UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-08327
Name of Fund: BlackRock Global Growth Fund, Inc.
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
Global Growth Fund, Inc., 40 East 52nd Street, New York, NY 10022.
Registrant’s telephone number, including area code: (800) 441-7762
Date of fiscal year end: 08/31/2009
Date of reporting period: 08/31/2009
Item 1 – Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
Annual Report
AUGUST 31, 2009
BlackRock Fundamental Growth Principal Protected Fund
OF BLACKROCK PRINCIPAL PROTECTED TRUST
BlackRock Global Growth Fund, Inc.
BlackRock Focus Growth Fund, Inc.
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
| Dear Shareholder | 3 |
| Annual Report: | |
| Fund Summaries | 4 |
| About Fund Performance | 10 |
| Disclosure of Expenses | 10 |
| Derivative Financial Instruments | 10 |
| Financial Statements: | |
| Schedules of Investments | 11 |
| Statements of Assets and Liabilities | 17 |
| Statements of Operations | 19 |
| Statements of Changes in Net Assets | 20 |
| Financial Highlights | 21 |
| Notes to Financial Statements | 28 |
| Report of Independent Registered Public Accounting Firm | 39 |
| Important Tax Information (Unaudited) | 39 |
| Master LLC Portfolio Information | 40 |
| Master LLC Financial Statements: | |
| Schedule of Investments | 41 |
| Statement of Assets and Liabilities | 43 |
| Statement of Operations | 44 |
| Statements of Changes in Net Assets | 45 |
| Master LLC Financial Highlights | 45 |
| Master LLC Notes to Financial Statements | 46 |
| Master LLC Report of Independent Registered Public Accounting Firm | 50 |
| Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements | 51 |
| Officers and Directors | 55 |
| Additional Information | 58 |
| Mutual Fund Family | 59 |
2 ANNUAL REPORT AUGUST 31, 2009
Dear Shareholder
The past 12 months reveal two distinct economic and market backdrops — one of extreme investor pessimism and decided weakness, and another of
increased optimism amid growing signs of recovery. The start of the period was characterized by the former. September through December 2008 saw the
surge of the economic storm that sparked the worst recession in decades. The months featured, among others, the infamous collapse of Lehman Brothers,
uniformly poor economic data and plummeting investor confidence that resulted in massive government intervention (on a global scale) in the financial sys-
tem and the economy. The tide turned dramatically in March 2009, however, on the back of new US government initiatives, as well as better-than-expected
economic data and upside surprises in corporate earnings.
In this environment, US equities contended with extraordinary volatility, posting steep declines through mid-March before embarking on a rally that resulted
in strong year-to-date returns for all major indexes. June saw a brief correction, though it appeared to be induced more by profit-taking and portfolio rebal-
ancing than by a change in the economic outlook. The experience in international markets was similar to that in the United States. Notably, emerging mar-
kets staged a strong comeback in 2009 as these areas of the globe have generally seen a stronger acceleration in economic activity.
In fixed income markets, the flight-to-safety premium in Treasury securities prevailed during the equity market downturn, but more recently, ongoing concerns
about deficit spending, debt issuance, inflation and dollar weakness have kept Treasury yields higher. At the same time, relatively attractive yields and dis-
tressed valuations among non-Treasury assets, coupled with a more favorable macro environment, drew in sidelined investors and triggered a sharp recovery
in these sectors. This was particularly evident in the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. The
municipal bond market enjoyed strong returns in 2009 as well, buoyed by a combination of attractive valuations, robust retail investor demand and a slow-
down in forced selling. Moreover, the Build America Bond program has alleviated supply pressures, creating a more favorable technical environment. In par-
ticular, August marked the municipal market’s best monthly performance in more than 20 years, as the asset class has regained year-to-date all that was
lost during 2008.
Overall, results for the major benchmark indexes were mixed. Higher-risk assets (i.e., equities and high yield bonds) and Treasuries reflected a bifurcated
market, while less-risky fixed income investments posted stable, modest returns.
| Total Returns as of August 31, 2009 | 6-month | 12-month |
| US equities (S&P 500 Index) | 40.52% | (18.25)% |
| Small cap US equities (Russell 2000 Index) | 48.25 | (21.29) |
| International equities (MSCI Europe, Australasia, Far East Index) | 53.47 | (14.95) |
| US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index*) | (1.61) | 6.77 |
| Taxable fixed income (Barclays Capital US Aggregate Bond Index) | 5.95 | 7.94 |
| Tax-exempt fixed income (Barclays Capital Municipal Bond Index) | 5.61 | 5.67 |
| High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index) | 36.31 | 7.00 |
| * Formerly a Merrill Lynch Index. | ||
| Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index. | ||
| The market environment has visibly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market tur- | ||
| bulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. We invite you to visit www.blackrock.com/funds for our | ||
| most current views on the economy and financial markets. As always, we thank you for entrusting BlackRock with your investments, and we look forward to | ||
| continuing to serve you in the months and years ahead. | ||
Announcement to Shareholders
On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had
accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). At a special meeting held on August 6, 2009, BlackRock’s proposed purchase of
BGI was approved by an overwhelming majority of Barclays’ voting shareholders, an important step toward closing the transaction. The combination of
BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is
scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.
THIS PAGE NOT PART OF YOUR FUND REPORT 3
Fund Summary as of August 31, 2009 BlackRock Fundamental Growth Principal Protected Fund
Portfolio Management Commentary
On September 9, 2009, the Board of Directors approved a proposal to
liquidate the Fund on or about November 13, 2009.
How did the Fund perform?
• Effective November 14, 2008, the Fund transitioned to a new portfolio
management team. As part of this transition, the Fund’s benchmark was
changed from the S&P 500 Citigroup Growth Index to the Russell 1000
Growth Index to more accurately reflect the universe of equity securities in
which the Fund invests.
• During the 12-month period, the Fund outperformed both its current and
former all-equity benchmarks, the Russell 1000 Growth Index and the S&P
500 Citigroup Growth Index, respectively, and the broad-market S&P 500
Index.
• The Fund, which was primarily invested in US Treasury obligations during the
year, underperformed the Barclay’s Capital US Aggregate Bond Index.
What factors influenced performance?
• The equity market declined sharply during the reporting period. The Fund’s
allocation to fixed income protected it from experiencing such a fall,
accounting for the majority of its outperformance.
• Within the equity allocation, positions in materials and consumer staples
added value during the period. The highly volatile metals and mining indus-
try within materials provided opportunities to generate absolute and relative
outperformance. Copper producer Freeport-McMoRan Copper & Gold, Inc.
benefited from the rapid rebound in copper prices in 2009, while gold
miner Agnico-Eagle Mines Ltd. showed relative strength during this period
of heightened gold prices. The Fund’s position in consumer staples
accounted for its outperformance relative to its benchmark, the Russell
1000 Growth Index. During the market sell-off at the beginning of the
year, the Fund held an overweight in this defensive sector, but moved to
an underweight in time for the extreme rally that left consumer staples
behind in favor of more aggressive stocks.
• While the Fund’s overweight position in health care contributed to relative
performance, stock selection within the sector was the largest detractor for
the year, as it saw blockbuster acquisitions of both Genentech, Inc. and
Schering-Plough Corp., two constituents within the Russell 1000 Growth
Index that we did not hold. In addition, two stocks we did own, Covance, Inc.
and Intuitive Surgical, Inc., hindered performance.
