DEF 14A
1
ddef14a.txt
NOTICE & PROXY
Schedule 14A Information
(Rule 14A-101)
Information Required in Proxy Statement
Schedule 14A Information
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934 (Amendment No. )
[X] Filed by the Registrant
[ ] Filed by a Party other than the Registrant
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
[X] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
BlackRock Funds
(Name of Registrant as Specified In Its Charter)
Payment of Filing Fee (check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
----------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
----------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it is determined):
----------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
----------------------------------------------------------------------
(5) Total fee paid:
----------------------------------------------------------------------
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
----------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
----------------------------------------------------------------------
(3) Filing Party:
----------------------------------------------------------------------
(4) Date Filed:
----------------------------------------------------------------------
[LOGO OF BLACKROCK]
BLACKROCK FUNDS
100 Bellevue Parkway
Wilmington, Delaware 19809
April 4, 2001
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
To the Shareholders:
A Special Meeting of Shareholders of the BlackRock Funds (the "Fund")
will be held at the offices of BlackRock Advisors, Inc., 100 Bellevue
Parkway, Wilmington, Delaware 19809 on the 3rd floor, on May 4, 2001, at
10:00 a.m., for the purpose of considering and voting upon:
1. The election of Trustees (Proposal 1).
2. Any other business that may properly come before the meeting.
The close of business on March 20, 2001 has been fixed as the record
date for the determination of shareholders entitled to notice of and to
vote at the Special Meeting of Shareholders.
By Order of the Board of Trustees,
/s/ David R. Wilmerding, Jr.
David R. Wilmerding, Jr.
Chairman of the Board
TO AVOID UNNECESSARY EXPENSE OF FURTHER SOLICITATION, WE URGE YOU to
indicate voting instructions on the enclosed proxy card, date and sign it
and return it promptly in the envelope provided, no matter how large or
small your holdings may be.
Instructions for Signing Proxy Cards
The following general rules for signing proxy cards may be of assistance to
you and avoid the time and expense to the Fund involved in validating your
vote if you fail to sign your proxy card properly.
1. Individual Accounts: Sign your name exactly as it appears in the
registration on the proxy card.
2. Joint Accounts: Either party may sign, but the name of the party signing
should conform exactly to a name shown in the registration.
3. Other Accounts: The capacity of the individual signing the proxy card
should be indicated unless it is reflected in the form of registration. For
example:
Registration
Corporate Accounts Valid Signature
------------------ ---------------
(1) ABC Corp.......................... ABC Corp. (by John Doe, Treasurer)
(2) ABC Corp.......................... John Doe, Treasurer
(3) ABC Corp. c/o John Doe,
Treasurer............................ John Doe
(4) ABC Corp. Profit Sharing Plan..... John Doe, Trustee
Trust Accounts
(1) ABC Trust......................... Jane B. Doe, Trustee
(2) Jane B. Doe, Trustee u/t/d
12/28/78............................. Jane B. Doe
Custodial or Estate Accounts
(1) John B. Smith, Cust.
f/b/o John B. Smith, Jr. UGMA....... John B. Smith
(2) John B. Smith..................... John B. Smith, Jr., Executor
[LOGO OF BLACKROCK]
BLACKROCK FUNDS
100 Bellevue Parkway
Wilmington, Delaware 19809
PROXY STATEMENT
This proxy statement is furnished in connection with a solicitation by the
Board of Trustees of the BlackRock Funds (the "Fund") of proxies to be used at
the Special Meeting of Shareholders of the Fund (the "Meeting") to be held at
the offices of BlackRock Advisors, Inc., 100 Bellevue Parkway, Wilmington,
Delaware 19809, on the 3rd floor, on May 4, 2001, at 10:00 a.m. (and at any
adjournment or adjournments thereof) for the purpose set forth in the
accompanying Notice of Special Meeting of Shareholders. This proxy statement
and the accompanying form of proxy are first being mailed to shareholders on
or about April 4, 2001. The Fund's Annual Reports containing financial
statements for the fiscal year ended September 30, 2000 are available free of
charge by contacting PFPC Inc., 400 Bellevue Parkway, Wilmington, DE 19899, or
by calling (800) 441-7762 toll-free. Shareholders who execute proxies retain
the right to revoke them in person at the Meeting or by written notice
received by the Secretary of the Fund at any time before they are voted.
Unrevoked proxies will be voted in accordance with the specifications thereon
and, unless specified to the contrary, will be voted FOR the Election of
Trustees. The close of business on March 20, 2001 has been fixed as the record
date for the determination of shareholders entitled to notice of and to vote
at the Meeting. Each shareholder is entitled to one vote for each full share
of a portfolio of the Fund (a "Share") and an appropriate fraction of a vote
for each fractional Share held.
In the event that a quorum is not present at the Meeting, or in the event
that a quorum is present but sufficient votes to approve the proposal are not
received, the persons named as proxies may propose one or more adjournments of
the Meeting to permit further solicitation of proxies. Any such adjournment
will require the affirmative vote of a majority of those Shares represented at
the Meeting in person or by proxy. The persons named as proxies will vote
those proxies which they are entitled to vote FOR or AGAINST any such proposal
at their discretion. A shareholder vote may be taken on the proposal in this
proxy statement prior to any such adjournment if sufficient votes have been
received for approval. Under the Declaration of Trust of the Fund, a quorum is
constituted by the presence in person or by proxy of the holders of record of
a majority of the outstanding Shares of the Fund entitled to vote at the
Meeting.
BlackRock Advisors, Inc. ("BlackRock"), whose principal business address is
100 Bellevue Parkway, Wilmington, Delaware 19809, or an affiliate of
BlackRock, is the investment adviser of each of the portfolios of the Fund.
PROPOSAL 1: ELECTION OF TRUSTEES
At the Meeting, shareholders will be asked to consider the election of seven
Trustees, which constitutes the entire Board of Trustees of the Fund. Each
elected Trustee will hold office for an indefinite term until the earlier of
(1) the next meeting of shareholders at which Trustees are elected and until
his or her successor is elected and qualified, and (2) until a Trustee resigns
or until his or her term as a Trustee is terminated in accordance with the
Fund's Declaration of Trust. Normally, there will be no meetings of
shareholders for the purpose of electing Trustees except as required by the
Investment Company Act of 1940, as amended (the "1940 Act"). See "Voting
Information--Annual Meetings" below. The Trustees may, as permitted by the
1940 Act, appoint additional Trustees without shareholder approval.
All Shares represented by valid proxies will be voted in the election of
Trustees for each nominee named below, unless authority to vote for a
particular nominee is withheld. The seven nominees who receive the highest
1
number of votes cast at the Meeting will be elected as Trustees. Cumulative
voting is not permitted. Each nominee has consented to being named in this
proxy statement and to serve if elected. If a nominee withdraws from the
election or is otherwise unable to serve, the named proxies will vote for the
election of such substitute nominee as the Board of Trustees may recommend,
unless the Board decides to reduce the number of Trustees serving on the
Board.
Messrs. Albertini, Clark, Fink, Hernandez and Wilmerding are incumbent
Trustees. Messrs. Albertini, Clark, Hernandez and Wilmerding were last elected
at a shareholder meeting held on January 4, 1996. In addition, the Fund's
Nominating Committee has nominated Mr. Eizenstat and Dr. Rodin as new Trustees
to be voted on by the shareholders.
The following table provides information concerning each nominee for
election as a Trustee:
Business Experience and
Name of Nominee and Trustee Principal Occupations During
Position With Fund Since Age the Past Five Years
------------------------ ------- --- ---------------------------------------------
William O. Albertini 1996 57 Retired; Executive Vice President and Chief
Trustee and Chairman of Financial Officer from August 1997-April
the Audit Committee 1999, Bell Atlantic Global Wireless (global
wireless communications); Executive Vice
President, Chief Financial Officer and
Director from February 1995-August 1997, Vice
President and Chief Financial Officer from
January 1991-February 1995, Bell Atlantic
Corporation (a diversified telecommunications
company); Director, American Water Works,
Inc. (water utility) since May 1990;
Director, Triumph Group, Inc. (aviation
manufacturing, repair and maintenance
services) since May 1999; Director, Midwest
Independent Transmission Service Operator,
Inc. (electrical transmission operator) since
December 1998; Trustee, The Carl E. & Emily
I. Weller Foundation since October 1991.
Raymond J. Clark* 1996 66 Treasurer Emeritus of Princeton University
Trustee since 2001; Treasurer of Princeton University
1987-2001; Trustee, The Compass Capital Group
of Funds from 1987 to 1996; Trustee, Chemical
Bank, New Jersey Advisory Board from 1994
until 1995; Chairman of Board of Trustees,
American Red Cross--Central N.J. Chapter;
Trustee, Medical Center of Princeton; and
Trustee, United Way--Greater Mercer County
from 1996-1997.
Stuart E. Eizenstat N/A 58 Partner, Covington & Burling (law firm)
(2001-Present); Deputy Secretary of the
Treasury (1999-2001), Under Secretary of
State for Economic, Business and Agricultural
Affairs (1997-1999), Under Secretary of
Commerce for International Trade (1996-1997),
Special Representative of the President and
Secretary of State on Holocaust Issues (1995-
2001), and U.S. Ambassador to the European
Union, Department of State (1993-1996),
Government of the United States of America;
Partner, Vice Chairman and Chairman of the
Washington Office, Powell, Goldstein, Frazer
& Murphy (1981-1993); Director, Overseas
Private Investment Corporation (1996-2001).
--------
* "Interested person" as defined in the 1940 Act.
2
Business Experience and
Name of Nominee and Trustee Principal Occupations During
Position With Fund Since Age the Past Five Years
------------------------ ------- --- ---------------------------------------------
Laurence D. Fink* 2000 48 Director, Chairman and Chief Executive
Trustee, President Officer of BlackRock, Inc. since its
and Treasurer formation in 1998 and of BlackRock, Inc.'s
predecessor entities since 1988; Chairman of
the Management Committee and Co-chair of the
Investment Strategy Group of BlackRock, Inc.;
formerly, Managing Director of the First
Boston Corporation, Member of its Management
Committee, Co-head of its Taxable Fixed
Income Division and Head of its Mortgage and
Real Estate Products Group; currently,
Chairman of the Board and Director of
BlackRock's closed-end funds; Chairman of the
Board and Director of Anthracite Capital,
Inc.; Director of BlackRock's offshore funds
and alternative investment vehicles and
Chairman of the Board of Nomura BlackRock
Asset Management Co., Ltd.; Vice Chairman of
the Board of Trustees of Mount Sinai-New York
University Medical Center and Health System
and a Member of the Board of Phoenix House.
Robert M. Hernandez 1996 56 Director since 1991, Vice Chairman and Chief
Trustee, Vice Chairman Financial Officer since 1994, Executive Vice
of the Board of President--Accounting and Finance and Chief
Trustees and Chairman Financial Officer from 1991 to 1994, USX
of the Nominating Corporation (a diversified company
Committee principally engaged in energy and steel
businesses); Director and Chairman of the
Executive Committee, ACE Limited (insurance
company); Director and Chairman of the Board,
RTI International Metals, Inc.; Chairman,
Director and Member of the Investment
Committee of United States Steel and Carnegie
Pension Fund.
