Form N-CSR BLACKROCK ADVANTAGE GLOB For: Jun 30

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-07171

Name of Fund:  BlackRock Advantage Global Fund, Inc.

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Advantage Global Fund, Inc., 55 East 52^nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 6/30/2019

Date of reporting period: 06/30/2019

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Item 1 – Report to Stockholders

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JUNE 30, 2019

 

ANNUAL REPORT

 

BlackRock Advantage Global Fund, Inc.

BlackRock EuroFund

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

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2		THIS PAGE IS NOT PART OF YOUR FUND REPORT

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Table of Contents

 

		Page
The Markets in Review			2
Annual Report:
Fund Summaries			4
About Fund Performance			10
Disclosure of Expenses			10
Derivative Financial Instruments			10
Financial Statements:
Schedules of Investments			11
Statements of Assets and Liabilities			24
Statements of Operations			26
Statements of Changes in Net Assets			27
Financial Highlights			28
Notes to Financial Statements			38
Report of Independent Registered Public Accounting Firm			50
Important Tax Information			50
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreement			51
Director and Officer Information			55
Additional Information			59
Glossary of Terms Used in this Report			61

 

 

 

 

 

			3

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Fund Summary  as of June 30, 2019		BlackRock Advantage Global Fund, Inc.

 

Investment Objective

BlackRock Advantage Global Fund, Inc.’s (the “Fund”) investment objective is to seek long-term capital appreciation.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended June 30, 2019, the Fund underperformed its benchmark, the MSCI All Country World Index.

What factors influenced performance?

The Fund’s underperformance for the period was concentrated in the fourth quarter of 2018 as the market underwent a liquidity dislocation. Macro thematic and sentiment composite strategies were the most significant detractors as tightening financial conditions, deteriorating global growth, signs of stretched valuations and deleveraging in the hedge fund community led to spikes in market volatility. Higher-than-expected realized portfolio risk exposures and increased correlation of insights degraded the Fund’s ability to protect against negative market price action during this period. Insights driven by analyst revisions, which are proprietary sentiment indicators tracking upgrades and downgrades to corporate earnings from the analyst community, were some of the top detractors. With investors seemingly losing faith in the macroeconomic and earnings outlooks, text-based measures of broker and analyst sentiment as well as trend-following quality signals lost their differentiation properties and converged on the large drawdown in generic earnings momentum. Elsewhere, the macro thematic style rotation model’s preference for small cap stocks, which worked well earlier in 2018 given small caps’ relative insulation against a disruption in global trade, was a large detractor as investors rotated toward defensive large cap names in a manner that was erratic relative to past episodes of market distress.

The Fund performed well over the final six months of the period, which encompassed a market recovery. Performance benefited from retained risk in the portfolio and some reversal in the extreme trends observed over the fourth quarter of 2018. Macro thematic models began to successfully settle back towards a pro-growth/quality stance. This coincided with increasingly dovish rhetoric from central bankers, a decline in yield curves and evidence of slowing but still positive growth. The portfolio was well positioned for the extreme divergence in performance between growth and value factors, which evolved through the second quarter of 2019. Successful positioning along these dimensions was further underpinned by proprietary sentiment indicators, which regained a high level of differentiation relative to the continued sluggish performance from generic earnings momentum factors. Furthermore, strong differentiation was also evident across the fundamental model components, enabling the Fund to avoid the unusually large drawdown experienced by traditional value strategies and which challenged many other quantitative managers.

Describe recent portfolio activity.

Over the period, the Fund maintained a balanced allocation of risk across all major return drivers. However, within the macro thematic composite the investment adviser reduced the size of the long growth-short value trade due to the historic performance spread between the two factors and the potential for a rebound in value relative performance.

Describe portfolio positioning at period end.

The Fund was positioned for the continuation of a low interest rate, low inflation and moderate growth environment while staying well diversified across geographies, industries and other drivers of risk. Along the style dimension the Fund had a long stance with respect to both growth and dividend yield. On a geographical basis, the Fund remained long in Europe, although to a lesser degree following a reduction of U.K. exposure in favor of Japan.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

4		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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Fund Summary  as of June 30, 2019 (continued)		BlackRock Advantage Global Fund, Inc.

