BACAX Blackrock Fds, All-Cap Energy & Resources Ptf Investor A Class (MM)

PROSPECTUS

 

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BlackRock All-Cap Energy & Resources Portfolio Investor A: BACAX • Investor B: BACBX • Investor C: BACCX • Institutional: BACIX

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BlackRock Energy & Resources Portfolio Investor A: SSGRX • Investor B: SSGPX • Investor C: SSGDX • Institutional: SGLSX

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BlackRock World Gold Fund Investor A: BWGAX • Investor C: BWGCX • Institutional: BWGIX

 

Fund Overview				Key facts and details about the Funds listed in this prospectus including investment objectives, principal strategies, risk factors, fee and expense information, and historical performance information
				Key Facts About BlackRock All-Cap Energy & Resources Portfolio					3
				Key Facts About BlackRock Energy & Resources Portfolio					9
				Key Facts About BlackRock World Gold Fund					15
				Important Additional Information					20
Details About the Funds				How Each Fund Invests					21
				Investment Risks					27
Account Information				Information about account services, sales charges & waivers, shareholder transactions, and distribution and other payments
				How to Choose the Share Class that Best Suits Your Needs					35
				Details About the Share Classes					38
				Distribution and Service Payments					42
				How to Buy, Sell, Exchange and Transfer Shares					43
				Account Services and Privileges					49
				Funds’ Rights					50
				Participation in Fee-Based Programs					51
				Short-Term Trading Policy					51
Management of the Funds				Information about BlackRock and the Portfolio Managers
				BlackRock					53
				Portfolio Manager Information					55
				Conflicts of Interest					55
				Valuation of Fund Investments					56
				Dividends, Distributions and Taxes					57
Financial Highlights				Financial Performance of the Funds					59
General Information				Shareholder Documents					70
				Certain Fund Policies					70
				Statement of Additional Information					71
Glossary				Glossary of Investment Terms					72
For More Information				Funds and Service Providers					Inside Back Cover
				Additional Information					Back Cover

 

Shareholder Fees (fees paid directly from your investment)

Investor A Shares

Investor B Shares

Investor C Shares

Institutional Shares

Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price)

5.25

%

None

None

None

Maximum Deferred Sales Charge (Load) (as percentage of offering price or redemption proceeds, whichever is lower)

None

1

4.50

% 2

1.00

% 3

None

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)				Investor A Shares				Investor B Shares				Investor C Shares				Institutional Shares
Management Fee					0.75	%			0.75	%			0.75	%			0.75	%
Distribution and/or Service (12b-1) Fees					0.25	%			1.00	%			1.00	%		None
Other Expenses					0.35	%			0.45	%			0.33	%			0.20	%
Total Annual Fund Operating Expenses					1.35	%			2.20	%			2.08	%			0.95	%
Fee Waivers and/or Expense Reimbursements 4					—				(0.10	)%			—				—
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements 4					1.35	%			2.10	%			2.08	%			0.95	%

 

1

A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at time of purchase as part of an investment of $1,000,000 or more.

2

The CDSC is 4.50% if shares are redeemed in less than one year. The CDSC for Investor B Shares decreases for redemptions made in subsequent years. After six years there is no CDSC on Investor B Shares. (See the section “Details About the Share Classes — Investor B Shares” in the Fund’s prospectus for the complete schedule of CDSCs.)

3

There is no CDSC on Investor C Shares after one year.

4

As described in the “Management of the Funds” section of the Fund’s prospectus on pages 53-58, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) as a percentage of average daily net assets to 1.38% (for Investor A Shares), 2.10% (for Investor B and Investor C Shares), and 0.96% (for Institutional Shares) until February 1, 2014. The Fund may have to repay some of these waivers and/or reimbursements to BlackRock in the following two years. The agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund.

				1 Year				3 Years				5 Years				10 Years
Investor A Shares				$	655			$	930			$	1,226			$	2,064
Investor B Shares				$	663			$	1,029			$	1,371			$	2,311
Investor C Shares				$	311			$	652			$	1,119			$	2,410
Institutional Shares				$	97			$	303			$	525			$	1,166

 

				1 Year				3 Years				5 Years				10 Years
Investor B Shares				$	213			$	679			$	1,171			$	2,311
Investor C Shares				$	211			$	652			$	1,119			$	2,410

 

n

Commodities Market Risk — Stocks of companies engaged in commodities related industries, such as energy or natural resources companies, are especially affected by variations in the commodities markets (that may be due to market events, regulatory developments or other factors that the Fund cannot control) and these companies may lack the resources and the broad business lines to weather hard times.

n

Concentration Risk — The Fund’s strategy of concentrating in energy and natural resources companies means that its performance will be closely tied to the performance of a particular market segment. The Fund’s concentration in these companies may present more risks than if it were broadly diversified over numerous industries and sectors of

the economy. A downturn in these companies would have a larger impact on the Fund than on a mutual fund that does not concentrate in such companies. At times, the performance of these companies will lag the performance of other industries or the broader market as a whole.

n

Convertible Securities Risk — The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market and issuer risks that apply to the underlying common stock.

n

Depositary Receipts Risk — The issuers of unsponsored depositary receipts are not obligated to disclose information that is, in the United States, considered material. Therefore, there may be less information available regarding these issuers and there may not be a correlation between such information and the market value of the depositary receipts. Depositary receipts are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted.

n

Derivatives Risk — The Fund’s use of derivatives may reduce the Fund’s returns and/or increase volatility. Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. A risk of the Fund’s use of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value accurately. Derivatives may give rise to a form of leverage and may expose the Fund to greater risk and increase its costs. Recent legislation calls for new regulation of the derivatives markets. The extent and impact of the regulation is not yet known and may not be known for some time. New regulation may make derivatives more costly, may limit the availability of derivatives, or may otherwise adversely affect the value or performance of derivatives.

n

Emerging Markets Risk — Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging securities markets have far lower trading volumes and less liquidity than developed markets.

n

Equity Securities Risk — Stock markets are volatile. The price of equity securities fluctuates based on changes in a company’s financial condition and overall market and economic conditions.

n

Foreign Securities Risk — Foreign investments often involve special risks not present in U.S. investments that can increase the chances that the Fund will lose money. These risks include:

—

The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory oversight.

—

Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.

—

The economies of certain foreign markets may not compare favorably with the economy of the United States with respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of payments position.

—

The governments of certain countries may prohibit or impose substantial restrictions on foreign investments in their capital markets or in certain industries.

—

Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to the same extent as does the United States and may not have laws to protect investors that are comparable to U.S. securities laws.

—

Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of securities not typically associated with settlement and clearance of U.S. investments.

n

Geographic Concentration Risk — From time to time the Fund may invest a substantial amount of its assets in issuers located in a single country or a limited number of countries. If the Fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in those countries will have a significant impact on its investment performance. The Fund’s investment performance may also be more volatile if it concentrates its investments in certain countries, especially emerging market countries.

n

Leverage Risk — Some transactions may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet any required asset segregation requirements. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses leverage.

n

Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money.

n

Mid-Cap Securities Risk — The securities of mid-cap companies generally trade in lower volumes and are generally subject to greater and less predictable price changes than the securities of larger capitalization companies.

n

Non-Diversification Risk — The Fund is a non-diversified fund. Because the Fund may invest in securities of a smaller number of issuers, it may be more exposed to the risks associated with and developments affecting an individual issuer than a fund that invests more widely.

n

Small Cap Securities Risk — Small cap companies may have limited product lines or markets. They may be less financially secure than larger, more established companies. They may depend on a more limited management group than larger capitalized companies.

n

Warrants Risk — If the price of the underlying stock does not rise above the exercise price before the warrant expires, the warrant generally expires without any value and the Fund loses any amount it paid for the warrant. Thus, investments in warrants may involve substantially more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock.

 

As of 12/31/12 Average Annual Total Returns				1 Year				5 Years				Since Inception (February 16, 2005)
BlackRock All-Cap Energy & Resources Portfolio — Investor A
Return Before Taxes					(9.15	)%			(6.33	)%			5.83	%
Return After Taxes on Distributions					(9.15	)%			(6.84	)%			5.33	%
Return After Taxes on Distributions and Sale of Shares					(5.95	)%			(5.42	)%			4.94	%
BlackRock All-Cap Energy & Resources Portfolio — Investor B
Return Before Taxes					(9.16	)%			(6.35	)%			5.76	%
BlackRock All-Cap Energy & Resources Portfolio — Investor C
Return Before Taxes					(5.74	)%			(6.00	)%			5.80	%
BlackRock All-Cap Energy & Resources Portfolio — Institutional
Return Before Taxes					(3.69	)%			(4.93	)%			6.99	%
S&P 500 ® Index (Reflects no deduction for fees, expenses or taxes)					16.00	%			1.66	%			4.27	%
70% Wilshire 5000 Modified Energy Cap Weighted Index/ 30% MSCI All-Country World Energy Index (Reflects no deduction for fees, expenses or taxes)					2.98	%			(1.03	)%			9.02	%

 

Name				Portfolio Manager of the Fund Since				Title
Denis Walsh, CFA				2005				Managing Director of BlackRock, Inc.
Daniel Neumann, CFA				2012				Managing Director of BlackRock, Inc.

 

Shareholder Fees (fees paid directly from your investment)

Investor A Shares

Investor B Shares

Investor C Shares

Institutional Shares

Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price)

5.25

%

None

None

None

Maximum Deferred Sales Charge (Load) (as percentage of offering price or redemption proceeds, whichever is lower)

None

1

4.50

% 2

1.00

% 3

None

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)				Investor A Shares				Investor B Shares				Investor C Shares				Institutional Shares
Management Fee					0.74	%			0.74	%			0.74	%			0.74	%
Distribution and/or Service (12b-1) Fees					0.25	%			1.00	%			1.00	%		None
Other Expenses					0.35	%			0.42	%			0.33	%			0.25	%
Total Annual Fund Operating Expenses					1.34	%			2.16	%			2.07	%			0.99	%
Fee Waivers and/or Expense Reimbursements 4					—				(0.06	)%			—				—
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements 4					1.34	%			2.10	%			2.07	%			0.99	%

 

1

A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at time of purchase as part of an investment of $1,000,000 or more.

2

The CDSC is 4.50% if shares are redeemed in less than one year. The CDSC for Investor B Shares decreases for redemptions made in subsequent years. After six years there is no CDSC on Investor B Shares. (See the section “Details About the Share Classes — Investor B Shares” in the Fund’s prospectus for the complete schedule of CDSCs.)

3

There is no CDSC on Investor C Shares after one year.

4

As described in the “Management of the Funds” section of the Fund’s prospectus on pages 53-58, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) as a percentage of average daily net assets to 1.38% (for Investor A Shares), 2.10% (for Investor B and Investor C Shares), and 1.07% (for Institutional Shares) until February 1, 2014. The Fund may have to repay some of these waivers and/or reimbursements to BlackRock in the following two years. The agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund.

