07/00 1,100 1,100,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Otto Industries, Inc.
Project) Series 1988 DN
4.10%** 04/07/00 1,900 1,900,000
North Carolina Educational Facilities
Finance Agency RB (Duke University
Project) Series 1987A DN
3.85%** 04/07/00 300 300,000
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1990 DN
3.75%** 04/07/00 1,700 1,700,000
North Carolina Medical Care
Commission Hospital RB (Duke
University Hospital Project)
Series 1985C DN
3.85%** 04/07/00 6,000 6,000,000
North Carolina Medical Care
Commission Health Care Facility
RB (Lutheran Services for the
Aging Project) Series 1998 DN
3.95%** 04/07/00 400 400,000
North Carolina Medical Care
Commission Hospital RB (Lincoln
Health System Project)
Series 1996A DN
4.00%** 04/07/00 5,100 5,100,000
North Carolina Medical Care
Commission Hospital RB (Lutheran
Retirement Project) Series 1999 DN
4.00%** 04/07/00 1,400 1,400,000
North Carolina Medical Care
Commission Hospital RB (Pooled
Equipment Financing Project)
Series 1985 DN
3.85%** 04/07/00 600 600,000
See accompanying notes to financial statements.
10
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Rockingham County Industrial
Facilities and Pollution Control
Finance Authority RB (Medibeg, Inc.
Project) Series 1997 DN
4.00%** 04/07/00 $ 2,900 $ 2,900,000
Washington County Industrial Facilities
Pollution Control Financing Authority
RB (Mackeys Ferry Sawmill, Inc.
Project) Series 1997 DN
4.00%** 04/07/00 2,900 2,900,000
------------
25,000,000
------------
NORTH DAKOTA--0.8%
Fargo IDRB (Owen Industries, Inc.
Project) Series 1997 DN
4.25%** 04/07/00 900 900,000
Mercer County Solid Waste Disposal
RB (National Rural Utilities Project)
Series 1995A MB
4.10% 09/01/00 2,800 2,800,000
North Dakota Housing Finance Agency
RB (Home Mortgage Project)
Series 1999C MB
3.20% 04/01/00 1,000 1,000,000
------------
4,700,000
------------
OHIO--7.1%
Allen GO Series 1999 BAN
3.35% 04/13/00 2,000 2,000,095
Clinton County Hospital RB (Ohio
Hospital Capital, Inc. Pooled
Financing Project) Series 1998 DN
4.00%** 04/07/00 5,700 5,700,000
East Palestine School District GO
Series 1999 BAN
4.10% 11/09/00 1,500 1,501,916
Franklin County Hospital Refunding RB
(U.S. Health Corp. of Columbus
Project) Series 1996A DN
3.90%** 04/07/00 745 745,000
Goshen School District GO
Series 2000 BAN
4.71% 10/11/00 1,000 1,002,611
Hamilton County Hospital Facilities RB
(Beechwood Home Project)
Series 1997 DN
4.00%** 04/07/00 1,000 1,000,000
Harrison County Economic
Development RB (Carriage Inn of
Cadiz Project) Series 1996 DN
3.98%** 04/07/00 1,575 1,575,000
Hilliard School District GO
Series 2000 BAN
4.59% 05/25/00 2,000 2,002,039
Lima School District GO
Series 2000 BAN
4.55% 07/26/00 1,566 1,568,296
Mansfield School District GO
Series 1999 MB
4.40% 07/18/00 1,000 1,001,296
Mansfield School District GO
Series 2000 BAN
4.55% 07/18/00 1,800 1,802,610
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Marion County GO Series 2000 BAN
4.50% 11/16/00 $ 1,000 $ 1,001,819
Middleburg Heights Hospital
Improvement RB (Southwest
General Health Center Project)
Series 1997 DN
3.95%** 04/07/00 4,800 4,800,000
Ohio Water Authority Solid Waste
Disposal RB (American Steel & Wire
Corp. Project) Series 1995 DN
4.15%** 04/07/00 300 300,000
Ohio Water Development Authority
PCRB (Cleveland Electric Co. Project)
Series 1997B DN
3.95%** 04/07/00 2,800 2,800,000
Toledo GO Series 1999 BAN
4.20% 05/18/00 1,438 1,438,349
Toledo-Lucas County Port Authority
Cultural Facilities RB (Toledo
Museum of Art Project)
Series 1999 DN
3.90%** 04/07/00 4,200 4,200,000
Union Township GO Series 2000 BAN
4.86% 04/10/01 1,000 1,004,870
Warren County Health Care Facilities
RB (Otterbein Homes Project)
Series 1998B DN
3.90%** 04/07/00 5,500 5,500,000
------------
40,943,901
------------
OKLAHOMA--0.3%
Muskogee Industrial Trust PCRB
(Oklahoma Gas and Electric Co.
Project) Series 1995A DN
3.95%** 04/07/00 1,500 1,500,000
------------
OREGON--0.4%
Oregon Housing and Community
Services Department Mortgage RB
(Single Family Mortgage Project)
Series 1999K MB
3.58% 08/17/00 2,000 2,000,000
------------
PENNSYLVANIA--6.9%
Luzerne County Convention Center
Authority Hotel Room Rent Tax RB
Series 1998A DN
3.90%** 04/07/00 5,000 5,000,000
Pennsylvania Higher Educational
Facilities Authority College and
University RB (Pennsylvania
College of Optometry Project)
Series 1996 DN
3.90%** 04/07/00 2,845 2,845,000
Pennsylvania Higher Educational
Facilities Authority RB (The
University of Pennsylvania Health
Services Project) Series 1994B DN
3.90%** 04/07/00 5,100 5,100,000
Pennsylvania Higher Educational
Facilities Authority RB (The
University of Pennsylvania Health
Services Project) Series 1996C DN
3.90%** 04/07/00 19,895 19,895,000
See accompanying notes to financial statements.
11
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Pennsylvania Higher Educational
Facilities Authority RB (The University
of Pennsylvania Health Services
Project) Series 1998B DN
3.90%** 04/07/00 $ 4,700 $ 4,700,000
York County General Authority Pooled
Financing RB Series 1996 DN
3.95%** 04/07/00 1,500 1,500,000
------------
39,040,000
------------
SOUTH CAROLINA--4.5%
Chesterfield County IDRB (Culp, Inc.
Project) Series 1996 DN
4.05%** 04/07/00 2,000 2,000,000
Piedmont Municipal Power Agency RB
Series 1996D DN
3.85%** 04/07/00 13,100 13,100,000
Piedmont Municipal Power Agency RB
Series 1997B DN
3.90%** 04/07/00 8,250 8,250,000
South Carolina Economic Development
Authority RB (Catholic Diocese
Project) Series 1998 DN
4.05%** 04/07/00 2,300 2,300,000
------------
25,650,000
------------
TENNESSEE--5.4%
Cleveland IDRB (YMCA of Metropolitan
Chattanooga Project)
Series 1999 DN
3.95%** 04/07/00 6,500 6,500,000
Montgomery County Public Building
Authority Pooled Financing RB
(Montgomery County Loan Project)
Series 1995 DN
4.00%** 04/07/00 7,995 7,995,000
Montgomery County Public Building
Authority Pooled Financing RB
(Tennessee County Loan Pool
Project) Series 1995 DN
4.00%** 04/07/00 13,664 13,664,000
Nashville and Davidson County IDRB
Series 1989 DN
3.95%** 04/07/00 2,805 2,805,000
------------
30,964,000
------------
TEXAS--6.4%
Austin Apartment Systems RB
Series 2000J DN
4.10%** 04/07/00 2,000 2,000,000
Comal County IDRB (Simpson Co.
Project) Series 1996 DN
4.15%** 04/07/00 2,400 2,400,000
Harris County Toll Road Unlimited Tax
and Subordinate Lien RB
Series 1994F DN
3.90%** 04/07/00 2,000 2,000,000
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
TEXAS (CONTINUED)
Katy School District GO
Series 1998B MB
4.20% 02/15/01 $ 4,000 $ 4,001,290
Texas GO Series 1999A TRAN
4.50% 08/31/00 26,000 26,064,771
------------
36,466,061
------------
UTAH--1.7%
Salt Lake City RB (Pooled Hospital
Financing Progam)
Series 1990B DN
3.90%** 04/07/00 4,500 4,500,000
Salt Lake City RB (Pooled Hospital
Financing Program)
Series 1998A-55 DN
3.90%** 04/07/00 4,900 4,900,000
------------
9,400,000
------------
VIRGINIA--2.5%
Fairfax County IDRB (Inova Health
Systems Project) Series 2000 DN
3.75%** 04/07/00 3,300 3,300,000
Hanover County IDA Residential Care
Facility RB (Covenent Woods Project)
Series 1999 DN
4.00%** 04/07/00 2,200 2,200,000
Metropolitan Washington D.C. Airport
Authority GO Series 2000 TECP
3.90% 07/28/00 9,000 9,000,000
------------
14,500,000
------------
WASHINGTON--0.4%
Port Seattle RB Series 1995A MB
6.00% 02/01/01 1,000 1,014,581
Yakima County Public Corp. RB
(Jeld-Wen Income Project)
Series 1988 DN
3.96%** 04/07/00 1,340 1,340,000
------------
2,354,581
------------
WISCONSIN--2.3%
Amery IDRB (Plastech Corp. Project)
Series 1997 DN
4.35%** 04/07/00 2,000 2,000,000
Wisconsin Housing and Economic
Development Authority Home
Ownership RB Series 1999 MB
3.55% 08/15/00 1,500 1,500,000
Wisconsin Housing and Economic
Development Authority Single Family
Housing RB Series 1999 MB
4.06% 04/07/00 9,345 9,345,000
------------
12,845,000
------------
See accompanying notes to financial statements.
12
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
AS OF MARCH 31, 2000 (UNAUDITED) Value
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $568,363,019*) 99.9% $568,363,019
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.1% 616,343
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 328,885,838
Institutional shares, 133,672,878
Service shares, 101,201,132
Hilliard Lyons shares and
5,247,070 Investor A shares
outstanding) 100.0% $568,979,362
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
HILLIARD LYONS AND
INVESTOR A SHARE
($568,979,362 (DIVIDE) 569,006,918) $1.00
=====
-----------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 2000, 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.
13
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS--99.5%
NEW JERSEY--98.1%
Atlantic City Board of Education GO
Series 1999 MB
4.00% 05/01/00 $ 375 $ 375,118
Bergen County GO Series 1997 MB
4.50% 07/15/00 400 400,791
Burlington City GO Series 1999 BAN
4.25% 10/17/00 2,390 2,395,251
Camden County Improvement Authority
RB (Jewish Community Center
Project) Series 1995 DN
3.85%** 04/07/00 675 675,000
Carteret Board of Education GO
Series 2000 MB
4.20% 01/15/01 135 135,000
Cranford Township GO
Series 2000 BAN
4.35% 03/16/01 2,000 2,002,742
East Amwell Township GO
Series 1999 BAN
4.30% 10/28/00 2,521 2,527,456
East Orange GO Series 1992 BAN
5.65% 08/01/00 100 100,439
East Rutherford GO Series 1998 BAN
4.20% 01/15/01 115 115,000
Edison Township Board of Education
GO Series 2000 BAN
5.50% 01/01/01 260 262,646
Essex County Public Improvement
Authority RB (County Asset Sale
Project) Series 1995 DN
3.70%** 04/07/00 765 765,000
Gloucester County Industrial Pollution
Control Financing Authority
Refunding RB (Mobil Oil Refining Co.
Project) Series 1993 DN
3.30%** 04/07/00 2,810 2,810,000
Hammonton School District GO
Series 2000 BAN
4.40% 02/02/01 2,000 2,002,893
Jefferson Township GO
Series 2000 BAN
5.30% 02/01/01 125 126,214
Jersey City Development RB (Dixon
Mill Project) Series 1992 MB
6.10% 05/01/00 5,000 5,009,448
Jersey City GO Series 2000 BAN
4.75% 01/12/01 5,000 5,022,511
Jersey City GO Series 2000A BAN
5.60% 03/01/01 750 759,309
Jersey City Municipal Utilities Authority
Project Notes Series 1999 MB
4.38% 07/28/00 2,000 2,002,942
Kinnelon GO Series 1999 BAN
4.30% 12/08/00 802 803,583
Mantua Township School District GO
Series 2000 BAN
5.70% 03/01/01 500 506,884
Mercer County Improvement Authority
RB (Atlantic Financial and Johnson
Project) Series 1998 DN
3.67%** 04/07/00 3,000 3,000,000
Middlesex County GO Series 2000 BAN
5.25% 01/15/01 880 887,743
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
Middlesex County Utilities Authority RB
(Solid Waste System Review Project)
Series 1991 MB
6.00% 12/01/00 $ 150 $ 151,739
New Jersey Economic Development
Authority Multi-Mode IDRB (V and
S Amboy Galvanizing LLC Project)
Series 1999 DN
4.15%** 04/07/00 3,600 3,600,000
New Jersey Economic Development
Authority PCRB (Public Service
Electric and Gas Co. Project)
Series 1995A DN
3.35%** 04/07/00 1,900 1,900,000
New Jersey Economic Development
Authority PCRB (Public Service
Electric and Gas Co. Project)
Series 1996 DN
3.60%** 04/07/00 400 400,000
New Jersey Economic Development
Authority RB (Airis Newark LLC
Project) Series 1998 DN
3.90%** 04/07/00 3,300 3,300,000
New Jersey Economic Development
Authority RB (Bethany Baptist
Church Project) Series 1998 DN
3.75%** 04/07/00 795 795,000
New Jersey Economic Development
Authority RB (Chambers Cogen
Project) Series 1991 DN
3.60%** 04/07/00 3,700 3,700,000
New Jersey Economic Development
Authority RB (Facile Holdings, Inc.
Project) Series 1998 DN
3.80%** 04/07/00 4,732 4,732,000
New Jersey Economic Development
Authority RB (Far Sighted Investment
LLC Project) Series 1998A DN
3.95%** 04/07/00 1,180 1,180,000
New Jersey Economic Development
Authority RB (Hamilton Industrial
Development Project)
Series 1998 DN
3.85%** 04/07/00 2,000 2,000,000
New Jersey Economic Development
Authority RB (Jersey Juice, Inc.
Project) Series 1997 DN
3.85%** 04/07/00 3,200 3,200,000
New Jersey Economic Development
Authority RB (J. James Realty Co.
Project) Series 1998 DN
3.95%** 04/07/00 550 550,000
New Jersey Economic Development
Authority RB (Kenwood USA Corp.
Project) Series 1985 DN
3.80%** 04/07/00 2,800 2,800,000
New Jersey Economic Development
Authority RB (Keystone Project)
Series 1992 MB
3.75% 06/16/00 4,000 4,000,000
New Jersey Economic Development
Authority RB (Local Housing Project)
Series 1992D-1 DN
3.90%** 04/07/00 990 990,000
See accompanying notes to financial statements.
14
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
New Jersey Economic Development
Authority RB (Nandan Co. Project)
Series 1995 DN
4.00%** 04/07/00 $ 1,865 $ 1,865,000
New Jersey Economic Development
Authority RB (Newark Fibers, Inc.
Project) Series 1998 DN
4.00%** 04/07/00 3,000 3,000,000
New Jersey Economic Development
Authority RB (Ninette Group LP
Project) Series 1998 DN
3.95%** 04/07/00 900 900,000
New Jersey Economic Development
Authority RB (Ocean Spray
Cranberries, Inc. Project)
Series 1987 MB
3.70% 07/01/00 1,500 1,500,000
New Jersey Economic Development
Authority RB (Pennington
Montessori School Project)
Series 1998 DN
3.95%** 04/07/00 1,370 1,370,000
New Jersey Economic Development
Authority RB (St. James Prep. and
Social Service Project)
Series 1998 DN
3.75%** 04/07/00 1,000 1,000,000
New Jersey Economic Development
Authority RB (Thermal Energy LP
Project) Series 1995 DN
3.60%** 04/07/00 6,000 6,000,000
New Jersey Economic Development
Authority RB (Venice Maid Foods
Project) Series 1997 DN
4.00%** 04/07/00 1,000 1,000,000
New Jersey Economic Development
Authority RB (Wechsler Coffee Corp.