 

TOTAL RETURN BASED ON A $10,000 INVESTMENT

 

 

(a)	Assuming maximum sales charge, if any, transaction costs and other operating expenses, including investment advisory fees. Institutional Shares do not have a sales charge.

(b)

The Fund primarily intends to invest in equity securities or other financial instruments that are components of, or have characteristics similar to, the securities included in the MSCI All Country World Index. The Fund’s returns prior to October 26, 2017, are the returns of the Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Global SmallCap Fund, Inc.”

(c)	A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed and emerging markets. The MSCI All Country World Index consists of 47 country indexes comprising of 23 developed and 24 emerging market country indexes.

Performance Summary for the Period Ended June 30, 2019

 

										Average Annual Total Returns (a)(b)
										1 Year												5 Years												10 Years
		6-Month Total Returns								w/o sales charge				w/sales charge								w/o sales charge				w/sales charge								w/o sales charge				w/sales charge
Institutional			16.89	%							4.03	%			N/A								3.97	%			N/A								10.59	%			N/A
Investor A			16.70								3.77				(1.68	)%							3.65				2.54	%							10.24				9.64	%
Investor C			16.27								2.99				1.99								2.84				2.84								9.35				9.35
Class K			16.89								4.09				N/A								3.99				N/A								10.60				N/A
Class R			16.62								3.52				N/A								3.32				N/A								9.85				N/A
MSCI All Country World Index			16.23								5.74				N/A								6.16				N/A								10.15				N/A

 

(a)

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 10 for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

(b)

The Fund primarily intends to invest in equity securities or other financial instruments that are components of, or have characteristics similar to, the securities included in the MSCI All Country World Index. The Fund’s returns prior to October 26, 2017, are the returns of the Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Global SmallCap Fund, Inc.”

N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

		Actual																Hypothetical (b)
		Beginning Account Value (01/01/19)				Ending Account Value (06/30/19)				Expenses Paid During the Period (a)								Beginning Account Value (01/01/19)				Ending Account Value (06/30/19)				Expenses Paid During the Period (a)				Annualized Expense Ratio
Institutional		$	1,000.00			$	1,168.90			$	3.82							$	1,000.00			$	1,021.27			$	3.56				0.71	%
Investor A			1,000.00				1,167.00				5.16								1,000.00				1,020.03				4.81				0.96
Investor C			1,000.00				1,162.70				9.17								1,000.00				1,016.32				8.55				1.71
Class K			1,000.00				1,168.90				3.55								1,000.00				1,021.52				3.31				0.66
Class R			1,000.00				1,166.20				6.50								1,000.00				1,018.79				6.06				1.21

 

(a)

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).

(b)

Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

See “Disclosure of Expenses” on page 10 for further information on how expenses were calculated.

 

 

FUND SUMMARY			5

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Fund Summary  as of June 30, 2019 (continued)		BlackRock Advantage Global Fund, Inc.

 

Portfolio Information

 

 

 

6		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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Fund Summary  as of June 30, 2019		BlackRock EuroFund

 

Investment Objective

BlackRock EuroFund’s (the “Fund”) investment objective is to seek capital appreciation primarily through investment in equities of corporations domiciled in European countries.

On September 20, 2018, the Fund’s Board of Trustees approved certain changes to the Fund’s investment strategies. As such, the Fund transitioned from a Pan-European mandate (including the United Kingdom) to a Eurozone mandate, focusing primarily on countries that use the euro as their currency. In addition, the Fund’s benchmark was changed from the Morgan Stanley Capital International (“MSCI”) Europe Index to the MSCI EMU Index in USD. These changes became effective on October 23, 2018.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended June 30, 2019, the Fund underperformed both its new benchmark, the MSCI EMU Index, and its former benchmark, the MSCI Europe Index.

What factors influenced performance?

European equities posted a narrow loss, as gauged by the MSCI EMU Index. After falling sharply in late 2018, the markets recovered nicely in the second half of the reporting period. The gain was not sufficient to overcome the earlier weakness, however. Index performance for the full period was pressured by the combination of slowing economic growth across Europe and the ongoing uncertainty surrounding Brexit. The downturn in the euro versus the U.S. dollar was another important headwind for results.