Describe recent portfolio activity.
• The Fund’s fixed income component was invested in US Treasury zero-coupon
bonds with maturities of November 2009.
• The new portfolio management team transitioned the Fund to reflect their
current highest conviction positions and, in doing so, made numerous
changes. Some of the most notable changes during the last 12 months
included raising the weightings in information technology (“IT”) and industri-
als, and reducing consumer staples and materials.
Describe Fund positioning at period end.
• Within the equity segment, the Fund held overweights relative to the Russell
1000 Growth Index in IT, energy, health care and industrials, while it held
notable underweights in consumer staples and utilities.
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.
| Portfolio Information | |
| Percent of | |
| Long-Term | |
| Portfolio Composition | Investments |
| U.S. Treasury Obligations | 91% |
| Common Stocks | 9 |
| Percent of | |
| Sector Allocation | Common |
| (Equity Investments) | Stocks |
| Information Technology | 33% |
| Health Care | 18 |
| Industrials | 12 |
| Consumer Staples | 11 |
| Consumer Discretionary | 11 |
| Energy | 6 |
| Financials | 5 |
| Materials | 3 |
| Telecommunication Services | 1 |
| For Fund compliance purposes, the Fund’s sector classifications refer to any one | |
| or more of the sector sub-classifications used by one or more widely recognized | |
| market indexes or ratings group indexes, and/or as defined by Fund management. | |
| This definition may not apply for purposes of this report which may combine sector | |
| sub-classifications for reporting ease. | |
4 ANNUAL REPORT AUGUST 31, 2009
BlackRock Fundamental Growth Principal Protected Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not
have a sales charge.
2 The Fund consists primarily of common stocks and U.S. Treasury bonds, including zero coupon bonds.
3 This unmanaged Index covers 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly New York Stock
Exchange (“NYSE”) issues) representing about 75% of NYSE market capitalization and 30% of NYSE issues.
4 This unmanaged broad-based index is a subset of the Russell 1000 Index consisting of those Russell 1000 securities with a greater-than-
average growth orientation. The Fund now uses this index as its benchmark rather than the S&P 500 Citigroup Growth Index because Fund
management believes it better reflects the Fund’s investment strategies.
5 This unmanaged market-weighted Index is comprised of investment grade corporate bonds (rated BBB or better), mortgages and U.S. Treasury
and government agency issues with at least one year to maturity.
6 This unmanaged Index is designed to provide a comprehensive measure of large-cap U.S. equity “growth” performance. It is an unmanaged
float adjusted market capitalization weighted index comprised of stocks representing approximately half the market capitalization of the S&P
500 Index that have been identified as being on the growth end of the growth-value spectrum.
7 Commencement of operations.
| Performance Summary for the Period Ended August 31, 2009 | ||||||||
| Average Annual Total Returns8 | ||||||||
| 1 Year | 5 Years | Since Inception9 | ||||||
| 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | ||
| Total Returns | charge | charge | charge | charge | charge | charge | ||
| Institutional | 1.34% | (10.94)% | N/A | 0.79% | N/A | 1.44% | N/A | |
| Investor A | 1.23 | (11.12) | (15.78)% | 0.55 | (0.53)% | 1.19 | 0.39% | |
| Investor B | 0.89 | (11.76) | (15.57) | (0.21) | (0.52) | 0.43 | 0.43 | |
| Investor C | 0.88 | (11.83) | (12.68) | (0.22) | (0.22) | 0.42 | 0.42 | |
| S&P 500 Index | 40.52 | (18.25) | N/A | 0.49 | N/A | 4.21 | N/A | |
| Russell 1000 Growth Index | 38.51 | (16.76) | N/A | 1.21 | N/A | 3.96 | N/A | |
| Barclays Capital US Aggregate Bond Index | 5.95 | 7.94 | N/A | 4.96 | N/A | 4.92 | N/A | |
| S&P 500 Citigroup Growth Index | 34.60 | (16.08) | N/A | 0.32 | N/A | 3.25 | N/A | |
| 8 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund | ||||||||
| Performance” on page 10 for a detailed description of share classes, including any related sales charges and fees. | ||||||||
| 9 The Fund commenced operations on 11/13/02. | ||||||||
| N/A — Not applicable as share class and index do not have a sales charge. | ||||||||
| Past performance is not indicative of future results. | ||||||||
| Expense Example | ||||||||
| Actual | Hypothetical11 | |||||||
| Beginning | Ending | Beginning | Ending | |||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||
| March 1, 2009 | August 31, 2009 | During the Period10 | March 1, 2009 August 31, 2009 | During the Period10 | ||||
| Institutional | $1,000 | $1,013.40 | $10.10 | $1,000 | $1,015.17 | $10.11 | ||
| Investor A | $1,000 | $1,012.30 | $11.36 | $1,000 | $1,013.91 | $11.37 | ||
| Investor B | $1,000 | $1,008.90 | $15.14 | $1,000 | $1,010.13 | $15.15 | ||
| Investor C | $1,000 | $1,008.80 | $15.14 | $1,000 | $1,010.13 | $15.15 | ||
| 10 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.99% for Institutional, 2.24% for Investor A, 2.99% for Investor B, and 2.99% for | ||||||||
| Investor C), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). | ||||||||
| 11 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. | ||||||||
| See “Disclosure of Expenses” on page 10 for further information on how expenses were calculated. | ||||||||
| If you would like a copy, free of charge, of the most recent annual or quarterly report of Main Place Funding, LLC, the Fund’s Warranty Provider, or its parent corporation, | ||||||||
| Bank of America Corporation, please contact the Fund at (800) 441-7762. | ||||||||
| ANNUAL REPORT | AUGUST 31, 2009 | 5 | ||||||
Fund Summary as of August 31, 2009 BlackRock Global Growth Fund, Inc.
Portfolio Management Commentary
How did the Fund perform?
• During the 12-month period, the Fund underperformed its current bench-
mark, the S&P Global Broad Market Index (BMI), which is a comprehensive,
rules based index designed to measure global stock market performance.
The Fund now uses this index as its benchmark rather than the MSCI World
Index because Fund management believes it is a more appropriate meas-
ure of Fund management’s investment style and is better aligned with the
Fund’s investment strategies. The Fund’s Institutional, Investor A and Class R
Shares outperformed its former benchmark, the MSCI World Index, while
Investor B and Investor C Shares lagged that index.
• The current portfolio management team began managing the fund in
November 2008.
What factors influenced performance?
• Stock selection in financials hindered performance relative to the S&P
Global BMI, as returns within the sector were unable to keep pace with the
market’s recent, impressive rally. Despite strong absolute returns, results
within the sector hurt comparative results. Other areas of weakness for the
period included stock selection within information technology (“IT”), particu-
larly semiconductors and hardware, as well as industrials, where airline
and trucking positions weighed most on returns. From an allocation per-
spective, an overweight in the oil & gas exploration & production sub-
industry detracted. Geographically, underweights in Asia ex-Japan, Europe
and Latin America hampered results. Finally, the Fund’s cash allocation
stemmed performance as markets advanced.
• On the positive side, materials and consumer staples contributed most
significantly, resulting mainly from strong stock selection. Within materials,
we experienced strong gains from several mining stocks that benefited
from rising commodities prices. An overweight in gold miners for much of
the period also was beneficial. We remained underweight in the generally-
defensive consumer staples sector. However, our positioning within the
sector was favorable and we benefited from exposure to some more
economically-sensitive areas, such as personal products and agricultural
retailers. From an allocation perspective, underweights in utilities and
health care were sources of relative strength, as was our financials expo-
sure. Regionally, overweights in emerging Asia and North America and an
underweight in Japan contributed as well.