Dr. Judith Rodin N/A 56 President, Professor of Psychology (School of
Arts and Sciences), and Professor of Medicine
(School of Medicine), University of
Pennsylvania (1994-Present); Provost (1992-
1994), Dean of Graduate School of Arts and
Sciences (1991-1992), and Chair of Psychology
Department (1989-1991), Yale University;
Director, Aetna Corporation; Director, AMR
Corporation; Director, Electronic Data
Systems Corporation.
David R. Wilmerding, Jr. 1996 65 Chairman, Wilmerding & Associates, Inc.
Chairman of the Board (investment counsel) since 1989; Director,
Beaver Management Corporation (land
management corporation); Managing General
Partner, Chestnut Street Exchange Fund;
Director Emeritus, The Mutual Fire, Marine
and Inland Insurance Company.
--------
* "Interested person" as defined in the 1940 Act.
Responsibilities of the Board of Trustees
The Board of Trustees is responsible for ensuring that the Fund is managed
in the best interests of its shareholders. The Trustees oversee the Fund's
business by, among other things, meeting with the Fund's management and
evaluating the performance of the Fund's service providers including BlackRock
and its affiliates, the custodian, the transfer agent and the co-
administrators. As part of this process, the Trustees consult with the Fund's
independent accountants and with their own separate independent counsel.
3
The Board of Trustees has four regularly scheduled meetings each year and
additional meetings are scheduled as needed. In addition, the Board has an
Audit Committee and Nominating Committee, which meet periodically during the
year and whose responsibilities are described below. The Fund has no
compensation committee.
The Trustees regularly review the Fund's financial statements, performance
and market price as well as the quality of the services being provided to the
Fund. As part of this process, the Trustees review the Fund's fees and
expenses to determine if they are reasonable and competitive in light of the
services being received and while also ensuring that the Fund continues to
have access to high quality services in the future. Based on these reviews,
the Trustees periodically make suggestions to the Fund's management and
monitor to ensure that responsive action is taken. The Trustees also monitor
potential conflicts of interest among the Fund, BlackRock and its affiliates
and other funds and clients managed by BlackRock to ensure that the Fund is
managed in a manner which is in the best interests of the Fund's shareholders.
At February 28, 2001, Trustees and officers of the Fund as a group owned
beneficially less than 1% of the outstanding Shares of the Fund.
The Fund's Audit Committee is composed entirely of Trustees who are not
"interested persons" of the Fund or of BlackRock or its affiliates within the
meaning of the 1940 Act. Currently, Messrs. Albertini, Hernandez and
Wilmerding are members of the Audit Committee. The Audit Committee convened
twice during the fiscal year ended September 30, 2000. The principal functions
of the Audit Committee are to recommend to the Board the appointment of the
Fund's independent accountants, to review with the independent accountants the
scope, performance and anticipated cost of their audit and to receive and
consider a report from the independent accountants concerning their conduct of
the audit, including the form of the opinion proposed to be rendered and any
comments or recommendations the independent accountants might want to make in
that connection. The Fund has adopted an Audit Committee Charter.
The Fund's Nominating Committee, whose principal function is to recommend
nominees for election as Trustees of the Fund, is composed of Messrs.
Albertini, Hernandez and Wilmerding. While the Nominating Committee held no
meetings during the fiscal year ended September 30, 2000, it has met a number
of times since to discuss and recommend nominees for election as Trustees of
the Fund.
During the fiscal year ended September 30, 2000, the Board of Trustees met
five times. Each Trustee attended at least 75% of the meetings of the Board or
the committee of the Board on which he served.
Under the federal securities laws, the Fund is required to provide to
shareholders in connection with the Meeting information regarding compensation
paid to Trustees by the Fund as well as by the various other U.S. registered
investment companies advised by BlackRock or an affiliate of BlackRock during
the Fund's prior fiscal year. The following table provides information
concerning the approximate compensation paid during the fiscal year ended
September 30, 2000 to each Trustee of the Fund. No remuneration was paid
during the fiscal year ended September 30, 2000 by the Fund to Mr. Fink, who
was elected to the Board of Trustees after the Fund's fiscal year end, and
who, as an officer or employee of BlackRock, Inc., an affiliate of BlackRock,
is not entitled to remuneration from the Fund. The Fund does not provide any
pension or retirement benefits to Trustees.
Total
Aggregate Compensation
Compensation from Fund and
Name of Person from Fund Fund Complex/1/
-------------- ------------ ---------------
David R. Wilmerding, Jr...................... $84,600 $100,600(3)/2/
William O. Albertini......................... $74,600 $ 74,600(1)/2/
Raymond J. Clark............................. $74,600 $ 74,600(1)/2/
Robert M. Hernandez.......................... $74,600 $ 74,600(1)/2/
--------
/1/A Fund Complex means two or more investment companies that hold themselves
out to investors as related companies for purposes of investment and
investment services, or have a common investment adviser or have an
investment adviser that is an affiliated person of the investment adviser of
any of the other investment companies.
/2/Total number of investment company boards the Trustee served on within the
Fund Complex.
4
The executive officers of the Fund are elected and appointed by the Trustees
and hold office until they resign, are removed or are otherwise disqualified
to serve. In addition to Mr. Fink, the current executive officers of the Fund
are:
Position with Officer Business Experience
Name the Fund Age Since During Past Five Years
----------------- ------------------- --- ------- --------------------------------------
Anne Ackerley Assistant Secretary 39 2000 Managing Director, BlackRock Advisors,
Inc. since May 2000; First Vice
President and Chief Operating Officer,
Mergers and Acquisitions Group (1997-
2000), First Vice President and Chief
Operating Officer, Public Finance
Group (1995-1997), and First Vice
President, Emerging Markets Fixed
Income Research (1994-1995), Merrill
Lynch & Co.
Ellen L. Corson Assistant Treasurer 36 1998 Vice President and Director of Mutual
Fund Accounting and Administration,
PFPC Inc. since November 1997;
Assistant Vice President, PFPC Inc.
from March 1997 to November 1997;
Senior Accounting Officer, PFPC Inc.
from March 1993 to March 1997.
Brian P. Kindelan Secretary 41 1997 Director and Senior Counsel (since
January 2001), and Vice President and
Senior Counsel (1998-2000), BlackRock
Advisors, Inc.; Senior Counsel, PNC
Bank Corp. from May 1995 to April
1998; Associate, Stradley, Ronon,
Stevens & Young, LLP from March 1990
to May 1995.
Required Vote
Trustees are elected by a plurality of the votes cast by the holders of
Shares of the Fund present in person or represented by proxy at a meeting with
a quorum present. For purposes of the election of Trustees, abstentions and
broker non-votes will not be considered votes cast, and do not affect the
plurality vote required for Trustees.
THE TRUSTEES, INCLUDING THE "NON-INTERESTED" TRUSTEES, UNANIMOUSLY RECOMMEND
THAT THE SHAREHOLDERS VOTE "FOR" EACH OF THE NOMINEES FOR TRUSTEE.
VOTING INFORMATION
RECORD DATE. Only shareholders of record at the close of business on March
20, 2001 will be entitled to vote at the Meeting. On that date the outstanding
Shares of each class were as follows:
Number of
Shares
Portfolio and Share Class Outstanding
------------------------------------------------------------- ---------------
(I)Equity Portfolios
Large Cap Value
Institutional Shares...................................... 115,464,898.751
Service Shares............................................ 22,214,469.368
Series A Investor Shares.................................. 3,923,118.667
Series B Investor Shares.................................. 2,253,123.920
Series C Investor Shares.................................. 724,634.153
Large Cap Growth
Institutional Shares...................................... 62,668,721.864
Service Shares............................................ 16,563,469.904
Series A Investor Shares.................................. 4,442,622.195
Series B Investor Shares.................................. 3,426,016.554
Series C Investor Shares.................................. 644,363.496
Mid-Cap Value
Institutional Shares...................................... 19,009,388.812
Service Shares............................................ 2,502,825.756
Series A Investor Shares.................................. 373,059.434
Series B Investor Shares.................................. 593,140.067
Series C Investor Shares.................................. 223,001.424
5
Number of
Shares
Portfolio and Share Class Outstanding
-------------------------------------------------------------- --------------
Mid-Cap Growth
Institutional Shares....................................... 40,685,582.614
Service Shares............................................. 4,798,021.279
Series A Investor Shares................................... 5,293,556.156
Series B Investor Shares................................... 7,850,566.433
Series C Investor Shares................................... 3,483,526.574
Small Cap Value
Institutional Shares....................................... 26,120,014.209
Service Shares............................................. 3,083,873.746
Series A Investor Shares................................... 1,638,022.693
Series B Investor Shares................................... 953,577.364
Series C Investor Shares................................... 378,973.182
Small Cap Growth
Institutional Shares....................................... 81,669,442.776
Service Shares............................................. 13,124,977.151
Series A Investor Shares................................... 7,970,500.190
Series B Investor Shares................................... 3,951,718.730
Series C Investor Shares................................... 2,003,785.700
Global Science & Technology
Institutional Shares....................................... 1,918,041.346
Service Shares............................................. 4,318.435
Series A Investor Shares................................... 3,832,137.751
Series B Investor Shares................................... 5,683,472.666
Series C Investor Shares................................... 1,587,595.634
European Equity
Institutional Shares....................................... 877,966.102
Service Shares............................................. 10.000
Series A Investor Shares................................... 138,187.897
Series B Investor Shares................................... 300,912.341
Series C Investor Shares................................... 105,767.145
Asia Pacific Equity
Institutional Shares....................................... 322,009.826
Service Shares............................................. 10.248
Series A Investor Shares................................... 6,022.844
Series B Investor Shares................................... 1,478.576
Series C Investor Shares................................... 264.716
International Equity
Institutional Shares....................................... 54,643,947.435
Service Shares............................................. 13,171,302.150
Series A Investor Shares................................... 6,101,772.917
Series B Investor Shares................................... 641,030.899
Series C Investor Shares................................... 161,834.712
International Emerging Markets
Institutional Shares....................................... 7,873,086.684
Service Shares............................................. 289,012.303
Series A Investor Shares................................... 603,203.843
Series B Investor Shares................................... 166,031.097
Series C Investor Shares................................... 50,153.366
International Small Cap
Institutional Shares....................................... 5,813,385.314
Service Shares............................................. 160,580.162
Series A Investor Shares................................... 1,981,547.365
Series B Investor Shares................................... 2,183,118.752
Series C Investor Shares................................... 1,676,509.326
Select Equity
Institutional Shares....................................... 76,124,261.714
Service Shares............................................. 13,189,282.550
Series A Investor Shares................................... 3,818,881.321
Series B Investor Shares................................... 4,246,556.879
Series C Investor Shares................................... 467,043.103
Index Equity
Institutional Shares....................................... 27,029,404.492
Service Shares............................................. 14,514,121.834