The shortfall in the Fund’s relative performance was largely the result of individual stock selection. Sector allocation also marginally detracted from Fund returns.

Among individual stocks, STMicroelectronics NV (Switzerland) was a key detractor. The stock lagged in the summer of 2018 due to emerging concerns about global growth, destocking in some of the company’s end markets and fears of slowing smartphone sales. The Fund’s investment adviser reduced the position in the autumn before eliminating it altogether later in 2018. Danske Bank A/S (Denmark) also detracted from Fund returns. Danske came under pressure from uncertainty surrounding allegations of money laundering at its Estonian unit. As a result, the stock is no longer held in the Fund. The property company Deutsche Wohnen SE (Germany) was an additional detractor of note. The stock declined in the second quarter of 2019 after the Berlin city council proposed a five-year rent freeze in response to public protests about rental values that had significantly outpaced inflation. While this issue created near-term uncertainty, the investment adviser retained the position on the belief that the company’s net asset value should continue to rise due to population growth in Berlin, lower interest rates and the value of Berlin relative to other global cities.

On the plus side, the aerospace company Safran SA (France) was the leading contributor to Fund returns for the 12-month period. Safran generated sustainable revenue growth from high-margin services for its installed engine base, and it executed well on its introduction of a new engine. Safran has consistently delivered on sales and profit expectations, boosting its shares. A holding in luxury goods company LVMH Moet Hennessy Louis Vuitton SA (France) was another contributor of note. After pulling back significantly on fears about Chinese consumer spending in late 2018, the stock recovered on the strength of better-than-expected growth and improving sentiment surrounding China’s consumer sector. A position in another French aerospace company, Airbus SE, was an additional positive due to its robust profits, strong order growth and the announcement of a new aircraft model.

Describe recent portfolio activity.

The portfolio’s composition changed considerably in the first half of the period, reflecting the shift to the new investment mandate. Separately, the Fund moved to a more defensive posture in response to the weakening prospects for economic growth. The Fund accomplished this by reducing its weighting in the financial sector, largely by decreasing its allocation to insurance and banking stocks. The Fund also decreased its position in information technology. Conversely, the Fund added to defensive sectors such as consumer staples, health care and utilities. Although companies in these areas tend to have lower potential profit growth than the market as a whole, the investment adviser believed their earnings would be more resilient at a time of slower economic conditions.

In the second half of the period, the investment adviser maintained its key areas of conviction despite the market volatility associated with the U.S.-China trade war. At the same time, it adopted a less defensive posture as it identified stock-specific opportunities among higher-quality, cyclical companies. This included the additions of the transportation company DSV SA (Denmark), the luxury apparel producer Moncler SpA (Italy) and Symrise AG (Germany), a producer of flavors and fragrances. The Fund also added Dassault Systemes SA, a French software company that is expanding into new markets. In addition, the investment adviser increased the portfolio’s existing positions in LVMH, Airbus and the semiconductor company ASML Holdings (Netherlands).

Describe portfolio positioning at period end.

The Fund held overweight positions in the industrials, information technology and health care sectors, and was underweight in consumer staples, financials, communication services, consumer discretionary, utilities and energy. The Fund had a neutral sector weighting in real estate and materials.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

FUND SUMMARY			7

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Fund Summary  as of June 30, 2019 (continued)		BlackRock EuroFund

 

TOTAL RETURN BASED ON A $10,000 INVESTMENT

 

 

(a)	Assuming maximum sales charge, if any, transaction costs and other operating expenses, including investment advisory fees. Institutional Shares do not have a sales charge.

(b)

Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities, including common stock and convertible securities, of companies located in Europe. The Fund currently expects that a majority of the Fund’s assets will be invested in equity securities of companies located in countries participating in the European Monetary Union (the ‘‘Eurozone’’). The Fund’s total returns prior to October 23, 2018, are the returns of the Fund when it followed different investment strategies.

(c)	A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in Europe.

(d)	MSCI EMU Index captures large and mid-cap representation across the 10 Developed Markets countries in the European Economic and Monetary Union (“EMU”). With 247 constituents, the MSCI EMU Index covers approximately 85% of the free float-adjusted market capitalization of the EMU.