				1 Year				3 Years				5 Years				10 Years
Investor A Shares				$	654			$	927			$	1,221			$	2,053
Investor B Shares				$	663			$	1,020			$	1,354			$	2,280
Investor C Shares				$	310			$	649			$	1,114			$	2,400
Institutional Shares				$	101			$	315			$	547			$	1,213

 

				1 Year				3 Years				5 Years				10 Years
Investor B Shares				$	213			$	670			$	1,154			$	2,280
Investor C Shares				$	210			$	649			$	1,114			$	2,400

 

n

Commodities Market Risk — Stocks of companies engaged in commodities related industries, such as energy or natural resources companies, are especially affected by variations in the commodities markets (that may be due to market events, regulatory developments or other factors that the Fund cannot control) and these companies may lack the resources and the broad business lines to weather hard times.

n

Concentration Risk — The Fund’s strategy of concentrating in energy and natural resources companies means that its performance will be closely tied to the performance of a particular market segment. The Fund’s concentration in these companies may present more risks than if it were broadly diversified over numerous industries and sectors of the economy. A downturn in these companies would have a larger impact on the Fund than on a mutual fund that does not concentrate in such companies. At times, the performance of these companies will lag the performance of other industries or the broader market as a whole.

n

Convertible Securities Risk — The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market and issuer risks that apply to the underlying common stock.

n

Depositary Receipts Risk — The issuers of unsponsored depositary receipts are not obligated to disclose information that is, in the United States, considered material. Therefore, there may be less information available regarding these issuers and there may not be a correlation between such information and the market value of the depositary receipts. Depositary receipts are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted.

n

Derivatives Risk — The Fund’s use of derivatives may reduce the Fund’s returns and/or increase volatility. Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. A risk of the Fund’s use of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value accurately. Derivatives may give rise to a form of leverage and may expose the Fund to greater risk and increase its costs. Recent legislation calls for new regulation of the derivatives markets. The extent and impact of the regulation is not yet known and may not be known for some time. New regulation may make derivatives more costly, may limit the availability of derivatives, or may otherwise adversely affect the value or performance of derivatives.

n

Emerging Markets Risk — Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging securities markets have far lower trading volumes and less liquidity than developed markets.

n

Equity Securities Risk — Stock markets are volatile. The price of equity securities fluctuates based on changes in a company’s financial condition and overall market and economic conditions.

n

Foreign Securities Risk — Foreign investments often involve special risks not present in U.S. investments that can increase the chances that the Fund will lose money. These risks include:

—

The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory oversight.

—

Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.

—

The economies of certain foreign markets may not compare favorably with the economy of the United States with respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of payments position.

—

The governments of certain countries may prohibit or impose substantial restrictions on foreign investments in their capital markets or in certain industries.

—

Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to the same extent as does the United States and may not have laws to protect investors that are comparable to U.S. securities laws.

—

Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of securities not typically associated with settlement and clearance of U.S. investments.

n

Geographic Concentration Risk — From time to time the Fund may invest a substantial amount of its assets in issuers located in a single country or a limited number of countries. If the Fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in those countries will have a significant impact on its investment performance. The Fund’s investment performance may also be more volatile if it concentrates its investments in certain countries, especially emerging market countries.

n

Leverage Risk — Some transactions may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet any required asset segregation requirements. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses leverage.

n

Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money.

n

Mid-Cap Securities Risk — The securities of mid-cap companies generally trade in lower volumes and are generally subject to greater and less predictable price changes than the securities of larger capitalization companies.

n

Non-Diversification Risk — The Fund is a non-diversified fund. Because the Fund may invest in securities of a smaller number of issuers, it may be more exposed to the risks associated with and developments affecting an individual issuer than a fund that invests more widely.

n

Small Cap Securities Risk — Small cap companies may have limited product lines or markets. They may be less financially secure than larger, more established companies. They may depend on a more limited management group than larger capitalized companies.

n

Warrants Risk — If the price of the underlying stock does not rise above the exercise price before the warrant expires, the warrant generally expires without any value and the Fund loses any amount it paid for the warrant. Thus, investments in warrants may involve substantially more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock.

 

As of 12/31/12 Average Annual Total Returns				1 Year				5 Years 1				10 Years 1
BlackRock Energy & Resources Portfolio — Investor A
Return Before Taxes					(14.88	)%			(5.65	)%			14.45	%
Return After Taxes on Distributions					(14.90	)%			(6.88	)%			12.49	%
Return After Taxes on Distributions and Sale of Shares					(9.65	)%			(5.13	)%			12.60	%
BlackRock Energy & Resources Portfolio — Investor B
Return Before Taxes					(14.80	)%			(5.56	)%			14.41	%
BlackRock Energy & Resources Portfolio — Investor C
Return Before Taxes					(11.73	)%			(5.31	)%			14.26	%
BlackRock Energy & Resources Portfolio — Institutional
Return Before Taxes					(9.87	)%			(4.29	)%			15.43	%
S&P 500 ® Index (Reflects no deduction for fees, expenses or taxes)					16.00	%			1.66	%			7.10	%
Wilshire 5000 Modified Energy Equal Weighted Index (Reflects no deduction for fees, expenses or taxes)					(0.49	)%			2.77	%			17.30	%

 

1

A portion of the Fund’s total return was attributable to proceeds received in the fiscal year ended September 30, 2009 in a settlement of litigation.

Name				Portfolio Manager of the Fund Since				Title
Denis Walsh, CFA				2005				Managing Director of BlackRock, Inc.
Daniel Neumann, CFA				2012				Managing Director of BlackRock, Inc.

 

Shareholder Fees (fees paid directly from your investment)

Investor A Shares

Investor C Shares

Institutional Shares

Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price)

5.25

%

None

None

Maximum Deferred Sales Charge (Load) (as percentage of offering price or redemption proceeds, whichever is lower)

None

1

1.00

% 2

None

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)				Investor A Shares				Investor C Shares				Institutional Shares
Management Fee					0.75	%			0.75	%			0.75	%
Distribution and/or Service (12b-1) Fees					0.25	%			1.00	%		None
Other Expenses					1.86	%			1.81	%			1.60	%
Other Expenses of the Fund				1.85%				1.80%				1.59%
Other Expenses of the Subsidiary				0.01%				0.01%				0.01%
Total Annual Fund Operating Expenses					2.86	%			3.56	%			2.35	%
Fee Waivers and/or Expense Reimbursements 3					(1.37	)%			(1.29	)%			(1.11	)%
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements 3					1.49	%			2.27	%			1.24	%

 

1

A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at time of purchase as part of an investment of $1,000,000 or more.

2

There is no CDSC on Investor C Shares after one year.

3

As described in the “Management of the Funds” section of the Fund’s prospectus on pages 53-58, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) as a percentage of average daily net assets to 1.49% (for Investor A Shares), 2.27% (for Investor C Shares) and 1.24% (for Institutional Shares) until February 1, 2014. The Fund may have to repay some of these waivers and/or reimbursements to BlackRock in the following two years. The agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund.

				1 Year				3 Years				5 Years				10 Years
Investor A Shares				$	669			$	1,242			$	1,840			$	3,450
Investor C Shares				$	330			$	972			$	1,736			$	3,743
Institutional Shares				$	126			$	627			$	1,155			$	2,601

 

				1 Year				3 Years				5 Years				10 Years
Investor C Shares				$	230			$	972			$	1,736			$	3,743

 

n

Concentration Risk — The Fund’s strategy of concentrating in gold-related companies means that its performance will be closely tied to the performance of a particular market segment. The Fund’s concentration in these companies may present more risks than if it were broadly diversified over numerous industries and sectors of the economy. A downturn in these companies would have a greater impact on the Fund than on a mutual fund that does not concentrate in such companies. At times, the performance of these companies will lag the performance of other industries or the broader market as a whole.

n

Emerging Markets Risk — Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging securities markets have far lower trading volumes and less liquidity than developed markets.

n

Equity Securities Risk — Stock markets are volatile. The price of equity securities fluctuates based on changes in a company’s financial condition and overall market and economic conditions.

n

Foreign Securities Risk — Foreign investments often involve special risks not present in U.S. investments that can increase the chances that the Fund will lose money. These risks include:

—

The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory oversight.

—

Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.

—

The economies of certain foreign markets may not compare favorably with the economy of the United States with respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of payments position.

—

The governments of certain countries may prohibit or impose substantial restrictions on foreign investments in their capital markets or in certain industries.

—

Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to the same extent as does the United States and may not have laws to protect investors that are comparable to U.S. securities laws.

—

Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of securities not typically associated with settlement and clearance of U.S. investments.

n

Gold and Other Precious Metal-Related Securities Risk — The price of gold and other precious metals and of gold and other precious metal-related securities historically have been very volatile. The high volatility of gold and other precious metal prices may adversely affect the financial condition of companies involved with gold and other precious metals. The production and sale of precious metals by governments or central banks or other larger holders can be affected by various economic, financial, social and political factors, which may be unpredictable and may have a significant impact on the supply and prices of precious metals. The largest producers of gold are China, Australia, the Republic of South Africa, the United States and the Commonwealth of Independent States (which includes Russia and certain other countries that were part of the former Soviet Union). Economic and political conditions in those countries in particular may have a direct effect on the production and marketing of gold and on sales of central bank gold holdings.

Some gold and precious metals mining operation companies may hedge their exposure to falls in gold and precious metals prices by selling forward future production, which may result in lower returns during periods when the price of gold and precious metals increases. Other factors that may affect the price of gold and other precious metals and securities related to them include changes in inflation, the outlook for inflation and changes in industrial and commercial demand for precious metals.

In addition, in many gold-producing countries, the activities of companies engaged in gold mining are subject to the policies adopted by government officials and agencies and are subject to national and international political and economic developments. Moreover, political, social and economic conditions in many gold-producing countries are

somewhat unsettled, which may pose certain risks to the Fund in addition to the risks described above in “Emerging Markets Risk” and “Foreign Securities Risk” because the Fund may hold a portion of its assets in securities of issuers in such countries.

n

Investment in Other Investment Companies Risk — As with other investments, investments in other investment companies, including ETFs, are subject to market and selection risk. In addition, if the Fund acquires shares of investment companies, shareholders bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of the investment companies. To the extent the Fund is held by an affiliated fund, the ability of the Fund itself to hold other investment companies may be limited.

n

Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money.

n

Non-Diversification Risk — The Fund is a non-diversified fund. Because the Fund may invest in securities of a smaller number of issuers, it may be more exposed to the risks associated with and developments affecting an individual issuer than a fund that invests more widely.

n

Subsidiary Risk — By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The instruments related to gold and other precious metals-related securities held by the Subsidiary are generally subject to the same risks that apply to similar investments if held directly by the Fund (see “Gold and Other Precious Metal-Related Securities Risk” above). There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”), and, unless otherwise noted in this prospectus, is not subject to all the investor protections of the Investment Company Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the Subsidiary are both managed by BlackRock, making it unlikely that the Subsidiary will take action contrary to the interests of the Fund and its shareholders. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate as described in this prospectus and the SAI and could adversely affect the Fund.