Series A Investor Shares................................... 3,687,896.032
Series B Investor Shares................................... 13,494,753.439
Series C Investor Shares................................... 20,128,044.407
Balanced Portfolio
Institutional Shares....................................... 19,763,194.017
Service Shares............................................. 11,151,683.694
Series A Investor Shares................................... 8,523,867.552
Series B Investor Shares................................... 5,768,733.570
Series C Investor Shares................................... 962,908.907
6
Number of
Shares
Portfolio and Share Class Outstanding
------------------------------------------------------------- ---------------
Micro-Cap Equity
Institutional Shares...................................... 2,422,490.307
Service Shares............................................ 62,755.975
Series A Investor Shares.................................. 3,560,270.150
Series B Investor Shares.................................. 5,474,570.540
Series C Investor Shares.................................. 2,917,950.293
(II)Bond Portfolios
Low Duration Bond
BlackRock Shares.......................................... 17,663,363.078
Institutional Shares...................................... 12,493,453.639
Service Shares............................................ 2,463,223.334
Series A Investor Shares.................................. 406,939.464
Series B Investor Shares.................................. 1,193,707.270
Series C Investor Shares.................................. 230,501.156
Intermediate Government Bond
Institutional Shares...................................... 30,315,284.969
Service Shares............................................ 3,041,283.523
Series A Investor Shares.................................. 965,011.176
Series B Investor Shares.................................. 186,958.006
Series C Investor Shares.................................. 61,238.421
Intermediate Bond
BlackRock Shares.......................................... 25,531,859.560
Institutional Shares...................................... 56,015,468.530
Service Shares............................................ 3,280,609.872
Series A Investor Shares.................................. 512,091.927
Series B Investor Shares.................................. 143,184.072
Series C Investor Shares.................................. 62,505.773
Government Income
Series A Investor Shares.................................. 795,321.265
Series B Investor Shares.................................. 2,497,519.387
Series C Investor Shares.................................. 153,521.806
Core Bond Total Return
BlackRock Shares.......................................... 42,296,157.267
Institutional Shares...................................... 112,102,033.264
Service Shares............................................ 8,318,094.094
Series A Investor Shares.................................. 1,363,210.628
Series B Investor Shares.................................. 1,783,962.214
Series C Investor Shares.................................. 1,329,903.208
GNMA Portfolio
Institutional Shares...................................... 9,704,624.931
Service Shares............................................ 16,726.516
Series A Investor Shares.................................. 242,693.570
Series B Investor Shares.................................. 100,797.058
Series C Investor Shares.................................. 22,214.928
Managed Income
Institutional Shares...................................... 106,731,194.532
Service Shares............................................ 28,719,663.889
Series A Investor Shares.................................. 1,739,445.231
Series B Investor Shares.................................. 595,912.234
Series C Investor Shares.................................. 31,898.020
International Bond
Institutional Shares...................................... 7,040,782.986
Service Shares............................................ 400,380.739
Series A Investor Shares.................................. 939,211.974
Series B Investor Shares.................................. 386,205.384
Series C Investor Shares.................................. 286,866.660
High Yield Bond
BlackRock Shares.......................................... 12.923
Institutional Shares...................................... 9,584,817.163
Service Shares............................................ 5,980.794
Series A Investor Shares.................................. 943,322.198
Series B Investor Shares.................................. 5,793,797.362
Series C Investor Shares.................................. 1,110,269.094
Tax-Free Income
Institutional Shares...................................... 29,538,606.010
Service Shares............................................ 478,061.248
Series A Investor Shares.................................. 821,142.981
Series B Investor Shares.................................. 328,696.708
Series C Investor Shares.................................. 196,830.776
Delaware Tax-Free Income
Institutional Shares...................................... 8,851,488.881
Service Shares............................................ 11.169
7
Number of
Shares
Portfolio and Share Class Outstanding
----------------------------------------------------------- -----------------
Series A Investor Shares................................ 369,501.697
Series B Investor Shares................................ 224,425.874
Series C Investor Shares................................ 43,242.382
Ohio Tax-Free Income
Institutional Shares.................................... 8,629,552.596
Service Shares.......................................... 3,739.477
Series A Investor Shares................................ 335,402.766
Series B Investor Shares................................ 232,721.690
Series C Investor Shares................................ 43,836.031
Kentucky Tax-Free Income
Institutional Shares.................................... 15,549,547.380
Service Shares.......................................... 9,171.073
Series A Investor Shares................................ 200,849.244
Series B Investor Shares................................ 42,612.251
Series C Investor Shares................................ 10,152.826
New Jersey Tax-Free Income
Institutional Shares.................................... 11,413,007.589
Service Shares.......................................... 1,529,209.748
Series A Investor Shares................................ 208,219.006
Series B Investor Shares................................ 217,162.206
Series C Investor Shares................................ 457.256
Pennsylvania Tax-Free Income
Institutional Shares.................................... 83,398,154.201
Service Shares.......................................... 1,039,037.432
Series A Investor Shares................................ 3,040,599.636
Series B Investor Shares................................ 2,136,723.438
Series C Investor Shares................................ 49,893.951
(III)Money Market Portfolios
Money Market
Hilliard Lyons Shares................................... 174,083,653.140
Institutional Shares.................................... 2,597,561,209.980
Service Shares.......................................... 752,036,388.100
Series A Investor Shares................................ 522,473,904.920
Series B Investor Shares................................ 12,297,414.390
Series C Investor Shares................................ 6,668,673.870
U.S. Treasury Money Market
Institutional Shares.................................... 369,512,360.000
Service Shares.......................................... 400,170,624.830
Series A Investor Shares................................ 34,169,285.771
Municipal Money Market
Hilliard Lyons Shares................................... 108,971,280.500
Institutional Shares.................................... 448,291,823.810
Service Shares.......................................... 142,312,362.120
Series A Investor Shares................................ 8,404,844.460
New Jersey Municipal Money Market
Institutional Shares.................................... 99,696,299.300
Service Shares.......................................... 55,519,828.760
Series A Investor Shares................................ 12,349,773.980
North Carolina Municipal Money Market
Institutional Shares.................................... 97,151,421.820
Service Shares.......................................... 706,814.530
Series A Investor Shares................................ 371,679.970
Series B Investor Shares................................ 5,600.410
Ohio Municipal Money Market
Institutional Shares.................................... 69,458,944.100
Service Shares.......................................... 7,186,950.230
Series A Investor Shares................................ 55,531,797.950
Pennsylvania Municipal Money Market
Institutional Shares.................................... 508,099,123.460
Service Shares.......................................... 64,715,910.000
Series A Investor Shares................................ 88,118,325.310
Virginia Municipal Money Market
Institutional Shares.................................... 62,373,356.210
Service Shares.......................................... 648,358.820
Series A Investor Shares................................ 1,561,252.080
(IV)Other Portfolios
BlackRock Strategic Portfolio I Shares.................. 3,355,441.016
Multi-Sector Mortgage Securities Portfolio IV Shares.... 9,138,255.906
8
QUORUM. With respect to the election of Trustees, a quorum is constituted by
the presence in person or by proxy of the holders of more than 50% of the
outstanding Shares of the Fund's portfolios on an aggregate basis. For purposes
of determining the presence of a quorum for transacting business at the
Meeting, abstentions and broker "non-votes" (that is, proxies from brokers or
nominees indicating that such persons have not received instructions from the
beneficial owners or other persons entitled to vote Shares on a particular
matter with respect to which the brokers or nominees do not have discretionary
power) will be treated as Shares that are present at the Meeting but which have
not been voted.
In the event that a quorum is not present at the Meeting, or in the event
that a quorum is present at the Meeting but sufficient votes to approve each of
the nominees for Trustee are not received, the persons named as proxies, or
their substitutes, may propose one or more adjournments of the Meeting to
permit the further solicitation of proxies. Any such adjournment will require
the affirmative vote of a majority of the Shares represented at the Meeting in
person or by proxy. If a quorum is present, the persons named as proxies will
vote those proxies which they are entitled to vote FOR the proposal in favor of
such adjournments, and will vote those proxies required to be voted AGAINST
such proposal against any adjournment.
ANNUAL MEETINGS. The Fund does not intend to hold annual meetings of
shareholders for the election of Board members and other business unless and
until such time as required by the 1940 Act, at which time the Board will call
a shareholder meeting for the election of Board members. Under certain
circumstances, however, shareholders have the right to call a meeting of
shareholders and such meetings will be called when requested by the holders of
record of 10% or more of the outstanding Shares of the Fund. To the extent
required by law, the Fund will assist in shareholder communications in such
matters.
OTHER SHAREHOLDER INFORMATION. At the record date for the Meeting, affiliates
of The PNC Financial Services Group, Inc., or their nominees, and affiliates of
JJB Hilliard, WL Lyons, Inc., or their nominees, held of record 73.64% and
13.53%, respectively, of the outstanding Shares of the Fund as agent or
custodian for their customers. At the record date the name, address and Share
ownership of each person who may have possessed sole or shared voting or
investment power with respect to more than 5% of the outstanding Shares of the
Fund's respective Share classes and portfolios, if applicable, were as follows:
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
----------------------- ----------------------------- -------- ------------- ---------- ------------
Multi-Sector Mortgage Southlake & Co. 7M09 Shares 9,088,186.566 99.452 99.452
Securities Portfolio IV State Street Corp.
Glob. Inv. Mgt. Serv.
Attn: Mike Connors/GMIS
One Enterprise Dr.
North Quincy, MA 02171
BlackRock Strategic Alltel Fixed Income Portfolio Shares 1,075,113.988 32.040 32.040
Portfolio I (ATC)/1/
Federated Dept. Stores/1/ Shares 782,686.604 23.325 23.325
Ball Corporation Salaried Shares 355,433.877 10.592 10.592
Pension Plan/1/
Ametek Inc./1/ Shares 241,411.332 7.194 7.194
Abington Memorial Hospital/1/ Shares 217,158.642 6.471 6.471
Michigan Catholic Shares 176,848.553 5.270 5.270
Conference/1/
Asia Pacific Equity J J B Hilliard W L Lyons Inc. Series A 1,548.079 31.035
Bob M. Dobibins, A/C 2887- Investor
6955/2/
Thomas S Bain Series A 768.621 15.409
165 E 32nd St., Apt. 11-B Investor
New York, NY 10016
Salvatore and Barbara Capizzi Series A 662.836 13.288
JT Ten Investor
28 Longwood Ave.
Chatham, NJ 07928
See notes at page 28.
