Quantitative Master Series N-CSR Certified annual shareholder report (management investment company)

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 811-07899 and 811-07885

Name of Fund:	BlackRock Index Funds, Inc.:
	BlackRock International Index Fund
	BlackRock S&P 500 Index Fund
	BlackRock Small Cap Index Fund
	Quantitative Master Series LLC:
	Master International Index Series
	Master S&P 500 Index Series
	Master Small Cap Index Series

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Index Funds, Inc. and Quantitative Master Series LLC, 55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 12/31/2011

Date of reporting period: 12/31/2011

Item 1 – Report to Stockholders

December 31, 2011

Annual Report

BlackRock International Index Fund | of BlackRock Index Funds, Inc.

Not FDIC Insured § No Bank Guarantee § May Lose Value

Table of Contents
	Page
Dear Shareholder	3
Annual Report:
Fund Summary	4
About Fund Performance	6
Derivative Financial Instruments	6
Disclosure of Expenses	7
Fund Financial Statements:
Statement of Assets and Liabilities	8
Statement of Operations	9
Statements of Changes in Net Assets	10
Fund Financial Highlights	11
Fund Notes to Financial Statements	13
Fund Report of Independent Registered Public Accounting Firm	16
Important Tax Information	16
Series Portfolio Information	17
Series Financial Statements:
Schedule of Investments	18
Statement of Assets and Liabilities	28
Statement of Operations	29
Statements of Changes in Net Assets	30
Series Financial Highlights	30
Series Notes to Financial Statements	31
Series Report of Independent Registered Public Accounting Firm	36
Officers and Directors	37
Additional Information	40
A World-Class Mutual Fund Family	43

2 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Dear Shareholder

Investors endured a very difficult environment in 2011. Financial markets were extremely volatile as a number of high-profile global events drove frequent about-face changes in investor sentiment. As the year progressed, news flow increasingly influenced trading decisions, to the point where company fundamentals were largely ignored. In the end, lower-risk assets won the “risk on — risk off” trading tug-of-war that characterized 2011’s market activity.

Early in the year, political turmoil swept across the Middle East/North Africa region and prices of oil and other commodities soared. Natural disasters in Japan disrupted global supply chains and concerns mounted regarding US debt and deficit issues. Nevertheless, equities, commodities and high yield bonds outpaced the less risky asset classes as investors chose to focus on the continuing stream of strong corporate earnings and positive economic data.

Markets reversed sharply in May, however, when the heightened possibility of Greece defaulting on its debt rekindled fears about sovereign debt problems spreading across Europe. Concurrently, economic indicators signaled that the recovery had slowed in the United States and other developed nations. Confidence was further shaken by the prolonged debt ceiling debate in Washington, DC. On August 5th, Standard & Poor’s downgraded the US government’s credit rating and turmoil erupted in financial markets around the world. Extraordinary levels of volatility persisted in the months that followed as Greece teetered on the brink of default, debt problems escalated in Italy and Spain, and exposure to European sovereign bonds stressed banks globally. Late in the summer, economic data out of the United States and Europe grew increasingly bleak while China and other emerging economies began to show signs of slowing growth. By the end of the third quarter, equity markets had fallen nearly 20% from their April peak while safe-haven assets such as US Treasuries and gold had rallied to historical highs.

October brought enough positive economic data to assuage fears of a global double-dip recession. Additionally, after months of deliberation, European leaders began to show signs of progress toward stemming the region’s debt crisis. These encouraging developments brought investors back from the sidelines and risk assets rallied through the month. However, a lack of definitive details about Europe’s rescue plan soon raised doubts among investors and thwarted the rally at the end of October. The last two months of the year saw political instability in Greece, unsustainable yields on Italian bonds, and US policymakers bickering over budget issues. Global central bank actions and improving economic data energized investors, but confidence was easily tempered by sobering news flow that resurrected uncertainty about the ability of Europe’s leaders to ultimately contain the debt crisis.

Most equity markets failed to fully recover their late-summer losses, although US large cap stocks managed to finish the year with a marginal gain given their perceived safety and stronger US economic data. Conditions were worse overseas, and international markets experienced some significant downturns. Dividend-paying stocks performed relatively well as investors sought yield in the low interest rate environment. Fixed income securities benefited from declining yields and delivered positive returns for the year. US Treasury bonds outperformed other fixed income classes despite their quality rating downgrade, while municipal bonds also delivered superior results. Continued low short-term interest rates kept yields on money market securities near their all-time lows.

Many of the themes that caused uncertainty in 2011 are likely to persist well into 2012. While the investment landscape appears treacherous, BlackRock is working for you. We have a roadmap to show you the way.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC

“While the investment landscape appears treacherous, BlackRock is working for you. We have a roadmap to show you the way.”

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of December 31, 2011

	6-month			12-month
US large cap equities (S&P 500® Index)		(3.69	)%		2.11	%
US small cap equities (Russell 2000® Index)		(9.77	)		(4.18	)
International equities (MSCI Europe, Australasia, Far East Index)		(16.31	)		(12.14	)
Emerging market equities (MSCI Emerging Markets Index)		(19.13	)		(18.42	)
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)		0.02			0.10
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)		13.46			17.15
US investment grade bonds (Barclays Capital US Aggregate Bond Index)		4.98			7.84
Tax-exempt municipal bonds (S&P Municipal Bond Index)		5.78			10.62
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)		(0.02	)		4.96

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT
3

Fund Summary as of December 31, 2011	BlackRock International Index Fund
Investment Objective

BlackRock International Index Fund’s (the “Fund”) investment objective is to match the performance of the MSCI EAFE Index (Europe, Australasia, Far East) (the “MSCI EAFE Index”) in U.S. dollars with net dividends as closely as possible before the deduction of Fund expenses.

Portfolio Management Commentary

	How did the Fund perform?
•	For the 12 months ended December 31,2011,Institutional and Investor A Shares of the Fund returned (12.55)% and (12.84)%, respectively, while the benchmark MSCI EAFE Index returned (12.14)% for the same period. The MSCI EAFE Index is a free float-adjusted, market capitalization-weighted index designed to measure equity performance of developed markets, excluding the United States and Canada. For the period beginning with its initial trading date of March 31, 2011 through December 31, 2011, the Fund’s Class K Shares returned (15.38)%. For the same period, the benchmark index returned (15.00)%.
•	Returns for the Fund’s respective share classes differ from the benchmark based on individual share-class expenses. The Fund invests all of its assets in Master International Index Series (the “Series”), a series of Quantitative Master Series LLC.
	Describe the market environment.
•	Early in the year, stocks moved unevenly higher despite political upheaval spreading across the Middle East/North Africa region and a sharp rise in oil and other commodity prices. March brought devastating natural disasters that left Japan with massive infrastructure damage, resulting in global supply chain disruptions. All the while, inflationary pressures persisted in developing countries. Nevertheless, the global economy continued to expand, although at a slower pace. Solid corporate profits, improving labor market conditions and reasonably upbeat leading indicators pushed most of the world’s equity markets forward.
•	After reaching their peak at the end of April, equities were met with a sharp reversal when the heightened possibility of Greece defaulting on its debt rekindled fears about the potential impact of the sovereign debt crisis spreading in Europe. Concurrently, it became evident that the pace of economic growth had slowed in the United States and other developed nations. In the United States, a prolonged debt ceiling debate revealed the ineffectiveness of the nation’s policymakers and ultimately led to Standard & Poor’s decision to downgrade the US government’s credit rating in early August. This announcement was the catalyst that spurred one of the most volatile periods in equity trading history. Stock markets across the world swooned as debt problems in Europe spread to Italy and Spain, and global economic indicators grew increasingly bleak.
•	Equities rebounded in October as stronger economic data from the United States helped to calm fears of a global double-dip recession and European leaders demonstrated greater unity in their quest to stem the debt crisis. After months of deliberation, at last finance ministers agreed upon a new plan to reduce Greece’s debt burden, recapitalize the region’s banks and increase the size of the euro-zone bailout fund. However, a lack of definitive details about the rescue plan raised doubts among investors and thwarted the rally at the end of October. International equities generally declined through the final two months of the year as political instability in Greece and Italy fueled uncertainty as to whether Europe’s leaders would be able to contain the crisis. Market volatility softened in December with the support of global central bank actions and improving economic data.
•	Of the 22 developed countries in the MSCI EAFE Index, only Ireland (+13.71%) and New Zealand (+5.54%) posted gains for the year (in USD). While equity markets sold off broadly across Europe, countries participating in the euro currency union saw particularly painful losses. Greece (–62.77%) finished well below all other countries in the index. Asian stocks were dragged down by the world’s debt problems and a weak outlook for consumer demand from Europe and the United States. Japan (–14.33%) also suffered the effects of its appreciating yen on its export-driven economy. From a sector perspective, health care (+5.63%) was the top performer in 2011. The defensive consumer staples sector (+4.14%) also outperformed amid highly volatile conditions. However, heightened uncertainty did not bode well for the more cyclical materials (–22.69%) sector and financials (–21.55%) were battered by the world’s debt problems.
	Describe recent portfolio activity.
•	During the 12-month period, as changes were made to the composition of the MSCI EAFE Index, the Series purchased and sold securities to maintain its objective of replicating the risks and return of the benchmark index.
	Describe portfolio positioning at period end.
•	The Series remains positioned to match the risk characteristics of its benchmark index, irrespective of the future direction of international markets.

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 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Total Return Based on a $10,000 Investment

1	Assuming transaction costs and other operating expenses, including administration fees, if any.
2	The Fund invests all of its assets in the Series. The Series may invest in a statistically selected sample of the equity securities included in the MSCI EAFE Index and other types of derivative instruments linked to the MSCI EAFE Index.
3	This unmanaged index is a free-float adjusted, market capitalization-weighted index designed to measure equity performance of developed markets, excluding the United States and Canada.

Performance Summary for the Period Ended December 31, 2011

	6-Month Total Returns			Average Annual Total Returns4
				1 Year			5 Years			10 Years
Institutional		(16.98	)%		(12.55	)%		(5.17	)%		4.30	%
Investor A		(17.14	)		(12.84	)		(5.43	)		4.03
Class K5		(17.00	)		(12.55	)		(5.13	)		4.34
MSCI EAFE Index		(16.31	)		(12.14	)		(4.72	)		4.67

4	Average annual total returns reflect reductions for service fees, if any. See “About Fund Performance” on page 6 for a detailed description of share classes, including any related fees, if any.
5	Class K commenced operations on March 31, 2011. Past performance is not indicative of future results.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 5

About Fund Performance
•	Institutional 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 eligible investors. Prior to March 31, 2011, Class K Shares’ performance results are those of Institutional Shares restated to reflect Class K Shares’ fees.
•	Investor A Shares are not subject to any sales charge and bear no ongoing distribution fee. These shares are subject to an ongoing service fee of 0.25% per year.
	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/funds 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 table on the previous page assume reinvestment of all dividends and capital gain 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. Dividends paid to each class of shares will vary because of the different levels of service and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Fund’s administrator waived and/or reimbursed a portion of the Fund’s fee. Without such waiver and/or reimbursement, the Fund’s performance would have been lower.
Derivative Financial Instruments
The Series may invest in various derivative financial instruments, including financial futures contracts and foreign currency exchange contracts as specified in Note 2 of the Series’ Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market, equity and/or foreign currency exchange rate risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset or illiquidity of the derivative financial instrument. The Series’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require the Series to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation the Series can realize on an investment, may result in lower dividends paid to shareholders or may cause the Series to hold an investment that it might otherwise sell. The Series’ investments in these instruments are discussed in detail in the Series’ Notes to Financial Statements.

6 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) expenses related to transactions, including exchange fees; and (b) operating expenses, including administration fees, service fees, including 12b-1 fees, and other Fund expenses. The expense example shown below (which is based on a hypothetical investment of $1,000 invested on July 1, 2011 and held through December 31, 2011) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The table provides 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 share class under the heading entitled “Expenses Paid During the Period.”

The table also provides information about hypothetical account values and hypothetical expenses based on the 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 this Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the table are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as sales charges or exchange fees, if any. Therefore, the hypothetical example is 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.

Expense Example

	Actual						Hypothetical2
	Beginning Account Value July 1, 2011		Ending Account Value December 31, 2011		Expenses Paid During the Period1		Beginning Account Value July 1, 2011		Ending Account Value December 31, 2011		Expenses Paid During the Period1		Annualized Expense Ratio
Institutional	$	1,000.00	$	830.20	$	1.61	$	1,000.00	$	1,023.44	$	1.79		0.35	%
Investor A	$	1,000.00	$	828.60	$	2.77	$	1,000.00	$	1,022.18	$	3.06		0.60	%
Class K	$	1,000.00	$	830.00	$	1.38	$	1,000.00	$	1,023.69	$	1.53		0.30	%

1	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 184/365 (to reflect the one-half year period shown). Because the Fund invests significantly in the Series, the expense table example reflects the net expenses of both the Fund and the Series in which it invests.
2	Hypothetical 5% return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 7

Statement of Assets and Liabilities BlackRock International Index Fund

December 31, 2011

Assets
Investments at value — Master International Index Series (the “Series”) (cost — $261,846,380)	$	238,545,799
Withdrawals receivable from the Series		19,560,994
Capital shares sold receivable		391,014
Prepaid expenses		10,935
Total assets		258,508,742
Liabilities
Capital shares redeemed payable		19,952,008
Service fees payable		44,930
Administration fees payable		18,739
Officer’s fees payable		34
Other accrued expenses payable		38,282
Total liabilities		20,053,993
Net Assets	$	238,454,749
Net Assets Consist of
Paid-in capital	$	291,054,684
Distribution in excess of net investment income		(978,961	)
Accumulated net realized loss allocated from the Series		(28,320,393	)
Net unrealized appreciation/depreciation allocated from the Series		(23,300,581	)
Net Assets	$	238,454,749
Net Asset Value
Institutional — Based on net assets of $70,168,677 and 7,286,581 shares outstanding, 125 million shares authorized, $0.0001 par value	$	9.63
Investor A — Based on net assets of $168,265,665 and 17,578,959 shares outstanding, 125 million shares authorized, $0.0001 par value	$	9.57
Class K — Based on net assets of $20,407 and 2,119 shares outstanding, 125 million shares authorized, $0.0001 par value	$	9.63

See Notes to Financial Statements.
8	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2011

Statement of Operations BlackRock International Index Fund

Year Ended December 31, 2011
Investment Income
Net investment income allocated from the Series:
Dividends — unaffiliated	$	10,438,782
Foreign taxes withheld		(1,045,454	)
Dividends — affiliated		646
Expenses		(229,045	)
Fees waived		1,212
Total income		9,166,141
Expenses
Administration		652,145
Service — Investor A		419,222
Transfer agent — Institutional		52,285
Transfer agent — Investor A		98,666
Transfer agent — Class K		13
Printing		69,404
Registration		60,741
Professional		45,756
Officer		148
Miscellaneous		11,272
Total expenses		1,409,652
Less fees waived by administrator		(216,444	)
Less transfer agent fees waived and/or reimbursed — class specific		(55,024	)
Total expenses after fees waived and/or reimbursed		1,138,184
Net investment income		8,027,957
Realized and Unrealized Loss Allocated from the Series
Net realized loss from investments, financial futures contracts and foreign currency transactions		(5,481,644	)
Net change in unrealized appreciation/depreciation on investments, financial futures contracts and foreign currency transactions		(37,431,256	)
Total realized and unrealized loss		(42,912,900	)
Net Decrease in Net Assets Resulting from Operations	$	(34,884,943	)

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 9

Statements of Changes in Net Assets BlackRock International Index Fund

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2011			2010
Operations
Net investment income	$	8,027,957		$	5,781,869
Net realized loss		(5,481,644	)		(492,726	)
Net change in unrealized appreciation/depreciation		(37,431,256	)		18,315,616
Net increase (decrease) in net assets resulting from operations		(34,884,943	)		23,604,759
Dividends to Shareholders From
Net investment income:
Institutional		(3,165,026	)		(3,316,785	)
Investor A		(5,380,392	)		(4,386,720	)
Class K		(737	)		—
Decrease in net assets resulting from dividends to shareholders		(8,546,155	)		(7,703,505	)
Capital Share Transactions
Net increase in net assets derived from capital share transactions		6,705,760			8,421,610
Redemption Fee
Redemption fee		1,682			3,026
Net Assets
Total increase (decrease) in net assets		(36,723,656	)		24,325,890
Beginning of year		275,178,405			250,852,515
End of year	$	238,454,749		$	275,178,405
Distributions in excess of net investment income	$	(978,961	)	$	(652,102	)

See Notes to Financial Statements.

10 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Financial Highlights BlackRock International Index Fund

	Institutional															Investor A
	Year Ended December 31,															Year Ended December 31,
	2011			2010			2009			2008			2007			2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of year	$	11.42		$	10.97		$	8.75		$	15.73		$	15.14		$	11.36		$	10.91		$	8.71		$	15.65		$	15.07
Net investment income1		0.35			0.25			0.23			0.40			0.39			0.31			0.23			0.21			0.36			0.34
Net realized and unrealized gain (loss)2		(1.79	)		0.53			2.25			(7.03	)		1.16			(1.77	)		0.52			2.23			(6.98	)		1.16
Net increase (decrease) from investment operations		(1.44	)		0.78			2.48			(6.63	)		1.55			(1.46	)		0.75			2.44			(6.62	)		1.50
Dividends and distributions from:
Net investment income		(0.35	)		(0.33	)		(0.26	)		(0.31	)		(0.47	)		(0.33	)		(0.30	)		(0.24	)		(0.28	)		(0.43	)
Net realized gain		—			—			—			(0.04	)		(0.49	)		—			—			—			(0.04	)		(0.49	)
Total dividends and distributions		(0.35	)		(0.33	)		(0.26	)		(0.35	)		(0.96	)		(0.33	)		(0.30	)		(0.24	)		(0.32	)		(0.92	)
Net asset value, end of year	$	9.63		$	11.42		$	10.97		$	8.75		$	15.73		$	9.57		$	11.36		$	10.91		$	8.71		$	15.65
Total Investment Return3
Based on net asset value		(12.55	)%		7.26	%		28.38	%		(42.24	) %		10.28	%		(12.84	) %		7.02	%		28.00	%		(42.41	) %		9.98	%
Ratios to Average Net Assets4
Total expenses		0.44	%5		0.47	%		0.54	%		0.54	%		0.54	%		0.70	%5		0.74	%		0.79	%		0.79	%		0.79	%
Total expenses after fees waived and/or reimbursed		0.35	%5		0.46	%		0.54	%		0.54	%		0.54	%		0.60	%5		0.73	%		0.79	%		0.79	%		0.79	%
Net investment income		3.14	%5		2.35	%		2.43	%		3.11	%		2.37	%		2.84	%5		2.16	%		2.27	%		2.83	%		2.11	%
Supplemental Data
Net assets, end of year (000)	$	70,169		$	112,145		$	89,889		$	90,688		$	158,740		$	168,266		$	163,033		$	160,964		$	136,073		$	214,422
Portfolio turnover of the Series		6	%		8	%		30	%		30	%		30	%		6	%		8	%		30	%		30	%		30	%

1	Based on average shares outstanding.
2	Includes a redemption fee, which is less than $0.01 per share.
3	Where applicable, total investment returns include the reinvestment of dividends and distributions.
4	Includes the Fund’s share of the Series’ allocated net expenses and/or net investment income.
5	Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 11

Financial Highlights (concluded) BlackRock International Index Fund

	Class K
	Period March 31, 20111 to December 31, 2011
Per Share Operating Performance
Net asset value, beginning of period	$	11.80
Net investment income2		0.26
Net realized and unrealized loss		(2.08	)
Net decrease from investment operations		(1.82	)
Dividends from net investment income		(0.35	)
Net asset value, end of period	$	9.63
Total Investment Return3,4
Based on net asset value		(15.38	)%
Ratios to Average Net Assets5,6,7
Total expenses		0.48	%
Total expenses after fees waived and/or reimbursed		0.30	%
Net investment income		3.27	%
Supplemental Data
Net assets, end of period (000)	$	20
Portfolio turnover of the Series		6	%

1	Commencement of operations.
2	Based on average shares outstanding.
3	Where applicable, total investment returns include the reinvestment of dividends and distributions.
4	Aggregate total investment return.
5	Includes the Fund’s share of the Series’ allocated net expenses and/or net investment income.
6	Annualized.
7	Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

See Notes to Financial Statements.
12	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2011

Notes to Financial Statements BlackRock International Index Fund

1. Organization and Significant Accounting Policies:

BlackRock International Index Fund (the “Fund”), a series of BlackRock Index Funds, Inc. (the “Corporation”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Corporation is organized as a Maryland corporation. The Fund seeks to achieve its investment objective by investing all of its assets in Master International Index Series (the “Series”) of Quantitative Master Series LLC (the “Master LLC”), which has the same investment objective and strategies as the Fund. The value of the Fund’s investment in the Series reflects the Fund’s proportionate interest in the net assets of the Series. The percentage of the Series owned by the Fund at December 31, 2011 was 27.9%. The performance of the Fund is directly affected by the performance of the Series. The financial statements of the Series, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements. The Fund’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Fund offers multiple classes of shares. The Fund’s Institutional, Investor A and Class K Shares are generally sold without a front-end or deferred sales charge. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Investor A Shares bear certain expenses related to the shareholder servicing of such shares and have exclusive voting rights with respect to matters relating to its servicing expenditures. Class K Shares bear no ongoing distribution or service fee and are only available to eligible investors.

The following is a summary of significant accounting policies followed by the Fund:

Valuation: US GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund’s policy is to fair value its financial instruments at market value. The Fund records its investment in the Series at fair value based on the Fund’s proportionate interest in the net assets of the Series. Valuation of securities held by the Series is discussed in Note 1 of the Series’ Notes to Financial Statements, which are included elsewhere in this report.

Investment Transactions and Investment Income: For financial reporting purposes, contributions to and withdrawals from the Series are accounted on a trade date basis. The Fund records daily its proportionate share of the Series’ income, expenses and realized and unrealized gains and losses. In addition, the Fund accrues its own expenses. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Dividends and Distributions: Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP.

Income Taxes: It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

The Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s US federal tax returns remains open for each of the four years ended December 31, 2011. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or class. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. Other expenses of the Fund are allocated daily to each class based on its relative net assets.

2. Administration Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but Barclays is not.

The Corporation, on behalf of the Fund, entered into an Administration Agreement with BlackRock Advisors, LLC (the “Administrator”), an indirect, wholly owned subsidiary of BlackRock, to provide administrative services (other than investment advice and related portfolio activities). For such services, the Fund pays the Administrator a monthly fee at an annual rate of 0.24% of the average daily value of the Fund’s net assets. The Fund does not pay an investment advisory fee or investment management fee.

The Administrator contractually agreed to waive and/or reimburse fees or expenses, excluding interest expense, dividend expense, acquired fund fees and expenses and certain other fund expenses, in order to limit expenses. The Administrator has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to May 1, 2012 unless approved by the Corporation’s Board of Directors (the “Board”), including a majority of the independent directors. These amounts are shown as fees waived by administrator and transfer agent fees waived and/or reimbursed — class specific, respectively, in the Statement of Operations. The expense limitation as a percentage of average daily net assets is 0.35% for Institutional, 0.60% for Investor A and 0.30% for Class K Shares.

BLACKROCK INTERNATIONAL INDEX FUND
DECEMBER 31, 2011
13

Notes to Financial Statements (continued) BlackRock International Index Fund

For the year ended December 31, 2011, the amounts shown as transfer agent fees waived and/or reimbursed — class specific were as follows:

Institutional	$	17,517
Investor A	$	37,500
Class K	$	7

In addition, the Administrator waived $216,444, which is shown as fees waived by administrator in the Statement of Operations.

The Corporation, on behalf of the Fund, entered into a Distribution Agreement and Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of BlackRock. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service fees with respect to its Investor A Shares. The fees are accrued daily and paid monthly at the annual rate of 0.25% based upon the average daily net assets attributable to Investor A Shares.

Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder services to the Fund. The ongoing service fee compensates BRIL and each broker-dealer for providing shareholder servicing to Investor A shareholders.

The Administrator maintains a call center, which is responsible for providing certain shareholder services to the Fund, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the year ended December 31, 2011, the Fund reimbursed the Administrator the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:

	Call Center Fees
Institutional	$	480
Investor A	$	2,257
Class K		—

Certain officers and/or directors of the Corporation are officers and/or directors of BlackRock or its affiliates. The Fund reimburses the Administrator for compensation paid to the Corporation’s Chief Compliance Officer.

3. Income Tax Information:

US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of December 31, 2011 attributable to foreign currency transactions and the sale of stock of passive foreign investment companies by the Fund were reclassified to the following accounts:

Distributions in excess of net investment income	$	191,339
Accumulated net realized loss allocated from the Series	$	(191,339	)

The tax character of distributions paid during the fiscal years ended December 31, 2011 and December 31, 2010 was as follows:

		12/31/11		12/31/10
Ordinary income	$	8,546,155	$	7,703,505

As of December 31, 2011, the tax components of accumulated net losses were as follows:

Undistributed ordinary income	$	192,680
Capital loss carryforwards		(12,452,641	)
Net unrealized losses*		(39,544,168	)
Qualified late-year losses**		(795,806	)
Total	$	(52,599,935	)

*	The difference between book-basis and tax-basis net unrealized losses was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on certain futures and foreign currency exchange contracts, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies and the timing of expenses.
**	The Fund has elected to defer certain qualified late-year losses and recognize such losses in the year ending December 31, 2012.

As of December 31, 2011, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires December 31,
2016	$	4,270,741
2017		6,596,186
No expiration date*		1,585,714
Total	$	12,452,641

  * Must be utilized prior to losses subject to expiration.

14
BLACKROCK INTERNATIONAL INDEX FUND
DECEMBER 31, 2011

Notes to Financial Statements (concluded) BlackRock International Index Fund

4. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Year Ended December 31, 2011						Year Ended December 31, 2010
	Shares			Amount			Shares			Amount
Institutional
Shares sold		2,419,978		$	27,001,665			4,757,714		$	48,155,053
Shares issued to shareholders in reinvestment of dividends		302,801			2,862,205			272,016			3,004,545
Shares redeemed		(5,253,420	)		(55,609,457	)		(3,407,042	)		(37,070,076	)
Net increase (decrease)		(2,530,641	)	$	(25,745,587	)		1,622,688		$	14,089,522
Investor A
Shares sold		5,442,480		$	57,248,032			3,080,972		$	31,744,710
Shares issued to shareholders in reinvestment of dividends		567,625			5,330,566			395,583			4,329,347
Shares redeemed		(2,785,511	)		(30,152,251	)		(3,876,688	)		(41,741,969	)
Net increase (decrease)		3,224,594		$	32,426,347			(400,133	)	$	(5,667,912	)
Class K1
Shares sold		2,119		$	25,000			—			—
Net increase		2,119		$	25,000			—			—

¹ For the period March 31, 2011 (commencement of operations) to December 31, 2011.

Prior to April 1, 2011, there was a 2% redemption fee on shares redeemed or exchanged that have been held 30 days or less. The redemption fees were collected and retained by the Fund for the benefit of the remaining shareholders. The redemption fees were recorded as a credit to paid-in capital. Effective April 1, 2011, the redemption fee was terminated and is no longer charged by the Fund.

5. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Series through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

BLACKROCK INTERNATIONAL INDEX FUND
DECEMBER 31, 2011
15

Report of Independent Registered Public Accounting Firm BlackRock International Index Fund

To the Shareholders of BlackRock International Index Fund and Board of Directors of BlackRock Index Funds, Inc.:

We have audited the accompanying statement of assets and liabilities of BlackRock International Index Fund, one of the series constituting BlackRock Index Funds, Inc., (the “Fund”) as of December 31, 2011, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock International Index Fund of BlackRock Index Funds, Inc. as of December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Boston, Massachusetts
February 22, 2012

Important Tax Information (Unaudited)

The following information is provided with respect to the ordinary income distributions paid by the Fund for the taxable year ended December 31, 2011.

	Payable Date	Percentage/ Per Share
Qualified Dividend Income for Individuals1,2	7/22/11	100.00	%
	12/13/11	100.00	%
Foreign Source Income2	7/22/11	97.71	%
	12/13/11	97.71	%
Foreign Taxes Paid Per Share3	7/22/11	$0.002533
	12/13/11	$0.034811

1	The Fund hereby designates the percentage indicated or the maximum amount allowable by law.
2	Expressed as a percentage of the cash distribution grossed-up for foreign taxes.
3	The foreign taxes paid represent taxes incurred by the Fund on income received by the Fund from foreign sources. Foreign taxes paid may be included in taxable income with an offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments. You should consult your tax advisor regarding the appropriate treatment of foreign taxes paid.

16
BLACKROCK INTERNATIONAL INDEX FUND
DECEMBER 31, 2011

Portfolio Information Master International Index Series

As of December 31, 2011

Ten Largest Holdings	Percent of Long-Term Investments
Nestlé SA, Registered Shares	2	%
Vodafone Group Plc	1
HSBC Holdings Plc	1
BP Plc	1
Novartis AG, Registered Shares	1
Royal Dutch Shell Plc, Class A	1
Roche Holding AG	1
GlaxoSmithKline Plc	1
BHP Billiton Ltd.	1
Total SA	1

Geographic Allocations	Percent of Long-Term Investments
United Kingdom	23	%
Japan	21
France	9
Switzerland	9
Australia	8
Germany	8
Spain	3
Sweden	3
Hong Kong	3
Netherlands	3
Italy	2
Singapore	2
Other1	6

¹ Other includes a 1% or less investment in each of the following countries: Denmark, Belgium, Finland, Norway, Israel, Luxembourg, Ireland, Austria, Portugal, New Zealand, Bermuda, Greece and China.

BLACKROCK INTERNATIONAL INDEX FUND
DECEMBER 31, 2011
17

Schedule of Investments December 31, 2011	Master International Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Australia — 8.4%
AGL Energy Ltd.		40,065	$	586,224
Alumina Ltd.		210,098		240,533
Amcor Ltd.		108,736		800,474
AMP Ltd.		249,426		1,036,516
Asciano Ltd.		87,349		401,399
ASX Ltd.		15,855		494,908
Australia & New Zealand Banking Group Ltd.		233,618		4,893,106
Bendigo and Adelaide Bank Ltd.		33,458		273,843
BGP Holdings Plc		783,183		10
BHP Billiton Ltd.		285,460		10,076,350
Boral Ltd.		64,514		236,893
Brambles Ltd.		131,275		958,473
Caltex Australia Ltd.		12,363		148,451
Campbell Brothers Ltd.		6,048		302,851
CFS Retail Property Trust		167,131		287,782
Coca-Cola Amatil Ltd.		50,978		598,967
Cochlear Ltd.		4,821		306,187
Commonwealth Bank of Australia Ltd.		138,535		6,958,803
Computershare Ltd.		39,834		325,603
Crown Ltd.		42,229		348,335
CSL Ltd.		46,592		1,519,030
Dexus Property Group		436,867		370,228
Echo Entertainment Group Ltd. (a)		59,379		217,731
Fairfax Media Ltd.		210,117		154,789
Fortescue Metals Group Ltd.		109,781		480,238
Goodman Group		628,123		365,210
GPT Group		157,850		494,745
Harvey Norman Holdings Ltd.		51,396		95,945
Iluka Resources Ltd.		37,489		593,789
Incitec Pivot Ltd.		146,234		464,233
Insurance Australia Group Ltd.		187,815		572,167
Leighton Holdings Ltd.		13,328		259,089
Lend Lease Group		49,505		362,524
Lynas Corp. Ltd. (a)		159,398		170,316
Macquarie Group Ltd.		30,375		737,598
Metcash Ltd.		68,916		284,154
Mirvac Group		299,239		360,533
National Australia Bank Ltd.		195,601		4,659,516
Newcrest Mining Ltd.		67,941		2,070,508
OneSteel Ltd.		112,768		80,627
Orica Ltd.		32,729		809,848
Origin Energy Ltd.		94,512		1,288,822
OZ Minerals Ltd.		28,782		294,419
Qantas Airways Ltd. (a)		101,794		151,520
QBE Insurance Group Ltd.		96,970		1,283,339
QR National Ltd.		153,091		534,787
Ramsay Health Care Ltd.		11,800		232,249
Rio Tinto Ltd.		38,705		2,386,130
Santos Ltd.		83,636		1,046,668

Common Stocks	Shares		Value
Australia (concluded)
Sims Metal Management Ltd.		15,235	$	197,333
Sonic Healthcare Ltd.		33,723		388,700
SP AusNet		130,044		124,795
Stockland		211,155		689,799
Suncorp-Metway Ltd.		114,114		975,347
Sydney Airport		31,261		84,970
Tabcorp Holdings Ltd.		59,733		166,387
Tatts Group Ltd.		120,798		301,115
Telstra Corp. Ltd.		386,497		1,314,485
Toll Holdings Ltd.		60,262		259,475
Transurban Group		117,047		672,255
Wesfarmers Ltd., Ordinary Shares		89,346		2,691,437
Westfield Group		194,736		1,553,679
Westfield Retail Trust		257,040		655,066
Westpac Banking Corp.		269,295		5,497,451
Woodside Petroleum Ltd.		56,346		1,763,803
Woolworths Ltd.		108,073		2,774,056
WorleyParsons Ltd.		17,415		456,032
				72,182,645
Austria — 0.3%
Erste Bank der Oesterreichischen Sparkassen AG		17,307		303,814
Immoeast AG NPV		30,711		—
IMMOFINANZ Immobilien Anlagen AG (a)		83,913		251,503
OMV AG		14,801		448,352
Raiffeisen Bank International AG		4,394		113,741
Telekom Austria AG		30,477		364,607
Verbund AG		6,339		169,982
Vienna Insurance Group		3,349		132,275
Voestalpine AG		9,814		274,967
				2,059,241
Belgium — 0.9%
Ageas		192,525		297,438
Anheuser-Busch InBev NV		71,338		4,353,990
Bekaert SA		3,397		108,480
Belgacom SA		13,656		427,290
Colruyt SA		6,575		248,396
Delhaize Group		9,128		511,652
Groupe Bruxelles Lambert SA		7,252		482,436
KBC Bancassurance Holding		13,906		173,877
Mobistar SA		2,628		137,190
Solvay SA		5,376		441,344
UCB SA		9,154		384,039
Umicore SA		10,323		423,986
				7,990,118
Bermuda — 0.1%
Seadrill Ltd.		29,134		971,591

Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:
AUD	Australian Dollar
CHF	Swiss Franc
DKK	Danish Krone
EUR	Euro
GBP	British Pound
HKD	Hong Kong Dollar
ILS	Israeli New Shekel
JPY	Japanese Yen
NOK	Norwegian Krone
SEK	Swedish Krona
SGD	Singapore Dollar
USD	US Dollar

See Notes to Financial Statements.

18 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Schedule of Investments (continued)	Master International Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
China — 0.0%
Foxconn International Holdings Ltd. (a)		205,313	$	132,032
Denmark — 1.0%
A.P. Moller — Maersk A/S, Class A		47		291,930
A.P. Moller — Maersk A/S, Class B		117		769,587
Carlsberg A/S, Class B		9,589		675,195
Coloplast A/S, Class B		2,006		287,859
Danske Bank A/S (a)		58,674		741,403
DSV A/S		18,614		332,632
Novo-Nordisk A/S, Class B		37,789		4,341,321
Novozymes A/S, Class B		20,200		622,321
TDC A/S		34,011		272,373
Tryg A/S		2,275		126,021
Vestas Wind Systems A/S (a)		17,972		193,291
William Demant Holding A/S (a)		2,194		181,976
				8,835,909
Finland — 0.8%
Elisa Corp.		13,010		270,881
Fortum Oyj		39,929		850,410
Kesko Oyj, Class B		5,924		198,586
Kone Oyj, Class B		13,791		713,965
Metso Oyj		11,458		423,179
Neste Oil Oyj		12,128		121,975
Nokia Oyj		332,464		1,602,749
Nokian Renkaat Oyj		9,981		320,463
Orion Oyj		8,394		163,098
Pohjola Bank Plc		11,663		113,012
Sampo Oyj		37,251		921,444
Sanoma Oyj		6,877		78,706
Stora Enso Oyj, Class R		53,049		315,954
UPM-Kymmene Oyj		46,882		513,764
Wartsila Oyj		15,026		432,189
				7,040,375
France — 8.5%
Accor SA		12,527		315,699
Aeroports de Paris		3,212		219,720
Air Liquide		25,205		3,112,254
Alcatel-Lucent SA (a)		208,406		323,867
Alstom SA		18,612		562,266
Arkema SA		5,002		351,484
Atos Origin SA		4,573		199,791
AXA SA		154,552		1,997,772
BNP Paribas SA		85,842		3,342,638
Bouygues SA		16,962		533,467
Bureau Veritas SA		4,928		357,947
Cap Gemini SA		13,329		414,401
Carrefour SA		51,233		1,165,642
Casino Guichard Perrachon SA		4,970		417,926
Christian Dior SA		4,874		575,316
Cie Générale de Géophysique — Veritas (a)		12,556		291,450
Cie Générale des Etablissements Michelin, Class B		15,964		940,619
CNP Assurances		13,166		162,980
Compagnie de Saint-Gobain SA		35,649		1,362,709
Credit Agricole SA		89,561		501,790
Danone SA		51,882		3,255,721
Dassault Systèmes SA		5,426		433,443
Edenred		14,253		349,626
EDP Renoveveis SA		21,601		524,145
Eiffage SA		3,633		87,532
Essilor International SA		17,844		1,257,852

Common Stocks	Shares		Value
France (concluded)
Eurazeo		2,935	$	104,036
Eutelsat Communications SA		8,916		347,286
Foncière Des Regions		2,385		152,587
France Telecom SA		164,701		2,577,843
GDF Suez		109,997		2,988,963
Gecina SA		1,890		158,393
Groupe Eurotunnel SA		48,702		330,409
ICADE		2,075		162,599
Iliad SA		1,651		203,209
Imerys SA		3,156		144,753
JC Decaux SA (a)		5,485		125,935
Klepierre		9,565		271,772
L’Oreal SA		21,351		2,223,700
Lafarge SA		18,050		631,880
Lagardere S.C.A.		10,377		273,199
Legrand Promesses		20,060		642,535
LVMH Moët Hennessy Louis Vuitton SA		22,576		3,180,160
Natixis		82,834		206,987
Neopost SA		2,895		194,685
Pernod-Ricard SA		17,626		1,631,444
Peugeot SA		14,075		219,265
Pinault-Printemps-Redoute		6,750		963,490
Publicis Groupe		12,893		591,714
Renault SA		16,704		576,845
Safran SA		15,031		449,518
Sanofi-Aventis		101,865		7,446,097
Schneider Electric SA		43,477		2,273,036
Scor SE		15,483		361,019
Société BIC SA		2,487		220,019
Société Générale SA		58,542		1,292,350
Société Télévision Française 1		9,864		95,951
Sodexo Alliance SA		8,521		609,864
Suez Environnement Co.		25,071		288,039
Technip SA		8,685		814,218
Thales SA		9,102		286,501
Total SA		188,677		9,627,782
Unibail-Rodamco SE		8,160		1,460,421
Vallourec SA		10,022		647,390
Veolia Environnement SA		31,681		347,106
Vinci SA		40,073		1,744,316
Vivendi SA		110,760		2,417,837
Wendel SA		2,796		185,601
				72,528,811
Germany — 7.7%
Adidas-Salomon AG		18,565		1,206,225
Allianz AG, Registered Shares		40,385		3,856,934
Axel Springer AG		3,609		154,873
BASF SE		81,626		5,682,672
Bayer AG, Registered Shares		73,485		4,693,002
Bayerische Motoren Werke AG		29,403		1,965,535
Bayerische Motoren Werke AG, Preference Shares		4,787		226,011
Beiersdorf AG		9,069		513,931
Brenntag AG		3,030		281,766
Celesio AG		7,348		116,230
Commerzbank AG (a)		315,405		530,858
Continental AG (a)		7,170		445,246
Daimler AG		80,480		3,525,710
Deutsche Bank AG, Registered Shares		82,579		3,129,819
Deutsche Boerse AG (a)		17,292		905,025
Deutsche Lufthansa AG, Registered Shares		19,985		237,713
Deutsche Post AG		75,089		1,154,436
Deutsche Telekom AG, Registered Shares		249,523		2,862,248

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 19

Schedule of Investments (continued)	Master International Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Germany (concluded)
E.ON AG		160,005	$	3,448,131
Fraport AG		3,268		160,607
Fresenius Medical Care AG & Co.		18,534		1,258,906
Fresenius SE & Co. KGaA		10,085		932,579
GEA Group AG		15,650		441,814
Hannover Rueckversicherung AG, Registered Shares		5,466		270,844
HeidelbergCement AG		12,415		525,831
Henkel KGaA		11,649		563,587
Henkel KGaA, Preference Shares		15,800		910,841
Hochtief AG		3,923		226,514
Infineon Technologies AG		96,306		723,307
K+S AG		15,264		688,433
Kabel Deutschland Holding AG (a)		7,926		401,812
Lanxess AG		7,556		390,242
Linde AG		15,166		2,253,855
MAN AG		5,734		509,317
Merck KGaA		5,792		576,791
Metro AG		11,620		423,702
Muenchener Rueckversicherungs AG, Registered Shares		15,926		1,951,615
Porsche Automobil Holding SE, Preference Shares		13,551		723,421
ProSieben SAT.1 Media AG, Preference Shares		7,140		130,094
RWE AG		43,444		1,525,031
RWE AG, Preference Shares		3,320		109,224
Salzgitter AG		3,611		180,107
SAP AG		81,762		4,324,527
Siemens AG		73,127		6,996,486
Suedzucker AG		5,874		187,121
ThyssenKrupp AG		34,723		796,641
United Internet AG		9,819		175,026
Volkswagen AG		2,694		360,660
Volkswagen AG, Preference Shares		12,843		1,920,174
Wacker Chemie AG		1,481		118,962
				65,694,436
Greece — 0.1%
Coca-Cola Hellenic Bottling Co. SA (a)		16,733		282,620
Hellenic Telecommunications Organization SA		21,160		76,145
National Bank of Greece SA (a)		87,714		181,323
OPAP SA		19,756		173,859
				713,947
Hong Kong — 2.8%
AIA Group Ltd.		748,800		2,330,955
ASM Pacific Technology Ltd.		18,004		201,649
Bank of East Asia Ltd.		139,932		528,002
BOC Hong Kong Holdings Ltd.		332,400		784,347
Cathay Pacific Airways Ltd.		109,263		186,819
Cheung Kong Holdings Ltd.		123,835		1,468,978
Cheung Kong Infrastructure Holdings Ltd.		41,500		242,644
CLP Holdings Ltd.		171,187		1,454,382
First Pacific Co. Ltd.		190,000		197,142
Galaxy Entertainment Group Ltd. (a)		106,000		192,686
Hang Lung Group Ltd.		78,000		426,869
Hang Lung Properties Ltd.		218,000		618,811
Hang Seng Bank Ltd.		67,853		803,746
Henderson Land Development Co. Ltd.		84,491		418,547
HKT Trust HKT Ltd. (a)		369,000		211,900
The Hong Kong & China Gas Ltd.		420,450		973,498
Hong Kong Exchanges and Clearing Ltd.		91,027		1,448,420
Hopewell Holdings Ltd.		53,349		136,272

Common Stocks	Shares		Value
Hong Kong (concluded)
Hutchison Whampoa Ltd.		190,176	$	1,586,988
Hysan Development Co. Ltd.		54,791		179,416
Kerry Properties Ltd.		63,000		208,174
Li & Fung Ltd.		497,980		917,588
Lifestyle International Holdings Ltd.		52,466		115,483
The Link Real Estate Investment Trust		201,414		740,739
MTR Corp.		127,000		410,439
New World Development Ltd.		325,226		261,136
NWS Holdings Ltd.		115,500		169,824
Orient Overseas International Ltd.		18,057		104,970
PCCW Ltd.		369,000		126,615
Power Assets Holdings Ltd.		123,500		913,162
Sands China Ltd. (a)		217,000		608,812
Shangri-La Asia Ltd.		129,905		223,773
Sino Land Co. Ltd.		265,263		376,946
SJM Holdings Ltd.		147,000		238,545
Sun Hung Kai Properties Ltd.		126,324		1,578,660
Swire Pacific Ltd. Class A		63,077		759,986
Wharf Holdings Ltd.		134,357		605,638
Wheelock & Co. Ltd.		81,000		200,289
Wing Hang Bank Ltd.		17,000		139,082
Wynn Macau Ltd.		135,200		337,508
Yue Yuen Industrial Holdings Ltd.		64,285		202,860
				23,632,300
Ireland — 0.3%
Anglo Irish Bank Corp. Plc		62,641		1
CRH Plc		63,578		1,258,652
Elan Corp. Plc (a)		44,805		621,108
James Hardie Industries SE		39,740		277,052
Kerry Group Plc		12,658		463,371
Ryanair Holdings Plc (a)		29,444		137,725
				2,757,909
Israel — 0.7%
Bank Hapoalim Ltd.		96,242		314,711
Bank Leumi Le-Israel BM		105,341		302,507
Bezeq Israeli Telecommunication Corp. Ltd.		157,237		288,532
Cellcom Israel Ltd.		4,972		83,411
Delek Group Ltd.		395		74,522
Elbit Systems Ltd.		2,059		84,779
Israel Chemicals Ltd.		40,108		417,701
The Israel Corp. Ltd.		197		123,379
Israel Discount Bank Ltd. (a)		75,065		100,754
Mizrahi Tefahot Bank Ltd.		10,047		79,780
Nice Systems Ltd. (a)		5,144		176,796
Partner Communications Co. Ltd.		7,239		64,287
Teva Pharmaceutical Industries Ltd.		83,618		3,375,413
				5,486,572
Italy — 2.1%
A2A SpA		94,579		88,632
Assicurazioni Generali SpA		103,655		1,555,999
Atlantia SpA		28,601		456,512
Autogrill SpA		9,990		97,112
Banca Carige SpA		58,018		110,835
Banca Monte dei Paschi di Siena SpA		436,913		141,895
Banco Popolare SpA		151,959		196,041
Enel Green Power SpA		154,583		322,143
Enel SpA		584,629		2,371,683
Eni SpA		213,549		4,402,875
Exor SpA		5,439		109,043
Fiat Industrial SpA (a)		68,731		585,548

See Notes to Financial Statements.