Describe recent portfolio activity.
• At the start of the period, we favored defensive names, only to begin cutting
our exposure in the fourth quarter of 2008 as valuations for cyclical com-
panies reached levels that warranted attention. Simultaneously, we began
adding back to cyclical industries and financials in an effort to cover our
existing underweights. The goal was to be able to participate if markets
began to normalize, knowing that defensives would lag in that environment.
After the strong gains experienced since March, we pared back exposure to
areas like consumer discretionary, energy and IT, bringing those weights in
line with the benchmark. Geographically, we added back to European names
during the year and have recently begun taking profits in our long-held over-
weight in emerging Asia.
Describe Fund positioning at period end.
• At period end, the Fund held approximately 4% in cash, and was well-
diversified with very modest sector, style, geographic and market risk expo-
sures. We believe caution is warranted as earnings visibility remains poor
and economic recoveries from financial crises have historically been weak.
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.
| Portfolio Information | ||||
| Percent of | Percent of | |||
| Long-Term | Long-Term | |||
| Ten Largest Holdings | Investments | Geographic Allocation | Investments | |
| Roche Holding AG | 1% | United States | 43% | |
| eBay, Inc. | 1 | United Kingdom | 8 | |
| Pfizer, Inc. | 1 | Japan | 7 | |
| GlaxoSmithKline Plc | 1 | Switzerland | 6 | |
| Nestle SA Registered Shares | 1 | France | 4 | |
| Itochu Corp. | 1 | Canada | 3 | |
| Chevron Corp. | 1 | Germany | 3 | |
| Novartis AG Registered Shares | 1 | Spain | 2 | |
| Manpower, Inc. | 1 | Singapore | 2 | |
| Tyco International Ltd. | 1 | Hong Kong | 2 | |
| Other1 | 20 | |||
| 1 Other includes a 1% holding in each of the following countries: Taiwan, South Korea, | ||||
| Russia, India, China, Netherlands, Luxembourg, Brazil, South Africa, Australia, Sweden, | ||||
| Italy, Cayman Islands, Bermuda, Belgium, Norway, New Zealand, Mexico, Kazakhstan | ||||
| and Finland. | ||||
| 6 | ANNUAL REPORT | AUGUST 31, 2009 | ||
BlackRock Global Growth Fund, Inc.
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not
have a sales charge.
2 The Fund invests primarily in equity securities with a particular emphasis on companies located in various foreign countries and the U.S.
that have exhibited above-average growth rates in earnings.
3 This is a comprehensive, rules based index designed to measure global stock market performance. The Fund now uses this index as its
benchmark rather than the MSCI World Index because Fund management believes it is a more appropriate measure of Fund management’s
investment style and is better aligned with the Fund’s investment strategies.
4 This unmanaged market capitalization-weighted index is comprised of a representative sampling of large-, medium- and small-capitalization
companies in 22 countries, including the United States.
| Performance Summary for the Period Ended August 31, 2009 | ||||||||
| Average Annual Total Returns5 | ||||||||
| 1 Year | 5 Years | 10 Years | ||||||
| 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | ||
| Total Returns | charge | charge | charge | charge | charge | charge | ||
| Institutional | 51.10% | (16.45)% | N/A | 9.68% | N/A | 2.08% | N/A | |
| Investor A | 50.88 | (16.71) | (21.08)% | 9.37 | 8.20% | 1.82 | 1.27% | |
| Investor B | 50.18 | (17.46) | (21.18) | 8.46 | 8.17 | 1.18 | 1.18 | |
| Investor C | 50.25 | (17.33) | (18.16) | 8.51 | 8.51 | 1.02 | 1.02 | |
| Class R | 50.60 | (17.06) | N/A | 9.00 | N/A | 1.63 | N/A | |
| S&P Global Broad Market Index | 52.08 | (15.41) | N/A | 5.09 | N/A | 2.69 | N/A | |
| MSCI World Index | 46.66 | (17.21) | N/A | 3.09 | N/A | 0.43 | N/A | |
| 5 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund | ||||||||
| Performance” on page 10 for a detailed description of share classes, including any related sales charges and fees. | ||||||||
| N/A — Not applicable as share class and index do not have a sales charge. | ||||||||
| Past performance is not indicative of future results. | ||||||||
| Expense Example | ||||||||
| Actual | Hypothetical7 | |||||||
| Beginning | Ending | Beginning | Ending | |||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||
| March 1, 2009 | August 31, 2009 | During the Period6 | March 1, 2009 August 31, 2009 | During the Period6 | ||||
| Institutional | $1,000 | $1,511.00 | $ 6.96 | $1,000 | $1,019.65 | $ 5.60 | ||
| Investor A | $1,000 | $1,508.80 | $ 8.92 | $1,000 | $1,018.09 | $ 7.17 | ||
| Investor B | $1,000 | $1,501.80 | $14.13 | $1,000 | $1,013.91 | $11.37 | ||
| Investor C | $1,000 | $1,502.50 | $14.07 | $1,000 | $1,013.96 | $11.32 | ||
| Class R | $1,000 | $1,506.00 | $12.00 | $1,000 | $1,015.62 | $ 9.65 | ||
| 6 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.10% for Institutional, 1.41% for Investor A, 2.24% for Investor B, 2.23% for Investor C | ||||||||
| and 1.90% for Class R), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). | ||||||||
| 7 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. | ||||||||
| See “Disclosure of Expenses” on page 10 for further information on how expenses were calculated. | ||||||||
| ANNUAL REPORT | AUGUST 31, 2009 | 7 | ||||||
Fund Summary as of August 31, 2009 BlackRock Focus Growth Fund, Inc.
Portfolio Management Commentary
How did the Fund perform?
• For the 12-month period, through its investment in Master Focus Growth
LLC (the “Master LLC”), the Fund’s Institutional and Investor A Shares out-
performed the current benchmark, the Russell 1000 Growth Index, while
Investor B and Investor C Shares trailed the index. All share classes under-
performed the former benchmark, the S&P 500 Citigroup Growth Index, but
outperformed the broad-market S&P 500 Index.
• While stock selection had a pronounced negative effect during the
period, a major cash distribution to the Master LLC generated its
relative outperformance.
What factors influenced performance?
• At the end of December, the Master LLC received the settlement proceeds
from a class-action suit related to fraud in one of its investments from sev-
eral years ago. This resulted in a one-time cash inflow distributed across all
investors, producing a large jump in the Fund’s net asset value, and resulting
in strong performance for the year as a whole.
• The Master LLC’s investments in the materials sector added value during the
period. The highly volatile metals and mining industry within materials pro-
vided opportunities to generate absolute and relative outperformance.
Copper producer Freeport-McMoRan Copper & Gold, Inc. benefited from the
rapid rebound in copper prices in 2009, while gold miner Agnico-Eagle Mines
Ltd. showed relative strength during this period of heightened gold prices.