9
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
--------------- --------------------------------------- ------------- ------------ ---------- ------------
J J B Hilliard W L Lyons Inc. Series A 512.414 10.272
William J. Bradley Investor
Donna J. Bradley JTWROS
A/C 1329-4575/2/
J J B Hilliard W L Lyons Inc. Series A 475.624 9.535
Hilliard Lyons Cust. For Investor
Gwendolyn A. Foessett IRA
A/C 3357-6734/2/
Raymond James Assoc. Inc. CSDN Series B 621.118 42.007
Ove Nielsen Ira Investor
1234 Kings Way Ln
Tarpon Springs, FL 34689
J J B Hilliard W L Lyons Inc. Series B 358.680 24.258
Matt Lacey Investor
A/C 4954-8062/2/
Merrill Lynch Pierce Fenner & Smith Series B 287.687 19.457
Inc. Investor
Financial Data Services Sec 97KP2/3/
J J B Hilliard W L Lyons Inc. Series B 100.569 6.801
William F. Kozma Investor
A/C 5125-7930/2/
Jessica Ng Series B 100.274 6.781
And Can HVI Chen Investor
JT TEN WROS
6627 Pembroke Rd.
Pembrose Pines, FL 33023
J J B Hilliard W L Lyons Inc. Series C 204.960 77.426
Wai Lun Leung Investor
A/C 2527-6891/2/
Khader Mohammed Series C 49.508 18.702
705-L Parkview Drive Investor
Phoenixville, PA 19460
Blackrock Funding Inc. Institutional 300,000.000 93.164 91.254
345 Park Avenue, 14th Floor
New York, NY 10154
PNC Bank Institutional 21,999.579 6.831 6.691
Saxon & Co (PNC Inst)/4/
European Equity Merrill Lynch Pierce Fenner & Smith Inc Series A 22,925.958 16.402
Financial Data Services Sec 97KP2/3/ Investor
J J B Hilliard W L Lyons Inc Series A 10,670.870 16.402
Mary S. Holder A/C 4740-4466/2/ Investor
Donaldson Lufkin Jenrette5 Series A 8,314.856 5.948
Investor
Merrill Lynch Pierce Fenner & Smith Inc Series B 140,431.211 46.506 9.843
Financial Data Services Sec 97KP2/3/ Investor
Merrill Lynch Pierce Fenner & Smith Inc Series C 81,987.965 77.517 5.747
Financial Data Services Sec 97KP2/3/ Investor
Blackrock Funding Inc. Institutional 300,000.000 34.127 21.029
345 Park Avenue, 14th Floor
New York, NY 10154
See notes at page 28.
10
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
---------------- --------------------------- ------------- ------------- ---------- ------------
PNC Bank Institutional 215,856.711 24.555 15.131
Saxon & Co (PNC Inst)/4/
James & Nancy Grosfeld Institutional 202,569.170 23.043 14.199
Suite 3000
20500 Civic Center Drive
Southfield, MI 48076
Merrill Lynch Pierce Fenner Institutional 138,864.316 15.796 9.734
& Smith Inc
Financial Data Services Sec
97KL1/3/
High Yield Bond PaineWebber for the Benefit Series A 101,462.667 10.853
of James Calano Investor
200 Boulder View Lane
Boulder, CO 80304-0491
Merrill Lynch Pierce Fenner Series A 82,556.655 8.831
& Smith Inc Investor
Financial Data Services Sec
97KF3/3/
Merrill Lynch Pierce Fenner Series B 755,294.150 13.030
& Smith Inc Investor
Financial Data Services Sec
97KF3/3/
Merrill Lynch Pierce Fenner Series C 404,354.481 36.548
& Smith Inc Investor
Financial Data Services Sec
97KF3/3/
PNC Bank Institutional 9,288,360.505 96.907 53.294
Saxon & Co (PNC Inst)/4/
PNC Bank Service 4,802,000 80.284
Saxon & Co (PNC Inst)/4/
J J B Hilliard W L Lyons Service 1,166.340 19.500
Inc
Anatol A. Prasicky Ira
A/C 6811-2666/2/
Global Science & Merrill Lynch Pierce Fenner Series A 422,237.414 11.017
Technology & Smith Inc Investor
Financial Data Services Sec
97KP2/3/
Merrill Lynch Pierce Fenner Series B 1,048,135.659 18.428 8.044
& Smith Inc Investor
Financial Data Services Sec
97KP2/3/
Merrill Lynch Pierce Fenner Series C 690,611.960 43.524 5.300
& Smith Inc Investor
Financial Data Services Sec
97KP2/3/
PNC Bank Institutional 1,456,762.306 75.935 11.180
Saxon & Co (PNC Inst)/4/
Merrill Lynch Pierce Fenner Institutional 339,657.507 17.705
& Smith Inc
Financial Data Services Sec
97KP2/3/
LPL Financial Services Service 1,755.926 39.154
A/C 5669-3211
9785 Towne Centre Drive
San Diego, CA 92121-1968
BNY Clearing Services LLC Service 879.507 19.611
A/C 2761-6259
Harold E. Douglas, Jr.
111 East Kilbourn Avenue
Milwaukee, WI 53202
J J B Hilliard W L Lyons Service 526.509 11.740
Inc
PNC Bank Cust for Lawrence
Karino III
A/C 4618-4795/2/
PNC Bank Service 445.809 9.940
Saxon & Co (PNC Service)/4/
See notes at page 28.
11
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
------------------- --------------------------- ------------- ----------------- ---------- ------------
J J B Hilliard W L Lyons Service 234.319 5.224
Inc
Antoinette Lisa A/C 5537-
3842/2/
Money Market Hilliard Lyons/6/ Series A 466,324,199.520 82.682 11.335
Investor
Eve Winograd Series C 537,044.030 6.913
4 Sandburg Ct Investor
Teaneck, NJ 07666-6467
Prudential Securities Inc. Series C 508,746.770 6.549
FBO Investor
Trout Trading FD Pledged
Coll
A/C for Credit Lyonnais
Washington Mall One
Church St., 4th Floor
Hamilton HM11 Bermuda
Roni Greiff Nelson Series C 398,572.720 5.130
IRA Rollover Investor
36 Allen St.
New Hyde Park, NY 11040
PNC Bank, 35 Institutional 2,503,843,646.090 96.236 60.863
Institutional/4/
PNC Bank, 35 Service/4/ Service 575,226,760.550 76.318 13.982
Hilliard Lyons/6/ Service 63,167,725.200 8.380
PNC Bank/Saxon & Co Service 52,238,209.890 6.930
FBO Omnibus Accounts/4/
U.S. Treasury Money Hilliard Lyons/6/ Series A 31,799,228.700 93.063
Market Investor
PNC Bank, 35 Institutional 367,943,235.590 99.575 45.772
Institutional/4/
Chase Bank of Texas Service 193,589,579.000 48.376 24.082
Obie & Co., Attn: STIF Unit
Mail Code 18HCB340
P.O. Box 2558
Houston, TX 77252-2558
PNC Bank, 35 Service/4/ Service 156,444,787.570 39.094 19.461
PNC Bank Service 39,041,278.990 9.756
Sweep, Treasury Mgmt/Inv.
Services
PNC Firstside Ctr P7-PFSC-
03-D
500 First Avenue
Pittsburgh, PA 15265
Large Cap Value Merrill Lynch Pierce Fenner Series A 350,425.588 8.989
& Smith Inc Investor
Financial Data Services Sec
97KK3/3/
Merrill Lynch Pierce Fenner Series B 446,802.915 19.781
& Smith Inc Investor
Financial Data Services Sec
97AP6/3/
Merrill Lynch Pierce Fenner Series C 466,458.001 67.054
& Smith Inc Investor
Sec 97KN6/3/
PNC Bank Institutional 96,549,491.372 83.597 66.788
Saxon & Co (PNC Inst)/4/
Merrill Lynch Pierce Fenner Institutional 17,010,828.644 14.728 11.767
Financial Data Services Sec
97L08/3/
See notes at page 28.
12
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
--------------- --------------------------- ------------- --------------- ---------- ------------
PNC Bank Service 16,187,455.127 72.868 11.197
Saxon & Co (PNC Serv)/4/
PFPC/7/ Service 2,656,669.245 11.959
Intermediate Merrill Lynch Pierce Fenner Series A 120,722.528 10.613
Government Bond & Smith Inc Investor
Financial Data Services Sec
97KL3/3/
Merrill Lynch Pierce Fenner Series B 90,695.346 48.441
& Smith Inc Investor
Financial Data Services Sec
97MK8/3/
Donaldson Lufkin Series B 13,644.544 7.287
Jenrette/5/ Investor
Merrill Lynch Pierce Fenner Series C 40,329.401 47.982
& Smith Inc Investor
Financial Data Services Sec
97KP6/3/
PaineWebber for the Benefit Series C 22,812.074 27.140
of Haim Weissman Investor
Atara Weissman JTWROS
6 Hilltop Pl.
Monsey, NY 10952-2403
J J B Hilliard W L Lyons Series C 4,921.995 5.855
Inc. Investor
Montgomery Brook Condo
Assoc.
Reserve AC, A/C 6149-
2991/2/
Prudential Securities Inc. Series C 4,526.567 5.385
FBO Investor
Mrs. Robbie Y. Kestner TTEE
Robbie Y. Kestner
Revocable Trust UA DTD
09 22 98
St. Louis, MO 63141
PNC Bank Institutional 29,389,169.391 96.945 84.164
Saxon & Co (PNC Inst)/4/
PNC Bank Service 2,679,966.283 83.891 7.674
Saxon & Co (PNC Service)/4/
Charles Schwab & Co. Inc. Service 335,192.67 10.492
For Exclusive Benefit of
Customers
Special Custody Account
Attn: Mutual Funds
San Francisco, CA 94104
Municipal Money Hilliard Lyons/6/ Series A 8,362,059.580 99.490
Market Investor
PNC Bank, 35 Institutional 448,191,672.620 99.977 63.305
Institutional/4/
PNC Bank, 35 Service/4/ Service 70,557,282.200 49.579 9.965
PNC Bank Service 56,612,118.140 39.780 7.996
Sweep, Treasury Mgmt/Inv.
Services
PNC Firstside Ctr P7-PFSC-
03-D
500 First Avenue
Pittsburgh, PA 15265
Hilliard Lyons/6/ Service 12,794,863.840 8.990
See notes at page 28.