 

As of 12/31/12 Average Annual Total Returns				1 Year				Since Inception (May 26, 2010)
BlackRock World Gold Fund — Investor A
Return Before Taxes					(12.55	)%		(2.26		)%
Return After Taxes on Distributions					(12.73	)%		(2.61		)%
Return After Taxes on Distributions and Sale of Shares					(7.92	)%		(2.04		)%
BlackRock World Gold Fund — Investor C
Return Before Taxes					(9.34	)%		(1.01		)%
BlackRock World Gold Fund — Institutional
Return Before Taxes					(7.44	)%		0.01		%
FTSE Gold Mines Index
(reflects no deduction for fees, expenses or taxes)					(15.43	)%		(4.81		)%

 

Name				Portfolio Manager of the Fund Since		Title
Evy Hambro				2010		Managing Director of BlackRock, Inc.
Catherine Raw, CFA				2010		Managing Director of BlackRock, Inc.

 

Investor A and Investor C Shares

Investor B Shares 1

Institutional Shares

Minimum Initial Investment

$1,000 for all accounts except: · $250 for certain fee-based programs. · $100 for retirement plans. · $50, if establishing an Automatic Investment Plan.

Available only through exchanges and dividend reinvestments by current holders and for purchase by certain qualified employee benefit plans.

$2 million for institutions and individuals. Institutional Shares are available to clients of registered investment advisors who have $250,000 invested in the Fund.

Minimum Additional Investment

$50 for all accounts except certain retirement plans and payroll deduction programs may have a lower minimum.

N/A

No subsequent minimum.

 

1

Investor B Shares are currently offered only by All-Cap Energy & Resources and Energy & Resources.

n

identifying companies and industries that appear to have the potential for above-average long-term performance based on projections of supply and demand of a resource and the state of the market; and

n

identifying companies that are expected to show above-average growth over the long term as well as those that appear to be trading below their true worth.

 

n

identifying companies and industries that appear to have the potential for above-average long-term performance based on projections of supply and demand of a resource and the state of the market; and

n

identifying companies that are expected to show above-average growth over the long-term as well as those that appear to be trading below their true worth.

 

n

Common stock

n

Preferred stock

n

Securities convertible into common stock

n

Rights to subscribe for common stock

n

Derivative securities or instruments, such as options, the value of which is based on a common stock or group of common stocks

n

Depositary receipts

 

n

Borrowing — Each Fund may borrow from banks as a temporary measure for extraordinary or emergency purposes, including to meet redemptions, for the payment of dividends, for share repurchases or for the clearance of transactions.

n

Debt Securities — Debt securities include fixed income securities issued by companies, as well as U.S. and foreign sovereign debt obligations. When choosing debt securities, Fund management considers various factors including the credit quality of issuers and yield analysis. Each Fund may invest in debt securities that are rated below investment grade, which are commonly known as junk bonds. Each of All-Cap Energy & Resources and Energy & Resources will limit its investments in junk bonds to no more than 10% of its total assets. Split rated bonds, which are bonds that receive different ratings from two or more rating agencies, will be considered to have the higher credit rating.

n

Illiquid/Restricted Securities — Each Fund may invest up to 15% of its net assets in illiquid securities that it cannot sell within seven days at approximately current value. Each Fund may also invest in restricted securities, which are securities that cannot be offered for public resale unless registered under the applicable securities laws or that have a contractual restriction that prohibits or limits their resale ( i.e. , Rule 144A securities). They may include private placement securities that have not been registered under the applicable securities laws. Restricted securities may not be listed on an exchange and may have no active trading market and therefore may be considered to be illiquid. Rule 144A securities are restricted securities that can be resold to qualified institutional buyers but not to the general public and may be considered to be liquid securities.

n

Rights — Each Fund may purchase securities pursuant to the exercise of subscription rights, which allow an issuer’s existing shareholders to purchase additional common stock at a price substantially below the market price of the shares.

n

Securities Lending — Each Fund may lend securities with a value up to 33 1 ⁄ 3 % of its total assets to financial institutions that provide cash or securities issued or guaranteed by the U.S. government as collateral.

n

When-Issued and Delayed Delivery Securities and Forward Commitments — The purchase or sale of securities on a when-issued basis or on a delayed delivery basis or through a forward commitment involves the purchase or sale of securities by a Fund at an established price with payment and delivery taking place in the future. Each Fund enters into these transactions to obtain what is considered an advantageous price to the Fund at the time of entering into the transaction.

n

Investment Companies — Each Fund has the ability to invest in other investment companies, such as exchange-traded funds, unit investment trusts, and open-end and closed-end funds. Each Fund may invest in affiliated investment companies including affiliated money market funds and affiliated exchange traded funds.

n

Money Market Securities — Each Fund may invest in high quality money market securities pending investments or when it expects to need cash to pay redeeming shareholders. A Fund will not be deemed to deviate from its normal strategies if it holds these securities pending investments.

n

Temporary Defensive Strategies — It is possible that in extreme market conditions each Fund temporarily may invest some or all of its assets in high quality money market securities. Such a temporary defensive strategy would be inconsistent with a Fund’s primary investment strategies. The reason for acquiring money market securities would be to avoid market losses. However, if market conditions improve, this strategy could result in reducing the potential gain from the market upswing, thus reducing the Fund’s opportunity to achieve its investment objective.

n

Asset-Based Securities — The Fund may invest in asset-based securities. These are securities whose principal amount, redemption terms or conversion terms are related to the market price of some natural resource asset, such as gold bullion. The Fund will only purchase asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated, investment grade or are issued by issuers that BlackRock has determined to be of similar creditworthiness. The Fund has no maturity restrictions. The Fund may also invest in asset-based securities the potential return of which is based on the change in a specified commodity price. The Fund may, for example, invest in a debt security that pays a variable amount of interest or principal based on the current level of a natural resource commodity, such as gold or oil.

n

Convertible Securities — The Fund may invest in convertible securities. Convertible securities generally are debt securities or preferred stock that may be converted into common stock. Convertible securities typically pay current income as either interest (debt security convertibles) or dividends (preferred stock). A convertible’s value usually reflects both the stream of current income payments and the market value of the underlying common stock.

n

Depositary Receipts — The Fund may invest in securities of foreign issuers in the form of depositary receipts or other securities that are convertible into securities of foreign issuers. American Depositary Receipts are receipts typically issued by an American bank or trust company that evidence underlying securities issued by a foreign corporation. European Depositary Receipts (issued in Europe) and Global Depositary Receipts (issued throughout the world) each evidence a similar ownership arrangement. The Fund may invest in unsponsored depositary receipts.

n

Derivatives — Derivatives are financial instruments whose value is derived from another security, a commodity, a currency or an index. The Fund or the Subsidiary may use derivatives, including options, futures, indexed securities, inverse securities, swaps and forward contracts both to seek to increase the return of the Fund or the Subsidiary and to hedge (or protect) the value of its assets against adverse movements in currency exchange rates, interest rates and movements in the securities markets. The Fund or the Subsidiary may purchase put and call options and write covered put and covered call options on the types of securities or instruments in which it may invest. The use of options, futures, indexed securities, inverse securities, swaps and forward contracts can be effective in protecting or enhancing the value of the Fund’s assets.

n

Indexed and Inverse Securities — The Fund may invest in securities the potential return of which is based on the change in a specified interest rate or equity index (an “indexed security”). For example, the Fund may invest in a security that pays a variable amount of interest or principal linked to the movement in the price of gold or securities issued by gold-mining companies. The Fund may also invest in indexed securities the potential return of which is based inversely on the change in a specified interest rate or equity index. The Fund may also invest in securities whose return is inversely related to changes in an interest rate or index (“inverse securities”). In general, the return on inverse securities will decrease when the underlying index or interest rate goes up and increase when that index or interest rate goes down.

n

Repurchase Agreements and Purchase and Sale Contracts — The Fund may enter into certain types of repurchase agreements or purchase and sale contracts. Under a repurchase agreement, the seller agrees to repurchase a security at a mutually agreed-upon time and price. A purchase and sale contract is similar to a repurchase agreement, but purchase and sale contracts also provide that the purchaser receives any interest on the security paid during the period.

n

Short Sales — The Fund may make short sales of securities, either as a hedge against potential declines in value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value. A short sale is a transaction in which the Fund sells securities borrowed from others with the expectation that the price of the security will fall before the Fund must purchase the security to return it to the lender. The Fund will not make a short sale if, after giving effect to such sale, the market value of all securities sold short exceeds 10% of

the value of its total assets. The Fund may also make short sales “against-the-box” without regard to this restriction. In this type of short sale, at the time of the sale, the Fund owns or has the immediate and unconditional right to acquire the identical security at no additional cost.

n

Temporary Defensive Strategies — For temporary defensive purposes during extreme market conditions, the Fund may hold cash or invest in U.S. Government securities, and money market securities including repurchase agreements. Fund management will hold these temporary investments in the proportions it believes are best considering the prevailing market and economic conditions. These investments may prevent the Fund from achieving its investment objective.

n

Junk bonds may be issued by less creditworthy issuers. Issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of investment grade bonds. In the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of junk bond holders, leaving few or no assets available to repay junk bond holders.

n

Prices of junk bonds are subject to extreme price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater impact on the prices of junk bonds than on other higher rated fixed- income securities.

n

Issuers of junk bonds may be unable to meet their interest or principal payment obligations because of an economic downturn, specific issuer developments, or the unavailability of additional financing.

n

Junk bonds frequently have redemption features that permit an issuer to repurchase the security from the Fund before it matures. If the issuer redeems junk bonds, the Fund may have to invest the proceeds in bonds with lower yields and may lose income.

n

Junk bonds may be less liquid than higher rated fixed-income securities, even under normal economic conditions. There are fewer dealers in the junk bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers. Because they are less liquid, judgment may play a greater role in valuing certain of the Fund’s securities than is the case with securities trading in a more liquid market.

n

The Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer.

Investor A

Investor B 2

Investor C 3,4

Institutional

Availability

Generally available through financial intermediaries.

Available only through exchanges and dividend reinvestments by current holders and for purchase by certain qualified employee benefit plans.

Generally available through financial intermediaries.

Limited to certain investors, including: · Current Institutional shareholders that meet certain requirements. · Certain retirement plans. · Participants in certain programs sponsored by Black Rock or its affiliates, or other financial intermediaries. · Certain employees and affiliates of Black Rock or its affiliates.

Minimum Investment

$1,000 for all accounts except: · $250 for certain fee-based programs. · $100 for retirement plans. · $50, if establishing an Automatic Investment Plan.

Investor B Shares are not generally available for purchase (see above).

$1,000 for all accounts except: · $250 for certain fee-based programs. · $100 for retirement plans. · $50, if establishing an Automatic Investment Plan.

$2 million for institutions and individuals. Institutional Shares are available to clients of registered investment advisors who have $250,000 invested in the Fund.

Initial Sales Charge?

Yes. Payable at time of purchase. Lower sales charges are available for larger investments.

No. Entire purchase price is invested in shares of the Fund.

No. Entire purchase price is invested in shares of the Fund.

No. Entire purchase price is invested in shares of the Fund.

Deferred Sales Charge?

No. (May be charged for purchases of $1 million or more that are redeemed within eighteen months.)

Yes. Payable if you redeem within six years of purchase.

Yes. Payable if you redeem within one year of purchase.

No.

Distribution and Service (12b-1) Fees?

No Distribution Fee. 0.25% Annual Service Fee.

0.75% Annual Distribution Fee. 0.25% Annual Service Fee.