20 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Schedule of Investments (continued) Master International Index Series
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Italy (concluded)
Fiat SpA		69,147	$	315,593
Finmeccanica SpA		37,075		136,513
Intesa Sanpaolo SpA		894,400		1,489,637
Intesa Sanpaolo SpA, Non-Convertible Savings Shares		90,027		111,670
Luxottica Group SpA		10,640		297,518
Mediaset SpA		61,786		170,427
Mediobanca SpA		47,138		270,559
Pirelli & C SpA		22,125		185,469
Prysmian SpA		17,540		216,720
Saipem SpA		23,292		985,339
Snam Rete Gas SpA		143,783		633,297
Telecom Italia SpA		832,746		890,088
Telecom Italia SpA (Non-Convertible Savings Shares)		547,064		489,517
Terna SpA		109,934		369,967
UniCredit SpA		123,309		1,017,069
Unione di Banche Italiane ScpA		73,098		298,364
				18,316,065
Japan — 21.2%
ABC-Mart, Inc.		2,200		83,573
Advantest Corp.		12,800		121,561
Aeon Co. Ltd.		53,800		736,961
Aeon Credit Service Co. Ltd.		7,100		111,875
Aeon Mall Co. Ltd.		6,800		144,260
Air Water, Inc.		12,000		152,304
Aisin Seiki Co. Ltd.		17,300		490,284
Ajinomoto Co., Inc.		59,000		708,268
Alfresa Holdings Corp.		3,700		155,737
All Nippon Airways Co. Ltd.		75,000		209,566
Amada Co. Ltd.		33,000		208,875
Aozora Bank Ltd.		53,000		145,827
Asahi Breweries Ltd.		34,300		752,435
Asahi Glass Co. Ltd.		90,100		753,226
Asahi Kasei Corp.		113,000		680,995
Asics Corp.		13,000		146,122
Astellas Pharma, Inc.		39,500		1,603,988
The Bank of Kyoto Ltd.		29,000		249,333
The Bank of Yokohama Ltd.		106,000		500,107
Benesse Holdings, Inc.		5,900		285,217
Bridgestone Corp.		57,800		1,309,065
Brother Industries Ltd.		21,300		260,701
Canon, Inc.		100,800		4,435,936
Casio Computer Co. Ltd.		20,100		121,629
Central Japan Railway Co.		134		1,130,863
The Chiba Bank Ltd.		68,000		437,195
Chiyoda Corp.		12,000		121,835
Chubu Electric Power Co., Inc.		60,200		1,126,518
Chugai Pharmaceutical Co. Ltd.		19,700		324,724
The Chugoku Bank Ltd.		16,000		222,639
The Chugoku Electric Power Co., Inc.		26,300		460,822
Citizen Holdings Co. Ltd.		23,400		135,619
Coca-Cola West Co. Ltd.		5,600		97,051
Cosmo Oil Co. Ltd.		47,000		131,192
Credit Saison Co. Ltd.		13,500		269,609
Dai Nippon Printing Co. Ltd.		50,000		479,990
The Dai-ichi Life Insurance Co.		798		783,394
Daicel Chemical Industries Ltd.		26,000		157,927
Daido Steel Co. Ltd.		25,000		156,072

Common Stocks	Shares		Value
Japan (continued)
Daihatsu Motor Co. Ltd.		17,000	$	302,308
Daiichi Sankyo Co. Ltd.		59,800		1,184,347
Daikin Industries Ltd.		21,000		573,239
Dainippon Sumitomo Pharma Co. Ltd.		12,800		145,676
Daito Trust Construction Co. Ltd.		6,300		539,448
Daiwa House Industry Co. Ltd.		41,000		490,141
Daiwa Securities Group Inc.		150,000		466,403
Dena Co. Ltd.		8,200		245,643
Denki Kagaku Kogyo KK		41,000		151,087
Denso Corp.		43,200		1,186,740
Dentsu Inc.		16,213		493,222
East Japan Railway Co.		30,249		1,928,021
Eisai Co. Ltd.		22,400		926,489
Electric Power Development Co.		10,600		281,879
Elpida Memory, Inc. (a)		22,200		102,710
FamilyMart Co. Ltd.		5,600		226,144
Fanuc Ltd.		17,100		2,608,302
Fast Retailing Co. Ltd.		4,600		836,762
Fuji Electric Co. Ltd.		48,800		133,630
Fuji Film Holdings Corp.		40,600		957,783
Fuji Heavy Industries Ltd.		53,000		317,884
Fujitsu Ltd.		163,000		845,146
Fukuoka Financial Group, Inc.		70,000		293,289
Furukawa Electric Co. Ltd.		54,000		123,896
Gree, Inc.		8,100		278,448
GS Yuasa Corp.		32,000		171,396
The Gunma Bank Ltd.		35,000		191,894
The Hachijuni Bank Ltd.		36,000		205,085
Hakuhodo DY Holdings, Inc.		2,070		118,681
Hamamatsu Photonics KK		6,100		212,678
Hino Motors Ltd.		23,000		139,261
Hirose Electric Co. Ltd.		2,800		244,906
The Hiroshima Bank Ltd.		45,000		208,721
Hisamitsu Pharmaceutical Co., Inc.		5,700		241,600
Hitachi Chemical Co. Ltd.		9,400		164,545
Hitachi Construction Machinery Co. Ltd.		9,800		164,392
Hitachi High-Technologies Corp.		5,600		121,312
Hitachi Ltd.		402,000		2,091,191
Hitachi Metals Ltd.		13,000		141,077
Hokkaido Electric Power Co., Inc.		16,100		228,859
Hokuhoku Financial Group, Inc.		113,100		219,914
Hokuriku Electric Power Co.		14,900		278,267
Honda Motor Co. Ltd.		144,900		4,413,782
Hoya Corp.		38,600		829,866
Ibiden Co. Ltd.		11,000		216,569
Idemitsu Kosan Co. Ltd.		2,000		206,114
IHI Corp.		120,000		290,936
Inpex Corp.		195		1,227,763
Isetan Mitsukoshi Holdings Ltd.		33,905		354,211
Isuzu Motors Ltd.		105,000		483,371
ITOCHU Corp.		133,700		1,355,645
Itochu Techno-Solutions Corp.		2,600		116,625
The Iyo Bank Ltd.		22,000		216,788
J. Front Retailing Co. Ltd.		44,600		214,998
Japan Petroleum Exploration Co.		2,400		93,654
Japan Prime Realty Investment Corp.		58		136,300
Japan Real Estate Investment Corp.		42		326,997
Japan Retail Fund Investment Corp.		171		252,954
The Japan Steel Works Ltd.		28,000		194,231
Japan Tobacco, Inc.		400		1,881,004
JFE Holdings, Inc.		40,900		739,471
JGC Corp.		18,000		432,156

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 21

Schedule of Investments (continued) Master International Index Series
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Japan (continued)
The Joyo Bank Ltd.		59,000	$	260,374
JS Group Corp.		23,800		456,148
JSR Corp.		16,000		294,883
JTEKT Corp.		19,900		194,487
Jupiter Telecommunications Co. Ltd.		148		149,807
JX Holdings, Inc.		199,360		1,203,057
Kajima Corp.		76,800		235,699
Kamigumi Co. Ltd.		23,000		198,524
Kaneka Corp.		25,000		132,665
The Kansai Electric Power Co., Inc.		66,700		1,024,589
Kansai Paint Co. Ltd.		20,000		178,132
Kao Corp.		46,700		1,274,256
Kawasaki Heavy Industries Ltd.		125,000		310,109
Kawasaki Kisen Kaisha Ltd.		65,000		117,043
KDDI Corp.		259		1,663,375
Keikyu Corp.		42,000		377,196
Keio Electric Railway Co. Ltd.		50,000		352,661
Keisei Electric Railway Co. Ltd.		24,000		176,456
Keyence Corp.		3,720		896,667
Kikkoman Corp.		12,000		137,645
Kinden Corp.		12,000		101,161
Kintetsu Corp.		146,000		570,266
Kirin Holdings Co. Ltd.		71,000		862,702
Kobe Steel Ltd.		225,000		347,742
Koito Manufacturing Co. Ltd.		8,000		111,820
Komatsu Ltd.		84,300		1,965,698
Konami Corp.		8,200		245,211
Konica Minolta Holdings, Inc.		42,000		312,303
Kubota Corp.		102,000		853,591
Kuraray Co. Ltd.		30,700		435,684
Kurita Water Industries Ltd.		9,700		251,791
Kyocera Corp.		13,600		1,090,633
Kyowa Hakko Kirin Co. Ltd.		22,000		268,549
Kyushu Electric Power Co., Inc.		36,200		518,558
Lawson, Inc.		5,400		336,449
Mabuchi Motor Co. Ltd.		2,100		87,220
Makita Corp.		10,100		325,840
Marubeni Corp.		144,000		876,497
Marui Group Co. Ltd.		17,900		139,151
Maruichi Steel Tube Ltd.		4,500		100,073
Mazda Motor Corp. (a)		138,400		243,346
McDonald’s Holdings Co. Japan Ltd.		6,200		166,947
Medipal Holdings Corp.		13,900		145,125
Meiji Holdings Co. Ltd.		6,193		256,486
Miraca Holdings, Inc.		5,100		203,324
Mitsubishi Chemical Holdings Corp.		122,000		668,612
Mitsubishi Corp.		124,900		2,517,329
Mitsubishi Electric Corp.		172,000		1,648,420
Mitsubishi Estate Co. Ltd.		112,000		1,670,078
Mitsubishi Gas Chemical Co., Inc.		35,000		194,076
Mitsubishi Heavy Industries Ltd.		270,200		1,147,594
Mitsubishi Logistics Corp.		11,000		121,819
Mitsubishi Materials Corp.		101,000		273,066
Mitsubishi Motors Corp. (a)		346,000		407,705
Mitsubishi Tanabe Pharma Corp.		20,400		322,281
Mitsubishi UFJ Financial Group, Inc.		1,132,074		4,792,612
Mitsubishi UFJ Lease & Finance Co. Ltd.		5,260		208,192
Mitsui & Co. Ltd.		154,400		2,393,083
Mitsui Chemicals, Inc.		67,000		203,433
Mitsui Fudosan Co. Ltd.		74,000		1,079,046
Mitsui OSK Lines Ltd.		99,000		381,731

Common Stocks	Shares		Value
Japan (continued)
Mizuho Financial Group, Inc.		2,026,164	$	2,743,647
MS&AD Insurance Group Holdings, Inc.		50,570		933,451
Murata Manufacturing Co. Ltd.		18,000		921,811
Nabtesco Corp.		8,800		160,075
Namco Bandai Holdings, Inc.		17,300		245,531
NEC Corp. (a)		233,000		471,567
NGK Insulators Ltd.		23,000		272,309
NGK Spark Plug Co. Ltd.		12,000		148,307
NHK Spring Co. Ltd.		14,000		123,736
Nidec Corp.		9,700		842,211
Nikon Corp.		30,200		669,248
Nintendo Co. Ltd.		8,800		1,208,171
Nippon Building Fund, Inc.		50		409,196
Nippon Electric Glass Co.		33,500		329,782
Nippon Express Co. Ltd.		77,000		299,325
Nippon Meat Packers, Inc.		15,000		185,870
Nippon Paper Group, Inc.		8,894		194,205
Nippon Sheet Glass Co. Ltd.		77,000		143,503
Nippon Steel Corp.		453,000		1,126,873
Nippon Telegraph & Telephone Corp.		42,476		2,162,449
Nippon Yusen KK		135,000		344,099
The Nishi-Nippon City Bank Ltd.		62,000		177,842
Nissan Motor Co. Ltd.		220,800		1,977,285
Nisshin Seifun Group, Inc.		16,500		199,747
Nisshin Steel Co. Ltd.		62,000		94,863
Nissin Foods Holdings Co. Ltd.		5,200		203,880
Nitori Holdings Co. Ltd.		3,350		314,122
Nitto Denko Corp.		14,810		526,798
NKSJ Holdings, Inc.		33,475		654,838
NOK Corp.		9,700		165,473
Nomura Holdings, Inc.		322,100		969,757
Nomura Real Estate Holdings, Inc.		8,300		123,158
Nomura Real Estate Office Fund, Inc.		25		128,300
Nomura Research Institute Ltd.		9,000		203,037
NSK Ltd.		39,000		251,911
NTN Corp.		41,000		164,459
NTT Data Corp.		115		366,183
NTT DoCoMo, Inc.		1,357		2,491,479
NTT Urban Development Corp.		115		78,206
Obayashi Corp.		58,000		257,901
Odakyu Electric Railway Co. Ltd.		56,000		541,384
OJI Paper Co. Ltd.		72,000		369,655
Olympus Corp.		18,800		247,124
Omron Corp.		17,800		357,299
Ono Pharmaceutical Co. Ltd.		7,500		420,625
Oracle Corp. Japan		3,200		105,779
Oriental Land Co. Ltd.		4,500		475,085
ORIX Corp.		9,140		753,513
Osaka Gas Co. Ltd.		169,000		667,701
Otsuka Corp.		1,300		89,462
Otsuka Holdings Co. Ltd.		22,600		634,287
Panasonic Corp.		196,000		1,654,175
Rakuten, Inc. (a)		650		699,303
Resona Holdings, Inc.		169,056		744,186
Ricoh Co. Ltd.		60,000		521,902
Rinnai Corp.		3,000		214,814
Rohm Co. Ltd.		8,600		399,908
Sankyo Co. Ltd.		4,900		247,730
Sanrio Co. Ltd.		3,900		200,035
Santen Pharmaceutical Co. Ltd.		6,800		280,822
SBI Holdings, Inc.		1,838		134,184
Secom Co. Ltd.		18,700		859,905

See Notes to Financial Statements.

22 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Schedule of Investments (continued) Master International Index Series
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Japan (continued)
Sega Sammy Holdings, Inc.		18,832	$	406,834
Seiko Epson Corp.		11,900		157,288
Sekisui Chemical Co. Ltd.		36,000		296,553
Sekisui House Ltd.		52,000		462,092
Seven & I Holdings Co. Ltd.		67,000		1,867,270
Seven Bank Ltd.		44,000		86,105
Sharp Corp.		89,000		775,818
Shikoku Electric Power Co. Inc.		16,200		464,744
Shimadzu Corp.		19,000		160,228
Shimamura Co. Ltd.		1,900		194,132
Shimano, Inc.		6,300		306,633
Shimizu Corp.		53,000		222,755
Shin-Etsu Chemical Co. Ltd.		36,500		1,792,872
Shinsei Bank Ltd.		116,000		119,940
Shionogi & Co. Ltd.		26,300		337,390
Shiseido Co. Ltd.		32,200		591,280
The Shizuoka Bank Ltd.		52,000		547,054
Showa Denko KK		125,000		252,277
Showa Shell Sekiyu KK		17,300		116,320
SMC Corp.		4,700		756,163
Softbank Corp.		78,800		2,314,203
Sojitz Corp.		113,700		175,606
Sony Corp.		89,200		1,608,363
Sony Financial Holdings, Inc.		15,500		228,596
Square Enix Holdings Co. Ltd.		5,300		103,872
Stanley Electric Co. Ltd.		13,200		193,441
Sumco Corp. (a)		10,600		78,030
Sumitomo Chemical Co. Ltd.		142,000		515,575
Sumitomo Corp.		99,900		1,350,362
Sumitomo Electric Industries Ltd.		66,900		724,305
Sumitomo Heavy Industries Ltd.		49,000		285,978
Sumitomo Metal Industries Ltd.		302,000		547,696
Sumitomo Metal Mining Co. Ltd.		47,000		601,703
Sumitomo Mitsui Financial Group, Inc.		119,350		3,309,907
Sumitomo Mitsui Trust Holdings, Inc.		276,820		811,785
Sumitomo Realty & Development Co. Ltd.		32,000		559,111
Sumitomo Rubber Industries Ltd.		15,800		189,731
Suruga Bank Ltd.		17,000		151,732
Suzuken Co. Ltd.		6,400		177,216
Suzuki Motor Corp.		30,100		619,761
Sysmex Corp.		6,700		217,830
T&D Holdings, Inc.		51,900		483,237
Taisei Corp.		93,000		235,741
Taisho Pharmaceutical Holdings Co. Ltd. (a)		3,200		246,953
Taiyo Nippon Sanso Corp.		21,000		146,038
Takashimaya Co. Ltd.		21,000		151,257
Takeda Pharmaceutical Co. Ltd.		70,200		3,083,568
TDK Corp.		10,600		467,495
Teijin Ltd.		85,000		260,782
Terumo Corp.		14,700		691,040
THK Co. Ltd.		10,900		214,705
Tobu Railway Co. Ltd.		88,000		449,014
Toho Co. Ltd.		9,900		176,299
Toho Gas Co. Ltd.		38,000		241,959
Tohoku Electric Power Co. Inc.		40,900		392,946
Tokio Marine Holdings, Inc.		64,300		1,423,848
The Tokyo Electric Power Co., Inc. (a)		130,000		311,979
Tokyo Electron Ltd.		15,000		760,014
Tokyo Gas Co. Ltd.		219,000		1,009,276
Tokyu Corp.		98,000		482,609
Tokyu Land Corp.		38,000		143,398

Common Stocks	Shares		Value
Japan (concluded)
TonenGeneral Sekiyu KK		26,000	$	283,498
Toppan Printing Co. Ltd.		50,000		367,079
Toray Industries, Inc.		130,700		935,110
Toshiba Corp.		358,000		1,461,011
Tosoh Corp.		45,000		119,582
Toto Ltd.		27,000		208,414
Toyo Seikan Kaisha Ltd.		13,800		187,807
Toyo Suisan Kaisha Ltd.		8,000		193,598
Toyoda Gosei Co. Ltd.		5,700		90,271
Toyota Boshoku Corp.		5,100		53,092
Toyota Industries Corp.		15,400		416,658
Toyota Motor Corp.		245,200		8,108,054
Toyota Tsusho Corp.		19,000		334,910
Trend Micro, Inc. (a)		8,800		262,412
Tsumura & Co.		5,600		165,090
Ube Industries Ltd.		84,000		229,597
Uni-charm Corp.		10,200		502,903
Ushio, Inc.		9,900		142,290
USS Co. Ltd.		1,940		175,334
West Japan Railway Co.		14,900		647,425
Yahoo! Japan Corp.		1,284		413,080
Yakult Honsha Co. Ltd.		8,700		273,515
Yamada Denki Co. Ltd.		7,100		483,646
Yamaguchi Financial Group, Inc.		18,000		171,518
Yamaha Corp.		13,300		121,473
Yamaha Motor Co. Ltd.		25,600		323,780
Yamato Holdings Co. Ltd.		34,600		582,341
Yamato Kogyo Co. Ltd.		3,800		108,761
Yamazaki Baking Co. Ltd.		10,000		131,391
Yaskawa Electric Corp.		19,000		160,905
Yokogawa Electric Corp. (a)		19,500		175,098
				181,431,998
Luxembourg — 0.4%
ArcelorMittal		76,199		1,384,570
Millicom International Cellular SA		6,844		683,715
SES Global		26,546		635,953
Tenaris SA		41,856		769,780
				3,474,018
Netherlands — 2.7%
Aegon NV (a)		154,577		617,797
Akzo Nobel NV		20,547		990,151
ASML Holding NV		38,288		1,599,345
Corio NV		5,219		225,988
Delta Lloyd NV		9,636		161,436
European Aeronautic Defence and Space Co. NV		36,376		1,132,713
Fugro NV		6,199		358,831
Heineken Holding NV		10,186		416,269
Heineken NV		22,994		1,064,515
ING Groep NV (a)		340,216		2,433,088
Koninklijke Ahold NV		103,122		1,386,021
Koninklijke Boskalis Westminster NV		5,872		215,073
Koninklijke DSM NV		13,844		639,890
Koninklijke KPN NV		131,165		1,565,738
Koninklijke Philips Electronics NV		89,592		1,879,792
Koninklijke Vopak NV		6,300		332,217
QIAGEN NV (a)		20,535		282,736
Randstad Holding NV		10,816		318,179
Reed Elsevier NV		60,952		709,201
SBM Offshore NV		15,337		314,389
STMicroelectronics NV		57,655		341,311

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 23

Schedule of Investments (continued) Master International Index Series
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Netherlands (concluded)
TNT Express NV	32,089	$	238,998
Unilever NV	144,761		4,977,398
Wolters Kluwer NV	27,037		466,252
			22,667,328
New Zealand — 0.1%
Auckland International Airport Ltd.	81,425		159,481
Contact Energy Ltd. (a)	29,916		122,755
Fletcher Building Ltd.	59,637		284,779
Sky City Ltd.	51,491		137,568
Telecom Corp. of New Zealand Ltd.	171,010		274,003
			978,586
Norway — 0.8%
Aker Solutions ASA	14,045		147,218
DnB NOR ASA	86,644		844,499
Gjensidige Forsikring ASA	17,265		199,842
Norsk Hydro ASA	83,258		384,332
Orkla ASA	68,292		508,540
Statoil ASA	99,131		2,538,772
Subsea 7 SA (a)	24,861		458,937
Telenor ASA	64,195		1,050,471
Yara International ASA	16,632		663,944
			6,796,555
Portugal — 0.2%
Banco Espirito Santo SA, Registered Shares	44,077		76,759
Cimpor-Cimentos de Portugal, SGPS SA	19,097		131,172
Energias de Portugal SA	172,968		534,189
Galp Energia SGPS SA	20,400		299,728
Jeronimo Martins SGPS SA (a)	19,300		318,786
Portugal Telecom SGPS SA, Registered Shares	59,975		345,421
			1,706,055
Singapore — 1.6%
Ascendas Real Estate Investment Trust	161,962		228,694
CapitaLand Ltd.	232,749		396,103
CapitaMall Trust	193,700		253,610
CapitaMalls Asia Ltd.	127,000		110,603
City Developments Ltd.	45,535		312,059
ComfortDelGro Corp. Ltd.	173,816		189,655
Cosco Corp. (Singapore) Ltd.	81,002		54,511
DBS Group Holdings Ltd.	156,407		1,388,312
Fraser and Neave Ltd.	82,096		391,906
Genting Singapore Plc (a)	549,227		639,077
Global Logistic Properties Ltd. (a)	158,000		213,595
Golden Agri-Resources Ltd.	586,251		323,020
Hutchison Port Holdings Trust	460,000		284,575
Jardine Cycle & Carriage Ltd.	9,721		360,682
Keppel Corp. Ltd.	126,577		906,017
Keppel Land Ltd.	66,000		112,818
Neptune Orient Lines Ltd.	73,350		63,430
Noble Group Ltd.	351,840		305,699
Olam International Ltd.	132,900		217,846
Oversea-Chinese Banking Corp.	225,914		1,362,453
SembCorp Industries Ltd.	89,590		279,436
Sembcorp Marine Ltd.	74,197		218,056
Singapore Airlines Ltd.	49,009		383,521
Singapore Exchange Ltd.	76,000		359,228
Singapore Press Holdings Ltd.	133,316		378,944
Singapore Technologies Engineering Ltd.	138,213		286,687
Singapore Telecommunications Ltd.	708,132		1,686,592

Common Stocks	Shares		Value
Singapore (concluded)
StarHub Ltd.	52,157	$	117,020
United Overseas Bank Ltd.	111,572		1,313,039
UOL Group Ltd.	43,457		133,862
Wilmar International Ltd.	167,670		646,367
Yangzijiang Shipbuilding Holdings Ltd.	161,183		112,810
			14,030,227
Spain — 3.2%
Abertis Infraestructuras SA	34,250		544,292
Acciona SA	2,350		201,970
Acerinox SA	9,281		118,634
ACS Actividades de Construccion y Servicios SA	12,719		375,537
Amadeus IT Holding SA, Class A	28,081		453,458
Banco Bilbao Vizcaya Argentaria SA	407,238		3,508,029
Banco de Sabadell SA	98,280		372,167
Banco Popular Espanol SA	87,441		397,150
Banco Santander SA	750,093		5,666,691
Bankia SA (a)	78,282		364,233
Bankinter SA	18,086		110,665
Criteria Caixacorp SA	67,845		331,557
Distribuidora Internacional de Alimentacion SA (a)	50,193		225,962
EDP Renovaveis SA (a)	19,120		116,759
Enagas SA	16,213		299,339
Ferrovial SA	33,161		398,786
Fomento de Construcciones y Contratas SA	4,845		125,088
Gas Natural SDG SA	31,110		533,190
Grifols SA (a)	12,868		215,613
Iberdrola SA	339,573		2,121,119
Inditex SA	19,368		1,581,105
Indra Sistemas SA	8,623		109,322
International Consolidated Airlines Group SA (a)	86,524		194,014
Mapfre SA	68,993		218,224
Red Electrica de Espana	9,707		414,511
Repsol YPF SA	70,477		2,156,265
Telefonica SA	365,060		6,289,311
Zardoya Otis SA	12,911		176,559
			27,619,550
Sweden — 3.0%
Alfa Laval AB	30,263		571,530
Assa Abloy AB, Series B	27,837		696,082
Atlas Copco AB, Class A	59,591		1,276,827
Atlas Copco AB, Class B	34,978		662,140
Boliden AB	24,882		360,976
Electrolux AB	21,871		347,510
Getinge AB, Class B	18,129		458,422
Hennes & Mauritz AB, B Shares	90,831		2,913,853
Hexagon AB	21,521		320,380
Holmen AB, Class B	4,661		133,482
Husqvarna AB	38,981		178,974
Industrivarden AB	11,056		131,411
Investor AB	39,881		741,736
Kinnevik Investment AB	18,465		358,895
Lundin Petroleum AB (a)	19,946		488,530
Modern Times Group AB	4,461		212,481
Nordea Bank AB	233,586		1,800,396
Ratos AB	17,816		208,500
Sandvik AB	89,454		1,093,617
Scania AB	28,724		423,999
Securitas AB	28,442		244,642
Skandinaviska Enskilda Banken AB, Class A	125,005		725,280
Skanska AB, Class B	35,924		592,918

See Notes to Financial Statements.
24	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (continued) Master International Index Series
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Sweden (concluded)
SKF AB, Class B	34,686	$	731,197
SSAB AB, Series A	13,368		117,062
Svenska Cellulosa AB	51,208		755,943
Svenska Handelsbanken, Class A	43,463		1,138,973
Swedbank AB, Class A	71,029		916,601
Swedish Match AB	18,871		668,477
Tele2 AB	28,416		550,690
Telefonaktiebolaget LM Ericsson	267,517		2,712,784
TeliaSonera AB	192,135		1,301,903
Volvo AB, B Shares	123,258		1,342,771
	��		25,178,982
Switzerland — 8.5%
ABB Ltd. (a)	194,769		3,658,980
Actelion Ltd. (a)	9,964		340,838
Adecco SA, Registered Shares (a)	11,874		494,864
Aryzta AG	7,612		367,227
Baloise Holding AG	4,303		294,389
Barry Callebaut AG (a)	162		159,381
Compagnie Financière Richemont SA	46,364		2,332,234
Crédit Suisse Group AG (a)	101,342		2,375,270
GAM Holdings Ltd. (a)	17,488		189,386
Geberit AG (a)	3,509		674,506
Givaudan SA (a)	744		706,970
Holcim Ltd. (a)	21,766		1,160,238
Julius Baer Group Ltd. (a)	18,311		713,258
Kuehne & Nagel International AG	4,840		541,979
Lindt & Spruengli AG	81		240,677
Lindt & Spruengli AG, Registered Shares	10		333,590
Lonza Group AG, Registered Shares (a)	4,607		271,456
Nestlé SA, Registered Shares	293,354		16,845,415
Novartis AG, Registered Shares	207,450		11,843,954
Pargesa Holding SA	2,442		159,516
Partners Group Holding AG	1,195		208,183
Roche Holding AG	62,450		10,561,435
Schindler Holding AG	4,356		506,341
Schindler Holding AG, Registered Shares	1,929		223,515
SGS SA	486		801,580
Sika AG	182		342,209
Sonova Holding AG, Registered Shares (a)	4,403		458,715
Straumann Holding AG, Registered Shares	656		112,984
Sulzer AG	2,218		236,186
The Swatch Group Ltd., Bearer Shares	2,736		1,018,385
The Swatch Group Ltd., Registered Shares	3,943		261,476
Swiss Life Holding (a)	2,722		249,304
Swiss Reinsurance Co., Registered Shares (a)	30,650		1,558,237
Swisscom AG	2,091		790,874
Syngenta AG, Registered Shares (a)	8,403		2,469,225
Synthes, Inc.	5,792		969,463
Transocean Ltd.	30,693		1,181,315
UBS AG, Registered Shares (a)	323,372		3,836,058
Zurich Financial Services AG (a)	12,938		2,915,025
			72,404,638

Common Stocks	Shares		Value
United Kingdom — 22.9%
3i Group Plc	84,667	$	237,706
Admiral Group Plc	17,676		234,347
Aggreko Plc	23,574		737,651
Amec Plc	29,771		419,276
Anglo American Plc	117,576		4,343,274
Antofagasta Plc	34,360		649,835
ARM Holdings Plc	119,652		1,104,444
Associated British Foods Plc	30,849		529,922
AstraZeneca Plc	119,432		5,516,803
Aviva Plc	254,041		1,181,629
Babcock International Group Plc	32,179		367,118
BAE Systems Plc	298,413		1,318,633
Balfour Beatty Plc	60,162		247,294
Barclays Plc	1,028,888		2,817,800
BG Group Plc	301,273		6,436,288
BHP Billiton Plc	187,699		5,487,504
BP Plc	1,683,856		11,994,589
British American Tobacco Plc	175,713		8,335,892
British Land Co. Plc	73,115		524,772
British Sky Broadcasting Group Plc	101,087		1,150,096
BT Group Plc	690,341		2,046,296
Bunzl Plc	29,609		406,281
Burberry Group Plc	38,848		714,322
Cairn Energy Plc (a)	126,105		518,455
The Capita Group Plc	54,287		529,389
Capital Shopping Centres Group Plc	48,885		236,855
Carnival Plc	16,492		543,609
Centrica Plc	459,271		2,062,815
Cobham Plc	100,563		286,346
Compass Group Plc	168,414		1,598,042
Diageo Plc	222,517		4,862,016
Essar Energy Plc (a)	29,542		78,693
Eurasian Natural Resources Corp. Plc	23,514		231,906
Experian Plc	89,049		1,210,402
Fresnillo Plc	16,255		385,157
G4S Plc	127,390		537,720
GKN Plc	138,990		394,692
GlaxoSmithKline Plc	451,042		10,277,406
Glencore International Plc	74,829		456,900
Hammerson Plc	63,897		356,809
HSBC Holdings Plc	1,586,383		12,110,517
ICAP Plc	49,487		266,560
Imperial Tobacco Group Plc	90,028		3,406,705
Inmarsat Plc	39,692		248,580
Intercontinental Hotels Group Plc	26,163		470,407
International Power Plc	136,900		715,845
Intertek Group Plc	14,546		459,348
Invensys Plc	73,682		240,959
Investec Plc	44,581		234,614
ITV Plc	324,659		342,981
J Sainsbury Plc	109,355		514,135
Johnson Matthey Plc	19,282		549,383
Kazakhmys Plc	18,566		268,071
Kingfisher Plc	209,579		814,423
Land Securities Group Plc	69,522		685,694
Legal & General Group Plc	520,545		831,869
Lloyds Banking Group Plc (a)	3,660,302		1,470,271

See Notes to Financial Statements.
	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2011	25

Schedule of Investments (continued)	Master International Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
United Kingdom (concluded)
London Stock Exchange Group Plc		13,856	$	170,407
Lonmin Plc		14,124		215,199
Man Group Plc		170,006		331,773
Marks & Spencer Group Plc		142,712		689,271
Meggitt Plc		69,658		381,295
National Grid Plc		316,195		3,056,272
Next Plc		15,058		638,824
Old Mutual Plc		490,357		1,031,384
Pearson Plc		72,299		1,356,958
Petrofac Ltd.		23,369		522,654
Prudential Plc		226,278		2,238,833
Randgold Resources Ltd.		8,112		829,360
Reckitt Benckiser Group Plc		55,004		2,712,798
Reed Elsevier Plc		107,861		868,293
Resolution Ltd.		127,197		495,844
Rexam Plc		78,442		429,298
Rio Tinto Plc, Registered Shares		124,326		6,072,891
Rolls-Royce Holdings Plc (a)		166,247		1,924,833
Royal Bank of Scotland Group Plc (a)		1,570,779		495,122
Royal Dutch Shell Plc, Class A		321,693		11,802,677
Royal Dutch Shell Plc, Class B		238,598		9,075,759
RSA Insurance Group Plc		310,978		507,689
SABMiller Plc		84,677		2,976,950
The Sage Group Plc		119,005		543,777
Schroders Plc		10,062		205,149
Scottish & Southern Energy Plc		83,183		1,665,098
Segro Plc		65,911		213,419
Serco Group Plc		44,600		328,163
Severn Trent Plc		21,510		499,156
Shire Plc		49,939		1,735,585
Smith & Nephew Plc		80,158		777,923
Smiths Group Plc		35,177		499,224
Standard Chartered Plc		211,416		4,624,199
Standard Life Plc		210,131		673,259
Tate & Lyle Plc		41,890		457,963
Tesco Plc		712,289		4,456,676
Tui Travel Plc		42,176		108,785
Tullow Oil Plc		80,257		1,743,839
Unilever Plc		114,039		3,824,193
United Utilities Group Plc		60,262		566,648
Vedanta Resources Plc		10,542		166,325
Vodafone Group Plc		4,518,390		12,597,741
The Weir Group Plc		18,965		598,606
Whitbread Plc		15,173		368,378
WM Morrison Supermarkets Plc		194,176		982,140
Wolseley Plc		24,934		824,698
WPP Plc		111,905		1,173,576
Xstrata Plc		184,355		2,806,834
				196,265,084
Total Long-Term Investments (Cost — $875,963,977) — 98.3%				840,894,972

Short-Term Securities	Shares		Value
BlackRock Liquidity Funds, TempCash, Institutional Class, 0.07% (b)(c)		1,969,251	$	1,969,251
Total Short-Term Securities (Cost — $1,969,251) — 0.2%				1,969,251
Total Investments (Cost — $877,933,228*) — 98.5%				842,864,223
Other Assets Less Liabilities — 1.5%				12,916,695
Net Assets — 100.0%			$	855,780,918

* As of December 31, 2011, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	929,473,570
Gross unrealized appreciation	$	108,922,210
Gross unrealized depreciation		(195,531,557	)
Net unrealized depreciation	$	(86,609,347	)

(a)	Non-income producing security.
(b)	Investments in companies considered to be an affiliate of the Series during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at December 31, 2010		Net Activity			Shares Held at December 31, 2011		Income
BlackRock Liquidity Funds, TempCash, Institutional Class		2,576,868		(607,617	)		1,969,251	$	2,226

(c)	Represents the current yield as of report date.
•	Financial futures contracts purchased as of December 31, 2011 were as follows:

Contracts	Index	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
101	DJ Euro Stoxx 50	Eurex	March 2012	$	3,017,001	$	50,452
27	E-Mini MSCI EAFE Index	Chicago Mercantile	March 2012	$	1,902,690		7,367
33	FTSE 100 Index	NYSE Liffe	March 2012	$	2,837,145		43,925
39	Nikkei 225 Index	Singapore	March 2012	$	2,143,303		(11,293	)
12	SPI 200 Index	Australian Securities Exchange	March 2012	$	1,233,190		(33,841	)
Total						$	56,610

See Notes to Financial Statements.

26 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Schedule of Investments (concluded) Master International Index Series

• Foreign currency exchange contracts as of December 31, 2011 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD	2,217,741	AUD	2,163,000	Credit Suisse Securities LLC	1/03/12	$	5,424
USD	1,518,530	CHF	1,420,000	Credit Suisse Securities LLC	1/03/12		6,766
USD	156,672	DKK	897,000	Credit Suisse Securities LLC	1/03/12		489
USD	6,685,473	EUR	5,150,000	Credit Suisse Securities LLC	1/03/12		20,083
USD	6,076,566	GBP	3,910,000	Credit Suisse Securities LLC	1/03/12		4,336
USD	527,002	HKD	4,093,000	Credit Suisse Securities LLC	1/03/12		2
USD	62,766	ILS	240,000	Credit Suisse Securities LLC	1/03/12		(210)
USD	224,365	NOK	1,339,000	Credit Suisse Securities LLC	1/03/12		484
USD	576,780	SEK	3,954,000	Credit Suisse Securities LLC	1/03/12		2,242
USD	241,391	SGD	313,000	Credit Suisse Securities LLC	1/03/12		74
AUD	585,252	USD	600,000	Credit Suisse Securities LLC	1/04/12		(1,405	)
EUR	1,386,580	USD	1,800,000	Credit Suisse Securities LLC	1/04/12		(5,418	)
GBP	1,093,881	USD	1,700,000	Credit Suisse Securities LLC	1/04/12		(1,203	)
USD	4,419,011	JPY	340,000,000	Credit Suisse Securities LLC	1/04/12		1,705
Total						$	33,369

•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
	•	Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Series’ own assumptions used in determining the fair value of investments and derivative financial instruments)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Series’ perceived risk of investing in those securities. For information about the Series’ policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of December 31, 2011 in determining the fair valuation of the Series’ investments and derivative financial instruments:

Valuation Inputs	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Australia		—	$	72,182,635	$	10	$	72,182,645
Austria		—		2,059,241		—		2,059,241
Belgium		—		7,990,118		—		7,990,118
Bermuda		—		971,591		—		971,591
China		—		132,032		—		132,032
Denmark		—		8,835,909		—		8,835,909
Finland		—		7,040,375		—		7,040,375
France		—		72,528,811		—		72,528,811
Germany		—		65,694,436		—		65,694,436
Greece	$	282,620		431,327		—		713,947
Hong Kong		211,900		23,420,400		—		23,632,300
Ireland		—		2,757,908		1		2,757,909
Israel		—		5,486,572		—		5,486,572
Italy		—		18,316,065		—		18,316,065
Japan		246,953		181,185,045		—		181,431,998
Luxembourg		—		3,474,018		—		3,474,018
Netherlands		1,064,515		21,602,813		—		22,667,328
New Zealand		—		978,586		—		978,586
Norway		—		6,796,555		—		6,796,555
Portugal		345,421		1,360,634		—		1,706,055
Singapore		284,575		13,745,652		—		14,030,227
Spain		364,233		27,255,317		—		27,619,550
Sweden		—		25,178,982		—		25,178,982
Switzerland		—		72,404,638		—		72,404,638
United Kingdom		—		196,265,084		—		196,265,084
Short-Term Securities		1,969,251		—		—		1,969,251
Total	$	4,769,468	$	838,094,744	$	11	$	842,864,223

Valuation Inputs	Level 1			Level 2			Level 3		Total
Derivative Financial
Instruments1
Assets:
Equity contracts	$	101,744			—			—	$	101,744
Foreign currency exchange contracts		—		$	41,605			—		41,605
Liabilities:
Equity contracts		(45,134	)		—			—		(45,134	)
Foreign currency exchange contracts		—			(8,236	)		—		(8,236	)
Total	$	56,610		$	33,369			—	$	89,979

¹ Derivative financial instruments are financial futures contracts and foreign currency exchange contracts. Financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 27

Statement of Assets and Liabilities Master International Index Series

December 31, 2011
Assets
Investments at value — unaffiliated (cost — $875,963,977)	$	840,894,972
Investments at value — affiliated (cost — $1,969,251)		1,969,251
Cash pledged as collateral for financial futures contracts		776,000
Investments sold receivable		18,956,284
Foreign currency at value (cost — $8,096,527)		8,095,076
Dividends receivable		4,422,925
Margin variation receivable		95,898
Unrealized appreciation on foreign currency exchange contracts		41,605
Prepaid expenses		16,026
Total assets		875,268,037
Liabilities
Bank overdraft		280,213
Withdrawals payable to investor		18,748,858
Investments purchased payable		211,900
Unrealized depreciation on foreign currency exchange contracts		8,236
Investment advisory fees payable		7,220
Other affiliates payable		2,373
Directors’ fees payable		459
Other accrued expenses payable		227,860
Total liabilities		19,487,119
Net Assets	$	855,780,918
Net Assets Consist of
Investors’ capital	$	890,655,790
Net unrealized appreciation/depreciation		(34,874,872	)
Net Assets	$	855,780,918

See Notes to Financial Statements.

28
BLACKROCK INTERNATIONAL INDEX FUND
DECEMBER 31, 2011

Statement of Operations Master International Index Series

Year Ended December 31, 2011
Investment Income
Dividends — unaffiliated	$	35,991,032
Foreign taxes withheld		(3,619,477	)
Dividends — affiliated		2,226
Total income		32,373,781
Expenses
Investment advisory		93,352
Custodian		263,526
Accounting services		180,326
Professional		104,300
Pricing		88,115
Directors		24,565
Printing		1,998
Miscellaneous		29,815
Total expenses		785,997
Less fees waived by advisor		(4,114	)
Total expenses after fees waived		781,883
Net investment income		31,591,898
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		(25,889,226	)
Financial futures contracts		(587,208	)
Foreign currency transactions		198,904
		(26,277,530	)
Net change in unrealized appreciation/depreciation on:
Investments		(123,595,786	)
Financial futures contracts		51,678
Foreign currency transactions		(178,643	)
		(123,722,751	)
Total realized and unrealized loss		(150,000,281	)
Net Decrease in Net Assets Resulting from Operations	$	(118,408,383	)

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND
DECEMBER 31, 2011
29

Statements of Changes in Net Assets Master International Index Series

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2011			2010
Operations
Net investment income	$	31,591,898		$	21,715,802
Net realized loss		(26,277,530	)		(21,606,488	)
Net change in unrealized appreciation/depreciation		(123,722,751	)		84,313,481
Net increase (decrease) in net assets resulting from operations		(118,408,383	)		84,422,795
Capital Transactions
Proceeds from contributions		277,608,631			325,133,239
Value of withdrawals		(226,119,685	)		(236,135,595	)
Net increase in net assets derived from capital transactions		51,488,946			88,997,644
Net Assets
Total increase (decrease) in net assets		(66,919,437	)		173,420,439
Beginning of year		922,700,355			749,279,916
End of year	$	855,780,918		$	922,700,355

Financial Highlights Master International Index Series

	Year Ended December 31,
	2011			2010			2009			2008			2007
Total Investment Return
Total investment return		(12.34	)%		7.66	%		28.99	%		(41.94	)%		10.80	%
Ratios to Average Net Assets
Total expenses		0.08	%		0.11	%		0.09	%		0.11	%		0.10	%
Total expenses after fees waived and paid indirectly		0.08	%		0.10	%		0.09	%		0.10	%		0.09	%
Net investment income		3.38	%		2.73	%		2.98	%		3.54	%		2.86	%
Supplemental Data
Net assets, end of year (000)	$	855,781		$	922,700		$	749,280		$	706,119		$	1,143,172
Portfolio turnover		6	%		8	%		30	%		30	%		30	%

See Notes to Financial Statements.

30
BLACKROCK INTERNATIONAL INDEX FUND
DECEMBER 31, 2011

Notes to Financial Statements Master International Index Series

1. Organization and Significant Accounting Policies:

Master International index Series (the “Series”), a non-diversified open-end management investment company, is a series of Quantitative Master Series LLC (the “Master LLC”). The Master LLC is registered as an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), and is organized as a Delaware limited liability company. The Master LLC’s Limited Liability Company Agreement permits the Board of Directors of the Master LLC (the “Board”) to issue non-transferable interests in the Master LLC, subject to certain limitations. The Series’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosure in the financial statements. Actual results could differ from those estimates.

The following is a summary of significant accounting policies followed by the Series:

Valuation: US GAAP defines fair value as the price the Series would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Series fair values its financial instruments at market value using independent dealers or pricing services under policies approved by the Board. Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System (“NASDAQ”) are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

Securities and other assets and liabilities denominated in foreign currencies are translated into US dollars using exchange rates determined as of the close of business on the New York Stock Exchange (“NYSE”). Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of business on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or if a price is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that the Series might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of the Series’ net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such instruments, those instruments may be Fair Value Assets and be valued at their fair value, as determined in good faith by the investment advisor using a pricing service and/or policies approved by the Board. Each business day, the Series uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and OTC options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of business on the NYSE, which follows the close of the local markets.

Foreign Currency Transactions: The Series’ books and records are maintained in US dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the US dollar rises in value against a foreign currency, the Series’ investments denominated in that currency will lose value because its currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.

The Series does not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated on the Statement of Operations from the effects of changes in market prices of those investments but are included as a component of net realized and unrealized gain (loss) from investments. The Series reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Series either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts and foreign currency exchange contracts), the Series will, consistent with SEC

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 31

Notes to Financial Statements (continued) Master International Index Series

rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party to such transactions has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Series is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest.

Income Taxes: The Series is classified as a partnership for federal income tax purposes. As such, each investor in the Series is treated as the owner of its proportionate share of net assets, income, expenses and realized and unrealized gains and losses of the Series. Therefore, no federal income tax provision is required. It is intended that the Series’ assets will be managed so an investor in the Series can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

The Series files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Series’ US federal tax returns remains open for each of the four years ended December 31, 2011. The statutes of limitations on the Series’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standard: In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

In December 2011, the FASB issued guidance that will enhance current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting agreements or similar agreements and will require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the Statement of Assets and Liabilities. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

Other: Expenses directly related to the Series are charged to the Series. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Series has an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Series engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Series and to economically hedge, or protect, its exposure to certain risks such as equity risk and foreign currency exchange rate risk. These contracts may be transacted on an exchange or OTC.