• Conversely, stock selection across several sectors detracted from perform-
ance, most notably consumer discretionary and health care. In consumer
discretionary, several investments in specialty retail, including GameStop
Corp. and Dick’s Sporting Goods, Inc., declined amid the challenging con-
sumer environment. An investment in apparel manufacturer Polo Ralph
Lauren Corp. also hindered sector performance. Within health care, while
the Master LLC’s overweight contributed to relative performance, stock selec-
tion in the sector was a significant detractor. The Master LLC’s investment in
the pharmaceutical industry accounted for the majority of the underperfor-
mance. During the period, stable growth holdings Abbott Laboratories and
Johnson & Johnson underperformed the rest of the industry, which was led
by a sharp rise in Schering-Plough Corp., a Russell 1000 Growth Index con-
stituent that surged on the news of its acquisition by Merck & Co. We sold
Johnson & Johnson, but maintain a position in Abbott Laboratories, Inc.
Describe recent portfolio activity.
A new portfolio management team assumed responsibility for the Master
LLC in November 2008. At that time, the new team transitioned the Master
LLC to reflect their highest conviction positions and, in doing so, made
numerous changes. Some of the most notable changes during the 12
months included raising the weightings in information technology (“IT”),
consumer staples and healthcare, and significantly lowering exposure
to industrials.
Describe Fund positioning at period end.
Relative to the Russell 1000 Growth Index, the Master LLC held overweight
positions in health care, IT and energy, while it held notable underweights in
consumer staples and utilities. The Master LLC also held approximately 2%
in cash.
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.
8 ANNUAL REPORT AUGUST 31, 2009
BlackRock Focus Growth Fund, Inc.
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, transaction costs and other operating expenses, including advisory and administration fees, if any.
Institutional Shares do not have a sales charge.
2 The Fund invests all of its assets in Master Focus Growth LLC (the “Master LLC”). The Master LLC invests primarily in common stocks of approxi-
mately 25 to 35 companies that Fund management believes have strong earnings and revenue growth and capital appreciation potential.
3 This unmanaged Index covers 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE issues),
representing about 75% of NYSE market capitalization and 30% of NYSE issues.
4 This unmanaged broad-based index is a subset of the Russell 1000 Index consisting of those Russell 1000 securities with a greater-than-
average growth orientation. The Fund now uses this index as its benchmark rather than the S&P 500 Citigroup Growth Index because Fund
management believes the Russell 1000 Growth Index is a more appropriate measure of Fund management’s investment style and is better
aligned with the Fund’s investment strategy.
5 This unmanaged Index is designed to provide a comprehensive measure of large-cap U.S. equity “growth” performance. It is an unmanaged
float adjusted market capitalization weighted index comprised of stocks representing approximately half the market capitalization of the
S&P 500 Index that have been identified as being on the growth end of the growth-value spectrum.
6 Commencement of operations.
| Performance Summary for the Period Ended August 31, 2009 | ||||||||
| Average Annual Total Returns7 | ||||||||
| 1 Year | 5 Years | Since Inception8 | ||||||
| 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | ||
| Total Returns | charge | charge | charge | charge | charge | charge | ||
| Institutional | 32.43% | (16.24)% | N/A | 5.92% | N/A | (15.77)% | N/A | |
| Investor A | 31.94 | (16.67) | (21.04)% | 5.55 | 4.42% | (16.05) | (16.52)% | |
| Investor B | 32.33 | (16.98) | (20.72) | 4.68 | 4.35 | (16.65) | (16.65) | |
| Investor C | 31.58 | (17.45) | (18.28) | 4.56 | 4.56 | (16.77) | (16.77) | |
| S&P 500 Index | 40.52 | (18.25) | N/A | 0.49 | N/A | (1.58) | N/A | |
| Russell 1000 Growth Index | 38.51 | (16.76) | N/A | 1.21 | N/A | (5.71) | N/A | |
| S&P 500 Citigroup Growth Index | 34.60 | (16.08) | N/A | 0.32 | N/A | (4.78) | N/A | |
| 7 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund | ||||||||
| Performance” on page 10 for a detailed description of share classes, including any related sales charges and fees. | ||||||||
| 8 The Fund commenced operations on 3/03/00. | ||||||||
| N/A — Not applicable as share class and index do not have a sales charge. | ||||||||
| Past performance is not indicative of future results. | ||||||||
| Expense Example | ||||||||
| Actual | Hypothetical10 | |||||||
| Beginning | Ending | Beginning | Ending | |||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||
| March 1, 2009 | August 31, 2009 | During the Period9 | March 1, 2009 August 31, 2009 | During the Period9 | ||||
| Institutional | $1,000 | $1,324.30 | $10.37 | $1,000 | $1,016.28 | $ 9.00 | ||
| Investor A | $1,000 | $1,319.40 | $12.98 | $1,000 | $1,014.01 | $11.27 | ||
| Investor B | $1,000 | $1,323.30 | $14.64 | $1,000 | $1,012.60 | $12.68 | ||
| Investor C | $1,000 | $1,315.80 | $17.34 | $1,000 | $1,010.23 | $15.05 | ||
| 9 For each class of the Fund, expenses are equal to the expense ratio for the class (1.77% for Institutional, 2.22% for Investor A, 2.50% for Investor B, and 2.97% for Investor C), | ||||||||
| multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). | ||||||||
| 10 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. | ||||||||
| See “Disclosure of Expenses” on page 10 for further information on how expenses were calculated. | ||||||||
| ANNUAL REPORT | AUGUST 31, 2009 | 9 | ||||||
About Fund Performance
• Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available only
to eligible investors.
• Investor A Shares incur a maximum initial sales charge (front-end load) of
5.25% and a service fee of 0.25% per year (but no distribution fee).
• Investor B Shares are subject to a maximum contingent deferred sales
charge of 4.50% declining to 0% after six years. In addition, Investor B
Shares are subject to a distribution fee of 0.75% per year and a service
fee of 0.25% per year. These shares automatically convert to Investor A
Shares after approximately eight years. (There is no initial sales charge for
automatic share conversions.) All returns for periods greater than eight
years reflect this conversion. Investor B Shares of the Funds are no longer
available for purchase except through exchanges, dividend reinvestments,
and for purchase by certain qualified employee benefit plans.
• Investor C Shares are subject to a 1% contingent deferred sales charge if
redeemed within one year of purchase. In addition, Investor C Shares are
subject to a distribution fee of 0.75% and a service fee of 0.25%.
• Class R Shares (available only to BlackRock Global Growth Fund, Inc.) do
not incur a maximum initial sales charge (front-end load) or deferred sales
charge. These shares are subject to a distribution fee of 0.25% per year and
a service fee of 0.25% per year. Class R Shares are available only to certain
retirement plans. Prior to January 3, 2003, Class R Share performance
results are those of Institutional Shares (which have no distribution or service
fees) restated to reflect the Class R Share fees.
Performance information reflects past performance and does not guarantee
future results. Current performance may be lower or higher than the per-
formance data quoted. Refer to www.blackrock.com/funds to obtain per-
formance data current to the most recent month-end. Performance results
do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. Figures shown in
the performance tables on the previous pages assume reinvestment of all
dividends and capital gain distributions, if any, at net asset value 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, distribution and transfer agency
fees applicable to each class, which are deducted from the income avail-
able to be paid to shareholders.
Disclosure of Expenses
Shareholders of these Funds may incur the following charges: (a)
expenses related to transactions, including sales charges, redemption fees
and exchange fees; and (b) operating expenses including advisory fees,
service and distribution fees including 12b-1 fees, and other Fund
expenses. The expense example on the previous pages (which is based on
a hypothetical investment of $1,000 invested on March 1, 2009 and held
through August 31, 2009) is intended to assist shareholders both in cal-
culating expenses based on an investment in the Funds 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 correspon-
ding to their Fund and share class under the headings “Expenses Paid
During the Period.”
