BlackRock Asset Investors
- --------------------------------------------------------------------------------
Semi-Annual Report
April 30, 1995
(Unaudited)
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------------------------------------------
BlackRock Asset Investors
- -------------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities
April 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investment in BlackRock Capital Finance L.P., at value (cost $18,020,475)
(Notes 1 and 4)................................................................ $ 17,324,572
Investment in Asset Investors Inc., at value (cost $182,025)
(Notes 1 and Note 4)........................................................... 174,996
Repurchase agreement (Note 1)
State Street Bank and Trust Co., 5.90%, dated 4/28/95, due 5/01/95 in the
amount of $750,369 (cost $750,000, collateralized by $805,000
U.S. Treasury Note, 5.00%, due 1/31/99 with a value of $778,782)............... 750,000
Deferred organization expenses and other assets (Note 1)............................ 202,030
-------
18,451,598
Liabilities
Advisory fee payable (Note 2)....................................................... 852,029
Notes payable (Note 6).............................................................. 202,500
Payable for organization expenses................................................... 187,500
Directors' fee payable.............................................................. 73,973
Due to custodian.................................................................... 15,765
Other accrued expenses.............................................................. 26,706
------
1,358,473
Net Assets.......................................................................... $ 17,093,125
= ==========
Net assets were comprised of:
Shares of beneficial interest, at par (Note 7)................................. $ 188
Paid-in capital in excess of par............................................... 20,669,470
Receivable for shares of beneficial interest (Note 7).......................... (1,919,658)
----------
18,750,000
Net investment income (loss)................................................... (953,943)
Net unrealized depreciation on investments..................................... (702,932)
--------
Net assets, April 30,1995...................................................... $ 17,093,125
= ==========
Net asset value per share........................................................... $ 911.63
= ======
Total shares outstanding at end of period........................................... 18,750
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
1
<PAGE>
<TABLE>
BlackRock Asset Investors
Statement of Operations
For the Period March 29, 1995* through April 30,1995
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
Net Investment Income
Income
Interest (net of interest expense of $1,521).................................... $ 2,408
-----------
Expenses
Investment advisory............................................................. 852,029
Directors....................................................................... 73,973
Legal........................................................................... 12,329
Audit........................................................................... 10,233
Amortization of deferred organization expenses.................................. 3,185
Custodian....................................................................... 1,868
Administration.................................................................. 1,783
Transfer agent.................................................................. 446
Miscellaneous................................................................... 505
---
Total expenses.............................................................. 956,351
-------
Net investment income (loss).................................................... (953,943)
--------
Realized and Unrealized Loss
on Investments (Note 4)
Net unrealized depreciation on investments.......................................... (702,932)
--------
Net Decrease In Net Assets
Resulting from Operations....................................................... $(1,656,875)
===========
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of operations.
See Notes to Financial Statements.
2
<PAGE>
<TABLE>
BlackRock Asset Investors
Statement of Cash Flows
For the Period March 29, 1995* through April 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (Decrease) in Cash Cash flows used for operating activities:
Interest received ................................................ $ 3,560
Expenses paid .................................................... (19,325)
Purchase of short-term portfolio
investments, net .............................................. (750,000)
Purchase of long-term portfolio investments .......................... (18,202,500)
-----------
Net cash flows used for operating activities ......................... (18,968,265)
-----------
Cash flows provided by financing activities:
Proceeds from Trust shares issued ................................ 18,750,000
Proceeds from notes sold ......................................... 202,500
-------
Net cash flows provided by financing activities .................. 18,952,500
----------
Net decrease in cash ................................................. (15,765)
Cash at beginning of period........................................... --
Due to custodian at end of period .................................... $ (15,765)
= =======
Reconciliation of Net Decrease in Net
Assets Resulting from Operations
to Net Cash Flows Used for
Operating Activities
Net decrease in net assets resulting from operations ................. $ (1,656,875)
- ----------
Increase in investments .............................................. (18,952,500)
Increase in unrealized depreciation .................................. 702,932
Increase in interest receivable ...................................... (369)
Increase in deferred organization expenses and other assets .......... (201,661)
Increase in accrued expenses and other liabilities.................... 1,140,208
---------
Total adjustments ................................................ (17,311,390)
-----------
Net cash flows used for operating activities ......................... $ (18,968,265)
= ===========
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of operations.