13
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
---------------- --------------------------- ------------- --------------- ---------- ------------
Small Cap Value Merrill Lynch Pierce Fenner Series A 295,783.705 18.044
& Smith Inc Investor
Financial Data Services Sec
97KK5/3/
Merrill Lynch Pierce Fenner Series B 266,752.074 27.957
& Smith Inc Investor
Financial Data Services Sec
97KE6/3/
Merrill Lynch Pierce Fenner Series C 236,764.103 62.326
Sec 97KN8/3/ Investor
PNC Bank Institutional 19,987,624.300 76.585 62.156
Saxon & Co (PNC Inst)/4/
National City Bank Kentucky Institutional 2,177,334.844 8.342 6.770
Humana Retirement/Savings
TR
Mutual Funds/40-690499124
P. O. Box 94984
Cleveland, OH 44101-4984
The Northern Trust Co/Cust. Institutional 1,828,517.971 7.006 5.686
FBO Pennstate Geisinger
#26-02236
801 South Canal
P. O. Box 92956
Chicago, IL 60675
PNC Bank Service 2,627,882.845 85.172 8.172
Saxon & Co (PNC Service)/4/
PFPC/7/ Service 191,485.684 6.206
Large Cap Growth Merrill Lynch Pierce Fenner Series B 407,037.376 11.850
& Smith Inc Investor
Financial Data Services Sec
97CC0/3/
Merrill Lynch Pierce Fenner Series C 240,389.178 37.248
& Smith Inc Investor
Financial Data Services Sec
97KN7/3/
PNC Bank Institutional 60,450,673.901 96.444 69.004
Saxon & Co (PNC Inst)/4/
PNC Bank Service 14,044,949.447 84.794 16.032
Saxon & Co (PNC Service)/4/
PFPC/7/ Service 1,982,644.308 11.969
Managed Income Merrill Lynch Pierce Fenner Series A 88,666.390 5.065
& Smith Inc Investor
Financial Data Services Sec
97KL8/3/
Merrill Lynch Pierce Fenner Series B 86,385.532 14.492
& Smith Inc Investor
Financial Data Services/3/
Merrill Lynch Pierce Fenner Series C 27,482.416 86.157
& Smith Inc Investor
Financial Data Services/3/
J J B Hilliard W L Lyons Series C 2,072.181 6.496
Inc. Investor
Gregory J. Miller and
A/C 5895-8110/2/
J J B Hilliard W L Lyons Series C 2,036.727 6.385
Inc. Investor
Hilliard Lyons Custodian
for
Arvil A. Jaggers IRA
A/C 4555-1550/2/
PNC Bank Institutional 103,364,567.031 96,841 74.982
Saxon & Co (PNC Inst)/4/
PNC Bank Service 20,952.248.991 72.908 15.199
Saxon & Co (PNC Service)/4/
PFPC7 Service 7,586,148.049 26.397 5.503
See notes at page 28.
14
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
------------------ --------------------------- ------------- -------------- ---------- ------------
Tax-Free Income A G Edwards Sons Inc. FBO Series A 182,315.406 22.215
Franklin H. Sinclair Investor
Shirley Sinclair
A/C 0644-191109
One North Jefferson
St. Louis, MO 63103-2287
Merrill Lynch Pierce Fenner Series B 57,071.940 17.363
& Smith Inc Investor
Financial Data Services Sec
97KN2/3/
Donaldson Lufkin Jenrette5 Series B 22,381.379 6.809
Investor
Donaldson Lufkin Series B 21,314.387 6.484
Jenrette/5/ Investor
Merrill Lynch Pierce Fenner Series C 71,964.159 32.178
Financial Data Services Sec Investor
97KR0/3/
Legg Mason Wood Walker Inc. Series C 63,522.607 28.404
128-00559-12 Investor
P.O. Box 1476
Baltimore, MD 21202
Salomon Smith Barney Inc. Series C 26,807.015 11.986
001631066638 Investor
J J B Hilliard W L Lyons Series C 22,044.243 9.857
Inc. Investor
Margaret S. Mastronie and
A/C 6088-6949/2/
J J B Hilliard W L Lyons Series C 14,547.408 6.504
Inc. Investor
Gian Paolo Caccini
Marinella Caccini JTWROS
A/C 1844-4292/2/
PFPC/7/ Service 247,475.122 51.766
PNC Bank Service 126,461.749 26.453
Saxon & Co (PNC Service)/4/
PNC Bank Institutional 28,939,695.282 97.960 92.184
Saxon & Co (PNC Inst)/4/
Balanced Portfolio Merrill Lynch Pierce Fenner Series A 2,312,346.378 27.114 5.007
& Smith Inc Investor
Financial Data Services Sec
97KL1/3/
Merrill Lynch Pierce Fenner Series B 995,214.393 17.247
& Smith Inc Investor
Financial Data Services Sec
97KM6/3/
Merrill Lynch Pierce Fenner Series C 744,532.394 77.532
& Smith Inc Investor
Financial Data Services Sec
97KP4/3/
PNC Bank Institutional 19,112,749.910 96.709 41.393
Saxon & Co (PNC Inst)/4/
PNC Bank Service 11,077,420.538 99.334 23.990
Saxon & Co (PNC Service)/4/
See notes at page 28.
15
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
-------------------- --------------------------- ------------- -------------- ---------- ------------
International Equity Prudential Securities Inc. Series A 230,722.988 8.733
FBO Investor
MS Performance Fund Ltd.
Montague Sterling Centre
East Bay St. P.O. Box SS-
6238
Nassau, The Bahamas
Mac & Co Series A 135,244.790 5.119
108415S7007 Investor
P.O. Box 534005
Pittsburgh, PA 15253-4005
Merrill Lynch Pierce Fenner Series B 54,025.239 8.360
& Smith Inc Investor
Financial Data Services Sec
97KG8/3/
Merrill Lynch Pierce Fenner Series C 108,234.638 66.630
& Smith Inc Investor
Financial Data Services Sec
97KP0/3/
PNC Bank Institutional 52,328,499.352 96.229 73.879
Saxon & Co (PNC Inst)/4/
PNC Bank Service 11,009,016.136 84.686 15.543
Saxon & Co (PNC Service)/4/
PFPC/7/ Service 1,422,071.501 10.939
Ohio Tax-Free Income J J B Hilliard W L Lyons Series A 52,337.301 15.714
Inc. Investor
Rawdon Betty Hobbie
Trustees
A/C 4380-5440/2/
Saxon & Co. Series A 35,899.294 10.779
FBO Cleveland Van Wert Investor
A/C 70-700011038040
Mutual Fund Processing--2nd
Floor
P.O. Box 7780-1888
Philadelphia, PA 19182-1888
J J B Hilliard W L Lyons Series A 19,609.180 5.887
Inc. Investor
Ralph B. Laxton
Kathryn E. Laxton JTWROS
A/C 5515-8322/2/
Dunham Trust Company Series A 19,135.114 5.745
Trst Walter W. Tangeman Investor
Fund A
1 East Liberty Street 6th
Floor
Reno, NV 89504
Key Trust Co. Series A 17,634.417 5.294
FBO Barbara H. Wasson TR Investor
A/C 20-10-208-0525740
P.O. Box 94871
Cleveland, OH 44101
J J B Hilliard W L Lyons Series B 25,827.008 11.097
Inc. Investor
Tom Ragouzis Trust
U A DTD 12 19 97
A/C 7782-7178/2/
J J B Hilliard W L Lyons Series B 23,899.606 10.269
Inc. Investor
James F. Seiler
A/C 8204-5743/2/
See notes at page 28.
16
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
--------------------- --------------------------- ------------- -------------- ---------- ------------
Merrill Lynch Pierce Fenner Series B 20,751.406 8.916
& Smith Inc Investor
Financial Data Services Sec
97KN5/3/
J J B Hilliard W L Lyons Series B 18,815.975 8.085
Inc. Investor
Elizabeth Jane Ragouzis
Trust
U A DTD 12 19 97
A/C 7790-6656/2/
J J B Hilliard W L Lyons Series C 41,098.318 93.754
Inc. Investor
Thomas W. Seith
Donna N. Seith JTWROS
A/C 8204-7009/2/
Merrill Lynch Pierce Fenner Series C 2,737.713 6.245
& Smith Inc Investor
Financial Data Services Sec
97KK4/3/
PNC Bank Institutional 8,454,511.650 97.971 91.470
Saxon & Co (PNC Inst)/4/
Pennsylvania Tax-Free Merrill Lynch Pierce Fenner Series C 13,710.032 27.478
Income & Smith Inc Investor
Financial Data Services Sec
97KK4/3/
J J B Hilliard W L Lyons Series C 11,088.047 22.223
Inc. Investor
Sally Lou Ackroyd
Ted J. Ackroyd JTWROS
A/C 1004-5196/2/
Salomon Smith Barney Inc. Series C 10,323.806 20.691
00173645528/8/ Investor
Salomon Smith Barney Inc. Series C 6,585,725.000 13.199
00162008552/8/ Investor
J J B Hilliard W L Lyons Series C 2,819.305 5.650
Inc. Investor
Jane Grosser Montgomery and
A/C 5987-0301/2/
Salomon Smith Barney Inc. Series C 2,526.055 5.062
00173602386/8/ Investor
PNC Bank Institutional 82,457,091.750 98.871 91.952
Saxon & Co (PNC Inst)/4/
PFPC/7/ Service 678,170.072 65.269
PNC Bank Service 275,150.803 26.481
Saxon & Co (PNC Service)/4/
North Carolina 200941173 Series A 143,331.760 38.489
Municipal Money Howard Floch Investor
Market 4478 Moratock Ln
Clemmons, NC 27012
Joanne Floch Series A 133,504.710 35.851
4478 Moratock Ln. Investor
Clemmons, NC 27012
Henry L. Fisher, Jr. Series A 82,315.980 22.104
4144 Howard Rd. Investor
Morrisville, NC 27560
Chase Manhattan Bank N A Institutional 55,038,997.730 56.652 56.027
GSS as Agent
Attn: Stuart Freeman
Bank Coding/Money Funds
4 New York Plaza 13th Floor
New York, NY 10004
See notes at page 28.
17
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
----------------- ---------------------------- ------------- -------------- ---------- ------------
First Citizens Bank Institutional 19,973,676.240 20.559 20.332
McWood & Company
Attn: Penny Eason/Trust Dept
P. O. Box 29522
Raleigh, NC 27626
Centura Bank Institutional 6,459,692.910 6.649 6.575
Attn: Trust Dept.
P. O. Box 1220
Rocky Mount, NC 27802
Trust Company of the South Service 347,472.340 49.160
P. O. Box 1898
Burlington, NC 27216-1898
First Charter National Bank Service 343,078.550 48.538
Mutual Partners Corporate
Cash Sweep
P. O. Box 228
Concord, NC 28026-0228
Ohio Municipal Hilliard Lyons/6/ Series A 55,621,194.870 99.952 42.043
Money Market Investor
PNC Bank, 35 Institutional 47,641,280.660 68.589 36.011
Institutional/4/
Wayne County National Bank Institutional 11,268,594.290 16.223 8.517
Wayco & Co.
Stephen E. Kitchen Senior
T.O.
P. O. Box 757/1776 Beall
Ave.
Wooster, OH 44691
United Nat'l Bank & Trust Institutional 6,072,631.260 8.742
Co.
Canat & Co.
P.O. Box 24190
Canton, OH 44701
PNC Bank, 35 Service/4/ Service 4,431,242.490 61.656
PNC Bank
Sweep
Treasury Mgmt/Inv. Services
PNC Firstside Ctr P7-PFSC-
03-D
500 First Avenue
Pittsburgh, PA 15265
Low Duration Bond Salomon Smith Barney Inc. Series A 108,863.799 15.133
00131512446/8/ Investor
Salomon Smith Barney Inc. Series A 91,831.470 12.765
00131512040/8/ Investor
Salomon Smith Barney Inc. Series A 79,317.580 11.026
00131512217/8/ Investor
Tilton School Endowment Fund Series A 52,017.424 7.231
30 School St. Investor
Tilton, NH 03276
Merrill Lynch Pierce Fenner Series B 401,026.808 33.702
& Smith Inc Investor
Financial Data Services Sec
97MK7/3/
Merrill Lynch Pierce Fenner Series C 169,981.357 73.711
& Smith Inc Investor
Financial Data Services Sec
97KP5/3/
See notes at page 28.