The table also provides information about hypothetical account values and
hypothetical expenses based on each Fund’s actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in these
Funds and other funds, compare the 5% hypothetical 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, redemption fees or exchange fees. Therefore, the hypotheti-
cal examples are useful in comparing ongoing expenses only, and will not
help shareholders determine the relative total expenses of owning differ-
ent funds. If these transactional expenses were included, shareholder
expenses would have been higher.
Derivative Financial Instruments
The Funds may invest in various derivative instruments, including financial
futures contracts, foreign currency exchange contracts, options and written
option contracts, as specified in Note 2 of the Notes to Financial State-
ments, which constitute forms of economic leverage. Such instruments
are used to obtain exposure to a market without owning or taking physical
custody of securities or to hedge market and/or interest rate risks. Such
derivative instruments involve risks, including the imperfect correlation
between the value of a derivative instrument and the underlying asset,
possible default of the counterparty to the transaction and illiquidity of
the derivative instrument.
The Funds’ ability to successfully use a derivative instrument depends on
the investment advisor’s ability to accurately predict pertinent market
movements, which cannot be assured. The use of derivative instruments
may result in losses greater than if they had not been used, may require a
Fund to sell or purchase portfolio securities at inopportune times or for
distressed values, may limit the amount of appreciation a Fund can realize
on an investment or may cause a Fund to hold a security that it might
otherwise sell. The Funds’ investments in these instruments are discussed
in detail in the Notes to Financial Statements.
10 ANNUAL REPORT AUGUST 31, 2009
Schedule of Investments August 31, 2009
BlackRock Fundamental Growth Principal Protected Fund
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Aerospace & Defense — 0.1% | ||
| Honeywell International, Inc. | 670 | $ 24,629 |
| Air Freight & Logistics — 0.3% | ||
| C.H. Robinson Worldwide, Inc. | 680 | 38,257 |
| United Parcel Service, Inc., Class B | 1,310 | 70,033 |
| 108,290 | ||
| Airlines — 0.1% | ||
| Delta Air Lines, Inc. (a) | 6,150 | 44,403 |
| Beverages — 0.3% | ||
| The Coca-Cola Co. | 1,750 | 85,348 |
| PepsiCo, Inc. | 630 | 35,702 |
| 121,050 | ||
| Biotechnology — 0.4% | ||
| Amgen, Inc. (a) | 1,230 | 73,480 |
| Celgene Corp. (a) | 960 | 50,083 |
| Genzyme Corp. (a) | 500 | 27,855 |
| 151,418 | ||
| Capital Markets — 0.1% | ||
| The Goldman Sachs Group, Inc. | 300 | 49,638 |
| Chemicals — 0.1% | ||
| Ecolab, Inc. | 710 | 30,026 |
| Communications Equipment — 0.6% | ||
| Cisco Systems, Inc. (a) | 5,000 | 108,000 |
| QUALCOMM, Inc. | 2,740 | 127,191 |
| 235,191 | ||
| Computers & Peripherals — 0.8% | ||
| Apple, Inc. (a) | 1,110 | 186,713 |
| Hewlett-Packard Co. | 1,200 | 53,868 |
| International Business Machines Corp. | 420 | 49,581 |
| Seagate Technology | 2,100 | 29,085 |
| 319,247 | ||
| Diversified Financial Services — 0.2% | ||
| CME Group, Inc. | 150 | 43,656 |
| JPMorgan Chase & Co. | 940 | 40,852 |
| 84,508 | ||
| Energy Equipment & Services — 0.1% | ||
| Schlumberger Ltd. | 390 | 21,918 |
| Transocean Ltd. (a) | 426 | 32,308 |
| 54,226 | ||
| Food & Staples Retailing — 0.2% | ||
| Wal-Mart Stores, Inc. | 1,540 | 78,340 |
| Health Care Equipment & Supplies — 0.3% | ||
| Boston Scientific Corp. (a) | 6,620 | 77,785 |
| Zimmer Holdings, Inc. (a) | 920 | 43,562 |
| 121,347 | ||
| Health Care Providers & Services — 0.4% | ||
| Medco Health Solutions, Inc. (a) | 1,010 | 55,772 |
| UnitedHealth Group, Inc. | 2,240 | 62,720 |
| WellPoint, Inc. (a) | 920 | 48,622 |
| 167,114 | ||
| Health Care Technology — 0.1% | ||
| Cerner Corp. (a) | 380 | 23,450 |
| Common Stocks | Shares | Value |
| Hotels, Restaurants & Leisure — 0.2% | ||
| Las Vegas Sands Corp. (a) | 620 | $ 8,841 |
| McDonald’s Corp. | 510 | 28,682 |
| Starbucks Corp. (a) | 940 | 17,851 |
| Starwood Hotels & Resorts Worldwide, Inc. | 380 | 11,316 |
| 66,690 | ||
| Household Products — 0.2% | ||
| Clorox Co. | 580 | 34,272 |
| The Procter & Gamble Co. | 1,230 | 66,555 |
| 100,827 | ||
| Industrial Conglomerates — 0.2% | ||
| 3M Co. | 1,090 | 78,589 |
| Insurance — 0.1% | ||
| MetLife, Inc. | 1,030 | 38,893 |
| Internet & Catalog Retail — 0.1% | ||
| Amazon.com, Inc. (a) | 710 | 57,645 |
| Internet Software & Services — 0.4% | ||
| Baidu.com, Inc. — ADR (a) | 70 | 23,104 |
| Google, Inc., Class A (a) | 280 | 129,268 |
| 152,372 | ||
| Life Sciences Tools & Services — 0.0% | ||
| Covance, Inc. (a) | 290 | 15,399 |
| Machinery — 0.3% | ||
| Cummins, Inc. | 1,110 | 50,305 |
| Danaher Corp. | 1,450 | 88,030 |
| 138,335 | ||
| Media — 0.1% | ||
| CBS Corp., Class B | 3,370 | 34,879 |
| Metals & Mining — 0.2% | ||
| Agnico-Eagle Mines Ltd. | 520 | 29,848 |
| Freeport-McMoRan Copper & Gold, Inc., Class B | 450 | 28,341 |
| United States Steel Corp. | 560 | 24,517 |
| 82,706 | ||
| Multiline Retail — 0.3% | ||
| JCPenney Co., Inc. | 890 | 26,736 |
| Kohl’s Corp. (a) | 1,540 | 79,449 |
| 106,185 | ||
| Oil, Gas & Consumable Fuels — 0.3% | ||
| Exxon Mobil Corp. | 560 | 38,724 |
| PetroHawk Energy Corp. (a) | 2,130 | 45,859 |
| Petroleo Brasileiro SA — ADR | 780 | 30,919 |
| Range Resources Corp. | 520 | 25,152 |
| 140,654 | ||
| Personal Products — 0.1% | ||
| Avon Products, Inc. | 1,300 | 41,431 |
| Pharmaceuticals — 0.4% | ||
| Abbott Laboratories | 1,450 | 65,583 |
| Pfizer, Inc. | 2,610 | 43,587 |
| Teva Pharmaceutical Industries Ltd. — ADR | 940 | 48,410 |
| 157,580 | ||
| Professional Services — 0.0% | ||
| Manpower, Inc. | 320 | 16,544 |
See Notes to Financial Statements.