0.75% Annual Distribution Fee. 0.25% Annual Service Fee.

No.

Redemption Fees?

No.

No.

No.

No.

Conversion to Investor A Shares?

N/A

Yes, automatically after approximately eight years.

No.

No.

Advantage

Makes sense for investors who are eligible to have the sales charge reduced or eliminated or who have a long-term investment horizon because there are no ongoing distribution fees.

No up-front sales charge so you start off owning more shares.

No up-front sales charge so you start off owning more shares. These shares may make sense for investors who have a shorter investment horizon relative to Investor A Shares.

No up-front sales charge so you start off owning more shares.

 

Investor A

Investor B 2

Investor C 3,4

Institutional

Disadvantage

You pay a sales charge up-front, and therefore you start off owning fewer shares.

Limited availability. You pay ongoing distribution fees each year you own Investor B Shares, which means that over the long term you can expect higher total fees per share than Investor A Shares and, as a result, lower total performance.

You pay ongoing distribution fees each year you own Investor C Shares, which means that over the long term you can expect higher total fees per share than Investor A Shares and, as a result, lower total performance.

Limited availability.

 

1

Please see “Details About the Share Classes” for more information about each share class.

2

World Gold does not offer Investor B Shares.

3

If you establish a new account directly with a Fund and do not have a financial intermediary associated with your account, you may only invest in Investor A Shares. Applications without a financial intermediary that select Investor C Shares will not be accepted.

4

The Funds will not accept a purchase order of $500,000 or more for Investor C Shares. Your financial intermediary may set a lower maximum for Investor C Shares.

Your Investment				Sales Charge as a % of Offering Price				Sales Charge as a % of Your Investment 1				Dealer Compensation as a % of Offering Price
Less than $25,000				5.25%				5.54%				5.00%
$25,000 but less than $50,000				4.75%				4.99%				4.50%
$50,000 but less than $100,000				4.00%				4.17%				3.75%
$100,000 but less than $250,000				3.00%				3.09%				2.75%
$250,000 but less than $500,000				2.50%				2.56%				2.25%
$500,000 but less than $750,000				2.00%				2.04%				1.75%
$750,000 but less than $1,000,000				1.50%				1.52%				1.25%
$1,000,000 and over 2				0.00%				0.00%				— 2

 

1

Rounded to the nearest one-hundredth percent.

2

If you invest $1,000,000 or more in Investor A Shares, you will not pay an initial sales charge. In that case, BlackRock compensates the financial intermediary from its own resources. However, if you redeem your shares within 18 months after purchase, you may be charged a deferred sales charge of 1.00% of the lesser of the original cost of the shares being redeemed or your redemption proceeds. Such deferred sales charge may be waived in connection with certain fee-based programs.

Qualifying Holdings:

Investor Shares, Institutional Shares (in most BlackRock Funds) and investments in the BlackRock CollegeAdvantage 529 Program

n

Authorized qualified employee benefit plans or savings plans;

n

Rollovers of current investments through authorized qualified employee benefit plans or savings plans, provided the shares are transferred to the same BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over proceeds are contributed to a BlackRock individual retirement account (“IRA”) through an account directly with the Fund;

n

Persons investing through an authorized payroll deduction plan;

n

Persons investing through an authorized investment plan for organizations that operate under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”);

n

Registered investment advisers, trust companies and bank trust departments exercising discretionary investment authority with respect to amounts to be invested in the Fund;

n

Persons participating in a fee-based program (such as a wrap account) under which they (i) pay advisory fees to a broker-dealer or other financial institution or (ii) pay fees to a broker-dealer or other financial institution for providing transaction processing and other administrative services, but not investment advisory services;

n

Financial intermediaries who have entered into an agreement with the Distributor and have been approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not charge a transaction fee;

n

Persons associated with the Fund, the Fund’s manager, the Fund’s sub-advisers, transfer agent, Distributor, fund accounting agents, Barclays PLC (“Barclays”) and their respective affiliates (to the extent permitted by these firms) including: (a) officers, directors and partners; (b) employees and retirees; (c) employees of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate family members of such persons; and (e) any trust, pension, profit-sharing or other benefit plan for any of the persons set forth in (a) through (d); and

n

Certain state sponsored 529 college savings plans.

Years Since Purchase				Sales Charge 1
0 – 1				4.50%
1 – 2				4.00%
2 – 3				3.50%
3 – 4				3.00%
4 – 5				2.00%
5 – 6				1.00%
6 and thereafter				0.00%

 

1

The percentage charge will apply to the lesser of the original cost of the shares being redeemed or the proceeds of your redemption. Not all BlackRock Funds have identical deferred sales charge schedules. If you exchange your shares for shares of another BlackRock Fund, the original sales charge schedule will apply.

n

Redemptions of shares purchased through authorized qualified employee benefit plans or savings plans and rollovers of current investments in a Fund through such plans;

n

Exchanges pursuant to the exchange privilege, as described in “How to Exchange Shares or Transfer your Account”;

n

Redemptions made in connection with minimum required distributions from IRA or 403(b)(7) accounts due to the shareholder reaching the age of 70 1 ⁄ 2 ;

n

Certain post-retirement withdrawals from an IRA or other retirement plan if you are over 59 1 ⁄ 2 years old;

n

Redemptions made with respect to certain retirement plans sponsored by a Fund, BlackRock or an affiliate;

n

Redemptions resulting from shareholder death as long as the waiver request is made within one year of death or, if later, reasonably promptly following completion of probate (including in connection with the distribution of account assets to a beneficiary of the decedent);

n

Withdrawals resulting from shareholder disability (as defined in the Internal Revenue Code) as long as the disability arose subsequent to the purchase of the shares;

n

Involuntary redemptions made of shares in accounts with low balances;

n

Certain redemptions made through the Systematic Withdrawal Plan offered by a Fund, BlackRock or an affiliate;

n

Redemptions related to the payment of BNY Mellon Investment Servicing Trust Company custodial IRA fees; and

n

Redemptions when a shareholder can demonstrate hardship, in the absolute discretion of the Fund.

n

Investors who currently own Institutional Shares of a Fund may make additional purchases of Institutional Shares of that Fund directly from the Fund;

n

Institutional and individual retail investors with a minimum investment of $2 million who purchase directly from a Fund;

n

Certain qualified retirement plans;

n

Investors in selected fee based programs;

n

Clients of registered investment advisers who have $250,000 invested in the Fund;

n

Trust department clients of PNC Bank and Bank of America, N.A. and their affiliates for whom they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans); (ii) otherwise have investment discretion; or (iii) act as custodian for at least $2 million in assets;

n

Unaffiliated banks, thrifts or trust companies that have agreements with the Distributor;

n

Holders of certain Merrill Lynch & Co., Inc. (“Merrill Lynch”) sponsored unit investment trusts (“UITs”) who reinvest dividends received from such UITs in shares of a Fund; and

n

Employees, officers and directors/trustees of BlackRock, Inc., BlackRock Funds, The PNC Financial Services Group, Inc. (“PNC”), Merrill Lynch, Barclays or their respective affiliates.

n

Responding to customer questions on the services performed by the Financial Intermediary and investments in Investor A, Investor B and Investor C Shares;

n

Assisting customers in choosing and changing dividend options, account designations and addresses; and

n

Providing other similar shareholder liaison services.

				Your Choices				Important Information for You to Know
Initial Purchase				First, select the share class appropriate for you				Refer to the “Share Classes at a Glance” table in this prospectus (be sure to read this prospectus carefully). When you place your initial order, you must indicate which share class you select (if you do not specify a class and do not qualify to purchase Institutional Shares, you will receive Investor A Shares).
								Certain factors, such as the amount of your investment, your time frame for investing, and your financial goals, may affect which share class you choose. Your financial intermediary can help you determine which share class is appropriate for you.
				Next, determine the amount of your investment				Refer to the minimum initial investment in the “Share Classes at a Glance” table in this prospectus. Be sure to note the maximum investment amounts in Investor C Shares.
								See “Account Information — Details About the Share Classes” for information on lower initial investment requirements for certain Fund investors if their purchase, combined with purchases by other investors received together by a Fund, meets the minimum investment requirement.
				Have your financial intermediary submit your purchase order				The price of your shares is based on the next calculation of a Fund’s net asset value after your order is placed. Any purchase orders placed prior to the close of business on the New York Stock Exchange (the “Exchange”) (generally 4:00 p.m. Eastern time) will be priced at the net asset value determined that day. Certain financial intermediaries, however, may require submission of orders prior to that time. Purchase orders placed after that time will be priced at the net asset value determined on the next business day. A broker-dealer or financial institution maintaining the account in which you hold shares may charge a separate account, service or transaction fee on the purchase or sale of Fund shares that would be in addition to the fees and expenses shown in the Fund’s “Fees and Expenses” table.
								The Funds may reject any order to buy shares and may suspend the sale of shares at any time. Financial intermediaries may charge a processing fee to confirm a purchase.
				Or contact BlackRock (for accounts held directly with BlackRock)				To purchase shares directly from BlackRock, call (800) 441-7762 and request a new account application. Mail the completed application along with a check payable to “BlackRock Funds” to the Transfer Agent at the address on the application.
Add to Your Investment				Purchase additional shares				For Investor A and Investor C Shares, the minimum investment for additional purchases is generally $50 for all accounts except that certain retirement plans and payroll deduction programs may have a lower minimum for additional purchases. Institutional Shares have no minimum for additional purchases.
				Have your financial intermediary submit your purchase order for additional shares				To purchase additional shares you may contact your financial intermediary. For more details on purchasing by Internet see below.
				Or contact BlackRock (for accounts held directly with BlackRock)				Purchase by Telephone: Call (800) 441-7762 and speak with one of our representatives. The Funds have the right to reject any telephone request for any reason. Purchase in Writing: You may send a written request to BlackRock at the address on the back cover of this prospectus.
								Purchase by VRU: Investor Shares may also be purchased by use of the Fund’s automated voice response unit service (“VRU”) at (800) 441-7762.