18
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
----------------- --------------------------- ------------- -------------- ---------- ------------
PNC Bank Institutional 11,604,559.274 92.597 33.347
Saxon & Co (PNC Inst)/4/
PNC Bank BlackRock 9,958,752.695 56.380 28.618
Saxon & Co (PNC Inst)/4/
Sharon Holding Corporation BlackRock 1,780,415.048 10.079 5.116
919 North Market St., Ste.
200
Wilmington, DE 19801
Reform Pension Board BlackRock 1,666,651.985 9.435
355 Lexington Avenue
New York, NY 10017
Iowa State University BlackRock 1,610,808.001 9.119
Foundation
Attn: Don Behning
Alumni Suite Memorial Union
2229 Lincoln Way
Ames, IA 50014-7164
Strafe & Co. #2835616911 BlackRock 998,397.568 5.652
FAO Inland Foundation
P. O. Box 160
Westerville, OH 43086-0160
PNC Bank Service 839,312.320 34.073
Saxon & Co (PNC Service)/4/
Intermediate Bond J J B Hilliard W L Lyons Series A 60,664.850 11.379
Inc. Investor
Subaru of America
Foundation
A/C 8179-7655/2/
Ceridian Retirement Series A 44,789.452 8.401
Services RK Investor
For APRSCNJ P A Plastic
Surgery Arts
Pension Plan & Trust
3201 34th Street South
St. Petersburg, FL 33711
J J B Hilliard W L Lyons Series A 32,384.956 6.074
Inc. Investor
FBO Louis J. Neusner Trust
A/C 6882-5832/2/
J J B Hilliard W L Lyons Series B 16,164.994 11.288
Inc. Investor
Eugene W. Hoffman and
A/C 4382-8555/2/
Merrill Lynch Pierce Fenner Series B 11,718.561 8.183
& Smith Inc Investor
Financial Data Services/3/
J.J.B Hilliard W.L. Lyons Series B 10,917.031 7.623
Inc. Investor
Carol A. Noonan
A/C 6308-6059/2/
J J B Hilliard W L Lyons Series B 9,722.111 6.789
Inc. Investor
John Vietes
A/C 8992-5931/2/
J J B Hilliard W L Lyons Series C 30,804.602 50.872
Inc. Investor
Greggo Ferrara Inc
Money Pension PL Trust
A/C 3494-7521/2/
See notes at page 28.
19
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
--------------- --------------------------- ------------- -------------- ---------- ------------
Merrill Lynch Pierce Fenner Series C 17,777.309 29.358
& Smith Inc Investor
Financial Data Services/3/
J J B Hilliard W L Lyons Series C 4,228.330 6.982
Inc. Investor
Kathryn Y. Rembold and
A/C 7033-4396/2/
PNC Bank Institutional 53,137,342.237 94.861 62.021
Saxon & Co (PNC Inst)/4/
Lafayette College BlackRock 9,686,099.524 37.937 11.305
Endowment Pool
6 Markle Hall
Easton, PA 18042-1779
The Chase Manhattan Bank BlackRock 4,010,377.436 15.707
TTEE
Ohio Casualty Insurance Co.
Employees Retirement Plan
4 New York Plaza 2nd Floor
New York, NY 10004
Lafayette College BlackRock 2,675,646.319 10.479
Kirby Professorship
#30
6 Markle Hall
Easton, PA 18042-1779
UPMC Health Plan BlackRock 2,335,472.367 9.147
C/O UPMC Health System
Attn: Dennis Zeh
One Chatham Center Suite
800
Pittsburgh, PA 15219
PNC Bank BlackRock 2,037,893.524 7.981
Saxon & Co (PNC Inst)/4/
Morgan Stanley Dean Witter BlackRock 1,880,786.992 7.366
Trust/FSB NYU Hospital
Retirement Plan
Attn: Shibi Abraham 7th Fl
Harborside Fin Ctr Plaza II
Jersey City, NJ 07311
PNC Bank Service 1,688,212.243 49.775
Saxon & Co (PNC Service)/4/
Select Equity Merrill Lynch Pierce Fenner Series A 273,545.592 7.131
& Smith Inc Investor
Financial Data Services
97KK9/3/
Merrill Lynch Pierce Fenner Series B 416,413.359 9.793
& Smith Inc Investor
Financial Data Services
97KM4/3/
Merrill Lynch Pierce Fenner Series C 416,413.359 9.793
& Smith Inc Investor
Financial Data Services
97KK4/3/
Merrill Lynch Pierce Series C 244,446.009 51.712
Financial Data Services SEC Investor
97KP2/3/
PNC Bank Institutional 73,657,599.656 96.758 75.252
Saxon & Co (PNC Inst)/4/
PNC Bank Service 10,736,034.387 81.369 10.968
Saxon & Co (PNC Service)/4/
PFPC/7/ Service 2,355,939.695 17.855
See notes at page 28.
20
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
------------------ --------------------------- ------------- --------------- ---------- ------------
Small Cap Growth Merrill Lynch Pierce Fenner Series A 3,615,981.110 47.651
& Smith Inc Investor
Financial Data Services Sec
97KK6/3/
Merrill Lynch Pierce Fenner Series B 1,273,863.414 32.203
& Smith Inc Investor
Financial Data Services Sec
97KF3/3/
Merrill Lynch Pierce Fenner Series C 1,058,830.581 52.763
Sec 97KN9/3/ Investor
PNC Bank Institutional 50,792,670.968 62.182 46.874
Saxon & Co (PNC Inst)/4/
Merrill Lynch Pierce Fenner Institutional 5,884,342.203 7.203 5.430
Financial Data Services Sec
97L14/3/
Charles Schwab & Co Inc Institutional 4,506,130.740 5.516
For Exclusive Benefit of
Customers
Special Custody Accounts
Attn: Mutual Funds
101 Montgomery St.
San Francisco, CA 94104
PNC Bank Service 10,584,392.922 80.643 9.767
Saxon & Co (PNC Service)/4/
Colorado County Officials & Service 1,008,779.229 7.685
Employees Retirement Assoc
Attn: Jay Shoemaker Suite
400
4949 S. Syracuse Street
Denver, CO 80237-2747
Vanguard Fiduciary Trust Service 784,819.332 5.979
Company
FBO AMETEK Retirement &
Svgs Pl
91746
P.O. Box 2600 VM613
Valley Forge, PA 19482
Pennsylvania Hilliard Lyons/6/ Series A 86,820,992.950 98.359 13.051
Municipal Money Investor
Market
PNC Bank, 35 Institutional 471,779,003.030 92.103 70.921
Institutional/4/
PNC Bank, 35 Service/4/ Service 47,294,258.610 73.079 7.109
Hilliard Lyons/6/ Service 13,953,975.640 21.561
Virginia Municipal First Virginia Bank Inc Institutional 42,995,087.350 68.931 66.573
Money Market Oldom & Company
Trust Asset Mgmt Dept.
Attn: Jane Le Maier/Room
400
6400 Arlington Blvd/Plaza I
Falls Church, VA 22042
Planters Bank & Trust Co. Institutional 8,158,741.520 13.080 12.632
Planta & Co
Attn: Thomas A. Davis
P. O. Box 1268
Staunton, VA 24402-1268
PNC Bank Institutional 7,893,596.390 12.655 12.222
Saxon & Company/4/
See notes at page 28.
21
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
---------------------- --------------------------- ------------- ------------- ---------- ------------
International Merrill Lynch Pierce Fenner Series B 64,916.803 16.932
Bond & Smith Inc Investor
Financial Data Services Sec
97KN0/3/
Merrill Lynch Pierce Fenner Series C 45,913.192 16.063
& Smith Inc Investor
Financial Data Services Sec
97KP8/3/
PACO Series C 35,254.201 12.334
Attn: Mutual Funds 38615 Investor
P.O. Box 513577
Los Angeles, CA 90051
PNC Bank Institutional 5,784,403.671 82.152 63.918
Saxon & Co (PNC Inst)/4/
PNC Bank Service 251,535.649 62.824
Saxon & Co (PNC Service)/4/
Lobatco Service 75,956.246 18.971
P.O. Box 3188
Longview, TX 75606
International Emerging PaineWebber for the Benefit Series B 9,646.809 5.792
Markets of Investor
PaineWebber CDN AS52418
FBO Stephen L. Hileman
P.O. Box 1108
NY, NY 10268-1108
Merrill Lynch Pierce Fenner Series B 8,945.667 5.371
& Smith Inc Investor
Financial Data Services Sec
97KH0/3/
Merrill Lynch Pierce Fenner Series C 15,379.148 29.268
& Smith Inc Investor
Financial Data Services Sec
97KP1/3/
Salomon Smith Barney Inc. Series C 4,578.755 8.713
00120364581/8/ Investor
Salomon Smith Barney Inc. Series C 3,167.786 6.028
00120350778/8/ Investor
PNC Bank Institutional 7,817,304.404 99.284 90.359
Saxon & Co (PNC Inst)/4/
SEI Trust Service 203,015.113 68.905
C O Stanford Trust
Attention: Mutual Fund
Administrator
One Freedom Valley Drive
Oaks, PA 19456
PNC Bank Service 67,175.963 22.800
Saxon & Co (PNC Service)/4/
Government Income J J B Hilliard W L Lyons Series A 40,965.744 5.155
Inc. Investor
Edward F. Wheatley IRA
A/C 8992-0501/2/
Merrill Lynch Pierce Fenner Series B 303,676.057 12.148 8.792
& Smith Inc Investor
Financial Data Services Sec
97KN1/3/
Merrill Lynch Pierce Fenner Series C 97,947.802 61.489
Financial Data Services Sec Investor
97KP9/3/
James V. Elmore Series C 8,163.760 5.125
Frances H. Elmore TIC Investor
7063 Helsem Way
Dallas, TX 75230-1989
See notes at page 28.