Performance Summary for the Period Ended June 30, 2019

 

										Average Annual Total Returns (a)(b)
										1 Year												5 Years												10 Years
		6-Month Total Returns								w/o sales charge				w/sales charge								w/o sales charge				w/sales charge								w/o sales charge				w/sales charge
Institutional			18.81	%							(1.77	)%			N/A								(0.75	)%			N/A								5.35	%			N/A
Investor A			18.67								(2.08	)			(7.22	)%							(0.97	)			(2.03	)%							5.13				4.56	%
Investor C			18.24								(2.82	)			(3.77	)							(1.75	)			(1.75	)							4.26				4.26
Class K			18.91								(1.70	)			N/A								(0.71	)			N/A								5.37				N/A
Class R			18.29								(2.66	)			N/A								(1.46	)			N/A								4.57				N/A
MSCI EMU Index			15.97								(0.48	)			N/A								1.48				N/A								5.83				N/A
MSCI Europe Index			15.80								1.88				N/A								1.27				N/A								6.99				N/A

 

(a)

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 10 for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

(b)

Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities, including common stock and convertible securities, of companies located in Europe. The Fund currently expects that a majority of the Fund’s assets will be invested in equity securities of companies located in countries participating in the European Monetary Union (the ‘‘Eurozone’’). The Fund’s total returns prior to October 23, 2018, are the returns of the Fund when it followed different investment strategies.

N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

		Actual																Hypothetical (b)
		Beginning Account Value (01/01/19)				Ending Account Value (06/30/19)				Expenses Paid During the Period (a)								Beginning Account Value (01/01/19)				Ending Account Value (06/30/19)				Expenses Paid During the Period (a)				Annualized Expense Ratio
Institutional		$	1,000.00			$	1,188.10			$	6.67							$	1,000.00			$	1,018.70			$	6.16				1.23	%
Investor A			1,000.00				1,186.70				7.86								1,000.00				1,017.60				7.25				1.45
Investor C			1,000.00				1,182.40				11.85								1,000.00				1,013.94				10.94				2.19
Class K			1,000.00				1,189.10				6.13								1,000.00				1,019.19				5.66				1.13
Class R			1,000.00				1,182.90				11.53								1,000.00				1,014.23				10.64				2.13

 

(a)

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).

(b)

Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

See “Disclosure of Expenses” on page 10 for further information on how expenses were calculated.

 

 

8		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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Fund Summary  as of June 30, 2019 (continued)		BlackRock EuroFund

 

Portfolio Information

 

 

 

FUND SUMMARY			9

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About Fund Performance

 

Institutional Shares and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors. Class K Shares performance shown prior to the Class K Shares inception date of January 25, 2018 is that of Institutional Shares. The performance of each Fund’s Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 5.25% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. Effective November 8, 2018, the Funds adopted an automatic conversion feature whereby Investor C Shares held for approximately ten years will be automatically converted into Investor A Shares.

Class R Shares are not subject to any sales charge. These shares are subject to a distribution fee of 0.25% per year and a service fee of 0.25% per year. These shares are available only to certain employer-sponsored retirement plans.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (‘‘NAV’’) on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver and/or reimbursement, each Fund’s performance would have been lower. With respect to any voluntary waiver and/or reimbursement, the Manager is under no obligation to waive and/or reimburse or to continue waiving and/or reimbursing its fees and such voluntary waiver may be reduced or discontinued at any time. With respect to any contractual waiver and/or reimbursement, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 6 of the Notes to Financial Statements for additional information on waivers and/or reimbursements.