 

				Your Choices				Important Information for You to Know
Add to Your Investment (continued)				Or contact BlackRock (for accounts held directly with BlackRock) (continued)				Purchase by Internet : You may purchase your shares, and view activity in your account, by logging onto the BlackRock website at www.blackrock.com/funds. Purchases made on the Internet using the Automated Clearing House Network (“ACH”) will have a trade date that is the day after the purchase is made. Certain institutional clients’ purchase orders for Institutional Shares placed by wire prior to the close of business on the Exchange will be priced at the net asset value determined that day. Contact your financial intermediary or BlackRock for further information. The Funds limit Internet purchases in shares of a Fund to $25,000 per trade. Different maximums may apply to certain institutional investors.
								Please read the On-Line Services Disclosure Statement and User Agreement, the Terms and Conditions page and the Consent to Electronic Delivery Agreement (if you consent to electronic delivery), before attempting to transact online.
								The Funds employ reasonable procedures to confirm that transactions entered over the Internet are genuine. By entering into the User Agreement with a Fund in order to open an account through the website, the shareholder waives any right to reclaim any losses from a Fund or any of its affiliates, incurred through fraudulent activity.
				Acquire additional shares by reinvesting dividends and capital gains				All dividends and capital gains distributions are automatically reinvested without a sales charge. To make any changes to your dividend and/or capital gains distributions options, please call (800) 441-7762, or contact your financial intermediary (if your account is not held directly with BlackRock).
				Participate in the Automatic Investment Plan (“AIP”)				BlackRock’s Automatic Investment Plan (“AIP”) allows you to invest a specific amount on a periodic basis from your checking or savings account into your investment account. Refer to the “Account Services and Privileges” section of this
								prospectus for additional information.
How to Pay for Shares				Making payment for purchases				Payment for an order must be made in Federal funds or other immediately available funds by the time specified by your financial intermediary, but in no event later than 4:00 p.m. (Eastern time) on the third business day (in the case of Investor Shares) or the first business day (in the case of Institutional Shares) following BlackRock’s receipt of the order. If payment is not received by this time, the order will be canceled and you and your financial intermediary will be responsible for any loss to the Funds.
								For shares purchased directly from a Fund, a check payable to BlackRock Funds which bears the name of the Fund you are purchasing must accompany a completed purchase application. There is a $20 fee for each purchase check that is returned due to insufficient funds. The Funds do not accept third-party checks. You may also wire Federal funds to a Fund to purchase shares, but you must call (800) 441-7762 before doing so to confirm the wiring instructions.

 

				Your Choices				Important Information for You to Know
Full or Partial Redemption of Shares				Have your financial intermediary submit your sales order				You can make redemption requests through your financial intermediary. Shareholders should indicate whether they are redeeming Investor A, Investor B, Investor C or Institutional Shares. The price of your shares is based on the next calculation of a Fund’s net asset value after your order is placed. For your redemption request to be priced at the net asset value on the day of your request, you must submit your request to your financial intermediary prior to that day’s close of business on the Exchange (generally 4:00 p.m. Eastern time). Certain financial intermediaries, however, may require submission of orders prior to that time. Any redemption request placed after that time will be priced at the net asset value at the close of business on the next business day.
								Financial intermediaries may charge a fee to process a redemption of shares. Shareholders should indicate which class of shares they are redeeming. The Funds may reject an order to sell shares under certain circumstances.
				Selling shares held directly with BlackRock				Methods of Redeeming: Redeem by Telephone: You may sell Investor Shares held directly at BlackRock by telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments by check or (ii) $250,000 for payments through ACH or wire transfer. Certain redemption requests, such as those in excess of these amounts, must be in writing with a medallion signature guarantee. For Institutional Shares, certain redemption requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association, national securities exchange or registered securities association. A notary public seal will not be acceptable.
								The Funds, their administrators and the Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine. The Funds and their service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that are reasonably believed to be genuine in accordance with such procedures. A Fund may refuse a telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.
								Redeem by VRU: Investor Shares may also be redeemed by use of the Funds’ automated VRU Service. Payment for Investor Shares redeemed by VRU may be made for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.
								Redeem by Internet: You may redeem in your account by logging onto the BlackRock website at www.blackrock.com/funds. Proceeds from Internet redemptions may be sent via check, ACH or wire to the bank account of record. Payment for Investor Shares redeemed by Internet may be made for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire. Different maximums may apply to investors in Institutional Shares.

 

				Your Choices				Important Information for You to Know
Full or Partial Redemption of Shares (continued)				Selling shares held directly with BlackRock (continued)				Redeem in Writing: You may sell shares held with BlackRock by writing to BlackRock, P.O. Box 9819, Providence, Rhode Island 02940-8019 or for overnight delivery, 4400 Computer Drive, Westborough, Massachusetts 01588. All shareholders on the account must sign the letter. A medallion signature guarantee will generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association, national securities exchange or registered securities association. A notary public seal will not be acceptable. If you hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH or wire to the bank account of record.
								Payment of Redemption Proceeds: Redemption proceeds may be paid by check or, if a Fund has verified banking information on file, through ACH or by wire transfer.
								Payment by Check: BlackRock will normally mail redemption proceeds within seven days following receipt of a properly completed request. Shares can be redeemed by telephone and the proceeds sent by check to the shareholder at the address on record. Shareholders will pay $15 for redemption proceeds sent by check via overnight mail. You are responsible for any additional charges imposed by your bank for this service.
								Payment by Wire Transfer: Payment for redeemed shares for which a redemption order is received before 4:00 p.m. (Eastern time) on a business day is normally made in Federal funds wired to the redeeming shareholder on the next business day, provided that the Funds’ custodian is also open for business. Payment for redemption orders received after 4:00 p.m. (Eastern time) or on a day when the Funds’ custodian is closed is normally wired in Federal funds on the next business day following redemption on which the Fund’s custodian is open for business. The Funds reserve the right to wire redemption proceeds within seven days after receiving a redemption order if, in the judgment of the Fund, an earlier payment could adversely affect the Fund.
								If a shareholder has given authorization for expedited redemption, shares can be redeemed by Federal wire transfer to a single previously designated bank account. Shareholders will pay $7.50 for redemption proceeds sent by Federal wire transfer. You are responsible for any additional charges imposed by your bank for this service. No charge for wiring redemption payments with respect to Institutional Shares is imposed by the Funds.
								The Funds are not responsible for the efficiency of the Federal wire system or the shareholder’s firm or bank. To change the name of the single, designated bank account to receive wire redemption proceeds, it is necessary to send a written request to the Fund at the address on the back cover of this prospectus.
								Payment by ACH: Redemption proceeds may be sent to the shareholder’s bank account (checking or savings) via ACH. Payment for redeemed shares for which a redemption order is received before 4:00 p.m. (Eastern time) on a business day is normally sent to the redeeming shareholder the next business day, with receipt at the receiving bank within the next two business days (48-72 hours); provided that the Funds’ custodian is also open for business. Payment for redemption orders received after 4:00 p.m. (Eastern time) or on a day when the Funds’ custodian is closed is normally sent on the next business day following redemption on which the Funds’ custodian is open for business.
								The Funds reserve the right to send redemption proceeds within seven days after receiving a redemption order if, in the judgment of a Fund, an earlier payment could adversely affect the Fund. No charge for sending redemption payments via ACH is imposed by the Funds.
								* * *
								If you make a redemption request before the Fund has collected payment for the purchase of shares, the Fund may delay mailing your proceeds. This delay will usually not exceed ten days.

 

				Your Choices				Important Information for You to Know
Exchange Privilege				Selling shares of one fund to purchase shares of another BlackRock fund (“exchanging”)				Investor Shares of the Funds are generally exchangeable for shares of the same class of another BlackRock Fund. You can exchange $1,000 or more of Investor A, Investor B, or Investor C Shares from one fund into the same class of another fund which offers that class of shares (you can exchange less than $1,000 of Investor Shares if you already have an account in the fund into which you are exchanging).
								Investors who currently own Institutional Shares of a Fund may make exchanges into Institutional Shares of other funds except for investors holding shares through certain client accounts at financial intermediaries that are omnibus with the Fund and do not meet applicable minimums. There is no required minimum amount with respect to exchanges of Institutional Shares.
								You may only exchange into a share class and fund that are open to new investors or in which you have a current account if the fund is closed to new investors.
								Some of the BlackRock Funds impose a different deferred sales charge schedule. The CDSC will continue to be measured from the date of the original purchase. The CDSC schedule applicable to your original purchase will apply to the shares you receive in the exchange and any subsequent exchange.
								To exercise the exchange privilege you may contact your financial intermediary. Alternatively, if your account is held directly with BlackRock you may: (i) call (800) 441-7762 and speak with one of our representatives, (ii) make the exchange via the Internet by accessing your account online at www.blackrock.com/funds, or (iii) send a written request to the Fund at the address on the back cover of this prospectus. Please note, if you indicated on your New Account Application that you did not want the Telephone Exchange Privilege, you will not be able to place exchanges via the telephone until you update this option either in writing or by calling (800) 441-7762. The Funds have the right to reject any telephone request for any reason.
								Although there is currently no express limit on the number of exchanges that you can make, the exchange privilege may be modified or terminated at any time in the future. The Funds may suspend or terminate your exchange privilege at any time for any reason, including if a Fund believes, in its sole discretion, that you are engaging in market timing activities. See “Short-Term Trading Policy” below. For Federal income tax purposes a share exchange is a taxable event and a capital gain or loss may be realized. Please consult your tax adviser or other financial intermediary before making an exchange request.
Transfer Shares to Another Financial Intermediary				Transfer to a participating financial intermediary				You may transfer your shares of a Fund only to another financial intermediary that has an agreement with the Distributor. Certain shareholder services may not be available for the transferred shares. All future trading of these assets must be coordinated by the receiving firm. If your account is held directly with BlackRock, you may call
								(800) 441-7762 with any questions; otherwise please contact your financial intermediary to accomplish the transfer of shares.
				Transfer to a non-participating financial intermediary				You must either: · Transfer your shares to an account with the Fund; or · Sell your shares, paying any applicable deferred sales charge.
								If your account is held directly with BlackRock, you may call (800) 441-7762 with any questions; otherwise please contact your financial intermediary to accomplish the transfer of shares.

 

Automatic Investment Plan (“AIP”)				Allows systematic investments on a periodic basis from checking or savings account.				BlackRock’s AIP allows you to invest a specific amount on a periodic basis from your checking or savings account into your investment account. You may apply for this option upon account opening or by completing the Automatic Investment Plan application. The minimum investment amount for an automatic investment plan is $50 per portfolio. This is no longer available for purchase of Investor B Shares. If a shareholder has an AIP for purchase of Investor B Shares, the investor must redirect investment in Investor A or Investor C Shares.
Dividend Allocation Plan				Automatically invests your distributions into another BlackRock Fund of your choice pursuant to your instructions, without any fees or sales charges.				Dividend and capital gains distributions may be reinvested in your account to purchase additional shares or paid in cash. Using the Dividend Allocation Plan, you can direct your distributions to your bank account (checking or savings), to purchase shares of another fund at BlackRock without any fees or sales charges, or by check to special payee. Please call (800) 441-7762 for details. The fund into which you request your distributions be invested must be open to new purchases.
EZ Trader				Allows an investor to purchase or sell Investor Shares by telephone or over the Internet through ACH.				(NOTE: This option is offered to shareholders whose accounts are held directly with BlackRock. Please speak with your financial intermediary if your account is held elsewhere.) Prior to establishing an EZ Trader account, please contact your bank to confirm that it is a member of the ACH system. Once confirmed, complete an application, making sure to include the appropriate bank information, and return the application to the address listed on the form.
								Prior to placing a telephone or internet purchase or sale order, please contact (800) 441-7762 to confirm that your bank information has been updated on your account. Once this is established, you may place your request to sell shares with the Fund by telephone or Internet.
								Proceeds will be sent to your pre-designated bank account.
Systematic Exchange Plan				This feature can be used by investors to systematically exchange money from one fund to up to four other funds.				A minimum of $10,000 in the initial BlackRock Fund is required and investments in any additional funds must meet minimum initial investment requirements. For more information, please contact the Fund at (800) 441-7762.
Systematic Withdrawal Plan (“SWP”)				This feature can be used by investors who want to receive regular distributions from their accounts.				To start an SWP a shareholder must have a current investment of $10,000 or more in a BlackRock Fund. Shareholders can elect to receive cash payments of $50 or more at any interval they choose. Shareholders may sign up by completing the SWP Application Form, which may be obtained from BlackRock.
								Shareholders should realize that if withdrawals exceed income the invested principal in their account will be depleted.
								To participate in the SWP, shareholders must have their dividends reinvested. Shareholders may change or cancel the SWP at any time, with a minimum of 24 hours notice. If a shareholder purchases additional Investor A Shares of a fund at the same time he or she redeems shares through the SWP, that investor may lose money because of the sales charge involved. No CDSC will be assessed on redemptions of Investor Shares made through the SWP that do not exceed 12% of the account’s net asset value on an annualized basis. For example, monthly, quarterly, and semi-annual SWP redemptions of Investor Shares will not be subject to the CDSC if they do not exceed 1%, 3% and 6%, respectively, of an account’s net asset value on the redemption date. SWP redemptions of Investor Shares in excess of this limit will still pay any applicable CDSC.
								Ask your financial intermediary for details.