22
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
-------------------- ----------------------------------------- ------------- -------------- ---------- ------------
New Jersey Municipal Hilliard Lyons/6/ Series A 12,227,476.190 98.816 7.284
Money Market Investor
PNC Bank, 35 Institutional/4/ Institutional 63,667,909.490 63.696 37.931
Boh & Co. Institutional 21,518,518.220 21.528 21.820
Beacon Trust Company
Attn: Beth Patino
333 Main Street
Madison, NJ 07940
Chase Manhattan Bank Institutional 9,063,127.800 9.067 5.399
Administrative Services (IFG)
Attn: STIF Unit
Mailcode 18 HCB 340
P. O. Box 2558
Houston, TX 77252-2558
PNC Bank, 35 Service/4/ Service 49,362,772.960 88.910 29.408
New Jersey Tax-Free Timothy G. Ryan Series A 66,165.331 31.773
Income 1477 Pennsylvania Avenue Investor
Franklinville, NJ 08322-2349
Merrill Lynch Pierce Fenner & Smith Inc. Series A 18,348.420 8.811
Financial Data Services Sec 97KM1/3/ Investor
Salomon Smith Barney Inc. Series A 14,366.908 6.899
00168100993/8/ Investor
PaineWebber for the Benefit of Series A 12,728.035 6.112
Constance F. Kuolt Investor
Investment Account
100 Wyckoff Avenue
Wyckoff, NJ 07481-3141
Janney Montgomery Scott LLC Series A 12,727.939 6.112
A/C 3199-6112 Investor
Allen M. Fellows MD
1801 Market Street
Philadelphia, PA 19103-1675
Merrill Lynch Pierce Fenner & Smith Inc Series B 18,763.902 8.736
Financial Data Services Sec 97KN4/3/ Investor
J J B Hilliard W L Lyons Inc. Series B 17,108.640 7.965
The Sixty Lafayette Ave Corp Investor
A/C 8310-3358/2/
J J B Hilliard W L Lyons Inc. Series B 14,427.281 6.717
Edna Logan A/C 5900-2555/2 Investor
PNC Bank Institutional 11,386,495.342 99.767 85.191
Saxon & Co (PNC Inst)/4/
PNC Bank Service 108,426.186 7.090
Saxon & Co (PNC Service)/4/
PFPC/7/ Service 91,170.492 5.961
Core Bond Total Merrill Lynch Pierce Fenner & Smith Inc Series A 219,782.224 15.690
Return Financial Data Services Sec 97KL5/3/ Investor
J J B Hilliard W L Lyons Inc. Leah Levine Series A 101,273.826 7.230
Grantor Retained Annuity Trust A/C 5670- Investor
4911/2/
See notes at page 28.
23
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
--------------- --------------------------- ------------- --------------- ---------- ------------
Merrill Lynch Pierce Fenner Series B 644,610.589 36.266
& Smith Inc Investor
Financial Data Services SEC
97MK9/3/
Merrill Lynch Pierce Fenner Series C 1,121,006.814 83.074
& Smith Inc Investor
Financial Data Services Sec
97KP7/3/
PNC Bank Institutional 103,783,009.086 92.579 62.055
Saxon & Co (PNC Inst)/4/
State Street Bank & Trust BlackRock 9,157,920.722 21.651 5.475
Successor Trustee U/A USAA
Savings & Invest Plan,
Attn: Yvonne Lee
105 Rosemount Road
Westwood, MA 02090
PNC Bank BlackRock 7,101,985.942 16.791
Saxon & Co (PNC Inst)/4/
Owensboro Mercy Health BlackRock 3,009,731.125 7.115
System Inc
Attn: William O Price
811 East Parrish Ave
Owensboro, KY 42303
Bank of New York BlackRock 2,846,636.635 6.730
Wendel & Co A/C 161118
Mutual Fund Reorg Dept
P O Box 1066 Wall St
Station
New York, NY 10268
The Bank of New York BlackRock 2,305,779.761 5.451
Committee
The Computer Science Corp.
Attn: Corporate Funds 12th
Fl
One Wall Street
New York, NY 10286
The University of BlackRock 2,169,197.397 5.128
Connecticut
Foundation Inc
2390 Alumni Drive U-206
Storrs, CT 06269
PNC Bank Service 6,774,935.204 81.448
Saxon & Co (PNC Service)/4/
Charles Schwab & Co Inc Service 645,426.134 7.759
For Exclusive Benefit of
Customers
Special Custody Accounts
Attn: Mutual Funds
101 Montgomery St.
San Francisco, CA 94104
Mid Cap Value Merrill Lynch Pierce Fenner Series A 27,917.154 7.403
& Smith Inc Investor
Financial Data Services Sec
97AM3/3/
Merrill Lynch Pierce Fenner Series B 151,565.341 25.490
& Smith Inc Investor
Financial Data Services Sec
97AM4/3/
Merrill Lynch Pierce Fenner Series C 132,425.942 58.845
& Smith Inc Investor
Financial Data Services Sec
97AM5/3/
PNC Bank Institutional 18,654,168.205 98.131 82.142
Saxon & Co (PNC Inst)/4/
PNC Bank Service 2,107,743.581 84.199 9.281
Saxon & Co (PNC Service)/4/
PFPC/7/ Service 377,861.888 15.094
See notes at page 28.
24
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
------------------- --------------------------- ------------- -------------- ---------- ------------
Mid Cap Growth Merrill Lynch Pierce Fenner Series A 715,285.143 13.793
Financial Data Services Sec Investor
97AU1/3/
Merrill Lynch Pierce Fenner Series B 1,912,050.697 24.310
& Smith Inc Investor
Financial Data Services Sec
97AU2/3/
Merrill Lynch Pierce Fenner Series C 1,706,071.485 48.781
& Smith Inc Investor
Financial Data Services Sec
97AU3/3/
PNC Bank Institutional 39,014,349.033 95.880
Saxon & Co (PNC Inst)/4/
PNC Bank Service 3,770,899.630 78.536 62.885
Saxon & Co (PNC Service)/4/
PFPC/7/ Service 630,281.992 13.126 6.078
Fidelity Investments Service 342,433.741 7.131
Instl Op Co Inc (FIIOC As
Agt
for Certain Employee Ben
Plan)
100 Magellan Way (KW1C)
Covington, KY 41015
International Small Merrill Lynch Pierce Fenner Series A 656,455.081 37.618
Cap & Smith Inc Financial Data Investor
Services Sec 97R05/3/
Merrill Lynch Pierce Fenner Series B 717,782.655 32.811 5.688
& Smith Inc Financial Data Investor
Services Sec 97R06/3/
Merrill Lynch Pierce Fenner Series C 753,724.951 46.188 6.220
& Smith Inc Financial Data Investor
Services Sec 97R07/3/
PNC Bank Institutional 5,217,662.442 89.745 6.531
Saxon & Co (PNC Inst)/4/
Merrill Lynch Pierce Fenner Institutional 329,440.355 5.666 45.215
& Smith Inc Financial Data
Services/3/
PFPC/7/ Service 140,804.861 87.388
PNC Bank Class 9,400.842 5.834
Saxon & Co (PNC Service)/4/
Delaware Tax-Free Merrill Lynch/3/ Series A 55,943.563 15.140
Income Investor
Wilmington Trust Company Series A 34,966.397 9.463
Trustee Investor
FBO Robert ORR
U/A DTD 02/19/99 A/C 47835-
0
C/O Mutual Funds
P.O. Box 8882
Wilmington, DE 19899-8882
J J B Hilliard W L Lyons Series A 29,767.920 8.056
Inc. Investor
Harold A. Smith
A/C 8775-1181/2/
US Clearing Corp Series A 21,950.413 5.940
FBO 104-01390-14 Investor
26 Broadway
NY, NY 10004-1798
J J B Hilliard W L Lyons Series A 18,645.251 5.046
Inc. Investor
Edith M. Callahan
A/C 2064-7879/2/
Merrill Lynch Pierce Fenner Series B 88,954.546 39.636
& Smith Inc Financial Data Investor
Services Sec 97KK6/3/
See notes at page 28.
25
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
----------------- --------------------------- ------------- ------------- ---------- ------------
Dean Witter For the Benefit Series B 24,124.225 10.749
of Investor
Judith K. Holmes
P.O. Box 250 Church Street
Station
NY, NY 10008-0250
J J B Hilliard W L Lyons Series B 16,730.110 7.454
Inc. Investor
Claire H. Conly
A/C 2107-0834 S./2/
Merrill Lynch/3/ Series C 20,786.923 49.789
Investor
Diane S. Kedash Series C 16,441.399 39.380
35 Abelia Lane Investor
Newark, DE 19711-3414
Dean Witter For the Benefit Series A 3,177.450 7.610
of Investor
Alburn H. Brown
P.O. Box 250 Church Street
Station
NY, NY 10008-0250
PNC Bank Institutional 8,632,829.987 97.557 91.018
Saxon & Co (PNC Inst)/4/
Kentucky Tax-Free PaineWebber for the Benefit Series A 88,561.897 44.093
Income of Investor
Ruth B. Lewis
Tax Free Account
1730 Sulgrave Rd.
Louisville, KY 40205-1644
J J B Hilliard W L Lyons Series A 29,780.685 14.827
Inc. Investor
Anne L. Walsh
A/C 8996-8767/2/
J J B Hilliard W L Lyons Series A 16,171.021 8.051
Inc. Investor
Rosemary Kaiser Spencer
Exectr
A/C 8618-9423/2/
J J B Hilliard W L Lyons Series A 13,735.255 6.838
Inc. Investor
Sam B. Dibble Jr. Residuary
Tr
A/C 2117-2628/2/
Prudential Securities Inc Series A 10,830.331 5.392
FBO Investor
Mrs. Sheila Ann Evan Ms.
Linda
Lou Gallimore Co-TTEEs Ann
Marie Gallimore Revocable
Trust UA DTD 12 13 95
Carrollton, KY 41008-0276
J J B Hilliard W L Lyons Series B 13,201.206 30.979
Inc. Investor
Margaret L. Hasson
A/C 4356-6511/2/
J J B Hilliard W L Lyons Series B 10,760.180 25.251
Inc. Investor
David L. Norris and
A/C 6318-1370/2/
J J B Hilliard W L Lyons Series B 4,995.554 11.723
Inc. Investor
Martha S. Stamper
A/C 8993-6457/2/
J J B Hilliard W L Lyons Series B 3,519.620 8.259
Inc. Investor
Alma Lillian Jones
A/C 5056-1636/2/
See notes at page 28.
26
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
---------------- --------------------------- ------------- -------------- ---------- ------------
Janney Montgomery Scott LLC Series B 2,650.670 6.220
A/C 8685-1192 Investor
Russell C. White
1801 Market Street
Philadelphia, PA 19103-1675
Ronnie Michael Sandlin TTEE Series C 3,641.033 35.862
U A DTD 7-7-93 Investor
Hazel F. Sandlin Trust
303 Sandlin Rd
Carrolton, KY 41008-9162
J J B Hilliard W L Lyons Series C 3,313.846 32.639
Inc. Investor
Jerry A. Bennett
A/C 1466-6109/2/
J J B Hilliard W L Lyons Series C 3,186.801 31.388
Inc. Investor
Richard L. Rawe
Mary A. Rawe JTWROS
A/C 7788-9151/2/
PNC Bank Institutional 14,632,845.641 93.254 91.718
Saxon & Co (PNC Inst)/4/
PNC Bank Service 9,159.908 99.878
Saxon & Co (PNC Service)/4/
Micro-Cap Equity Merrill Lynch Pierce Fenner Series A 712,224.182 19.981
& Smith Inc Investor
Financial Data Services Sec
97KK6/3/
Merrill Lynch Pierce Fenner Series B 1,402,721.790 25.544 9.600
& Smith Inc Investor
Financial Data Services Sec
97KK6/3/
Merrill Lynch Pierce Fenner Series B 1,250,510.575 42.507 8.558
& Smith Inc Investor
Financial Data Services Sec
97KK6/3/
PNC Bank Institutional 2,059,178.274 81.024 14.092
Saxon & Co. (PNC Inst.)/4/
Merrill Lynch Pierce Fenner Institutional 316,105.537 12.438
& Smith Inc
Financial Data Services Sec
97KK6/3/
PNC Bank Service 27,762.040 38.307
Saxon & Co. (PNC
Service)/4/
Retail Omnibus Account Service 9,715.376 13.405
Midlantic Investar
Customers
Blackrock Funds
Attn: Rhonda Stanford
400 Bellevue Parkway
Wilmington, DE 19809
GNMA Portfolio J J B Hilliard W L Lyons Series A 23,500.158 9.885
Inc. Investor
St. Mary's Episcopal Church
C/O Noel Becker
A/C 8972-7215/2/
Mary S. Gregg Series A 15,507.775 6.523
Homewood, 509 Silvery Ln. Investor
Martinsburg, PA 16662
See notes at page 28.