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. The Series’ maximum risk of loss from counterparty credit risk on OTC derivatives is generally the aggregate unrealized gain netted against any collateral pledged by/posted to the counterparty. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

The Series may mitigate counterparty risk by procuring collateral and through netting provisions included within an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) implemented between the Series and each of its respective counterpar-ties. An ISDA Master Agreement allows the Series to offset with each separate counterparty certain derivative financial instrument’s payables and/or receivables with collateral held. The amount of collateral moved to/from applicable counterparties is generally based upon minimum transfer amounts of up to $500,000. To the extent amounts due to the Series from its counterparties are not fully collateralized contractually or otherwise, the Series bears the risk of loss from counterparty non-performance. See

32 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Notes to Financial Statements (continued) Master International Index Series

Note 1 “Segregation and Collateralization” for information with respect to collateral practices. In addition, the Series manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor its obligations and by monitoring the financial stability of those counterparties.

Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Series’ net assets decline by a stated percentage or the Series fails to meet the terms of its ISDA Master Agreements, which would cause the Series to accelerate payment of any net liability owed to the counterparty.

Financial Futures Contracts: The Series purchases or sells financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk). Financial futures contracts are agreements between the Series and counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Series agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Series as unrealized appreciation or depreciation. When the contract is closed, the Series records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Foreign Currency Exchange Contracts: The Series enters into foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to foreign currencies (foreign currency exchange rate risk). A foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. Foreign currency exchange contracts, when used by the Series, help to manage the overall exposure to the currencies in which some of the investments held by the Series are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Series as an unrealized gain or loss. When the contract is closed, the Series records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The use of foreign currency exchange contracts involves the risk that the value of a foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies and the risk that a counterparty to the contract does not perform its obligations under the agreement.

Derivative Instruments Categorized by Risk Exposure:

Fair Values of Derivative Instruments as of December 31, 2011
	Asset Derivatives			Liability Derivatives
	Statement of Assets and Liabilities Location		Value	Statement of Assets and Liabilities Location		Value
Equity contracts	Net unrealized appreciation*	$	101,744	Net unrealized depreciation*	$	45,134
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts	$	41,605	Unrealized depreciation on foreign currency exchange contracts	$	8,236
Total		$	143,349		$	53,370

* Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedule of Investments. Only current day’s margin variation is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Financial Instruments in the Statement of Operations Year Ended December 31, 2011
	Net Realized Gain (Loss) From
	Financial Futures Contracts			Foreign Currency Exchange Contracts
Equity contracts	$	(587,208	)		—
Foreign currency exchange contracts		—		$	276,346
	Net Change in Unrealized Appreciation/Depreciation on
	Financial Futures Contracts			Foreign Currency Exchange Contracts
Equity contracts	$	51,678			—
Foreign currency exchange contracts		—		$	33,369

For the year ended December 31, 2011, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average number of contracts purchased		212
Average notional value of contracts purchased	$	13,039,843
Foreign currency exchange contracts:
Average number of contracts — US dollars purchased		4
Average number of contracts — US dollars sold		14
Average US dollar amounts purchased	$	5,806,950
Average US dollar amounts sold	$	4,186,119

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 33

Notes to Financial Statements (continued) Master International Index Series

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but Barclays is not.

The Master LLC, on behalf of the Series, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Master LLC’s investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of the Series’ portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Series. For such services, the Series pays the Manager a monthly fee at an annual rate of 0.01% of the average daily value of the Series’ net assets.

The Manager entered into a contractual arrangement with the Master LLC with respect to the Series under which the Manager will waive and/or reimburse its fees and/or expenses so that the total annual operating expenses incurred by the Series excluding interest expense, dividend expense, acquired fund fees and expenses and certain other Series’ expenses will not exceed 0.12% of the average daily value of the Series’ net assets. The Manager has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to May 1, 2012 unless approved by the Board, including a majority of the Independent Directors. For the year ended December 31, 2011, the Manager waived $2,006, which is included in fees waived by advisor in the Statement of Operations.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Series pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Series’ investment in other affiliated investment companies, if any. For the year ended December 31, 2011, the Manager waived $2,108, which is included in fees waived by advisor in the Statement of Operations.

The Manager entered into a sub-advisory agreement with BlackRock Investment Management LLC (“BIM”), an affiliate of the Manager.The Manager pays BIM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by the Series to the Manager.

For the year ended December 31, 2011, the Series reimbursed the Manager $10,033 for certain accounting services, which is included in accounting services in the Statement of Operations.

Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock or its affiliates.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the year ended December 31, 2011, were $143,935,118 and $59,509,316, respectively.

5. Borrowings:

The Master LLC, on behalf of the Series, along with certain other funds managed by the Manager and its affiliates, is a party to a $500 million credit agreement with a group of lenders, which expired in November 2011. The Series may borrow under the credit agreement to fund shareholder redemptions. Effective November 2010, the credit agreement had the following terms: a commitment fee of 0.08% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2010. Effective November 2011, the credit agreement was renewed until November 2012 with the following terms: a commitment fee of 0.065% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2011. The Series did not borrow under the credit agreement during the year ended December 31, 2011.

6. Concentration, Market and Credit Risk:

In the normal course of business, the Series invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Series may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Series; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Series may be exposed to counterparty credit risk, or the risk that an entity with which the Series has unsettled or open transactions may fail to or be unable to perform on its commitments. The Series manages counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Series to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Series’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Series’ Statement of Assets and Liabilities, less any collateral held by the Series.

34 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Notes to Financial Statements (concluded) Master International Index Series

The Series invests a substantial amount of its assets in issuers located in a single country or a limited number of countries. When the Series concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in those countries may have a significant impact on their investment performance. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the US. Foreign securities markets may also be less liquid, more volatile, and less subject to governmental supervision not typically associated with investing in US securities. Please see the Schedule of Investments for concentrations in specific countries.

As of December 31, 2011, the Series had the following industry classifications:

Industry	Percent of Long-Term Investments
Commercial Banks		11	%
Pharmaceuticals		9	%
Oil & Gas Consumable Fuels		8	%
Metals & Mining		6	%
Other1		66	%

¹ All other industries held were each less than 5% of long-term investments.

7. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Series through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 35

Report of Independent Registered Public Accounting Firm Master International Index Series

To the Investors of Master International Index Series and Board of Directors of Quantitative Master Series LLC:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Master International Index Series, one of the portfolios constituting Quantitative Master Series LLC, (the “Master LLC”) as of December 31, 2011, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Master LLC’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Master LLC is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Master LLC’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2011, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Master International Index Series of Quantitative Master Series LLC as of December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Boston, Massachusetts
February 22, 2012

36 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Officers and Directors

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1
Ronald W. Forbes 55 East 52nd Street New York, NY 10055 1940	Co-Chairman of the Board and Director	Since 2007	Professor Emeritus of Finance, School of Business, State University of New York at Albany since 2000.	33 RICs consisting of 107 Portfolios	None
Rodney D. Johnson 55 East 52nd Street New York, NY 10055 1941	Co-Chairman of the Board and Director	Since 2007	President, Fairmount Capital Advisors, Inc. since 1987; Member of the Archdiocesan Investment Committee of the Archdiocese of Philadelphia since 2004; Director, The Committee of Seventy (civic) since 2006; Director, Fox Chase Cancer Center from 2004 to 2010.	33 RICs consisting of 107 Portfolios	None
David O. Beim 55 East 52nd Street New York, NY 10055 1940	Director	Since 2007	Professor of Professional Practice at the Columbia University Graduate School of Business since 1991; Trustee, Phillips Exeter Academy since 2002; Chairman, Wave Hill, Inc. (public garden and cultural center) from 1990 to 2006.	33 RICs consisting of 107 Portfolios	None
Dr. Matina S. Horner 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Executive Vice President of Teachers Insurance and Annuity Association and College Retirement Equities Fund from 1989 to 2003.	33 RICs consisting of 107 Portfolios	NSTAR (electric and gas utility)
Herbert I. London 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Professor Emeritus, New York University since 2005; John M. Olin Professor of Humanities, New York University from 1993 to 2005 and Professor thereof from 1980 to 2005; President, Hudson Institute (policy research organization) since 1997 and Trustee thereof since 1980; Chairman of the Board of Trustees for Grantham University since 2006; Director, InnoCentive, Inc. (strategic solutions company) since 2005; Director, Cerego, LLC (software development and design) since 2005; Director, Cybersettle (dispute resolution technology) since 2009.	33 RICs consisting of 107 Portfolios	AIMS Worldwide, Inc. (marketing)
Cynthia A. Montgomery 55 East 52nd Street New York, NY 10055 1952	Director	Since 2007	Professor, Harvard Business School since 1989; Director, McLean Hospital since 2005; Director, Harvard Business School Publishing from 2005 to 2010.	33 RICs consisting of 107 Portfolios	Newell Rubbermaid, Inc. (manufacturing)
Joseph P. Platt 55 East 52nd Street New York, NY 10055 1947	Director	Since 2007	Director, The West Penn Allegheny Health System (a not-for-profit health system) since 2008; Director, Jones and Brown (Canadian insurance broker) since 1998; General Partner, Thorn Partners, LP (private investment) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Partner, Amarna Corporation, LLC (private investment company) from 2002 to 2008.	33 RICs consisting of 107 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company)
Robert C. Robb, Jr. 55 East 52nd Street New York, NY 10055 1945	Director	Since 2007	Partner, Lewis, Eckert, Robb and Company (management and financial consulting firm) since 1981.	33 RICs consisting of 107 Portfolios	None
Toby Rosenblatt 55 East 52nd Street New York, NY 10055 1938	Director	Since 2007	President, Founders Investments Ltd. (private investments) since 1999; Director, College Access Foundation of California (philanthropic foundation) since 2009; Director, Forward Management, LLC since 2007; Director, A.P. Pharma, Inc. (specialty pharmaceuticals) from 1983 to 2011; Director, The James Irvine Foundation (philanthropic foundation) from 1998 to 2008.	33 RICs consisting of 107 Portfolios	None

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 37

Officers and Directors (continued)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC		Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1 (concluded)
Kenneth L. Urish 55 East 52nd Street New York, NY 10055 1951	Director		Since 2007	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Chairman Elect of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001; Trustee, The Holy Family Foundation from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.	33 RICs consisting of 107 Portfolios	None
Frederick W. Winter 55 East 52nd Street New York, NY 10055 1945	Director		Since 2007	Professor and Dean Emeritus of the Joseph M. Katz School of Business, University of Pittsburgh since 2005 and Dean thereof from 1997 to 2005; Director, Alkon Corporation (pneumatics) since 1992; Director, Tippman Sports (recreation) since 2005; Director, Indotronix International (IT services) from 2004 to 2008.	33 RICs consisting of 107 Portfolios	None
	1	Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The Board has approved extensions in terms of Directors who turn 72 prior to December 31, 2013.
	2	Date shown is the earliest date a person has for the Corporation/Master LLC covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows Directors as joining the Corporation’s/Master LLC’s board in 2007, each Director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: David O. Beim, 1998; Ronald W. Forbes, 1977; Dr. Matina S. Horner, 2004; Rodney D. Johnson, 1995; Herbert I. London, 1987; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Robert C. Robb, Jr., 1998; Toby Rosenblatt, 2005; Kenneth L. Urish, 1999; and Frederick W. Winter, 1999.
Interested Directors3
Paul L. Audet 55 East 52nd Street New York, NY 10055 1953	Director		Since 2011	Senior Managing Director, BlackRock and Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005.	159 RICs consisting of 286 Portfolios	None
Henry Gabbay 55 East 52nd Street New York, NY 10055 1947	Director		Since 2007	Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	159 RICs consisting of 286 Portfolios	None
	3	Mr. Audet is an “interested person,” as defined in the 1940 Act, of the Corporation/Master LLC based on his position with BlackRock and its affiliates. Mr. Gabbay is an “interested person” of the Corporation/Master LLC based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of the BlackRock registered closed-end funds and Directors of other BlackRock registered open-end funds. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

38 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Officers and Directors (concluded)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC		Length of Time Served	Principal Occupation(s) During Past Five Years
Officers1
John M. Perlowski 55 East 52nd Street New York, NY 10055 1964	President and Chief Executive Officer		Since 2010	Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Administration since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.
Brendan Kyne 55 East 52nd Street New York, NY 10055 1977	Vice President		Since 2009	Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009; Vice President of BlackRock from 2005 to 2008.
Neal Andrews 55 East 52nd Street New York, NY 10055 1966	Chief Financial Officer		Since 2007	Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
Jay Fife 55 East 52nd Street New York, NY 10055 1970	Treasurer		Since 2007	Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
Brian Kindelan 55 East 52nd Street New York, NY 10055 1959	Chief Compliance Officer and Anti-Money Laundering Officer		Since 2007	Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005.
Ira P. Shapiro 55 East 52nd Street New York, NY 10055 1963	Secretary		Since 2010	Managing Director of BlackRock since 2009; Managing Director and Associate General Counsel of Barclays Global Investors from 2008 to 2009 and Principal thereof from 2004 to 2008.
	1	Officers of the Corporation/Master LLC serve at the pleasure of the Board.
	Further information about the Officers and Directors is available in the Corporation’s/Master LLC’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisor

BlackRock Investment Management, LLC

Princeton, NJ 08540

Custodian

JPMorgan Chase Bank, N.A.

Brooklyn, NY 11245

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Accounting Agent

State Street Bank and Trust Company

Boston, MA 02110

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Address of the Fund

100 Bellevue Parkway

Wilmington, DE 19809

Effective September 22, 2011, Richard S. Davis resigned as Director of the Corporation and the
Master LLC, and Paul L. Audet became Director of the Corporation and the Master LLC.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 39

Additional Information

General Information

Electronic Delivery

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1)	Access the BlackRock website at http://www.blackrock.com/edelivery
2)	Select “eDelivery” under the “More Information” section
3)	Log into your account

Householding

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. 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 call the Fund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Fund/Series file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s/Series’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330.The Fund’s/Series’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund/Series use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Fund/Series voted proxies relating to securities held in the Fund’s/Series’ portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

40 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

Additional Information (continued)

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 41

Additional Information (concluded)

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 non-public 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 non-public 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 websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public 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 non-affiliated 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 non-public 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 non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

42 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds

BlackRock ACWI ex-US Index Fund

BlackRock All-Cap Energy & Resources Portfolio

BlackRock Asset Allocation Portfolio†

BlackRock Balanced Capital Fund†

BlackRock Basic Value Fund

BlackRock Capital Appreciation Fund

BlackRock China Fund

BlackRock Commodity Strategies Fund

BlackRock Emerging Markets Long/Short Equity Fund

BlackRock Energy & Resources Portfolio

BlackRock Equity Dividend Fund

BlackRock EuroFund

BlackRock Focus Growth Fund

BlackRock Global Allocation Fund†

BlackRock Global Dividend Income Portfolio

BlackRock Global Dynamic Equity Fund

BlackRock Global Emerging Markets Fund

BlackRock Global Opportunities Portfolio

BlackRock Global SmallCap Fund

BlackRock Health Sciences Opportunities Portfolio

BlackRock Index Equity Portfolio

BlackRock India Fund

BlackRock International Fund

BlackRock International Index Fund

BlackRock International Opportunities Portfolio

BlackRock Large Cap Core Fund

BlackRock Large Cap Core Plus Fund

BlackRock Large Cap Growth Fund

BlackRock Large Cap Value Fund

BlackRock Latin America Fund

BlackRock Mid-Cap Growth Equity Portfolio

BlackRock Mid-Cap Value Equity Portfolio

BlackRock Mid Cap Value Opportunities Fund

BlackRock Natural Resources Trust

BlackRock Pacific Fund

BlackRock Russell 1000 Index Fund

BlackRock Science & Technology Opportunities Portfolio

BlackRock Small Cap Growth Equity Portfolio

BlackRock Small Cap Growth Fund II

BlackRock Small Cap Index Fund

BlackRock S&P 500 Index Fund

BlackRock S&P 500 Stock Fund

BlackRock U.S. Opportunities Portfolio

BlackRock Value Opportunities Fund

BlackRock World Gold Fund

Fixed Income Funds

BlackRock Bond Index Fund

BlackRock Core Bond Portfolio

BlackRock Emerging Market Debt Portfolio

BlackRock Floating Rate Income Portfolio

BlackRock Global Long/Short Credit Fund

BlackRock GNMA Portfolio

BlackRock High Yield Bond Portfolio

BlackRock Inflation Protected Bond Portfolio

BlackRock International Bond Portfolio

BlackRock Long Duration Bond Portfolio

BlackRock Low Duration Bond Portfolio

BlackRock Multi-Asset Income Portfolio†

BlackRock Multi-Sector Bond Portfolio

BlackRock Strategic Income Opportunities Portfolio

BlackRock Total Return Fund

BlackRock US Government Bond Portfolio

BlackRock World Income Fund

US Mortgage Portfolio

Municipal Bond Funds

BlackRock California Municipal Bond Fund

BlackRock High Yield Municipal Fund

BlackRock Intermediate Municipal Fund

BlackRock National Municipal Fund

BlackRock New Jersey Municipal Bond Fund

BlackRock New York Municipal Bond Fund

BlackRock Pennsylvania Municipal Bond Fund

BlackRock Short-Term Municipal Fund

Target Risk & Target Date Funds†

BlackRock Prepared Portfolios

Conservative Prepared Portfolio

Moderate Prepared Portfolio

Growth Prepared Portfolio

Aggressive Growth Prepared Portfolio

BlackRock Lifecycle Prepared Portfolios

2015

2020

2025

2030

2035

2040

2045

2050

LifePath Portfolios

Retirement

2020

2025

2030

2035

2040

2045

2050

2055

LifePath Index Portfolios

Retirement

2020

2025

2030

2035

2040

2045

2050

2055

† Mixed asset fund.

BlackRock mutual funds are currently distributed by BlackRock Investments, LLC. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2011 43

This report is transmitted to shareholders only. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change. Please see the Fund’s prospectus for a description of risks associated with global investments.

#Index 2-12/11-AR

December 31, 2011

Annual Report

BlackRock S&P 500 Index Fund | of BlackRock Index Funds, Inc.

Not FDIC Insured § No Bank Guarantee § May Lose Value

Table of Contents
	Page
Dear Shareholder	3
Annual Report:
Fund Summary	4
About Fund Performance	6
Disclosure of Expenses	6
Fund Financial Statements:
Statement of Assets and Liabilities	7
Statement of Operations	8
Statements of Changes in Net Assets	9
Fund Financial Highlights	10
Fund Notes to Financial Statements	11
Fund Report of Independent Registered Public Accounting Firm	14
Important Tax Information	14
Series Portfolio Information	15
Series Financial Statements:
Schedule of Investments	16
Statement of Assets and Liabilities	23
Statement of Operations	24
Statements of Changes in Net Assets	25
Series Financial Highlights	26
Series Notes to Financial Statements	27
Series Report of Independent Registered Public Accounting Firm	31
Officers and Directors	32
Additional Information	35
A World-Class Mutual Fund Family	38

2 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Dear Shareholder

Investors endured a very difficult environment in 2011. Financial markets were extremely volatile as a number of high-profile global events drove frequent about-face changes in investor sentiment. As the year progressed, news flow increasingly influenced trading decisions, to the point where company fundamentals were largely ignored. In the end, lower-risk assets won the “risk on — risk off” trading tug-of-war that characterized 2011’s market activity.

Early in the year, political turmoil swept across the Middle East/North Africa region and prices of oil and other commodities soared. Natural disasters in Japan disrupted global supply chains and concerns mounted regarding US debt and deficit issues. Nevertheless, equities, commodities and high yield bonds outpaced the less risky asset classes as investors chose to focus on the continuing stream of strong corporate earnings and positive economic data.

Markets reversed sharply in May, however, when the heightened possibility of Greece defaulting on its debt rekindled fears about sovereign debt problems spreading across Europe. Concurrently, economic indicators signaled that the recovery had slowed in the United States and other developed nations. Confidence was further shaken by the prolonged debt ceiling debate in Washington, DC. On August 5th, Standard & Poor’s downgraded the US government’s credit rating and turmoil erupted in financial markets around the world. Extraordinary levels of volatility persisted in the months that followed as Greece teetered on the brink of default, debt problems escalated in Italy and Spain, and exposure to European sovereign bonds stressed banks globally. Late in the summer, economic data out of the United States and Europe grew increasingly bleak while China and other emerging economies began to show signs of slowing growth. By the end of the third quarter, equity markets had fallen nearly 20% from their April peak while safe-haven assets such as US Treasuries and gold had rallied to historical highs.

October brought enough positive economic data to assuage fears of a global double-dip recession. Additionally, after months of deliberation, European leaders began to show signs of progress toward stemming the region’s debt crisis. These encouraging developments brought investors back from the sidelines and risk assets rallied through the month. However, a lack of definitive details about Europe’s rescue plan soon raised doubts among investors and thwarted the rally at the end of October. The last two months of the year saw political instability in Greece, unsustainable yields on Italian bonds, and US policymakers bickering over budget issues. Global central bank actions and improving economic data energized investors, but confidence was easily tempered by sobering news flow that resurrected uncertainty about the ability of Europe’s leaders to ultimately contain the debt crisis.

Most equity markets failed to fully recover their late-summer losses, although US large cap stocks managed to finish the year with a marginal gain given their perceived safety and stronger US economic data. Conditions were worse overseas, and international markets experienced some significant downturns. Dividend-paying stocks performed relatively well as investors sought yield in the low interest rate environment. Fixed income securities benefited from declining yields and delivered positive returns for the year. US Treasury bonds outperformed other fixed income classes despite their quality rating downgrade, while municipal bonds also delivered superior results. Continued low short-term interest rates kept yields on money market securities near their all-time lows.

Many of the themes that caused uncertainty in 2011 are likely to persist well into 2012. While the investment landscape appears treacherous, BlackRock is working for you. We have a roadmap to show you the way.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC

“While the investment landscape appears treacherous, BlackRock is working for you. We have a roadmap to show you the way.”

Rob Kapito
President, BlackRock Advisors, LLC

Total Returns as of December 31, 2011
	6-month			12-month
US large cap equities		(3.69	)%		2.11	%
(S&P 500® Index)
US small cap equities		(9.77	)		(4.18	)
(Russell 2000® Index)
International equities		(16.31	)		(12.14	)
(MSCI Europe, Australasia,
Far East Index)
Emerging market		(19.13	)		(18.42	)
equities (MSCI Emerging
Markets Index)
3-month Treasury		0.02			0.10
bill (BofA Merrill Lynch
3-Month Treasury
Bill Index)
US Treasury securities		13.46			17.15
(BofA Merrill Lynch 10-
Year US Treasury Index)
US investment grade		4.98			7.84
bonds (Barclays
Capital US Aggregate
Bond Index)
Tax-exempt municipal		5.78			10.62
bonds (S&P Municipal
Bond Index)
US high yield bonds		(0.02	)		4.96
(Barclays Capital US
Corporate High Yield 2%
Issuer Capped Index)

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of December 31, 2011 BlackRock S&P 500 Index Fund

Investment Objective
BlackRock S&P 500 Index Fund’s (the “Fund”), a series of BlackRock Index Funds, Inc. (the “Corporation”), investment objective is to match the performance of the Standard & Poor’s (“S&P”) 500® Index as closely as possible before the deduction of Fund expenses.
Portfolio Management Commentary
	How did the Fund perform?
•	For the 12 months ended December 31,2011,Institutional and Investor A Shares of the Fund returned 1.80% and 1.58%, respectively, while the benchmark S&P 500® Index returned 2.11% for the same period. The S&P 500® Index is an unmanaged index that covers 500 industrial, utility, transportation and financial companies of the US markets (mostly New York Stock Exchange (“NYSE”) issues), representing 75% of NYSE market capitalization and 30% of NYSE issues.
•	Returns for the Fund’s respective share classes differ from the benchmark index based on individual share-class expenses. The Fund invests all of its assets in Master S&P 500 Index Series (the “Series”), a series of Quantitative Master Series LLC.
	Describe the market environment.
•	Early in the year, stocks moved unevenly higher despite political upheaval spreading across the Middle East/North Africa region and a sharp rise in oil and other commodity prices. March brought devastating natural disasters in Japan, resulting in global supply chain disruptions. But equity markets were remarkably resilient as the global economic recovery appeared to be on track and investors were gradually increasing their appetite for risk. After peaking in late April, equities were met with a sharp reversal when the heightened possibility of Greece defaulting on its debt rekindled fears about the potential impact of the sovereign debt crisis spreading in Europe. In the United States, a prolonged debt ceiling debate ultimately led to Standard & Poor’s decision to downgrade the US government’s credit rating in early August. This announcement spurred one of the most volatile periods in trading history. Stock markets across the world whip-sawed on hopes and fears driven by news flow. Equities swooned as debt problems in Europe spread to Italy and Spain, and global economic indicators grew increasingly bleak.
•	US stocks staged a strong rebound in October as the domestic labor market improved and corporate profits continued to beat analysts’ expectations. Encouraging news from Europe also contributed to the rally. After months of deliberation, European leaders agreed upon a new plan to reduce Greece’s debt burden, recapitalize the region’s banks and increase the size of the euro-zone bailout fund. However, a lack of definitive details about the rescue plan soon raised doubts among investors and thwarted the rally at the end of October. In November, political instability in Greece and Italy fueled uncertainty as to whether Europe’s leaders would be able to contain the crisis. In the United States, bickering lawmakers failed to reach an agreement on reducing the US budget deficit, further undermining investors’ confidence in policymakers on both sides of the Atlantic. Market volatility softened in December with the support of global central bank actions and continued improvement in economic data.
•	For the year, US stocks outperformed most international markets given their relative safety during a time of heightened uncertainty overseas. Dividend-paying stocks performed particularly well as investors sought yield in a low interest rate environment. From a sector perspective, utilities (+19.91%) led the index for 2011. The defensive consumer staples sector (+13.99%) performed well amid high volatility, as did health care stocks (+12.73%), which benefited from increased merger and acquisition activity during the year. Battered by the world’s debt problems, financials (–17.06%) saw the largest losses. The more cyclical materials (–9.75%) and industrials (–0.59%) sectors also declined amid heightened uncertainty about the global economy.
	Describe recent portfolio activity.
•	During the 12-month period, as changes were made to the composition of the S&P 500® Index, the Series purchased and sold securities to maintain its objective of replicating the risks and return of the benchmark index.
	Describe portfolio positioning at period end.
•	The Series remains positioned to match the risk characteristics of its benchmark index, irrespective of the market’s future direction.
		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.
Derivative Financial Instruments
The Series may invest in various derivative financial instruments, including financial futures contracts as specified in Note 2 of the Series’ Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or equity risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset or illiquidity of the derivative financial instrument. The Series’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require the Series to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation the Series can realize on an investment or may cause the Series to hold an investment that it might otherwise sell. The Series’ investments in these instruments are discussed in detail in the Series’ Notes to Financial Statements.

4 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Total Return Based on a $10,000 Investment

	1	Assuming transaction costs and other operating expenses, including investment advisory fees and administration fees, if any.
	2	The Fund invests all of its assets in the Series. The Series’ investments are allocated among common stocks in approximately the same weightings as the S&P 500® Index.
	3	This unmanaged index covers 500 industrial, utility, transportation and financial companies of the US markets (mostly NYSE), representing about 75% of NYSE market capitalization and 30% of NYSE issues.
Performance Summary for the Period Ended December 31, 2011

			Average Annual Total Returns4
	6-Month Total Returns		1 Year		5 Years		10 Years
Institutional	(3.83	)%	1.80	%	(0.52	)%	2.61	%
Investor A	(3.98	)	1.58		(0.77	)	2.36
S&P 500® Index	(3.69	)	2.11		(0.25	)	2.92

⁴ Average annual total returns reflect reductions for service fees. See “About Fund Performance” on page 6 for a detailed description of share classes, including any related fees. Past performance is not indicative of future results.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 5

About Fund Performance
•	Institutional Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to eligible investors.
•	Investor A Shares are not subject to any sales charge and bear no ongoing distribution fee. These shares are subject to an ongoing service fee of 0.25% per year.

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/funds 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 table on the previous page assume reinvestment of all dividends and capital gain 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. Dividends paid to each class of shares will vary because of the different levels of service and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Fund’s administrator waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) expenses related to transactions, including exchange fees; and (b) operating expenses, including administration fees, service fees, including 12b-1 fees, and other Fund expenses. The expense example shown below (which is based on a hypothetical investment of $1,000 invested on July 1, 2011 and held through December 31, 2011) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The table provides 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 share class under the heading entitled “Expenses Paid During the Period.”

The table also provides information about hypothetical account values and hypothetical expenses based on the 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 this Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the table are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as sales charges or exchange fees, if any. Therefore, the hypothetical example is 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.

Expense Example

	Actual			Hypothetical2
	Beginning Account Value July 1, 2011	Ending Account Value December 31, 2011	Expenses Paid During the Period1	Beginning Account Value July 1, 2011	Ending Account Value December 31, 2011	Expenses Paid During the Period1	Annualized Expense Ratio
Institutional	$1,000.00	$961.70	$1.53	$1,000.00	$1,023.64	$1.58	0.31%
Investor A	$1,000.00	$960.20	$2.82	$1,000.00	$1,022.33	$2.91	0.57%

1	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 184/365 (to reflect the one-half year period shown). Because the Fund is a feeder fund, the expense table example reflects the expenses of both the Fund and the Series in which it invests. Expenses are net of waiver.
2	Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.

6 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Statement of Assets and Liabilities BlackRock S&P 500 Index Fund

December 31, 2011

Assets
Investments at value — Series (cost — $1,404,199,070)	$	1,773,233,951
Withdrawals receivable from the Series		9,297,113
Capital shares sold receivable		4,845,455
Prepaid expenses		2,227
Total assets		1,787,378,746
Liabilities
Capital shares redeemed payable		14,142,568
Administration fees payable		292,319
Service fees payable		146,701
Officer’s fees payable		243
Other accrued expenses payable		292,936
Total liabilities		14,874,767
Net Assets	$	1,772,503,979
Net Assets Consist of
Paid-in capital	$	1,579,515,138
Undistributed net investment income		463,110
Accumulated net realized loss allocated from the Series		(176,509,150	)
Net unrealized appreciation/depreciation allocated from the Series		369,034,881
Net Assets	$	1,772,503,979
Net Asset Value
Institutional — Based on net assets of $1,059,688,755 and 68,992,482 shares outstanding, 250 million shares authorized, $0.0001 par value	$	15.36
Investor A — Based on net assets of $712,815,224 and 46,481,722 shares outstanding, 250 million shares authorized, $0.0001 par value	$	15.34

See Notes to Financial Statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 7

Statement of Operations BlackRock S&P 500 Index Fund

Year Ended December 31, 2011

Investment Income
Net investment income allocated from the Series:
Dividends — unaffiliated	$	37,466,295
Dividends — affiliated		208,957
Securities lending — affiliated		233,300
Foreign taxes withheld		(33,345	)
Expenses		(735,084	)
Fees waived		99,579
Total income		37,239,702
Expenses
Administration		3,520,480
Service — Investor A		1,847,320
Transfer agent — Institutional		620,681
Transfer agent — Investor A		487,024
Printing		108,925
Licensing		74,416
Registration		71,397
Professional		29,780
Officer		984
Miscellaneous		16,340
Total expenses		6,777,347
Less fees waived by administrator — class specific		(808	)
Total expenses after fees waived		6,776,539
Net investment income		30,463,163
Realized and Unrealized Gain (Loss) Allocated from the Series
Net realized gain from investments and financial futures contracts		10,124,645
Net change in unrealized appreciation/depreciation on investments and financial futures contracts		(7,501,223	)
Total realized and unrealized gain		2,623,422
Net Increase in Net Assets Resulting from Operations	$	33,086,585

See Notes to Financial Statements.

8 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Statements of Changes in Net Assets BlackRock S&P 500 Index Fund

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2011			2010
Operations
Net investment income	$	30,463,163		$	27,377,084
Net realized gain		10,124,645			14,775,569
Net change in unrealized appreciation/depreciation		(7,501,223	)		187,677,017
Net increase in net assets resulting from operations		33,086,585			229,829,670
Dividends to Shareholders From
Net investment income:
Institutional		(19,464,643	)		(17,049,427	)
Investor A		(11,312,293	)		(10,565,502	)
Decrease in net assets resulting from dividends to shareholders		(30,776,936	)		(27,614,929	)
Capital Share Transactions
Net increase (decrease) in net assets derived from capital share transactions		9,550,070			(98,558,385	)
Net Assets
Total increase in net assets		11,859,719			103,656,356
Beginning of year		1,760,644,260			1,656,987,904
End of year	$	1,772,503,979		$	1,760,644,260
Undistributed net investment income	$	463,110		$	776,883

See Notes to Financial Statements.
	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2011	9

Financial Highlights BlackRock S&P 500 Index Fund

	Institutional															Investor A
	Year Ended December 31,															Year Ended December 31,
	2011			2010			2009			2008			2007			2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of year	$	15.38		$	13.63		$	11.00		$	18.01		$	17.40		$	15.35		$	13.61		$	10.98		$	17.96		$	17.36
Net investment income1		0.28			0.24			0.23			0.31			0.30			0.24			0.21			0.20			0.27			0.25
Net realized and unrealized gain (loss)		(0.01	)		1.77			2.64			(7.01	)		0.62			(0.01	)		1.75			2.64			(6.98	)		0.61
Net increase (decrease) from investment operations		0.27			2.01			2.87			(6.70	)		0.92			0.23			1.96			2.84			(6.71	)		0.86
Dividends from net investment income		(0.29	)		(0.26	)		(0.24	)		(0.31	)		(0.31	)		(0.24	)		(0.22	)		(0.21	)		(0.27	)		(0.26	)
Net asset value, end of year	$	15.36		$	15.38		$	13.63		$	11.00		$	18.01		$	15.34		$	15.35		$	13.61		$	10.98		$	17.96
Total Investment Return2
Based on net asset value		1.80	%		14.75	%		26.15	%		(37.20	)%		5.29	%		1.58	%		14.42	%		25.92	%		(37.36	)%		4.97	%
Ratios to Average Net Assets3
Total expenses		0.30	%4		0.33	%		0.35	%		0.35	%		0.34	%		0.56	%4		0.58	%		0.61	%		0.60	%		0.60	%
Net investment income		1.80	%4		1.74	%		2.02	%		2.00	%		1.64	%		1.53	%4		1.49	%		1.76	%		1.75	%		1.38	%
Supplemental Data
Net assets, end of year (000)	$	1,059,689		$	1,018,080		$	951,380		$	813,527		$	1,779,030		$	712,815		$	742,564		$	705,608		$	579,920		$	930,377
Portfolio turnover of the Series		6	%		5	%		7	%		8	%		4	%		6	%		5	%		7	%		8	%		4	%

1	Based on average shares outstanding.
2	Where applicable, total investment returns include the reinvestment of dividends and distributions.
3	Includes the Fund’s share of the Series’ allocated expenses and/or net investment income.
4	Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

See Notes to Financial Statements.
10	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2011

Notes to Financial Statements BlackRock S&P 500 Index Fund

1. Organization and Significant Accounting Policies:

BlackRock S&P 500 Index Fund (the “Fund”), a series of BlackRock Index Funds, Inc. (the “Corporation”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Corporation is organized as a Maryland corporation. The Fund seeks to achieve its investment objective by investing all of its assets in Master S&P 500 Index Series (the “Series”), a series of Quantitative Master Series LLC, which has the same investment objective and strategies as the Fund. The value of the Fund’s investment in the Series reflects the Fund’s proportionate interest in the net assets of the Series. The percentage of the Series owned by the Fund at December 31, 2011 was 77.7%. The performance of the Fund is directly affected by the performance of the Series. The financial statements of the Series, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements. The Fund’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Fund offers two classes of shares. Institutional Shares are sold without a sales charge and only to certain eligible investors. Investor A Shares are sold without a front-end sales charge. Both classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Investor A Shares bear certain expenses related to the shareholder servicing of such shares and have exclusive voting rights with respect to matters relating to its shareholder servicing expenditures.

The following is a summary of significant accounting policies followed by the Fund:

Valuation: US GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund’s policy is to fair value its financial instruments at market value. The Fund records its investment in the Series at fair value based on the Fund’s proportionate interest in the net assets of the Series. Valuation of securities held by the Series is discussed in Note 1 of the Series’ Notes to Financial Statements, which are included elsewhere in this report.

Investment Transactions and Investment Income: For financial reporting purposes, contributions to and withdrawals from the Series are accounted on a trade date basis. The Fund records daily its proportionate share of the Series’ income, expenses and realized and unrealized gains and losses. Realized and unrealized gains and losses are adjusted for utilizing partnership tax allocation rules. In addition, the Fund accrues its own expenses. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Dividends and Distributions: Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP.

Income Taxes: It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

The Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s US federal tax returns remains open for each of the four years ended December 31, 2011. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standard: In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

In December 2011, the FASB issued guidance that will enhance current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting agreements or similar agreements and will require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the Statement of Assets and Liabilities. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or class. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. Other expenses of the Fund are allocated daily to each class based on its relative net assets.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 11

Notes to Financial Statements (continued) BlackRock S&P 500 Index Fund

2. Administration Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but Barclays is not.

The Corporation, on behalf of the Fund, entered into an Administration Agreement with BlackRock Advisors, LLC (the “Administrator”), an indirect, wholly owned subsidiary of BlackRock, to provide administrative services (other than investment advice and related portfolio activities). For such services, the Fund pays the Administrator a monthly fee at an annual rate of 0.195% of the Fund’s average daily net assets. The Fund does not pay an investment advisory fee or investment management fee.

The Administrator voluntarily agreed to waive and/or reimburse fees or expenses, excluding interest expense, dividend expense, acquired fund fees and expenses and certain other Fund expenses, in order to limit expenses. The expense limitation as a percentage of average daily net assets is 0.40% for Institutional Shares and 0.65% for Investor A Shares. The Administrator may reduce or discontinue this waiver and/or reimbursement at any time without notice.

The Corporation, on behalf of the Fund, entered into a Distribution Agreement and Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of BlackRock. Pursuant to the Distribution Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service fees with respect to its Investor A Shares. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets of Investor A Shares. Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to Investor A shareholders.

The Administrator maintains a call center, which is responsible for providing certain shareholder services to the Fund, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the year ended December 31, 2011, the Fund reimbursed the Administrator the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:

Institutional	$	3,892
Investor A	$	8,705

Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended December 31, 2011, the Fund paid the following to affiliates in return for these services, which is included in transfer agent - class specific in the Statement of Operations:

Institutional	$	2,929
Investor A	$	3,207

Certain officers and/or directors of the Corporation are officers and/or directors of BlackRock or its affiliates. The Fund reimburses the Administrator for compensation paid to the Corporation’s Chief Compliance Officer.

3. Income Tax Information:

The tax character of distributions paid during the fiscal years ended December 31, 2011 and December 31, 2010 was as follows:

		12/31/11		12/31/10
Ordinary income	$	30,776,936	$	27,614,929

As of December 31, 2011, the tax components of accumulated net earnings were as follows:

Undistributed ordinary income	$	463,110
Capital loss carryforwards		(83,065,196	)
Net unrealized gains1		275,686,016
Qualified late-year losses2		(95,089	)
Total	$	192,988,841

1	The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the timing and recognition of partnership income.
2	The Fund has elected to defer certain qualified late-year losses and recognize such losses in the year ending December 31, 2012.

As of December 31, 2011, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires December 31,
2012	$	12,985,387
2013		28,402,088
2014		26,517,609
2017		14,948,603
No expiration date3		211,509
Total	$	83,065,196

³ Must be utilized prior to losses subject to expiration.

12 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Notes to Financial Statements (concluded) BlackRock S&P 500 Index Fund

4. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Year Ended December 31, 2011						Year Ended December 31, 2010
		Shares			Amount			Shares			Amount
Institutional
Shares sold		32,311,858		$	503,490,398			29,561,942		$	415,514,624
Shares issued to shareholders in reinvestment of dividends		1,252,755			18,576,495			1,076,994			16,287,469
Shares redeemed		(30,773,695	)		(480,523,283	)		(34,242,137	)		(481,214,108	)
Net increase (decrease)		2,790,918		$	41,543,610			(3,603,201	)	$	(49,412,015	)
Investor A
Shares sold		11,381,733		$	176,069,705			9,986,596		$	139,337,943
Shares issued to shareholders in reinvestment of dividends		706,429			10,464,979			646,756			9,759,878
Shares redeemed		(13,975,275	)		(218,528,224	)		(14,119,788	)		(198,244,191	)
Net decrease		(1,887,113	)	$	(31,993,540	)		(3,486,436	)	$	(49,146,370	)

Prior to April 1, 2011, there was a 2% redemption fee on shares redeemed or exchanged that have been held 30 days or less. The redemption fees were collected and retained by the Fund for the benefit of the remaining shareholders. The redemption fees were recorded as a credit to paid-in capital. Effective April 1, 2011, the redemption fee was terminated and is no longer charged by the Fund.

5. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 13

Report of Independent Registered Public Accounting Firm BlackRock S&P 500 Index Fund

To the Shareholders of BlackRock S&P 500 Index Fund and Board of Directors of BlackRock Index Funds, Inc.:

We have audited the accompanying statement of assets and liabilities of BlackRock S&P 500 Index Fund, one of the series constituting BlackRock Index Funds, Inc. (the “Fund”), as of December 31, 2011, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock S&P 500 Index Fund of BlackRock Index Funds, Inc. as of December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Boston, Massachusetts
February 27, 2012

Important Tax Information (Unaudited)

All of the ordinary income distributions paid by BlackRock S&P 500 Index Fund of BlackRock Index Funds, Inc. during the fiscal year ended December 31, 2011 qualify for the dividends received deduction for corporations and consist entirely of qualified dividend income for individuals.

14 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Portfolio Information Master S&P 500 Index Series

As of December 31, 2011

Ten Largest Holdings	Percent of Long-Term Investments
Exxon Mobil Corp.		4	%
Apple, Inc.		3
International Business Machines Corp.		2
Chevron Corp.		2
Microsoft Corp.		2
General Electric Co.		2
The Procter & Gamble Co.		2
AT&T, Inc.		2
Johnson & Johnson		2
Pfizer, Inc.		1
Sector Allocations	Percent of Long-Term Investments
Information Technology		19	%
Financials		13
Energy		12
Health Care		12
Consumer Staples		12
Consumer Discretionary		11
Industrials		11
Utilities		4
Materials		3
Telecommunication Services		3

For Series compliance purposes, the Series’ sector classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Series management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 15

Schedule of Investments December 31, 2011	Master S&P 500 Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Aerospace & Defense — 2.6%
Boeing Co.		147,728	$	10,835,849
General Dynamics Corp.		70,808		4,702,359
Goodrich Corp.		24,931		3,083,965
Honeywell International, Inc.		153,780		8,357,943
L-3 Communications Holdings, Inc.		19,889		1,326,199
Lockheed Martin Corp.		52,760		4,268,284
Northrop Grumman Corp.		52,132		3,048,679
Precision Castparts Corp.		28,714		4,731,780
Raytheon Co.		68,834		3,330,189
Rockwell Collins, Inc.		30,087		1,665,917
Textron, Inc.		54,961		1,016,229
United Technologies Corp.		180,088		13,162,632
				59,530,025
Air Freight & Logistics — 1.0%
C.H. Robinson Worldwide, Inc.		32,676		2,280,131
Expeditors International of Washington, Inc.		42,025		1,721,344
FedEx Corp.		63,177		5,275,911
United Parcel Service, Inc., Class B		191,792		14,037,257
				23,314,643
Airlines — 0.1%
Southwest Airlines Co.		152,530		1,305,657
Auto Components — 0.3%
BorgWarner, Inc. (a)		21,794		1,389,150
The Goodyear Tire & Rubber Co. (a)		48,676		689,739
Johnson Controls, Inc.		135,470		4,234,792
				6,313,681
Automobiles — 0.4%
Ford Motor Co. (a)		755,228		8,126,254
Harley-Davidson, Inc.		46,252		1,797,815
				9,924,069
Beverages — 2.7%
Beam, Inc.		31,012		1,588,745
Brown-Forman Corp., Class B		19,987		1,609,153
The Coca-Cola Co.		451,354		31,581,239
Coca-Cola Enterprises, Inc.		62,117		1,601,376
Constellation Brands, Inc., Class A (a)		34,507		713,260
Dr. Pepper Snapple Group, Inc.		42,788		1,689,270
Molson Coors Brewing Co., Class B		30,869		1,344,036
PepsiCo, Inc.		310,707		20,615,410
				60,742,489
Biotechnology — 1.2%
Amgen, Inc.		157,670		10,123,991
Biogen Idec, Inc. (a)		48,383		5,324,549
Celgene Corp. (a)(b)		88,257		5,966,173
Gilead Sciences, Inc. (a)		149,332		6,112,159
				27,526,872
Building Products — 0.0%
Masco Corp.		71,775		752,202
Capital Markets — 1.8%
Ameriprise Financial, Inc.		45,019		2,234,743
The Bank of New York Mellon Corp.		241,110		4,800,500
BlackRock, Inc. (c)		19,881		3,543,590
The Charles Schwab Corp.		215,385		2,425,235
Common Stocks	Shares		Value
Capital Markets (concluded)
E*Trade Financial Corp. (a)		49,472	$	393,797
Federated Investors, Inc., Class B		17,875		270,806
Franklin Resources, Inc.		28,848		2,771,139
The Goldman Sachs Group, Inc.		97,860		8,849,480
Invesco Ltd.		90,057		1,809,245
Legg Mason, Inc.		23,879		574,290
Morgan Stanley		295,542		4,471,551
Northern Trust Corp.		47,752		1,893,844
State Street Corp.		97,829		3,943,487
T. Rowe Price Group, Inc.		49,963		2,845,393
				40,827,100
Chemicals — 2.2%
Air Products & Chemicals, Inc.		41,857		3,565,798
Airgas, Inc.		13,490		1,053,299
CF Industries Holdings, Inc.		12,945		1,876,766
The Dow Chemical Co.		234,715		6,750,403
E.I. du Pont de Nemours & Co.		183,687		8,409,191
Eastman Chemical Co.		27,314		1,066,885
Ecolab, Inc.		59,760		3,454,726
FMC Corp.		14,134		1,216,089
International Flavors & Fragrances, Inc.		15,939		835,522
Monsanto Co.		106,383		7,454,257
The Mosaic Co.		59,386		2,994,836
PPG Industries, Inc.		30,513		2,547,530
Praxair, Inc.		59,593		6,370,492
The Sherwin-Williams Co.		16,908		1,509,377
Sigma-Aldrich Corp.		23,871		1,490,983
				50,596,154
Commercial Banks — 2.6%
BB&T Corp.		138,972		3,497,925
Comerica, Inc.		39,746		1,025,447
Fifth Third Bancorp		182,257		2,318,309
First Horizon National Corp.		52,072		416,576
Huntington Bancshares, Inc.		172,439		946,690
KeyCorp		188,820		1,452,026
M&T Bank Corp.		24,888		1,899,950
Regions Financial Corp.		251,789		1,082,693
SunTrust Banks, Inc.		106,381		1,882,944
The PNC Financial Services Group, Inc. (c)		104,451		6,023,689
U.S. Bancorp		379,325		10,260,741
Wells Fargo & Co.		1,047,998		28,882,825
Zions Bancorporation		36,844		599,820
				60,289,635
Commercial Services & Supplies — 0.4%
Avery Dennison Corp.		21,121		605,750
Cintas Corp.		22,106		769,510
Iron Mountain, Inc.		36,982		1,139,046
Pitney Bowes, Inc.		40,065		742,805
R.R. Donnelley & Sons Co.		37,493		541,024
Republic Services, Inc., Class A		62,665		1,726,421
Stericycle, Inc. (a)		17,065		1,329,705
Waste Management, Inc.		91,564		2,995,058
				9,849,319

See Notes to Financial Statements.