 

Reinstatement Privilege

If you redeem Investor A or Institutional Shares, and within 60 days buy new Investor A Shares of the same or another BlackRock Fund (equal to all or a portion of the redemption amount), you will not pay a sales charge on the new purchase amount. This right may be exercised once a year and within 60 days of the redemption, provided that the Investor A Share class of that fund is currently open to new investors or the shareholder has a current account in that closed fund. Shares will be purchased at the net asset value calculated at the close of trading on the day the request is received. To exercise this privilege, the Fund must receive written notification from the shareholder of record or the financial intermediary of record, at the time of purchase. Investors should consult a tax adviser concerning the tax consequences of exercising this reinstatement privilege.

 

n

Suspend the right of redemption if trading is halted or restricted on the Exchange or under other emergency conditions described in the Investment Company Act;

n

Postpone date of payment upon redemption if trading is halted or restricted on the Exchange or under other emergency conditions described in the Investment Company Act or if a redemption request is made before the Fund has collected payment for the purchase of shares;

n

Redeem shares for property other than cash if conditions exist which make cash payments undesirable in accordance with its rights under the Investment Company Act; and

n

Redeem shares involuntarily in certain cases, such as when the value of a shareholder account falls below a specified level.

Average Daily Net Assets				Rate of Management Fee
First $1 billion				0.750%
$1 billion – $2 billion				0.700%
$2 billion – $3 billion				0.675%
Greater than $3 billion				0.650%

 

				Contractual Caps 1 on Total Annual Fund Operating Expenses 2 (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses)				Total Annual Fund Operating Expenses 1 after giving effect to all applicable expense limitation provisions (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses)
All-Cap Energy & Resources
Investor A Shares				1.38%				1.34%
Investor B Shares				2.10%				2.10%
Investor C Shares				2.10%				2.07%
Institutional Shares				0.96%				0.94%
Energy & Resources
Investor A Shares				1.38%				1.34%
Investor B Shares				2.10%				2.10%
Investor C Shares				2.10%				2.07%
Institutional Shares				1.07%				0.99%
World Gold
Investor A Shares				1.49%				1.49%
Investor C Shares				2.27%				2.27%
Institutional Shares				1.24%				1.24%

 

1

As a percentage of average daily net assets.

2

The contractual caps are in effect until February 1, 2014. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of a Fund.

All-Cap Energy & Resources					0.75	%
Energy & Resources					0.74	%
World Gold					0.02	%

 

Portfolio Manager

Primary Role

Since

Title and Recent Biography

Denis Walsh, CFA

Jointly and primarily responsible for the day-to-day management of each Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund.

2005

Managing Director of BlackRock, Inc. since 2005; Managing Director of SSRM from 1999 to 2005.

Daniel Neumann, CFA

Jointly and primarily responsible for the day-to-day management of each Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund.

2012

Managing Director of BlackRock, Inc. since 2012; Director of BlackRock, Inc. from 2007 to 2011.

 

Portfolio Manager				Primary Role		Since		Title and Recent Biography
Evy Hambro				Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund		2010		Managing Director of BlackRock, Inc. since 2006 and Co-head of the BlackRock Natural Resources Equity team; Portfolio Manager of Merrill Lynch Investment Managers, L.P. (“MLIM”) and its predecessor from 1994 to 2006.
Catherine Raw, CFA				Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund		2010		Managing Director of BlackRock, Inc. since 2013; Director of BlackRock, Inc. from 2010 to 2013; Vice President of BlackRock, Inc. from 2006 to 2009; Associate Vice President of MLIM from 2003 to 2006.

 

 

				Institutional
				Year Ended September 30,
				2012				2011				2010				2009				2008
Per Share Operating Performance
Net asset value, beginning of year				$	12.14			$	13.76			$	12.46			$	16.20			$	19.40
Net investment income (loss) 1					0.05				0.01				0.02				0.02				0.24
Net realized and unrealized gain (loss)					1.32				(1.51	) 2			1.38	2			(2.14	) 2			(2.90	) 2
Net increase (decrease) from investment operations					1.37				(1.50	)			1.40				(2.12	)			(2.66	)
Dividends and distributions from:
Net investment income					—				(0.12	)			(0.10	)			—				(0.23	)
Net realized gain					—				—				—				(1.62	)			(0.31	)
Total dividends and distributions					—				(0.12	)			(0.10	)			(1.62	)			(0.54	)
Net asset value, end of year				$	13.51			$	12.14			$	13.76			$	12.46			$	16.20
Total Investment Return 3
Based on net asset value					11.29	%			(11.10	)% 4			11.32	% 4			(7.53	)% 4			(14.25	)% 4
Ratios to Average Net Assets
Total expenses					0.95	%			0.93	%			0.94	%			0.98	%			0.89	%
Total expenses excluding recoupment of past waived fees					0.95	%			0.91	%			0.93	%			0.97	%			0.89	%
Total expenses after fees waived, reimbursed and paid indirectly					0.94	%			0.93	%			0.93	%			0.93	%			0.89	%
Net investment income (loss)					0.34	%			0.03	%			0.16	%			0.17	%			1.14	%
Supplemental Data
Net assets, end of year (000)				$	272,779			$	400,269			$	420,071			$	328,434			$	510,804
Portfolio turnover					19	%			22	%			38	%			22	%			38	%

 

1

Based on average shares outstanding.

2

Includes redemption fees, which are less than $0.01 per share.

3

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Redemption fee of 2.00% is reflected in total return calculations. There was no impact to the return.

    

All-Cap Energy & Resources (continued)

				Investor A
				Year Ended September 30,
				2012				2011				2010				2009				2008
Per Share Operating Performance
Net asset value, beginning of year				$	11.90			$	13.50			$	12.24			$	16.01			$	19.18
Net investment income (loss) 1					(0.01	)			(0.06	)			(0.03	)			(0.02	)			0.17
Net realized and unrealized gain (loss)					1.30				(1.47	) 2			1.35	2			(2.13	) 2			(2.87	) 2
Net increase (decrease) from investment operations					1.29				(1.53	)			1.32				(2.15	)			(2.70	)
Dividends and distributions from:
Net investment income					—				(0.07	)			(0.06	)			—				(0.16	)
Net realized gain					—				—				—				(1.62	)			(0.31	)
Total dividends and distributions					—				(0.07	)			(0.06	)			(1.62	)			(0.47	)
Net asset value, end of year				$	13.19			$	11.90			$	13.50			$	12.24			$	16.01
Total Investment Return 3
Based on net asset value					10.84	%			(11.46	)% 4			10.84	% 4			(7.85	)% 4			(14.55	)% 4
Ratios to Average Net Assets
Total expenses					1.35	%			1.35	%			1.34	%			1.48	%			1.27	%
Total expenses excluding recoupment of past waived fees					1.35	%			1.28	%			1.32	%			1.45	%			1.27	%
Total expenses after fees waived, reimbursed and paid indirectly					1.34	%			1.34	%			1.34	%			1.34	%			1.26	%
Net investment income (loss)					(0.09	)%			(0.38	)%			(0.25	)%			(0.25	)%			0.81	%
Supplemental Data
Net assets, end of year (000)				$	137,765			$	187,017			$	207,523			$	178,364			$	267,422
Portfolio turnover					19	%			22	%			38	%			22	%			38	%

 

1

Based on average shares outstanding.

2

Includes redemption fees, which are less than $0.01 per share.

3

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Redemption fee of 2.00% is reflected in total return calculations. There was no impact to the return.

60

Financial Highlights (continued)

---

All-Cap Energy & Resources (continued)

				Investor B
				Year Ended September 30,
				2012				2011				2010				2009				2008
Per Share Operating Performance
Net asset value, beginning of year				$	11.45			$	13.03			$	11.84			$	15.68			$	18.82
Net investment income (loss) 1					(0.11	)			(0.18	)			(0.13	)			(0.09	)			0.01
Net realized and unrealized gain (loss)					1.25				(1.40	) 2			1.32	2			(2.13	) 2			(2.81	) 2
Net increase (decrease) from investment operations					1.14				(1.58	)			1.19				(2.22	)			(2.80	)
Dividends and distributions from:
Net investment income					—				—				—				—				(0.03	)
Net realized gain					—				—				—				(1.62	)			(0.31	)
Total dividends and distributions					—				—				—				(1.62	)			(0.34	)
Net asset value, end of year				$	12.59			$	11.45			$	13.03			$	11.84			$	15.68
Total Investment Return 3
Based on net asset value					9.96	%			(12.13	)% 4			10.05	% 4			(8.56	)% 4			(15.23	)% 4
Ratios to Average Net Assets
Total expenses					2.20	%			2.11	%			2.17	%			2.35	%			2.09	%
Total expenses excluding recoupment of past waived fees					2.19	%			2.09	%			2.16	%			2.33	%			2.09	%
Total expenses after fees waived, reimbursed and paid indirectly					2.10	%			2.10	%			2.10	%			2.06	%			2.04	%
Net investment income (loss)					(0.83	)%			(1.15	)%			(1.03	)%			(0.95	)%			0.06	%
Supplemental Data
Net assets, end of year (000)				$	15,162			$	18,872			$	27,113			$	30,873			$	42,399
Portfolio turnover					19	%			22	%			38	%			22	%			38	%

 

1

Based on average shares outstanding.

2

Includes redemption fees, which are less than $0.01 per share.

3

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Redemption fee of 2.00% is reflected in total return calculations. There was no impact to the return.