Project) Series 1998 DN
3.85%** 04/07/00 1,370 1,370,000
New Jersey Economic Development
Authority RB (Wood Hollow
Associates Project) Series 1997 DN
3.90%** 04/07/00 2,325 2,325,000
New Jersey Educational Authority RB
(Beldar Business Form Manufacturing
Project) Series 1999 DN
3.95%** 04/07/00 1,185 1,185,000
New Jersey Health Care Facilities
Financing Authority RB
Series 1996 MB
4.75% 07/01/00 500 500,251
New Jersey Health Care Facilities RB
(Hospital Capital Asset Financing
Project) Series 1985C DN
3.70%** 04/07/00 5,000 5,000,000
New Jersey Health Care Facilities RB
Series 1985D DN
3.70%** 04/07/00 6,000 6,000,000
New Jersey Housing and Mortgage
Finance Agency RB Series 1996 DN
3.71%** 04/07/00 9,005 9,005,000
New Jersey Housing and Mortgage
Finance Agency RB Series 1999 MB
3.75% 09/14/00 970 970,000
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
New Jersey Housing and Mortgage
Finance Agency Tax-Exempt Eagle
Trust Certificates Series 1997A DN
3.96%** 04/07/00 $ 3,750 $ 3,750,000
New Jersey State Educational Facilities
Authority RB (College of New Jersey
Project) Series 1999A DN
3.75%** 04/07/00 2,000 2,000,000
New Jersey State GO
Series 1992D BAN
5.25% 02/15/01 350 353,356
New Jersey State GO
Series 1999 BAN
3.40% 04/03/00 1,300 1,299,936
New Jersey State GO
Series 2000 TECP
3.75% 04/11/00 5,000 5,000,000
3.80% 05/04/00 4,000 4,000,000
3.90% 05/10/00 3,000 3,000,000
3.80% 06/07/00 2,000 2,000,000
3.70% 06/08/00 2,000 2,000,000
4.00% 06/12/00 7,000 7,000,000
New Jersey Transit Trust Fund RB
Series 1994A MB
5.20% 12/15/00 200 201,639
New Jersey Turnpike Authority RB
Series 1991D DN
3.40%** 04/07/00 1,500 1,500,000
Newark GO Series 1997 BAN
5.30% 09/01/00 1,320 1,327,805
Paterson Public School District RB
Series 1999 BAN
3.80% 11/01/00 480 480,000
Peapack Gladstone GO
Series 1999 BAN
3.50% 05/12/00 2,215 2,215,792
4.30% 12/08/00 2,000 2,003,947
Riverdale Boro GO Series 1999 BAN
3.50% 05/12/00 2,300 2,300,749
Salem County Pollution Control
Financing Authority PCRB (Atlantic
City Electric Co. Project)
Series 1997B DN
3.75%** 04/07/00 1,000 1,000,000
Salem County Pollution Control
Financing Authority PCRB (E.I.
DuPont de Nemours & Project)
Series 1982A DN
4.10%** 04/07/00 9,600 9,600,000
Salem County Pollution Control
Financing Authority PCRB (Public
Service Electric and Gas Co.
Project) Series 1997 DN
3.70%** 04/07/00 1,400 1,400,000
Springfield Township GO
Series 1999 MB
4.35% 07/14/00 3,500 3,502,940
Union Township GO Series 1999 BAN
3.75% 04/08/00 1,100 1,100,102
Vernon Township School District GO
Series 1999 BAN
5.25% 12/01/00 600 605,636
West Caldwell Township GO
Series 1999 BAN
3.94% 09/12/00 2,204 2,206,015
See accompanying notes to financial statements.
15
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY (CONTINUED)
West Orange Board of Education
Certificates of Participation
Series 1999 MB
3.85% 10/01/00 $ 385 $ 385,000
Wildwood Crest GO Series 1999 BAN
3.45% 05/25/00 2,000 2,000,513
------------
171,208,390
------------
PUERTO RICO--1.4%
Puerto Rico GO Series 2000 TECP
3.60% 07/10/00 2,000 2,000,000
Puerto Rico Industrial, Medical and
Environmental Pollution Control
Facilities Financing Authority RB
(Ana G. Mendez Foundation Project)
Series 1985 DN
3.55%** 04/07/00 450 450,000
------------
2,450,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $173,658,390*) 99.5% 173,658,390
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.5% 905,179
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 84,944,765
Institutional shares, 59,056,583
Service shares and 30,577,074
Investor A shares outstanding) 100.0% $174,563,569
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($174,563,569 (DIVIDE) 174,578,422) $1.00
=====
-----------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 2000, 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.
16
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS--100.6%
NORTH CAROLINA--100.4%
Buncombe County GO
Series 1993 MB
5.00% 03/01/01 $ 1,000 $ 1,006,750
Buncombe County GO
Series 1997 DN
4.05%** 04/07/00 5,605 5,605,000
Buncombe County Industrial Facilities
and Pollution Control Financing
Authority RB (Lustar Dyeing, Inc.
Project) Series 1998 DN
4.10%** 04/07/00 255 255,000
Cabarrus County Development Corp.
Installment Payment RB (North
Carolina Installment Financing
Contract Project) Series 1999 MB
4.60% 06/01/00 950 951,922
Charlotte Airport Refunding RB
Series 1993A DN
3.80%** 04/07/00 4,000 4,000,000
Charlotte Certificates of Participation
(Equipment Acquisition Project)
Series 2000 MB
5.00% 03/01/01 1,400 1,410,140
Charlotte-Mecklenburg Hospital
Authority RB (Health Care System
Project) Series 1996B DN
3.85%** 04/07/00 2,480 2,480,000
Charlotte Public Improvement GO
Series 1990A MB
6.90% 10/01/00 1,100 1,137,366
Cumberland County Finance Corp.
Installment Payment Detention
Center and Mental Health RB
Series 1999 MB
3.65% 06/01/00 820 820,000
Cumberland County GO
Series 2000 MB
5.50% 03/01/01 1,100 1,113,754
Durham Public Improvement GO
Series 2000A MB
5.25% 03/01/01 750 757,643
Fayetteville GO Series 1990 MB
6.60% 06/01/00 1,000 1,024,676
Forsyth County GO
Series 1991 MB
6.10% 03/01/01 250 256,519
Gaston County Industrial Facilities and
Pollution Control Financing Authority
RB (Gold Medal Homes Project)
Series 1996 DN
3.95%** 04/07/00 1,890 1,890,000
Gates County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Coxe-Lewis Corp. Project)
Series 1999 DN
4.05%** 04/07/00 1,980 1,980,000
Green County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Federal Paper Board Co., Inc.
Project) Series 1989 DN
4.00%** 04/07/00 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
4.00%** 04/07/00 $ 900 $ 900,000
Greensboro GO Series 1992 MB
4.90% 02/01/01 200 201,260
Guilford County Industrial Facilities and
Pollution Control Financing Authority
IDRB (U.S. Label Corp. Project)
Series 1995 DN
4.00%** 04/07/00 1,800 1,800,000
Iredell County Industrial Facilities and
Pollution Control Financing Authority
RB (B and B Fabricators Project)
Series 1999 DN
4.10%** 04/07/00 2,500 2,500,000
Lee County Industrial Facilities and
Pollution Control Financing Authority
RB (Var-Arden Corp. Project)
Series 1999 DN
4.05%** 04/07/00 1,700 1,700,000
Mecklenburg County GO
Series 1991 MB
6.10% 04/01/00 1,840 1,840,000
Mecklenburg County GO
Series 1992 MB
5.60% 03/01/01 1,255 1,271,945
Mecklenburg County GO
Series 1996B DN
3.90%** 04/07/00 1,100 1,100,000
Mecklenburg County GO
Series 1998C DN
3.85%** 04/07/00 2,985 2,985,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Griffith Micro Science
Project) Series 1995 DN
3.95%** 04/07/00 1,500 1,500,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Otto Industries, Inc.
Project) Series 1988 DN
4.10%** 04/07/00 890 890,000
Mecklenburg County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Piedmont Plastics
Project) Series 1997 DN
4.10%** 04/07/00 4,320 4,320,000
Mecklenburg County Public
Improvement GO Series 1994 MB
5.40% 04/01/00 1,000 1,000,000
Mecklenburg County Public
Improvement GO Series 2000 MB
5.00% 02/01/01 2,000 2,017,321
Mecklenburg County Public
Improvement GO Series 2000C DN
3.85%** 04/07/00 2,000 2,000,000
New Hanover County Industrial
Facilities IDRB (Interroll Corp.
Project) Series 1989 DN
4.10%** 04/07/00 795 795,000
See accompanying notes to financial statements.
17
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
North Carolina Agricultural Finance
Authority Agricultural Development
RB (Harvey Fertilizer and Gas Co.
Project) Series 1995 DN
4.00%** 04/07/00 $ 1,540 $ 1,540,000
North Carolina Eastern Municipal
Power Agency Power System RB
Series 1995A MB
4.65% 01/01/01 1,000 1,003,468
North Carolina Eastern Municipal
Power Agency Power System RB
Series 1999A MB
3.80% 10/05/00 4,000 4,000,000
North Carolina Educational Facilities
Finance Agency RB (Duke University
Project) Series 1987A DN
3.85%** 04/07/00 4,700 4,700,000
North Carolina Educational Facilities
Finance Agency RB (Duke University
Project) Series 1991B DN
3.85%** 04/07/00 1,795 1,795,000
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1990 DN
3.75%** 04/07/00 2,425 2,425,000
North Carolina Medical Care
Commission Health Care Facility RB
(Lutheran Services for the Aging
Project) Series 1998 DN
3.95%** 04/07/00 500 500,000
North Carolina Medical Care
Commission Hospital RB (Angel
Medical Center, Inc. Project)
Series 1997 DN
3.85%** 04/07/00 900 900,000
North Carolina Medical Care
Commission Hospital RB (Duke
University Hospital Project)
Series 1985B DN
3.85%** 04/07/00 4,000 4,000,000
North Carolina Medical Care
Commission Hospital RB (Duke
University Hospital Project)
Series 1985C DN
3.85%** 04/07/00 3,200 3,200,000
North Carolina Medical Care
Commission Hospital RB (Lutheran
Retirement Project) Series 1999 DN
4.00%** 04/07/00 1,500 1,500,000
North Carolina Medical Care
Commission Hospital RB (Moses H.
Cone Memorial Hospital Project)
Series 1993 DN
3.95%** 04/07/00 3,000 3,000,000
North Carolina Medical Care
Commission Hospital RB (Pooled
Equipment Financing Project)
Series 1985 DN
3.85%** 04/07/00 1,650 1,650,000
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
North Carolina Medical Care
Commission Hospital RB (Pooled
Equipment Financing Project)
Series 1991A DN
4.00%** 04/03/00 $ 1,400 $ 1,400,000
North Carolina Medical Care
Commission Hospital RB
(Presbyterian Hospital Project)
Series 1990 MB
7.38% 10/01/00 2,000 2,074,037
North Carolina State GO
Series 1997A MB
5.10% 03/01/01 2,000 2,018,616
Person County Industrial Facilities and
Pollution Control Financing Authority
Solid Waste Disposal RB (Carolina
Power and Light Co. Project)
Series 1986 DN
4.15%** 04/03/00 1,300 1,300,000
Pitt County Certificates of Participation
Series 1991 MB
6.90% 04/01/00 1,150 1,173,000
Randolph County Industrial Facilities
and Pollution Control Finance
Authority RB (Jowat Corp. Project)
Series 1999 DN
4.00%** 04/07/00 1,000 1,000,000
Rockingham County Industrial Facilities
and Pollution Control Finance
Authority RB (Whiteridge, Inc. Project)
Series 1998 DN
4.10%** 04/07/00 1,300 1,300,000
Rutherford County Industrial Facilities
and Pollution Control Finance
Authority RB (All American Homes
Project) Series 1996 DN
4.10%** 04/07/00 1,300 1,300,000
Rutherford County Industrial Facilities
and Pollution Control Finance
Authority RB (Thieman Metal
Technologies LLC Project)
Series 1998 DN
4.10%** 04/07/00 2,850 2,850,000
Sampson County Industrial Facilities
and Pollution Control Financing
Authority IDRB (Dubose Strapping,
Inc. Project) Series 1997 DN
4.10%** 04/07/00 1,730 1,730,000
Union County Industrial Facilities and
Pollution Control Financing Authority
IDRB (Rock-Tenn Converting Co.
Project) Series 1997 DN
4.05%** 04/07/00 1,750 1,750,000
University of North Carolina RB (Chapel
Parking System Board of Governors
of the UNC Project) Series 1997C DN
3.85%** 04/07/00 1,800 1,800,000
University of North Carolina RB (Kenan
Memorial Stadium Project)
Series 1996 DN
4.00%** 04/07/00 3,150 3,150,000
See accompanying notes to financial statements.
18
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
NORTH CAROLINA (CONTINUED)
Wake County Industrial Facilities and
Pollution Control Financing Authority
RB (Carolina Power and Light Co.
Project) Series 1985A DN
3.75%** 04/07/00 $ 2,500 $ 2,500,000
Wake County Industrial Facilities and
Pollution Control Financing Authority
Refunding RB (Carolina Power and
Light Co. Project) Series 1990A DN
3.95%** 04/03/00 3,050 3,050,000
Warren County Industrial Facilities and
Pollution Control Financing Authority
RB (Glen Raven Mills, Inc. Project)
Series 1997 DN
4.00%** 04/07/00 1,500 1,500,000
Wilkes County Industrial Facilities and
Pollution Control Financing Authority
RB (Schas Circular Industries, Inc.
Project) Series 1997A DN
3.90%** 04/07/00 5,590 5,590,000
------------
118,308,417
------------
PUERTO RICO--0.2%
Puerto Rico Government Development
Bank Refunding RB Series 1985 DN
3.15%** 04/07/00 232 232,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $118,540,417*) 100.6% 118,540,417
------------
LIABILITIES IN EXCESS
OF OTHER ASSETS (0.6%) (653,901)
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 116,328,595
Institutional shares, 1,201,114
Service shares, 352,256 Investor
A shares and 5,454 Investor B
shares outstanding) 100.0% $117,886,516
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE,
INVESTOR A AND INVESTOR B
SHARE
($117,886,516 (DIVIDE) 117,887,419) $1.00
=====
-----------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 2000, 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.
19
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS--100.5%
OHIO--100.0%
Avon GO Series 1999 BAN
3.75% 07/23/00 $1,190 $ 1,190,705
Brecksville GO Series 1999 BAN
4.10% 08/31/00 550 550,555
Butler County GO Series 2000 BAN
4.44% 07/12/00 400 400,429
Champaign County IDRB (Allied
Signal, Inc. Project) Series 1998 DN
4.15%** 04/07/00 1,000 1,000,000
Cincinnati School District GO
Series 1999 BAN
3.90% 05/19/00 2,000 2,001,268
Clermont County Health Facilities
Authority RB (Mercy Health System
Project) Series 1996A DN
3.90%** 04/07/00 780 780,000
Cleveland-Cuyahoga County Port
Authority GO Series 1999 TAN
3.70% 11/15/00 1,120 1,116,567
Cuyahoga County Hospital RB
(Cleveland Clinic Foundation Project)
Series 1997A DN
3.90%** 04/07/00 800 800,000
Cuyahoga County Hospital RB
(Cleveland Clinic Foundation Project)
Series 1998A DN
3.90%** 04/07/00 700 700,000
Cuyahoga County IDRB (Actron
Manufacturing Project)
Series 1998 DN
4.10%** 04/07/00 1,230 1,230,000
Cuyahoga County IDRB (Cleveland
Gear Company, Inc. Project)
Series 1998 DN
4.15%** 04/07/00 1,900 1,900,000
Cuyahoga County IDRB (Northstar
Project) Series 1998 DN
4.15%** 04/07/00 1,400 1,400,000
Cuyahoga County IDRB (Pleasant
Lake Associates Project)
Series 1995 DN
4.00%** 04/07/00 850 850,000
Delaware County IDRB (Air Waves,
Inc. Project) Series 1995 DN
4.15%** 04/07/00 865 865,000
Dover Municipal Sewer System
Improvement GO Series 2000 BAN
4.53% 04/12/01 1,100 1,101,892
East Palestine School District GO
Series 1999 BAN
4.10% 11/09/00 1,000 1,001,277
Erie County IDRB (Brighton Manor Co.