ANNUAL REPORT AUGUST 31, 2009 11
Schedule of Investments (concluded)
BlackRock Fundamental Growth Principal Protected Fund
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Semiconductors & Semiconductor | ||
| Equipment — 0.5% | ||
| Broadcom Corp., Class A (a) | 1,820 $ | 51,779 |
| Lam Research Corp. (a) | 1,390 | 42,673 |
| Micron Technology, Inc. (a) | 3,420 | 25,205 |
| Nvidia Corp. (a) | 2,210 | 32,089 |
| PMC-Sierra, Inc. (a) | 4,170 | 37,864 |
| 189,610 | ||
| Software — 0.7% | ||
| Activision Blizzard, Inc. (a) | 2,780 | 32,276 |
| Check Point Software Technologies Ltd. (a) | 1,740 | 48,494 |
| Microsoft Corp. | 5,060 | 124,729 |
| Oracle Corp. | 1,300 | 28,431 |
| Salesforce.com, Inc. (a) | 800 | 41,496 |
| 275,426 | ||
| Specialty Retail — 0.3% | ||
| CarMax, Inc. (a) | 1,620 | 28,042 |
| Home Depot, Inc. | 1,340 | 36,569 |
| Ross Stores, Inc. | 780 | 36,379 |
| 100,990 | ||
| Tobacco — 0.1% | ||
| Philip Morris International, Inc. | 1,160 | 53,024 |
| Wireless Telecommunication Services — 0.1% | ||
| American Tower Corp., Class A (a) | 1,070 | 33,865 |
| Total Long-Term Investments | ||
| (Cost — $2,738,303) — 8.7% | 3,494,521 | |
| Par | ||
| Short-Term Securities | (000) | |
| U.S. Treasury STRIPS (b): | ||
| 0.43%, 11/15/09 | $ 1,003 | 1,002,754 |
| 1.04%, 11/15/09 | 2,571 | 2,569,347 |
| 3.34%, 11/15/09 | 33,480 | 33,476,418 |
| Total Short-Term Securities | ||
| (Cost — $36,818,543) — 92.0% | 37,048,519 | |
| Total Investments (Cost — $39,556,846*) — 100.7% | 40,543,040 | |
| Liabilities in Excess of Other Assets — (0.7)% | (286,648) | |
| Net Assets — 100.0% | $ 40,256,392 | |
| * The cost and unrealized appreciation (depreciation) of investments as of August 31, | ||
| 2009, as computed for federal income tax purposes, were as follows: | ||
| Aggregate cost | $ 40,069,925 | |
| Gross unrealized appreciation | $ 490,661 | |
| Gross unrealized depreciation | (17,546) | |
| Net unrealized appreciation | $ 473,115 | |
| (a) Non-income producing security. | ||
| (b) Represents a zero-coupon bond. Rate shown reflects the current yield as of | ||
| report date. | ||
| • Investments in companies considered to be an affiliate of the Fund, for purposes | ||
| of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: | ||
| Net | ||
| Affiliate | Activity | Income |
| BlackRock Liquidity Funds, TempFund | — | $ 10 |
| BlackRock Liquidity Series, LLC | ||
| Cash Sweep Series | — | $641 |
| •Portfolio Abbreviations: | |||
| ADR | American Depositary Receipt | ||
| STRIPS | Separately Traded Registered Interest and Principal of Securities | ||
| • | For Fund compliance purposes, the Fund’s industry classifications refer to any one | ||
| or more of the industry sub-classifications used by one or more widely recognized | |||
| market indexes or ratings group indexes, and/or as defined by Fund management. | |||
| This definition may not apply for the purposes of this report, which may combine | |||
| industry sub-classifications for reporting ease. | |||
| • | Effective September 1, 2008, the Fund adopted Financial Accounting Standards | ||
| Board Statement of Financial Accounting Standards No. 157, “Fair Value | |||
| Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, estab- | |||
| lishes a framework for measuring fair values and requires additional disclosures | |||
| about the use of fair value measurements. Various inputs are used in determining | |||
| the fair value of investments, which are as follows: | |||
| • Level 1 — price quotations in active markets/exchanges for identical securities | |||
| • Level 2 — other observable inputs (including, but not limited to: quoted prices | |||
| for identical or 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 severi- | |||
| ties, 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 | |||
| Fund’s own assumptions used in determining the fair value of investments) | |||
| The inputs or methodology used for valuing securities are not necessarily an indica- | |||
| tion of the risk associated with investing in those securities. For information about | |||
| the Fund’s policy regarding valuation of investments and other significant accounting | |||
| policies, please refer to Note 1 of the Notes to Financial Statements. | |||
| The following table summarizes the inputs used as of August 31, 2009 in determin- | |||
| ing the fair valuation of the Fund’s investments: | |||
| Investments in | |||
| Valuation Inputs | Securities | ||
| Assets | |||
| Level 1 — Long-Term Investments1 | $ 3,494,521 | ||
| Level 2 — Short-Term Securities | 37,048,519 | ||
| Level 3 | — | ||
| Total | $ 40,543,040 | ||
| 1 See above Schedule of Investments for values in each industry. | |||
See Notes to Financial Statements.
12 ANNUAL REPORT AUGUST 31, 2009
Schedule of Investments August 31, 2009
BlackRock Global Growth Fund, Inc.