61

Financial Highlights (continued)

---

All-Cap Energy & Resources (concluded)

				Investor C
				Year Ended September 30,
				2012				2011				2010				2009				2008
Per Share Operating Performance
Net asset value, beginning of year				$	11.47			$	13.04			$	11.85			$	15.69			$	18.84
Net investment income (loss) 1					(0.10	)			(0.17	)			(0.13	)			(0.09	)			0.02
Net realized and unrealized gain (loss)					1.25				(1.40	) 2			1.32	2			(2.13	) 2			(2.82	) 2
Net increase (decrease) from investment operations					1.15				(1.57	)			1.19				(2.22	)			(2.80	)
Dividends and distributions from:
Net investment income					—				—				—				—				(0.04	)
Net realized gain					—				—				—				(1.62	)			(0.31	)
Total dividends and distributions					—				—				—				(1.62	)			(0.35	)
Net asset value, end of year				$	12.62			$	11.47			$	13.04			$	11.85			$	15.69
Total Investment Return 3
Based on net asset value					10.03	%			(12.04	)% 4			10.04	% 4			(8.54	)% 4			(15.21	)% 4
Ratios to Average Net Assets
Total expenses					2.08	%			2.05	%			2.08	%			2.23	%			2.02	%
Total expenses excluding recoupment of past waived fees					2.08	%			2.03	%			2.08	%			2.21	%			2.02	%
Total expenses after fees waived, reimbursed and paid indirectly					2.07	%			2.04	%			2.08	%			2.05	%			2.01	%
Net investment income (loss)					(0.79	)%			(1.08	)%			(1.00	)%			(0.95	)%			0.08	%
Supplemental Data
Net assets, end of year (000)				$	85,649			$	99,433			$	116,401			$	113,347			$	153,512
Portfolio turnover					19	%			22	%			38	%			22	%			38	%

 

1

Based on average shares outstanding.

2

Includes redemption fees, which are less than $0.01 per share.

3

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Redemption fee of 2.00% is reflected in total return calculations. There was no impact to the return.

62

Financial Highlights (continued)

---

Energy & Resources

				Institutional
				Year Ended September 30,
				2012				2011				2010				2009				2008
Per Share Operating Performance
Net asset value, beginning of year				$	31.70			$	34.98			$	32.61			$	51.31			$	63.42
Net investment income (loss) 1					(0.16	)			(0.08	)			0.05				(0.07	)			(0.13	)
Net realized and unrealized gain (loss)					2.79				(2.68	)			2.31				(9.60	)			(2.78	)
Net increase (decrease) from investment operations					2.63				(2.76	)			2.36				(9.67	)			(2.91	)
Dividends and distributions from:
Net investment income					(0.25	)			(0.52	)			—				—				(2.01	)
Tax return of capital					(0.47	)			—				—				—				—
Net realized gain					(0.74	)			—				—				(9.04	)			(7.22	)
Total dividends and distributions					(1.46	)			(0.52	)			—				(9.04	)			(9.23	)
Redemption fees added to paid-in capital					—				0.00	2			0.01				0.01				0.03
Net asset value, end of year				$	32.87			$	31.70			$	34.98			$	32.61			$	51.31
Total Investment Return 3
Based on net asset value					7.76	%			(8.28	)%			7.27	% 4,5			(7.64	)% 6,7			(6.77	)% 5
Ratios to Average Net Assets
Total expenses					0.99	%			0.93	%			0.97	%			1.00	%			0.92	%
Total expenses excluding recoupment of past waived fees					0.99	%			0.93	%			0.97	%			0.98	%			0.92	%
Total expenses after fees waived, reimbursed and paid indirectly					0.99	%			0.92	%			0.97	%			0.99	%			0.92	%
Net investment income (loss)					(0.44	)%			(0.18	)%			0.13	%			(0.25	)%			(0.18	)%
Supplemental Data
Net assets, end of year (000)				$	222,034			$	306,403			$	274,009			$	134,187			$	82,147
Portfolio turnover					15	%			40	%			16	%			25	%			32	%

 

1

Based on average shares outstanding.

2

Less than $0.01 per share.

3

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Excluding these proceeds, the Fund’s total return would have been 7.20%.

5

Redemption fee of 2.00% is reflected in total return calculations. The impact to the return from redemption fees received during the period was an increase of 0.03%.

6

Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Excluding these proceeds, the Fund’s total return would have been (7.66)%.

7

Redemption fee of 2.00% is reflected in total return calculations. The impact to the return from redemption fees received during the period was an increase of 0.02%.

63

Financial Highlights (continued)

---

Energy & Resources (continued)

				Investor A
				Year Ended September 30,
				2012				2011				2010				2009				2008
Per Share Operating Performance
Net asset value, beginning of year				$	27.73			$	30.63			$	28.67			$	47.29			$	59.02
Net investment income (loss) 1					(0.24	)			(0.20	)			(0.12	)			(0.13	)			(0.32	)
Net realized and unrealized gain (loss)					2.46				(2.34	)			2.08				(9.46	)			(2.29	)
Net increase (decrease) from investment operations					2.22				(2.54	)			1.96				(9.59	)			(2.61	)
Dividends and distributions from:
Net investment income					(0.17	)			(0.36	)			—				—				(1.92	)
Tax return of capital					(0.42	)			—				—				—				—
Net realized gain					(0.74	)			—				—				(9.04	)			(7.22	)
Total dividends and distributions					(1.33	)			(0.36	)			—				(9.04	)			(9.14	)
Redemption fees added to paid-in capital					—				0.00	2			0.00	2			0.01				0.02
Net asset value, end of year.				$	28.62			$	27.73			$	30.63			$	28.67			$	47.29
Total Investment Return 3
Based on net asset value					7.41	%			(8.61	)%			6.84	% 4,5			(8.20	)% 6,7			(6.78	)% 8
Ratios to Average Net Assets
Total expenses					1.34	%			1.28	%			1.35	%			1.40	%			1.25	%
Total expenses excluding recoupment of past waived fees					1.33	%			1.26	%			1.31	%			1.38	%			1.25	%
Total expenses after fees waived, reimbursed and paid indirectly					1.34	%			1.27	%			1.35	%			1.31	%			1.25	%
Net investment income (loss)					(0.77	)%			(0.52	)%			(0.39	)%			(0.55	)%			(0.49	)%
Supplemental Data
Net assets, end of year (000)				$	539,085			$	632,030			$	644,786			$	636,437			$	689,646
Portfolio turnover					15	%			40	%			16	%			25	%			32	%

 

1

Based on average shares outstanding.

2

Less than $0.01 per share.

3

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Excluding these proceeds, the Fund’s total return would have been 6.77%.

5

Redemption fee of 2.00% is reflected in total return calculations. There was no impact to the return.

6

Redemption fee of 2.00% is reflected in total return calculations. The impact to the return from redemption fees received during the period was an increase of 0.03%.

7

Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Excluding these proceeds, the Fund’s total return would have been (8.23)%.

8

Redemption fee of 2.00% is reflected in total return calculations. The impact to the return from redemption fees received during the period was an increase of 0.02%.

64

Financial Highlights (continued)

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Energy & Resources (continued)

				Investor B
				Year Ended September 30,
				2012				2011				2010				2009				2008
Per Share Operating Performance
Net asset value, beginning of year				$	20.65			$	22.86			$	21.56			$	39.68			$	50.87
Net investment loss 1					(0.36	)			(0.38	)			(0.27	)			(0.22	)			(0.67	)
Net realized and unrealized gain (loss)					1.87				(1.73	)			1.57				(8.87	)			(1.81	)
Net increase (decrease) from investment operations					1.51				(2.11	)			1.30				(9.09	)			(2.48	)
Dividends and distributions from:
Net investment income					(0.06	)			(0.10	)			—				—				(1.51	)
Tax return of capital					(0.29	)			—				—				—				—
Net realized gain					(0.74	)			—				—				(9.04	)			(7.22	)
Total dividends and distributions					(1.09	)			(0.10	)			—				(9.04	)			(8.73	)
Redemption fees added to paid-in capital					—				0.00	2			0.00	2			0.01				0.02
Net asset value, end of year				$	21.07			$	20.65			$	22.86			$	21.56			$	39.68
Total Investment Return 3
Based on net asset value					6.63	%			(9.33	)%			6.03	% 4,5			(8.74	)% 6,7			(7.63	)% 8
Ratios to Average Net Assets
Total expenses					2.16	%			2.07	%			2.10	%			2.25	%			2.01	%
Total expenses excluding recoupment of past waived fees					2.16	%			2.03	%			2.10	%			2.23	%			2.01	%
Total expenses after fees waived, reimbursed and paid indirectly					2.10	%			2.07	%			2.09	%			2.05	%			2.00	%
Net investment loss					(1.56	)%			(1.31	)%			(1.17	)%			(1.28	)%			(1.24	)%
Supplemental Data
Net assets, end of year (000)				$	7,687			$	16,450			$	25,633			$	34,218			$	57,174
Portfolio turnover					15	%			40	%			16	%			25	%			32	%

 

1

Based on average shares outstanding.

2

Less than $0.01 per share.

3

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Excluding these proceeds, the Fund’s total return would have been 5.94%.

5

Redemption fee of 2.00% is reflected in total return calculations. There was no impact to the return.

6

Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Excluding these proceeds, the Fund’s total return would have been (8.77)%.

7

Redemption fee of 2.00% is reflected in total return calculations. The impact to the return from redemption fees received during the period was an increase of 0.04%.

8

Redemption fee of 2.00% is reflected in total return calculations. The impact to the return from redemption fees received during the period was an increase of 0.02%.

65

Financial Highlights (continued)

---

Energy & Resources (concluded)

				Investor C
				Year Ended September 30,
				2012				2011				2010				2009				2008
Per Share Operating Performance
Net asset value, beginning of year				$	20.55			$	22.81			$	21.51			$	39.61			$	50.84
Net investment loss 1					(0.34	)			(0.37	)			(0.24	)			(0.22	)			(0.66	)
Net realized and unrealized gain (loss)					1.84				(1.69	)			1.54				(8.85	)			(1.79	)
Net increase (decrease) from investment operations					1.50				(2.06	)			1.30				(9.07	)			(2.45	)
Dividends and distributions from:
Net investment income					(0.09	)			(0.20	)			—				—				(1.58	)
Tax return of capital					(0.34	)			—				—				—				—
Net realized gain					(0.74	)			—				—				(9.04	)			(7.22	)
Total dividends and distributions					(1.17	)			(0.20	)			—				(9.04	)			(8.80	)
Redemption fees added to paid-in capital					—				0.00	2			0.00	2			0.01				0.02
Net asset value, end of year				$	20.88			$	20.55			$	22.81			$	21.51			$	39.61
Total Investment Return 3
Based on net asset value					6.57	%			(9.25	)%			6.04	% 4,5			(8.68	)% 6,7			(7.57	)% 8
Ratios to Average Net Assets
Total expenses					2.07	%			2.04	%			2.06	%			2.16	%			1.96	%
Total expenses excluding recoupment of past waived fees					2.07	%			1.99	%			2.05	%			2.16	%			1.96	%
Total expenses after fees waived, reimbursed and paid indirectly					2.07	%			2.03	%			2.05	%			2.05	%			1.96	%
Net investment loss					(1.50	)%			(1.29	)%			(1.07	)%			(1.29	)%			(1.21	)%
Supplemental Data
Net assets, end of year (000)				$	132,808			$	146,186			$	142,490			$	129,556			$	151,409
Portfolio turnover					15	%			40	%			16	%			25	%			32	%

 

1

Based on average shares outstanding.

2

Less than $0.01 per share.

3

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Redemption fee of 2.00% is reflected in total return calculations. There was no impact to the return.

5

Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Excluding these proceeds, the Fund’s total return would have been 5.95%.