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples shown on the previous pages (which are based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense examples provide information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their Fund and share class under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in these Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical examples are useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

10		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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Schedule of Investments June 30, 2019		BlackRock Advantage Global Fund, Inc. (Percentages shown are based on Net Assets)

 

 

 

SCHEDULES OF INVESTMENTS			11

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Schedule of Investments  (continued) June 30, 2019		BlackRock Advantage Global Fund, Inc. (Percentages shown are based on Net Assets)

 

 

 

12		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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Schedule of Investments  (continued) June 30, 2019		BlackRock Advantage Global Fund, Inc. (Percentages shown are based on Net Assets)

 

 

 

SCHEDULES OF INVESTMENTS			13

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Schedule of Investments  (continued) June 30, 2019		BlackRock Advantage Global Fund, Inc. (Percentages shown are based on Net Assets)

 

 

 

14		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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Schedule of Investments  (continued) June 30, 2019		BlackRock Advantage Global Fund, Inc. (Percentages shown are based on Net Assets)

 

 

 

SCHEDULES OF INVESTMENTS			15

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Schedule of Investments  (continued) June 30, 2019		BlackRock Advantage Global Fund, Inc. (Percentages shown are based on Net Assets)

 

 

 

16		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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Schedule of Investments  (continued) June 30, 2019		BlackRock Advantage Global Fund, Inc. (Percentages shown are based on Net Assets)

 

 

 

SCHEDULES OF INVESTMENTS			17

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Schedule of Investments  (continued) June 30, 2019		BlackRock Advantage Global Fund, Inc. (Percentages shown are based on Net Assets)

 

 

 

18		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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Schedule of Investments  (continued) June 30, 2019		BlackRock Advantage Global Fund, Inc.

 

(f)	During the year ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate		Shares Held at 06/30/18				Net Activity				Shares Held at 06/30/19				Value at 06/30/19				Income				Net Realized Gain (Loss) (a)				Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class			9,847,320				(7,745,412	)			2,101,908			$	2,101,908			$	132,473			$	—			$	—
SL Liquidity Series, LLC, Money Market Series			3,423,052				(507,841	)			2,915,211				2,916,085				24,020	(b)			1,604				59
														$	5,017,993			$	156,493			$	1,604			$	59

 

(a)

Includes net capital gain distributions, if applicable.

(b)

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description		Number of Contracts				Expiration Date				Notional Amount (000)				Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Yen Denom Nikkei Index			17				09/12/19			$	1,680			$	20,632
S&P/TSX 60 Index			3				09/19/19				448				1,894
SPI 200 Index			3				09/19/19				345				1,206
Euro Stoxx 50 Index			54				09/20/19				2,128				49,777
FTSE 100 Index			8				09/20/19				749				(876	)
MSCI Emerging Markets E-Mini Index			21				09/20/19				1,106				38,359
S&P 500 E-Mini Index			48				09/20/19				7,066				102,303
														$	213,295

Derivative Financial Instruments Categorized by Risk Exposure

As of year end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

		Commodity Contracts				Credit Contracts				Equity Contracts				Foreign Currency Exchange Contracts				Interest Rate Contracts				Other Contracts				Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)		$	—			$	—			$	214,171			$	—			$	—			$	—			$	214,171
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		$	—			$	—			$	876			$	—			$	—			$	—			$	876

 

(a)

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the period ended June 30, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

		Commodity Contracts				Credit Contracts				Equity Contracts				Foreign Currency Exchange Contracts				Interest Rate Contracts				Other Contracts				Total
Net Realized Gain (Loss) from:
Futures contracts		$	—			$	—			$	53,621			$	—			$				$	—			$	53,621
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		$	—			$	—			$	462,731			$	—			$				$	—			$	462,731

 

 

SCHEDULES OF INVESTMENTS			19

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Schedule of Investments  (continued) June 30, 2019		BlackRock Advantage Global Fund, Inc.

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:
Average notional value of contracts — long		$	11,784,148
Average notional value of contracts — short		$	—	(a)

 

(a)

Derivative not held at quarter-end. The risk exposure table serves as an indicator of activity during the period.