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Australia — 0.7% | ||
| Woodside Petroleum Ltd. | 62,400 | $ 2,589,189 |
| Belgium — 0.6% | ||
| Anheuser-Busch InBev NV | 52,800 | 2,282,907 |
| Bermuda — 0.6% | ||
| Invesco Ltd. — ADR | 120,200 | 2,494,150 |
| Brazil — 0.8% | ||
| BM&F Bovespa SA | 120,700 | 745,449 |
| Banco Bradesco SA — ADR | 71,600 | 1,160,636 |
| Itau Unibanco Holdings SA — ADR | 70,566 | 1,181,982 |
| 3,088,067 | ||
| Canada — 3.4% | ||
| Canadian Natural Resources Ltd. | 25,100 | 1,437,790 |
| EnCana Corp. | 44,000 | 2,293,346 |
| Kinross Gold Corp. | 159,200 | 3,021,855 |
| Research In Motion Ltd. (a) | 18,400 | 1,344,304 |
| Royal Bank of Canada | 26,800 | 1,381,923 |
| Suncor Energy, Inc. | 72,300 | 2,211,763 |
| The Toronto-Dominion Bank | 25,800 | 1,595,016 |
| 13,285,997 | ||
| Cayman Islands — 0.6% | ||
| AirMedia Group, Inc. — ADR (a) | 76,000 | 557,080 |
| Herbalife Ltd. | 49,800 | 1,507,944 |
| Noah Education Holdings Ltd. — ADR | 52,800 | 234,432 |
| 2,299,456 | ||
| China — 1.0% | ||
| China Unicom Ltd. | 882,200 | 1,233,512 |
| Focus Media Holding Ltd. — ADR (a)(b) | 100,200 | 897,792 |
| Sina Corp. — ADR (a) | 56,900 | 1,707,000 |
| 3,838,304 | ||
| Denmark — 0.3% | ||
| Novo-Nordisk A/S, Class B | 17,200 | 1,049,357 |
| Finland — 0.5% | ||
| Fortum Oyj | 75,800 | 1,984,641 |
| France — 4.1% | ||
| AXA SA | 86,100 | 1,966,582 |
| BNP Paribas SA | 25,000 | 2,015,809 |
| Cie de Saint-Gobain SA | 58,000 | 2,620,424 |
| France Telecom SA | 53,500 | 1,360,625 |
| Pinault-Printemps-Redoute | 18,600 | 2,165,312 |
| Societe Generale SA | 18,300 | 1,479,192 |
| Total SA | 31,800 | 1,824,687 |
| Unibail — Rodamco | 5,800 | 1,149,706 |
| Vivendi SA | 62,700 | 1,789,813 |
| 16,372,150 | ||
| Germany — 2.9% | ||
| Allianz AG Registered Shares | 7,300 | 845,817 |
| Bayerische Motoren Werke AG | 43,900 | 2,003,692 |
| Deutsche Boerse AG | 17,900 | 1,369,088 |
| MAN SE | 35,300 | 2,706,186 |
| RWE AG | 29,500 | 2,735,449 |
| Salzgitter AG | 18,800 | 1,794,360 |
| 11,454,592 | ||
| Hong Kong — 1.8% | ||
| China Construction Bank, Class H | 1,418,500 | 1,070,848 |
| China Mobile Ltd. | 118,500 | 1,163,549 |
| China Railway Construction Corp. | 1,021,800 | 1,509,983 |
| Industrial and Commercial Bank of China Ltd. | 1,583,600 | 1,081,104 |
| New World Development Ltd. | 580,500 | 1,171,289 |
| Wing Hang Bank Ltd. | 116,600 | 1,053,503 |
| 7,050,276 |
| Common Stocks | Shares | Value |
| India — 1.0% | ||
| Bharti Tele-Ventures Ltd. | 311,100 | $ 2,703,509 |
| Punjab National Bank Ltd. | 83,300 | 1,165,300 |
| 3,868,809 | ||
| Indonesia — 0.3% | ||
| Bank Negara Indonesia Persero Tbk PT | 6,618,000 | 1,273,101 |
| Ireland — 0.2% | ||
| Covidien Plc | 24,200 | 957,594 |
| Israel — 0.4% | ||
| Teva Pharmaceutical Industries Ltd. — ADR | 32,300 | 1,663,450 |
| Italy — 0.6% | ||
| A2A SpA | 701,700 | 1,361,166 |
| Intesa Sanpaolo SpA | 278,600 | 1,210,601 |
| 2,571,767 | ||
| Japan — 6.7% | ||
| Amada Co., Ltd. | 385,500 | 2,702,300 |
| Fujitsu Ltd. | 151,000 | 1,013,893 |
| Honda Motor Co., Ltd. | 52,000 | 1,630,489 |
| Itochu Corp. | 502,300 | 3,555,305 |
| JFE Holdings, Inc. | 45,400 | 1,584,430 |
| Kenedix Realty Investment Corp. | 150 | 561,333 |
| Mitsubishi Estate Co., Ltd. | 32,700 | 540,825 |
| Mitsubishi UFJ Financial Group, Inc. | 153,700 | 977,112 |
| Mitsui & Co., Ltd. | 210,900 | 2,742,545 |
| Mitsui Fudosan Co., Ltd. | 32,800 | 618,057 |
| Mizuho Financial Group, Inc. | 193,485 | 470,731 |
| Nippon Residential Investment Corp. | 200 | 497,612 |
| Nippon Steel Corp. | 394,200 | 1,545,483 |
| Sumitomo Mitsui Financial Group, Inc. | 26,000 | 1,117,118 |
| Toyo Suisan Kaisha, Ltd. | 75,400 | 1,918,928 |
| Toyota Motor Corp. | 52,300 | 2,229,771 |
| Yamato Transport Co., Ltd. | 165,300 | 2,730,336 |
| 26,436,268 | ||
| Kazakhstan — 0.5% | ||
| Eurasian Natural Resources Corp. | 143,000 | 1,993,889 |
| Luxembourg — 0.8% | ||
| ArcelorMittal | 55,300 | 1,977,774 |
| Millicom International Cellular SA (a) | 18,900 | 1,333,584 |
| 3,311,358 | ||
| Malaysia — 0.3% | ||
| Bumiputra-Commerce Holdings Bhd | 379,200 | 1,066,341 |
| Mexico — 0.5% | ||
| Fomento Economico Mexicano, SA de CV — ADR | 55,600 | 2,022,728 |
| Netherlands — 0.9% | ||
| Corio NV | 19,000 | 1,163,693 |
| Randstad Holdings NV | 54,800 | 2,270,564 |
| 3,434,257 | ||
| New Zealand — 0.5% | ||
| Telecom Corp. of New Zealand Ltd. | 1,063,800 | 1,997,801 |
| Norway — 0.5% | ||
| Yara International ASA | 74,800 | 2,041,359 |
| Russia — 1.0% | ||
| AO VimpelCom — ADR | 92,400 | 1,426,656 |
| LUKOIL — ADR | 50,900 | 2,575,540 |
| 4,002,196 | ||
| Singapore — 1.9% | ||
| CapitaLand Ltd. | 410,900 | 1,057,230 |
| DBS Group Holdings Ltd. | 124,000 | 1,088,926 |
| Singapore Telecommunications Ltd. | 827,900 | 1,804,611 |
| United Overseas Bank Ltd. | 130,400 | 1,512,480 |
| Wilmar International Ltd. | 480,100 | 2,180,592 |
| 7,643,839 |
See Notes to Financial Statements.
ANNUAL REPORT AUGUST 31, 2009 13
Schedule of Investments (continued)
BlackRock Global Growth Fund, Inc.