16 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Schedule of Investments (continued)	Master S&P 500 Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Communications Equipment — 2.1%
Cisco Systems, Inc.		1,068,390	$	19,316,491
F5 Networks, Inc. (a)		15,809		1,677,651
Harris Corp.		22,448		809,026
JDS Uniphase Corp. (a)(b)		45,268		472,598
Juniper Networks, Inc. (a)		104,627		2,135,437
Motorola Mobility Holdings, Inc. (a)		52,422		2,033,973
Motorola Solutions, Inc.		57,199		2,647,742
QUALCOMM, Inc.		334,067		18,273,465
				47,366,383
Computers & Peripherals — 4.6%
Apple, Inc. (a)		184,688		74,798,640
Dell, Inc. (a)		303,638		4,442,224
EMC Corp. (a)		405,495		8,734,362
Hewlett-Packard Co.		394,944		10,173,758
Lexmark International, Inc., Class A		14,358		474,819
NetApp, Inc. (a)		71,341		2,587,538
SanDisk Corp. (a)		47,815		2,352,976
Western Digital Corp. (a)		46,724		1,446,108
				105,010,425
Construction & Engineering — 0.2%
Fluor Corp.		33,372		1,676,943
Jacobs Engineering Group, Inc. (a)		25,278		1,025,781
Quanta Services, Inc. (a)		42,063		906,037
				3,608,761
Construction Materials — 0.0%
Vulcan Materials Co.		25,535		1,004,802
Consumer Finance — 0.8%
American Express Co.		200,856		9,474,377
Capital One Financial Corp.		91,530		3,870,804
Discover Financial Services		109,369		2,624,856
SLM Corp.		101,002		1,353,427
				17,323,464
Containers & Packaging — 0.1%
Ball Corp.		32,412		1,157,433
Bemis Co.		20,268		609,661
Owens-Illinois, Inc. (a)		32,836		636,362
Sealed Air Corp.		31,882		548,689
				2,952,145
Distributors — 0.1%
Genuine Parts Co.		31,063		1,901,056
Diversified Consumer Services — 0.1%
Apollo Group, Inc., Class A (a)		23,032		1,240,734
DeVry, Inc.		12,027		462,559
H&R Block, Inc.		58,389		953,492
				2,656,785
Diversified Financial Services — 2.7%
Bank of America Corp.		2,014,629		11,201,337
Citigroup, Inc.		581,076		15,288,110
CME Group, Inc.		13,166		3,208,159
IntercontinentalExchange, Inc. (a)		14,392		1,734,956
JPMorgan Chase & Co.		755,132		25,108,139
Leucadia National Corp.		39,675		902,209
Moody’s Corp.		38,282		1,289,338
The NASDAQ OMX Group, Inc. (a)		25,271		619,392
NYSE Euronext		51,879		1,354,042
				60,705,682
Common Stocks	Shares		Value
Diversified Telecommunication Services — 2.9%
AT&T, Inc.		1,177,641	$	35,611,864
CenturyLink, Inc.		122,987		4,575,117
Frontier Communications Corp.		197,227		1,015,719
Verizon Communications, Inc.		562,635		22,572,916
Windstream Corp.		115,750		1,358,905
				65,134,521
Electric Utilities — 2.1%
American Electric Power Co., Inc.		96,146		3,971,791
Duke Energy Corp.		264,550		5,820,100
Edison International		64,590		2,674,026
Entergy Corp.		35,028		2,558,795
Exelon Corp.		131,606		5,707,752
FirstEnergy Corp.		83,318		3,690,988
NextEra Energy, Inc.		84,151		5,123,113
Northeast Utilities, Inc.		35,437		1,278,213
Pepco Holdings, Inc.		44,573		904,832
Pinnacle West Capital Corp.		21,601		1,040,736
PPL Corp.		115,170		3,388,301
Progress Energy, Inc.		58,739		3,290,559
The Southern Co.		171,292		7,929,107
				47,378,313
Electrical Equipment — 0.5%
Cooper Industries Plc		31,472		1,704,209
Emerson Electric Co.		146,264		6,814,440
Rockwell Automation, Inc.		28,103		2,061,917
Roper Industries, Inc.		19,283		1,675,114
				12,255,680
Electronic Equipment, Instruments & Components — 0.4%
Amphenol Corp., Class A		32,519		1,476,038
Corning, Inc.		312,934		4,061,883
Flir Systems, Inc.		30,227		757,791
Jabil Circuit, Inc.		36,118		710,080
Molex, Inc.		27,036		645,079
TE Connectivity Ltd.		83,898		2,584,897
				10,235,768
Energy Equipment & Services — 2.0%
Baker Hughes, Inc.		86,907		4,227,157
Cameron International Corp. (a)		48,576		2,389,453
Diamond Offshore Drilling, Inc.		13,622		752,752
FMC Technologies, Inc. (a)		47,589		2,485,574
Halliburton Co.		182,693		6,304,735
Helmerich & Payne, Inc.		21,209		1,237,757
Nabors Industries Ltd. (a)		57,465		996,443
National Oilwell Varco, Inc.		84,128		5,719,863
Noble Corp. (a)		50,011		1,511,332
Rowan Cos., Inc. (a)		24,609		746,391
Schlumberger Ltd.		266,735		18,220,668
				44,592,125
Food & Staples Retailing — 2.4%
Costco Wholesale Corp.		86,132		7,176,518
CVS Caremark Corp.		258,717		10,550,480
The Kroger Co.		118,782		2,876,900
Safeway, Inc.		66,703		1,403,431
SUPERVALU, Inc.		42,043		341,389

See Notes to Financial Statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 17

Schedule of Investments (continued)	Master S&P 500 Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Food & Staples Retailing (concluded)
SYSCO Corp.		117,434	$	3,444,339
Wal-Mart Stores, Inc.		347,112		20,743,413
Walgreen Co.		176,800		5,845,008
Whole Foods Market, Inc.		31,774		2,210,835
				54,592,313
Food Products — 1.9%
Archer-Daniels-Midland Co.		132,838		3,799,167
Campbell Soup Co.		35,683		1,186,103
ConAgra Foods, Inc.		82,150		2,168,760
Dean Foods Co. (a)		36,435		408,072
General Mills, Inc.		128,109		5,176,885
H.J. Heinz Co.		63,610		3,437,484
The Hershey Co.		30,322		1,873,293
Hormel Foods Corp.		27,708		811,567
The J.M. Smucker Co.		22,737		1,777,351
Kellogg Co.		49,492		2,502,810
Kraft Foods, Inc.		351,147		13,118,852
McCormick & Co., Inc.		26,144		1,318,181
Mead Johnson Nutrition Co.		40,409		2,777,311
Sara Lee Corp.		117,768		2,228,171
Tyson Foods, Inc., Class A		57,791		1,192,806
				43,776,813
Gas Utilities — 0.1%
AGL Resources, Inc.		23,084		975,530
Oneok, Inc.		20,516		1,778,532
				2,754,062
Health Care Equipment & Supplies — 1.8%
Baxter International, Inc.		112,105		5,546,955
Becton Dickinson & Co.		42,742		3,193,682
Boston Scientific Corp. (a)		291,090		1,554,421
C.R. Bard, Inc.		17,170		1,468,035
CareFusion Corp. (a)		44,810		1,138,622
Covidien Plc		95,929		4,317,764
Dentsply International, Inc.		28,214		987,208
Edwards Lifesciences Corp. (a)		22,779		1,610,475
Intuitive Surgical, Inc. (a)		7,744		3,585,549
Medtronic, Inc.		209,731		8,022,211
St. Jude Medical, Inc.		63,473		2,177,124
Stryker Corp.		64,379		3,200,280
Varian Medical Systems, Inc. (a)		22,412		1,504,518
Zimmer Holdings, Inc. (a)		35,661		1,905,011
				40,211,855
Health Care Providers & Services — 2.1%
Aetna, Inc.		72,062		3,040,296
AmerisourceBergen Corp.		51,416		1,912,161
Cardinal Health, Inc.		68,770		2,792,750
Cigna Corp.		56,794		2,385,348
Coventry Health Care, Inc. (a)		28,058		852,121
DaVita, Inc. (a)		18,605		1,410,445
Express Scripts, Inc. (a)		96,728		4,322,774
Humana, Inc.		32,338		2,833,132
Laboratory Corp. of America Holdings (a)		19,488		1,675,383
McKesson Corp.		48,800		3,802,008
Medco Health Solutions, Inc. (a)		77,093		4,309,499
Patterson Cos., Inc.		17,499		516,571
Common Stocks	Shares		Value
Health Care Providers & Services (concluded)
Quest Diagnostics, Inc.		31,365	$	1,821,052
Tenet Healthcare Corp. (a)		86,116		441,775
UnitedHealth Group, Inc.		212,065		10,747,454
WellPoint, Inc.		69,168		4,582,380
				47,445,149
Health Care Technology — 0.1%
Cerner Corp. (a)		28,808		1,764,490
Hotels, Restaurants & Leisure — 2.0%
Carnival Corp.		90,011		2,937,959
Chipotle Mexican Grill, Inc. (a)		6,211		2,097,703
Darden Restaurants, Inc.		26,233		1,195,700
International Game Technology		58,962		1,014,146
Marriott International, Inc., Class A		53,125		1,549,656
McDonald’s Corp.		203,352		20,402,306
Starbucks Corp.		148,058		6,812,149
Starwood Hotels & Resorts Worldwide, Inc.		38,078		1,826,602
Wyndham Worldwide Corp.		30,245		1,144,168
Wynn Resorts Ltd.		15,845		1,750,714
Yum! Brands, Inc.		91,555		5,402,661
				46,133,764
Household Durables — 0.3%
D.R. Horton, Inc.		54,299		684,710
Harman International Industries, Inc.		13,861		527,272
Leggett & Platt, Inc.		27,889		642,563
Lennar Corp., Class A		31,994		628,682
Newell Rubbermaid, Inc.		57,751		932,679
Pulte Group, Inc. (a)		66,768		421,306
Stanley Black & Decker, Inc.		33,677		2,276,565
Whirlpool Corp.		15,142		718,488
				6,832,265
Household Products — 2.3%
The Clorox Co.		26,360		1,754,521
Colgate-Palmolive Co.		96,171		8,885,239
Kimberly-Clark Corp.		78,226		5,754,304
The Procter & Gamble Co.		546,753		36,473,893
				52,867,957
Independent Power Producers & Energy Traders — 0.2%
The AES Corp. (a)		128,370		1,519,901
Constellation Energy Group, Inc.		39,893		1,582,555
NRG Energy, Inc. (a)		44,632		808,732
				3,911,188
Industrial Conglomerates — 2.3%
3M Co.		139,301		11,385,071
General Electric Co.		2,097,992		37,575,037
Tyco International Ltd.		92,005		4,297,553
				53,257,661
Insurance — 3.5%
ACE Ltd.		66,961		4,695,305
Aflac, Inc.		93,040		4,024,910
The Allstate Corp.		100,527		2,755,445
American International Group, Inc. (a)		86,553		2,008,030
Aon Corp.		64,302		3,009,334
Assurant, Inc.		18,239		748,893
Berkshire Hathaway, Inc., Class B (a)		349,379		26,657,618
Chubb Corp.		55,299		3,827,797
Cincinnati Financial Corp.		32,018		975,268

See Notes to Financial Statements.

18 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Schedule of Investments (continued)	Master S&P 500 Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Insurance (concluded)
Genworth Financial, Inc., Class A (a)		98,319	$	643,989
Hartford Financial Services Group, Inc.		88,267		1,434,339
Lincoln National Corp.		60,075		1,166,657
Loews Corp.		60,290		2,269,919
Marsh & McLennan Cos., Inc.		106,697		3,373,759
MetLife, Inc.		210,051		6,549,390
Principal Financial Group, Inc.		60,759		1,494,671
The Progressive Corp.		122,698		2,393,838
Prudential Financial, Inc.		93,850		4,703,762
Torchmark Corp.		20,326		881,945
The Travelers Cos., Inc.		81,900		4,846,023
Unum Group		57,210		1,205,415
XL Group Plc		62,777		1,241,101
				80,907,408
Internet & Catalog Retail — 0.8%
Amazon.com, Inc. (a)		72,308		12,516,515
Expedia, Inc.		18,499		536,841
Netflix, Inc. (a)		10,968		759,972
Priceline.com, Inc. (a)		9,914		4,636,877
TripAdvisor, Inc. (a)		18,499		466,360
				18,916,565
Internet Software & Services — 2.0%
Akamai Technologies, Inc. (a)		35,748		1,153,945
eBay, Inc. (a)		228,229		6,922,186
Google, Inc., Class A (a)		50,205		32,427,409
VeriSign, Inc.		31,693		1,132,074
Yahoo! Inc. (a)		246,645		3,978,384
				45,613,998
IT Services — 3.9%
Accenture Plc, Class A (b)		127,303		6,776,339
Automatic Data Processing, Inc.		97,043		5,241,292
Cognizant Technology Solutions Corp. (a)(b)		60,163		3,869,082
Computer Sciences Corp.		31,026		735,316
Fidelity National Information Services, Inc.		48,315		1,284,696
Fiserv, Inc. (a)		28,049		1,647,598
International Business Machines Corp.		234,217		43,067,822
MasterCard, Inc., Class A		21,188		7,899,310
Paychex, Inc.		63,860		1,922,825
SAIC, Inc. (a)		54,323		667,630
Teradata Corp. (a)		33,348		1,617,711
Total System Services, Inc.		32,385		633,451
Visa, Inc., Class A		101,088		10,263,465
The Western Union Co.		123,192		2,249,486
				87,876,023
Leisure Equipment & Products — 0.1%
Hasbro, Inc.		22,497		717,429
Mattel, Inc.		67,226		1,866,194
				2,583,623
Life Sciences Tools & Services — 0.4%
Agilent Technologies, Inc. (a)		68,797		2,403,079
Life Technologies Corp. (a)		35,250		1,371,577
PerkinElmer, Inc.		22,558		451,160
Thermo Fisher Scientific, Inc. (a)		75,216		3,382,464
Waters Corp. (a)(b)		17,833		1,320,534
				8,928,814
Common Stocks	Shares		Value
Machinery — 2.1%
Caterpillar, Inc.		128,522	$	11,644,093
Cummins, Inc.		38,352		3,375,743
Danaher Corp.		113,462		5,337,253
Deere & Co.		82,195		6,357,783
Dover Corp.		36,860		2,139,723
Eaton Corp.		66,104		2,877,507
Flowserve Corp.		11,045		1,096,989
Illinois Tool Works, Inc.		96,079		4,487,850
Ingersoll-Rand Plc		61,857		1,884,783
Joy Global, Inc.		20,825		1,561,250
PACCAR, Inc.		70,817		2,653,513
Pall Corp.		22,898		1,308,621
Parker Hannifin Corp.		30,061		2,292,151
Snap-On, Inc.		11,621		588,255
Xylem, Inc.		36,724		943,440
				48,548,954
Media — 3.1%
Cablevision Systems Corp., Class A		44,529		633,202
CBS Corp., Class B		130,148		3,532,217
Comcast Corp., Class A		541,441		12,837,566
DIRECTV, Class A (a)		140,275		5,998,159
Discovery Communications, Inc., Class A (a)		52,587		2,154,489
Gannett Co., Inc.		48,077		642,790
Interpublic Group of Cos., Inc.		89,482		870,660
The McGraw-Hill Cos., Inc.		58,368		2,624,809
News Corp., Class A		435,926		7,776,920
Omnicom Group, Inc.		54,887		2,446,862
Scripps Networks Interactive		19,391		822,566
Time Warner Cable, Inc.		63,458		4,034,025
Time Warner, Inc.		198,966		7,190,631
Viacom, Inc., Class B		109,795		4,985,791
Walt Disney Co.		357,061		13,389,788
The Washington Post Co., Class B		979		368,897
				70,309,372
Metals & Mining — 0.9%
Alcoa, Inc.		210,862		1,823,956
Allegheny Technologies, Inc.		21,000		1,003,800
Cliffs Natural Resources, Inc.		28,162		1,755,901
Freeport-McMoRan Copper & Gold, Inc., Class B		188,296		6,927,410
Newmont Mining Corp.		98,235		5,895,082
Nucor Corp.		63,229		2,501,972
Titanium Metals Corp.		15,489		232,025
United States Steel Corp.		28,711		759,693
				20,899,839
Multi-Utilities — 1.5%
Ameren Corp.		47,888		1,586,529
CenterPoint Energy, Inc.		84,385		1,695,295
CMS Energy Corp.		49,899		1,101,770
Consolidated Edison, Inc.		58,370		3,620,691
Dominion Resources, Inc.		113,086		6,002,605
DTE Energy Co.		33,553		1,826,961
Integrys Energy Group, Inc.		15,394		834,047
NiSource, Inc.		55,609		1,324,050
PG&E Corp.		80,789		3,330,123
Public Service Enterprise Group, Inc.		100,882		3,330,115
SCANA Corp.		23,095		1,040,661

See Notes to Financial Statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 19

Schedule of Investments (continued)	Master S&P 500 Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Multi-Utilities (concluded)
Sempra Energy		47,851	$	2,631,805
TECO Energy, Inc.		42,961		822,273
Wisconsin Energy Corp.		46,317		1,619,242
Xcel Energy, Inc.		96,784		2,675,110
				33,441,277
Multiline Retail — 0.8%
Big Lots, Inc. (a)		12,995		490,691
Dollar Tree, Inc. (a)		23,668		1,967,047
Family Dollar Stores, Inc.		23,020		1,327,333
JCPenney Co., Inc.		28,325		995,624
Kohl’s Corp.		50,420		2,488,227
Macy’s, Inc.		82,987		2,670,522
Nordstrom, Inc.		32,253		1,603,297
Sears Holdings Corp. (a)(b)		7,629		242,450
Target Corp.		133,391		6,832,287
				18,617,478
Office Electronics — 0.1%
Xerox Corp.		275,579		2,193,609
Oil, Gas & Consumable Fuels — 10.2%
Alpha Natural Resources, Inc. (a)		43,831		895,467
Anadarko Petroleum Corp.		98,946		7,552,548
Apache Corp.		76,287		6,910,076
Cabot Oil & Gas Corp.		20,705		1,571,509
Chesapeake Energy Corp.		130,935		2,918,541
Chevron Corp.		395,751		42,107,906
ConocoPhillips		263,874		19,228,498
Consol Energy, Inc.		44,929		1,648,894
Denbury Resources, Inc. (a)		79,731		1,203,938
Devon Energy Corp.		80,307		4,979,034
El Paso Corp.		153,547		4,079,744
EOG Resources, Inc.		53,546		5,274,816
EQT Corp.		29,615		1,622,606
Exxon Mobil Corp. (c)		952,482		80,732,374
Hess Corp.		59,005		3,351,484
Marathon Oil Corp.		139,484		4,082,697
Marathon Petroleum Corp.		70,636		2,351,472
Murphy Oil Corp.		38,344		2,137,295
Newfield Exploration Co. (a)		26,203		988,639
Noble Energy, Inc.		34,973		3,301,102
Occidental Petroleum Corp.		161,341		15,117,652
Peabody Energy Corp.		53,662		1,776,749
Pioneer Natural Resources Co.		24,339		2,177,854
QEP Resources, Inc.		35,057		1,027,170
Range Resources Corp.		31,132		1,928,316
Southwestern Energy Co. (a)		68,950		2,202,263
Spectra Energy Corp.		129,532		3,983,109
Sunoco, Inc.		21,405		878,033
Tesoro Corp. (a)(b)		28,563		667,232
Valero Energy Corp.		110,513		2,326,299
Williams Cos., Inc.		117,344		3,874,699
				232,898,016
Paper & Forest Products — 0.2%
International Paper Co.		86,608		2,563,597
MeadWestvaco Corp.		33,827		1,013,118
				3,576,715
Common Stocks	Shares		Value
Personal Products — 0.2%
Avon Products, Inc.		85,348	$	1,491,030
The Estée Lauder Cos., Inc., Class A		22,222		2,495,975
				3,987,005
Pharmaceuticals — 6.2%
Abbott Laboratories		309,599		17,408,752
Allergan, Inc.		60,647		5,321,168
Bristol-Myers Squibb Co.		336,802		11,868,903
Eli Lilly & Co.		202,509		8,416,274
Forest Laboratories, Inc. (a)		52,494		1,588,468
Hospira, Inc. (a)		32,674		992,309
Johnson & Johnson		542,686		35,589,348
Merck & Co., Inc.		605,725		22,835,833
Mylan, Inc. (a)		84,467		1,812,662
Perrigo Co.		18,528		1,802,774
Pfizer, Inc.		1,527,597		33,057,199
Watson Pharmaceuticals, Inc. (a)		25,268		1,524,671
				142,218,361
Professional Services — 0.1%
Dun & Bradstreet Corp.		9,608		718,967
Equifax, Inc.		24,260		939,832
Robert Half International, Inc.		28,714		817,200
				2,475,999
Real Estate Investment Trusts (REITs) — 1.8%
Apartment Investment & Management Co., Class A		23,585		540,332
AvalonBay Communities, Inc.		18,917		2,470,560
Boston Properties, Inc.		29,379		2,926,148
Equity Residential		59,110		3,371,043
HCP, Inc.		81,196		3,363,950
Health Care REIT, Inc.		37,737		2,057,799
Host Marriott Corp. (b)		139,920		2,066,618
Kimco Realty Corp.		80,650		1,309,756
Plum Creek Timber Co., Inc.		32,101		1,173,613
ProLogis		90,946		2,600,146
Public Storage		28,266		3,800,646
Simon Property Group, Inc.		58,375		7,526,873
Ventas, Inc.		57,434		3,166,337
Vornado Realty Trust		36,819		2,829,908
Weyerhaeuser Co.		106,738		1,992,799
				41,196,528
Real Estate Management & Development — 0.0%
CBRE Group, Inc. (a)		64,326		979,042
Road & Rail — 0.9%
CSX Corp.		208,778		4,396,864
Norfolk Southern Corp.		66,829		4,869,161
Ryder System, Inc.		10,227		543,463
Union Pacific Corp.		96,085		10,179,245
				19,988,733
Semiconductors & Semiconductor Equipment — 2.3%
Advanced Micro Devices, Inc. (a)		117,638		635,245
Altera Corp.		63,664		2,361,934
Analog Devices, Inc.		59,332		2,122,899
Applied Materials, Inc.		259,175		2,775,764
Broadcom Corp., Class A (a)		96,536		2,834,297
First Solar, Inc. (a)(b)		11,840		399,718

See Notes to Financial Statements.

20 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Schedule of Investments (continued)	Master S&P 500 Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Semiconductors & Semiconductor Equipment (concluded)
Intel Corp.		1,011,942	$	24,539,594
KLA-Tencor Corp.		33,092		1,596,689
Linear Technology Corp.		45,162		1,356,215
LSI Corp. (a)(b)		112,665		670,357
Microchip Technology, Inc.		37,769		1,383,479
Micron Technology, Inc. (a)		195,774		1,231,419
Novellus Systems, Inc. (a)		13,305		549,363
NVIDIA Corp. (a)		121,376		1,682,271
Teradyne, Inc. (a)		36,815		501,788
Texas Instruments, Inc.		227,019		6,608,523
Xilinx, Inc.		52,542		1,684,497
				52,934,052
Software — 3.5%
Adobe Systems, Inc. (a)		97,854		2,766,333
Autodesk, Inc. (a)		45,343		1,375,253
BMC Software, Inc. (a)		33,275		1,090,754
CA, Inc.		72,686		1,469,347
Citrix Systems, Inc. (a)		36,980		2,245,426
Electronic Arts, Inc. (a)		66,242		1,364,585
Intuit, Inc.		59,123		3,109,279
Microsoft Corp.		1,487,808		38,623,496
Oracle Corp.		781,989		20,058,018
Red Hat, Inc. (a)		38,247		1,579,219
Salesforce.com, Inc. (a)		27,068		2,746,319
Symantec Corp. (a)		145,540		2,277,701
				78,705,730
Specialty Retail — 2.0%
Abercrombie & Fitch Co., Class A		17,230		841,513
AutoNation, Inc. (a)		9,293		342,633
AutoZone, Inc. (a)		5,558		1,806,183
Bed Bath & Beyond, Inc. (a)		47,500		2,753,575
Best Buy Co., Inc.		57,568		1,345,364
CarMax, Inc. (a)(b)		44,839		1,366,693
GameStop Corp., Class A (a)(b)		27,568		665,216
The Gap, Inc.		68,750		1,275,312
Home Depot, Inc.		306,393		12,880,762
Limited Brands, Inc.		49,063		1,979,692
Lowe’s Cos., Inc.		248,964		6,318,706
O’Reilly Automotive, Inc. (a)		25,647		2,050,478
Orchard Supply Hardware Stores Corp., Class A (a)		345		1,296
Ross Stores, Inc.		45,812		2,177,444
Staples, Inc.		139,086		1,931,904
Tiffany & Co.		25,219		1,671,011
TJX Cos., Inc.		74,987		4,840,411
Urban Outfitters, Inc. (a)		21,330		587,855
				44,836,048
Textiles, Apparel & Luxury Goods — 0.6%
Coach, Inc.		58,096		3,546,180
NIKE, Inc., Class B		73,739		7,106,227
Ralph Lauren Corp.		12,825		1,770,876
VF Corp.		17,344		2,202,515
				14,625,798
Thrifts & Mortgage Finance — 0.1%
Hudson City Bancorp, Inc.		105,568		659,800
People’s United Financial, Inc.		70,118		901,016
				1,560,816
Common Stocks	Shares		Value
Tobacco — 2.0%
Altria Group, Inc.		408,728	$	12,118,785
Lorillard, Inc.		26,854		3,061,356
Philip Morris International, Inc.		345,190		27,090,511
Reynolds American, Inc.		67,485		2,795,229
				45,065,881
Trading Companies & Distributors — 0.2%
Fastenal Co.		58,521		2,552,101
W.W. Grainger, Inc.		12,049		2,255,452
				4,807,553
Wireless Telecommunication Services — 0.3%
American Tower Corp., Class A		78,080		4,685,581
MetroPCS Communications, Inc. (a)		59,003		512,146
Sprint Nextel Corp. (a)		593,351		1,388,441
				6,586,168
Total Common Stocks — 99.2%				2,261,924,678
Preferred Stocks
Specialty Retail — 0.0%
Orchard Supply Hardware Stores Corp., Series A, 0.00% (a)		345		1,296
Total Long-Term Investments (Cost — $1,820,817,023) — 99.2%				2,261,925,974
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (d)(e)		20,822,036		20,822,036
	Beneficial Interest (000)
BlackRock Liquidity Series, LLC Money Market Series, 0.22% (d)(e)(f)	$	21,533		21,533,097
Total Short-Term Securities (Cost — $42,355,133) — 1.8%				42,355,133
Total Investments (Cost — $1,863,172,156*) — 101.0%				2,304,281,107
Liabilities in Excess of Other Assets — (1.0)%				(23,214,529	)
Net Assets — 100.0%			$	2,281,066,578

* The cost and unrealized appreciation (depreciation) of investments as of December 31, 2011, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	1,466,579,071
Gross unrealized appreciation	$	955,842,971
Gross unrealized depreciation		118,140,935
Net unrealized appreciation	$	837,702,036

(a)	Non-income producing security.
(b)	Security, or a portion of security, is on loan.
(c)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.

See Notes to Financial Statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 21

Schedule of Investments (concluded) Master S&P 500 Index Series

(d) Investments in companies considered to be an affiliate of the Series during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Beneficial Interest/ Shares Held at December 31, 2010		Shares Purchased			Beneficial Interest/ Shares Sold			Beneficial Interest/ Shares Held at December 31, 2011		Value at December 31, 2011		Realized Gain (Loss)			Income
BlackRock, Inc.		—		21,176			(1,295	)		19,881	$	3,543,590	$	(23,504	)	$	80,375
BlackRock Liquidity Funds, TempFund, Institutional Class		11,774,805		9,047,231	1		—			20,822,036	$	20,822,036	$	307		$	10,485
BlackRock Liquidity Series, LLC Money Market Series	$	135,284,520		—		$	(113,751,423	)2	$	21,533,097	$	21,533,097		—		$	290,233
The PNC Financial Services Group, Inc.		108,792		3,620			(7,961	)		104,451	$	6,023,689	$	16,408		$	181,911

1	Represents net shares purchased.
2	Represents net beneficial interest sold.

(e)	Represents the current yield as of report date.
(f)	Security was purchased with the cash collateral from loaned securities.
•	Financial futures contracts sold as of December 31,2011 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value	Unrealized Depreciation
382	S&P 500 Emini	Chicago Mercantile	March 2012	$23,924,660	$(44,721)

• Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities

• Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

• Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Series’ own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Series’ perceived risk of investing in those securities. For information about the Series’ policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of December 31, 2011 in determining the fair valuation of the Series’ investments and derivative financial instruments:

Valuation Inputs	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments3	$	2,261,923,382	$	2,592		—	$	2,261,925,974
Short-Term Securities		20,822,036		21,533,097		—		42,355,133
Total	$	2,282,745,418	$	21,535,689		—	$	2,304,281,107

³ See above schedule of investments for values in each industry excluding Level 2, Specialty Retail, within the table.

Valuation Inputs	Level 1			Level 2		Level 3		Total
Derivative Financial Instruments4
Liabilities:
Equity contracts	$	(44,721	)		—		—	$	(44,721	)

³ Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.

22 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Statement of Assets and Liabilities Master S&P 500 Index Series

December 31, 2011
Assets
Investments at value — unaffiliated (including securities loaned of $20,985,148) (cost — $1,812,366,267)	$	2,252,358,695
Investments at value — affiliated (cost — $50,805,889)		51,922,412
Investments sold receivable		7,724,027
Dividends receivable		3,433,513
Securities lending income receivable — affiliated		40,701
Prepaid expenses		43,537
Total assets		2,315,522,885
Liabilities
Collateral on securities loaned at value		21,533,097
Margin variation payable		89,170
Investment advisory fees payable		38,405
Other affiliates payable		5,916
Directors’ fees payable		943
Withdrawals payable to investors		12,587,583
Other accrued expenses payable		201,193
Total liabilities		34,456,307
Net Assets	$	2,281,066,578
Net Assets Consist of
Investors’ capital	$	1,840,002,348
Net unrealized appreciation/depreciation		441,064,230
Net Assets	$	2,281,066,578

See Notes to Financial Statements.
	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2011	23

Statement of Operations Master S&P 500 Index Series

Year Ended December 31, 2011
Investment Income
Dividends — unaffiliated	$	48,964,963
Foreign taxes withheld		(43,371	)
Dividends — affiliated		272,771
Securities lending — affiliated		305,591
Total income		49,499,954
Expenses
Investment advisory		236,277
Accounting services		383,755
Custodian		111,432
Professional		101,513
Directors		57,219
Registration		20,000
Printing		4,733
Miscellaneous		46,642
Total expenses		961,571
Less fees waived by advisor		(130,251	)
Total expenses after fees waived		831,320
Net investment income		48,668,634
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated		(2,425,254	)
Investments — affiliated		(6,789	)
Financial futures contracts		(2,311,537	)
		(4,743,580	)
Net change in unrealized appreciation/depreciation on:
Investments		9,277,367
Financial futures contracts		(55,374	)
		9,221,993
Total realized and unrealized gain		4,478,413
Net Increase in Net Assets Resulting from Operations	$	53,147,047

See Notes to Financial Statements.
24	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2011

Statements of Changes in Net Assets Master S&P 500 Index Series

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2011			2010
Operations
Net investment income	$	48,668,634		$	46,035,411
Net realized gain (loss)		(4,743,580	)		(5,190,154	)
Net change in unrealized appreciation/depreciation		9,221,993			279,529,123
Net increase in net assets resulting from operations		53,147,047			320,374,380
Capital Transactions
Proceeds from contributions		758,612,964			601,567,988
Value of withdrawals		(894,677,279	)		(836,617,134	)
Net decrease in net assets derived from capital transactions		(136,064,315	)		(235,049,146	)
Net Assets
Total increase (decrease) in net assets		(82,917,268	)		85,325,234
Beginning of year		2,363,983,846			2,278,658,612
End of year	$	2,281,066,578		$	2,363,983,846

See Notes to Financial Statements.
	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2011	25

Financial Highlights Master S&P 500 Index Series

	Year Ended December 31,
	2011			2010			2009			2008			2007
Total Investment Return
Total investment return		2.06	%		15.11	%		26.61	%		(36.92	)%		5.56	%
Ratios to Average Net Assets
Total expenses		0.04	%		0.04	%		0.05	%		0.04	%		0.04	%
Total expenses after fees waived and paid indirectly		0.03	%		0.04	%		0.04	%		0.04	%		0.03	%
Net investment income		2.06	%		2.03	%		2.32	%		2.31	%		1.95	%
Supplemental Data
Net assets, end of year (000)	$	2,281,067		$	2,363,984		$	2,278,659		$	1,953,848		$	3,721,171
Portfolio turnover		6	%		5	%		7	%		8	%		4	%

See Notes to Financial Statements.
26	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2011

Notes to Financial Statements Master S&P 500 Index Series

1. Organization and Significant Accounting Policies:

Master S&P 500 Index Series (the “Series”), a diversified, open-end management investment company, is a series of Quantitative Master Series LLC (the “Master LLC”). The Master LLC is registered as an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), and is organized as a Delaware limited liability company. The Master LLC’s Limited Liability Company Agreement permits the Board of Directors of the Master LLC (the “Board”) to issue nontransferable interests in the Master LLC, subject to certain limitations. The Series’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

The following is a summary of significant accounting policies followed by the Series:

Valuation: US GAAP defines fair value as the price the Series would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Series fair values its financial instruments at market value using independent dealers or pricing services under policies approved by the Board. Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System (“NASDAQ”) are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

The Series values its investments in BlackRock Liquidity Series, LLC Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments will follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act. The Series may withdraw up to 25% of its investment daily, although the manager of the Money Market Series, in its sole discretion, may permit an investor to withdraw more than 25% on any one day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or if a price is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that the Series might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Series either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts), the Series will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party to such transactions has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Securities Lending: The Series may lend securities to approved borrowers, such as banks, brokers and other financial institutions. The borrower pledges cash, securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral, which will be maintained at all times in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Series and any additional required collateral is delivered to the Series on the next business day. Securities lending income, as disclosed in the Statement of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, the Series earns interest income on the securities loaned but does not

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 27

Notes to Financial Statements (continued) Master S&P 500 Index Series

receive interest income on the securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. In the event that the borrower defaults on its obligation to return borrowed securities because of insolvency or for any other reason, the Series could experience delays and costs in gaining access to the collateral. The Series also could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the year ended December 31, 2011, any securities on loan were collateralized by cash.

Income Taxes: The Series is classified as a partnership for federal income tax purposes. As such, each investor in the Series is treated as the owner of its proportionate share of net assets, income, expenses and realized and unrealized gains and losses of the Series. Therefore, no federal income tax provision is required. It is intended that the Series’ assets will be managed so an investor in the Series can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

The Series files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Series’ US federal tax returns remains open for each of the four years ended December 31, 2011. The statutes of limitations on the Series’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

In December 2011, the FASB issued guidance that will enhance current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting agreements or similar agreements and will require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the Statement of Assets and Liabilities. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

Other: Expenses directly related to the Series are charged to the Series. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Series has an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Series engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Series and to economically hedge, or protect, its exposure to certain risks such as equity risk. These contracts may be transacted on an exchange.

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

Financial Futures Contracts: The Series purchases or sells financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in the value of equity securities (equity risk). Financial futures contracts are agreements between the Series and counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Series agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Series as unrealized appreciation or depreciation. When the contract is closed, the Series records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

28 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Notes to Financial Statements (continued) Master S&P 500 Index Series

Derivative Financial Instruments Categorized by Risk Exposure:

Fair Values of Derivative Financial Instruments as of December 31, 2011
	Liability Derivatives
	Statement of Assets and Liabilities Location	Value
Equity contracts	Net unrealized appreciation/ depreciation1	$	44,721

¹ Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedule of Investments. Only current day’s margin variation is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Financial Instruments in the Statement of Operations Year Ended December 31, 2011
	Net Realized Loss From
Equity contracts:
Financial futures contracts		$ (2,311,537)
	Net Change in Unrealized Appreciation/Depreciation on
Equity contracts:
Financial futures contracts		$ (55,374)

For the year ended December 31, 2011, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average number of contracts purchased		289
Average notional value of contracts purchased	$	18,167,765

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but Barclays is not.

The Master LLC, on behalf of the Series, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Series’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of the Series’ portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Series. For such services, the Series pays the Manager a monthly fee at an annual rate of 0.01% of the Series’ average daily net assets.

The Manager contractually agreed to waive its investment advisory fee by 0.005% of the Series’ average daily net assets. The Manager has agreed not to reduce or discontinue this contractual waiver prior to May 1, 2012 unless approved by the Board, including a majority of the Independent Directors. For the year ended December 31, 2011, the Manager waived $93,567, which is included in fees waived by advisor in the Statement of Operations.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Series pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Series’ investment in other affiliated investment companies, if any. For the year ended December 31, 2011, the Manager waived $36,684, which is included in fees waived by advisor in the Statement of Operations.

The Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by the Series to the Manager.

For the year ended December 31, 2011, the Series reimbursed the Manager $24,984 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Master LLC, on behalf of the Series, received an exemptive order from the SEC permitting it, among other things, to pay an affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and has retained BIM as the securities lending agent. BIM may, on behalf of the Series, invest cash collateral received by the Series for such loans, among other things, in a private investment company managed by the Manager or in registered money market funds advised by the Manager or its affiliates. As securities lending agent, BIM is responsible for all transaction fees and all other operational costs relating to securities lending activities, other than extraordinary expenses. BIM does not receive any fees for managing the cash collateral. The market value of securities on loan and the value of the related collateral, if applicable, are shown in the Statement of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral invested by BIM is disclosed in the Schedule of Investments. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of rebates paid to, or fees paid by, borrowers of securities. The Series retains 65% of securities lending income and pays a fee to BIM equal to 35% of such income. The share of income earned by the Series on such investments is shown as securities lending — affiliated in the Statement of Operations. For the year ended December 31, 2011, BIM received $88,333 in securities lending agent fees related to securities lending activities for the Series.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 29

Notes to Financial Statements (concluded) Master S&P 500 Index Series

Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock or its affiliates.

4. Investments:

Purchases and sales of investments, excluding short-term securities for the year ended December 31, 2011, were $131,646,545 and $238,632,831, respectively.

5. Borrowings:

The Master LLC, on behalf of the Series, along with certain other funds managed by the Manager and its affiliates, is a party to a $500 million credit agreement with a group of lenders, which expired in November 2011. The Series may borrow under the credit agreement to fund shareholder redemptions. Effective November 2010, the credit agreement had the following terms: a commitment fee of 0.08% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2010. Effective November 2011, the credit agreement was renewed until November 2012 with the following terms: a commitment fee of 0.065% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2011. The Series did not borrow under the credit agreement during the year ended December 31, 2011.

6. Concentration, Market and Credit Risk:

In the normal course of business, the Series invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Series may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Series; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Series may be exposed to counterparty credit risk, or the risk that an entity with which the Series has unsettled or open transactions may fail to or be unable to perform on its commitments. The Series manages counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Series to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Series’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Series’ Statement of Assets and Liabilities, less any collateral held by the Series.

7. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Series through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

30 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Report of Independent Registered Public Accounting Firm Master S&P 500 Index Series

To the Investors of Master S&P 500 Index Series and Board of Directors of Quantitative Master Series LLC:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Master S&P 500 Index Series, one of the portfolios constituting Quantitative Master Series LLC (the “Master LLC”), as of December 31, 2011, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Master LLC’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Master LLC is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Master LLC’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2011, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Master S&P 500 Index Series of Quantitative Master Series LLC as of December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 27, 2012

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 31

Officers and Directors

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1
Ronald W. Forbes 55 East 52nd Street New York, NY 10055 1940	Co-Chairman of the Board and Director	Since 2007	Professor Emeritus of Finance, School of Business, State University of New York at Albany since 2000.	33 RICs consisting of 107 Portfolios	None
Rodney D. Johnson 55 East 52nd Street New York, NY 10055 1941	Co-Chairman of the Board and Director	Since 2007	President, Fairmount Capital Advisors, Inc. since 1987; Member of the Archdiocesan Investment Committee of the Archdiocese of Philadelphia since 2004; Director, The Committee of Seventy (civic) since 2006; Director, Fox Chase Cancer Center from 2004 to 2010.	33 RICs consisting of 107 Portfolios	None
David O. Beim 55 East 52nd Street New York, NY 10055 1940	Director	Since 2007	Professor of Professional Practice at the Columbia University Graduate School of Business since 1991; Trustee, Phillips Exeter Academy since 2002; Chairman, Wave Hill, Inc. (public garden and cultural center) from 1990 to 2006.	33 RICs consisting of 107 Portfolios	None
Dr. Matina S. Horner 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Executive Vice President of Teachers Insurance and Annuity Association and College Retirement Equities Fund from 1989 to 2003.	33 RICs consisting of 107 Portfolios	NSTAR (electric and gas utility)
Herbert I. London 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Professor Emeritus, New York University since 2005; John M. Olin Professor of Humanities, New York University from 1993 to 2005 and Professor thereof from 1980 to 2005; President, Hudson Institute (policy research organization) since 1997 and Trustee thereof since 1980; Chairman of the Board of Trustees for Grantham University since 2006; Director, InnoCentive, Inc. (strategic solutions company) since 2005; Director, Cerego, LLC (software development and design) since 2005; Director, Cybersettle (dispute resolution technology) since 2009.	33 RICs consisting of 107 Portfolios	AIMS Worldwide, Inc. (marketing)
Cynthia A. Montgomery 55 East 52nd Street New York, NY 10055 1952	Director	Since 2007	Professor, Harvard Business School since 1989; Director, McLean Hospital since 2005; Director, Harvard Business School Publishing from 2005 to 2010.	33 RICs consisting of 107 Portfolios	Newell Rubbermaid, Inc. (manufacturing)
Joseph P. Platt 55 East 52nd Street New York, NY 10055 1947	Director	Since 2007	Director, The West Penn Allegheny Health System (a not-for-profit health system) since 2008; Director, Jones and Brown (Canadian insurance broker) since 1998; General Partner, Thorn Partners, LP (private investment) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Partner, Amarna Corporation, LLC (private investment company) from 2002 to 2008.	33 RICs consisting of 107 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company)
Robert C. Robb, Jr. 55 East 52nd Street New York, NY 10055 1945	Director	Since 2007	Partner, Lewis, Eckert, Robb and Company (management and financial consulting firm) since 1981.	33 RICs consisting of 107 Portfolios	None
Toby Rosenblatt 55 East 52nd Street New York, NY 10055 1938	Director	Since 2007	President, Founders Investments Ltd. (private investments) since 1999; Director, College Access Foundation of California (philanthropic foundation) since 2009; Director, Forward Management, LLC since 2007; Director, A.P. Pharma, Inc. (specialty pharmaceuticals) from 1983 to 2011; Director, The James Irvine Foundation (philanthropic foundation) from 1998 to 2008.	33 RICs consisting of 107 Portfolios	None

32 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Officers and Directors (continued)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC		Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1 (concluded)
Kenneth L. Urish 55 East 52nd Street New York, NY 10055 1951	Director		Since 2007	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Chairman Elect of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001; Trustee, The Holy Family Foundation from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.	33 RICs consisting of 107 Portfolios	None
Frederick W. Winter 55 East 52nd Street New York, NY 10055 1945	Director		Since 2007	Professor and Dean Emeritus of the Joseph M. Katz School of Business, University of Pittsburgh since 2005 and Dean thereof from 1997 to 2005; Director, Alkon Corporation (pneumatics) since 1992; Director, Tippman Sports (recreation) since 2005; Director, Indotronix International (IT services) from 2004 to 2008.	33 RICs consisting of 107 Portfolios	None
	1	Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The Board has approved extensions in terms of Directors who turn 72 prior to December 31, 2013.
	2	Date shown is the earliest date a person has served for the Corporation/Master LLC covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows Directors as joining the Corporation’s/Master LLC’s board in 2007, each Director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: David O. Beim, 1998; Ronald W. Forbes, 1977; Dr. Matina S. Horner, 2004; Rodney D. Johnson, 1995; Herbert I. London, 1987; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Robert C. Robb, Jr., 1998; Toby Rosenblatt, 2005; Kenneth L. Urish, 1999; and Frederick W. Winter, 1999.
Interested Directors3
Paul L. Audet 55 East 52nd Street New York, NY 10055 1953	Director		Since 2011	Senior Managing Director, BlackRock and Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005.	159 RICs consisting of 286 Portfolios	None
Henry Gabbay 55 East 52nd Street New York, NY 10055 1947	Director		Since 2007	Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	159 RICs consisting of 286 Portfolios	None
	3	Mr. Audet is an “interested person,” as defined in the 1940 Act, of the Corporation/Master LLC based on his position with BlackRock and its affiliates. Mr. Gabbay is an “interested person” of the Corporation/Master LLC based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of the BlackRock registered closed-end funds and Directors of other BlackRock registered open-end funds. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 33

Officers and Directors (concluded)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC		Length of Time Served	Principal Occupation(s) During Past Five Years
Officers1
John M. Perlowski 55 East 52nd Street New York, NY 10055 1964	President and Chief Executive Officer		Since 2010	Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Administration since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.
Brendan Kyne 55 East 52nd Street New York, NY 10055 1977	Vice President		Since 2009	Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009; Vice President of BlackRock from 2005 to 2008.
Neal Andrews 55 East 52nd Street New York, NY 10055 1966	Chief Financial Officer		Since 2007	Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
Jay Fife 55 East 52nd Street New York, NY 10055 1970	Treasurer		Since 2007	Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
Brian Kindelan 55 East 52nd Street New York, NY 10055 1959	Chief Compliance Officer and Anti-Money Laundering Officer		Since 2007	Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005.
Ira P. Shapiro 55 East 52nd Street New York, NY 10055 1963	Secretary		Since 2010	Managing Director of BlackRock since 2009; Managing Director and Associate General Counsel of Barclays Global Investors from 2008 to 2009 and Principal thereof from 2004 to 2008.
	1	Officers of the Corporation/Master LLC serve at the pleasure of the Board.
	Further information about the Officers and Directors is available in the Corporation’s/Master LLC’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisor

BlackRock Investment Management, LLC

Princeton, NJ 08540

Custodian

State Street Bank and Trust Company

Boston, MA 02110

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Accounting Agent

State Street Bank and Trust Company

Boston, MA 02110

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Address of the Fund

100 Bellevue Parkway

Wilmington, DE 19809

Effective September 22, 2011, Richard S. Davis resigned as Director of the Corporation and the Master LLC, and Paul L. Audet became Director of the Corporation and the Master LLC.