27
Percentage Percentage
Amount of of Class of Portfolio
Portfolio Name & Address Class Shares Owned Owned Shares Owned
------------ ---------------------------------------- ------------- -------------- ---------- ------------
J J B Hilliard W L Lyons Series A 13,058.544 5.493
Inc. Investor
Mary E. Kehoe, A/C 5089-
5422/2/
J J B Hilliard W L Lyons Series B 6,768.459 6.844
Inc. Investor
Elizabeth H. Rowland
Dunwoody Village CH-13
A/C 7835-8034/2/
Merrill Lynch Pierce Fenner Series B 6,357.330 6.428
& Smith Inc Investor
Financial Data Services Sec
97KK6/3/
Merrill Lynch Pierce Fenner Series C 12,999.039 58.514
& Smith Inc Investor
Financial Data Services Sec
97KP2/3/
A G Edwards Sons Custodian Series C 4,312.062 19.410
for Investor
Charles W. Burris IRA
Account
C/O Midwest Anesthesia
P.O. Box 31579
St. Louis, MO 63131
Donaldson Lufkin Series C 3,061.110 13.779
Jenrette/5/ Investor
PNC Bank Institutional 9,650,438.103 99.441 95.736
Saxon & Co. (PNC Inst.)/4/
PNC Bank Service 16,714.394 99.927
Saxon & Co. (PNC
Service)/4/
Index Equity Merrill Lynch Pierce Fenner Series A 521,235.047 14.094
& Smith Inc Investor
Financial Data Services Sec
97KL0/3/
Merrill Lynch Pierce Fenner Series B 4,781,029.835 35.477
& Smith Inc Investor
Financial Data Services Sec
97MK5/3/
Merrill Lynch Pierce Fenner Series C 12,037,891.897 59.815
& Smith Inc Investor
Financial Data Services Sec
97KP2/3/
PNC Bank Institutional 23,099,342.442 86.884 28.249
Saxon & Co. (PNC Inst.)/4/
Wendel Co. A/C 620947 Institutional 1,399,041.132 5.262
C/O The Bank of NY
Attn: Mutual Fund Reorg.
Dept.
P.O. Box 1066 Wall St. Station New York,
NY 10268
PNC Bank Service 13,150,454.605 90.519 16.082
Saxon & Co. (PNC
Service)/4/
--------
1 C/O Blackrock Financial Mgmt., Attn: Kenneth A. Boog, 101 East 52nd Street,
7th Fl., New York, NY 10022
2 501 S. 4th Street, Louisville, KY 40202
3 Attn: Stock Powers, 4800 E. Deer Lake Dr., 3rd Fl., Jacksonville, FL 32246
4 Attn: Lawrence Lockwood, ACI Dept/Reorg, F6-F266-02-2 8800, Tinicum Blvd.,
Philadelphia, PA 19153
5 Securities Corporation Inc., P.O. Box 2052, Jersey City, NJ 07303-9998
6 Cash Balance Sweeps, Attn: Barbara O'Neal, 501 Hilliard Lyons Ctr,
Louisville, KY 40202
7 FBO Hilliard Lyons/Capital Directions, 211 S. Gulph Road, King of Prussia,
PA 19406
8 333 West 34th Street, 3rd Floor, New York, NY 10001
28
ADDITIONAL INFORMATION
BlackRock Financial Management, Inc. ("BFM"), an affiliate of BlackRock
located at 345 Park Avenue, New York, New York 10154, serves as sub-adviser
for the Bond Portfolios and for the Balanced Portfolio, and as adviser for the
Multi-Sector Mortgage Securities Portfolio IV and for the BlackRock Strategic
Portfolio I. BlackRock International, Ltd. ("BIL"), an affiliate of BlackRock
located at 40 Torphichen Street, Edinburgh, Scotland EH3 8JB, serves as co-
investment adviser for the Global Communications Portfolio and as sub-adviser
for the International Equity, International Emerging Markets and International
Small Cap Equity Portfolios. BlackRock Institutional Management Corporation
("BIMC"), an affiliate of BlackRock located at 100 Bellevue Parkway,
Wilmington, Delaware 19809, serves as sub-adviser for the Money Market
Portfolios.
The only portfolio not managed by BlackRock, BFM, BIL, BMIC or any other
BlackRock affiliate is the Index Equity Portfolio, which invests all of its
assets in The U.S. Large Company Series (the "Index Master Portfolio") of The
DFA Investment Trust Company. The Index Master Portfolio is advised by
Dimensional Fund Advisors Inc., located at 1299 Ocean Avenue, 11th Floor,
Santa Monica, California 90401.
PFPC Inc. serves as the Fund's transfer agent. The address of PFPC Inc. is
400 Bellevue Parkway, Wilmington, Delaware 19809.
BlackRock Distributors, Inc. serves as the Fund's distributor. The address
of BlackRock Distributors, Inc. is 3200 Horizon Drive, King of Prussia, PA
19406.
Fees Paid To Independent Accountants
Audit Fees. The aggregate fees paid to PricewaterhouseCoopers LLP ("PwC"),
the Fund's independent accountants, in connection with the annual audit of the
Fund and the review of the Fund's financial statements for the fiscal year
ended September 30, 2000 was $484,500.
Financial Information Systems Design and Implementation Fees. There were no
fees billed for information technology services rendered by PwC to the Fund,
BlackRock and entities controlled by or affiliated with BlackRock that provide
services to the Fund for the fiscal year ended September 30, 2000.
All Other Fees. The aggregate fees billed for all other non-audit services,
including fees for tax-related services, rendered by PwC to the Fund,
BlackRock and entities controlled by or affiliated with BlackRock that provide
services to the Fund for the fiscal year ended September 30, 2000 was
$124,000. The Audit Committee has not yet had an opportunity to determine
whether the provision of these non-audit services is compatible with
maintaining the independence of PwC.
Delivery of Proxy Statement and Fund Documents
To avoid sending duplicate copies of materials to households, the Fund mails
only one copy of the proxy statement to shareholders having the same
residential or post office box address, unless contrary instructions were
received. This practice is called "householding" and can save the Fund a
significant portion of its printing and mailing costs. Shareholders should
contact BlackRock toll-free at (800) 441-7762 or c/o PFPC Inc., P.O. Box 8907,
Wilmington, DE 19899-8907, if they require additional copies of the proxy
statement, if they do not want the mailings of Fund documents to be combined
with those for the other shareholders at the same address, or if they are
currently receiving multiple copies and would like to request householding in
the future. Individual copies of the proxy statement will be delivered
promptly to the shareholders that request them.
29
Other Business
The Board of Trustees of the Fund does not know of any other matter which
may come before the Meeting. If any other matter properly comes before the
Meeting, it is the intention of the persons named in the proxy to vote the
proxies in accordance with their judgment on that matter.
Expenses of Proxy Solicitation
The costs of preparing, assembling and mailing material in connection with
this solicitation of proxies will be borne by the Fund. Proxies may also be
solicited personally by officers of the Fund and by regular employees of
BlackRock or their respective affiliates, or other representatives of the Fund
or by telephone or telegraph, in addition to the use of mails. Brokerage
houses, banks and other fiduciaries may be requested to forward proxy
solicitation material to their principals to obtain authorization for the
execution of proxies, and they will be reimbursed by the Fund for out-of-
pocket expenses incurred in this connection.
April 4, 2001
30
BLACKROCK FUNDS
100 BELLEVUE PARKWAY
WILMINGTON, DE 19809
BLACKROCK FUNDS
SPECIAL MEETING OF SHAREHOLDERS - MAY 4, 2001
This Proxy is Solicited on Behalf of the Board of Trustees
The undersigned hereby appoints Robert Connolly, Brian Kindelan and
Anne Ackerley, and each of them, attorneys and proxies for the undersigned, with
full power of substitution and revocation, to represent the undersigned at the
Special Meeting of Shareholders of the Fund to be held at the offices of
BlackRock Advisors, Inc., 100 Bellevue Parkway, Wilmington, Delaware 19809, on
the 3rd floor, on May 4, 2001, at 10:00 a.m., and at any adjournments thereof,
upon the matters set forth in the Notice of Special Meeting and Proxy Statement
dated April 4, 2001 and upon all other matters properly coming before said
Meeting.
Please indicate your vote by an "X" in the appropriate box on the
reverse side. This proxy, if properly executed, will be voted in the manner
directed by the shareholder. If no direction is made, this proxy will be voted
FOR Proposal 1 (the nominees for Trustee). Please refer to the Proxy Statement
for a discussion of the Proposal.
To vote by Telephone
1) Read the Proxy Statement and have the Proxy card below at hand.
2) Call 1-800-890-6903
3) Enter the 12-digit control number set forth on the Proxy card and follow the
simple instructions.
To vote by Internet
1) Read the Proxy Statement and have the Proxy card below at hand.
2) Go to Website www.proxyvote.com
3) Enter the 12-digit control number set forth on the Proxy card and follow the
simple instructions.
To vote by Mail
1) Mark, sign and date your proxy card.
2) Return it in the enclosed postage paid envelope.
Note: Please sign exactly as your name appears on this Proxy. If joint owners,
EITHER may sign this Proxy. When signing as attorney, executor, administrator,
trustee, guardian or corporate officer, please give your full title.
[x] VOTES MUST BE
INDICATED (X) IN
BLACK OR BLUE INK.
THE BOARD OF TRUSTEES UNANIMOUSLY RECOMMENDS A VOTE "FOR" PROPOSAL 1
(including all nominees for Trustee).
1. Election of Trustees.
Nominees to serve on the Board of Trustees: 2. The persons named as
(01) William O. Albertini (02) Raymond J. Clark proxies are authorized to
(03) Stuart E. Eizenstat (04) Laurence D. Fink vote in their discretion
(05) Robert M. Hernandez (06) Dr. Judith Rodin on any other business as
(07) David R. Wilmerding, Jr. may properly come before
the Meeting.
FOR [_] [_] WITHHOLD AUTHORITY
The nominees to vote for the
listed above nominees listed above
[_]______________________________________ 3. If you plan to [_]
(INSTRUCTION: To withhold authority to attend the Meeting,
vote for any individual nominee, write please check the box
that nominee's number in the space at right.
provided above.)
Change of Address and/or [_]
Comments mark here and
indicate on the reverse.
Please Sign, Date and
Return the Proxy Promptly
Using the Enclosed
Envelope.
Signature: Date:
--------------------------------- -------------
Signature: Date:
---------------------------------- -------------