Project) Series 1986 DN
4.10%** 04/07/00 400 400,000
Franklin County Economic Development
RB (Ferguson Steel Co., Inc. Project)
Series 1999 DN
4.10%** 04/07/00 1,400 1,400,000
Franklin County IDRB (Alco Standard
Corp. Project) Series 1994 DN
4.05%** 04/07/00 200 200,000
Fulton County IDRB (Haas Door
Company & Nofziger Doors
International, Inc. Project)
Series 1999 DN
4.10%** 04/07/00 2,000 2,000,000
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Goshen School District GO
Series 2000 BAN
4.71% 10/11/00 $1,000 $ 1,002,611
Greene County Economic Development
RB (Ashford Center Project)
Series 1995 DN
4.00%** 04/07/00 1,750 1,750,000
Greene County IDRB (AFC Stamping &
Production, Inc., Barsplice Products
Project) Series 1995 DN
4.15%** 04/07/00 900 900,000
Greene County IDRB (Antioch
Publishing Co. Project)
Series 1996 DN
4.10%** 04/07/00 1,400 1,400,000
Hamilton County Hospital Facilities RB
(Beechwood Home Project)
Series 1997 DN
4.00%** 04/07/00 3,000 3,000,000
Harrison County GO Series 1999 BAN
4.63% 06/15/00 1,993 1,995,721
Hilliard GO Series 1999 BAN
3.85% 09/07/00 2,100 2,102,196
Hilliard School District GO
Series 2000 BAN
4.59% 05/25/00 1,000 1,001,019
Indian Hill Village Economic
Development RB (Cincinnati County
Day School Project) Series 1999 DN
3.90%** 04/07/00 2,000 2,000,000
Lima School District GO
Series 2000 BAN
4.55% 07/26/00 2,000 2,002,932
Mahoning County IDRB (Serra Land
Project) Series 1997 DN
4.15%** 04/07/00 1,950 1,950,000
Mahoning County RB (Youngstown
Iron & Metal, Inc. Project)
Series 1997 DN
4.10%** 04/07/00 1,740 1,740,000
Mansfield School District GO
Series 1999 MB
4.40% 07/18/00 4,000 4,005,184
Mansfield School District GO
Series 2000 BAN
4.55% 07/18/00 2,000 2,002,900
Montgomery County Healthcare
Facilities RB Series 1998 DN
4.00%** 04/07/00 165 165,000
North Royalton GO Series 1999 BAN
3.95% 09/21/00 1,000 1,000,683
Ohio Air Quality Development Authority
PCRB (JMG Funding Ltd. Partnership
Project) Series 1994B DN
3.95%** 04/07/00 1,660 1,660,000
Ohio Air Quality Development Authority
PCRB (JMG Funding Ltd. Partnership
Project) Series 1995B DN
3.95%** 04/07/00 3,000 3,000,000
Ohio Air Quality Development Authority
PCRB (Pennsylvania Power Co.
Project) Series 1997 DN
3.95%** 04/07/00 70 70,000
See accompanying notes to financial statements.
20
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
OHIO MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Ohio Air Quality Development Authority
PCRB (PPG Industries, Inc. Project)
Series 1988A DN
4.10%** 04/07/00 $2,700 $ 2,700,000
Ohio Higher Education Facilities RB
Series 2000 TECP
3.80% 05/31/00 2,000 2,000,000
Ohio Housing Finance Agency
Multi-Family Housing RB (Lincoln
Park Association Project)
Series 1985 MB
3.90% 05/01/00 725 725,000
Ohio Housing Finance Agency
Multi-Family Housing RB (The Club
at Spring Valley Apartments Project)
Series 1996A DN
4.00%** 04/07/00 1,790 1,790,000
Ohio Housing Finance Agency RB
Series 1998 MB
4.10% 09/01/00 1,100 1,100,732
Ohio IDRB (Anomatic Corp. Project)
Series 1994 DN
4.10%** 04/07/00 1,165 1,165,000
Ohio IDRB (Ashley Ward, Inc. Project)
Series 1997 DN
4.03%** 04/07/00 1,670 1,670,000
Ohio Public Mental Health Facilities RB
Series 1991 II-A MB
6.30% 12/01/00 300 309,917
Ohio State Building Authority RB
Series 1999A MB
4.00% 10/01/00 350 350,000
Ohio State Higher Educational Facility
Commission RB Pooled Financing
Series 1996 DN
4.00%** 04/07/00 1,655 1,655,000
Ohio State Public Facilities Commission
Higher Education RB
Series 1997 II-B MB
4.50% 11/01/00 200 200,276
Ohio Water Authority Solid Waste
Disposal RB (American Steel & Wire
Corp. Project) Series 1995 DN
4.15%** 04/07/00 7,800 7,800,000
Ohio Water Development Authority
PCRB (Cleveland Electric Co. Project)
Series 1997B DN
3.95%** 04/07/00 200 200,000
Ohio Water Development Authority
Refunding RB (Timken Co. Project)
Series 1992 DN
3.90%** 04/07/00 1,800 1,800,000
Orange GO Series 1999 BAN
4.25% 12/28/00 1,400 1,401,985
Orange GO Series 2000 BAN
4.65% 12/28/00 500 501,252
Portage County IDRB (Action Super
Abrasive Project) Series 1996 DN
4.10%** 04/07/00 1,070 1,070,000
Portage County IDRB (Lovejoy
Industries Project) Series 1994 DN
4.10%** 04/07/00 1,240 1,240,000
Rocky River GO Series 2000 BAN
4.25% 01/26/01 2,950 2,951,848
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
OHIO (CONTINUED)
Rocky River GO Series 2000B BAN
4.29% 09/28/00 $ 375 $ 375,232
Sandusky County IDRB (Brighton
Manor Co. Project) Series 1986 DN
4.10%** 04/07/00 1,500 1,500,000
Scioto County GO Series 1999 BAN
4.06% 07/13/00 1,214 1,214,852
Shaker Heights GO Series 1999 BAN
3.70% 06/01/00 2,845 2,845,000
Solon GO Series 1999 BAN
3.60% 06/15/00 500 500,347
Stark County GO Series 1999 BAN
3.85% 08/17/00 1,650 1,651,798
Strongsville GO Series 1999 BAN
3.98% 10/19/00 1,100 1,101,045
Strongsville IDRB (Web Plastics
Co. Project) Series 1997 DN
4.10%** 04/07/00 995 995,000
Summit County IDRB (Austin Printing
Co., Inc. Project) Series 1994 DN
4.10%** 04/07/00 410 410,000
Summit County IDRB (Forest
Manufacturing Project)
Series 1994 DN
4.05%** 04/07/00 440 440,000
Summit County IDRB (JRB Co., Inc.
Project) Series 1997 DN
4.10%** 04/07/00 3,100 3,100,000
Sylvania GO Series 1990 BAN
7.45% 12/01/00 500 520,045
Toledo-Lucas County Port Authority
Development RB (Frostbite Brands,
Inc. Project) Series 1993 DN
4.35%** 04/07/00 880 880,000
Union Township GO Series 1999 BAN
3.77% 05/26/00 1,000 1,000,729
Union Township GO Series 2000 BAN
4.75% 03/13/01 2,000 2,008,175
Westlake Construction Notes GO
Series 1999 MB
3.40% 05/04/00 750 750,131
Westlake Economic Development RB
(Oaks Development Co. Project)
Series 1994 DN
4.00%** 04/07/00 1,785 1,785,000
Youngstown School District RB
Series 1997 MB
5.00% 06/15/00 1,000 1,001,800
Youngstown IDRB (Portage
Transformer Co. Project)
Series 1996 DN
4.10%** 04/07/00 3,625 3,625,000
------------
109,971,103
------------
PUERTO RICO--0.5%
Puerto Rico Industrial, Medical
and Environmental Pollution Control
Facilities Financing Authority RB
(Ana G. Mendez Foundation Project)
Series 1985 DN
3.55%** 04/07/00 500 500,000
------------
See accompanying notes to financial statements.
21
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
OHIO MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
AS OF MARCH 31, 2000 (UNAUDITED) Value
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $110,471,103*) 100.5% $110,471,103
LIABILITIES IN EXCESS
OF OTHER ASSETS (0.5%) (496,022)
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 57,896,455
Institutional shares, 10,521,399
Service shares and 41,591,213
Investor A shares outstanding) 100.0% $109,975,081
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($109,975,081 (DIVIDE) 110,009,067) $1.00
=====
-----------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 2000, 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.
22
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS--99.8%
PENNSYLVANIA--97.6%
Allegheny County Higher Education
Building Authority RB (University of
Pittsburgh Project) Series 1985C DN
3.80%** 04/07/00 $ 1,590 $ 1,590,000
Allegheny County IDRB (USX Corp.
Project) Series 1998 DN
3.90%** 04/07/00 2,000 2,000,000
Beaver County IDA Refunding PCRB
(Atlantic Richfield Co. Project)
Series 1995 DN
3.85%** 04/07/00 2,800 2,800,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co., Beaver Valley
Project) Series 1990A DN
3.90%** 04/07/00 13,700 13,700,000
Beaver County IDA Refunding PCRB
(Duquesne Light Co., Beaver Valley
Project) Series 1990A MB
3.85% 06/02/00 5,750 5,750,000
Beaver County IDA Refunding PCRB
(Ohio Edison Co. Project)
Series 1992A MB
3.10% 04/01/00 5,400 5,400,000
Bedford County IDRB (Sepa, Inc.
Facility Project) Series 1985 DN
3.90%** 04/07/00 6,100 6,100,000
Berks County IDA Manufacturing
Facilities RB (Grafika Commercial
Printing, Inc. Project)
Series 1995 DN
4.05%** 04/07/00 2,330 2,330,000
Berks County IDRB (Beacon Container
Corp. Project) Series 1997A DN
4.15%** 04/07/00 2,165 2,165,000
Berks County IDRB (Berks Products
Project) Series 1996 DN
4.15%** 04/07/00 2,080 2,080,000
Berks County IDRB (Citizen's Utilities
Co. Project) Series 1996 MB
4.10% 06/07/00 8,400 8,400,000
4.10% 06/14/00 4,100 4,100,000
Berks County IDRB (Hub Fabricating
Project) Series 1996 DN
4.05%** 04/07/00 4,465 4,465,000
Bucks County IDA Environmental
Improvement Refunding RB (USX
Corp. Project) Series 1995 MB
3.80% 05/02/00 2,740 2,740,000
Bucks County IDRB (Federal Land
Re-use Guarantee Project)
Series 2000A BAN
4.10% 07/15/00 1,600 1,600,000
Bucks County IDRB (LTL Color
Compounders Project)
Series 1999B DN
4.05%** 04/07/00 4,505 4,505,000
Bucks County IDRB (SHV Real Estate,
Inc. Project) Series 1985 DN
3.85%** 04/07/00 1,900 1,900,000
Cambria County IDA Resource
Recovery RB (Cambria Cogen Co.
Project) Series 1998 DN
3.95%** 04/07/00 31,695 31,695,000
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Carbon County IDA Resource
Recovery RB (Panther Creek
Partners Project) Series 1990A MB
3.80% 04/14/00 $26,335 $ 26,335,000
Coatesville School District GO
Series 1991 MB
7.25% 11/01/00 1,000 1,018,905
6.70% 03/01/01 5,200 5,316,696
Council Rock School District GO
Series 1991 MB
6.40% 03/01/01 1,000 1,019,036
Crawford County IDRB
Series 2000 DN
4.10%** 04/07/00 500 500,000
Cumberland County IDRB (Lane
Enterprises, Inc. Project)
Series 1994 DN
4.05%** 04/07/00 515 515,000
Cumberland County IDRB (Lawrence
Schiff Silk Co. Project)
Series 1998 DN
4.15%** 04/07/00 2,015 2,015,000
Cumberland County Municipal Authority
RB (Presbyterian Homes Project)
Series 1993A DN
3.90%** 04/07/00 6,000 6,000,000
Dallastown Area School District GO
Series 1998 DN
3.94%** 04/07/00 9,600 9,600,000
Dauphin County General Authority RB
(Allhealth Pooled Financing Program
Project) Series 1997 DN
4.00%** 04/07/00 7,200 7,200,000
Dauphin County General Authority RB
(Education & Health Loan Program)
Series 1997 DN
3.94%** 04/07/00 4,070 4,070,000
Delaware County IDA Airport Facilities
RB (United Parcel Service Project)
Series 1985 DN
3.95%** 04/03/00 2,300 2,300,000
Delaware County IDA Environmental
Improvement Refunding RB (Sunoco,
Inc. Project) Series 1998 DN
3.90%** 04/07/00 7,000 7,000,000
Delaware County IDA PCRB (B.P. Oil,
Inc. Project) Series 1985 DN
4.00%** 04/03/00 600 600,000
Delaware County IDA PCRB (B.P. Oil,
Inc. Project) Series 1995 DN
4.00%** 04/03/00 1,700 1,700,000
Delaware County IDA Refunding PCRB
(PECO Energy Project)
Series 1993A DN
3.95%** 04/03/00 1,000 1,000,000
Delaware County IDA Resource
Recovery Facilities Refunding RB
(General Electric Capital Corp.
Project) Series 1997G DN
3.75%** 04/07/00 2,600 2,600,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984A DN
3.90%** 04/07/00 1,600 1,600,000
See accompanying notes to financial statements.
23
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984B DN
3.90%** 04/07/00 $ 2,000 $ 2,000,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984C DN
3.90%** 04/07/00 2,400 2,400,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984D DN
3.90%** 04/07/00 2,900 2,900,000
Delaware County IDA Solid Waste RB
(Scott Paper Co. Project)
Series 1984E DN
3.90%** 04/07/00 1,595 1,595,000
Delaware County GO (PECO Energy
Co. Project) Series 1988A TECP
3.90% 07/14/00 4,800 4,800,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1985A DN
3.85%** 04/07/00 1,300 1,300,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1985B DN
3.85%** 04/07/00 3,000 3,000,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1985C DN
3.85%** 04/07/00 1,300 1,300,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1985D DN
3.85%** 04/07/00 3,100 3,100,000
Delaware Valley Regional Finance
Authority Local Government RB
Series 1986 DN
3.85%** 04/07/00 1,050 1,050,000
Eastern Pennsylvania Industrial &
Commercial Development Authority
IDRB (Electronic Data Systems
Project) Series 1993 DN
3.95%** 04/07/00 3,900 3,900,000
Elk County IDA Solid Waste RB
(Williamette Industries, Inc. Project)
Series 1992 DN
3.95%** 04/07/00 3,000 3,000,000
Emmaus General Authority Local
Government RB Series 1989 DN
3.95%** 04/07/00 7,500 7,500,000
Emmaus General Authority RB
Series 1998 DN
3.95%** 04/07/00 5,000 5,000,000
Emmaus General Authority RB
Pooled Loan Series 1996 DN
3.90%** 04/07/00 8,300 8,300,000
Erie County Hospital Authority RB
(Hamot Health Foundation Project)
Series 1998A MB
4.00% 05/15/00 850 850,293
Erie County IDRB (American Turned
Products Project) Series 1997 DN
4.15%** 04/07/00 1,900 1,900,000
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Erie County IDRB (Reed Manufacturing
Project) Series 1997 DN
4.10%** 04/07/00 $ 1,500 $ 1,500,000
Franklin County IDA Health Care RB
Series 2000 DN
3.96%** 04/07/00 2,000 2,000,000
Indiana County IDRB (Conemaugh
Project) Series 1997A DN
3.95%** 04/07/00 8,710 8,710,000
Lancaster County RB Series 2000 DN
3.94%** 04/07/00 2,500 2,500,000
Lancaster IDRB Series 1998 DN
4.10%** 04/07/00 2,800 2,800,000
Lawrence County IDRB (L & N
Metallurgical Products Project)
Series 1996 DN
4.25%** 04/07/00 3,575 3,575,000
Lebanon County Health Facilities RB
Series 1999 DN
3.96%** 04/07/00 3,000 3,000,000
Lehigh County General Purpose
Authority Hospital RB (Lehigh Valley
Health Network Project)
Series 1999B DN
4.00%** 04/03/00 6,000 6,000,000
Lehigh County General Purpose RB
(Lehigh Valley Hospital Project)
Series 1997A DN
4.00%** 04/03/00 1,500 1,500,000
Lehigh County IDA PCRB (Allegheny
Electric Co-op, Inc. Project)
Series 1984 DN
4.10%** 04/07/00 800 800,000
Lehigh County IDA PCRB (Allegheny
Electric Co-op, Inc. Project)
Series 1985A DN
3.85%** 04/07/00 4,400 4,400,000
Lehigh County Sewer Authority RB
Series 1985B DN
3.80%** 04/07/00 1,370 1,370,000
Lehigh County Water Authority RB
Series 1984 DN
3.80%** 04/07/00 3,945 3,945,000
Luzerne County Convention Center
Authority Hotel Room Rent Tax RB
Series 1998A DN
3.90%** 04/07/00 3,100 3,100,000
Luzerne County IDRB (Nardone
Brothers Baking Project)
Series 1999 DN
4.05%** 04/07/00 7,020 7,020,000
Lycoming County IDRB (Brodart Co.