34 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Additional Information

General Information

Electronic Delivery

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1) Access the BlackRock website at http://www.blackrock.com/edelivery

2) Select “eDelivery” under the “More Information” section

3) Log into your account

Householding

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. 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 call the Fund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Fund/Series file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s/Series’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330.The Fund’s/Series’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund/Series use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Fund/Series voted proxies relating to securities held in the Fund’s/Series’ portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 35

Additional Information (continued)

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

36 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

Additional Information (concluded)

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 non-public 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 non-public 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 websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public 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 non-affiliated 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 non-public 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 non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011 37

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds

BlackRock ACWI ex-US Index Fund

BlackRock All-Cap Energy & Resources Portfolio

BlackRock Asset Allocation Portfolio†

BlackRock Balanced Capital Fund†

BlackRock Basic Value Fund

BlackRock Capital Appreciation Fund

BlackRock China Fund

BlackRock Commodity Strategies Fund

BlackRock Emerging Markets Long/Short Equity Fund

BlackRock Energy & Resources Portfolio

BlackRock Equity Dividend Fund

BlackRock EuroFund

BlackRock Focus Growth Fund

BlackRock Global Allocation Fund†

BlackRock Global Dividend Income Portfolio

BlackRock Global Dynamic Equity Fund

BlackRock Global Emerging Markets Fund

BlackRock Global Opportunities Portfolio

BlackRock Global SmallCap Fund

BlackRock Health Sciences Opportunities Portfolio

BlackRock Index Equity Portfolio

BlackRock India Fund

BlackRock International Fund

BlackRock International Index Fund

BlackRock International Opportunities Portfolio

BlackRock Large Cap Core Fund

BlackRock Large Cap Core Plus Fund

BlackRock Large Cap Growth Fund

BlackRock Large Cap Value Fund

BlackRock Latin America Fund

BlackRock Mid-Cap Growth Equity Portfolio

BlackRock Mid-Cap Value Equity Portfolio

BlackRock Mid Cap Value Opportunities Fund

BlackRock Natural Resources Trust

BlackRock Pacific Fund

BlackRock Russell 1000 Index Fund

BlackRock Science & Technology Opportunities Portfolio

BlackRock Small Cap Growth Equity Portfolio

BlackRock Small Cap Growth Fund II

BlackRock Small Cap Index Fund

BlackRock S&P 500 Index Fund

BlackRock S&P 500 Stock Fund

BlackRock U.S. Opportunities Portfolio

BlackRock Value Opportunities Fund

BlackRock World Gold Fund

Fixed Income Funds

BlackRock Bond Index Fund

BlackRock Core Bond Portfolio

BlackRock Emerging Market Debt Portfolio

BlackRock Floating Rate Income Portfolio

BlackRock Global Long/Short Credit Fund

BlackRock GNMA Portfolio

BlackRock High Yield Bond Portfolio

BlackRock Inflation Protected Bond Portfolio

BlackRock International Bond Portfolio

BlackRock Long Duration Bond Portfolio

BlackRock Low Duration Bond Portfolio

BlackRock Multi-Asset Income Portfolio†

BlackRock Multi-Sector Bond Portfolio

BlackRock Strategic Income Opportunities Portfolio

BlackRock Total Return Fund

BlackRock US Government Bond Portfolio

BlackRock World Income Fund

US Mortgage Portfolio

Municipal Bond Funds

BlackRock California Municipal Bond Fund

BlackRock High Yield Municipal Fund

BlackRock Intermediate Municipal Fund

BlackRock National Municipal Fund

BlackRock New Jersey Municipal Bond Fund

BlackRock New York Municipal Bond Fund

BlackRock Pennsylvania Municipal Bond Fund

BlackRock Short-Term Municipal Fund

Target Risk & Target Date Funds†

BlackRock Prepared Portfolios

Conservative Prepared Portfolio

Moderate Prepared Portfolio

Growth Prepared Portfolio

Aggressive Growth Prepared Portfolio

BlackRock Lifecycle Prepared Portfolios

2015

2020

2025

2030

2035

2040

2045

2050

LifePath Portfolios
Retirement

2020

2025

2030

2035

2040

2045

2050

2055

LifePath Index Portfolios
Retirement

2020

2025

2030

2035

2040

2045

2050

2055

† Mixed asset fund.

BlackRock mutual funds are currently distributed by BlackRock Investments, LLC. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing.

38 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2011

This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

#Index 4-12/11-AR

December 31, 2011

Annual Report

BlackRock Small Cap Index Fund | of BlackRock Index Funds, Inc.

Not FDIC Insured § No Bank Guarantee § May Lose Value

Table of Contents

	Page
Dear Shareholder	3
Annual Report:
Fund Summary	4
About Fund Performance	6
Disclosure of Expenses	6
Fund Financial Statements:
Statement of Assets and Liabilities	7
Statement of Operations	8
Statements of Changes in Net Assets	9
Fund Financial Highlights	10
Fund Notes to Financial Statements	12
Fund Report of Independent Registered Public Accounting Firm	15
Important Tax Information	15
Series Portfolio Information	16
Series Financial Statements:
Schedule of Investments	17
Statement of Assets and Liabilities	38
Statement of Operations	39
Statements of Changes in Net Assets	40
Series Financial Highlights	40
Series Notes to Financial Statements	41
Series Report of Independent Registered Public Accounting Firm	45
Officers and Directors	46
Additional Information	49
A World-Class Mutual Fund Family	51

2 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Dear Shareholder

Investors endured a very difficult environment in 2011. Financial markets were extremely volatile as a number of high-profile global events drove frequent about-face changes in investor sentiment. As the year progressed, news flow increasingly influenced trading decisions, to the point where company fundamentals were largely ignored. In the end, lower-risk assets won the “risk on — risk off” trading tug-of-war that characterized 2011’s market activity.

Early in the year, political turmoil swept across the Middle East/North Africa region and prices of oil and other commodities soared. Natural disasters in Japan disrupted global supply chains and concerns mounted regarding US debt and deficit issues. Nevertheless, equities, commodities and high yield bonds outpaced the less risky asset classes as investors chose to focus on the continuing stream of strong corporate earnings and positive economic data.

Markets reversed sharply in May, however, when the heightened possibility of Greece defaulting on its debt rekindled fears about sovereign debt problems spreading across Europe. Concurrently, economic indicators signaled that the recovery had slowed in the United States and other developed nations. Confidence was further shaken by the prolonged debt ceiling debate in Washington, DC. On August 5th, Standard & Poor’s downgraded the US government’s credit rating and turmoil erupted in financial markets around the world. Extraordinary levels of volatility persisted in the months that followed as Greece teetered on the brink of default, debt problems escalated in Italy and Spain, and exposure to European sovereign bonds stressed banks globally. Late in the summer, economic data out of the United States and Europe grew increasingly bleak while China and other emerging economies began to show signs of slowing growth. By the end of the third quarter, equity markets had fallen nearly 20% from their April peak while safe-haven assets such as US Treasuries and gold had rallied to historical highs.

October brought enough positive economic data to assuage fears of a global double-dip recession. Additionally, after months of deliberation, European leaders began to show signs of progress toward stemming the region’s debt crisis. These encouraging developments brought investors back from the sidelines and risk assets rallied through the month. However, a lack of definitive details about Europe’s rescue plan soon raised doubts among investors and thwarted the rally at the end of October. The last two months of the year saw political instability in Greece, unsustainable yields on Italian bonds, and US policymakers bickering over budget issues. Global central bank actions and improving economic data energized investors, but confidence was easily tempered by sobering news flow that resurrected uncertainty about the ability of Europe’s leaders to ultimately contain the debt crisis.

Most equity markets failed to fully recover their late-summer losses, although US large cap stocks managed to finish the year with a marginal gain given their perceived safety and stronger US economic data. Conditions were worse overseas, and international markets experienced some significant downturns. Dividend-paying stocks performed relatively well as investors sought yield in the low interest rate environment. Fixed income securities benefited from declining yields and delivered positive returns for the year. US Treasury bonds outperformed other fixed income classes despite their quality rating downgrade, while municipal bonds also delivered superior results. Continued low short-term interest rates kept yields on money market securities near their all-time lows.

Many of the themes that caused uncertainty in 2011 are likely to persist well into 2012. While the investment landscape appears treacherous, BlackRock is working for you. We have a roadmap to show you the way.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC

“While the investment landscape appears treacherous, BlackRock is working for you. We have a roadmap to show you the way.”

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of December 31, 2011

	6-month			12-month
US large cap equities (S&P 500® Index)		(3.69	)%		2.11	%
US small cap equities (Russell 2000® Index)		(9.77	)		(4.18	)
International equities (MSCI Europe, Australasia, Far East Index)		(16.31	)		(12.14	)
Emerging market equities (MSCI Emerging Markets Index)		(19.13	)		(18.42	)
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)		0.02			0.10
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)		13.46			17.15
US investment grade bonds (Barclays Capital US Aggregate Bond Index)		4.98			7.84
Tax-exempt municipal bonds (S&P Municipal Bond Index)		5.78			10.62
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)		(0.02	)		4.96

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT
3

Fund Summary as of December 31, 2011 BlackRock Small Cap Index Fund

   Investment Objective

BlackRock Small Cap Index Fund’s (the “Fund”), a series of BlackRock Index Funds, Inc. (the “Corporation”), investment objective is to match the performance of the Russell 2000® Index (the “Russell 2000®”) as closely as possible before the deduction of Fund expenses.

   Portfolio Management Commentary

	How did the Fund perform?
•	For the 12 months ended December 31,2011,the Fund,through its investment in Master Small Cap Index Series (the “Series”) of Quantitative Master Series LLC (the “Master LLC”), underperformed the benchmark Russell 2000® Index. For the period beginning with its initial trading date of March 31, 2011 through December 31, 2011, the Fund’s Class K Shares returned (11.42)%, underperforming the benchmark index, which returned (11.22)%.
•	Returns for the Fund’s respective share classes differ from the benchmark index based on individual share-class expenses.
	Describe the market environment.
•	Early in the year, stocks moved unevenly higher despite political upheaval spreading across the Middle East/North Africa region and a sharp rise in oil and other commodity prices. March brought devastating natural disasters in Japan, resulting in global supply chain disruptions. But equity markets were remarkably resilient as the global economic recovery appeared to be on track and investors were gradually increasing their appetite for risk. After peaking in late April, equities were met with a sharp reversal when the heightened possibility of Greece defaulting on its debt rekindled fears about the potential impact of the sovereign debt crisis spreading in Europe. In the United States, a prolonged debt ceiling debate ultimately led to Standard & Poor’s decision to downgrade the US government’s credit rating in early August. This announcement spurred one of the most volatile periods in trading history. Stock markets across the world whip-sawed on hopes and fears driven by news flow. Equities swooned as debt problems in Europe spread to Italy and Spain, and global economic indicators grew increasingly bleak.
•	US stocks staged a strong rebound in October as the domestic labor market improved and corporate profits continued to beat analyst expectations. Encouraging news from Europe also contributed to the rally. After months of deliberation, European leaders agreed upon a new plan to reduce Greece’s debt burden, recapitalize the region’s banks and increase the size of the euro-zone bailout fund. However, a lack of definitive details about the rescue plan soon raised doubts among investors and thwarted the rally at the end of October. In November, political instability in Greece and Italy fueled uncertainty as to whether Europe’s leaders would be able to contain the crisis. In the United States, bickering lawmakers failed to reach an agreement on reducing the US budget deficit, further undermining investors’ confidence in policymakers on both sides of the Atlantic. Market volatility softened in December with the support of global central bank actions and continued improvement in economic data.
•	Small cap stocks, as represented by the Russell 2000® Index, fell 4.18% for the year. Given high market volatility and heightened uncertainty about economic growth, the more cyclically sensitive sectors were hurt the most. Materials (–12.22%) led the decline, followed by energy (–8.11%), and consumer discretionary (–7.13%). Defensive areas performed well, with utilities gaining 16.64% over the year, followed by consumer staples (+7.81%) and health care (+2.09%).
	Describe recent portfolio activity.
•	During the 12-month period, as changes were made to the composition of the Russell 2000® Index, the Series purchased and sold securities to maintain its objective of replicating the risks and return of the benchmark index.
	Describe portfolio positioning at period end.
•	The Series remains positioned to match the risk characteristics of its benchmark index, irrespective of the market’s future direction.

	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.
Derivative Financial Instruments

The Series may invest in various derivative financial instruments, including financial futures contracts as specified in Note 2 of the Series’ Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or equity risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset or illiquidity of the derivative financial instrument. The Series’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require the Series to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation the Series can realize on an investment, may result in lower dividends paid to shareholders or may cause the Series to hold an investment that it might otherwise sell. The Series’ investments in these instruments are discussed in detail in the Series’ Notes to Financial Statements.

4 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

   Total Return Based on a $10,000 Investment

1	Assuming transaction costs and other operating expenses, including investment advisory fees and administration fees, if any.
2	The Fund invests all of its assets in the Series of the Master LLC. The Series may invest in a statistically selected sample of the stocks included in the Russell 2000® Index and other types of financial instruments linked to the Russell 2000® Index.
3	This unmanaged index is comprised of approximately 2,000 smaller-capitalization common stocks from various industrial sectors.

   Performance Summary for the Period Ended December 31, 2011

	6-Month Total Returns			Average Annual Total Returns4
					1 Year		5 Years		10 Years
Institutional		(9.88	)%		(4.49	)%	(0.15	)%	5.19	%
Investor A		(9.99	)		(4.76	)	(0.41	)	4.92
Class K5		(9.84	)		(4.44	)	(0.10	)	5.24
Russell 2000® Index		(9.77	)		(4.18	)	0.15		5.62

4	Average annual total returns reflect reductions for service fees, if any. See “About Fund Performance” on page 6 for a detailed description of share classes, including any related fees, if any.
5	Class K commenced operations on March 31, 2011.
	Past performance is not indicative of future results.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011 5

About Fund Performance

•	Institutional 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 eligible investors. Prior to March 31, 2011, Class K Shares’ performance results are those of Institutional Shares restated to reflect Class K Shares’ fees.
•	Investor A Shares are not subject to any sales charge and bear no ongoing distribution fee. These shares are subject to an ongoing service fee of 0.25% per year.
	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/funds 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 page 5 assume reinvestment of all dividends and capital gain 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. Dividends paid to each class of shares will vary because of the different levels of service and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Fund’s administrator waived and/or reimbursed a portion of the Fund’s fee.Without such waiver and/or reimbursement, the Fund’s performance would have been lower.

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) expenses related to transactions, including exchange fees; and (b) operating expenses, including administration fees, service fees, including 12b-1 fees, and other Fund expenses. The expense example shown below (which is based on a hypothetical investment of $1,000 invested on July 1, 2011 and held through December 31, 2011) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The table provides 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 share class under the heading entitled “Expenses Paid During the Period.”

The table also provides information about hypothetical account values and hypothetical expenses based on the 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 this Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the table are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as sales charges or exchange fees, if any. Therefore, the hypothetical example is 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.

Expense Example
	Actual						Hypothetical2
	Beginning Account Value July 1, 2011		Ending Account Value December 31, 2011		Expenses Paid During the Period1		Beginning Account Value July 1, 2011		Ending Account Value December 31, 2011		Expenses Paid During the Period1		Annualized Expense Ratio
Institutional	$	1,000.00	$	900.40	$	1.44	$	1,000.00	$	1,023.71	$	1.53		0.30	%
Investor A	$	1,000.00	$	900.10	$	2.63	$	1,000.00	$	1,022.41	$	2.80		0.55	%
Class K	$	1,000.00	$	901.60	$	1.20	$	1,000.00	$	1,023.91	$	1.28		0.25	%

1	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 184/365 (to reflect the one-half year period shown). Because the Fund is a feeder fund, the expense table example reflects the expenses of both the Fund and the Series in which it invests. Expenses are net of waiver.
2	Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.

6 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Statement of Assets and Liabilities BlackRock Small Cap Index Fund

December 31, 2011
Assets
Investments at value — Master Small Cap Index Series (the “Series”) (cost — $86,415,344)	$	95,141,124
Withdrawals receivable from the Series		22,470,714
Capital shares sold receivable		42,235
Receivable from administrator		13,045
Prepaid expenses		3,452
Total assets		117,670,570
Liabilities
Capital shares redeemed payable		22,512,949
Service fees payable		9,490
Other accrued expenses payable		34,632
Total liabilities		22,557,071
Net Assets	$	95,113,499
Net Assets Consist of
Paid-in capital	$	101,968,003
Distributions in excess of net investment income		(29,319	)
Accumulated net realized loss allocated from the Series		(15,550,965	)
Net unrealized appreciation/depreciation allocated from the Series		8,725,780
Net Assets	$	95,113,499
Net Asset Value
Institutional — Based on net assets of $49,829,009 and 4,330,788 shares outstanding, 125 million shares authorized, $0.0001 par value	$	11.51
Investor A — Based on net assets of $45,262,645 and 3,933,310 shares outstanding, 125 million shares authorized, $0.0001 par value	$	11.51
Class K — Based on net assets of $21,845 and 1,898 shares outstanding, 125 million shares authorized, $0.0001 par value	$	11.51

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	7

Statement of Operations BlackRock Small Cap Index Fund

Year Ended December 31, 2011
Investment Income
Net investment income allocated from the Series:
Dividends — unaffiliated	$	1,596,485
Foreign taxes withheld		(1,052	)
Securities lending — affiliated		152,155
Dividends — affiliated		10,001
Expenses		(112,645	)
Fees waived		22,797
Total income		1,667,741
Expenses
Administration		354,703
Service — Investor A		120,021
Transfer agent — Institutional		42,534
Transfer agent — Investor A		34,704
Transfer agent — Class K		17
Printing		73,415
Professional		65,111
Registration		63,737
Officer		66
Miscellaneous		10,310
Total expenses		764,618
Less fees waived by administrator		(335,235	)
Less transfer agent fees waived and/or reimbursed — class specific		(30,791	)
Total expenses after fees waived and/or reimbursed		398,592
Net investment income		1,269,149
Realized and Unrealized Gain (Loss) Allocated from the Series
Net realized gain from investments, financial futures contracts and short positions		9,515,016
Net change in unrealized appreciation/depreciation on investments, financial futures contracts and short positions		(17,093,077	)
Total realized and unrealized loss		(7,578,061	)
Net Decrease in Net Assets Resulting from Operations	$	(6,308,912	)

See Notes to Financial Statements.
8	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Statements of Changes in Net Assets BlackRock Small Cap Index Fund

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2011			2010
Operations
Net investment income	$	1,269,149		$	701,254
Net realized gain		9,515,016			1,597,176
Net change in unrealized appreciation/depreciation		(17,093,077	)		22,605,830
Net increase (decrease) in net assets resulting from operations		(6,308,912	)		24,904,260
Dividends to Shareholders From
Net investment income:
Institutional		(898,403	)		(491,823	)
Investor A		(451,389	)		(221,254	)
Class K		(285	)		—
Decrease in net assets resulting from dividends to shareholders		(1,350,077	)		(713,077	)
Capital Share Transactions
Net increase (decrease) in net assets derived from capital share transactions		(15,925,751	)		418,291
Redemption Fee
Redemption fee		2,818			2,525
Net Assets
Total increase (decrease) in net assets		(23,581,922	)		24,611,999
Beginning of year		118,695,421			94,083,422
End of year	$	95,113,499		$	118,695,421
Undistributed (distributions in excess of) net investment income	$	(29,319	)	$	30,409

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	9

Financial Highlights BlackRock Small Cap Index Fund

	Institutional															Investor A
	Year Ended December 31,															Year Ended December 31,
	2011			2010			2009			2008			2007			2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of year	$	12.21		$	9.70		$	7.71		$	13.79		$	15.48		$	12.21		$	9.71		$	7.72		$	13.79		$	15.47
Net investment income1		0.14			0.08			0.07			0.14			0.20			0.11			0.06			0.05			0.11			0.15
Net realized and unrealized gain (loss)2		(0.69	)		2.51			1.98			(4.86	)		(0.50	)		(0.70	)		2.50			1.98			(4.85	)		(0.48	)
Net increase (decrease) from
investment operations		(0.55	)		2.59			2.05			(4.72	)		(0.30	)		(0.59	)		2.56			2.03			(4.74	)		(0.33	)
Dividends and distributions from:
Net investment income		(0.15	)		(0.08	)		(0.06	)		(0.15	)		(0.20	)		(0.11	)		(0.06	)		(0.04	)		(0.12	)		(0.16	)
Net realized gain		—			—			—			(1.09	)		(1.19	)		—			—			—			(1.09	)		(1.19	)
Tax return of capital		—			—			—			(0.12	)		—			—			—			—			(0.12	)		—
Total dividends and distributions		(0.15	)		(0.08	)		(0.06	)		(1.36	)		(1.39	)		(0.11	)		(0.06	)		(0.04	)		(1.33	)		(1.35	)
Net asset value, end of year	$	11.51		$	12.21		$	9.70		$	7.71		$	13.79		$	11.51		$	12.21		$	9.71		$	7.72		$	13.79
Total Investment Return3
Based on net asset value		(4.49	)%		26.77	%		26.67	%		(34.01	)%		(1.91	)%		(4.76	)%		26.35	%		26.36	%		(34.19	)%		(2.12	)%
Ratios to Average Net Assets4
Total expenses		0.61	%5		0.57	%		0.56	%		0.53	%		0.48	%		0.88	%5		0.80	%		0.82	%		0.80	%		0.73	%
Total expenses after fees waived and/or reimbursed		0.30	%5		0.52	%		0.56	%		0.52	%		0.48	%		0.55	%5		0.78	%		0.82	%		0.79	%		0.73	%
Net investment income		1.14	%5		0.80	%		0.85	%		1.19	%		1.23	%		0.88	%5		0.53	%		0.59	%		0.91	%		0.98	%
Supplemental Data
Net assets, end of year (000)	$	49,829		$	71,443		$	55,744		$	46,285		$	66,085		$	45,263		$	47,252		$	38,340		$	29,787		$	47,605
Portfolio turnover of the Series		31	%		42	%		43	%		42	%		26	%		31	%		42	%		43	%		42	%		26	%

1	Based on average shares outstanding.
2	Includes a redemption fee, which is less than $0.01 per share.
3	Where applicable, total investment returns include the reinvestment of dividends and distributions.
4	Includes the Fund’s share of the Series’ allocated net expenses and/or net investment income.
5	Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

See Notes to Financial Statements.
10	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Financial Highlights (concluded) BlackRock Small Cap Index Fund

	Class K
	Period March 31, 20111 through December 31, 2011
Per Share Operating Performance
Net asset value, beginning of period	$	13.17
Net investment income2		0.11
Net realized and unrealized loss		(1.62	)
Net decrease from investment operations		(1.51	)
Dividends from net investment income		(0.15	)
Net asset value, end of period	$	11.51
Total Investment Return3
Based on net asset value		(11.42	)%7
Ratios to Average Net Assets4
Total expenses		0.68	%5,6
Total expenses after fees waived and/or reimbursed		0.25	%5,6
Net investment income		1.28	%5,6
Supplemental Data
Net assets, end of period (000)	$	22
Portfolio turnover of the Series		31	%

1	Commencement of operations.
2	Based on average shares outstanding.
3	Where applicable, total investment returns include the reinvestment of dividends and distributions.
4	Includes the Fund’s share of the Series’ allocated net expenses and/or net investment income.
5	Annualized.
6	Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.
7	Aggregate total investment return.

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	11

Notes to Financial Statements BlackRock Small Cap Index Fund

1. Organization and Significant Accounting Policies:

BlackRock Small Cap Index Fund (the “Fund”), a series of BlackRock Index Funds, Inc. (“the Corporation”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Corporation is organized as a Maryland corporation. The Fund seeks to achieve its investment objective by investing all of its assets in Master Small Cap Index Series (the “Series”), a series of Quantitative Master Series LLC (the “Master LLC”), which has the same investment objective and strategies as the Fund. The value of the Fund’s investment in the Series reflects the Fund’s proportionate interest in the net assets of the Series. The performance of the Fund is directly affected by the performance of the Series. The percentage of the Series owned by the Fund at December 31, 2011 was 18%. The Fund’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Fund offers multiple classes of shares. Institutional Shares and Class K Shares are sold without a sales charge and only to certain eligible investors. Investor A Shares are generally sold without a front-end sales charge. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Investor A Shares bear certain expenses related to the shareholder servicing of such shares.

The following is a summary of significant accounting policies followed by the Fund:

Valuation: US GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund’s policy is to fair value its financial instruments at market value. The Fund records its investment in the Series at fair value based on the Fund’s proportionate interest in the net assets of the Series. Valuation of securities held by the Series is discussed in Note 1 of the Series’ Notes to Financial Statements, which are included elsewhere in this report.

Investment Transactions and Investment Income: For financial reporting purposes, contributions to and withdrawals from the Series are accounted on a trade date basis. The Fund records daily its proportionate share of the Series’ income, expenses and realized and unrealized gains and losses. Realized and unrealized gains and losses are adjusted for utilizing partnership tax allocation rules. In addition, the Fund accrues its own expenses.

Dividends and Distributions: Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP.

Income Taxes: It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

The Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s US federal tax returns remains open for each of the four years ended December 31, 2011. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standard: In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Fund’s financial statement disclosures.

In December 2011, the FASB issued guidance that will enhance current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting agreements or similar agreements and will require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the Statement of Assets and Liabilities. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Fund’s financial statement disclosures.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or class. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. Other expenses of the Fund are allocated daily to each class based on its relative net assets.

The Series has an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

12 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Notes to Financial Statements (continued) BlackRock Small Cap Index Fund

2. Administration Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but Barclays is not.

The Corporation, on behalf of the Fund, entered into an Administration Agreement with BlackRock Advisors, LLC (the “Administrator”), an indirect, wholly owned subsidiary of BlackRock, to provide administrative services (other than investment advice and related portfolio activities). For such services, the Fund pays the Administrator a monthly fee at an annual rate of 0.29% of the average daily value of the Fund’s net assets. The Fund does not pay an investment advisory fee or investment management fee.

The Administrator contractually agreed to waive and/or reimburse fees or expenses, excluding interest expense, dividend expense, acquired fund fees and expenses and certain other fund expenses in order to limit total annual Fund operating expenses as a percentage of average daily net assets to 0.30% for Institutional Shares, 0.55% for Investor A Shares and 0.25% for Class K Shares until May 1, 2012. The Administrator has agreed not to reduce or discontinue this contractual waiver or reimbursement unless approved by the Board of Directors, including a majority of the Independent Directors.

As a result of these agreements, the Administrator waived and/or reimbursed the following amounts, which are shown as transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations:

Institutional	$	14,243
Investor A	$	16,531
Class K	$	17

In addition, the Administrator waived $335,235 which is shown as fees waived by administrator in the Statement of Operations.

The Corporation, on behalf of the Fund, entered into a Distribution Agreement and Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Administrator. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service fees with respect to its Investor A Shares. The fees are accrued daily and paid monthly at the annual rate of 0.25% based upon the average daily net assets attributable to Investor A Shares.

Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder servicing services to the Fund. The ongoing service fee compensates BRIL and each broker-dealer for providing shareholder servicing to Investor A shareholders.

The Administrator maintains a call center, which is responsible for providing certain shareholder services to the Fund, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares.

For the year ended December 31, 2011, the Fund reimbursed the Administrator the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:

Institutional	$	372
Investor A	$	1,044

Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, record-keeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended December 31, 2011, the Fund paid the following to affiliates in return for these services, which is included in transfer agent in the Statement of Operations:

Institutional	$	32
Investor A	$	271

Certain officers and/or directors of the Corporation are officers and/or directors of BlackRock or its affiliates. The Fund reimburses the Administrator for compensation paid to the Corporation’s Chief Compliance Officer.

3. Income Tax Information:

US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of December 31, 2011 attributable to foreign currency transactions, the reclassification of distributions and the sale of stock of passive foreign investment companies were reclassified to the following accounts:

Paid-in capital	$	(13,431	)
Distributions in excess of net investment income	$	21,200
Accumulated net realized loss	$	(7,769	)

The tax character of distributions paid during the fiscal years ended December 31, 2011 and December 31, 2010 was as follows:

		12/31/11		12/31/10
Distributions paid from:
Ordinary income	$	1,350,077	$	713,077

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011 13

Notes to Financial Statements (concluded) BlackRock Small Cap Index Fund

As of December 31, 2011, the tax components of accumulated net losses were as follows:

Capital loss carryforwards	$	(13,583,281	)
Net unrealized gains1		6,729,099
Qualified late-year losses2		(322	)
Total	$	(6,854,504	)

1

The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the treatment of certain security lending transactions, the realization for tax purposes of unrealized gains/losses on certain futures contracts and other temporary differences.

2

The Fund has elected to defer certain late-year losses and recognize such losses in the year ending December 31, 2012.

As of December 31, 2011, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration date as follows:

Expires December 31,
2017	$	13,583,281

4. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Year Ended December 31, 2011						Year Ended December 31, 2010
	Shares			Amount			Shares			Amount
Institutional
Shares sold		2,230,820		$	27,256,806			2,098,681		$	22,240,658
Shares issued to shareholders in reinvestment of dividends		74,998			854,792			39,323			469,746
Shares redeemed		(3,827,916	)		(45,027,943	)		(2,028,999	)		(21,560,365	)
Net increase (decrease)		(1,522,098	)	$	(16,916,345	)		109,005		$	1,150,039
Investor A
Shares sold		920,917		$	11,298,590			747,472		$	7,965,898
Shares issued to shareholders in reinvestment of dividends		37,402			414,562			16,979			201,821
Shares redeemed		(895,970	)		(10,747,558	)		(842,665	)		(8,899,467	)
Net increase (decrease)		62,349		$	965,594			(78,214	)	$	(731,748	)
Class K1
Shares sold		1,898		$	25,000			—			—
Shares redeemed		—			—			—			—
Net increase		1,898		$	25,000			—			—

¹ For the period March 31, 2011 (commencement of operations) to December 31, 2011.

Prior to April 1, 2011, there was a 2% redemption fee on shares redeemed or exchanged that have been held 30 days or less. The redemption fees were collected and retained by the Fund for the benefit of the remaining shareholders. The redemption fees were recorded as a credit to paid-in capital. Effective April 1, 2011, the redemption fee was terminated and is no longer charged by the Fund.

5. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

14 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Report of Independent Registered Public Accounting Firm BlackRock Small Cap Index Fund

To the Shareholders of BlackRock Small Cap Index Fund and Board of Directors of BlackRock Index Funds, Inc.:

We have audited the accompanying statement of assets and liabilities of BlackRock Small Cap Index Fund, one of the series constituting BlackRock Index Funds, Inc. (the “Fund”), as of December 31, 2011, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Small Cap Index Fund, one of the series constituting BlackRock Index Funds, Inc. as of December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Boston, Massachusetts
February 22, 2012

Important Tax Information (Unaudited)

The following information is provided with respect to the ordinary income distributions paid by the Fund for the taxable year ended December 31, 2011.

	Payable Date		Percentage
Qualified Dividend Income for Individuals1		7/22/11		100.00	%
		12/15/11		84.79	%
Dividends Qualifying for the Dividend Received Deduction for Corporations1		7/22/11		100.00	%
		12/15/11		83.22	%
1        The Fund hereby designates the percentage indicated or the maximum amount allowable by law.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011 15

Portfolio Information Master Small Cap Index Series

As of December 31, 2011
Ten Largest Holdings	Percent of Long-Term Investments
HealthSpring, Inc.		0.3	%
Netlogic Microsystems, Inc.		0.3
SuccessFactors, Inc.		0.3
Clean Harbors, Inc.		0.3
World Fuel Services Corp.		0.3
Jack Henry & Associates, Inc.		0.3
American Campus Communities, Inc.		0.3
Salix Pharmaceuticals Ltd.		0.3
BioMed Realty Trust, Inc.		0.3
Onyx Pharmaceuticals, Inc.		0.3
Sector Allocations	Percent of Long-Term Investments
Energy		22	%
Information Technology		16
Industrials		16
Consumer Discretionary		13
Health Care		13
Financials		7
Materials		4
Utilities		4
Consumer Staples		4
Telecommunication Services		1

For Series compliance purposes, the Series’ sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes, and/or as defined by Series management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

16 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Schedule of Investments December 31, 2011	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Advertising Agencies — 0.6%
Arbitron, Inc.		12,861	$	442,547
Constant Contact, Inc. (a)		13,957		323,942
Digital Generation, Inc. (a)		13,033		155,353
Harte-Hanks, Inc.		21,080		191,617
Marchex, Inc., Class B		10,143		63,394
MDC Partners, Inc.		11,888		160,726
National CineMedia, Inc.		26,169		324,496
QuinStreet, Inc. (a)(b)		13,057		122,213
ReachLocal, Inc. (a)		4,991		30,844
Travelzoo, Inc. (a)(b)		2,584		63,515
Valassis Communications, Inc. (a)		21,211		407,888
ValueClick, Inc. (a)		37,224		606,379
Viad Corp.		9,664		168,927
				3,061,841
Aerospace — 1.6%
AAR Corp.		18,838		361,124
AeroVironment, Inc. (a)		7,999		251,729
Astronics Corp. (a)		4,865		174,216
Ceradyne, Inc. (a)		11,811		316,299
Cubic Corp.		7,488		326,402
Curtiss-Wright Corp.		21,984		776,695
Ducommun, Inc.		4,790		61,072
Esterline Technologies Corp. (a)		14,432		807,759
GenCorp, Inc. (a)		27,859		148,210
Heico Corp.		19,762		1,155,682
Kaman Corp., Class A		12,460		340,407
Kratos Defense & Security Solutions, Inc. (a)		15,692		93,681
LMI Aerospace, Inc. (a)		4,348		76,307
Moog, Inc., Class A (a)		21,508		944,846
Orbital Sciences Corp. (a)		27,701		402,495
Teledyne Technologies, Inc. (a)		17,395		954,116
Triumph Group, Inc.		17,806		1,040,761
				8,231,801
Agriculture, Fishing & Ranching — 0.4%
Alico, Inc.		1,685		32,638
The Andersons, Inc.		8,811		384,688
Cadiz, Inc. (a)		5,584		53,774
Cal-Maine Foods, Inc.		6,723		245,860
Calavo Growers, Inc.		5,636		144,733
Fresh Del Monte Produce, Inc.		17,282		432,223
Limoneira Co.		3,633		61,434
Pilgrims Pride Corp. (a)		24,058		138,574
Sanderson Farms, Inc.		10,477		525,212
Seaboard Corp.		148		301,328
				2,320,464
Air Transport — 0.9%
Air Transport Services Group, Inc. (a)		25,588		120,775
Alaska Air Group, Inc. (a)		16,989		1,275,704
Allegiant Travel Co. (a)		7,037		375,354
Atlas Air Worldwide Holdings, Inc. (a)		12,450		478,454
Bristow Group, Inc.		17,180		814,160
Hawaiian Holdings, Inc. (a)		24,139		140,006
JetBlue Airways Corp. (a)		116,995		608,374
PHI, Inc. (a)(b)		6,178		153,523
Republic Airways Holdings, Inc. (a)		22,894		78,526
SkyWest, Inc.		25,174		316,941
Spirit Airlines, Inc. (a)		7,451		116,236
US Airways Group, Inc. (a)		76,869		389,726
				4,867,779

Common Stocks	Shares		Value
Alternative Energy — 0.1%
Ameresco, Inc. (a)		8,379	$	114,960
Amyris, Inc. (a)		8,356		96,428
EnerNOC, Inc. (a)		11,010		119,679
Gevo, Inc. (a)		3,174		19,965
Green Plains Renewable Energy, Inc. (a)		8,820		86,083
Rex American Resources Corp. (a)		2,909		64,318
Solazyme, Inc. (a)		5,350		63,665
Syntroleum Corp. (a)		40,907		39,271
USEC, Inc. (a)		55,202		62,930
				667,299
Aluminum — 0.1%
Century Aluminum Co. (a)(b)		24,481		208,333
Kaiser Aluminum Corp.		7,704		353,460
Noranda Aluminum Holding Corp.		10,818		89,248
				651,041
Asset Management & Custodian — 0.9%
Apollo Investment Corp.		93,077		599,416
Arlington Asset Investment Corp.		3,065		65,376
Artio Global Investors, Inc.		14,900		72,712
Calamos Asset Management, Inc., Class A		9,041		113,103
Capital Southwest Corp.		1,379		112,457
CIFC Corp. (a)		5,795		31,293
Cohen & Steers, Inc. (b)		8,435		243,771
Cowen Group, Inc., Class A (a)		31,390		81,300
Diamond Hill Investments Group, Inc.		1,201		88,850
Epoch Holding Corp.		7,035		156,388
Fifth Street Finance Corp.		34,386		329,074
Financial Engines, Inc. (a)		18,161		405,535
GAMCO Investors, Inc., Class A		3,210		139,603
Golub Capital BDC, Inc.		4,768		73,904
Harris & Harris Group, Inc. (a)		14,393		49,800
JMP Group, Inc.		7,041		50,343
Kohlberg Capital Corp.		8,986		56,702
Manning & Napier, Inc. (a)		6,217		77,650
MCG Capital Corp.		36,848		147,024
Medley Capital Corp.		5,182		53,893
MVC Capital, Inc.		11,427		132,439
National Financial Partners Corp. (a)		19,642		265,560
New Mountain Finance Corp.		3,300		44,253
NGP Capital Resources Co.		10,343		74,366
Oppenheimer Holdings, Inc.		4,915		79,132
Pzena Investment Management, Inc., Class A		4,481		19,403
Solar Capital Ltd.		17,315		382,488
Solar Senior Capital Ltd.		3,605		56,779
THL Credit, Inc.		4,417		53,932
TICC Capital Corp.		15,439		133,547
Virtus Investment Partners, Inc. (a)		2,596		197,322
Westwood Holdings Group, Inc.		2,973		108,663
				4,496,078
Auto Parts — 0.6%
American Axle & Manufacturing Holdings, Inc. (a)		31,624		312,761
Amerigon, Inc. (a)		10,517		149,972
Dana Holding Corp. (a)		69,306		842,068
Dorman Products, Inc. (a)		5,112		188,786
Exide Technologies (a)		36,702		96,526
Fuel Systems Solutions, Inc. (a)		7,893		130,156
Meritor, Inc. (a)		44,831		238,501
Motorcar Parts of America, Inc. (a)		5,939		44,543
Standard Motor Products, Inc.		9,318		186,826
Stoneridge, Inc. (a)		12,293		103,630

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	17

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Auto Parts (concluded)
Superior Industries International, Inc.		11,085	$	183,346
Tenneco, Inc. (a)		28,636		852,780
Tower International, Inc. (a)		2,846		30,566
U.S. Auto Parts Network, Inc. (a)		7,363		32,176
				3,392,637
Auto Services — 0.1%
Cooper Tire & Rubber Co.		29,448		412,567
Back Office Support, HR & Consulting — 1.8%
The Advisory Board Co. (a)		7,499		556,501
Angie’s List, Inc. (a)		5,057		81,418
Barrett Business Services, Inc.		3,641		72,674
CBIZ, Inc. (a)		18,554		113,365
CDI Corp.		6,205		85,691
Compass Diversified Holdings		19,217		238,099
Convergys Corp. (a)		49,854		636,636
Corporate Executive Board Co.		16,369		623,659
CoStar Group, Inc. (a)(b)		11,974		799,025
CRA International, Inc. (a)		5,046		100,113
Dice Holdings, Inc. (a)		23,039		190,993
ExlService Holdings, Inc. (a)		7,650		171,130
Forrester Research, Inc. (a)		6,958		236,155
FTI Consulting, Inc. (a)(b)		19,882		843,394
GP Strategies Corp. (a)		7,057		95,128
The Hackett Group, Inc. (a)		15,070		56,362
Heidrick & Struggles International, Inc.		8,447		181,948
Hudson Highland Group, Inc. (a)		15,667		75,045
Huron Consulting Group, Inc. (a)(b)		10,499		406,731
ICF International, Inc. (a)(b)		9,308		230,652
Insperity, Inc.		10,875		275,681
Kelly Services, Inc., Class A		12,634		172,833
Kforce, Inc. (a)		14,105		173,915
Korn/Ferry International (a)		22,290		380,267
Liquidity Services, Inc. (a)		8,965		330,808
LoopNet, Inc. (a)		7,773		142,090
MAXIMUS, Inc.		16,423		679,091
Navigant Consulting, Inc. (a)		24,447		278,940
On Assignment, Inc. (a)		17,556		196,276
PRGX Global, Inc. (a)		9,030		53,729
Resources Connection, Inc.		22,045		233,457
RPX Corp. (a)		4,907		62,074
ServiceSource International, Inc. (a)		4,982		78,168
Stream Global Services, Inc. (a)		4,386		14,518
SYKES Enterprises, Inc. (a)		18,812		294,596
TeleTech Holdings, Inc. (a)		12,042		195,080
TrueBlue, Inc. (a)		19,035		264,206
				9,620,448
Banks: Diversified — 6.3%
1st Source Corp.		7,354		186,277
1st United Bancorp, Inc. (a)		13,212		73,327
Alliance Financial Corp.		2,330		71,950
Ameris Bancorp (a)		11,398		117,171
Ames National Corp.		4,133		80,594
Arrow Financial Corp.		4,961		116,286
Bancfirst Corp.		3,306		124,107
Banco Latinoamericana De Comercio Exterior SA		13,331		213,963
Bancorp Rhode Island, Inc.		1,873		82,531
The Bancorp, Inc. (a)		14,102		101,957
BancorpSouth, Inc.		39,816		438,772
Bank of Kentucky Financial Corp.		2,848		57,102

Common Stocks	Shares		Value
Banks: Diversified (continued)
Bank of Marin Bancorp	2,601	$	97,772
Bank of the Ozarks, Inc.	13,389		396,716
Banner Corp.	7,916		135,759
BBCN Bancorp, Inc. (a)	35,325		333,821
Boston Private Financial Holdings, Inc.	36,710		291,477
Bridge Bancorp, Inc.	3,392		67,501
Bridge Capital Holdings (a)	4,508		46,883
Bryn Mawr Bank Corp.	5,291		103,122
Camden National Corp.	3,737		121,826
Cape Bancorp, Inc. (a)	5,423		42,571
Capital Bank Corp. (a)	6,327		12,717
Capital City Bank Group, Inc.	5,673		54,177
Cardinal Financial Corp.	13,926		149,565
Cascade Bancorp (a)	3,435		15,045
Cathay General Bancorp	37,395		558,307
Center Bancorp, Inc.	5,927		57,907
Centerstate Banks, Inc.	14,491		95,930
Central Pacific Financial Corp. (a)	7,237		93,502
Century Bancorp, Inc., Class A	1,675		47,302
Chemical Financial Corp.	13,206		281,552
Citizens & Northern Corp.	5,901		108,991
City Holding Co.	7,337		248,651
CNB Financial Corp.	6,085		96,021
CoBiz Financial, Inc.	15,809		91,218
Columbia Banking System, Inc.	18,827		362,796
Community Bank System, Inc.	17,552		487,946
Community Trust Bancorp, Inc.	6,708		197,349
CVB Financial Corp.	42,651		427,790
Eagle Bancorp, Inc. (a)	8,081		117,498
Encore Bancshares, Inc. (a)	4,094		55,351
Enterprise Bancorp, Inc.	2,804		40,097
Enterprise Financial Services Corp.	7,656		113,309
F.N.B. Corp.	60,515		684,425
Financial Institutions, Inc.	6,687		107,928
First Bancorp, Inc.	4,404		67,690
First Bancorp, North Carolina	7,340		81,841
First Busey Corp.	37,217		186,085
First Commonwealth Financial Corp.	50,187		263,984
First Community Bancshares, Inc.	7,710		96,221
First Connecticut Bancorp, Inc.	8,692		113,083
First Financial Bancorp	27,804		462,659
First Financial Bankshares, Inc. (b)	15,022		502,185
First Financial Corp.	5,388		179,313
First Interstate Bancsystem, Inc.	7,621		99,302
First Merchants Corp.	12,313		104,291
First Midwest Bancorp, Inc.	35,511		359,726
The First of Long Island Corp.	3,762		99,016
FirstMerit Corp.	52,016		787,002
German American Bancorp, Inc.	6,154		111,941
Glacier Bancorp, Inc.	34,338		413,086
Hampton Roads Bankshares, Inc. (a)	5,285		14,481
Hancock Holding Co.	36,287		1,160,095
Hanmi Financial Corp. (a)	15,050		111,370
Heartland Financial USA, Inc.	6,487		99,511
Heritage Commerce Corp. (a)	10,305		48,846
Home Bancshares, Inc.	10,725		277,885
Hudson Valley Holding Corp.	7,536		159,914
IBERIABANK Corp.	14,049		692,616
Independent Bank Corp./MA	10,267		280,186
International Bancshares Corp.	25,322		464,279
Investors Bancorp, Inc. (a)	21,983		296,331
Lakeland Bancorp, Inc.	10,583		91,225
Lakeland Financial Corp.	7,812		202,096