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

		Level 1				Level 2				Level 3				Total
Assets:
Investments:
Common Stocks:
Argentina		$	74,636			$	—			$	—			$	74,636
Australia			—				13,695,937				—				13,695,937
Austria			614,206				—				—				614,206
Belgium			—				3,435,131				—				3,435,131
Brazil			2,336,087				—				—				2,336,087
Canada			14,954,931				—				—				14,954,931
China			4,401,322				11,863,992				—				16,265,314
Czech Republic			—				114,917				—				114,917
Denmark			112,717				2,364,282				—				2,476,999
Finland			296,836				3,003,889				—				3,300,725
France			—				13,254,399				—				13,254,399
Germany			548,997				10,201,837				—				10,750,834
Hong Kong			141,245				6,357,786				—				6,499,031
Hungary			66,573				1,975,183				—				2,041,756
India			6,851				5,412,208				—				5,419,059
Indonesia			—				499,792				—				499,792
Ireland			4,968,722				69,544				—				5,038,266
Israel			623,138				—				—				623,138
Italy			—				4,319,239				—				4,319,239
Japan			—				26,326,444				—				26,326,444
Luxembourg			21,387				—				—				21,387
Malaysia			—				343,727				—				343,727
Mexico			3,018,901				—				—				3,018,901
Netherlands			131,009				8,333,365				—				8,464,374
New Zealand			—				133,566				—				133,566
Norway			—				680,600				—				680,600
Poland			—				2,101,703				—				2,101,703
Russia			103,918				1,335,698				—				1,439,616
Singapore			—				1,085,849				—				1,085,849
South Africa			41,953				1,528,735				—				1,570,688
South Korea			—				2,193,632				—				2,193,632
Spain			174				1,847,877				—				1,848,051
Sweden			—				4,254,294				—				4,254,294
Switzerland			—				18,052,516				—				18,052,516
Taiwan			—				5,937,187				—				5,937,187
Thailand			14,840				441,109				—				455,949
Turkey			39,409				1,751,691				—				1,791,100
United Kingdom			318,368				17,851,421				—				18,169,789
United States			231,575,682				—				—				231,575,682
Preferred Stocks			2,544,117				138,137				—				2,682,254
Rights			10,509				310				—				10,819
Short-Term Securities
Money Market Funds			2,101,908				—				—				2,101,908
Time Deposits			—				10,587,900				—				10,587,900
Subtotal		$	269,068,436			$	181,493,897			$	—			$	450,562,333
Investments Valued at NAV(a)															2,916,085
Total														$	453,478,418

 

 

20		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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Schedule of Investments  (continued) June 30, 2019		BlackRock Advantage Global Fund, Inc.

 

Fair Value Hierarchy as of Period End (continued)

 

		Level 1				Level 2				Level 3				Total
Derivative Financial Instruments(b)
Assets:
Equity contracts		$	214,171			$	—			$	—			$	214,171
Liabilities:
Equity contracts			(876	)			—				—				(876	)
		$	213,295			$	—			$	—			$	213,295

 

(a)

Certain investments of the Fund were fair valued using NAV per share or its equivalent as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

(b)

Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS			21

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Schedule of Investments June 30, 2019		BlackRock EuroFund (Percentages shown are based on Net Assets)

 

 

 

22		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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Schedule of Investments  (continued) June 30, 2019		BlackRock EuroFund

 

(e)	During the year ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate		Shares Held at 06/30/18				Net Activity				Shares Held at 06/30/19				Value at 06/30/19				Income				Net Realized Gain (Loss) (a)				Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class(b)			836,840				(836,840	)			—			$	—			$	13,203			$	—			$	—
SL Liquidity Series, LLC, Money Market Series			87,751				(55,912	)			31,839				31,849				9,709	(c)			(520	)			3
														$	31,849			$	22,912			$	(520	)		$	3

 

(a)

Includes net capital gain distributions, if applicable.

(b)

As of period end, the entity is no longer held by the Fund.

(c)

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. For information about the Fund’s policy regarding valuation of investments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy:

 

		Level 1				Level 2				Level 3				Total
Assets:
Investments:
Common Stocks:
Belgium		$	—			$	3,089,245			$	—			$	3,089,245
Denmark			—				2,965,422				—				2,965,422
Finland			—				4,433,137				—				4,433,137
France			1,999,981				44,751,849				—				46,751,830
Germany			4,122,460				25,551,806				—				29,674,266
Ireland			1,926,899				—				—				1,926,899
Italy			—				4,861,305				—				4,861,305
Luxembourg			—				2,636,104				—				2,636,104
Netherlands			—				8,845,899				—				8,845,899
Portugal			—				1,951,829				—				1,951,829
Spain			—				4,966,231				—				4,966,231
Switzerland			—				2,452,209				—				2,452,209
United Kingdom			—				1,864,996				—				1,864,996