See Notes to Financial Statements.
3
<PAGE>
<TABLE>
BlackRock Asset Investors
Statement of Changes in Net Assets
For the Period March 29, 1995* through April 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss).................................................... $ (953,943)
Net unrealized depreciation
on investments............................................................... (702,932)
--------
Net decrease in net assets resulting
from operations.............................................................. (1,656,875)
----------
Transactions in shares of beneficial interest:
Proceeds from shares issued..................................................... 18,750,000
----------
Net increase.................................................................... 17,093,125
Net Assets
Beginning of period................................................................. --
End of period....................................................................... $ 17,093,125
= ==========
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
See Notes to Financial Statements.
4
<PAGE>
<TABLE>
BlackRock Asset Investors
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------
For the Period March 30, 1995* through April 30, 1995
- ---------------------------------------------------------------------------------------------------------------------
(Unaudited)
- ---------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING
PERFORMANCE:
<S> <C>
Net asset value, beginning of period...................... $ 1,000.00
- --------
Net investment income (loss)........................... (50.88)
Net unrealized loss on
investments......................................... (37.49)
------
Net decrease from investment operations................... (88.37)
------
Net asset value, end of period............................ $ 911.63
= ======
TOTAL INVESTMENT RETURN (a)............................... (8.84)%
RATIOS TO AVERAGE NET ASSETS:
Expenses ................................................. 60% (b)
Net investment loss ...................................... (60)% (b)
SUPPLEMENTAL DATA:
Average net assets (in thousands) ........................ $18,198
Portfolio turnover ....................................... --
Net assets, end of period (in thousands).................. $17,093
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of investment operations.
(a) Total investment return is calculated assuming a purchase of a share of
beneficial interest at net asset value per share on the first day and a
sale at net asset value per share on the last day of the period reported.
Dividends are assumed, for purposes of this calculation, to be reinvested
at the net asset value per share on the payment date. Total investment
return for periods of less than one full year are not annualized.
(b) Annualized.
Contained above is unaudited operating performance based on an average
share of beneficial interest outstanding, total investment return, ratios
to average net assets and other supplemental data, for the period
indicated. This information has been determined based upon financial
information provided in the financial statements.
See Notes to Financial Statements.
5
<PAGE>
BlackRock Asset Investors
Notes to Financial Statements
(Unaudited)
- --------------------------------------------------------------------------------
Note 1. Organization and Accounting Policies
BlackRock Asset Investors ("BAI" or the "Trust") is a non-diversified
closed-end investment company organized as a Delaware business trust registered
under the Investment Company Act of 1940. The Declaration of Trust permits the
Trustees to create a limited number of series (or "Funds"), each of which issues
a separate class of shares. As of April 30, 1995 the Trustees have established
BlackRock Fund Investors I, BlackRock Fund Investors II, and BlackRock Fund
Investors III. The Trust was formed on December 21, 1994 and had no operations
through March 29, 1995 other than those related to organizational matters and
the sale and issuance of 274.108 shares of beneficial interest to BlackRock Fund
Investors III. The Trust will seek to achieve high total returns primarily from
its investments in subordinated commercial mortgage-backed securities and other
investment securities and from its investment in its wholly-owned affiliates,
BlackRock Capital Finance L.P. ("BCF"), Asset Investors Inc. ("AII"), and other
mortgage affiliates, which will engage primarily in the business of acquiring,
pooling and repackaging performing commercial mortgage loans as commercial
mortgage-backed securities for distribution to the Trust and its strategic
coinvestors (Note 3) and for sale in capital markets. In addition, BCF will
acquire and work out distressed commercial and residential mortgage loans. BCF
is a Delaware limited partnership, with BAI as the 99% General Partner, and AII
as the 1% Limited Partner. BAI owns 99% of the outstanding partnership interest
of BCF as well as 100% of the outstanding partnership interest of AII.
The Trust and BCF invest in debt securities and the ability of issuers of
such debt securities held by the Trust and BCF to meet their obligations may be
affected by economic developments in a specific industry or region. No assurance
can be given that the Trust's investment objective will be achieved.
The following is a summary of significant accounting policies followed by
the Trust.