See Notes to Financial Statements.
18	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Banks: Diversified (continued)
MainSource Financial Group, Inc.		9,641	$	85,130
MB Financial, Inc.		25,891		442,736
Merchants Bancshares, Inc.		2,398		70,022
Meridian Interstate Bancorp, Inc. (a)		4,122		51,319
Metro Bancorp, Inc. (a)		6,710		56,230
Midsouth Bancorp, Inc.		3,863		50,258
National Bankshares, Inc.		3,448		96,268
National Penn Bancshares, Inc.		58,859		496,770
NBT Bancorp, Inc.		16,528		365,765
Old National Bancorp		45,135		525,823
Oriental Financial Group, Inc.		21,599		261,564
Orrstown Financial Service, Inc.		3,709		30,599
Pacific Capital Bancorp NA (a)		2,041		57,638
Pacific Continental Corp.		8,979		79,464
PacWest Bancorp		14,437		273,581
Park National Corp.		6,182		402,201
Park Sterling Corp. (a)		15,426		62,938
Penns Woods Bancorp, Inc.		1,904		73,837
Peoples Bancorp, Inc.		5,152		76,301
Pinnacle Financial Partners, Inc. (a)		16,249		262,421
PrivateBancorp, Inc.		28,584		313,852
Prosperity Bancshares, Inc.		22,302		899,886
Provident Financial Services, Inc.		28,798		385,605
Renasant Corp.		12,098		181,470
Republic Bancorp, Inc., Class A		4,797		109,851
Rockville Financial, Inc.		14,124		146,325
Roma Financial Corp.		3,866		38,041
S&T Bancorp, Inc.		13,479		263,514
Sandy Spring Bancorp, Inc.		11,533		202,404
SCBT Financial Corp.		6,728		195,179
Seacoast Banking Corp. of Florida (a)		33,522		50,953
Sierra Bancorp		5,988		52,694
Signature Bank (a)(b)		21,865		1,311,681
Simmons First National Corp., Class A		8,348		226,982
Southside Bancshares, Inc.		7,890		170,897
Southwest Bancorp, Inc. (a)		9,409		56,078
State Bancorp, Inc.		7,391		90,170
State Bank Financial Corp. (a)		15,081		227,874
StellarOne Corp.		11,084		126,136
Sterling Bancorp		15,049		130,023
Sterling Financial Corp. (a)		12,809		213,910
Suffolk Bancorp (a)		4,831		52,127
Sun Bancorp, Inc. (a)		20,014		48,434
Susquehanna Bancshares, Inc.		74,447		623,866
SVB Financial Group (a)		20,359		970,921
SY Bancorp, Inc.		5,896		121,045
Taylor Capital Group, Inc. (a)		6,124		59,525
Texas Capital Bancshares, Inc. (a)		17,711		542,134
Tompkins Trustco, Inc.		3,920		150,959
Tower Bancorp, Inc.		5,043		143,927
Towne Bank (b)		11,744		143,747
Trico Bancshares		6,893		98,018
TrustCo Bank Corp. NY		44,783		251,233
Trustmark Corp.		30,495		740,724
UMB Financial Corp.		15,282		569,255
Umpqua Holdings Corp.		54,520		675,503
Union First Market Bankshares Corp.		9,809		130,362
United Bankshares, Inc.		10,792		305,090
United Community Banks, Inc. (a)		19,865		138,856
Univest Corp. of Pennsylvania		8,218		120,312
Virginia Commerce Bancorp (a)		11,263		87,063

Common Stocks	Shares		Value
Banks: Diversified (concluded)
Washington Banking Co.		7,434	$	88,539
Washington Trust Bancorp, Inc.		6,889		164,372
Webster Financial Corp.		34,235		698,052
WesBanco, Inc.		11,135		216,798
West Bancorp., Inc.		7,601		72,818
West Coast Bancorp (a)		5,344		83,366
Westamerica Bancorp.		13,793		605,513
Western Alliance Bancorp (a)(b)		33,174		206,674
Wilshire Bancorp, Inc. (a)		29,027		105,368
Wintrust Financial Corp.		16,620		466,191
				33,528,301
Banks: Savings, Thrift & Mortgage Lending — 1.0%
Apollo Residential Mortgage, Inc.		4,861		74,179
Astoria Financial Corp.		41,394		351,435
Bank Mutual Corp.		22,470		71,455
BankFinancial Corp.		10,632		58,689
Beneficial Mutual Bancorp, Inc. (a)(b)		15,917		133,066
Berkshire Hills Bancorp, Inc.		9,944		220,657
BofI Holding, Inc. (a)		4,297		69,826
Brookline Bancorp, Inc.		28,293		238,793
Charter Financial Corp.		3,276		30,336
Clifton Savings Bancorp, Inc.		4,248		39,421
Dime Community Bancshares, Inc.		14,897		187,702
Doral Financial Corp. (a)		64,583		61,741
ESB Financial Corp.		6,028		84,814
ESSA Bancorp, Inc.		5,166		54,088
First Defiance Financial Corp.		4,613		67,304
First Financial Holdings, Inc.		7,961		71,092
First Pactrust Bancorp, Inc.		5,032		51,578
Flagstar BanCorp., Inc. (a)		56,611		28,589
Flushing Financial Corp.		15,062		190,233
Fox Chase BanCorp., Inc.		6,530		82,474
Franklin Financial Corp. (a)		6,569		77,777
Great Southern Bancorp, Inc.		4,928		116,252
Heritage Financial Corp.		7,429		93,308
Home Federal Bancorp, Inc.		8,025		83,460
Kearny Financial Corp.		6,555		62,273
Northfield Bancorp, Inc.		8,225		116,466
Northwest Bancshares, Inc.		46,340		576,470
OceanFirst Financial Corp.		7,093		92,706
Ocwen Financial Corp. (a)		45,602		660,317
OmniAmerican Bancorp, Inc. (a)		5,659		88,846
Oritani Financial Corp.		21,772		278,028
Provident New York Bancorp		18,444		122,468
Territorial BanCorp., Inc.		5,258		103,845
United Financial Bancorp, Inc.		7,725		124,295
ViewPoint Financial Group		16,550		215,315
Westfield Financial, Inc.		13,531		99,588
WSFS Financial Corp.		3,029		108,923
				5,187,809
Beverage: Brewers & Distillers — 0.1%
Boston Beer Co., Inc., Class A (a)(b)		3,882		421,430
Central European Distribution Corp. (a)		34,442		150,684
Craft Brewers Alliance, Inc. (a)		4,934		29,702
				601,816
Beverage: Soft Drinks — 0.2%
Coca-Cola Bottling Co. Consolidated		2,141		125,355
Farmer Bros. Co.		3,056		23,348
Heckmann Corp. (a)		47,562		316,287

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	19

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Beverage: Soft Drinks (concluded)
National Beverage Corp.		5,489	$	88,208
Peet’s Coffee & Tea, Inc. (a)		6,073		380,656
Primo Water Corp. (a)		7,266		22,089
				955,943
Biotechnology — 3.7%
Accelrys, Inc. (a)		26,249		176,393
Acorda Therapeutics, Inc. (a)		18,687		445,498
Aegerion Pharmaceuticals, Inc. (a)		4,226		70,743
Affymax, Inc. (a)		16,675		110,222
Albany Molecular Research, Inc. (a)		9,593		28,107
Alimera Sciences, Inc. (a)		5,767		7,209
Alkermes Plc (a)(b)		45,193		784,550
Allos Therapeutics, Inc. (a)		38,324		54,420
Alnylam Pharmaceuticals, Inc. (a)		17,488		142,527
AMAG Pharmaceuticals, Inc. (a)		9,994		188,987
Amicus Therapeutics, Inc. (a)		8,128		27,960
Anthera Pharmaceuticals, Inc. (a)		10,448		64,151
Arena Pharmaceuticals, Inc. (a)		68,959		128,953
Ariad Pharmaceuticals, Inc. (a)(b)		62,549		766,225
Arqule, Inc. (a)		25,347		142,957
Array Biopharma, Inc. (a)		27,130		58,601
Astex Pharmaceuticals (a)		25,639		48,458
AVEO Pharmaceuticals, Inc. (a)		14,826		255,007
AVI BioPharma, Inc. (a)		69,690		51,919
BG Medicine, Inc. (a)		3,856		18,200
BioMimetic Therapeutics, Inc. (a)		9,391		26,764
BioSante Pharmaceuticals, Inc. (a)(b)		54,499		27,364
BioTime, Inc. (a)		11,732		68,163
Cell Therapeutics, Inc. (a)(b)		91,830		106,523
Celldex Therapeutics, Inc. (a)		21,027		54,670
Cepheid, Inc. (a)(b)		29,269		1,007,146
Chelsea Therapeutics International, Inc. (a)		25,436		130,487
Clovis Oncology, Inc. (a)		5,322		74,987
Codexis, Inc. (a)		11,740		62,222
Complete Genomics, Inc. (a)		5,216		15,283
Cornerstone Therapeutics, Inc. (a)		3,620		20,272
Cubist Pharmaceuticals, Inc. (a)		28,380		1,124,416
Curis, Inc. (a)(b)		36,259		169,692
Cytori Therapeutics, Inc. (a)		24,751		54,452
Dyax Corp. (a)(b)		46,950		63,852
Dynavax Technologies Corp. (a)(b)		72,760		241,563
Emergent Biosolutions, Inc. (a)		11,533		194,216
Enzo Biochem, Inc. (a)		17,475		39,144
Enzon Pharmaceuticals, Inc. (a)		17,766		119,032
Exact Sciences Corp. (a)		26,799		217,608
Exelixis, Inc. (a)		60,653		287,192
Furiex Pharmaceuticals, Inc. (a)		4,683		78,253
Genomic Health, Inc. (a)		8,029		203,856
Geron Corp. (a)		61,464		90,967
GTx, Inc. (a)		10,826		36,375
Halozyme Therapeutics, Inc. (a)		38,938		370,300
Harvard Bioscience, Inc. (a)		11,322		43,816
Horizon Pharma, Inc. (a)		1,874		7,496
Idenix Pharmaceuticals, Inc. (a)		28,561		212,637
ImmunoGen, Inc. (a)		35,631		412,607
Immunomedics, Inc. (a)		31,017		103,287
Incyte Corp. (a)(b)		41,877		628,574
Inhibitex, Inc. (a)		30,148		329,819
Insmed, Inc. (a)		11,122		33,922
InterMune, Inc. (a)		25,649		323,177

Common Stocks	Shares		Value
Biotechnology (concluded)
Kensey Nash Corp. (b)		3,937	$	75,551
Keryx Biopharmaceuticals, Inc. (a)		32,268		81,638
Lexicon Genetics, Inc. (a)		80,559		103,921
Ligand Pharmaceuticals, Inc. (a)		9,305		110,450
MannKind Corp. (a)(b)		36,643		91,607
Maxygen, Inc. (a)		13,547		76,270
Medivation, Inc. (a)		14,841		684,319
Metabolix, Inc. (a)		15,941		72,532
Micromet, Inc. (a)		43,432		312,276
Momenta Pharmaceuticals, Inc. (a)		21,877		380,441
Nabi Biopharmaceuticals (a)		19,002		35,724
Nektar Therapeutics (a)		54,138		302,902
Neurocrine Biosciences, Inc. (a)		23,366		198,611
Novavax, Inc. (a)		45,860		57,784
NPS Pharmaceuticals, Inc. (a)		40,749		268,536
Nymox Pharmaceutical Corp. (a)		9,022		74,161
OncoGenex Pharmaceutical, Inc. (a)		4,607		54,086
Oncothyreon, Inc. (a)		19,722		149,493
Onyx Pharmaceuticals, Inc. (a)		30,009		1,318,896
Opko Health, Inc. (a)		51,573		252,708
Orexigen Therapeutics, Inc. (a)		15,819		25,469
Osiris Therapeutics, Inc. (a)		8,201		43,875
Pacific Biosciences of California, Inc. (a)		15,866		44,425
PDL BioPharma, Inc.		66,353		411,389
Peregrine Pharmaceuticals, Inc. (a)(b)		38,877		40,043
PharmAthene, Inc. (a)(b)		18,525		23,527
Progenics Pharmaceuticals, Inc. (a)(b)		13,911		118,800
Raptor Pharmaceutical Corp. (a)		22,335		139,817
Rigel Pharmaceuticals, Inc. (a)		32,599		257,206
RTI Biologics, Inc. (a)		26,166		116,177
Sangamo Biosciences, Inc. (a)		24,948		70,852
Savient Pharmaceuticals, Inc. (a)		33,443		74,578
Seattle Genetics, Inc. (a)		45,691		763,725
Sequenom, Inc. (a)		46,918		208,785
Sucampo Pharmaceuticals, Inc., Class A (a)		5,721		25,344
Sunesis Pharmaceuticals, Inc. (a)		15,250		17,842
Synta Pharmaceuticals Corp. (a)		10,853		50,684
Targacept, Inc. (a)		12,893		71,814
Theravance, Inc. (a)		32,665		721,896
Transcept Pharmaceuticals, Inc. (a)(b)		2,688		21,047
Trius Therapeutics, Inc. (a)		3,551		25,390
Vanda Pharmaceuticals, Inc. (a)		13,196		62,813
ViroPharma, Inc. (a)		33,516		918,003
Zalicus, Inc. (a)(b)		35,119		42,494
ZIOPHARM Oncology, Inc. (a)		27,753		122,391
				19,671,513
Building Materials — 0.9%
Acuity Brands, Inc.		20,537		1,088,461
Builders FirstSource, Inc. (a)		21,372		43,599
Gibraltar Industries, Inc. (a)		14,402		201,052
Griffon Corp.		22,622		206,539
Headwaters, Inc. (a)		28,990		64,358
Louisiana-Pacific Corp. (a)		62,589		505,093
LSI Industries, Inc.		9,040		54,240
NCI Building Systems, Inc. (a)		9,238		100,417
Quanex Building Products Corp.		18,027		270,766
Simpson Manufacturing Co., Inc.		19,715		663,607
Texas Industries, Inc.		10,790		332,116
Trex Co., Inc. (a)		7,373		168,915
Watsco, Inc.		13,315		874,263
				4,573,426

See Notes to Financial Statements.
20	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Building: Climate Control — 0.1%
Aaon, Inc.		8,936	$	183,099
Comfort Systems USA, Inc.		18,097		194,000
Interline Brands, Inc. (a)		15,794		245,912
				623,011
Building: Roofing, Wallboard & Plumbing — 0.1%
Beacon Roofing Supply, Inc. (a)		21,793		440,872
USG Corp. (a)		33,848		343,896
				784,768
Cable Television Services — 0.0%
Knology, Inc. (a)		14,221		201,938
Casinos & Gambling — 0.3%
Ameristar Casinos, Inc.		15,206		262,912
Boyd Gaming Corp. (a)		25,912		193,303
Isle of Capri Casinos, Inc. (a)		9,331		43,576
Monarch Casino & Resort, Inc. (a)		4,275		43,562
Multimedia Games Holding Co., Inc. (a)		12,816		101,759
Pinnacle Entertainment, Inc. (a)(b)		29,308		297,769
Scientific Games Corp., Class A (a)		27,561		267,342
Shuffle Master, Inc. (a)		25,648		300,595
				1,510,818
Cement — 0.1%
Eagle Materials, Inc.		21,110		541,683
Chemicals: Diversified — 0.9%
Aceto Corp.		12,685		87,527
American Vanguard Corp.		10,585		141,204
Chemtura Corp. (a)		45,627		517,410
Georgia Gulf Corp. (a)		16,099		313,770
Hawkins, Inc.		4,122		151,937
Innophos Holdings, Inc.		10,284		499,391
KMG Chemicals, Inc.		3,276		56,577
Landec Corp. (a)		12,333		68,078
LSB Industries, Inc. (a)		8,711		244,169
Olin Corp.		37,781		742,397
OM Group, Inc. (a)		14,683		328,752
Omnova Solutions, Inc. (a)		21,063		97,100
PolyOne Corp.		44,255		511,145
Sensient Technologies Corp.		23,737		899,632
TPC Group, Inc. (a)(b)		6,280		146,512
				4,805,601
Chemicals: Specialty — 0.6%
Balchem Corp.		13,657		553,655
Calgon Carbon Corp. (a)(b)		26,748		420,211
FutureFuel Corp.		8,898		110,513
Innospec, Inc. (a)		11,252		315,844
Kraton Performance Polymers, Inc. (a)		15,128		307,098
NewMarket Corp.		4,269		845,731
Quaker Chemical Corp.		6,093		236,957
Senomyx, Inc. (a)		18,904		65,786
Stepan Co.		3,833		307,253
Zep, Inc.		10,420		145,672
				3,308,720

Common Stocks	Shares		Value
Coal — 0.2%
Cloud Peak Energy, Inc. (a)		28,842	$	557,227
Hallador Energy Co.		1,890		18,768
James River Coal Co. (a)		16,850		116,602
KiOR, Inc. (a)(b)		5,344		54,402
L&L Energy, Inc. (a)		10,867		28,145
Patriot Coal Corp. (a)		43,300		366,751
Westmoreland Coal Co. (a)		4,597		58,612
				1,200,507
Commercial Finance & Mortgage Companies — 0.1%
Federal Agricultural Mortgage Corp., Class B		4,712		84,910
Medallion Financial Corp.		7,296		83,028
NewStar Financial, Inc. (a)		13,163		133,868
Walker & Dunlop, Inc. (a)		5,217		65,526
				367,332
Commercial Services: Rental & Leasing — 0.7%
Aircastle Ltd.		26,032		331,127
CAI International, Inc. (a)		5,751		88,910
Electro Rent Corp.		8,960		153,664
Essex Rental Corp. (a)		8,437		24,889
H&E Equipment Services, Inc. (a)		13,595		182,445
Marlin Business Services, Inc.		4,181		53,099
McGrath RentCorp		11,539		334,516
Mobile Mini, Inc. (a)		17,414		303,874
PHH Corp. (a)		26,657		285,230
RSC Holdings, Inc. (a)		32,099		593,831
SeaCube Container Leasing Ltd.		5,201		77,027
TAL International Group, Inc.		10,420		299,992
United Rentals, Inc. (a)		29,605		874,828
				3,603,432
Commercial Vehicles & Parts — 0.2%
Accuride Corp. (a)		19,181		136,569
Commercial Vehicle Group, Inc. (a)		13,680		123,667
Miller Industries, Inc.		5,264		82,803
Modine Manufacturing Co. (a)		22,091		208,981
Rush Enterprises, Inc., Class A (a)(b)		15,350		321,122
Spartan Motors, Inc.		15,902		76,488
Wabash National Corp. (a)		32,495		254,761
				1,204,391
Communications Technology — 2.3%
AboveNet, Inc. (a)		10,997		714,915
Adtran, Inc.		30,645		924,253
Anaren, Inc. (a)		7,125		118,418
Anixter International, Inc. (a)		13,734		819,096
Aruba Networks, Inc. (a)		40,444		749,023
Aviat Networks, Inc. (a)		28,869		52,830
Bel Fuse, Inc.		4,981		93,394
Black Box Corp.		8,535		239,321
Calix, Inc. (a)		17,910		115,878
Comtech Telecommunications Corp.		9,616		275,210
Dialogic, Inc. (a)		7,985		9,582
Digi International, Inc. (a)(b)		12,034		134,299
DigitalGlobe, Inc. (a)(b)		16,707		285,857
Echelon Corp. (a)		16,496		80,336
Emulex Corp. (a)		41,653		285,740
Extreme Networks, Inc. (a)		43,809		127,922
Finisar Corp. (a)		42,470		711,160
GeoEye, Inc. (a)		10,462		232,466
Globecomm Systems, Inc. (a)		10,616		145,227

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	21

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Communications Technology (concluded)
GSI Technology, Inc. (a)		10,035	$	46,964
Harmonic, Inc. (a)		54,502		274,690
Infinera Corp. (a)		49,540		311,111
InterDigital, Inc.		21,483		936,014
Ixia (a)(b)		18,338		192,732
KVH Industries, Inc. (a)		6,918		53,822
Loral Space & Communications Ltd. (a)		5,155		334,456
Meru Networks, Inc. (a)		5,640		23,293
NeoPhotonics Corp. (a)		4,439		20,331
NETGEAR, Inc. (a)		17,357		582,675
Novatel Wireless, Inc. (a)		14,979		46,884
Numerex Corp. (a)		4,487		36,928
Oclaro, Inc. (a)		23,691		66,809
Oplink Communications, Inc. (a)		9,252		152,380
Plantronics, Inc.		20,611		734,576
Procera Networks, Inc. (a)		6,820		106,256
SeaChange International, Inc. (a)		12,532		88,100
Shoretel, Inc. (a)		22,395		142,880
Sonus Networks, Inc. (a)		100,190		240,456
Sycamore Networks, Inc. (a)		9,507		170,175
Tekelec (a)(b)		29,249		319,692
TeleNav, Inc. (a)		7,552		58,981
Viasat, Inc. (a)		17,177		792,203
Westell Technologies, Inc., Class A (a)		26,028		57,782
				11,905,117
Computer Services Software & Systems — 6.1%
ACI Worldwide, Inc. (a)(c)		15,817		452,999
The Active Network, Inc. (a)		5,703		77,561
Actuate Corp. (a)		18,315		107,326
Acxiom Corp. (a)		38,502		470,109
American Reprographics Co. (a)		17,682		81,160
American Software, Inc., Class A		10,828		102,325
Aspen Technology, Inc. (a)(b)		40,063		695,093
Avid Technology, Inc. (a)(b)		14,055		119,889
Bankrate, Inc. (a)		10,872		233,748
Blackbaud, Inc.		21,106		584,636
Blue Coat Systems, Inc. (a)		20,622		524,830
Bottomline Technologies, Inc. (a)		17,015		394,238
BroadSoft, Inc. (a)		10,685		322,687
CACI International, Inc., Class A (a)		12,476		697,658
Callidus Software, Inc. (a)		14,234		91,382
Ciber, Inc. (a)(b)		30,256		116,788
CommVault Systems, Inc. (a)		20,857		891,011
Computer Task Group, Inc. (a)		7,187		101,193
ComScore, Inc. (a)		15,107		320,268
Concur Technologies, Inc. (a)		21,148		1,074,107
Convio, Inc. (a)		5,542		61,295
Cornerstone OnDemand, Inc. (a)		5,360		97,766
CSG Systems International, Inc. (a)		16,392		241,126
DealerTrack Holdings, Inc. (a)(b)		19,483		531,107
Deltek, Inc. (a)(b)		10,549		103,591
Demand Media, Inc. (a)		4,024		26,760
DemandTec, Inc. (a)		15,307		201,593
Digimarc Corp. (a)		2,939		70,213
Digital River, Inc. (a)		17,682		265,584
DynaVox, Inc., Class A (a)		4,834		17,596
EarthLink, Inc.		52,039		335,131
Ebix, Inc.		13,662		301,930
Envestnet, Inc. (a)		9,172		109,697
EPIQ Systems, Inc.		14,859		178,605
Common Stocks	Shares		Value
Computer Services Software & Systems (continued)
ePlus, Inc. (a)		1,831	$	51,781
FalconStor Software, Inc. (a)		14,017		36,164
FriendFinder Networks, Inc. (a)		3,035		2,276
Guidance Software, Inc. (a)		6,830		44,258
ICG Group, Inc. (a)		17,563		135,586
iGate Corp. (a)		14,715		231,467
Imperva, Inc. (a)		2,735		95,205
Infospace, Inc. (a)		18,547		203,832
Interactive Intelligence Group, Inc. (a)(b)		6,757		154,870
Internap Network Services Corp. (a)		24,809		147,365
IntraLinks Holdings, Inc. (a)		15,188		94,773
JDA Software Group, Inc. (a)		20,039		649,063
Kenexa Corp. (a)		12,527		334,471
Keynote Systems, Inc.		6,942		142,589
The KEYW Holding Corp. (a)		8,656		64,054
KIT Digital, Inc. (a)(b)		18,191		153,714
Limelight Networks, Inc. (a)		32,208		95,336
Lionbridge Technologies, Inc. (a)		29,524		67,610
LivePerson, Inc. (a)		24,920		312,746
LogMeIn, Inc. (a)		9,635		371,429
Magma Design Automation, Inc. (a)		31,676		227,434
Manhattan Associates, Inc. (a)		9,674		391,604
Mantech International Corp., Class A		11,024		344,390
Mentor Graphics Corp. (a)		45,617		618,567
Mercury Computer Systems, Inc. (a)		14,333		190,486
MicroStrategy, Inc., Class A (a)		3,783		409,775
Moduslink Global Solutions, Inc.		20,698		111,769
Monotype Imaging Holdings, Inc. (a)(b)		16,949		264,235
Motricity, Inc. (a)		19,184		17,266
NCI, Inc., Class A (a)		3,213		37,431
NetScout Systems, Inc. (a)		17,728		312,013
NetSuite, Inc. (a)		12,895		522,892
NIC, Inc.		30,289		403,147
OpenTable, Inc. (a)(b)		11,141		435,947
Openwave Systems, Inc. (a)		40,665		64,251
Opnet Technologies, Inc.		6,825		250,273
Parametric Technology Corp. (a)		56,455		1,030,868
PDF Solutions, Inc. (a)		11,144		77,674
Pegasystems, Inc.		7,875		231,525
Perficient, Inc. (a)(b)		11,480		114,915
Progress Software Corp. (a)		31,765		614,653
PROS Holdings, Inc. (a)		10,219		152,059
QAD, Inc. (a)		3,165		33,232
QLIK Technologies, Inc. (a)		33,352		807,118
Quepasa Corp. (a)(b)		3,821		12,686
Quest Software, Inc. (a)		26,894		500,228
RealNetworks, Inc.		9,829		73,717
RealPage, Inc. (a)		14,370		363,130
Responsys, Inc. (a)		4,229		37,596
RightNow Technologies, Inc. (a)		11,662		498,317
Saba Software, Inc. (a)		13,390		105,647
Sapient Corp.		51,795		652,617
SciQuest, Inc. (a)		5,946		84,849
Smith Micro Software, Inc. (a)		18,591		21,008
SolarWinds, Inc. (a)		26,986		754,259
Sourcefire, Inc. (a)		13,459		435,802
SPS Commerce, Inc. (a)		3,980		103,281
SS&C Technologies Holdings, Inc. (a)(b)		11,931		215,474
SuccessFactors, Inc. (a)		39,517		1,575,543
Support.com, Inc. (a)		22,615		50,884
Synchronoss Technologies, Inc. (a)		12,524		378,350

See Notes to Financial Statements.
22	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Computer Services Software & Systems (concluded)
SYNNEX Corp. (a)		11,869	$	361,530
Syntel, Inc.		7,305		341,655
Taleo Corp., Class A (a)		19,450		752,520
Tangoe, Inc. (a)		4,772		73,489
TechTarget, Inc. (a)		7,257		42,381
TeleCommunication Systems, Inc., Class A (a)		21,452		50,412
TNS, Inc. (a)(b)		12,035		213,260
Tyler Technologies, Inc. (a)		14,063		423,437
Ultimate Software Group, Inc. (a)		12,234		796,678
Unisys Corp. (a)		20,420		402,478
United Online, Inc.		42,036		228,676
VASCO Data Security International, Inc. (a)		12,601		82,159
Verint Systems, Inc. (a)		10,021		275,978
VirnetX Holding Corp. (a)(b)		19,300		481,921
Virtusa Corp. (a)		7,196		104,198
Wave Systems Corp., Class A (a)		38,544		83,640
Web.Com Group, Inc. (a)		13,766		157,621
Websense, Inc. (a)		18,929		354,540
Zillow, Inc. (a)(b)		1,856		41,723
Zix Corp. (a)		31,609		89,137
				32,273,936
Computer Technology — 0.6%
Cray, Inc. (a)		17,225		111,446
Dot Hill Systems Corp. (a)		28,725		38,204
Dynamics Research Corp. (a)		4,341		49,227
Identive Group, Inc. (a)		17,865		39,839
Imation Corp. (a)		14,003		80,237
Immersion Corp. (a)		13,595		70,422
Insight Enterprises, Inc. (a)		20,783		317,772
Intermec, Inc. (a)		28,245		193,761
OCZ Technology Group, Inc. (a)(b)		24,417		161,396
PC Connection, Inc.		4,240		47,022
Quantum Corp. (a)(b)		107,063		256,951
Radisys Corp. (a)		9,084		45,965
Rimage Corp.		4,334		48,758
Safeguard Scientifics, Inc. (a)		9,786		154,521
Silicon Graphics International Corp. (a)		14,717		168,657
STEC, Inc. (a)		17,477		150,127
Stratasys, Inc. (a)		10,039		305,286
Super Micro Computer, Inc. (a)(b)		12,754		199,983
Synaptics, Inc. (a)		15,242		459,546
Xyratex Ltd.		13,453		179,194
				3,078,314
Construction — 0.4%
Aegion Corp. (a)		18,778		288,055
EMCOR Group, Inc.		31,693		849,689
Granite Construction, Inc.		18,340		435,025
Great Lakes Dredge & Dock Corp.		28,057		155,997
Orion Marine Group, Inc. (a)		12,922		85,931
Primoris Services Corp.		12,693		189,506
Sterling Construction Co., Inc. (a)		7,801		84,017
Tutor Perini Corp. (a)		14,835		183,064
				2,271,284
Consumer Electronics — 0.2%
RealD, Inc. (a)		19,562		155,322
Skullcandy, Inc. (a)(b)		4,396		55,038
TiVo, Inc. (a)(b)		56,430		506,177
Universal Electronics, Inc. (a)(b)		7,133		120,334
Common Stocks	Shares		Value
Consumer Electronics (concluded)
VOXX International Corp. (a)		8,683	$	73,371
XO Group, Inc. (a)		13,531		112,849
Zagg, Inc. (a)(b)		10,337		73,083
				1,096,174
Consumer Lending — 0.8%
Advance America, Cash Advance Centers, Inc.		26,449		236,719
Cash America International, Inc.		13,996		652,633
Credit Acceptance Corp. (a)		3,203		263,543
Encore Capital Group, Inc. (a)		7,752		164,807
Ezcorp, Inc. (a)		22,360		589,633
First Cash Financial Services, Inc. (a)		14,932		523,964
The First Marblehead Corp. (a)		26,647		31,177
Imperial Holdings, Inc. (a)		9,011		16,941
MGIC Investment Corp. (a)		89,132		332,462
MoneyGram International, Inc. (a)		5,083		90,223
Nelnet, Inc., Class A		12,337		301,886
Netspend Holdings, Inc. (a)		12,805		103,849
Nicholas Financial, Inc.		4,794		61,459
Portfolio Recovery Associates, Inc. (a)(b)		8,159		550,896
World Acceptance Corp. (a)		7,172		527,142
				4,447,334
Consumer Services: Miscellaneous — 0.5%
Ancestry.com, Inc. (a)		14,983		344,010
Coinstar, Inc. (a)(b)		14,849		677,708
Core-Mark Holdings Co., Inc.		5,369		212,613
Move, Inc. (a)		18,840		119,069
NutriSystem, Inc.		12,826		165,840
Sotheby’s, Class A		32,021		913,559
Steiner Leisure Ltd. (a)		7,123		323,313
				2,756,112
Containers & Packaging — 0.1%
AEP Industries, Inc. (a)		2,035		57,285
Graphic Packaging Holding Co. (a)(b)		75,722		322,576
Myers Industries, Inc.		14,210		175,351
				555,212
Copper — 0.0%
Revett Minerals, Inc. (a)		11,474		54,157
Cosmetics — 0.1%
Elizabeth Arden, Inc. (a)(b)		11,589		429,257
Inter Parfums, Inc.		7,716		120,061
Revlon, Inc., Class A (a)		5,183		77,071
				626,389
Diversified Financial Services — 0.5%
California First National Bancorp		748		12,028
DFC Global Corp. (a)		20,690		373,661
Duff & Phelps Corp.		14,556		211,062
Edelman Financial Group, Inc.		9,526		62,586
Evercore Partners, Inc., Class A		9,972		265,455
FBR & Co. (a)		22,110		45,325
Fidus Investment Corp.		2,247		29,144
Gleacher & Co., Inc. (a)		33,671		56,567
Intersections, Inc.		4,528		50,215
Main Street Capital Corp.		10,768		228,712
Piper Jaffray Cos. (a)		7,480		151,096
Stifel Financial Corp. (a)(b)		25,457		815,897
Triangle Capital Corp.		10,488		200,531
				2,502,279

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	23

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Diversified Manufacturing Operations — 0.4%
A.M. Castle & Co. (a)		7,685	$	72,700
Barnes Group, Inc.		25,822		622,568
Federal Signal Corp. (a)		29,432		122,143
Lydall, Inc. (a)		8,147		77,315
OSI Systems, Inc. (a)		9,027		440,337
Raven Industries, Inc.		8,572		530,607
Standex International Corp.		5,924		202,423
Trimas Corp. (a)(b)		12,109		217,357
				2,285,450
Diversified Materials & Processing — 0.9%
Belden, Inc.		22,456		747,336
Cabot Microelectronics Corp. (a)		11,139		526,318
Clarcor, Inc.		23,877		1,193,611
Encore Wire Corp.		8,804		228,024
Harbinger Group, Inc. (a)		3,798		15,230
Hexcel Corp. (a)(b)		46,405		1,123,465
Insteel Industries, Inc.		8,191		90,019
Koppers Holdings, Inc.		9,762		335,422
NL Industries, Inc.		3,389		43,955
Tredegar Corp.		11,341		251,997
Uranium Energy Corp. (a)(b)		36,447		111,528
				4,666,905
Diversified Media — 0.1%
Belo Corp., Class A		43,892		276,520
EW Scripps Co. (a)		14,938		119,653
				396,173
Diversified Retail — 0.5%
99 Cents Only Stores (a)		22,157		486,346
The Bon-Ton Stores, Inc.		6,149		20,722
Fred’s, Inc.		17,534		255,646
Geeknet, Inc. (a)		2,182		37,203
Gordmans Stores, Inc. (a)		2,697		33,901
HSN, Inc.		18,931		686,438
Overstock.com, Inc. (a)		5,374		42,132
PriceSmart, Inc.		8,418		585,809
Saks, Inc. (a)		54,655		532,886
Tuesday Morning Corp. (a)		20,424		70,463
ValueVision Media, Inc., Class A (a)		18,625		35,015
Winmark Corp.		1,041		59,722
				2,846,283
Drug & Grocery Store Chains — 0.9%
Arden Group, Inc., Class A		552		49,686
Casey’s General Stores, Inc.		18,001		927,231
The Fresh Market, Inc. (a)		13,348		532,585
GNC Holdings, Inc. (a)		10,812		313,007
Ingles Markets, Inc., Class A		5,792		87,228
Nash Finch Co.		5,726		167,657
The Pantry, Inc. (a)		10,871		130,126
PetMed Express, Inc.		9,710		100,790
Rite Aid Corp. (a)		279,057		351,612
Ruddick Corp.		23,311		993,981
Spartan Stores, Inc.		10,711		198,153
Susser Holdings Corp. (a)		4,438		100,388
Village Super Market, Inc., Class A		3,020		85,919
Weis Markets, Inc.		5,278		210,803
Winn-Dixie Stores, Inc. (a)		26,513		248,692
				4,497,858
Common Stocks	Shares		Value
Education Services — 0.5%
Ambassadors Group, Inc.		8,473	$	38,213
American Public Education, Inc. (a)		8,462		366,235
Archipelago Learning, Inc. (a)(b)		6,056		58,562
Bridgepoint Education, Inc. (a)(b)		8,469		194,787
Cambium Learning Group, Inc. (a)		7,733		23,354
Capella Education Co. (a)		6,860		247,303
Corinthian Colleges, Inc. (a)		37,719		81,850
Franklin Covey Co. (a)		6,113		51,777
Grand Canyon Education, Inc. (a)		13,564		216,481
HealthStream, Inc. (a)		8,588		158,449
K12, Inc. (a)		12,316		220,949
Lincoln Educational Services Corp.		10,581		83,590
National American University Holdings, Inc.		4,580		34,716
Rosetta Stone, Inc. (a)(b)		5,080		38,760
School Specialty, Inc. (a)		8,243		20,608
Strayer Education, Inc.		5,808		564,480
Universal Technical Institute, Inc. (a)		10,127		129,423
				2,529,537
Electronic Components — 0.7%
3D Systems Corp. (a)		19,872		286,157
Acacia Research — Acacia Technologies (a)		20,254		739,473
Checkpoint Systems, Inc. (a)		19,037		208,265
DDi Corp.		7,096		66,206
InvenSense, Inc. (a)		4,973		49,531
Kemet Corp. (a)		20,986		147,951
LeCroy Corp. (a)		7,724		64,959
Methode Electronics, Inc.		17,593		145,846
Microvision, Inc. (a)		56,035		20,178
Multi-Fineline Electronix, Inc. (a)		4,198		86,269
NVE Corp. (a)		2,245		124,665
Park Electrochemical Corp.		9,856		252,511
Pulse Electronics Corp.		19,580		54,824
Rogers Corp. (a)		7,560		278,661
ScanSource, Inc. (a)		12,795		460,620
TTM Technologies, Inc. (a)(b)		24,623		269,868
Universal Display Corp. (a)(b)		18,220		668,492
Viasystems Group, Inc. (a)		1,439		24,348
				3,948,824
Electronic Entertainment — 0.2%
DTS, Inc. (a)		8,252		224,784
Glu Mobile, Inc. (a)(b)		22,231		69,805
Take-Two Interactive Software, Inc. (a)		34,807		471,635
THQ, Inc. (a)		33,039		25,110
				791,334
Electronics — 0.5%
Agilysys, Inc. (a)		8,745		69,523
American Science & Engineering, Inc.		4,292		292,328
Coherent, Inc. (a)		11,171		583,908
Daktronics, Inc.		16,567		158,546
II-VI, Inc. (a)(b)		24,531		450,389
iRobot Corp. (a)		11,264		336,230
Newport Corp. (a)		17,763		241,755
Richardson Electronics Ltd.		6,507		79,971
Rofin-Sinar Technologies, Inc. (a)		13,494		308,338
SRS Labs, Inc. (a)		5,970		34,328
				2,555,316

See Notes to Financial Statements.
24	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Energy Equipment — 0.1%
C&J Energy Services, Inc. (a)		5,637	$	117,982
Capstone Turbine Corp. (a)(b)		116,980		135,697
FuelCell Energy, Inc. (a)		60,604		52,847
PowerSecure International, Inc. (a)		8,655		42,842
STR Holdings, Inc. (a)(b)		14,354		118,134
				467,502
Engineering & Contracting Services — 0.5%
Argan, Inc.		3,614		54,969
Dycom Industries, Inc. (a)		16,707		349,510
Exponent, Inc. (a)		6,266		288,048
Furmamite Corp. (a)(b)		17,702		111,700
Hill International, Inc. (a)		11,825		60,781
Layne Christensen Co. (a)		9,302		225,108
Mastec, Inc. (a)(b)		26,858		466,523
Michael Baker Corp. (a)		3,914		76,754
Mistras Group, Inc. (a)		6,974		177,767
MYR Group, Inc. (a)		9,556		182,902
Tetra Tech, Inc. (a)		29,561		638,222
UniTek Global Services, Inc. (a)		5,345		24,213
VSE Corp.		1,973		47,904
				2,704,401
Entertainment — 0.4%
Ascent Capital Group, Inc., Class A (a)(b)		6,776		343,679
Cinemark Holdings, Inc.		44,025		814,022
Lions Gate Entertainment Corp. (a)		21,300		177,216
Live Nation Entertainment, Inc. (a)		66,892		555,873
Rentrak Corp. (a)		4,526		64,631
World Wrestling Entertainment, Inc.		13,062		121,738
				2,077,159
Environmental, Maintenance, & Security Service — 0.7%
ABM Industries, Inc.		25,134		518,263
The Brink’s Co.		22,125		594,720
G&K Services, Inc., Class A		8,860		257,915
The Geo Group, Inc. (a)		30,686		513,991
Healthcare Services Group, Inc.		31,492		557,093
Mac-Gray Corp.		5,780		79,706
Rollins, Inc.		30,136		669,622
Standard Parking Corp. (a)(b)		7,452		133,167
Swisher Hygiene, Inc. (a)		40,256		150,557
Unifirst Corp.		6,701		380,215
				3,855,249
Fertilizers — 0.0%
Rentech, Inc. (a)		60,976		79,879
Financial Data & Systems — 1.0%
Advent Software, Inc. (a)		15,559		379,017
Cardtronics, Inc. (a)		20,390		551,754
Cass Information Systems, Inc.		4,395		159,934
Euronet Worldwide, Inc. (a)		24,259		448,306
Fair Isaac Corp.		16,911		606,090
Global Cash Access, Inc. (a)		14,592		64,935
Heartland Payment Systems, Inc.		18,248		444,521
Higher One Holdings, Inc. (a)(b)		14,494		267,269
Jack Henry & Associates, Inc.		40,893		1,374,414
S1 Corp. (a)		26,518		253,777
Wright Express Corp. (a)(b)		18,299		993,270
				5,543,287
Common Stocks	Shares		Value
Foods — 1.2%
B&G Foods, Inc., Class A		22,720	$	546,870
The Chefs’ Warehouse, Inc. (a)		4,851		86,639
Chiquita Brands International, Inc. (a)		21,500		179,310
Diamond Foods, Inc. (b)		10,405		335,769
Dole Food Co., Inc. (a)(b)		16,959		146,695
Hain Celestial Group, Inc. (a)		16,964		621,900
J&J Snack Foods Corp.		6,785		361,505
Lancaster Colony Corp.		8,875		615,393
Lifeway Foods, Inc. (a)		2,168		20,900
Medifast, Inc. (a)(b)		6,526		89,537
Natures Sunshine Prods, Inc. (a)		5,336		82,815
Nutraceutical International Corp. (a)		4,321		48,914
Omega Protein Corp. (a)		9,091		64,819
Schiff Nutrition International, Inc. (a)		5,693		60,915
Seneca Foods Corp. (a)		4,368		112,782
Smart Balance, Inc. (a)(b)		28,204		151,173
Snyders-Lance, Inc.		22,408		504,180
Synutra International, Inc. (a)(b)		8,141		41,193
Tootsie Roll Industries, Inc.		11,318		267,897
TreeHouse Foods, Inc. (a)		16,803		1,098,580
United Natural Foods, Inc. (a)(b)		22,903		916,349
				6,354,135
Forest Products — 0.1%
Deltic Timber Corp.		5,102		308,110
Universal Forest Products, Inc.		9,235		285,084
				593,194
Forms & Bulk Printing Services — 0.3%
Consolidated Graphics, Inc. (a)		3,997		192,975
Deluxe Corp.		24,380		554,889
Ennis, Inc.		12,397		165,252
Innerworkings, Inc. (a)		12,211		113,685
Multi-Color Corp.		5,395		138,813
Quad/Graphics, Inc.		11,953		171,406
Schawk, Inc.		5,492		61,565
				1,398,585
Fruit & Grain Processing — 0.0%
MGP Ingredients, Inc.		5,933		29,902
Funeral Parlors & Cemeteries — 0.2%
Hillenbrand, Inc.		29,712		663,172
Matthews International Corp., Class A		13,983		439,485
Stewart Enterprises, Inc., Class A		37,517		216,098
				1,318,755
Gas Pipeline — 0.1%
Crosstex Energy, Inc.		19,431		245,608
SemGroup Corp. (a)(b)		19,777		515,388
				760,996
Glass — 0.0%
Apogee Enterprises, Inc.		13,399		164,272
Gold — 0.4%
Coeur d’Alene Mines Corp. (a)		42,408		1,023,729
Gold Resource Corp.		13,460		286,025
Golden Star Resources Ltd. (a)(b)		122,752		202,541
Jaguar Mining, Inc. (a)(b)		39,992		255,149
Midway Gold Corp. (a)		40,597		85,660
U.S. Gold Corp. (a)		49,992		167,973
Vista Gold Corp. (a)		33,160		101,801
				2,122,878