Project) Series 1998A DN
4.15%** 04/07/00 1,905 1,905,000
Lycoming County IDRB (Brodart Co.
Project) Series 1998C DN
4.25%** 04/07/00 1,000 1,000,000
Montgomery County IDA Manufacturing
Facilities RB (H.P. Cadwallander, Inc.
Project) Series 1995 DN
4.15%** 04/07/00 600 600,000
Montgomery County IDRB (Apple
Fresh Foods Ltd. Project)
Series 1996 DN
4.15%** 04/07/00 900 900,000
See accompanying notes to financial statements.
24
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Neshaminy School District GO
Series 1998 TRAN
3.85% 06/30/00 $ 4,637 $ 4,641,338
Northampton County IDRB (Accu
Machining Center, Inc. Project)
Series 1998B DN
4.15%** 04/07/00 2,135 2,135,000
Northampton County IDRB (Accu
Machining Center, Inc. Project)
Series 1998C DN
4.15%** 04/07/00 915 915,000
Northampton County IDRB (Citizens
Utilities Co. Project) Series 1991 MB
4.10% 06/07/00 4,000 4,000,000
Northampton County IDRB (Citizens
Utilities Co. Project) Series 1996 DN
4.00%** 04/07/00 13,200 13,200,000
Northeastern Hospital and Education
Authority Health Care RB
(Wyoming Valley Health Care
Project) Series 1994A DN
3.90%** 04/07/00 2,700 2,700,000
Northumberland County IDA Resource
Recovery RB (Foster Wheeler Mt.
Carmel Project) Series 1987A DN
4.00%** 04/07/00 20,985 20,985,000
Northumberland County IDA Resource
Recovery RB (Foster Wheeler Mt.
Carmel Project) Series 1987B DN
4.00%** 04/07/00 590 590,000
Northumberland County IDRB (Furman
Farms, Inc. Project) Series 1995A DN
4.05%** 04/07/00 1,225 1,225,000
Pennsylvania Commonwealth GO
Series 2000 TECP
3.50% 05/09/00 4,800 4,800,000
Pennsylvania Economic Development
Financing Authority RB (Wengers
Feed Mill, Inc. Project)
Series 1999B-1 DN
4.05%** 04/07/00 1,700 1,700,000
Pennsylvania Economic Development
Financing Authority Retirement
Facility RB (Homewood Retirement
Centers Project) Series 1992 DN
3.77%** 04/07/00 5,875 5,875,000
Pennsylvania Energy Development
Authority RB (B&W Ebensburg
Project) Series 1986 DN
3.90%** 04/07/00 2,775 2,775,000
Pennsylvania Energy Development
Authority RB (B&W Ebensburg
Project) Series 1988 DN
3.90%** 04/07/00 2,900 2,900,000
Pennsylvania Energy Development
Authority RB (Piney Creek Project)
Series 1986A DN
3.90%** 04/07/00 14,650 14,650,000
Pennsylvania Energy Development
Authority RB (Piney Creek Project)
Series 1986C DN
3.90%** 04/07/00 3,800 3,800,000
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1985A MB
6.80% 12/01/00 $10,195 $ 10,369,674
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988A DN
4.00%** 04/07/00 1,300 1,300,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988B DN
4.00%** 04/07/00 3,600 3,600,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988C DN
4.00%** 04/07/00 7,300 7,300,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1988E DN
4.00%** 04/07/00 100 100,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1994A DN
4.00%** 04/07/00 4,050 4,050,000
Pennsylvania Higher Education
Assistance Agency Student Loan RB
Series 1995A DN
4.00%** 04/07/00 3,800 3,800,000
Pennsylvania Higher Educational
Facilities Authority RB
Series 1991A MB
7.38% 03/01/01 8,000 8,379,535
Pennsylvania Higher Educational
Facilities Authority RB (Carnegie
Mellon University Project)
Series 1995C DN
3.95%** 04/03/00 2,000 2,000,000
Pennsylvania Higher Educational
Facilities Authority RB (Temple
University Project) Series 1984 DN
3.90%** 04/03/00 555 555,000
Pennsylvania Higher Educational
Facilities Authority RB (The
University of Pennsylvania Health
Services Project) Series 1994B DN
3.90%** 04/07/00 24,300 24,300,000
Pennsylvania Higher Educational
Facilities Authority RB (The
University of Pennsylvania Health
Services Project) Series 1996C DN
3.90%** 04/07/00 7,855 7,855,000
Pennsylvania Higher Educational
Facilities Authority RB (The
University of Pennsylvania Health
Services Project) Series 1998B DN
3.90%** 04/07/00 28,785 28,785,000
Pennsylvania Higher Educational
Facilities Authority Refunding RB
(Carnegie Mellon University Project)
Series 1995C DN
3.95%** 04/03/00 2,450 2,450,000
Pennsylvania Intergovernmental Coop
Authority Special Tax RB (City of
Philadelphia Funding Program)
Series 1992 MB
6.00% 06/15/00 9,755 9,810,00 7
See accompanying notes to financial statements.
25
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Pennsylvania Intergovernmental Coop
Authority Special Tax RB (City of
Philadelphia Funding Program)
Series 1996 MB
5.75% 06/15/00 $ 1,000 $ 1,003,710
Philadelphia Gas Works RB
Series 1999-2 MB
4.25% 07/01/00 1,720 1,723,750
Philadelphia GO Series 1999A TRAN
4.25% 06/30/00 10,000 10,017,852
Philadelphia Hospital and Higher
Education Facilities Authority RB
(Children's Hospital of Philadelphia
Project) Series 1992 DN
3.95%** 04/03/00 5,800 5,800,000
Philadelphia Hospital and Higher
Education Facilities Authority RB
(Children's Hospital of Philadelphia
Project) Series 1996A DN
3.95%** 04/03/00 1,500 1,500,000
Philadelphia IDRB (30th Street Station
Project) Series 1987 DN
4.00%** 04/07/00 6,900 6,900,000
Philadelphia IDRB (GDL Estates Corp.
Project) Series 1998B DN
3.95%** 04/07/00 3,565 3,565,000
Philadelphia IDRB (The Fox Chase
Institute for Cancer Research Project)
Series 1990A DN
3.95%** 04/03/00 1,700 1,700,000
Philadelphia IDRB (The Fox Chase
Institute for Cancer Research Project)
Series 1997 DN
3.95%** 04/03/00 1,400 1,400,000
Philadelphia Municipal Authority
Prerefunded RB Series 1988 MB
7.80% 04/01/00 545 545,000
Philadelphia School District GO
Series 1999B TRAN
4.00% 06/30/00 10,000 10,013,104
Reading Regional Airport Authority RB
Series 1998A DN
4.05%** 04/07/00 1,500 1,500,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985A DN
3.90%** 04/07/00 3,600 3,600,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985B DN
3.90%** 04/07/00 2,000 2,000,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985F DN
3.90%** 04/07/00 1,000 1,000,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985H DN
3.90%** 04/07/00 900 900,000
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985L DN
3.90%** 04/07/00 7,000 7,000,000
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Sayre Health Care Facilities Authority
RB (VHA Capital Financing Project)
Series 1985M DN
3.90%** 04/07/00 $ 1,000 $ 1,000,000
Schuylkill County IDA Resource
Recovery RB (Gilberton Power
Project) Series 1985 DN
3.85%** 04/07/00 900 900,000
Schuylkill County IDA Resource
Recovery RB (Northeastern Power
Co. Project) Series 1997B DN
3.95%** 04/07/00 12,700 12,700,000
Schuylkill County IDRB (Kaytee
Products, Inc. Project)
Series 1995 DN
4.10%** 04/07/00 3,390 3,390,000
Schuylkill County IDRB (Northeastern
Power Co.Project) Series 1997A DN
4.00%** 04/03/00 6,200 6,200,000
Scranton-Lackawana Health and
Welfare Authority RB (Mercy Health
System Project) Series 1996A DN
3.90%** 04/07/00 6,300 6,300,000
Shaler Township GO Series 2000 TAN
4.38% 12/29/00 2,000 2,003,215
South Fork Municipal Authority Hospital
RB (Conemaugh Health System
Project) Series 1998A DN
4.00%** 04/03/00 5,200 5,200,000
State Public School Building Authority
RB (Parkland School District Project)
Series 1999 DN
3.94%** 04/07/00 8,000 8,000,000
Union County IDRB (Playworld Systems,
Inc. Project) Series 1999 DN
4.25%** 04/07/00 1,000 1,000,000
Venango IDA Resource Recovery RB
(Scrubgrass Project)
Series 1990A MB
3.85% 08/07/00 300 300,000
4.05% 08/10/00 4,050 4,050,000
Venango IDA Resource Recovery RB
(Scrubgrass Project)
Series 1990B MB
3.80% 05/15/00 3,300 3,300,000
3.90% 07/18/00 19,365 19,365,000
3.75% 08/09/00 7,085 7,085,000
Venango IDA Resource Recovery RB
(Scrubgrass Project)
Series 1993 MB
3.85% 08/07/00 8,385 8,385,000
Washington County Authority Higher
Education Pooled Equipment Lease
RB Series 1985 DN
3.95%** 04/07/00 7,150 7,150,000
Washington County Authority Lease
RB Series 1985B-1 DN
3.90%** 04/07/00 1,278 1,278,000
Washington County Authority Lease
RB Series 1985C MB
7.30% 06/15/00 6,340 6,570,787
Westmoreland County IDRB (Elizabeth
Carbide Die Co. Project)
Series 1998B DN
4.10%** 04/07/00 3,400 3,400,000
See accompanying notes to financial statements.
26
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
York County General Authority Pooled
Financing RB Series 1996 DN
3.95%** 04/07/00 $ 2,290 $ 2,290,000
York County Hospital Authority RB
(Homewood Retirement Centers of
The United Church of Christ, Inc.
Project) Series 1990 DN
3.77%** 04/07/00 7,200 7,200,000
York County IDA PCRB (PECO Energy
Co. Project) Series 1993A DN
3.95%** 04/03/00 4,500 4,500,000
York County IDRB (Allied Signal, Inc.
Project) Series 1993 DN
4.05%** 04/07/00 1,000 1,000,000
York County IDRB (York Sheet Metal,
Inc. Project) Series 1998 DN
4.05%** 04/07/00 3,375 3,375,000
------------
681,885,902
------------
PUERTO RICO--2.2%
Puerto Rico Electric Power Authority
Trust Receipts Series 1997
SGA-43 DN
3.45%** 04/07/00 3,000 3,000,000
Puerto Rico Electric Power Authority
Trust Receipts Series 1997
SGA-44 DN
3.45%** 04/07/00 1,500 1,500,000
Puerto Rico Government Development
Bank Refunding RB Series 1985 DN
3.15%** 04/07/00 3,668 3,668,000
Puerto Rico Government Development
Bank GO Series 1999 TECP
3.70% 04/11/00 3,500 3,500,000
Puerto Rico Industrial, Medical and
Environmental Pollution Control
Facilities Financing Authority RB
(Reynolds Metals Co. Project)
Series 1983 MB
3.50% 09/01/00 3,850 3,850,000
------------
15,518,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $697,403,902*) 99.8% 697,403,902
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.2% 1,531,146
------- ------------
NET ASSETS (Equivalent to $1.00 per
share based on 460,539,273
Institutional shares, 93,751,395
Service shares and 144,677,424
Investor A shares outstanding) 100.0% $698,935,048
======= ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($698,935,048 (DIVIDE) 698,968,092) $1.00
=====
-----------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 2000, 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.
27
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- -----------
MUNICIPAL BONDS--99.7%
VIRGINIA--98.2%
Albemarle County IDRB (University of
Virginia Health Services Foundation
Project) Series 1998 DN
3.90%** 04/07/00 $2,000 $ 2,000,000
Alexandria IDRB (Young Men's
Christian Association of Metropolitan
Washington Project) Series 1998 DN
3.87%** 04/07/00 1,955 1,955,000
Amelia County IDA Exempt Facility RB
(Chambers Waste System of Virginia,
Inc. Project) Series 1991 DN
4.00%** 04/07/00 1,710 1,710,000
Arlington County IDA Multi-Family
Housing Refunding RB (Arna Valley
View Apartments Project)
Series 2000 DN
3.95%** 04/07/00 1,000 1,000,000
Brunswick County IDA Exempt Facility
RB (Aegis Waste Solutions, Inc.
Project) Series 1996 DN
3.95%** 04/07/00 1,000 1,000,000
Campbell County IDRB (Hadson Power
12 Altavista Project)
Series 1990A DN
4.15%** 04/03/00 300 300,000
Capital Region Airport Commission RB
(Richmond International Airport
Project) Series 1995C DN
3.90%** 04/07/00 1,200 1,200,000
Chesterfield County IDA PCRB
(Virginia Electric & Power Co. Project)
Series 1985 MB
3.80% 06/02/00 1,000 1,000,000
3.95% 07/14/00 500 500,000
Chesterfield County IDRB (Blueprint
Holding, Inc. Project) Series 1997 DN
4.00%** 04/07/00 1,900 1,900,000
City of Virginia Beach Development
Authority RB (Ocean Ranch Motel
Corp. Project) Series 1998 DN
4.00%** 04/07/00 1,000 1,000,000
Commonwealth of Virginia
Transportation Authority RB
Series 1999 DN
3.96%** 04/07/00 2,000 2,000,000
Dinwiddie County IDA Exempt Facility
RB (Chaparral Steel Virginia Project)
Series 1998 DN
4.10%** 04/03/00 800 800,000
Fairfax County IDRB (Fairfax Hospital
System Project) Series 1988A DN
3.75%** 04/07/00 1,000 1,000,000
Fairfax County IDRB (Fairfax Hospital
System Project) Series 1988C DN
3.75%** 04/07/00 300 300,000
Fairfax County IDRB (Inova Health
Systems Project) Series 2000 DN
3.75%** 04/07/00 1,700 1,700,000
Greensville County IDRB (Perdue
Farms, Inc. Project) Series 1986 DN
4.05%** 04/07/00 1,600 1,600,000
Halifax County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1992 MB
4.00% 07/14/00 3,500 3,500,000
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
Hampton Public Improvement GO
Series 2000 MB
4.75% 02/01/01 $1,255 $ 1,261,093
Hanover County IDA Residential Care
Facility RB (Covenent Woods Project)
Series 1999 DN
4.00%** 04/07/00 500 500,000
King George County IDA Exempt
Facility RB (Birchwood Power
Partners Project) Series 1995 DN
4.10%** 04/03/00 1,250 1,250,000
King George County IDA Exempt
Facility RB (Birchwood Power
Partners Project) Series 1996 DN
4.10%** 04/03/00 700 700,000
King George County IDA Exempt
Facility RB (Birchwood Power
Partners Project) Series 1997 DN
4.10%** 04/03/00 300 300,000
Louisa County IDRB (Pooled Financing
Project) Series 1995 DN
4.00%** 04/07/00 400 400,000
Lynchburg GO Series 1990 MB
7.00% 04/01/00 800 816,000
Lynchburg IDA Hospital Facilities RB
(VHA Mid-Atlantic States Capital
Asset Finance Program)
Series 1985B DN
3.95%** 04/07/00 200 200,000
Manassas GO Series 1999 MB
5.00% 05/01/00 525 525,735
Metropolitan Washington D.C. Airport
Authority GO Series 2000 TECP
3.90% 07/28/00 2,500 2,500,000
Nelson County RB (Taylor Ramsey
Project) Series 1999 DN
4.10%** 04/07/00 1,000 1,000,000
Norfolk Airport Authority GO
Series 2000 MB
4.10% 08/23/00 1,500 1,500,000
Norfolk IDRB (2F Realty Co. Project)
Series 1998 DN
4.00%** 04/07/00 1,400 1,400,000
Norfolk IDRB (Children's Hospital of
the King's Daughters Project)
Series 1998 DN
4.00%** 04/07/00 600 600,000
Peninsula Port Authority of Virginia
Coal Terminal RB (Dominion
Terminal Associates Project)
Series 1987D DN
4.00%** 04/03/00 300 300,000
Peninsula Port Authority of Virginia
IDRB (Allied-Signal, Inc. Project)
Series 1993 DN
4.05%** 04/07/00 1,000 1,000,000
Prince William County IDA PCRB
(Virginia Electric & Power Co.