Securities Valuation: The Trust and BCF value mortgage-backed, asset-backed and
other debt securities on the basis of current market quotations provided by
dealers or pricing services approved by the Trust's Board of Trustees. In
determining the value of a particular security, pricing services may use certain
information with respect to transactions in such securities, quotations from
dealers, market transactions in comparable securities, various relationships
observed in the market between securities, and calculated yield measures based
on valuation technology commonly employed in the market for such securities.
Exchange-traded options are valued at their last sales price as of the close of
options trading on the applicable exchanges. In the absence of a last sale,
options are valued at the average of the quoted bid and asked prices as of the
close of business. A futures contract is valued at the last sale price as of the
close of the commodities exchange on which it trades unless the Trust's
Valuation Committee determines that such price does not reflect its fair value,
in which case it will be valued at its fair value as determined by the Trust's
Valuation Committee. The Trust's investment in BCF and other mortgage affiliates
is valued at the net asset value of the assets of each such entity over its
liabilities. Mortgage loans acquired as distressed or nonperforming loans are
valued at cost from the date of acquisition to the date on which a significant
event occurs, such as revaluation of the collateral, resolution of legal
impediments, bankruptcy of the borrower, restructuring of the loan and so forth.
Where a pool of distressed mortgages are purchased in bulk, the purchase price
shall be allocated among them in the manner in which the purchaser structured
its bid as modified by any further analysis prior to or closely following
closing. When a significant event affecting valuation occurs, the mortgage
6
<PAGE>
loan shall be revalued on the basis of such event and, if possible, shall
thereafter, be valued on an analytical basis rather than a cost basis. Any
securities or other assets, held by the Trust or BCF, for which current market
quotations are not readily available are valued at fair value as determined in
good faith under the Valuation Policy and Guidelines established by and under
the general supervision and responsibility of the Trust's Valuation Committee.
Short-term securities which mature in more than 60 days are valued at
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost, if their term to maturity from date of purchase
was 60 days or less, or by amortizing their value on the 61st day prior to
maturity, if their original term to maturity from date of purchase exceeded 60
days.
In connection with transactions in repurchase agreements, the Trust's
custodian takes possession of the underlying collateral securities, the value of
which at least equals the principal amount of the repurchase transaction,
including accrued interest. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market on a
daily basis to ensure the adequacy of the collateral. If the seller defaults and
the value of the collateral declines or if bankruptcy proceedings are commenced
with respect to the seller of the security, realization of the collateral by the
Trust may be delayed or limited.
Option Selling/Purchasing: When the Trust sells or purchases an option, an
amount equal to the premium received or paid by the Trust is recorded as a
liability or an asset and is subsequently adjusted to the current market value
of the option written or purchased. Premiums received or paid from writing or
purchasing options which expire unexercised are treated by the Trust on the
expiration date as realized gains or losses. The difference between the premium
and the amount paid or received on effecting a closing purchase or sale
transaction, including brokerage commissions, is also treated as a realized gain
or loss. If an option is exercised, the premium paid or received is added to the
proceeds from the sale or cost of the purchase in determining whether the Trust
has realized a gain or a loss on investment transactions. The Trust, as writer
of an option, may have no control over whether the underlying securities may be
sold (call) or purchased (put) and as a result bears the market risk of an
unfavorable change in the price of the security underlying the written option.
Options, when used by the Trust, help in maintaining a targeted duration.
Duration is a measure of the price sensitivity of a security or a portfolio to
relative changes in interest rates. For instance, a duration of "one" means that
a portfolio or a security's price would be expected to change by approximately
one percent with a one percent change in interest rates, while a duration of
"five" would imply that the price would move approximately five percent in
relation to a one percent change in interest rates.
Option selling and purchasing is used by the Trust to effectively "hedge"
more volatile positions so that changes in interest rates do not change the
duration of the portfolio unexpectedly. In general, the Trust uses options to
hedge a long or short position or an overall portfolio that is longer or shorter
than the benchmark security. A call option gives the purchaser of the option the
right (but not the obligation) to buy, and obligates the seller to sell (when
the option is exercised), the underlying position at any time or at a specified
time during the option period. A put option gives the holder the right to sell,
and obligates the writer to buy, the underlying position at the exercise price
at any time or at a specified time during the option period. Put options can be
purchased to effectively hedge a position or a portfolio against price declines
if a portfolio is long. In the same sense, call options can be purchased to
hedge a portfolio that is shorter than its benchmark against price changes. The
Trust can also sell (or write) covered call options and put options to hedge
portfolio positions.
