Exhibit 77M - Mergers

(a)	The shareholders of each of the following registered
investment companies (the "Target Funds") approved transactions
whereby each Target Fund was reorganized with a portfolio of
BlackRock Funds (the "Acquiring Portfolios") as follows (each, a
"Reorganization"):


Target Fund                           Acquiring Portfolio
Merrill Lynch Short Term U.S.         BlackRock Low Duration Bond
Government Fund, Inc.                 Portfolio

Merrill Lynch U.S. Government         BlackRock Government Income
Fund                                  Portfolio

Merrill Lynch Inflation               BlackRock Inflation Protected
Protected Fund                        Bond Portfolio

Merrill Lynch U.S. High Yield         BlackRock High Yield Bond
Fund, Inc.                            Portfolio


(b)	Each Reorganization arose out of the agreement, announced
on February 15, 2006, pursuant to which Merrill Lynch & Co.,
Inc. contributed its investment management business, including
Merrill Lynch Investment Managers, L.P. and its affiliates
(collectively "MLIM"), to BlackRock, Inc.  Each Reorganization
was part of a larger initiative to consolidate certain of the
comparable MLIM and BlackRock mutual funds.

	Each Reorganization was accomplished pursuant to the terms
of separate agreements and plans of reorganization (each, a
"Plan").  The board of trustees of BlackRock Funds approved each
Plan and related transactions at a meeting held on May 16, 2006.
The boards of trustees or directors, as applicable, of the
Target Funds approved each applicable Plan and related
transactions at special meetings held on May 9, 2006 (with
respect to the Merrill Lynch Short Term U.S. Government Fund,
Inc. and Merrill Lynch U.S. Government Fund), May 10, 2006 (with
respect to the Merrill Lynch Inflation Protected Fund) or May
12, 2006 (with respect to the Merrill Lynch U.S. High Yield
Fund, Inc.).  Each applicable Plan was approved by the
shareholders of each Target Fund at a special meeting of
shareholders held on August 15, 2006 (July 31, 2006 with respect
to the Merrill Lynch U.S. Government Fund), and adjourned (i)
with respect to the Merrill Lynch U.S. Government Fund until
October 5, 2006 and (ii) with respect to the Merrill Lynch Short
Term U.S. Government Fund, Inc. until August 31, 2006.

	Each Reorganization closed on October 16, 2006.  Following
the Reorganizations, each shareholder of a Target Fund held
shares of the corresponding Acquiring Portfolio with the same
aggregate net asset value as the shares held in the Target Fund
prior to the Reorganization.

	Each Target Fund has filed with the Securities and Exchange
Commission an application under Section 8(f) of the Investment
Company Act of 1940, as amended, and Rule 8f-1 thereunder for an
order declaring that each Target Fund has ceased to be an
investment company.
Upon receipt of such orders, steps will be taken to accomplish
the termination of the existence of each Target Fund under state
law.  Merrill Lynch Short Term U.S. Government Fund, Inc.,
Merrill Lynch U.S. Government Fund and Merrill Lynch U.S. High
Yield Fund, Inc. have received their orders and have been de-
registered under the Investment Company Act of 1940, as amended.
The order for Merrill Lynch Inflation Protected Fund is pending.

With respect to additional circumstances and details of each
Reorganization, BlackRock Funds incorporates herein by reference
the definitive Combined Prospectuses/Proxy Statements and
Statements of Additional Information (File Nos. 333-133761, 333-
133762, 333-133763 and 333-133764) dated June 19, 2006, each as
filed with the Securities and Exchange Commission on June 23,
2006.