Project) Series 1986 MB
3.95% 07/14/00 1,400 1,400,000
Prince William County IDRB (Colonial
Investments Facility Project)
Series 1996 DN
4.00%** 04/07/00 2,965 2,965,000
See accompanying notes to financial statements.
28
<PAGE>
BLACKROCK FUNDS
STATEMENT OF NET ASSETS
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO (CONCLUDED)
Par
AS OF MARCH 31, 2000 (UNAUDITED) Maturity (000) Value
-------- ------- -----------
MUNICIPAL BONDS (CONTINUED)
VIRGINIA (CONTINUED)
Richmond IDRB (PM Beef Project)
Series 1997 DN
4.20%** 04/07/00 $2,900 $ 2,900,000
Roanoke Hospital IDRB
Series 1999 MB
7.50% 07/01/00 2,500 2,571,540
Smyth County IDRB (Summit
Properties Project) Series 1999 DN
4.15%** 04/07/00 2,300 2,300,000
State of Virginia GO Series 1994 MB
6.00% 06/01/00 1,600 1,606,305
Virginia Beach Development Authority
Residential Care Facility RB
(Westminster-Canterbury Project)
Series 1999B DN
3.90%** 04/07/00 1,500 1,500,000
Virginia College Building Authority
Educational Facilities RB (University
of Richmond Project) Series 1996 DN
3.90%** 04/07/00 1,000 1,000,000
Virginia Housing Development Authority
Commonwealth Mortgage GO
Series 2000 MB
4.15% 09/12/00 1,500 1,500,000
Virginia Resource Authority RB
(Henrico County Project)
Series 1997 DN
4.05%** 04/07/00 2,000 2,000,000
Virginia Small Business Financing
Authority IDRB (Coastal Development
Group Project) Series 1989 DN
4.50%** 04/07/00 195 195,000
Virginia Small Business Financing
Authority RB (Ennestone, Inc.
Project) Series 1999 DN
4.00%** 04/07/00 1,000 1,000,000
York County IDA PCRB (Virginia
Electric & Power Co. Project)
Series 1985 MB
3.95% 07/14/00 200 200,000
-----------
59,855,673
-----------
Par
Maturity (000) Value
-------- ------- ------------
MUNICIPAL BONDS (CONTINUED)
PUERTO RICO--1.5%
Puerto Rico Government Development
Bank Refunding RB Series 1985 DN
3.15%** 04/07/00 $ 300 $ 300,000
Puerto Rico Industrial, Medical and
Environmental Pollution Control
Facilities Financing Authority RB
(Reynolds Metals Co. Project)
Series 1983 MB
3.60% 09/01/00 600 600,000
-----------
900,000
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $60,755,673*) 99.7% 60,755,673
OTHER ASSETS IN EXCESS
OF LIABILITIES 0.3% 194,681
------ -----------
NET ASSETS (Equivalent to $1.00 per
share based on 56,242,356
Institutional shares, 3,554,758
Service shares and 1,153,832
Investor A shares outstanding) 100.0% $60,950,354
====== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
INVESTOR A SHARE
($60,950,354 (DIVIDE) 60,950,946) $1.00
=====
-----------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 2000, 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
RB............................................Revenue Bond
TAN..................................Tax Anticipation Note
TECP...........................Tax-Exempt Commercial Paper
TRAN.....................Tax and Revenue Anticipation Note
See accompanying notes to financial statements.
29
<PAGE>
BLACKROCK FUNDS
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
New Jersey
U.S. Treasury Municipal Municipal
Money Market Money Market Money Market Money Market
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED) Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .......................................... $105,613,326 $23,012,962 $9,302,526 $2,809,057
------------ ----------- ---------- ----------
EXPENSES:
Investment advisory fee ........................... 7,159,238 1,917,645 1,146,572 353,472
Administration fee ................................ 2,663,695 731,829 457,833 141,389
Custodian fee ..................................... 205,783 65,015 46,592 15,129
Transfer agent fee ................................ 602,674 146,866 113,918 34,183
Shareholder servicing fees ........................ 1,192,371 432,250 130,516 68,185
Shareholder processing fees ....................... 1,219,319 410,284 180,877 53,118
Distribution fees ................................. 35,494 -- -- 12,055
Legal and audit ................................... 62,377 13,011 7,359 1,804
Printing .......................................... 103,495 14,572 7,612 2,196
Registration fees and expenses .................... 24,630 23,124 22,965 4,093
Trustees' fees and officers' salary ............... 27,348 8,105 3,514 1,160
Other ............................................. 50,800 15,056 6,525 2,155
------------ ----------- ---------- ----------
13,347,224 3,777,757 2,124,283 688,939
Less fees waived .................................. (3,335,195) (1,177,451) (715,098) (241,054)
------------ ----------- ---------- ----------
Total expenses ................................. 10,012,029 2,600,306 1,409,185 447,885
------------ ----------- ---------- ----------
Net investment income ............................. 95,601,297 20,412,656 7,893,341 2,361,172
------------ ----------- ---------- ----------
Net realized gain (loss)
on investments ................................. (1,105) (12,728) 340 2,536
------------ ----------- ---------- ----------
Net increase in net assets resulting from
operations ..................................... $ 95,600,192 $20,399,928 $7,893,681 $2,363,708
============ =========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
North Carolina Ohio Pennsylvania Virginia
Municipal Municipal Municipal Municipal
Money Market Money Market Money Market Money Market
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED) Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .......................................... $2,077,987 $2,070,594 $12,419,700 $1,151,846
---------- ---------- ----------- ----------
EXPENSES:
Investment advisory fee ........................... 262,707 250,462 1,525,720 141,150
Administration fee ................................ 105,083 100,185 592,478 56,460
Custodian fee ..................................... 13,533 11,720 55,260 8,794
Transfer agent fee ................................ 26,626 35,605 119,664 15,340
Shareholder servicing fees ........................ 1,677 60,985 241,758 3,721
Shareholder processing fees ....................... 1,485 39,670 168,845 3,143
Distribution fees ................................. 9 2,131 51,040 578
Legal and audit ................................... 3,888 1,374 9,948 1,284
Printing .......................................... 5,690 1,589 15,458 858
Registration fees and expenses .................... 5,979 4,863 7,660 6,978
Trustees' fees and officers' salary ............... 1,862 884 4,469 478
Other ............................................. 3,460 1,642 8,301 886
---------- ---------- ----------- ----------
431,999 511,110 2,800,601 239,670
Less fees waived .................................. (253,556) (176,339) (921,260) (137,723)
---------- ---------- ----------- ----------
Total expenses ................................. 178,443 334,771 1,879,341 101,947
---------- ---------- ----------- ----------
Net investment income ............................. 1,899,544 1,735,823 10,540,359 1,049,899
---------- ---------- ----------- ----------
Net realized gain (loss)
on investments ................................. (1,661) 1,095 (20,165) --
---------- ---------- ----------- ----------
Net increase in net assets resulting from
operations ..................................... $1,897,883 $1,736,918 $10,520,194 $1,049,899
========== ========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
30-31
<PAGE>
BLACKROCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. Treasury
Money Market Portfolio Money Market Portfolio
------------------------------- ---------------------------
For the For the
Six Months For the Six Months For the
Ended Year Ended Ended Year Ended
3/31/00 9/30/99 3/31/00 9/30/99
-------------- -------------- ------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ......................... $ 95,601,297 $ 155,016,091 $ 20,412,656 $ 42,598,746
Net realized gain (loss) on investments ....... (1,105) (68,603) (12,728) 29,066
-------------- -------------- ------------ ------------
Net increase in net assets resulting
from operations ............................... 95,600,192 154,947,488 20,399,928 42,627,812
-------------- -------------- ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Class ........................... (59,590,246) (98,261,892) (7,616,210) (15,659,093)
Service Class ................................. (20,279,563) (35,699,099) (11,800,398) (24,215,597)
Hilliard Lyons Class .......................... (3,545,984) -- -- --
Investor A Class .............................. (12,009,154) (20,886,959) (996,046) (2,723,328)
Investor B Class .............................. (119,681) (122,431) (2) --
Investor C Class .............................. (56,669) (45,710) -- (728)
-------------- -------------- ------------ ------------
Total distribution from net
investment income ........................... (95,601,297) (155,016,091) (20,412,656) (42,598,746)
-------------- -------------- ------------ ------------
Capital share transactions ........................ 489,044,189 285,875,157 42,470,380 (71,420,053)
-------------- -------------- ------------ ------------
Total increase (decrease) in
net assets .................................. 489,043,084 285,806,554 42,457,652 (71,390,987)
Net assets:
Beginning of period ............................. 3,320,533,618 3,034,727,064 894,224,553 965,615,540
-------------- -------------- ------------ ------------
End of period ................................... $3,809,576,702 $3,320,533,618 $936,682,205 $894,224,553
============== ============== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Municipal New Jersey 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
3/31/00 9/30/99 3/31/00 9/30/99
------------ ------------ ------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ......................... $ 7,893,341 $ 12,328,300 $ 2,361,172 $ 3,899,587
Net realized gain (loss) on investments ....... 340 4,275 2,536 870
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations ............................... 7,893,681 12,332,575 2,363,708 3,900,457
------------ ------------ ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Class ........................... (4,312,845) (7,889,717) (1,372,887) (2,210,426)
Service Class ................................. (2,392,264) (4,264,538) (399,619) (806,717)
Hilliard Lyons Class .......................... (1,102,089) -- -- --
Investor A Class .............................. (86,143) (173,039) (588,666) (882,443)
Investor B Class .............................. -- -- -- (1)
Investor C Class .............................. -- (1,006) -- --
------------ ------------ ------------ ------------
Total distribution from net
investment income ........................... (7,893,341) (12,328,300) (2,361,172) (3,899,587)
------------ ------------ ------------ ------------
Capital share transactions ........................ 174,731,597 (2,177,494) 35,503,067 (8,860,468)
------------ ------------ ------------ ------------
Total increase (decrease) in
net assets .................................. 174,731,937 (2,173,219) 35,505,603 (8,859,598)
Net assets:
Beginning of period ............................. 394,247,425 396,420,644 139,057,966 147,917,564
------------ ------------ ------------ ------------
End of period ................................... $568,979,362 $394,247,425 $174,563,569 $139,057,966
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
North Carolina Municipal Ohio 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
3/31/00 9/30/99 3/31/00 9/30/99
------------ ------------ ------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ......................... $ 1,899,544 $ 6,694,961 $ 1,735,823 $ 3,135,027
Net realized gain (loss) on investments ....... (1,661) (579) 1,095 (6,193)
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations ............................... 1,897,883 6,694,382 1,736,918 3,128,834
------------ ------------ ------------ ------------
Distributions to shareholders from:
Net investment income:
Institutional Class ........................... (1,870,634) (6,365,924) (972,274) (1,583,637)
Service Class ................................. (23,556) (319,883) (155,759) (857,398)
Hilliard Lyons Class .......................... -- -- -- --
Investor A Class .............................. (5,329) (9,154) (607,790) (693,992)
Investor B Class .............................. (25) -- -- --
Investor C Class .............................. -- -- -- --
------------ ------------ ------------ ------------
Total distribution from net
investment income ........................... (1,899,544) (6,694,961) (1,735,823) (3,135,027)
------------ ------------ ------------ ------------
Capital share transactions ........................ (62,178,524) (21,467,926) 4,524,093 (17,138,785)
------------ ------------ ------------ ------------
Total increase (decrease) in
net assets .................................. (62,180,185) (21,468,505) 4,525,188 (17,144,978)
Net assets:
Beginning of period ............................. 180,066,701 201,535,206 105,449,893 122,594,871
------------ ------------ ------------ ------------
End of period ................................... $117,886,516 $180,066,701 $109,975,081 $105,449,893
============ ============ ============ ============
</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
3/31/00 9/30/99 3/31/00 9/30/99
------------ ------------ ----------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ......................... $ 10,540,359 $ 16,687,480 $ 1,049,899 $ 1,817,624
Net realized gain (loss) on investments ....... (20,165) 558 -- --
------------ ------------ ----------- ------------
Net increase in net assets resulting
from operations ............................... 10,520,194 16,688,038 1,049,899 1,817,624
------------ ------------ ----------- ------------
Distributions to shareholders from:
Net investment income:
Institutional Class ........................... (7,353,925) (11,581,237) (987,237) (1,715,802)
Service Class ................................. (1,165,584) (2,012,057) (46,480) (80,532)
Hilliard Lyons Class .......................... -- -- -- --
Investor A Class .............................. (2,020,850) (3,094,186) (16,182) (21,290)
Investor B Class .............................. -- -- -- --
Investor C Class .............................. -- -- -- --
------------ ------------ ----------- ------------
Total distribution from net
investment income ........................... (10,540,359) (16,687,480) (1,049,899) (1,817,624)
------------ ------------ ----------- ------------
Capital share transactions ........................ 111,038,964 53,072,152 5,601,864 (26,511,446)
------------ ------------ ----------- ------------
Total increase (decrease) in
net assets .................................. 111,018,799 53,072,710 5,601,864 (26,511,446)
Net assets:
Beginning of period ............................. 587,916,249 534,843,539 55,348,490 81,859,936
------------ ------------ ----------- ------------
End of period ................................... $698,935,048 $587,916,249 $60,950,354 $ 55,348,490
============ ============ =========== ============
</TABLE>
See accompanying notes to financial statements.