The main risk that is associated with purchasing options is that the option
expires without being exercised. In this case, the option expires worthless and
the premium paid for the option is considered the loss. The risk associated with
writing call options is that the Trust may forego the opportunity for a profit
if the market value of the underlying position increases and the option is
exercised. The risk in writing put options is that Trust may incur a loss if the
market value of the underlying position decreases and the option is exercised.
In addition, as with
7
<PAGE>
future contracts, the Trust risks not being able to enter into a closing
transaction for the written option as the result of an illiquid market.
Financial Futures Contracts: A futures contract is an agreement between two
parties to buy or sell a financial instrument for a set price on a future date.
Initial margin deposits are made upon entering into futures contracts and can be
either cash or securities. During the period that the futures contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking-to-market" on a daily basis to reflect the market value of
the contract at the end of each day's trading. Variation margin payments are
made or received, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Trust records a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Trust's basis in the contract.
Financial futures contracts, when used by the Trust, help in maintaining a
targeted duration. Futures contracts can be sold to effectively shorten an
otherwise longer duration portfolio. Duration is a measure of the price
sensitivity of a security or a portfolio to relative changes in interest rates.
For instance, a duration of "one" means that a portfolio or a security's price
would be expected to change by approximately one percent with a one percent
change in interest rates, while a duration of "five" would imply that the price
would move approximately five percent in relation to a one percent change in
interest rates. In the same sense, futures contracts can be purchased to
lengthen a portfolio that is shorter than its duration target. Thus, by buying
or selling futures contracts, the Trust can effectively "hedge" more volatile
positions so that changes in interest rates do not change the duration of the
portfolio unexpectedly.
The Trust may invest in financial futures contracts primarily for the
purpose of hedging its existing portfolio securities or securities the Trust
intends to purchase against fluctuations in value caused by changes in
prevailing market interest rates, or for risk management, duration management or
other portfolio management purposes. Should interest rates move unexpectedly,
the Trust may not achieve the anticipated benefits of the financial futures
contracts and may realize a loss. The use of futures transactions involves the
risk of imperfect correlation in movements in the price of futures contracts,
interest rates and the underlying hedged assets. The Trust is also at risk of
not being able to enter into a closing transaction for the futures contract
because of an illiquid secondary market. In addition, since futures are used to
shorten or lengthen a portfolio's duration, there is a risk that the portfolio
may have temporarily performed better without the hedge or that the Trust may
lose the opportunity to realize appreciation in the market price of the
underlying positions.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust accretes premium or amortizes discount on securities
purchased using the interest method.
Taxes: It is the Trust's intention to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its taxable income to shareholders. Therefore, no federal
income or excise tax provision is required.
Dividends and Distributions: The Trust declares and distributes dividends at
least annually first from net investment income, then from realized short-term
capital gains and other sources, and lastly from paid-in capital. Net long-term
capital gains, if any, in excess of loss carryforwards are distributed at least
annually. Dividends and distributions are recorded on the ex-dividend date.
Income distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles.
8
<PAGE>
Investment Advisory, Administration and Other Expenses: Investment advisory,
administration and other expenses are recorded on the accrual basis. Performance
fees, if attained, are determined and recorded annually.
Deferred Organization Expenses: A total expenditure of $187,500 was incurred in
connection with the organization of the Trust. These costs have been deferred
and are being amortized ratably over a period of 60 months from the date the
Trust commenced investment operations.
Note 2. Agreements
The Trust has an Investment Advisory Agreement with BlackRock Financial
Management, Inc. (the "Advisor") which provides that during the Commitment
Period the Trust will pay to the Advisor for its services a semi-annual fee, in
arrears, in an amount equal to .75% of the aggregate Capital Commitments, on an
annualized basis. Subsequent to the Commitment Period, the semi-annual fee
payable in arrears to the Advisor is reduced to .50% of the weighted average
capital invested during the relevant period on an annualized basis. In addition
to its management fee, the Trust will pay to the Advisor as of the first
anniversary of the commencement of the Trust's operations, as of each October 31
thereafter and as of the Trust's termination date a performance fee payable only
if certain criteria, as described in the Trust's Investment Advisory Agreement,
are met.
