Notes to Financial Statements
Security Transactions and Investment Income: Investment transactions are accounted for on the trade date. The
cost of investments sold is determined by use of specific identification method for both financial reporting and
federal income purposes. Interest income is recorded on the accrual basis and the Fund accretes premium or
amortizes discount on securities purchased using the interest method.
Taxes: No provision is made for federal taxes as its the Fund's intention to have the Portfolio continue to qualify
as a regulated investment company and to make the requisite distributions to its shareholders which will be
sufficient to relieve it from federal income and excise taxes.
Dividends to Shareholders: Dividends from net investment income are declared by the Portfolio each day on
"settled" shares (i.e. shares for which the Portfolio has received payment in federal funds) and are paid monthly.
Net realized capital gains, if any, will be distributed at least annually. The character of distributions made during
the year from net investment income or net realized gains may differ from their ultimate characterization for federal
income tax purposes due to differences between generally accepted accounting principles and tax accounting
principles related to the character of income and expense recognition.
Note 2. Transactions with Affiliates and Related Parties
Pursuant to an Investment Advisory Agreement, BlackRock Advisors, Inc., a wholly-owned subsidiary of
BlackRock, Inc., serves as investment adviser to the Portfolio. For its advisory services, BlackRock Advisors
Inc., is entitled to receive fees, computed daily and paid monthly, at the annual rate of 0.20% of the Portfolio's
average daily net assets.
BlackRock Advisors, Inc.,may, at its discretion, waive all or any portion of its advisory fee for the Portfolio and
may reimburse the Portfolio for certain operating expenses. For the period ended September 30, 1998, advisory
fees and waiver for