32-33
<PAGE>
BLACKROCK FUNDS
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS RATIO OF
VALUE NET FROM NET REALIZED VALUE END OF EXPENSES TO
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD AVERAGE NET
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000) ASSETS
-------------------------------------------------------------------------------------------------------------------------------
----------------------
MONEY MARKET PORTFOLIO
----------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0273 $(0.0273) $0.00 $1.00 2.76% $2,328,704 0.42% 2
9/30/99 1.00 0.0478 (0.0478) 0.00 1.00 4.89 2,076,083 0.42
9/30/98 1.00 0.0532 (0.0532) 0.00 1.00 5.46 1,858,165 0.39
9/30/97 1.00 0.0529 (0.0529) 0.00 1.00 5.42 878,566 0.32
9/30/96 1.00 0.0533 (0.0533) 0.00 1.00 5.46 587,730 0.29
9/30/95 1.00 0.0564 (0.0564) 0.00 1.00 5.79 654,157 0.27
SERVICE CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0258 $(0.0258) $0.00 $1.00 2.60% $758,395 0.72% 2
9/30/99 1.00 0.0448 (0.0448) 0.00 1.00 4.58 748,191 0.72
9/30/98 1.00 0.0502 (0.0502) 0.00 1.00 5.14 808,962 0.69
9/30/97 1.00 0.0499 (0.0499) 0.00 1.00 5.11 1,610,315 0.61
9/30/96 1.00 0.0503 (0.0503) 0.00 1.00 5.15 1,575,064 0.59
9/30/95 1.00 0.0534 (0.0534) 0.00 1.00 5.48 1,194,017 0.57
HILLIARD LYONS CLASS
10/18/99 1 through 3/31/00 7 $1.00 $0.0232 $(0.0232) $0.00 $1.00 2.34% $177,261 0.89% 2
INVESTOR A CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0253 $(0.0253) $0.00 $1.00 2.56% $530,715 0.82% 2
9/30/99 1.00 0.0441 (0.0441) 0.00 1.00 4.50 486,578 0.80
9/30/98 1.00 0.0495 (0.0495) 0.00 1.00 5.06 365,458 0.77
9/30/97 1.00 0.0491 (0.0491) 0.00 1.00 5.02 256,039 0.70
9/30/96 1.00 0.0485 (0.0485) 0.00 1.00 4.96 162,099 0.74
9/30/95 1.00 0.0511 (0.0511) 0.00 1.00 5.23 10,185 0.81
INVESTOR B CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0219 $(0.0219) $0.00 $1.00 2.21% $6,423 1.49% 2
9/30/99 1.00 0.0371 (0.0371) 0.00 1.00 3.77 5,414 1.49
9/30/98 1.00 0.0426 (0.0426) 0.00 1.00 4.34 1,805 1.48
9/30/97 1.00 0.0424 (0.0424) 0.00 1.00 4.32 238 1.39
9/30/96 1.00 0.0426 (0.0426) 0.00 1.00 4.34 138 1.36
9/15/95 1 through 9/30/95 1.00 0.0020 (0.0020) 0.00 1.00 0.20 27 1.34 2
INVESTOR C CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0219 $(0.0219) $0.00 $1.00 2.21% $8,079 1.49% 2
9/30/99 1.00 0.0371 (0.0371) 0.00 1.00 3.77 4,268 1.49
9/30/98 1.00 0.0426 (0.0426) 0.00 1.00 4.34 337 1.49
10/17/96 1 through 9/30/97 1.00 0.0390 (0.0390) 0.00 1.00 3.97 2 1.50 2
------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO
------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0249 $(0.0249) $0.00 $1.00 2.52% $358,547 0.41% 2
9/30/99 1.00 0.0453 (0.0453) 0.00 1.00 4.63 324,879 0.41
9/30/98 1.00 0.0519 (0.0519) 0.00 1.00 5.32 297,161 0.38
9/30/97 1.00 0.0515 (0.0515) 0.00 1.00 5.27 162,052 0.31
9/30/96 1.00 0.0519 (0.0519) 0.00 1.00 5.32 167,193 0.29
9/30/95 1.00 0.0555 (0.0555) 0.00 1.00 5.69 120,540 0.27
SERVICE CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0234 $(0.0234) $0.00 $1.00 2.37% $531,191 0.71% 2
9/30/99 1.00 0.0423 (0.0423) 0.00 1.00 4.31 524,122 0.71
9/30/98 1.00 0.0489 (0.0489) 0.00 1.00 5.00 596,644 0.68
9/30/97 1.00 0.0485 (0.0485) 0.00 1.00 4.93 836,151 0.61
9/30/96 1.00 0.0489 (0.0489) 0.00 1.00 5.00 955,454 0.59
9/30/95 1.00 0.0525 (0.0525) 0.00 1.00 5.38 550,959 0.57
INVESTOR A CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0228 $(0.0228) $0.00 $1.00 2.30% $46,944 0.85% 2
9/30/99 1.00 0.0412 (0.0412) 0.00 1.00 4.20 45,224 0.82
9/30/98 1.00 0.0476 (0.0476) 0.00 1.00 4.87 71,811 0.81
9/30/97 1.00 0.0468 (0.0468) 0.00 1.00 4.75 43,425 0.78
9/30/96 1.00 0.0467 (0.0467) 0.00 1.00 4.77 10,630 0.79
9/30/95 1.00 0.0501 (0.0501) 0.00 1.00 5.13 1,285 0.80
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
TO AVERAGE RATIO OF NET TO AVERAGE
NET ASSETS INVESTMENT INCOME NET ASSETS
(EXCLUDING TO AVERAGE NET (EXCLUDING
WAIVERS) ASSETS WAIVERS)
----------------------------------------------------------------------------------
----------------------
MONEY MARKET PORTFOLIO
----------------------
<S> <C> <C> <C>
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 0.61% 2 5.53% 2 5.34% 2
9/30/99 0.61 4.78 4.59
9/30/98 0.63 5.32 5.08
9/30/97 0.65 5.30 4.97
9/30/96 0.65 5.34 4.98
9/30/95 0.64 5.66 5.28
SERVICE CLASS
10/1/99 through 3/31/00 7 0.91% 2 5.22% 2 5.03% 2
9/30/99 0.91 4.48 4.29
9/30/98 0.93 5.03 4.79
9/30/97 0.94 4.99 4.66
9/30/96 0.95 5.00 4.64
9/30/95 0.94 5.35 4.98
HILLIARD LYONS CLASS
10/18/99 1 through 3/31/00 7 1.08% 2 5.16% 2 4.97% 2
INVESTOR A CLASS
10/1/99 through 3/31/00 7 1.01% 2 5.12% 2 4.93% 2
9/30/99 0.99 4.40 4.21
9/30/98 1.01 4.94 4.70
9/30/97 1.03 4.92 4.59
9/30/96 1.10 4.81 4.45
9/30/95 1.19 5.15 4.78
INVESTOR B CLASS
10/1/99 through 3/31/00 7 1.68% 2 4.44% 2 4.25% 2
9/30/99 1.68 3.71 3.52
9/30/98 1.72 4.22 3.98
9/30/97 1.72 4.26 3.93
9/30/96 1.73 4.18 3.82
9/15/95 1 through 9/30/95 1.72 2 4.58 2 4.20 2
INVESTOR C CLASS
10/1/99 through 3/31/00 7 1.69% 2 4.44% 2 4.25% 2
9/30/99 1.68 3.71 3.52
9/30/98 1.73 4.22 3.98
10/17/96 1 through 9/30/97 1.83 2 4.01 2 3.68 2
------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO
------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 0.69% 2 5.06% 2 4.78% 2
9/30/99 0.68 4.53 4.26
9/30/98 0.69 5.19 4.88
9/30/97 0.69 5.15 4.77
9/30/96 0.69 5.18 4.78
9/30/95 0.69 5.64 5.22
SERVICE CLASS
10/1/99 through 3/31/00 7 0.99% 2 4.75% 2 4.47% 2
9/30/99 0.98 4.23 3.96
9/30/98 0.99 4.90 4.59
9/30/97 0.99 4.85 4.47
9/30/96 0.99 4.84 4.45
9/30/95 0.98 5.27 4.85
INVESTOR A CLASS
10/1/99 through 3/31/00 7 1.13% 2 4.59% 2 4.31% 2
9/30/99 1.09 4.12 3.85
9/30/98 1.12 5.57 5.26
9/30/97 1.16 4.70 4.32
9/30/96 1.19 4.60 4.20
9/30/95 1.21 5.03 4.62
</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 NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS RATIO OF
VALUE NET FROM NET REALIZED VALUE END OF EXPENSES TO
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD AVERAGE NET
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000) ASSETS
------------------------------------------------------------------------------------------------------------------------------
------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO (CONTINUED)
------------------------------------
INVESTOR B CLASS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1/10/00 1 through 2/7/00 7 $1.00 $0.0037 $(0.0037) $0.00 $1.00 0.37% $ -- 8 1.48% 2
INVESTOR C CLASS
12/8/98 1 through 5/25/99 $1.00 $0.0138 $(0.0138) $0.00 $1.00 1.39% $ -- 3 1.48% 2
--------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
--------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0161 $(0.0161) $0.00 $1.00 1.63% $ 328,888 0.42% 2
9/30/99 1.00 0.0281 (0.0281) 0.00 1.00 2.85 238,281 0.42
9/30/98 1.00 0.0327 (0.0327) 0.00 1.00 3.32 246,733 0.39
9/30/97 1.00 0.0337 (0.0337) 0.00 1.00 3.42 58,747 0.31
9/30/96 1.00 0.0339 (0.0339) 0.00 1.00 3.41 43,936 0.29
9/30/95 1.00 0.0364 (0.0364) 0.00 1.00 3.70 53,778 0.27
SERVICE CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0146 $(0.0146) $0.00 $1.00 1.47% $ 133,644 0.72% 2
9/30/99 1.00 0.0252 (0.0252) 0.00 1.00 2.54 151,261 0.72
9/30/98 1.00 0.0297 (0.0297) 0.00 1.00 3.01 140,155 0.69
9/30/97 1.00 0.0307 (0.0307) 0.00 1.00 3.11 327,910 0.61
9/30/96 1.00 0.0309 (0.0309) 0.00 1.00 3.10 261,617 0.59
9/30/95 1.00 0.0334 (0.0334) 0.00 1.00 3.39 265,629 0.57
HILLIARD LYONS CLASS
10/26/99 1 through 3/31/00 7 $1.00 $0.0133 $(0.0133) $0.00 $1.00 1.33% $ 101,200 0.64% 2
INVESTOR A CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0138 $(0.0138) $0.00 $1.00 1.39% $ 5,247 0.89% 2
9/30/99 1.00 0.0235 (0.0235) 0.00 1.00 2.37 4,705 0.89
9/30/98 1.00 0.0280 (0.0280) 0.00 1.00 2.83 9,227 0.86
9/30/97 1.00 0.0290 (0.0290) 0.00 1.00 2.93 8,468 0.79
9/30/96 1.00 0.0288 (0.0288) 0.00 1.00 2.88 1,851 0.77
9/30/95 1.00 0.0311 (0.0311) 0.00 1.00 3.15 20 0.79
INVESTOR C CLASS
10/1/98 through 12/18/98 $1.00 $0.0040 $(0.0040) $0.00 $1.00 0.40% $ -- 3 1.49% 2
9/30/98 6 1.00 0.0133 (0.0133) 0.00 1.00 1.34 306 1.47
9/12/97 1 through 9/30/97 1.00 0.0013 (0.0013) 0.00 1.00 0.13 12 1.32 2
-------------------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0159 $(0.0159) $0.00 $1.00 1.60% $ 84,947 0.39% 2
9/30/99 1.00 0.0279 (0.0279) 0.00 1.00 2.83 79,568 0.39
9/30/98 1.00 0.0319 (0.0319) 0.00 1.00 3.24 68,771 0.38
9/30/97 1.00 0.0323 (0.0323) 0.00 1.00 3.28 7,432 0.32
2/1/96 through 9/30/96 1.00 0.0207 (0.0207) 0.00 1.00 2.09 614 0.29 2
1/16/96 1 through 1/31/96 1.00 0.0000 (0.0000) 0.00 1.00 3.07 4,195 0.29 2
SERVICE CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0144 $(0.0144) $0.00 $1.00 1.45% $ 59,035 0.69% 2
9/30/99 1.00 0.0249 (0.0249) 0.00 1.00 2.52 37,120 0.69
9/30/98 1.00 0.0289 (0.0289) 0.00 1.00 2.93 35,152 0.67
9/30/97 1.00 0.0293 (0.0293) 0.00 1.00 2.96 101,294 0.61
2/1/96 through 9/30/96 1.00 0.0187 (0.0187) 0.00 1.00 1.89 68,139 0.59 2
3/1/95 through 1/31/96 1.00 0.0300 (0.0300) 0.00 1.00 3.23 56,958 0.70 2
2/28/95 1.00 0.0200 (0.0200) 0.00 1.00 2.46 43,610 0.63
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
TO AVERAGE RATIO OF NET TO AVERAGE
NET ASSETS INVESTMENT INCOME NET ASSETS
(EXCLUDING TO AVERAGE NET (EXCLUDING
WAIVERS) ASSETS WAIVERS)
-------------------------------------------------------------------------------------
------------------------------------
U.S. TREASURY MONEY MARKET PORTFOLIO (CONTINUED)
------------------------------------
INVESTOR B CLASS
<S> <C> <C> <C>
1/10/00 1 through 2/7/00 7 1.76% 2 4.27% 2 3.99% 2
INVESTOR C CLASS
12/8/98 1 through 5/25/99 1.76% 2 3.46% 2 3.18% 2
--------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
--------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 0.70% 2 3.27% 2 2.99% 2
9/30/99 0.70 2.80 2.52
9/30/98 0.71 3.25 2.93
9/30/97 0.72 3.36 2.95
9/30/96 0.73 3.37 2.93
9/30/95 0.71 3.64 3.20
SERVICE CLASS
10/1/99 through 3/31/00 7 1.00% 2 2.95% 2 2.67% 2
9/30/99 1.00 2.50 2.22
9/30/98 1.01 2.96 2.64
9/30/97 1.02 3.06 2.65
9/30/96 1.03 3.08 2.64
9/30/95 1.01 3.35 2.91
HILLIARD LYONS CLASS
10/26/99 1 through 3/31/00 7 0.92% 2 3.09% 2 2.81% 2
INVESTOR A CLASS
10/1/99 through 3/31/00 7 1.17% 2 2.79% 2 2.51% 2
9/30/99 1.17 2.33 2.05
9/30/98 1.18 2.80 2.48
9/30/97 1.20 2.92 2.51
9/30/96 1.21 2.80 2.36
9/30/95 1.23 3.08 2.64
INVESTOR C CLASS
10/1/98 through 12/18/98 1.77% 2 1.73% 2 1.45% 2
9/30/98 6 1.79 2.08 1.76
9/12/97 1 through 9/30/97 1.73 2 2.63 2 2.22 2
-------------------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 0.70% 2 3.22% 2 2.91% 2
9/30/99 0.71 2.79 2.47
9/30/98 0.75 3.17 2.80
9/30/97 0.76 3.27 2.83
2/1/96 through 9/30/96 0.78 2 3.07 2 2.58 2
1/16/96 1 through 1/31/96 0.78 2 3.07 2 2.58 2
SERVICE CLASS
10/1/99 through 3/31/00 7 1.00% 2 2.94% 2 2.63% 2
9/30/99 1.01 2.49 2.17
9/30/98 1.04 2.89 2.52
9/30/97 1.05 2.93 2.49
2/1/96 through 9/30/96 1.08 2 2.82 2 2.33 2
3/1/95 through 1/31/96 0.74 2 3.17 2 3.13 2
2/28/95 0.70 2.46 2.39
</TABLE>
See accompanying notes to financial statements.