6

Redemption fee of 2.00% is reflected in total return calculations. The impact to the return from redemption fees received during the period was an increase of 0.04%.

7

Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Excluding these proceeds, the Fund’s total return would have been (8.71)%.

8

Redemption fee of 2.00% is reflected in total return calculations. The impact to the return from redemption fees received during the period was an increase of 0.02%.

66

Financial Highlights (continued)

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World Gold

				Institutional
				Year Ended September 30,
				2012 2				2011 2				Period May 26,2010 1 to September 30, 2010
Per Share Operating Performance
Net asset value, beginning of period				$	11.13			$	12.07			$	10.00
Net investment income (loss) 3					(0.00	) 4			(0.02	)			(0.01	)
Net realized and unrealized gain (loss)					(0.12	)			(0.63	) 5			2.08	5
Net increase (decrease) from investment operations					(0.12	)			(0.65	)			2.07
Dividends and distributions from:
Net investment income					(0.02	)			(0.13	)			—
Tax return of capital					—				(0.04	)			—
Net realized gain					—				(0.12	)			—
Total dividends and distributions					(0.02	)			(0.29	)			—
Net asset value, end of period				$	10.99			$	11.13			$	12.07
Total Investment Return 6
Based on net asset value					(1.11	)%			(5.69	)% 7			20.70	% 7,8
Ratios to Average Net Assets
Total expenses					2.35	%			4.05	%			5.79	% 9,10
Total expenses after fees waived and reimbursed					1.24	%			1.24	%			1.24	% 10
Net investment income (loss)					(0.03	)%			(0.15	)%			(0.39	)% 10
Supplemental Data
Net assets, end of period (000)				$	4,073			$	4,432			$	3,974
Portfolio turnover					23	%			29	%			1	%

 

1

Commencement of operations.

2

Consolidated Financial Highlights.

3

Based on average shares outstanding.

4

Less than $(0.01) per share.

5

Includes redemption fees, which are less than $0.01 per share.

6

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

7

Redemption fee of 2.00% is reflected in total return calculations. There was no impact to the return.

8

Aggregate total investment return.

9

Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses for Institutional Shares would have been 6.17%.

10

Annualized.

67

Financial Highlights (continued)

---

World Gold (continued)

				Investor A
				Year Ended September 30,
				2012 2				2011 2				Period May 26,2010 1 to September 30, 2010
Per Share Operating Performance
Net asset value, beginning of period				$	11.10			$	12.05			$	10.00
Net investment income (loss) 3					(0.03	)			(0.04	)			0.00	4
Net realized and unrealized gain (loss)					(0.12	)			(0.62	) 5			2.05	5
Net increase (decrease) from investment operations					(0.15	)			(0.66	)			2.05
Dividends and distributions from:
Net investment income					—				(0.13	)			—
Tax return of capital					—				(0.04	)			—
Net realized gain					—				(0.12	)			—
Total dividends and distributions					—				(0.29	)			—
Net asset value, end of period				$	10.95			$	11.10			$	12.05
Total Investment Return 6
Based on net asset value					(1.35	)%			(5.83	)% 7			20.50	% 7,8
Ratios to Average Net Assets
Total expenses					2.86	%			4.45	%			7.16	% 9,10
Total expenses after fees waived and reimbursed					1.49	%			1.49	%			1.49	% 10
Net investment income (loss)					(0.27	)%			(0.36	)%			0.07	% 10
Supplemental Data
Net assets, end of period (000)				$	4,361			$	3,242			$	572
Portfolio turnover					23	%			29	%			1	%

 

1

Commencement of operations.

2

Consolidated Financial Highlights.

3

Based on average shares outstanding.

4

Less than $0.01 per share.

5

Includes redemption fees, which are less than $0.01 per share.

6

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

7

Redemption fee of 2.00% is reflected in total return calculations. There was no impact to the return.

8

Aggregate total investment return.

9

Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses for Investor A Shares would have been 8.00%.

10

Annualized.

68

Financial Highlights (concluded)

---

World Gold (concluded)

				Investor C
				Year Ended September 30,
				2012 2				2011 2				Period May 26,2010 1 to September 30, 2010
Per Share Operating Performance
Net asset value, beginning of period				$	11.00			$	12.02			$	10.00
Net investment income (loss) 3					(0.11	)			(0.13	)			(0.04	)
Net realized and unrealized gain (loss)					(0.12	)			(0.62	) 4			2.06	4
Net increase (decrease) from investment operations					(0.23	)			(0.75	)			2.02
Dividends and distributions from:
Net investment income					—				(0.11	)			—
Tax return of capital					—				(0.04	)			—
Net realized gain					—				(0.12	)			—
Total dividends and distributions					—				(0.27	)			—
Net asset value, end of period				$	10.77			$	11.00			$	12.02
Total Investment Return 5
Based on net asset value					(2.09	)%			(6.57	)% 6			20.20	% 6,7
Ratios to Average Net Assets
Total expenses					3.56	%			5.14	%			7.37	% 8,9
Total expenses after fees waived and reimbursed					2.27	%			2.27	%			2.27	% 9
Net investment income (loss)					(1.05	)%			(1.05	)%			(1.15	)% 9
Supplemental Data
Net assets, end of period (000)				$	3,057			$	2,726			$	132
Portfolio turnover					23	%			29	%			1	%

 

1

Commencement of operations.

2

Consolidated Financial Highlights.

3

Based on average shares outstanding.

4

Includes redemption fees, which are less than $0.01 per share.

5

Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

6

Redemption fee of 2.00% is reflected in total return calculations. There was no impact to the return.

7

Aggregate total investment return.

8

Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses for Investor C Shares would have been 7.94%.

9

Annualized.

69

General Information

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Shareholder Documents

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Electronic Access to Annual Reports, Semi-Annual Reports and Prospectuses

Electronic copies of most financial reports and prospectuses are available on BlackRock’s website. Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in a Fund’s electronic delivery program. To enroll:

Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages: Please contact your financial professional. Please note that not all investment advisers, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly With BlackRock:

n

Access the BlackRock website at http://www.blackrock.com/edelivery; and

n

Log into your account.

Delivery of Shareholder Documents

The Funds deliver only one copy of shareholder documents, including prospectuses, shareholder reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is known as “householding” and is intended to eliminate duplicate mailings and reduce expenses. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your Fund at (800) 441-7762.

Certain Fund Policies

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Anti-Money Laundering Requirements

The Funds are subject to the USA PATRIOT Act (the “Patriot Act”). The Patriot Act is intended to prevent the use of the U.S. financial system in furtherance of money laundering, terrorism or other illicit activities. Pursuant to requirements under the Patriot Act, a Fund may request information from shareholders to enable it to form a reasonable belief that it knows the true identity of its shareholders. This information will be used to verify the identity of investors or, in some cases, the status of financial professionals; it will be used only for compliance with the requirements of the Patriot Act.

The Funds reserve the right to reject purchase orders from persons who have not submitted information sufficient to allow a Fund to verify their identity. Each Fund also reserves the right to redeem any amounts in a Fund from persons whose identity it is unable to verify on a timely basis. It is the Funds’ policy to cooperate fully with appropriate regulators in any investigations conducted with respect to potential money laundering, terrorism or other illicit activities.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former Fund investors and individual clients (collectively, “Clients”) and to safeguarding their nonpublic personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal nonpublic information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our website.

70

BlackRock does not sell or disclose to nonaffiliated third parties any nonpublic personal information about its Clients, except as permitted by law, or as is necessary to respond to regulatory requests or to service Client accounts. These nonaffiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to nonpublic personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

Statement of Additional Information

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If you would like further information about the Funds, including how each Fund invests, please see the SAI.

For a discussion of each Fund’s policies and procedures regarding the selective disclosure of its portfolio holdings, please see the SAI. The Funds make their top ten holdings available on a monthly basis at www.blackrock.com generally within 5 business days after the end of the month to which the information applies.

71

Glossary

---

This glossary contains an explanation of some of the common terms used in this prospectus. For additional information about the Funds, please see the SAI.

Acquired Fund Fees and Expenses — fees and expenses charged by other investment companies in which a Fund invests a portion of its assets.

Annual Fund Operating Expenses — expenses that cover the costs of operating a Fund.

Distribution Fees — fees used to support a Fund’s marketing and distribution efforts, such as compensating financial professionals and other financial intermediaries, advertising and promotion.

FTSE Gold Mines Index — an index designed to reflect the performance of the worldwide market in the shares of companies whose principal activity is the mining of gold.

Management Fee — a fee paid to BlackRock for managing a Fund.

MSCI All Country World Energy Index — an index comprised of the energy sector constituents of the MSCI All-Country World Index, a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets.

Other Expenses — include accounting, administration, transfer agency, custody, professional and registration fees.

S&P 500 ^® Index — an unmanaged total return index which covers 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly New York Stock Exchange (“NYSE”) issues) representing about 75% of NYSE market capitalization and 30% of NYSE issues.

Service Fees — fees used to compensate securities dealers and other financial intermediaries for certain shareholder servicing activities.

Shareholder Fees — fees paid directly by a shareholder, including sales charges that you may pay when you buy or sell shares of a Fund.

Wilshire 5000 Modified Energy Cap Weighted Index — a customized index comprised of the energy sector constituents of the Wilshire 5000 (Full Cap) Index which have been market capitalization weighted and the six largest securities and all securities that have a percentage market value below 0.01% have been removed.

Wilshire 5000 Modified Energy Equal Weighted Index — a customized index comprised of the energy sector constituents of the Wilshire 5000 (Full Cap) Index which have been equally weighted and the six largest securities and all securities that have a percentage market value below 0.01% have been removed.

72

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For More Information

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Funds and Service Providers

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FUNDS

BlackRock Funds ^SM
    BlackRock All-Cap Energy & Resources Portfolio
    BlackRock Energy & Resources Portfolio
    BlackRock World Gold Fund
100 Bellevue Parkway
Wilmington, Delaware 19809

Written Correspondence:
P.O. Box 9819
Providence, Rhode Island 02940-8019

Overnight Mail:
4400 Computer Drive
Westborough, Massachusetts 01588

(800) 441-7762

MANAGER AND CO-ADMINISTRATOR

BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, Delaware 19809

SUB-ADVISER

For BlackRock World Gold Fund
BlackRock International Limited
40 Torphichen Street
Edinburgh, Scotland
United Kingdom EH3 8JB

CO-ADMINISTRATOR

BNY Mellon Investment Servicing (US) Inc.
301 Bellevue Parkway
Wilmington, Delaware 19809

TRANSFER AGENT

BNY Mellon Investment Servicing (US) Inc.
301 Bellevue Parkway
Wilmington, Delaware 19809

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Deloitte & Touche LLP
1700 Market Street
Philadelphia, Pennsylvania 19103

ACCOUNTING SERVICES PROVIDER

BNY Mellon Investment Servicing (US) Inc.
301 Bellevue Parkway
Wilmington, Delaware 19809

DISTRIBUTOR

BlackRock Investments, LLC
40 East 52nd Street
New York, New York 10022

CUSTODIAN

The Bank of New York Mellon
One Wall Street
New York, New York 10286

COUNSEL

Sidley Austin LLP
787 Seventh Avenue
New York, New York 10019-6018