The Trust has also entered into an Administration Agreement with State
Street Bank and Trust Company ("State Street"). State Street will receive an
annual fee equal to .08% of Trust's average net asset value up to $225 million,
.06% of the next $225 million and .04% thereafter, subject to a certain minimum
requirements.
Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust, who
are affiliated persons of the Advisor. State Street pays occupancy and certain
clerical and accounting costs of the Trust. The Trust bears all other costs and
expenses.
Certain trustees of the Trust who are not interested parties are paid a
fee for their services in the amount of $40,000 each on an annual basis.
Note 3. Strategic Coinvestor
Brazos GenPar, Inc. ("BGI") will be the Trust's and BCF's strategic
coinvestor in the real estate debt investment activities described herein. In
connection with its strategic relationship, BGI will commit professional
resources to its efforts with the Trust and BCF, including loan underwriting,
work-out and information processing. In addition, Brazos Advisors, L.L.C., a BGI
affiliate in which the Advisor will acquire a minority interest and will grant
to each shareholder of the Funds a warrant or similar instrument to share in a
portion of the appreciation of such minority interest, will be retained to
provide certain servicing functions with respect to commercial and residential
mortgage loans acquired by BCF and the Trust. Finally, pursuant to a
coinvestment agreement, BCF and BAI will offer coinvestments to BGI with respect
to each commercial real estate asset proposed for investment. BGI's
coinvestments will not be less than 10% and, under certain circumstances, the
coinvestment agreement may be terminated by either party.
Neither the Trust nor BCF will be permitted to acquire any commercial or
residential mortgage asset unless a strategic coinvestor in the relevant asset
class coinvests in such asset. Accordingly, the Trust and BCF will be prohibited
from investing in any asset with respect to which its strategic partner in the
relevant asset class has declined to coinvest, unless the Trust and BCF have
received the approval of a majority of the Trustees and all of the Investor
Trustees with respect to the identity of and arrangements with an alternative
strategic coinvestor with respect to such asset. In addition, if the
coinvestment agreement with a strategic coinvestor is terminated, prior to
acquiring any additional assets in the relevant asset class, the Trust and BCF
will be required to obtain the approval of a majority of the Trustees and all of
the Investor Trustees with respect to the identity of and arrangements with an
alternative strategic coinvestor. Any such alternative strategic coinvestor
must, with respect
9
<PAGE>
to the relevant asset class, (i) possess the requisite real estate and servicing
capabilities, (ii) commit professional resources to its efforts with the Trust
and BCF, including loan underwriting, work-out and servicing, and (iii) agree to
make coinvestments of at least 10% with the Trust or BCF, pursuant to the terms
of a coinvestment agreement with such strategic coinvestor, and agree to provide
requested servicing functions with respect to the related assets. All
coinvestments will be concurrently with and on the same terms as the Trust and
BCF.
Note 4. Portfolio Securities
Purchases of investment securities, other than short-term investments and
dollar rolls, for the period ended April 30, 1995 aggregated $18,202,500. The
federal income tax basis of the investments at April 30, 1995 was substantially
the same as the basis for financial reporting and, accordingly, net and gross
unrealized depreciation for federal income tax purposes was $702,932.
The Trust may invest without limit in securities which are not readily
marketable, including those which are restricted as to disposition under
securities law ("restricted securities"). At April 30, 1995, all of Trust's
portfolio assets, which are comprised solely of the Trust's direct and indirect
investment in BCF, are illiquid.
BCF's summary financial information as of April 30, 1995 and for the period
then ended is as follows:
ASSETS:
Distressed real estate and related assets $11,870,991
FNMA agency discount note,
maturing 10/19/95 38,839,107
Repurchase agreements 1,564,247
Cash and other assets 323,382
--------------
Total assets 52,597,727
LIABILITIES:
Reverse repurchase agreements 34,000,000
Other liabilities 1,098,159
-------------
Total liabilities 35,098,159
PARTNERS' CAPITAL $17,499,568
INCOME:
Interest and amortization $ 37,297
--------------
EXPENSES:
Compensation 363,000
Occupancy and office 77,000
Other 285,982
--------------
Total expenses 725,982
--------------
NET INCOME (LOSS) $ (688,685)
==============
Note 5. Reverse Repurchase Agreements and Dollar Rolls
Reverse Repurchase Agreements: The Trust may enter into reverse repurchase
agreements with qualified, third party broker-dealers as determined by and under
the direction of the Trust's Board of Directors. Interest on the value of
reverse repurchase agreements issued and outstanding is based upon competitive
market rates at the time of issuance. At the time the Trust enters into a
reverse repurchase agreement, it establishes and maintains a segregated account
with the lender containing liquid high grade securities having a value not less
than the repurchase price, including accrued interest, of the reverse repurchase
agreement. No reverse repurchase agreements were held during the period ended
April 30, 1995.