36-37
<PAGE>
BLACKROCK FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS RATIO OF
VALUE NET FROM NET REALIZED VALUE END OF EXPENSES TO
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD AVERAGE NET
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000) ASSETS
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
-------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTOR A CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0132 $(0.0132) $0.00 $1.00 1.33% $ 30,582 0.92% 2
9/30/99 1.00 0.0227 (0.0227) 0.00 1.00 2.30 22,370 0.91
9/30/98 1.00 0.0265 (0.0265) 0.00 1.00 2.68 43,995 0.91
9/30/97 1.00 0.0268 (0.0268) 0.00 1.00 2.71 21,691 0.86
2/1/96 through 9/30/96 1.00 0.0175 (0.0175) 0.00 1.00 1.76 17,314 0.78 2
1/16/96 1 through 1/31/96 1.00 0.0000 (0.0000) 0.00 1.00 2.66 21,662 0.71 2
INVESTOR B CLASS
10/1/99 through 2/8/00 7 $1.00 $0.0000 $ 0.0000 $0.00 $1.00 --% $ -- 8 1.42% 2
9/30/99 1.00 0.0094 (0.0094) 0.00 1.00 0.94 -- 1.46
5/13/98 5 through 9/30/98 1.00 0.0079 (0.0079) 0.00 1.00 0.79 -- 1.44 2
3/20/97 1 through 7/17/97 1.00 0.0077 (0.0077) 0.00 1.00 0.77 -- 4 1.37 2
-----------------------------------------------
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
-----------------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0163 $(0.0163) $0.00 $1.00 1.65% $ 116,329 0.30% 2
9/30/99 1.00 0.0288 (0.0288) 0.00 1.00 2.92 178,059 0.30
9/30/98 1.00 0.0335 (0.0335) 0.00 1.00 3.40 181,984 0.29
9/30/97 1.00 0.0334 (0.0334) 0.00 1.00 3.39 147,658 0.28
9/30/96 1.00 0.0338 (0.0338) 0.00 1.00 3.43 112,097 0.25
9/30/95 1.00 0.0359 (0.0359) 0.00 1.00 3.65 76,673 0.21
SERVICE CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0148 $(0.0148) $0.00 $1.00 1.49% $ 1,201 0.60% 2
9/30/99 1.00 0.0258 (0.0258) 0.00 1.00 2.61 1,639 0.60
9/30/98 1.00 0.0305 (0.0305) 0.00 1.00 3.09 19,306 0.60
9/30/97 1.00 0.0304 (0.0304) 0.00 1.00 3.08 23,704 0.60
9/30/96 1.00 0.0308 (0.0308) 0.00 1.00 3.12 7,463 0.55
11/1/94 5 through 9/30/95 1.00 0.0305 (0.0305) 0.00 1.00 3.11 1,841 0.55 2
INVESTOR A CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0140 $(0.0140) $0.00 $1.00 1.41% $ 352 0.78% 2
9/30/99 1.00 0.0241 (0.0241) 0.00 1.00 2.44 369 0.77
9/30/98 1.00 0.0288 (0.0288) 0.00 1.00 2.92 245 0.76
9/30/97 1.00 0.0287 (0.0287) 0.00 1.00 2.91 304 0.76
9/30/96 1.00 0.0286 (0.0286) 0.00 1.00 2.90 111 0.76
2/14/95 1 through 9/30/95 1.00 0.0194 (0.0194) 0.00 1.00 1.95 53 0.83 2
INVESTOR B CLASS
1/12/00 1 through 3/31/00 7 $1.00 $0.0046 $(0.0046) $0.00 $1.00 0.46% $ 5 1.46% 2
-------------------------------------
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0166 $(0.0166) $0.00 $1.00 1.68% $ 57,886 0.39% 2
9/30/99 1.00 0.0294 (0.0294) 0.00 1.00 2.98 49,237 0.39
9/30/98 1.00 0.0334 (0.0334) 0.00 1.00 3.39 48,614 0.36
9/30/97 1.00 0.0340 (0.0340) 0.00 1.00 3.45 23,739 0.30
9/30/96 1.00 0.0346 (0.0346) 0.00 1.00 3.52 32,944 0.29
9/30/95 1.00 0.0363 (0.0363) 0.00 1.00 3.69 23,679 0.27
SERVICE CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0151 $(0.0151) $0.00 $1.00 1.52% $ 10,502 0.69% 2
9/30/99 1.00 0.0264 (0.0264) 0.00 1.00 2.67 11,284 0.69
9/30/98 1.00 0.0304 (0.0304) 0.00 1.00 3.08 58,077 0.67
9/30/97 1.00 0.0310 (0.0310) 0.00 1.00 3.15 58,160 0.61
9/30/96 1.00 0.0316 (0.0316) 0.00 1.00 3.21 45,525 0.59
9/30/95 1.00 0.0333 (0.0333) 0.00 1.00 3.38 49,857 0.57
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
TO AVERAGE RATIO OF NET TO AVERAGE
NET ASSETS INVESTMENT INCOME NET ASSETS
(EXCLUDING TO AVERAGE NET (EXCLUDING
WAIVERS) ASSETS WAIVERS)
------------------------------------------------------------------------------------------
----------------------------------
NEW JERSEY MUNICIPAL MONEY MARKET
----------------------------------
<S> <C> <C> <C>
INVESTOR A CLASS
10/1/99 through 3/31/00 7 1.23% 2 2.70% 2 2.39% 2
9/30/99 1.23 2.27 1.95
9/30/98 1.28 2.64 2.27
9/30/97 1.30 2.68 2.24
2/1/96 through 9/30/96 1.27 2 2.63 2 2.15 2
1/16/96 1 through 1/31/96 1.20 2 2.66 2 2.17 2
INVESTOR B CLASS
10/1/99 through 2/8/00 7 1.73% 2 1.68% 2 1.37% 2
9/30/99 1.78 1.72 1.40
5/13/98 5 through 9/30/98 1.81 2 2.12 2 1.75 2
3/20/97 1 through 7/17/97 1.81 2 2.35 2 1.91 2
-------------------------------------
NORTH CAROLINA MUNICIPAL MONEY MARKET
-------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 0.74% 2 3.30% 2 2.86% 2
9/30/99 0.70 2.87 2.47
9/30/98 0.74 3.35 2.90
9/30/97 0.73 3.34 2.89
9/30/96 0.74 3.33 2.84
9/30/95 0.74 3.61 3.08
SERVICE CLASS
10/1/99 through 3/31/00 7 1.04% 2 2.98% 2 2.54% 2
9/30/99 1.00 2.57 2.17
9/30/98 1.05 3.04 2.59
9/30/97 1.05 3.04 2.59
9/30/96 1.04 3.06 2.56
11/1/94 5 through 9/30/95 1.08 2 3.34 2 2.81 2
INVESTOR A CLASS
10/1/99 through 3/31/00 7 1.22% 2 2.83% 2 2.39% 2
9/30/99 1.17 2.40 2.00
9/30/98 1.21 2.88 2.43
9/30/97 1.21 2.88 2.43
9/30/96 1.25 2.83 2.34
2/14/95 1 through 9/30/95 1.36 2 3.05 2 2.52 2
INVESTOR B CLASS
1/12/00 1 through 3/31/00 7 1.90% 2 2.29% 2 1.85% 2
-------------------------------------
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 0.71% 2 3.37% 2 3.05% 2
9/30/99 0.71 2.95 2.63
9/30/98 0.72 3.36 3.00
9/30/97 0.73 3.37 2.94
9/30/96 0.75 3.47 3.01
9/30/95 0.73 3.66 3.20
SERVICE CLASS
10/1/99 through 3/31/00 7 1.01% 2 3.07% 2 2.75% 2
9/30/99 1.01 2.65 2.33
9/30/98 1.03 3.04 2.68
9/30/97 1.03 3.10 2.68
9/30/96 1.05 3.17 2.71
9/30/95 1.03 3.35 2.89
</TABLE>
See accompanying notes to financial statements.
38-39
<PAGE>
BLACKROCK FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
NET DISTRIBUTIONS NET NET
ASSET DISTRIBUTIONS FROM NET ASSET ASSETS RATIO OF
VALUE NET FROM NET REALIZED VALUE END OF EXPENSES TO
BEGINNING INVESTMENT INVESTMENT CAPITAL END OF TOTAL PERIOD AVERAGE NET
OF PERIOD INCOME INCOME GAINS PERIOD RETURN (000) ASSETS
------------------------------------------------------------------------------------------------------------------------------
-------------------------------------
OHIO MUNICIPAL MONEY MARKET PORTFOLIO (CONTINUED)
-------------------------------------
INVESTOR A CLASS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/1/99 through 3/31/00 7 $1.00 $0.0142 $(0.0142) $0.00 $1.00 1.43% $ 41,587 0.87% 2
9/30/99 1.00 0.0246 (0.0246) 0.00 1.00 2.49 44,929 0.87
9/30/98 1.00 0.0286 (0.0286) 0.00 1.00 2.90 15,904 0.85
9/30/97 1.00 0.0292 (0.0292) 0.00 1.00 2.96 15,876 0.79
9/30/96 1.00 0.0293 (0.0293) 0.00 1.00 2.98 5,672 0.79
9/30/95 1.00 0.0310 (0.0310) 0.00 1.00 3.15 75 0.80
---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
---------------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0162 $(0.0162) $0.00 $1.00 1.63% $ 460,524 0.42% 2
9/30/99 1.00 0.0280 (0.0280) 0.00 1.00 2.84 376,402 0.42
9/30/98 1.00 0.0322 (0.0322) 0.00 1.00 3.27 350,249 0.39
9/30/97 1.00 0.0332 (0.0332) 0.00 1.00 3.37 229,164 0.30
9/30/96 1.00 0.0334 (0.0334) 0.00 1.00 3.40 198,822 0.29
9/30/95 1.00 0.0355 (0.0355) 0.00 1.00 3.61 233,414 0.26
SERVICE CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0147 $(0.0147) $0.00 $1.00 1.48% $ 93,738 0.72% 2
9/30/99 1.00 0.0250 (0.0250) 0.00 1.00 2.53 76,173 0.72
9/30/98 1.00 0.0292 (0.0292) 0.00 1.00 2.97 73,735 0.69
9/30/97 1.00 0.0302 (0.0302) 0.00 1.00 3.06 234,472 0.61
9/30/96 1.00 0.0304 (0.0304) 0.00 1.00 3.04 224,197 0.59
9/30/95 1.00 0.0325 (0.0325) 0.00 1.00 3.33 147,739 0.57
INVESTOR A CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0138 $(0.0138) $0.00 $1.00 1.39% $ 144,673 0.90% 2
9/30/99 1.00 0.0235 (0.0235) 0.00 1.00 2.37 135,341 0.88
9/30/98 1.00 0.0276 (0.0276) 0.00 1.00 2.80 110,860 0.85
9/30/97 1.00 0.0285 (0.0285) 0.00 1.00 2.89 98,218 0.77
9/30/96 1.00 0.0281 (0.0281) 0.00 1.00 2.90 63,424 0.81
9/30/95 1.00 0.0302 (0.0302) 0.00 1.00 3.06 750 0.82
-----------------------------------------
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
-----------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0168 $(0.0168) $0.00 $1.00 1.69% $ 56,241 0.30% 2
9/30/99 1.00 0.0294 (0.0294) 0.00 1.00 2.98 51,301 0.30
9/30/98 1.00 0.0338 (0.0338) 0.00 1.00 3.43 77,812 0.30
9/30/97 1.00 0.0347 (0.0347) 0.00 1.00 3.53 62,834 0.22
9/30/96 1.00 0.0348 (0.0348) 0.00 1.00 3.54 38,553 0.14
9/30/95 1.00 0.0368 (0.0368) 0.00 1.00 3.74 24,409 0.10
SERVICE CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0153 $(0.0153) $0.00 $1.00 1.54% $ 3,555 0.60% 2
9/30/99 1.00 0.0264 (0.0264) 0.00 1.00 2.68 2,786 0.60
9/30/98 1.00 0.0308 (0.0308) 0.00 1.00 3.13 3,405 0.60
9/30/97 1.00 0.0317 (0.0317) 0.00 1.00 3.22 5,244 0.48
9/30/96 1.00 0.0318 (0.0318) 0.00 1.00 3.25 14,968 0.45
10/11/94 1 through 9/30/95 1.00 0.0330 (0.0330) 0.00 1.00 3.35 821 0.40 2
INVESTOR A CLASS
10/1/99 through 3/31/00 7 $1.00 $0.0140 $(0.0140) $0.00 $1.00 1.41% $ 1,154 0.87% 2
9/30/99 1.00 0.0237 (0.0237) 0.00 1.00 2.40 1,261 0.87
9/30/98 1.00 0.0280 (0.0280) 0.00 1.00 2.84 643 0.87
5/27/97 1 through 9/30/97 1.00 0.0102 (0.0102) 0.00 1.00 1.03 1,096 0.86 2
RATIO OF NET
RATIO OF EXPENSES INVESTMENT INCOME
TO AVERAGE RATIO OF NET TO AVERAGE
NET ASSETS INVESTMENT INCOME NET ASSETS
(EXCLUDING TO AVERAGE NET (EXCLUDING
WAIVERS) ASSETS WAIVERS)
----------------------------------------------------------------------------------------
-------------------------------------
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------
INVESTOR A CLASS
<S> <C> <C> <C>
10/1/99 through 3/31/00 7 1.19% 2 2.88% 2 2.56% 2
9/30/99 1.19 2.47 2.15
9/30/98 1.21 2.86 2.50
9/30/97 1.21 2.92 2.50
9/30/96 1.25 2.88 2.42
9/30/95 1.26 3.02 2.56
---------------------------------------------
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
---------------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 0.70% 2 3.29% 2 3.01% 2
9/30/99 0.70 2.80 2.52
9/30/98 0.71 3.19 2.87
9/30/97 0.70 3.31 2.91
9/30/96 0.71 3.34 2.92
9/30/95 0.68 3.54 3.12
SERVICE CLASS
10/1/99 through 3/31/00 7 1.00% 2 2.98% 2 2.70% 2
9/30/99 1.00 2.50 2.22
9/30/98 1.01 2.92 2.60
9/30/97 1.01 3.01 2.61
9/30/96 1.01 3.02 2.59
9/30/95 0.99 3.29 2.87
INVESTOR A CLASS
10/1/99 through 3/31/00 7 1.18% 2 2.80% 2 2.52% 2
9/30/99 1.16 2.34 2.06
9/30/98 1.17 2.75 2.43
9/30/97 1.17 2.85 2.45
9/30/96 1.23 2.81 2.39
9/30/95 1.24 3.03 2.61
-----------------------------------------
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
-----------------------------------------
INSTITUTIONAL CLASS
10/1/99 through 3/31/00 7 0.74% 2 3.41% 2 2.97% 2
9/30/99 0.75 2.95 2.50
9/30/98 0.77 3.37 2.90
9/30/97 0.81 3.49 2.90
9/30/96 0.82 3.47 2.79
9/30/95 0.95 3.71 2.86
SERVICE CLASS
10/1/99 through 3/31/00 7 1.04% 2 3.10% 2 2.66% 2
9/30/99 1.05 2.65 2.20
9/30/98 1.07 3.08 2.61
9/30/97 1.07 3.12 2.53
9/30/96 1.12 3.05 2.38
10/11/94 1 through 9/30/95 1.25 2 3.50 2 2.65 2
INVESTOR A CLASS
10/1/99 through 3/31/00 7 1.31% 2 2.83% 2 2.39% 2
9/30/99 1.32 2.38 1.93
9/30/98 1.34 2.85 2.38
5/27/97 1 through 9/30/97 1.45 2 2.95 2 2.36 2
<FN>
1 Commencement of operations of share class.
2 Annualized.
3 There were no Investor C shares outstanding as of September 30, 1999.
4 There were no Investor B shares outstanding as of September 30, 1997.
5 Reissuance of shares.
6 This class has opened, closed and then reopened during the fiscal year. The financial highlights are reflective
of the cummulative periods that the class was opened.
7 Unaudited.
8 There were no Investor B shares outstanding as of March 31, 2000.
</FN>
</TABLE>
See accompanying notes to financial statements.