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	25

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Health Care Facilities — 0.6%
Amsurg Corp. (a)		14,801	$	385,418
Assisted Living Concepts, Inc.		9,281		138,194
Capital Senior Living Corp. (a)		12,922		102,601
Emeritus Corp. (a)		14,469		253,352
The Ensign Group, Inc.		7,718		189,091
Five Star Quality Care, Inc. (a)		19,302		57,906
Hanger Orthopedic Group, Inc. (a)		15,856		296,349
HealthSouth Corp. (a)		45,064		796,281
Kindred Healthcare, Inc. (a)(b)		24,649		290,119
National Healthcare Corp.		4,865		203,843
Select Medical Holdings Corp. (a)(b)		21,240		180,115
Skilled Healthcare Group, Inc., Class A (a)		8,991		49,091
Sunrise Senior Living, Inc. (a)		27,289		176,833
US Physical Therapy, Inc.		5,563		109,480
Vanguard Health Systems, Inc. (a)		14,470		147,883
				3,376,556
Health Care Management Services — 1.1%
American Dental Partners, Inc. (a)		7,275		136,988
Bioscript, Inc. (a)		19,292		105,334
Centene Corp. (a)		23,701		938,323
Computer Programs & Systems, Inc.		5,248		268,225
HealthSpring, Inc. (a)		32,105		1,751,007
Magellan Health Services, Inc. (a)		13,463		666,015
Metropolitan Health Networks, Inc. (a)		20,140		150,446
Molina Healthcare, Inc. (a)(b)		13,303		297,056
National Research Corp.		821		31,863
Triple-S Management Corp. (a)		9,321		186,606
Universal American Corp.		15,309		194,577
WellCare Health Plans, Inc. (a)		20,166		1,058,715
				5,785,155
Health Care Services — 1.4%
Accretive Health, Inc. (a)(b)		18,956		435,609
Air Methods Corp. (a)		5,365		453,074
Alliance Healthcare Services, Inc. (a)		12,487		15,734
Almost Family, Inc. (a)		4,000		66,320
Amedisys, Inc. (a)		13,985		152,576
AMN Healthcare Services, Inc. (a)		18,439		81,685
athenahealth, Inc. (a)		16,510		810,971
CardioNet, Inc. (a)		12,314		29,184
Chemed Corp.		9,400		481,374
Chindex International, Inc. (a)		5,206		44,355
Corvel Corp. (a)(b)		3,006		155,440
Cross Country Healthcare, Inc. (a)		13,175		73,121
ePocrates, Inc. (a)		3,229		25,186
ExamWorks Group, Inc. (a)		12,860		121,913
Gentiva Health Services, Inc. (a)		14,662		98,969
Healthways, Inc. (a)		16,153		110,810
HMS Holdings Corp. (a)		40,142		1,283,741
IPC The Hospitalist Co., Inc. (a)(b)		7,750		354,330
LHC Group, Inc. (a)		7,498		96,199
Medidata Solutions, Inc. (a)		9,937		216,130
MedQuist Holdings, Inc. (a)		15,801		152,006
MWI Veterinary Supply, Inc. (a)		5,954		395,584
Omnicell, Inc. (a)(b)		15,704		259,430
PharMerica Corp. (a)		13,882		210,729
Quality Systems, Inc.		18,354		678,914
Sun Healthcare Group, Inc. (a)		11,809		45,819
Team Health Holdings, Inc. (a)		12,613		278,369
Transcend Services, Inc. (a)		4,103		97,364
				7,224,936
Common Stocks	Shares		Value
Health Care: Miscellaneous — 0.1%
MedAssets, Inc. (a)		22,561	$	208,689
The Providence Service Corp. (a)		6,087		83,757
				292,446
Home Building — 0.3%
Beazer Homes USA, Inc. (a)(b)		35,484		88,000
Hovnanian Enterprises, Inc., Class A (a)(b)		29,261		42,429
KB Home		36,488		245,199
M/I Homes, Inc. (a)		8,906		85,498
MDC Holdings, Inc.		17,806		313,920
Meritage Homes Corp. (a)(b)		13,242		307,082
Ryland Group, Inc.		21,024		331,338
Standard-Pacific Corp. (a)		50,460		160,463
				1,573,929
Hotel/Motel — 0.2%
Gaylord Entertainment Co. (a)		16,877		407,411
Marcus Corp.		9,730		122,695
Morgans Hotel Group Co. (a)		10,390		61,301
Orient Express Hotels Ltd., Class A (a)		45,225		337,831
Red Lion Hotels Corp. (a)		6,853		47,491
				976,729
Household Appliances — 0.0%
National Presto Industries, Inc.		2,272		212,659
Household Equipment & Products — 0.2%
American Greetings Corp., Class A		19,151		239,579
Blyth, Inc.		2,468		140,182
Central Garden & Pet Co., Class A (a)		19,962		166,084
CSS Industries, Inc.		3,805		75,796
Helen of Troy Ltd. (a)(b)		14,639		449,417
Libbey, Inc. (a)		9,434		120,189
Summer Infant, Inc. (a)		6,386		44,958
				1,236,205
Household Furnishings — 0.3%
American Woodmark Corp.		4,442		60,678
Ethan Allen Interiors, Inc.		11,455		271,598
Furniture Brands International, Inc. (a)		17,997		22,136
Kirkland’s, Inc. (a)		7,813		103,913
La-Z-Boy, Inc. (a)		24,613		292,895
Lifetime Brands, Inc.		4,588		55,698
Sealy Corp. (a)		22,615		38,898
Select Comfort Corp. (a)		26,369		571,943
				1,417,759
Insurance: Life — 0.7%
American Equity Investment Life Holding Co.		28,222		293,509
Citizens, Inc. (a)		18,001		174,430
CNO Financial Group, Inc. (a)(b)		105,106		663,219
Delphi Financial Group, Inc., Class A		22,895		1,014,248
FBL Financial Group, Inc., Class A		6,097		207,420
Independence Holding Co.		3,234		26,292
Kansas City Life Insurance Co.		1,939		63,638
National Western Life Insurance Co., Class A		1,025		139,564
The Phoenix Cos., Inc. (a)		55,522		93,277
Presidential Life Corp.		10,338		103,276
Primerica, Inc.		16,070		373,467
Symetra Financial Corp.		32,141		291,519
				3,443,859

See Notes to Financial Statements.
26	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Insurance: Multi-Line — 0.5%
Alterra Capital Holdings Ltd.		43,121	$	1,018,949
Crawford & Co., Class B		12,825		79,002
eHealth, Inc. (a)		9,732		143,061
Flagstone Reinsurance Holdings SA		25,091		208,004
Fortegra Financial Corp. (a)		2,884		19,265
Horace Mann Educators Corp.		19,062		261,340
Maiden Holdings Ltd.		24,243		212,369
Pico Holdings, Inc. (a)		10,804		222,346
Platinum Underwriters Holdings Ltd.		17,744		605,248
				2,769,584
Insurance: Property-Casualty — 1.6%
American Safety Insurance Holdings Ltd. (a)		4,999		108,728
Amerisafe, Inc. (a)		8,816		204,972
AmTrust Financial Services, Inc.		11,563		274,621
Argo Group International Holdings Ltd.		13,125		380,100
Baldwin & Lyons, Inc., Class B		4,154		90,557
Donegal Group, Inc., Class A		3,731		52,831
EMC Insurance Group, Inc.		2,404		49,450
Employers Holdings, Inc.		10,430		188,679
Enstar Group Ltd. (a)(b)		3,270		321,114
First American Financial Corp.		50,011		633,639
Global Indemnity Plc (a)		6,538		129,649
Greenlight Capital Re Ltd. (a)		13,364		316,326
Hallmark Financial Services, Inc. (a)		5,643		39,445
Harleysville Group, Inc.		5,832		329,916
Hilltop Holdings, Inc. (a)		19,048		160,956
Infinity Property & Casualty Corp.		5,929		336,411
Meadowbrook Insurance Group, Inc.		25,541		272,778
Montpelier Re Holdings Ltd. (b)		29,708		527,317
National Interstate Corp.		3,410		84,125
Navigators Group, Inc. (a)		5,566		265,387
OneBeacon Insurance Group Ltd.		10,682		164,396
ProAssurance Corp.		14,523		1,159,226
Radian Group, Inc.		63,300		148,122
RLI Corp.		8,749		637,452
Safety Insurance Group, Inc.		6,101		246,969
SeaBright Holdings, Inc.		9,719		74,350
Selective Insurance Group, Inc.		25,804		457,505
State Auto Financial Corp.		7,153		97,209
Stewart Information Services Corp.		8,673		100,173
Tower Group, Inc.		17,623		355,456
United Fire & Casualty Co.		10,340		208,661
Universal Insurance Holdings, Inc.		9,601		34,372
				8,450,892
International Trade & Diversified Logistic — 0.0%
Global Sources Ltd. (a)		5,710		27,694
Leisure Time — 1.0%
Black Diamond, Inc. (a)		6,315		47,173
Callaway Golf Co.		30,501		168,671
Churchill Downs, Inc.		5,942		309,756
International Speedway Corp., Class A		13,960		353,886
Interval Leisure Group, Inc. (a)		19,070		259,543
Johnson Outdoors, Inc. (a)		2,238		34,353
Life Time Fitness, Inc. (a)		20,029		936,356
Orbitz Worldwide, Inc. (a)		9,706		36,495
Pool Corp.		22,827		687,093
Six Flags Entertainment Corp.		19,748		814,408
Smith & Wesson Holding Corp. (a)		28,537		124,421
Speedway Motorsports, Inc.		5,600		85,848
Common Stocks	Shares		Value
Leisure Time (concluded)
Steinway Musical Instruments, Inc. (a)		3,113	$	77,950
Sturm Ruger & Co., Inc.		8,939		299,099
Town Sports International Holdings, Inc. (a)		9,527		70,023
Vail Resorts, Inc.		17,051		722,280
West Marine, Inc. (a)		6,834		79,479
				5,106,834
Luxury Items — 0.0%
Movado Group, Inc.		8,215		149,267
Machinery: Agricultural — 0.2%
Alamo Group, Inc.		3,161		85,126
Lindsay Manufacturing Co.		5,949		326,541
Titan International, Inc.		19,942		388,071
Titan Machinery, Inc. (a)		7,295		158,520
				958,258
Machinery: Construction & Handling — 0.1%
Astec Industries, Inc. (a)(b)		9,444		304,191
Douglas Dynamics, Inc.		8,847		129,343
NACCO Industries, Inc., Class A		2,762		246,426
				679,960
Machinery: Engines — 0.1%
Briggs & Stratton Corp.		23,907		370,319
Machinery: Industrial — 1.3%
Actuant Corp., Class A		32,487		737,130
Altra Holdings, Inc. (a)		12,752		240,120
Applied Industrial Technologies, Inc.		20,078		706,143
Chart Industries, Inc. (a)		13,922		752,763
Colfax Corp. (a)(b)		11,643		331,593
Columbus McKinnon Corp. (a)		9,137		115,949
DXP Enterprises, Inc. (a)		4,107		132,245
EnPro Industries, Inc. (a)		9,771		322,248
Flow International Corp. (a)		22,530		78,855
Graham Corp.		4,683		105,086
John Bean Technologies Corp.		13,578		208,694
Kadant, Inc. (a)		5,840		132,042
Middleby Corp. (a)		8,873		834,417
MTS Systems Corp.		7,391		301,183
Omega Flex, Inc. (a)		1,035		14,625
Sauer-Danfoss, Inc. (a)		5,491		198,829
Tecumseh Products Co., Class A (a)		9,230		43,381
Tennant Co.		9,074		352,706
Twin Disc, Inc.		4,023		146,115
Woodward, Inc.		29,162		1,193,601
				6,947,725
Machinery: Specialty — 0.1%
Albany International Corp., Class A		13,090		302,641
Cascade Corp.		4,350		205,189
Hurco Cos., Inc. (a)		3,007		63,147
Xerium Technologies, Inc. (a)		4,914		32,138
				603,115
Manufactured Housing — 0.0%
Cavco Industries, Inc. (a)		3,234		129,554
Skyline Corp.		3,592		15,625
				145,179

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	27

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Medical & Dental Instruments & Supplies — 2.3%
Abiomed, Inc. (a)		15,032	$	277,641
Align Technology, Inc. (a)		29,091		690,184
Alphatec Holdings, Inc. (a)		26,027		44,766
AngioDynamics, Inc. (a)		11,832		175,232
Antares Pharma, Inc. (a)		41,066		90,345
AtriCure, Inc. (a)		6,689		74,248
Atrion Corp.		745		178,971
Biolase Technology, Inc. (a)(b)		15,131		38,887
Cantel Medical Corp.		6,260		174,842
Cardiovascular Systems, Inc. (a)		7,037		69,314
Cerus Corp. (a)		22,757		63,720
Conceptus, Inc. (a)(b)		14,783		186,857
CONMED Corp. (a)		13,407		344,158
CryoLife, Inc. (a)		13,061		62,693
Delcath Systems, Inc. (a)		22,814		69,583
Endologix, Inc. (a)(b)		23,197		266,302
Exactech, Inc. (a)		3,914		64,464
Hansen Medical, Inc. (a)		22,917		59,126
Heartware International, Inc. (a)(b)		5,667		391,023
ICU Medical, Inc. (a)(b)		5,745		258,525
Insulet Corp. (a)		21,774		410,004
Integra LifeSciences Holdings Corp. (a)		9,273		285,887
Invacare Corp.		13,565		207,409
Landauer, Inc.		4,458		229,587
MAKO Surgical Corp. (a)(b)		15,142		381,730
Medical Action Industries, Inc. (a)		7,424		38,827
Medtox Scientific, Inc. (a)		3,636		51,086
Meridian Bioscience, Inc.		19,492		367,229
Merit Medical Systems, Inc. (a)		19,871		265,874
Navidea Biopharmaceuticals, Inc. (a)(b)		44,826		117,444
Neogen Corp. (a)(b)		11,018		337,591
NuVasive, Inc. (a)		20,025		252,115
OraSure Technologies, Inc. (a)		22,164		201,914
Orthofix International NV (a)(b)		8,540		300,864
Owens & Minor, Inc.		30,182		838,758
PSS World Medical, Inc. (a)		26,276		635,616
Quidel Corp. (a)		13,503		204,300
Rockwell Medical Technologies, Inc. (a)		7,600		64,372
Staar Surgical Co. (a)		16,890		177,176
Steris Corp.		28,068		836,988
SurModics, Inc. (a)		7,255		106,358
Symmetry Medical, Inc. (a)(b)		17,287		138,123
Synovis Life Technologies, Inc. (a)		5,430		151,117
Tornier NV (a)		5,003		90,054
Unilife Corp. (a)(b)		31,256		97,519
Uroplasty, Inc. (a)		9,381		39,869
Vascular Solutions, Inc. (a)		8,035		89,430
Volcano Corp. (a)(b)		24,687		587,304
West Pharmaceutical Services, Inc.		15,857		601,773
Wright Medical Group, Inc. (a)		18,472		304,788
Young Innovations, Inc.		2,668		79,053
				12,071,040
Medical Equipment — 1.2%
Abaxis, Inc. (a)		10,684		295,626
Accuray, Inc. (a)(b)		32,499		137,471
Affymetrix, Inc. (a)		33,479		136,929
Analogic Corp.		5,942		340,595
ArthroCare Corp. (a)		12,943		410,034
Bacterin International Holdings, Inc. (a)		11,255		32,189
Cyberonics, Inc. (a)(b)		13,413		449,336
Common Stocks	Shares		Value
Medical Equipment (concluded)
Cynosure, Inc., Class A (a)		4,437	$	52,179
DexCom, Inc. (a)(b)		31,840		296,430
Fluidigm Corp. (a)		3,010		39,612
Greatbatch, Inc. (a)(b)		11,021		243,564
Haemonetics Corp. (a)		12,151		743,884
IRIS International, Inc. (a)		8,469		79,185
Luminex Corp. (a)(b)		17,913		380,293
Masimo Corp. (a)		24,916		465,556
Merge Healthcare, Inc. (a)(b)		26,322		127,662
Natus Medical, Inc. (a)(b)		13,783		129,974
NxStage Medical, Inc. (a)(b)		21,142		375,905
Palomar Medical Technologies, Inc. (a)		8,833		82,147
Solta Medical, Inc. (a)		28,997		91,051
SonoSite, Inc. (a)		6,525		351,437
Spectranetic Corp. (a)		15,846		114,408
Stereotaxis, Inc. (a)(b)		22,866		18,832
Synergetics USA, Inc. (a)		10,435		77,010
Zeltiq Aesthetics, Inc. (a)(b)		3,371		38,295
Zoll Medical Corp. (a)		10,385		656,124
				6,165,728
Medical Services — 0.2%
Bio-Reference Labs, Inc. (a)		11,626		189,155
eResearch Technology, Inc. (a)		23,294		109,249
Neostem, Inc. (a)		10,587		5,367
Parexel International Corp. (a)		27,893		578,501
RadNet, Inc. (a)		15,292		32,572
				914,844
Metal Fabricating — 0.6%
Ampco-Pittsburgh Corp.		4,056		78,443
Compx International, Inc.		465		6,849
Dynamic Materials Corp.		6,343		125,465
Haynes International, Inc.		5,787		315,970
Kaydon Corp.		15,457		471,438
L.B. Foster Co., Class A		4,278		121,025
Lawson Products, Inc.		1,669		25,753
Metals USA Holdings Corp. (a)		5,466		61,492
Mueller Industries, Inc.		17,918		688,410
Mueller Water Products, Inc., Series A		73,779		180,021
NN, Inc. (a)		7,696		46,176
Northwest Pipe Co. (a)		4,314		98,618
RBC Bearings, Inc. (a)(b)		10,388		433,180
RTI International Metals, Inc. (a)		14,290		331,671
Worthington Industries, Inc.		27,245		446,273
				3,430,784
Metals & Minerals: Diversified — 0.6%
AMCOL International Corp.		11,555		310,252
General Moly, Inc. (a)(b)		31,951		98,729
Globe Specialty Metals, Inc.		29,875		400,026
Hecla Mining Co.		132,357		692,227
Materion Corp. (a)(b)		9,674		234,885
Minerals Technologies, Inc.		8,637		488,250
Oil-Dri Corp. of America		2,369		47,948
Paramount Gold and Silver Corp. (a)(b)		55,682		119,159
SunCoke Energy, Inc. (a)		6,236		69,843
Thompson Creek Metals Co., Inc. (a)		72,435		504,148
United States Lime & Minerals, Inc. (a)		1,227		73,755
Ur-Energy, Inc. (a)		52,825		45,377
Uranerz Energy Corp. (a)(b)		30,397		55,322

See Notes to Financial Statements.
28	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (continued) Master Small Cap Index Series
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Metals & Minerals: Diversified (concluded)
Uranium Resources, Inc. (a)(b)		47,358	$	34,382
US Energy Corp. — Wyoming (a)		12,129		35,295
				3,209,598
Miscellaneous Consumer Staples — 0.0%
Spectrum Brands Holdings, Inc. (a)		7,890		216,186
Office Supplies & Equipment — 0.6%
ACCO Brands Corp. (a)		26,177		252,608
AT Cross Co. (a)		4,711		53,140
Electronics for Imaging, Inc. (a)		22,108		315,039
Herman Miller, Inc.		27,163		501,157
HNI Corp.		21,239		554,338
Kimball International, Inc., Class B		14,562		73,829
Knoll, Inc.		22,706		337,184
Steelcase, Inc., Class A		37,773		281,787
United Stationers, Inc.		20,191		657,419
				3,026,501
Offshore Drilling & Other Services — 0.1%
Hercules Offshore, Inc. (a)		54,560		242,246
Vantage Drilling Co. (a)		81,823		94,915
				337,161
Oil Well Equipment & Services — 1.9%
Basic Energy Services, Inc. (a)(b)		11,412		224,816
Cal Dive International, Inc. (a)		45,279		101,878
Complete Production Services, Inc. (a)		37,404		1,255,278
Dawson Geophysical Co. (a)(b)		3,753		148,356
Dril-Quip, Inc. (a)		16,281		1,071,615
Exterran Holdings, Inc. (a)		30,232		275,111
Flotek Industries, Inc. (a)		23,662		235,674
Geokinetics, Inc. (a)		4,972		10,690
Global Geophysical Services, Inc. (a)		8,570		57,590
Golar LNG Ltd.		18,899		840,061
Gulf Island Fabrication, Inc.		6,818		199,154
Helix Energy Solutions Group, Inc. (a)		50,225		793,555
Hornbeck Offshore Services, Inc. (a)		14,614		453,326
ION Geophysical Corp. (a)		62,335		382,114
Key Energy Services, Inc. (a)(b)		59,128		914,710
Lufkin Industries, Inc.		14,433		971,485
Matrix Service Co. (a)		12,587		118,821
Mitcham Industries, Inc. (a)		5,707		124,641
Natural Gas Services Group, Inc. (a)		5,790		83,723
Newpark Resources, Inc. (a)(b)		42,869		407,256
OYO Geospace Corp. (a)(b)		2,059		159,222
Parker Drilling Co. (a)		55,343		396,809
Pioneer Drilling Co. (a)		29,247		283,111
RigNet, Inc. (a)		2,632		44,060
Tesco Corp. (a)		14,361		181,523
Tetra Technologies, Inc. (a)		36,470		340,630
Union Drilling, Inc. (a)		6,948		43,356
Willbros Group, Inc. (a)		19,055		69,932
				10,188,497
Oil: Crude Producers — 3.1%
Abraxas Petroleum Corp. (a)		39,095		129,014
Apco Oil and Gas International, Inc.		4,327		353,602
Approach Resources, Inc. (a)		12,348		363,155
ATP Oil & Gas Corp. (a)(b)		21,096		155,267
Berry Petroleum Co., Class A		24,425		1,026,339
Bill Barrett Corp. (a)		22,347		761,362
Common Stocks	Shares		Value
Oil: Crude Producers (concluded)
BPZ Resources, Inc. (a)(b)		48,421	$	137,516
Callon Petroleum Co. (a)		18,282		90,862
CAMAC Energy, Inc. (a)		30,744		31,051
Carrizo Oil & Gas, Inc. (a)		18,443		485,973
Cheniere Energy, Inc. (a)		39,224		340,857
Clayton Williams Energy, Inc. (a)		2,801		212,540
Comstock Resources, Inc. (a)		22,561		345,183
Contango Oil & Gas Co. (a)		5,769		335,640
Crimson Exploration, Inc. (a)		10,671		30,519
Endeavour International Corp. (a)(b)		17,609		153,022
Energy Partners Ltd. (a)		13,752		200,779
Energy XXI Bermuda Ltd. (a)		35,686		1,137,670
Evolution Petroleum Corp. (a)		7,349		59,159
FX Energy, Inc. (a)		24,891		119,477
Gastar Exploration Ltd. (a)		27,138		86,299
GeoResources, Inc. (a)		9,515		278,885
GMX Resources, Inc. (a)(b)		29,313		36,641
Goodrich Petroleum Corp. (a)		12,264		168,385
Gulfport Energy Corp. (a)(b)		21,612		636,473
Harvest Natural Resources, Inc. (a)(b)		16,095		118,781
Houston American Energy Corp. (a)		7,876		96,008
Hyperdynamics Corp. (a)(b)		73,797		180,803
Isramco, Inc. (a)(b)		519		46,482
Kodiak Oil & Gas Corp. (a)		122,099		1,159,940
Magnum Hunter Resources Corp. (a)(b)		52,832		284,764
McMoRan Exploration Co. (a)		46,551		677,317
Northern Oil And Gas, Inc. (a)		29,918		717,434
Oasis Petroleum, Inc. (a)		28,205		820,483
Panhandle Oil & Gas, Inc.		3,334		109,389
Penn Virginia Corp.		21,677		114,671
Petroleum Development Corp. (a)(b)		11,148		391,406
Petroquest Energy, Inc. (a)		26,582		175,441
Resolute Energy Corp. (a)		21,799		235,429
Rex Energy Corp. (a)		16,543		244,175
Rosetta Resources, Inc. (a)		25,101		1,091,893
Stone Energy Corp. (a)		23,223		612,623
Swift Energy Co. (a)		20,100		597,372
Triangle Petroleum Corp. (a)		20,435		121,997
Vaalco Energy, Inc. (a)		24,357		147,116
Venoco, Inc. (a)		14,035		95,017
Voyager Oil & Gas, Inc. (a)		22,061		56,697
W&T Offshore, Inc.		16,551		351,047
Warren Resources, Inc. (a)		34,143		111,306
Zion Oil & Gas, Inc. (a)		14,905		32,940
				16,266,201
Oil: Integrated — 0.1%
Targa Resources, Inc.		7,763		315,876
Oil: Refining & Marketing — 0.6%
Alon USA Energy, Inc.		5,327		46,398
Clean Energy Fuels Corp. (a)(b)		23,709		295,414
CVR Energy, Inc. (a)		41,695		780,947
Delek US Holdings, Inc.		6,993		79,790
Miller Energy Resources, Inc. (a)(b)		14,093		39,320
Western Refining, Inc.		25,158		334,350
World Fuel Services Corp.		33,656		1,412,879
				2,989,098

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	29

Schedule of Investments (continued) Master Small Cap Index Series
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Paints & Coatings — 0.1%
Chase Corp.		2,961	$	41,158
Ferro Corp. (a)		41,124		201,096
H.B. Fuller Co.		23,426		541,375
				783,629
Paper — 0.5%
Boise, Inc.		43,378		308,851
Buckeye Technologies, Inc.		18,895		631,849
Clearwater Paper Corp. (a)		10,888		387,722
Kapstone Paper and Packaging Corp. (a)		18,475		290,797
Neenah Paper, Inc. (a)		7,042		157,177
P.H. Glatfelter Co.		20,610		291,013
Schweitzer-Mauduit International, Inc.		7,619		506,359
Verso Paper Corp. (a)		7,798		7,486
Wausau Paper Corp.		23,292		192,392
				2,773,646
Personal Care — 0.1%
Female Health Co.		9,039		40,766
USANA Health Sciences, Inc. (a)		3,094		93,965
WD-40 Co.		7,584		306,469
				441,200
Pharmaceuticals — 2.1%
Achillion Pharmaceuticals, Inc. (a)		22,518		171,587
Acura Pharmaceuticals, Inc. (a)(b)		5,146		17,960
Akorn, Inc. (a)		26,658		296,437
Ampio Pharmaceuticals, Inc. (a)		9,874		42,162
Anacor Pharmaceuticals, Inc. (a)		4,928		30,554
Ardea Biosciences, Inc. (a)(b)		7,990		134,312
Auxilium Pharmaceuticals, Inc. (a)		22,704		452,491
Avanir Pharmaceuticals, Inc. (a)		58,920		120,786
BioCryst Pharmaceuticals, Inc. (a)		13,221		32,656
Biospecifics Technologies (a)		2,290		38,060
Cadence Pharmaceuticals, Inc. (a)		23,966		94,666
Cambrex Corp. (a)		13,881		99,666
Cleveland BioLabs, Inc. (a)		14,174		40,538
Columbia Laboratories, Inc. (a)(b)		18,549		46,373
Corcept Therapeutics, Inc. (a)		19,494		66,669
Depomed, Inc. (a)		25,551		132,354
Durect Corp. (a)		38,471		45,396
Dusa Pharmaceuticals, Inc. (a)		11,325		49,603
Endocyte, Inc. (a)		8,597		32,325
Hi-Tech Pharmacal Co., Inc. (a)		4,926		191,572
Impax Laboratories, Inc. (a)(b)		30,988		625,028
Infinity Pharmaceuticals, Inc. (a)		9,072		80,196
Ironwood Pharmaceuticals, Inc. (a)		23,990		287,160
Isis Pharmaceuticals, Inc. (a)		47,196		340,283
ISTA Pharmaceuticals, Inc. (a)		15,264		107,611
Jazz Pharmaceuticals, Inc. (a)		10,474		404,611
K-V Pharmaceutical Co., Class A (a)		23,470		32,858
Lannett Co., Inc. (a)		8,104		35,820
MAP Pharmaceuticals, Inc. (a)		10,405		137,034
The Medicines Co. (a)		25,557		476,382
Medicis Pharmaceutical Corp., Class A		29,273		973,327
Obagi Medical Products, Inc. (a)		8,902		90,444
Optimer Pharmaceuticals, Inc. (a)(b)		21,947		268,631
Pacira Pharmaceuticals, Inc. (a)		3,318		28,701
Pain Therapeutics, Inc. (a)		18,264		69,403
Par Pharmaceutical Cos., Inc. (a)		17,182		562,367
Pernix Therapeutics Holdings, Inc. (a)		1,687		15,622
Common Stocks	Shares		Value
Pharmaceuticals (concluded)
Pharmacyclics, Inc. (a)		21,753	$	322,379
Pozen, Inc. (a)		12,270		48,467
Prestige Brands Holdings, Inc. (a)		23,899		269,342
Questcor Pharmaceuticals, Inc. (a)		25,174		1,046,735
Sagent Pharmaceuticals, Inc. (a)		3,074		64,554
Salix Pharmaceuticals Ltd. (a)		27,677		1,324,344
Santarus, Inc. (a)		25,288		83,703
Sciclone Pharmaceuticals, Inc. (a)(b)		16,383		70,283
SIGA Technologies, Inc. (a)(b)		15,618		39,357
Spectrum Pharmaceuticals, Inc. (a)(b)		27,212		398,112
Vical, Inc. (a)		34,062		150,213
Vivus, Inc. (a)		42,154		411,001
Xenoport, Inc. (a)		16,389		62,442
Zogenix, Inc. (a)		9,795		21,941
				10,984,518
Photography — 0.0%
Eastman Kodak Co. (a)(b)		137,534		89,328
Plastics — 0.1%
A. Schulman, Inc.		14,633		309,927
Spartech Corp. (a)		14,719		69,621
				379,548
Power Transmission Equipment — 0.2%
Active Power, Inc. (a)		40,379		26,650
Advanced Energy Industries, Inc. (a)		20,680		221,896
Generac Holdings, Inc. (a)		11,802		330,810
Global Power Equipment Group, Inc. (a)		7,461		177,199
Maxwell Technologies, Inc. (a)		13,224		214,758
Powell Industries, Inc. (a)		4,174		130,563
Power-One, Inc. (a)		32,347		126,477
Vicor Corp.		9,374		74,617
				1,302,970
Precious Metals & Minerals — 0.2%
Golden Minerals Co. (a)		13,345		77,535
Horsehead Holding Corp. (a)		20,743		186,894
Stillwater Mining Co. (a)		54,646		571,597
				836,026
Printing & Copying Services — 0.0%
Casella Waste Systems, Inc. (a)		11,898		76,147
Cenveo, Inc. (a)		25,778		87,645
				163,792
Producer Durables: Miscellaneous — 0.1%
Blount International, Inc. (a)		23,010		334,105
Park-Ohio Holdings Corp. (a)(b)		3,889		69,380
				403,485
Production Technology Equipment — 1.3%
ATMI, Inc. (a)(b)(c)		15,023		300,911
Axcelis Technologies, Inc. (a)		50,821		67,592
Brooks Automation, Inc.		31,418		322,663
Cognex Corp.		19,650		703,274
Cohu, Inc.		11,475		130,241
Cymer, Inc. (a)		14,461		719,579
Electro Scientific Industries, Inc.		10,686		154,733
Entegris, Inc. (a)		63,753		556,245
FEI Co. (a)		18,330		747,497
FSI International, Inc. (a)		18,509		67,743
GSI Group, Inc. (a)		12,244		125,256
Intevac, Inc. (a)(b)		10,909		80,727
Kulicke & Soffa Industries, Inc. (a)		34,180		316,165

See Notes to Financial Statements.
30	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (continued) Master Small Cap Index Series
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Production Technology Equipment (concluded)
LTX-Credence Corp. (a)		23,507	$	125,763
MKS Instruments, Inc.		24,760		688,823
Nanometrics, Inc. (a)		9,536		175,653
Photronics, Inc. (a)		27,962		170,009
Rudolph Technologies, Inc. (a)(b)		14,997		138,872
Tessera Technologies, Inc. (a)		24,262		406,389
Ultra Clean Holdings, Inc. (a)		10,712		65,450
Ultratech, Inc. (a)		11,911		292,653
Veeco Instruments, Inc. (a)		19,309		401,627
				6,757,865
Publishing — 0.4%
AH Belo Corp.		8,552		40,622
Courier Corp.		4,851		56,902
The Dolan Co. (a)		14,336		122,143
Journal Communications, Inc., Class A (a)		20,633		90,785
Martha Stewart Living Omnimedia, Inc., Class A		12,937		56,923
McClatchy Co., Class A (a)(b)		27,142		64,869
Meredith Corp.		17,216		562,102
The New York Times Co., Class A (a)		64,963		502,164
Scholastic Corp.		12,577		376,933
Value Line, Inc.		699		7,186
				1,880,629
Radio & TV Broadcasters — 0.2%
Central European Media Enterprises, Ltd. (a)		17,350		113,122
Crown Media Holdings, Inc., Class A (a)(b)		18,488		22,370
Cumulus Media, Inc., Class A (a)		17,291		57,752
Dial Global, Inc. (a)(b)		2,711		8,648
Entercom Communications Corp. (a)		11,465		70,510
Entravision Communications Corp., Class A		25,376		39,587
Fisher Communications, Inc. (a)		4,138		119,299
Gray Television, Inc. (a)		24,582		39,823
Lin TV Corp., Class A (a)		13,877		58,700
Nexstar Broadcasting Group, Inc., Class A (a)		4,924		38,604
Outdoor Channel Holdings, Inc.		6,875		51,287
Saga Communications, Inc. (a)		1,766		66,013
Sinclair Broadcast Group, Inc., Class A		23,901		270,798
				956,513
Railroad Equipment — 0.1%
American Railcar Industries, Inc. (a)		4,644		111,131
Freightcar America, Inc. (a)		5,687		119,142
Greenbrier Cos., Inc. (a)(b)		9,371		227,528
				457,801
Railroads — 0.2%
Genesee & Wyoming, Inc., Class A (a)		18,773		1,137,268
Railamerica, Inc. (a)		10,096		150,330
				1,287,598
Real Estate — 0.2%
Avatar Holdings, Inc. (a)		4,497		32,288
Consolidated-Tomoka Land Co.		1,911		51,731
Forestar Group, Inc. (a)		16,822		254,517
Griffin Land & Nurseries, Inc.		1,164		30,799
HFF, Inc., Class A (a)		13,975		144,362
Kennedy-Wilson Holdings, Inc.		12,531		132,578
Tejon Ranch Co. (a)		6,748		165,191
				811,466
Common Stocks	Shares		Value
Real Estate Investment Trusts (REITs) — 8.8%
Acadia Realty Trust		20,137	$	405,559
AG Mortgage Investment Trust, Inc.		3,062		61,638
Agree Realty Corp.		4,742		115,610
Alexander’s, Inc.		971		359,299
American Assets Trust, Inc.		15,204		311,834
American Campus Communities, Inc. (b)		32,143		1,348,720
American Capital Mortgage Investment Corp.		3,909		73,567
Anworth Mortgage Asset Corp.		64,052		402,247
Apollo Commercial Real Estate Finance, Inc.		9,499		124,722
ARMOUR Residential REIT, Inc.		43,834		309,030
Ashford Hospitality Trust, Inc.		24,768		198,144
Associated Estates Realty Corp. (b)		19,664		313,641
BioMed Realty Trust, Inc.		72,964		1,319,189
Campus Crest Communities, Inc.		14,513		146,001
CapLease, Inc.		32,521		131,385
Capstead Mortgage Corp.		40,185		499,901
CBL & Associates Properties, Inc.		70,399		1,105,264
Cedar Realty Trust, Inc. (b)		26,860		115,767
Chatham Lodging Trust		6,479		69,844
Chesapeake Lodging Trust		15,357		237,419
Cogdell Spencer, Inc.		21,267		90,385
Colonial Properties Trust		39,605		826,160
Colony Financial, Inc.		15,599		245,060
Coresite Realty Corp.		9,402		167,544
Cousins Properties, Inc.		43,528		279,014
CreXus Investment Corp.		27,378		284,184
CubeSmart		58,198		619,227
CYS Investments, Inc.		39,038		512,959
DCT Industrial Trust, Inc. (b)		116,750		597,760
DiamondRock Hospitality Co. (b)		79,639		767,720
Dupont Fabros Technology, Inc. (b)		27,889		675,472
Dynex Capital Corp. (b)		19,046		173,890
Eastgroup Properties, Inc. (b)		12,823		557,544
Education Realty Trust, Inc.		43,647		446,509
Entertainment Properties Trust		22,142		967,827
Equity Lifestyle Properties, Inc.		14,552		970,473
Equity One, Inc.		25,574		434,247
Excel Trust, Inc.		14,478		173,736
Extra Space Storage, Inc.		44,523		1,078,792
FelCor Lodging Trust, Inc. (a)(b)		59,255		180,728
First Industrial Realty Trust, Inc. (a)		41,078		420,228
First Potomac Realty Trust		23,835		311,047
Franklin Street Properties Corp.		33,899		337,295
Getty Realty Corp.		12,483		174,138
Gladstone Commercial Corp.		5,278		92,629
Glimcher Realty Trust (b)		50,927		468,528
Government Properties Income Trust		16,874		380,509
Hatteras Financial Corp.		35,450		934,817
Healthcare Realty Trust, Inc. (b)		36,970		687,272
Hersha Hospitality Trust (b)		67,135		327,619
Highwoods Properties, Inc.		34,223		1,015,396
Home Properties, Inc.		22,735		1,308,854
Hudson Pacific Properties, Inc.		10,451		147,986
Inland Real Estate Corp.		36,938		281,098
InvesCo. Mortgage Capital, Inc.		54,883		771,106
Investors Real Estate Trust		38,380		279,982
iStar Financial, Inc. (a)		38,768		205,083
Kilroy Realty Corp.		27,727		1,055,567
Kite Realty Group Trust		26,774		120,751
LaSalle Hotel Properties		40,388		977,793
Lexington Corporate Properties Trust		57,057		427,357
LTC Properties, Inc. (b)		14,459		446,205

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	31

Schedule of Investments (continued) Master Small Cap Index Series
(Percentages shown are based on Net Assets)

Common Stocks	Shares			Value
Real Estate Investment Trusts (REITs) (concluded)
Medical Properties Trust, Inc.		53,322		$	526,288
MFA Financial, Inc.		169,299			1,137,689
Mid-America Apartment Communities, Inc.		17,371			1,086,556
Mission West Properties, Inc.		8,317			75,019
Monmouth Real Estate Investment Corp., Class A		18,412			168,470
MPG Office Trust, Inc. (a)		23,522			46,809
National Health Investors, Inc.		11,611			510,652
National Retail Properties, Inc.		49,500			1,305,810
Newcastle Investment Corp.		50,057			232,765
NorthStar Realty Finance Corp.		45,477			216,925
Omega Healthcare Investors, Inc. (b)		48,346			935,495
One Liberty Properties, Inc.		5,342			88,143
Parkway Properties, Inc.		10,326			101,814
Pebblebrook Hotel Trust		24,167			463,523
Pennsylvania Real Estate Investment Trust (b)		26,471			276,357
PennyMac Mortgage Investment Trust (d)		13,158			218,686
Post Properties, Inc.		23,611			1,032,273
Potlatch Corp. (b)		19,111			594,543
PS Business Parks, Inc.		8,838			489,890
RAIT Financial Trust		18,666			88,664
Ramco-Gershenson Properties Trust		18,454			181,403
Redwood Trust, Inc.		37,226			378,961
Resource Capital Corp.		36,793			206,409
Retail Opportunity Investments Corp.		23,410			277,174
RLJ Lodging Trust		13,104			220,540
Sabra Healthcare REIT, Inc.		17,561			212,312
Saul Centers, Inc.		3,471			122,943
Sovran Self Storage, Inc.		13,157			561,409
STAG Industrial, Inc.		7,275			83,444
Starwood Property Trust, Inc.		44,307			820,123
Strategic Hotel Capital, Inc. (a)		82,968			445,538
Summit Hotel Properties, Inc.		13,024			122,947
Sun Communities, Inc.		10,064			367,638
Sunstone Hotel Investors, Inc. (a)		56,088			457,117
Tanger Factory Outlet Centers, Inc.		40,689			1,193,001
Terreno Realty Corp.		4,348			65,829
Two Harbors Investment Corp.		66,738			616,659
UMH Properties, Inc.		5,972			55,599
Universal Health Realty Income Trust		3,196			124,644
Urstadt Biddle Properties, Inc., Class A		11,063			200,019
Walter Investment Management Corp.		12,226			250,755
Washington Real Estate Investment Trust		31,302			856,110
Whitestone REIT		3,393			40,377
Winthrop Realty Trust		13,820			140,549
					46,467,143
Recreational Vehicles & Boats — 0.2%
Arctic Cat, Inc. (a)		5,767			130,046
Brunswick Corp.		42,191			761,970
Drew Industries, Inc. (a)		9,061			222,266
Marine Products Corp. (a)		5,167			25,628
Winnebago Industries, Inc. (a)		13,802			101,859
					1,241,769
Rental & Leasing Services: Consumer — 0.6%
Amerco, Inc. (a)		4,103			362,705
Avis Budget Group, Inc. (a)		49,773			533,567
Dollar Thrifty Automotive Group, Inc. (a)(b)		13,704			962,843
Rent-A-Center, Inc.		27,827			1,029,599
Zipcar, Inc. (a)(b)		4,728			63,450
					2,952,164
Common Stocks	Shares		��	Value
Restaurants — 1.5%
AFC Enterprises, Inc. (a)		11,748		$	172,696
Benihana, Inc.		6,608			67,600
Biglari Holdings, Inc. (a)		574			211,370
BJ’s Restaurants, Inc. (a)		11,392			516,285
Bob Evans Farms, Inc.		14,370			481,970
Bravo Brio Restaurant Group, Inc. (a)		9,141			156,768
Buffalo Wild Wings, Inc. (a)(b)		8,672			585,447
Caribou Coffee Co., Inc. (a)		5,988			83,533
Carrols Restaurant Group, Inc. (a)		6,117			70,774
CEC Entertainment, Inc.		9,405			324,002
The Cheesecake Factory, Inc. (a)		27,375			803,456
Cracker Barrel Old Country Store, Inc.		10,866			547,755
Denny’s Corp. (a)		46,958			176,562
DineEquity, Inc. (a)(b)		7,325			309,188
Domino’s Pizza, Inc. (a)		27,560			935,662
Einstein Noah Restaurant Group, Inc.		2,927			46,305
Ellie Mae, Inc. (a)		4,123			23,295
Jack in the Box, Inc. (a)		20,802			434,762
Jamba, Inc. (a)		30,157			39,506
Krispy Kreme Doughnuts, Inc. (a)		27,765			181,583
Luby’s, Inc. (a)		9,063			40,874
McCormick & Schmick’s Seafood Restaurants, Inc. (a)		6,279			54,878
O’Charleys, Inc. (a)(b)		9,011			49,470
P.F. Chang’s China Bistro, Inc.		10,069			311,233
Papa John’s International, Inc. (a)		8,834			332,865
Red Robin Gourmet Burgers, Inc. (a)		6,146			170,244
Ruby Tuesday, Inc. (a)		30,978			213,748
Ruth’s Hospitality Group, Inc. (a)		16,781			83,402
Sonic Corp. (a)		29,287			197,102
Texas Roadhouse, Inc., Class A		29,859			444,899
					8,067,234
Scientific Instruments: Control & Filter — 0.7%
Brady Corp.		22,505			710,483
CIRCOR International, Inc.		8,163			288,236
Energy Recovery, Inc. (a)		21,246			54,815
ESCO Technologies, Inc.		12,605			362,772
The Gorman-Rupp Co.		7,232			196,349
Mine Safety Appliances Co.		12,901			427,281
PMFG, Inc. (a)		8,340			162,713
Robbins & Myers, Inc.		18,684			907,108
Sun Hydraulics, Inc.		9,550			223,756
Thermon Group Holdings, Inc. (a)		4,742			83,554
Watts Water Technologies, Inc., Class A		14,252			487,561
X-Rite, Inc. (a)		12,373			57,411
					3,962,039
Scientific Instruments: Electrical — 0.6%
A123 Systems, Inc. (a)		41,814			67,321
American Superconductor Corp. (a)(b)		21,173			78,128
A.O. Smith Corp.		18,001			722,200
AZZ, Inc.		5,942			270,005
Broadwind Energy, Inc. (a)		55,821			37,958
Coleman Cable, Inc. (a)		4,183			36,392
EnerSys (a)		22,602			586,974
Franklin Electric Co., Inc.		11,029			480,423
Houston Wire & Cable Co.		8,477			117,152
Littelfuse, Inc.		10,766			462,723
Preformed Line Products Co.		1,130			67,416
SatCon Technology Corp. (a)		25,649			15,392
Taser International, Inc. (a)		26,372			135,025
Valence Technology, Inc. (a)		36,478			35,748
					3,112,857

See Notes to Financial Statements.
32	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Scientific Instruments: Gauges & Meters — 0.2%
Badger Meter, Inc.		7,144	$	210,248
Faro Technologies, Inc. (a)		7,742		356,132
Measurement Specialties, Inc. (a)		7,089		198,209
Vishay Precision Group, Inc. (a)		5,788		92,492
Zygo Corp. (a)		7,548		133,222
				990,303
Scientific Instruments: Pollution Control — 0.6%
Clean Harbors, Inc. (a)(b)		22,189		1,414,105
Darling International, Inc. (a)		55,459		737,050
EnergySolutions, Inc. (a)		37,817		116,855
Fuel Tech, Inc. (a)		8,724		57,404
Heritage-Crystal Clean, Inc. (a)		2,328		38,552
Met-Pro Corp.		6,875		62,150
Metalico, Inc. (a)		18,767		61,743
Team, Inc. (a)(b)		9,223		274,384
TRC Cos., Inc. (a)		8,414		50,568
US Ecology, Inc.		8,742		164,175
WCA Waste Corp. (a)		7,998		52,067
				3,029,053
Securities Brokerage & Services — 0.4%
BGC Partners, Inc.		36,076		214,291
FXCM, Inc.		8,047		78,458
Gain Capital Holdings, Inc.		4,017		26,914
GFI Group, Inc.		33,832		139,388
Gladstone Investment Corp.		10,319		75,019
International FCStone, Inc. (a)		6,258		147,501
Investment Technology Group, Inc. (a)		19,558		211,422
KBW, Inc.		15,670		237,871
Knight Capital Group, Inc., Class A (a)(b)		47,508		561,545
Ladenburg Thalmann Financial Services, Inc. (a)		50,629		125,560
MarketAxess Holdings, Inc.		13,602		409,556
SWS Group, Inc.		13,881		95,362
				2,322,887
Semiconductors & Components — 2.5%
Advanced Analogic Technologies, Inc. (a)		20,241		116,993
Aeroflex Holding Corp. (a)		9,312		95,355
Alpha & Omega Semiconductor, Ltd. (a)		6,712		49,065
Amkor Technology, Inc. (a)		45,952		200,351
Amtech Systems, Inc. (a)		4,791		40,771
Anadigics, Inc. (a)		33,114		72,520
Applied Micro Circuits Corp. (a)		30,106		202,312
AXT, Inc. (a)		15,101		62,971
Cavium, Inc. (a)(b)		22,941		652,213
Ceva, Inc. (a)		10,912		330,197
Cirrus Logic, Inc. (a)(b)		31,390		497,532
Diodes, Inc. (a)		16,767		357,137
DSP Group, Inc. (a)		6,828		35,574
eMagin Corp. (a)		8,794		32,538
Emcore Corp. (a)		45,287		39,051
Entropic Communications, Inc. (a)		40,737		208,166
Exar Corp. (a)		17,246		112,099
Formfactor, Inc. (a)		23,966		121,268
GT Advanced Technologies, Inc. (a)		59,734		432,474
Hittite Microwave Corp. (a)		14,843		732,947
Inphi Corp. (a)		10,151		121,406
Integrated Device Technology, Inc. (a)		70,337		384,040
Integrated Silicon Solutions, Inc. (a)		12,738		116,425
IXYS Corp. (a)(b)		11,502		124,567