10
<PAGE>
Dollar Rolls: The Trust may enter into dollar rolls in which the Trust sells
securities for delivery in the current month and simultaneously contracts to
repurchase substantially similar (same type, coupon and maturity) securities on
a specified future date. During the roll period the Trust forgoes principal and
interest paid on the securities. The Trust is compensated by the interest earned
on the cash proceeds of the initial sale and by the lower repurchase price at
the future date. The Trust had no dollar roll transactions during the period
ended April 30, 1995.
Note 6. Notes
The Trust has issued $202,500 aggregate principal amount of notes (the
"Notes") to the Funds. The Notes pay interest at a per annum rate of 2.50% over
the yield of the one-year constant maturity Treasury, redeemable annually by the
holder and due on dissolution of the issuer.
Note 7. Capital
The Trust has obtained Capital Commitments from the Funds in the form of
subscription agreements to engage in the real estate debt investment activities
described herein. When notified by the Trust, in accordance with the Declaration
of Trust, the Funds shall make capital contributions as are required to fill
their outstanding Capital Commitments. The Trust must give fourteen days advance
notice before contributions are due. As of April 30, 1995, the total outstanding
Capital Commitments from the Funds was $512,692,308. On March 15, 1995, the
Trust made a capital call, received on March 30, 1995, totaling $18,750,000.
Additionally, on April 28, 1995, the Trust made a capital call to the Funds
totaling $1,919,658. This amount was outstanding as of April 30, 1995 and is
recorded net in the capital account of the Trust. On May 15, 1995, the
outstanding capital call was received in cash by the Trust.
On May 24, 1995, the Trust made another capital call, received on June 8,
1995, totaling $10,000,000.
Note 8. Quarterly Data
<TABLE>
<CAPTION>
- -------------------- ---------------- ------------------------ ------------------------ ---------------------- -------------
Net realized and
unrealized
Net Investment gains (losses) on Dividends and Period end
Quarterly Total Income (loss) investments Distributions net asset
Period income (loss) Amount Per Share Amount Per Share Amount Per Share value
------ ------------- ------ --------- ------ --------- ------ --------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
March 29, 1995*
to April 30, 1995 $2,408 ($953,943) ($50.88) ($702,932) ($37.49) - - $911.63
- -------------------- ---------------- ------------------------ ------------------------ ---------------------- -------------
</TABLE>
- ---------------
* Commencement of operations.
11
<PAGE>
Trustees
Laurence D. Fink, Chairman
John C. Deterding
Thomas E. Dobrowski
Donald G. Drapkin
Wesley R. Edens
James Grosfeld
Philip Halpern
Laurence E. Hirsch
Kendrick R. Wilson, III
Officers
Ralph L. Schlosstein, President
Wesley R. Edens, Chief Operating Officer
John R. Herbert, Vice President
Robert I. Kauffman, Vice President
Randal A. Nardone, Vice President
Erik P. Nygaard, Vice President
Henry Gabbay, Treasurer
Susan L. Wagner, Secretary
James Kong, Assistant Treasurer
J. Robert Small, Assistant Secretary
Investment Adviser
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
Administrator, Custodian and Transfer Agent
State Street Bank and Trust Company
Two Heritage Drive
North Quincy, MA 02171
Independent Auditors
Deloitte & Touche LLP
2 World Financial Center
New York, NY 10281-1431
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom
919 Third Avenue
New York, NY 10022
The accompanying financial statements as of April 30, 1995 were not audited and,
accordingly, no opinion is expressed on them.
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of Trust shares.
BlackRock Asset Investors
Two Heritage Drive
North Quincy, MA 02171