40-41
<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 seven 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 a summary of 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 Hilliard Lyons Investor A
-----------------------------------------------------------------------------------------------------------------------
Contractual Actual Contractual Actual Contractual Actual Contractual Actual
Fees Fees (4) Fees (1) Fees (4) Fees (2) Fees (4) Fees (2) Fees (4)
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market None None 0.30% 0.30% 0.50% 0.40% 0.50% 0.40%
-----------------------------------------------------------------------------------------------------------------------
U.S. Treasury Money Market None None 0.30% 0.30% N/A N/A 0.50% 0.40%
-----------------------------------------------------------------------------------------------------------------------
Municipal Money Market None None 0.30% 0.30% 0.50% 0.15% 0.50% 0.40%
-----------------------------------------------------------------------------------------------------------------------
New Jersey Municipal Money
Market None None 0.30% 0.30% N/A N/A 0.50% 0.48%
-----------------------------------------------------------------------------------------------------------------------
North Carolina Municipal Money
Market None None 0.30% 0.30% N/A N/A 0.50% 0.40%
-----------------------------------------------------------------------------------------------------------------------
Ohio Municipal Money Market None None 0.30% 0.30% N/A N/A 0.50% 0.41%
-----------------------------------------------------------------------------------------------------------------------
Pennsylvania Municipal Money
Market None None 0.30% 0.30% N/A N/A 0.50% 0.47%
-----------------------------------------------------------------------------------------------------------------------
Virginia Municipal Money Market None None 0.30% 0.30% N/A N/A 0.50% 0.50%
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Investor B Investor C
----------------------------------------------------------------------------
Contractual Actual Contractual Actual
Fees (3) Fees (4) Fees (3) Fees (4)
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Money Market 1.15% 1.00% 1.15% 1.00%
----------------------------------------------------------------------------
U.S. Treasury Money Market 1.15% 1.00% 1.15% N/A
----------------------------------------------------------------------------
Municipal Money Market 1.15% N/A 1.15% N/A
----------------------------------------------------------------------------
New Jersey Municipal Money
Market 1.15% 1.00% 1.15% N/A
----------------------------------------------------------------------------
North Carolina Municipal Money
Market 1.15% 1.00% 1.15% N/A
----------------------------------------------------------------------------
Ohio Municipal Money Market 1.15% N/A 1.15% N/A
----------------------------------------------------------------------------
Pennsylvania Municipal Money
Market 1.15% N/A 1.15% N/A
----------------------------------------------------------------------------
Virginia Municipal Money Market 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, 2000.
</FN>
</TABLE>
In addition, Institutional and Service shares bear a Transfer Agent fee at an
annual rate not to exceed .03% and Hilliard Lyons, 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.
(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 these
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, are
distributed at least annually.
FEDERAL TAXES -- No provision is made for federal taxes as it is the Fund's
intention to have each Portfolio continue to qualify for and elect the tax
treatment applicable to regulated investment companies under subchapter M of the
Internal Revenue Code of 1986, as amended, and to make the requisite
distributions to its shareholders which will be sufficient to relieve it from
federal income and excise taxes.
42
<PAGE>
BLACKROCK FUNDS
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 is 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 The PNC Financial Services Group, Inc.
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, 2000, 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 .............................. $7,159,238 $3,335,195 $3,824,043
U.S. Treasury Money Market Portfolio ................ 1,917,645 1,177,451 740,194
Municipal Money Market Portfolio .................... 1,146,572 715,098 431,474
New Jersey Municipal Money Market Portfolio ......... 353,472 241,054 112,418
North Carolina Municipal Money Market Portfolio ..... 262,707 252,409 10,298
Ohio Municipal Money Market Portfolio ............... 250,462 176,339 74,123
Pennsylvania Municipal Money Market Portfolio ....... 1,525,720 921,260 604,460
Virginia Municipal Money Market Portfolio ........... 141,150 137,655 3,495
</TABLE>
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of The PNC
Financial Services Group, Inc. and BlackRock act as co-administrators for the
Fund. For these services, the co-administrators receive a combined
administration fee computed daily and payable monthly, based on a percentage of
the average daily net assets of each Portfolio, at the following annual rates:
.085% of the first $500 million, .075% of the next $500 million and .065% of
assets in excess of $1 billion. In addition, each of the classes are charged an
administration fee based on the following percentage of average daily net assets
of each respective class: .095% of the first $500 million, .085% of the next
$500 million and .075% of assets in excess of $1 billion.
For the period ended March 31, 2000, 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 .............................. $2,663,695 $ -- $2,663,695
U.S. Treasury Money Market Portfolio ................ 731,829 -- 731,829
Municipal Money Market Portfolio .................... 457,833 -- 457,833
New Jersey Municipal Money Market Portfolio ......... 141,389 -- 141,389
North Carolina Municipal Money Market Portfolio ..... 105,083 1,147 103,936
Ohio Municipal Money Market Portfolio ............... 100,185 -- 100,185
Pennsylvania Municipal Money Market Portfolio ....... 592,478 -- 592,478
Virginia Municipal Money Market Portfolio ........... 56,460 68 56,392
</TABLE>
43
<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 and
BlackRock 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
apply to expenses charged on Portfolio assets as a whole, but not expenses
separately charged to the different share classes of a Portfolio.
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.
The expense limits as a percentage of average daily net assets and amounts
subject to possible reimbursement under the expense limitation agreement were as
follows:
Money Market ..................................... .310% $7,631,173
U.S. Treasury Money Market ....................... .295% 2,937,888
Municipal Money Market ........................... .295% 1,558,018
New Jersey Municipal Money Market ................ .265% 553,950
North Carolina Municipal Money Market ............ .195% 923,096
Ohio Municipal Money Market ...................... .265% 417,142
Pennsylvania Municipal Money Market .............. .295% 2,063,383
Virginia Municipal Money Market .................. .205% 309,889
PFPC Trust Co. 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 BlackRock Distributors, Inc. 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) that provide support services to their
customers who are the beneficial owners of shares in each Investor Class and the
Service Class. Refer to the fee table in the "Notes to Financial Statements" for
fee information.
44
<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
3/31/00 9/30/99
---------------- ---------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 1,347,217,714 $ 2,723,434,142
Service Class ........................ 992,741,333 2,720,807,611
Hilliard Lyons Class ................. 260,284,838 --
Investor A Class ..................... 1,130,162,328 2,512,122,406
Investor B Class ..................... 11,494,579 12,639,333
Investor C Class ..................... 20,419,254 22,030,422
Shares issued in reinvestment of dividends:
Institutional Class .................. 55,302 466,421
Service Class ........................ 3,200,613 6,670,890
Hilliard Lyons Class ................. 2,747,346 --
Investor A Class ..................... 11,420,548 18,658,333
Investor B Class ..................... 98,382 93,558
Investor C Class ..................... 38,876 31,755
Shares redeemed:
Institutional Class .................. (1,094,658,450) (2,505,940,526)
Service Class ........................ (985,739,312) (2,788,232,297)
Hilliard Lyons Class ................. (85,770,715) --
Investor A Class ..................... (1,097,437,105) (2,409,651,253)
Investor B Class ..................... (10,583,984) (9,124,279)
Investor C Class ..................... (16,647,358) (18,131,359)
--------------- ---------------
Net increase .............................. $ 489,044,189 $ 285,875,157
=============== ===============
U.S. Treasury Money
Market Portfolio
----------------------------------
For the For the Year
Six Months Ended Ended
3/31/00 9/30/99
--------------- ------------
(Unaudited)
Shares sold:
Institutional Class ..................$ 438,520,627 $ 910,330,259
Service Class ........................ 1,016,291,380 2,196,002,421
Investor A Class ..................... 83,105,235 204,846,376
Investor B Class ..................... 1,012 --
Investor C Class ..................... -- 54,331
Shares issued in reinvestment of dividends:
Institutional Class .................. 4,279 9,442
Service Class ........................ 594,559 2,493,676
Investor A Class ..................... 1,004,827 2,629,147
Investor B Class ..................... 2 --
Investor C Class ..................... -- 722
Shares redeemed:
Institutional Class .................. (404,851,683) (882,632,578)
Service Class ........................ (1,009,809,365) (2,271,034,326)
Investor A Class ..................... (82,389,479) (234,064,470)
Investor B Class ..................... (1,014) --
Investor C Class ..................... -- (55,053)
-------
Net increase (decrease) ...................$ 42,470,380 $ (71,420,053)
=============== ===============
45
<PAGE>
BLACKROCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Municipal Money
Market Portfolio
-------------------------------------
For the For the Year
Six Months Ended Ended
3/31/00 9/30/99
---------------- -------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 304,539,793 $ 626,515,555
Service Class ........................ 369,720,404 758,806,431
Hilliard Lyons Class ................. 140,977,421 --
Investor A Class ..................... 8,258,992 22,899,335
Investor C Class ..................... -- 115
Shares issued in reinvestment of dividends:
Institutional Class .................. 381 --
Service Class ........................ 364,219 1,063,097
Hilliard Lyons Class ................. 825,076 --
Investor A Class ..................... 80,437 167,158
Investor C Class ..................... -- 1,397
Shares redeemed:
Institutional Class .................. (213,933,759) (634,971,125)
Service Class ........................ (387,702,273) (748,764,662)
Hilliard Lyons Class ................. (40,601,365) --
Investor A Class ..................... (7,797,729) (27,587,702)
Investor C Class ..................... -- (307,093)
------------- -------------
Net increase (decrease) ................... $ 174,731,597 $ (2,177,494)
============= =============
New Jersey Municipal
Money Market Portfolio
-------------------------------------
For the For the Year
Six Months Ended Ended
3/31/00 9/30/99
---------------- ------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 82,968,025 $ 159,417,665
Service Class ........................ 35,271,628 40,346,284
Investor A Class ..................... 89,429,850 126,463,562
Investor B Class ..................... -- --
Shares issued in reinvestment of dividends:
Institutional Class .................. 64,685 50,493
Service Class ........................ 43,141 83,193
Investor A Class ..................... 389,148 823,079
Investor B Class ..................... -- 1
Shares redeemed:
Institutional Class .................. (77,655,875) (148,671,242)
Service Class ........................ (13,400,217) (38,461,030)
Investor A Class ..................... (81,607,266) (148,912,473)
Investor B Class ..................... (52) --
------------ ------------
Net increase (decrease) ................... $ 35,503,067 $ (8,860,468)
============ ============
46
<PAGE>
BLACKROCK FUNDS
North Carolina Municipal
Money Market Portfolio
-----------------------------------
For the For the Year
Six Months Ended Ended
3/31/00 9/30/99
---------------- ------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 150,818,906 $ 535,254,134
Service Class ........................ 10,796,672 56,837,213
Investor A Class ..................... 40,044 190,110
Investor B Class ..................... 5,445 --
Shares issued in reinvestment of dividends:
Institutional Class .................. 7,507 4,403
Service Class ........................ 19,298 36,151
Investor A Class ..................... 5,238 9,128
Investor B Class ..................... 9 --
Shares redeemed:
Institutional Class .................. (212,555,839) (539,183,661)
Service Class ........................ (11,253,558) (74,540,755)
Investor A Class ..................... (62,246) (74,649)
Investor B Class ..................... -- --
------------- -------------
Net decrease .............................. $ (62,178,524) $ (21,467,926)
============= =============
Ohio Municipal
Money Market Portfolio
------------------------------------
For the For the Year
Six Months Ended Ended
3/31/00 9/30/99
---------------- -------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 116,646,993 $ 182,873,102
Service Class ........................ 20,202,337 110,327,709
Investor A Class ..................... 37,604,132 109,339,237
Shares issued in reinvestment of dividends:
Institutional Class .................. 2,616 2,440
Service Class ........................ 9,471 561,579
Investor A Class ..................... 601,503 663,445
Shares redeemed:
Institutional Class .................. (108,000,830) (182,249,894)
Service Class ........................ (20,994,298) (157,679,961)
Investor A Class ..................... (41,547,831) (80,976,442)
------------- -------------
Net increase (decrease) ................... $ 4,524,093 $ (17,138,785)
============= =============
47
<PAGE>
BLACKROCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Pennsylvania Municipal
Money Market Portfolio
-----------------------------------
For the For the Year
Six Months Ended Ended
3/31/00 9/30/99
------------- ---------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 528,934,940 $ 1,037,502,953
Service Class ........................ 108,838,019 190,803,785
Investor A Class ..................... 250,366,975 486,622,487
Shares issued in reinvestment of dividends:
Institutional Class .................. 35,154 67,375
Service Class ........................ 361,783 605,537
Investor A Class ..................... 2,005,597 3,058,878
Shares redeemed:
Institutional Class .................. (444,834,896) (1,011,416,929)
Service Class ........................ (91,632,599) (188,971,099)
Investor A Class ..................... (243,036,009) (465,200,835)
------------- ---------------
Net increase .............................. $ 111,038,964 $ 53,072,152
============= ===============
Virginia Municipal
Money Market Portfolio
------------------------------------
For the For the Year
Six Months Ended Ended
3/31/00 9/30/99
---------------- -------------
(Unaudited)
Shares sold:
Institutional Class .................. $ 62,494,486 $ 121,465,660
Service Class ........................ 5,313,940 8,816,929
Investor A Class ..................... 756,760 2,752,842
Shares issued in reinvestment of dividends:
Institutional Class .................. 1,079 246,705
Service Class ........................ 43,684 78,555
Investor A Class ..................... 16,106 20,870
Shares redeemed:
Institutional Class .................. (57,555,257) (148,222,976)
Service Class ........................ (4,588,794) (9,514,476)
Investor A Class ..................... (880,140) (2,155,555)
------------ -------------
Net increase (decrease) ................... $ 5,601,864 $ (26,511,446)
============ =============
On March 31, 2000, one shareholder held approximately 25% of the
outstanding shares of the U. S. Treasury Money Market Portfolio, one shareholder
held approximately 13% of the outstanding shares of the New Jersey Municipal
Money Market Portfolio, three shareholders held approximately 87% of the
outstanding shares of the North Carolina Municipal Money Market Portfolio, one
shareholder held approximately 10% of the Ohio Municipal Money Market Portfolio,
one shareholder held approximately 12% of the Pennsylvania Municipal Money
Market Portfolio and two shareholders held approximately 72% of the outstanding
shares of the Virginia Municipal Money Market Portfolio. Some of the
shareholders are actually omnibus accounts, which are held on behalf of several
individual shareholders.
48
<PAGE>
BLACKROCK FUNDS
(D) AT MARCH 31, 2000, 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 ........................ $3,809,565,884 $936,648,342 $569,048,639 $174,568,413
Accumulated net realized gain (loss) on
investment transactions ............. 10,818 33,863 (69,277) (4,844)
-------------- ------------ ------------ ------------
$3,809,576,702 $936,682,205 $568,979,362 $174,563,569
============== ============ ============ ============
North
Carolina Ohio Pennsylvania Virginia
Municipal Municipal Municipal Municipal
Money Market Money Market Money Market Money Market
Portfolio Portfolio Portfolio Portfolio
-------------- ------------ ------------ ------------
Capital paid-in ........................ $117,887,419 $110,009,068 $698,965,174 $60,950,946
Accumulated net realized loss on
investment transactions ............. (903) (33,987) (30,126) (592)
-------------- ------------ ------------ ------------
$117,886,516 $109,975,081 $698,935,048 $60,950,354
============== ============ ============ ============
</TABLE>
(E) CAPITAL LOSS CARRYOVER
At September 30, 1999, capital loss carryovers were available to offset
possible future realized capital gains as follows:
Capital Loss Year Of
Carryforward Expiration
------------ ----------
Money Market Portfolio $23,015 2007
Municipal Money Market Portfolio: 15,971 2000
20,433 2001
19,387 2002
12,355 2003
1,471 2006
New Jersey Municipal Money Market Portfolio: 1,262 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
16,541 2007
Pennsylvania Municipal Money Market Portfolio: 191 2002
1,329 2003
3,233 2004
1,626 2005
3,403 2006
Virginia Municipal Money Market Portfolio: 171 2003
401 2007
At September 30, 1999, deferred post-October losses for the Money Market
Portfolio were $45,588, New Jersey Municipal Money Market Portfolio $4,485,
North Carolina Municipal Money Market Portfolio $218 and the Ohio Municipal
Money Market Portfolio were $6,193.
49
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Investment Adviser Distributor
BlackRock Advisors, Inc. BlackRock Distributors, Inc.
New York, New York 10154 King of Prussia, Pennsylvania 19406
Sub-Adviser Co-Administrator
BlackRock Institutional Management BlackRock Advisors, Inc.
Corporation New York, New York 10154
Wilmington, Delaware 19809
Counsel
Custodian Simpson, Thatcher & Bartlett
PFPCTrust Co. New York, New York 10017
Philadelphia, Pennsylvania 19103 (A partnership which includes
professional corporations)
Co-Administrator and Transfer Agent Independent Accountants
PFPC Inc. PricewaterhouseCoopers LLP
Wilmington, Delaware 19809 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.(R)
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
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 IRA accounts 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.
<PAGE>
[GRAPHIC OMITTED]
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.
SAR 3/31/00 MM