Common Stocks	Shares		Value
Semiconductors & Components (concluded)
Kopin Corp. (a)		31,808	$	123,415
Lattice Semiconductor Corp. (a)		55,925		332,195
MaxLinear, Inc., Class A (a)		7,258		34,476
Micrel, Inc.		23,977		242,407
Microsemi Corp. (a)		40,967		686,197
Mindspeed Technologies, Inc. (a)		16,376		75,002
MIPS Technologies, Inc. (a)		25,060		111,768
Monolithic Power Systems, Inc. (a)(b)		14,221		214,310
MoSys, Inc. (a)		14,912		62,630
Netlogic Microsystems, Inc. (a)		32,357		1,603,937
Omnivision Technologies, Inc. (a)(b)		27,520		336,707
Pericom Semiconductor Corp. (a)		11,937		90,841
PLX Technology, Inc. (a)		20,997		60,261
Power Integrations, Inc.		13,671		453,330
Rambus, Inc. (a)(b)		46,589		351,747
RF Micro Devices, Inc. (a)		130,895		706,833
Rubicon Technology, Inc. (a)		8,141		76,444
Semtech Corp. (a)(b)		30,919		767,410
Sigma Designs, Inc. (a)		14,969		89,814
Silicon Image, Inc. (a)		37,771		177,524
Spansion, Inc., Class A (a)		23,901		197,900
Standard Microsystems Corp. (a)		10,907		281,073
Supertex, Inc. (a)		4,884		92,210
TriQuint Semiconductor, Inc. (a)		77,968		379,704
Volterra Semiconductor Corp. (a)(b)		11,645		298,228
				12,984,335
Shipping — 0.3%
Baltic Trading Ltd.		7,643		36,304
DHT Holdings, Inc.		32,967		24,396
Eagle Bulk Shipping, Inc. (b)		31,914		30,066
Excel Maritime Carriers Ltd. (a)(b)		23,021		33,381
Frontline, Ltd. (b)		24,303		104,260
Genco Shipping & Trading Ltd. (a)		13,959		94,363
Gulfmark Offshore, Inc., Class A (a)		11,234		471,940
International Shipholding Corp.		2,580		48,220
Knightsbridge Tankers Ltd.		10,484		143,316
Nordic American Tankers Ltd.		22,468		269,391
Overseas Shipholding Group, Inc. (b)		12,618		137,915
Scorpio Tankers, Inc. (a)		14,308		69,966
Ship Finance International Ltd. (b)		21,504		200,847
Teekay Tankers Ltd., Class A		19,801		69,700
Ultrapetrol Bahamas Ltd. (a)(b)		10,220		30,456
				1,764,521
Specialty Retail — 3.5%
1-800-FLOWERS.COM, Inc., Class A (a)		12,405		27,291
Aéropostale, Inc. (a)(b)		38,282		583,800
America’s Car Mart, Inc. (a)		4,050		158,679
ANN, Inc. (a)		24,655		610,951
Asbury Automotive Group, Inc. (a)(b)		13,794		297,399
Ascena Retail Group, Inc. (a)		29,757		884,378
Barnes & Noble, Inc. (b)		13,761		199,259
bebe Stores, Inc.		18,298		152,422
Big 5 Sporting Goods Corp.		10,429		108,879
Blue Nile, Inc. (a)(b)		5,647		230,849
Body Central Corp. (a)		5,569		139,002
Brown Shoe Co., Inc.		19,927		177,350
The Buckle, Inc.		12,770		521,910
Build-A-Bear Workshop, Inc. (a)		6,847		57,926
Cabela’s, Inc., Class A (a)		20,510		521,364
Casual Male Retail Group, Inc. (a)		19,782		67,654

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	33

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Specialty Retail (concluded)
The Cato Corp., Class A		13,131	$	317,770
Charming Shoppes, Inc. (a)		55,178		270,372
The Children’s Place Retail Stores, Inc. (a)		12,352		656,138
Christopher & Banks Corp.		16,329		38,210
Citi Trends, Inc. (a)		6,846		60,108
Coldwater Creek, Inc. (a)		34,136		40,280
Collective Brands, Inc. (a)		29,157		418,986
Conn’s, Inc. (a)		6,889		76,468
Cost Plus, Inc. (a)		9,004		87,789
Destination Maternity Corp.		5,091		85,122
Express, Inc. (a)		26,150		521,431
The Finish Line, Inc., Class A		24,573		473,890
Francesca’s Holdings Corp. (a)		4,707		81,431
Genesco, Inc. (a)		11,219		692,661
Group 1 Automotive, Inc.		10,757		557,213
Haverty Furniture Cos., Inc.		8,913		97,865
hhgregg, Inc. (a)(b)		7,977		115,268
Hibbett Sports, Inc. (a)(b)		12,972		586,075
Hot Topic, Inc.		20,091		132,802
Jos. A. Bank Clothiers, Inc. (a)		13,086		638,073
Lithia Motors, Inc., Class A		10,441		228,240
Lumber Liquidators Holdings, Inc. (a)		10,957		193,501
MarineMax, Inc. (a)		11,075		72,209
Mattress Firm Holding Corp. (a)		2,841		65,883
The Men’s Wearhouse, Inc.		24,398		790,739
Monro Muffler, Inc.		14,430		559,740
New York & Co. (a)		13,808		36,729
Nu Skin Enterprises, Inc., Class A		25,970		1,261,363
Office Depot, Inc. (a)		131,668		283,086
OfficeMax, Inc. (a)(b)		40,715		184,846
Pacific Sunwear of California, Inc. (a)		21,866		37,391
Penske Auto Group, Inc.		21,121		406,579
The Pep Boys — Manny, Moe & Jack		24,952		274,472
Pier 1 Imports, Inc. (a)		46,518		647,996
Regis Corp.		27,366		452,907
Rue21, Inc. (a)		7,101		153,382
Shoe Carnival, Inc. (a)		4,340		111,538
Shutterfly, Inc. (a)(b)		14,089		320,666
Sonic Automotive, Inc.		19,073		282,471
Stage Stores, Inc.		14,775		205,225
Stamps.com, Inc. (a)		5,024		131,277
Stein Mart, Inc. (a)		13,130		89,415
Systemax, Inc. (a)		5,123		84,068
The Talbots, Inc. (a)		32,730		87,062
Teavana Holdings, Inc. (a)(b)		3,323		62,406
Vitamin Shoppe, Inc. (a)(b)		11,737		468,072
The Wet Seal, Inc., Class A (a)(b)		42,954		140,030
Zale Corp. (a)		15,179		57,832
Zumiez, Inc. (a)		10,081		279,849
				18,656,039
Steel — 0.1%
Carbonite, Inc. (a)(b)		3,583		39,772
Handy & Harman Ltd. (a)		2,848		28,195
Olympic Steel, Inc.		4,391		102,398
Shiloh Industries, Inc. (a)		2,458		20,598
TMS International Corp. (a)		6,026		59,537
Universal Stainless & Alloy Products, Inc. (a)		3,373		126,015
				376,515

Common Stocks	Shares		Value
Sugar — 0.0%
Imperial Sugar Co., New Shares		6,145	$	21,938
Synthetic Fibers & Chemicals — 0.0%
Zoltek Cos., Inc. (a)		13,062		99,532
Technology: Miscellaneous — 0.4%
Benchmark Electronics, Inc. (a)(b)		28,743		387,168
CTS Corp.		16,321		150,153
Fabrinet (a)		9,664		132,204
Pendrell Corp. (a)		72,206		184,847
Plexus Corp. (a)(b)		16,842		461,134
Sanmina-SCI Corp. (a)		38,163		355,298
Vocus, Inc. (a)(b)		8,346		184,363
				1,855,167
Telecommunications Equipment — 0.2%
Arris Group, Inc. (a)		58,618		634,247
Brightpoint, Inc. (a)		32,309		347,645
Communications Systems, Inc.		3,259		45,821
OpNext, Inc. (a)		22,764		18,389
Powerwave Technologies, Inc. (a)		15,092		31,391
Symmetricom, Inc. (a)		20,561		110,824
Ubiquiti Networks, Inc. (a)		4,122		75,144
				1,263,461
Textile Products — 0.1%
Interface, Inc., Class A		25,007		288,581
Unifi, Inc. (a)		6,344		48,214
				336,795
Textiles Apparel & Shoes — 1.5%
Carter’s, Inc. (a)		23,272		926,458
Cherokee, Inc.		3,904		45,560
Columbia Sportswear Co.		5,744		267,383
Crocs, Inc. (a)		42,782		631,890
Delta Apparel, Inc. (a)		3,425		65,383
G-III Apparel Group Ltd. (a)		7,831		195,070
Iconix Brand Group, Inc. (a)		34,558		562,950
The Jones Group, Inc.		38,353		404,624
K-Swiss, Inc., Class A (a)(b)		11,855		34,617
Kenneth Cole Productions, Inc., Class A (a)		3,535		37,436
Liz Claiborne, Inc. (a)(b)		44,833		386,909
Maidenform Brands, Inc. (a)		11,075		202,673
Oxford Industries, Inc.		6,077		274,194
Perry Ellis International, Inc. (a)		5,688		80,883
Quiksilver, Inc. (a)		61,538		222,152
R.G. Barry Corp.		3,978		48,054
Skechers U.S.A., Inc., Class A (a)		17,728		214,863
Steven Madden Ltd. (a)(b)		17,927		618,482
True Religion Apparel, Inc. (a)		12,218		422,498
Vera Bradley, Inc. (a)(b)		9,370		302,183
The Warnaco Group, Inc. (a)		19,167		959,117
Weyco Group, Inc.		3,267		80,205
Wolverine World Wide, Inc.		23,499		837,504
				7,821,088

See Notes to Financial Statements.
34	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Tobacco — 0.2%
Alliance One International, Inc. (a)(b)		41,120	$	111,847
Star Scientific, Inc. (a)(b)		51,044		111,276
Universal Corp.		10,967		504,043
Vector Group Ltd.		22,795		404,839
				1,132,005
Toys — 0.1%
Jakks Pacific, Inc.		12,853		181,356
Leapfrog Enterprises, Inc. (a)		19,671		109,961
				291,317
Transportation Miscellaneous — 0.2%
Echo Global Logistics, Inc. (a)		5,322		85,950
HUB Group, Inc., Class A (a)(b)		17,428		565,190
Odyssey Marine Exploration, Inc. (a)(b)		34,442		94,371
Pacer International, Inc. (a)		16,164		86,477
Textainer Group Holdings Ltd.		5,421		157,860
Wesco Aircraft Holdings, Inc. (a)		9,952		139,229
				1,129,077
Truckers — 0.7%
Arkansas Best Corp.		12,031		231,837
Celadon Group, Inc.		9,536		112,620
Covenant Transport Group, Inc., Class A (a)		3,660		10,870
Forward Air Corp.		13,930		446,456
Heartland Express, Inc.		23,892		341,417
Knight Transportation, Inc.		28,925		452,387
Marten Transport Ltd.		7,346		132,155
Old Dominion Freight Line, Inc. (a)(b)		22,472		910,790
Patriot Transportation Holding, Inc. (a)		2,889		62,691
Quality Distribution, Inc. (a)		7,090		79,763
Roadrunner Transportation Systems, Inc. (a)		4,102		57,961
Saia, Inc. (a)		7,443		92,889
Swift Transportation Co. (a)		37,502		309,016
Universal Truckload Services, Inc.		2,617		47,499
Werner Enterprises, Inc.		20,748		500,027
				3,788,378
Utilities: Electrical — 2.2%
Allete, Inc.		15,139		635,535
Atlantic Power Corp. (a)		53,785		769,125
Avista Corp.		27,328		703,696
Black Hills Corp.		18,671		626,972
Central Vermont Public Service Corp.		6,326		222,043
CH Energy Group, Inc.		7,378		430,728
Cleco Corp.		28,897		1,100,976
Dynegy, Inc. (a)		48,545		134,470
El Paso Electric Co.		19,925		690,202
The Empire District Electric Co.		19,884		419,354
Genie Energy Ltd.		7,144		56,652
IDACORP, Inc.		23,481		995,829
MGE Energy, Inc.		10,979		513,488
NorthWestern Corp.		17,208		615,874
Otter Tail Corp.		17,142		377,467
Pike Electric Corp. (a)		7,664		55,104
PNM Resources, Inc.		37,769		688,529
Portland General Electric Co.		35,695		902,726
UIL Holdings Corp.		23,954		847,253
Unisource Energy Corp.		17,369		641,263
Unitil Corp.		5,128		145,533
				11,572,819
Common Stocks	Shares		Value
Utilities: Gas Distributors — 1.2%
Chesapeake Utilities Corp.		4,537	$	196,679
The Laclede Group, Inc.		10,659		431,370
New Jersey Resources Corp.		19,639		966,239
Northwest Natural Gas Co.		12,661		606,841
Piedmont Natural Gas Co.		34,111		1,159,092
South Jersey Industries, Inc.		14,215		807,554
Southwest Gas Corp.		21,751		924,200
WGL Holdings, Inc.		24,310		1,074,988
				6,166,963
Utilities: Miscellaneous — 0.0%
Ormat Technologies, Inc.		8,558		154,301
Utilities: Telecommunications — 0.8%
8x8, Inc. (a)		29,090		92,215
Alaska Communications Systems Group, Inc. (b)		21,152		63,668
Atlantic Tele-Network, Inc.		4,449		173,734
Boingo Wireless, Inc. (a)		2,887		24,828
Cbeyond Communications, Inc. (a)		13,294		106,485
Cincinnati Bell, Inc. (a)(b)		94,239		285,544
Cogent Communications Group, Inc. (a)		21,735		367,104
Consolidated Communications Holdings, Inc.		12,421		236,620
Fairpoint Communications, Inc. (a)(b)		9,874		42,754
General Communication, Inc., Class A (a)(b)		19,656		192,432
Globalstar, Inc. (a)(b)		53,210		28,733
HickoryTech Corp.		6,392		70,823
IDT Corp., Class B		6,633		62,218
inContact, Inc. (a)		14,490		64,191
Iridium Communications, Inc. (a)		20,569		158,587
j2 Global, Inc.		21,748		611,989
Leap Wireless International, Inc. (a)		28,860		268,109
Lumos Networks Corp.		7,122		109,252
Neutral Tandem, Inc. (a)		14,905		159,335
NTELOS Holdings Corp.		7,130		145,309
ORBCOMM, Inc. (a)		16,916		50,579
Premiere Global Services, Inc. (a)		24,806		210,107
Shenandoah Telecom Co.		11,346		118,906
SureWest Communications		6,570		79,037
Towerstream Corp. (a)		21,052		44,209
USA Mobility, Inc.		10,601		147,036
Vonage Holdings Corp. (a)		65,884		161,416
				4,075,220
Utilities: Water — 0.3%
American States Water Co.		8,867		309,458
Artesian Resources Corp., Class A		3,370		63,457
California Water Service Group		19,894		363,264
Connecticut Water Service, Inc.		4,126		111,938
Consolidated Water Co., Inc.		6,937		59,520
Middlesex Water Co.		7,501		139,969
Pennichuck Corp.		2,179		62,821
SJW Corp.		6,783		160,350
York Water Co.		6,152		108,521
				1,379,298
Total Common Stocks — 98.7%				522,151,952

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	35

Schedule of Investments (continued)	Master Small Cap Index Series
	(Percentages shown are based on Net Assets)

Investment Companies	Shares		Value
Asset Management & Custodian — 0.2%
BlackRock Kelso Capital Corp. (d)		34,792	$	283,903
Gladstone Capital Corp.		10,173		77,620
Hercules Technology Growth Capital, Inc.		20,886		197,164
Pennantpark Investment Corp.		21,738		219,336
Prospect Capital Corp.		51,782		481,055
				1,259,078
Total Investment Companies — 0.2%				1,259,078
Other Interests
Machinery: Industrial — 0.0%
Gerber Scientific, Inc. (a)(e)		12,866		129
Total Other Interests — 0.0%				129
Warrants (f)
Oil: Crude Producers — 0.0%
Magnum Hunter Resources Corp. (Expires 10/14/13)		5,700		—
Total Warrants — 0.0%				—
Total Long-Term Investments (Cost — $474,596,580) — 98.9%				523,411,159
Short-Term Securities	Shares		Value
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (d)(g)		7,771,176	$	7,771,176
	Beneficial Interest (000)
BlackRock Liquidity Series, LLC Money Market Series, 0.22% (d)(g)(h)	$	58,202		58,201,803
Total Short-Term Securities (Cost — $65,972,979) — 12.5%				65,972,979
Total Investments (Cost — $540,569,559*) — 111.4%				589,384,138
Liabilities in Excess of Other Assets — (11.4)%				(60,330,561	)
Net Assets — 100.0%			$	529,053,577

* As of December 31, 2011, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	552,096,089
Gross unrealized appreciation	$	84,839,369
Gross unrealized depreciation		(47,551,320	)
Net unrealized appreciation	$	37,288,049

(a)	Non-income producing security.
(b)	Security, or a portion of security, is on loan.
(c)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(d)	Investments in companies considered to be an affiliate of the Series during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares/ Beneficial Interest Held at December 31, 2010		Shares/ Beneficial Interest Purchased			Shares Sold			Shares/ Beneficial Interest Held at December 31, 2011		Value at December 31, 2011		Realized Gain (Loss)			Income
BlackRock Kelso Capital Corp.		20,122		19,019			(4,349	)		34,792	$	283,903	$	(11,522	)	$	28,204
BlackRock Liquidity Funds, TempFund, Institutional Class		7,181,244		589,198	1		—			7,771,176	$	7,771,176	$	139		$	8,079
BlackRock Liquidity Series, LLC Money Market Series	$	8,152,630	$	50,049,173	1		—		$	58,201,803	$	58,201,803		—		$	639,806
PennyMac Mortgage Investment Trust		5,329		10,221			(2,392	)		13,158	$	218,686	$	(5,810	)	$	19,341

¹ Represents net shares/beneficial interest purchased.

(e)	Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(f)	Warrants entitle the Series to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(g)	Represents the current yield as of report date.
(h)	Security was purchased with the cash collateral from loaned securities.

See Notes to Financial Statements.
36	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011

Schedule of Investments (concluded) Master Small Cap Index Series

• Financial futures contracts purchased as of December 31, 2011 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Depreciation
125	Russell 2000 EMINI	ICE Futures US Indices	March 2012	$	9,235,000	$	(7,075	)

•	For Series compliance purposes, the Series’industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Series management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
	•	Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Series’ own assumptions used in determining the fair value of investments and derivative financial instruments)
	Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Series’ perceived risk of investing in those securities. For information about the Series’ policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of December 31, 2011 in determining the fair valuation of the Series’ investments and derivative financial instruments:

Valuation Inputs	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks1	$	522,069,421	$	82,531		—	$	522,151,952
Investment Companies		1,259,078		—		—		1,259,078
Other Interests		—		129		—		129
Short-Term Securities		7,771,176		58,201,803		—		65,972,979
Total	$	531,099,675	$	58,284,463		—	$	589,384,138

¹ See above Schedule of Investments for values in each industry excluding Level 2, Banks: Diversified, within the table.

Valuation Inputs	Level 1			Level 2		Level 3		Total
Derivative Financial Instruments2
Liabilities:
Equity Contracts	$	(7,075	)		—		—	$	(7,075	)

² Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2011	37

Statement of Assets and Liabilities Master Small Cap Index Series

December 31, 2011
Assets
Investments at value — unaffiliated (including securities loaned of $56,207,758) (cost — $474,050,799)	$	522,908,570
Investments at value — affiliated (cost — $66,518,760)		66,475,568
Cash pledged as collateral for financial futures contracts		727,000
Investments sold receivable		26,702,011
Dividends receivable		778,995
Securities lending income receivable — affiliated		129,452
Receivable from advisor		34,365
Prepaid expenses		23,514
Total assets		617,779,475
Liabilities
Bank overdraft		79,371
Collateral on securities loaned at value		58,201,803
Margin variation payable		34,832
Other affiliates payable		2,958
Directors’ fees payable		383
Withdrawals payable to investor		30,303,810
Other accrued expenses payable		102,741
Total liabilities		88,725,898
Net Assets	$	529,053,577
Net Assets Consist of
Investors’ capital	$	480,246,059
Net unrealized appreciation/depreciation		48,807,518
Net Assets	$	529,053,577

See Notes to Financial Statements.

38 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Statement of Operations Master Small Cap Index Series

Year Ended December 31, 2011
Investment Income
Dividends — unaffiliated	$	6,035,188
Foreign taxes withheld		(4,470	)
Dividends — affiliated		55,624
Securities lending — affiliated		639,806
Total income		6,726,148
Expenses
Investment advisory		43,820
Custodian		135,602
Accounting services		115,227
Professional		87,054
Directors		12,588
Printing		1,199
Miscellaneous		19,098
Total expenses		414,588
Less fees waived and/or reimbursed by advisor		(93,339	)
Total expenses after fees waived and/or reimbursed		321,249
Net investment income		6,404,899
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated		8,294,002
Investments — affiliated		(17,193	)
Financial futures contracts		(1,236,622	)
Foreign currency transactions		78
Short positions		56,001
		7,096,266
Net change in unrealized appreciation/depreciation on:
Investments		(46,193,675	)
Financial futures contracts		(6,698	)
Foreign currency transactions		14
		(46,200,359	)
Total realized and unrealized loss		(39,104,093	)
Net Decrease in Net Assets Resulting from Operations	$	(32,699,194	)

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011 39

Statements of Changes in Net Assets Master Small Cap Index Series

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2011			2010
Operations
Net investment income	$	6,404,899		$	3,501,724
Net realized gain (loss)		7,096,266			(9,889,317	)
Net change in unrealized appreciation/depreciation		(46,200,359	)		60,704,760
Net increase (decrease) in net assets resulting from operations		(32,699,194	)		54,317,167
Capital Transactions
Proceeds from contributions		449,939,216			226,075,632
Value of withdrawals		(226,358,426	)		(171,857,514	)
Net increase in net assets derived from capital transactions		223,580,790			54,218,118
Net Assets
Total increase in net assets		190,881,596			108,535,285
Beginning of year		338,171,981			229,636,696
End of year	$	529,053,577		$	338,171,981

Financial Highlights Master Small Cap Index Series

	Year Ended December 31,
	2011			2010			2009			2008			2007
Total Investment Return
Total investment return		(4.30	)%		27.19	%		27.37	%		(33.57	)%		(1.46	)%
Ratios to Average Net Assets
Total expenses		0.09	%		0.12	%		0.09	%		0.08	%		0.06	%
Total expenses after fees waived and/or reimbursed and fees paid indirectly		0.07	%		0.08	%		0.07	%		0.07	%		0.06	%
Net investment income		1.46	%		1.27	%		1.27	%		1.60	%		1.69	%
Supplemental Data
Net assets, end of year (000)	$	529,054		$	338,172		$	229,637		$	344,720		$	630,394
Portfolio turnover		31	%		42	%		43	%		42	%		26	%

See Notes to Financial Statements.

40 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Notes to Financial Statements Master Small Cap Index Series

1. Organization and Significant Accounting Policies:

Master Small Cap Index Series (the “Series”), a diversified, open-end management investment company, is a series of Quantitative Master Series LLC (the “Master LLC”). The Master LLC is registered as an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), and is organized as a Delaware limited liability company. The Master LLC’s Limited Liability Company Agreement permits the Board of Directors of the Master LLC (the “Board”) to issue nontransferable interests, subject to certain limitations. The Series’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

The following is a summary of significant accounting policies followed by the Series:

Valuation: US GAAP defines fair value as the price the Series would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Series fair values its financial instruments at market value using independent dealers or pricing services under policies approved by the Board. Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System (“NASDAQ”) are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

The Series values its investments in BlackRock Liquidity Series, LLC Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments will follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act. The Series may withdraw up to 25% of its investment daily, although the manager of the Money Market Series, in its sole discretion, may permit an investor to withdraw more than 25% on any one day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or if a price is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that the Series might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Series either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts), the Series will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party to such transactions has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Series is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Securities Lending: The Series may lend securities to approved borrowers, such as banks, brokers and other financial institutions. The borrower pledges cash, securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral, which will be maintained at all times in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Series and any additional required collateral is delivered to the Series on the next business day. Securities lending income, as disclosed in the Statement of

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011 41

Notes to Financial Statements (continued) Master Small Cap Index Series

Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, the Series earns dividend or interest income on the securities loaned but does not receive interest income on the securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. In the event that the borrower defaults on its obligation to return borrowed securities because of insolvency or for any other reason, the Series could experience delays and costs in gaining access to the collateral. The Series also could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the year ended December 31, 2011, any securities on loan were collateralized by cash.

Income Taxes: The Series is classified as a partnership for federal income tax purposes. As such, each investor in the Series is treated as the owner of its proportionate share of net assets, income, expenses and realized and unrealized gains and losses of the Series. Therefore, no federal income tax provision is required. It is intended that the Series’ assets will be managed so an investor in the Series can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

The Series files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Series’ US federal tax returns remains open for each of the four years ended December 31, 2011. The statutes of limitations on the Series’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standard: In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

In December 2011, the FASB issued guidance that will enhance current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting agreements or similar agreements and will require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the Statement of Assets and Liabilities. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

Other: Expenses directly related to the Series are charged to the Series. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Series has an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Series engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Series and to economically hedge, or protect, its exposure to certain risks such as equity risk. These contracts may be transacted on an exchange.

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

Financial Futures Contracts: The Series purchases or sells financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in the value of equity securities (equity risk). Financial futures contracts are agreements between the Series and counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Series agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Series as unrealized appreciation or depreciation. When the contract is closed, the Series records a realized gain or loss equal to the difference

42 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Notes to Financial Statements (continued) Master Small Cap Index Series

between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Derivative Financial Instruments Categorized by Risk Exposure:

Fair Values of Derivative Financial Instruments as of December 31, 2011
	Liability Derivatives
	Statement of Assets and Liabilities Location	Value
Equity contracts	Net unrealized depreciation*	$	(7,075	)

* Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedule of Investments. Only current day’s margin variation is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Financial Instruments in the Statement of Operations Year Ended December 31, 2011
	Net Realized Loss From
	Financial Futures Contracts
Equity contracts	$(1,236,622)
	Net Change in Unrealized Appreciation/Depreciation on
	Financial Futures Contracts
Equity contracts	$ (6,698)

For the year ended December 31, 2011, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average number of contracts purchased		102
Average notional value of contracts purchased	$	7,600,278

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but Barclays is not.

The Master LLC, on behalf of the Series, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Series’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of the Series’ portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Series. For such services, the Series pays the Manager a monthly fee at an annual rate of 0.01% of the Series’ average daily net assets.

The Manager entered into a contractual arrangement with the Master LLC with respect to the Series under which the Manager will waive and/or reimburse its fees and/or expenses so that the total annual operating expenses incurred by the Series (excluding interest expense, acquired fund fees and certain other Series’ expenses) will not exceed 0.08% of the average daily value of the Series’ net assets. The Manager has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to May 1, 2012 unless approved by the Board, including a majority of the Independent directors. For the year ended December 31, 2011, the Manager waived and/or reimbursed $88,527, which is included in fees waived and/or reimbursed by advisor in the Statement of Operations.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Series pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Series’ investment in other affiliated investment companies, if any. For the year ended December 31, 2011, the Manager waived $4,812, which is included in fees waived and/or reimbursed by advisor in the Statement of Operations.

The Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by the Series to the Manager.

For the year ended December 31, 2011, the Series reimbursed the Manager $5,446 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Master LLC, on behalf of the Series, received an exemptive order from the SEC permitting it, among other things, to pay an affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and has retained BIM as the securities lending agent. BIM may, on behalf of the Series, invest cash collateral received by the Series for such loans, among other things, in a private investment company managed by the Manager or in registered money market funds advised by the Manager or its affiliates. The market value of securities on loan and the value of the related collateral, if applicable, are shown in the Statement of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral invested by BIM is disclosed in the Schedule of Investments. The share of income earned by the Series on such investments is shown as securities lending — affiliated in the Statement of Operations. For the year ended December 31, 2011, BIM received $290,249 in securities lending agent fees related to securities lending activities for the Series.

Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock or its affiliates.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011 43

Notes to Financial Statements (concluded) Master Small Cap Index Series

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the year ended December 31, 2011, were $371,105,816 and $139,139,069, respectively.

5. Borrowings:

The Master LLC, on behalf of the Series, along with certain other funds managed by the Manager and its affiliates, is a party to a $500 million credit agreement with a group of lenders, which expired in November 2011. The Series may borrow under the credit agreement to fund shareholder redemptions. Effective November 2010, the credit agreement had the following terms: a commitment fee of 0.08% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month London Interbank Offered Rate (“LIBOR”) plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2010. Effective November 2011, the credit agreement was renewed until November 2012 with the following terms: a commitment fee of 0.065% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2011. The Series did not borrow under the credit agreement during the year ended December 31, 2011.

6. Concentration, Market and Credit Risk:

In the normal course of business, the Series invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Series may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Series; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Series may be exposed to counterparty credit risk, or the risk that an entity with which the Series has unsettled or open transactions may fail to or be unable to perform on its commitments. The Series manages counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Series to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Series’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Series’ Statement of Assets and Liabilities, less any collateral held by the Series.

As of December 31, 2011, the Series invested a significant portion of its assets in securities in the energy sector. Changes in economic conditions affecting the energy sector would have a greater impact on the Series and could affect the value, income and/or liquidity of positions in such securities.

7. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Series through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

44 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Report of Independent Registered Public Accounting Firm Master Small Cap Index Series

To the Investors of Master Small Cap Index Series and Board of Directors of Quantitative Master Series LLC:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Master Small Cap Index Series, one of the portfolios constituting Quantitative Master Series LLC (the “Master LLC”), as of December 31, 2011, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Master LLC’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Master LLC is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Master LLC’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2011, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Master Small Cap Index Series, one of the portfolios constituting Quantitative Master Series LLC as of December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Boston, Massachusetts
February 22, 2012

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011 45

Officers and Directors

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1
Ronald W. Forbes 55 East 52nd Street New York, NY 10055 1940	Co-Chairman of the Board and Director	Since 2007	Professor Emeritus of Finance, School of Business, State University of New York at Albany since 2000.	33 RICs consisting of 107 Portfolios	None
Rodney D. Johnson 55 East 52nd Street New York, NY 10055 1941	Co-Chairman of the Board and Director	Since 2007	President, Fairmount Capital Advisors, Inc. since 1987; Member of the Archdiocesan Investment Committee of the Archdiocese of Philadelphia since 2004; Director, The Committee of Seventy (civic) since 2006; Director, Fox Chase Cancer Center from 2004 to 2010.	33 RICs consisting of 107 Portfolios	None
David O. Beim 55 East 52nd Street New York, NY 10055 1940	Director	Since 2007	Professor of Professional Practice at the Columbia University Graduate School of Business since 1991; Trustee, Phillips Exeter Academy since 2002; Chairman, Wave Hill, Inc. (public garden and cultural center) from 1990 to 2006.	33 RICs consisting of 107 Portfolios	None
Dr. Matina S. Horner 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Executive Vice President of Teachers Insurance and Annuity Association and College Retirement Equities Fund from 1989 to 2003.	33 RICs consisting of 107 Portfolios	NSTAR (electric and gas utility)
Herbert I. London 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Professor Emeritus, New York University since 2005; John M. Olin Professor of Humanities, New York University from 1993 to 2005 and Professor thereof from 1980 to 2005; President, Hudson Institute (policy research organization) since 1997 and Trustee thereof since 1980; Chairman of the Board of Trustees for Grantham University since 2006; Director, InnoCentive, Inc. (strategic solutions company) since 2005; Director, Cerego, LLC (software development and design) since 2005; Director, Cybersettle (dispute resolution technology) since 2009.	33 RICs consisting of 107 Portfolios	AIMS Worldwide, Inc. (marketing)
Cynthia A. Montgomery 55 East 52nd Street New York, NY 10055 1952	Director	Since 2007	Professor, Harvard Business School since 1989; Director, McLean Hospital since 2005; Director, Harvard Business School Publishing from 2005 to 2010.	33 RICs consisting of 107 Portfolios	Newell Rubbermaid, Inc. (manufacturing)
Joseph P. Platt 55 East 52nd Street New York, NY 10055 1947	Director	Since 2007	Director, The West Penn Allegheny Health System (a not-for-profit health system) since 2008; Director, Jones and Brown (Canadian insurance broker) since 1998; General Partner, Thorn Partners, LP (private investment) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Partner, Amarna Corporation, LLC (private investment company) from 2002 to 2008.	33 RICs consisting of 107 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company)
Robert C. Robb, Jr. 55 East 52nd Street New York, NY 10055 1945	Director	Since 2007	Partner, Lewis, Eckert, Robb and Company (management and financial consulting firm) since 1981.	33 RICs consisting of 107 Portfolios	None
Toby Rosenblatt 55 East 52nd Street New York, NY 10055 1938	Director	Since 2007	President, Founders Investments Ltd. (private investments) since 1999; Director, College Access Foundation of California (philanthropic foundation) since 2009; Director, Forward Management, LLC since 2007; Director, A.P. Pharma, Inc. (specialty pharmaceuticals) from 1983 to 2011; Director, The James Irvine Foundation (philanthropic foundation) from 1998 to 2008.	33 RICs consisting of 107 Portfolios	None

46 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Officers and Directors (continued)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1 (concluded)
Kenneth L. Urish 55 East 52nd Street New York, NY 10055 1951	Director	Since 2007	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Chairman Elect of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001; Trustee, The Holy Family Foundation from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.	33 RICs consisting of 107 Portfolios	None
Frederick W. Winter 55 East 52nd Street New York, NY 10055 1945	Director	Since 2007	Professor and Dean Emeritus of the Joseph M. Katz School of Business, University of Pittsburgh since 2005 and Dean thereof from 1997 to 2005; Director, Alkon Corporation (pneumatics) since 1992; Director, Tippman Sports (recreation) since 2005; Director, Indotronix International (IT services) from 2004 to 2008.	33 RICs consisting of 107 Portfolios	None

1

Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The Board has approved extensions in terms of Directors who turn 72 prior to December 31, 2013.

2

Date shown is the earliest date a person has served for the Corporation/Master LLC covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows Directors as joining the Corporation’s/Master LLC’s board in 2007, each Director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: David O. Beim, 1998; Ronald W. Forbes, 1977; Dr. Matina S. Horner, 2004; Rodney D. Johnson, 1995; Herbert I. London, 1987; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Robert C. Robb, Jr., 1998; Toby Rosenblatt, 2005; Kenneth L. Urish, 1999; and Frederick W. Winter, 1999.

Interested Directors3
Paul L. Audet 55 East 52nd Street New York, NY 10055 1953	Director	Since 2011	Senior Managing Director, BlackRock and Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005.	159 RICs consisting of 286 Portfolios	None
Henry Gabbay 55 East 52nd Street New York, NY 10055 1947	Director	Since 2007	Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	159 RICs consisting of 286 Portfolios	None

³ Mr. Audet is an “interested person,” as defined in the 1940 Act, of the Corporation/Master LLC based on his position with BlackRock and its affiliates. Mr. Gabbay is an “interested person” of the Corporation/Master LLC based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of the BlackRock registered closed-end funds and Directors of other BlackRock registered open-end funds. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011 47

Officers and Directors (concluded)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served	Principal Occupation(s) During Past Five Years
Officers1
John M. Perlowski 55 East 52nd Street New York, NY 10055 1964	President and Chief Executive Officer	Since 2010	Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Administration since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.
Brendan Kyne 55 East 52nd Street New York, NY 10055 1977	Vice President	Since 2009	Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009;Vice President of BlackRock from 2005 to 2008.
Neal Andrews 55 East 52nd Street New York, NY 10055 1966	Chief Financial Officer	Since 2007	Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
Jay Fife 55 East 52nd Street New York, NY 10055 1970	Treasurer	Since 2007	Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
Brian Kindelan 55 East 52nd Street New York, NY 10055 1959	Chief Compliance Officer and Anti-Money Laundering Officer	Since 2007	Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005.
Ira P. Shapiro 55 East 52nd Street New York, NY 10055 1963	Secretary	Since 2010	Managing Director of BlackRock since 2009; Managing Director and Associate General Counsel of Barclays Global Investors from 2008 to 2009 and Principal thereof from 2004 to 2008.

1	Officers of the Corporation/Master LLC serve at the pleasure of the Board.
Further information about the Officers and Directors is available in the Corporation’s/Master LLC’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisor

BlackRock Investment Management, LLC

Princeton, NJ 08540

Custodian

State Street Bank and Trust Company

Boston, MA 02110

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Accounting Agent

State Street Bank and Trust Company

Boston, MA 02110

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Address of the Fund

100 Bellevue Parkway

Wilmington, DE 19809

Effective September 22, 2011, Richard S. Davis resigned as Director of the Corporation and the Master LLC, and Paul L. Audet became Director of the Corporation and the Master LLC.

48 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

Additional Information

General Information

Electronic Delivery

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1)	Access the BlackRock website at
	http://www.blackrock.com/edelivery
2)	Select “eDelivery” under the “More Information” section
3)	Log into your account

Householding

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. 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 call the Fund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Fund/Series file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s/Series’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Fund’s/Series’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund/Series use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Fund/Series voted proxies relating to securities held in the Fund’s/Series’ portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011 49

Additional Information (concluded)

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 non-public 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 non-public 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 websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public 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 non-affiliated 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 non-public 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 non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

50 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds

BlackRock ACWI ex-US Index Fund

BlackRock All-Cap Energy & Resources Portfolio

BlackRock Asset Allocation Portfolio†

BlackRock Balanced Capital Fund†

BlackRock Basic Value Fund

BlackRock Capital Appreciation Fund

BlackRock China Fund

BlackRock Commodity Strategies Fund

BlackRock Emerging Markets Long/Short Equity Fund

BlackRock Energy & Resources Portfolio

BlackRock Equity Dividend Fund

BlackRock EuroFund

BlackRock Focus Growth Fund

BlackRock Global Allocation Fund†

BlackRock Global Dividend Income Portfolio

BlackRock Global Dynamic Equity Fund

BlackRock Global Emerging Markets Fund

BlackRock Global Opportunities Portfolio

BlackRock Global SmallCap Fund

BlackRock Health Sciences Opportunities Portfolio

BlackRock Index Equity Portfolio

BlackRock India Fund

BlackRock International Fund

BlackRock International Index Fund

BlackRock International Opportunities Portfolio

BlackRock Large Cap Core Fund

BlackRock Large Cap Core Plus Fund

BlackRock Large Cap Growth Fund

BlackRock Large Cap Value Fund

BlackRock Latin America Fund

BlackRock Mid-Cap Growth Equity Portfolio

BlackRock Mid-Cap Value Equity Portfolio

BlackRock Mid Cap Value Opportunities Fund

BlackRock Natural Resources Trust

BlackRock Pacific Fund

BlackRock Russell 1000 Index Fund

BlackRock Science & Technology Opportunities Portfolio

BlackRock Small Cap Growth Equity Portfolio

BlackRock Small Cap Growth Fund II

BlackRock Small Cap Index Fund

BlackRock S&P 500 Index Fund

BlackRock S&P 500 Stock Fund

BlackRock U.S. Opportunities Portfolio

BlackRock Value Opportunities Fund

BlackRock World Gold Fund

Fixed Income Funds

BlackRock Bond Index Fund

BlackRock Core Bond Portfolio

BlackRock Emerging Market Debt Portfolio

BlackRock Floating Rate Income Portfolio

BlackRock Global Long/Short Credit Fund

BlackRock GNMA Portfolio

BlackRock High Yield Bond Portfolio

BlackRock Inflation Protected Bond Portfolio

BlackRock International Bond Portfolio

BlackRock Long Duration Bond Portfolio

BlackRock Low Duration Bond Portfolio

BlackRock Multi-Asset Income Portfolio†

BlackRock Multi-Sector Bond Portfolio

BlackRock Strategic Income Opportunities Portfolio

BlackRock Total Return Fund

BlackRock US Government Bond Portfolio

BlackRock World Income Fund

US Mortgage Portfolio

Municipal Bond Funds

BlackRock California Municipal Bond Fund

BlackRock High Yield Municipal Fund

BlackRock Intermediate Municipal Fund

BlackRock National Municipal Fund

BlackRock New Jersey Municipal Bond Fund

BlackRock New York Municipal Bond Fund

BlackRock Pennsylvania Municipal Bond Fund

BlackRock Short-Term Municipal Fund

Target Risk & Target Date Funds†

BlackRock Prepared Portfolios
Conservative Prepared Portfolio
Moderate Prepared Portfolio
Growth Prepared Portfolio
Aggressive Growth Prepared Portfolio

BlackRock Lifecycle Prepared Portfolios

2015

2020

2025

2030

2035

2040

2045

2050

LifePath Portfolios
Retirement

2020

2025

2030

2035

2040

2045

2050

2055

LifePath Index Portfolios
Retirement

2020

2025

2030

2035

2040

2045

2050

2055

† Mixed asset fund.

BlackRock mutual funds are currently distributed by BlackRock Investments, LLC. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2011 51

This report is transmitted to shareholders only. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

#Index 3-12/11-AR

Item 2 –	Code of Ethics – Each registrant (or “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.
Item 3 –	Audit Committee Financial Expert – Each registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial expert serving on its audit committee and (ii) each audit committee financial expert is independent:
	Kenneth L. Urish
	Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.
Item 4 –	Principal Accountant Fees and Services
	The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Funds:

	(a) Audit Fees		(b) Audit-Related Fees1		(c) Tax Fees2		(d) All Other Fees3
Entity Name	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End
BlackRock International Index Fund of BlackRock Index Funds, Inc.	$7,000	$6,800	$3,000	$0	$8,600	$6,100	$0	$46
BlackRock S&P 500 Index Fund of BlackRock Index Funds, Inc.	$7,000	$6,800	$0	$0	$12,350	$6,100	$0	$329
BlackRock Small Cap Index Fund of BlackRock Index Funds, Inc.	$7,000	$6,800	$3,000	$0	$10,700	$6,100	$0	$17
Master International Index Series of Quantitative Master Series LLC	$36,800	$35,700	$1,750	$0	$17,000	$17,000	$0	$0
Master S&P 500 Index Series of Quantitative Master Series LLC	$34,500	$33,500	$13,300	$0	$18,600	$17,000	$0	$0
Master Small Cap Index Series of Quantitative Master Series LLC	$38,100	$37,000	$1,750	$0	$17,000	$17,000	$0	$0

The following table presents fees billed by D&T that were required to be approved by each registrant’s audit committee (each a “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Fund Service Providers”):

	Current Fiscal Year End	Previous Fiscal Year End
(b) Audit-Related Fees1	$0	$0
(c) Tax Fees2	$0	$0
(d) All Other Fees3	$3,030,000	$2,950,000

¹ The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

² The nature of the services includes tax compliance, tax advice and tax planning.

³ Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by D&T with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

Each Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrants on an annual basis require specific pre-approval by the registrant’s Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Fund Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to a registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the registrant’s Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by either Committee pursuant to the de minimus exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrants, the Investment Adviser and the Fund Service Providers were:

Entity Name	Current Fiscal Year End	Previous Fiscal Year End
BlackRock International Index Fund of BlackRock Index Funds, Inc.	$11,600	$16,923
BlackRock S&P 500 Index Fund of BlackRock Index Funds, Inc.	$12,350	$17,206
BlackRock Small Cap Index Fund of BlackRock Index Funds, Inc.	$13,700	$16,894
Master International Index Series of Quantitative Master Series LLC	$18,750	$27,777
Master S&P 500 Index Series of Quantitative Master Series LLC	$31,900	$27,777
Master Small Cap Index Series of Quantitative Master Series LLC	$18,750	$27,777

	Additionally, SAS No. 70 fees for the current and previous fiscal years of $3,030,000 and $2,950,000, respectively, were billed by D&T to the Investment Adviser.
	(h) Each Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5 –	Audit Committee of Listed Registrants – Not Applicable
Item 6 –	Investments
	(a) The registrants’ Schedules of Investments are included as part of the Reports to Stockholders filed under Item 1 of this Form.
	(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 –	Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable
Item 8 –	Portfolio Managers of Closed-End Management Investment Companies – Not Applicable
Item 9 –	Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 –	Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 –	Controls and Procedures

11(a) –	The registrants’ principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants’ disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
11(b) –	There were no changes in the registrants’ internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants’ internal control over financial reporting.
Item 12 –	Exhibits attached hereto
12(a)(1) –	Code of Ethics – See Item 2
12(a)(2) –	Certifications – Attached hereto
12(a)(3) –	Not Applicable
12(b) –	Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, each registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Index Funds, Inc. and Quantitative Master Series LLC
By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Index Funds, Inc. and Quantitative Master Series LLC
Date: March 1, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of each registrant and in the capacities and on the dates indicated.
By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Index Funds, Inc. and Quantitative Master Series LLC
Date: March 1, 2012
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Index Funds, Inc. and Quantitative Master Series LLC
Date: March 1, 2012