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| South Africa — 0.7% | ||
| Naspers Ltd. | 87,600 | $ 2,866,375 |
| South Korea — 1.3% | ||
| GS Engineering & Construction Corp. | 31,200 | 2,386,695 |
| Samsung Electronics Co., Ltd. | 4,509 | 2,780,360 |
| 5,167,055 | ||
| Spain — 2.0% | ||
| Banco Bilbao Vizcaya Argentaria SA | 102,900 | 1,829,503 |
| Banco Santander SA | 89,400 | 1,376,335 |
| Inditex SA | 45,500 | 2,481,436 |
| Telefonica SA | 80,400 | 2,032,927 |
| 7,720,201 | ||
| Sweden — 0.6% | ||
| Nordea Bank AB | 213,700 | 2,241,476 |
| Switzerland — 5.7% | ||
| Alcon, Inc. | 17,000 | 2,200,990 |
| Nestle SA Registered Shares | 91,300 | 3,801,100 |
| Novartis AG Registered Shares | 74,400 | 3,456,112 |
| Roche Holding AG | 26,000 | 4,141,169 |
| Swiss Reinsurance Co. Registered Shares | 34,900 | 1,613,072 |
| Transocean Ltd. (a) | 24,200 | 1,835,328 |
| Tyco International Ltd. | 108,700 | 3,444,703 |
| UBS AG | 37,900 | 697,717 |
| Zurich Financial Services AG | 5,700 | 1,256,180 |
| 22,446,371 | ||
| Taiwan — 1.4% | ||
| ASUSTEK Computer, Inc. | 1,475,988 | 2,344,633 |
| Chang Hwa Commercial Bank | 1,611,900 | 672,322 |
| HTC Corp. | 6,410 | 64,339 |
| Mega Financial Holding Co. Ltd. | 2,297,700 | 1,142,383 |
| Siliconware Precision Industries Co., Ltd. — ADR | 192,300 | 1,211,490 |
| 5,435,167 | ||
| Thailand — 0.2% | ||
| Bangkok Bank Pcl Foreign Shares | 252,700 | 821,103 |
| United Kingdom — 8.2% | ||
| Aviva Plc | 250,300 | 1,639,125 |
| BG Group Plc | 135,400 | 2,221,524 |
| Barclays Plc | 257,900 | 1,578,665 |
| GlaxoSmithKline Plc | 196,500 | 3,837,208 |
| HSBC Holdings Plc | 227,683 | 2,460,914 |
| Imperial Tobacco Group Plc | 97,400 | 2,731,902 |
| Kazakhmys Plc | 149,900 | 2,378,931 |
| Legal & General Group Plc | 1,028,500 | 1,279,136 |
| Persimmon Plc | 133,000 | 1,057,595 |
| Prudential Plc | 199,700 | 1,727,448 |
| Standard Chartered Plc | 53,700 | 1,212,090 |
| Tesco Plc | 451,300 | 2,747,167 |
| Unilever Plc | 78,400 | 2,142,352 |
| Vodafone Group Plc — ADR | 81,400 | 1,768,008 |
| WPP Plc | 209,600 | 1,751,793 |
| Xstrata Plc | 149,100 | 1,978,162 |
| 32,512,020 | ||
| United States — 43.9% | ||
| AGCO Corp. (a) | 93,500 | 2,920,940 |
| AK Steel Holding Corp. | 96,200 | 1,954,784 |
| Abbott Laboratories | 19,700 | 891,031 |
| Alcoa, Inc. | 171,100 | 2,061,755 |
| Alpha Natural Resources, Inc. (a) | 66,200 | 2,138,922 |
| American Electric Power Co., Inc. | 62,600 | 1,967,518 |
| Ameriprise Financial, Inc. | 66,500 | 1,996,995 |
| Amgen, Inc. (a) | 16,200 | 967,788 |
| Anadarko Petroleum Corp. | 35,800 | 1,892,746 |
| Analog Devices, Inc. | 71,300 | 2,014,225 |
| Common Stocks | Shares | Value |
| United States (continued) | ||
| Apache Corp. | 23,400 | $ 1,987,830 |
| Apple, Inc. (a) | 14,300 | 2,405,403 |
| Applied Materials, Inc. | 149,300 | 1,967,774 |
| AvalonBay Communities, Inc. | 17,731 | 1,142,408 |
| Boston Properties, Inc. | 13,500 | 817,830 |
| Bristol-Myers Squibb Co. (b) | 110,300 | 2,440,939 |
| Bunge Ltd. | 29,800 | 1,996,898 |
| CBS Corp., Class B | 185,200 | 1,916,820 |
| CSX Corp. | 60,600 | 2,575,500 |
| Celanese Corp., Series A | 72,900 | 1,856,763 |
| The Charles Schwab Corp. | 88,300 | 1,594,698 |
| Chevron Corp. | 49,800 | 3,483,012 |
| Cisco Systems, Inc. (a) | 122,900 | 2,654,640 |
| Citigroup, Inc. | 368,700 | 1,843,500 |
| Dominion Resources, Inc. | 51,800 | 1,713,544 |
| The Dow Chemical Co. | 88,900 | 1,892,681 |
| eBay, Inc. (a) | 176,800 | 3,914,352 |
| EOG Resources, Inc. | 19,000 | 1,368,000 |
| Energizer Holdings, Inc. (a) | 28,400 | 1,858,212 |
| Federal Realty Investment Trust | 19,200 | 1,197,504 |
| The Goldman Sachs Group, Inc. | 6,900 | 1,141,674 |
| Google, Inc., Class A (a) | 5,200 | 2,400,684 |
| Halliburton Co. | 83,100 | 1,970,301 |
| Hartford Financial Services Group, Inc. | 107,200 | 2,542,784 |
| Helmerich & Payne, Inc. | 47,300 | 1,582,658 |
| Henry Schein, Inc. (a) | 12,100 | 641,058 |
| Hewlett-Packard Co. | 73,400 | 3,294,926 |
| Hudson City Bancorp, Inc. | 84,300 | 1,106,016 |
| Intel Corp. | 120,400 | 2,446,528 |
| International Business Machines Corp. | 24,000 | 2,833,200 |
| The J.M. Smucker Co. | 29,800 | 1,557,646 |
| JPMorgan Chase & Co. | 30,300 | 1,316,838 |
| Johnson & Johnson | 29,400 | 1,776,936 |
| KLA-Tencor Corp. | 77,200 | 2,408,640 |
| Kohl’s Corp. (a) | 56,700 | 2,925,153 |
| LaSalle Hotel Properties | 75,200 | 1,244,560 |
| Las Vegas Sands Corp. (a)(b) | 71,800 | 1,023,868 |
| Lincoln National Corp. | 98,400 | 2,483,616 |
| Mack-Cali Realty Corp. | 36,000 | 1,153,080 |
| Macy’s, Inc. | 95,700 | 1,485,264 |
| Manpower, Inc. | 66,800 | 3,453,560 |
| Marathon Oil Corp. | 75,900 | 2,343,033 |
| Medco Health Solutions, Inc. (a) | 29,900 | 1,651,078 |
| Medtronic, Inc. | 39,300 | 1,505,190 |
| MetLife, Inc. | 32,700 | 1,234,752 |
| Microsoft Corp. | 115,000 | 2,834,750 |
| Morgan Stanley (b) | 33,700 | 975,952 |
| Newfield Exploration Co. (a) | 60,100 | 2,325,269 |
| Nike, Inc., Class B | 20,200 | 1,118,878 |
| Oracle Corp. | 85,700 | 1,874,259 |
| PPG Industries, Inc. | 52,200 | 2,891,880 |
| People’s United Financial, Inc. | 64,200 | 1,031,052 |
| PepsiCo, Inc. | 47,500 | 2,691,825 |
| Pfizer, Inc. | 232,300 | 3,879,410 |
| Piper Jaffray Cos. (a) | 21,800 | 1,104,824 |
| Prudential Financial, Inc. | 31,300 | 1,583,154 |
| Public Service Enterprise Group, Inc. | 54,800 | 1,735,516 |
| QUALCOMM, Inc. | 40,000 | 1,856,800 |
| Ralcorp Holdings, Inc. (a) | 31,300 | 1,963,449 |
| Robert Half International, Inc. | 58,300 | 1,532,707 |
| SPX Corp. | 43,500 | 2,422,080 |
| State Street Corp. | 25,000 | 1,312,000 |
| Steel Dynamics, Inc. | 160,500 | 2,656,275 |
| SunTrust Banks, Inc. | 70,200 | 1,640,574 |
| T. Rowe Price Group, Inc. | 32,000 | 1,450,240 |
| Texas Instruments, Inc. | 103,400 | 2,542,606 |
| The Travelers Cos., Inc. | 45,600 | 2,299,152 |
| TreeHouse Foods, Inc. (a) | 23,400 | 866,970 |
See Notes to Financial Statements.
14 ANNUAL REPORT AUGUST 31, 2009
Schedule of Investments (continued)
BlackRock Global Growth Fund, Inc.
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value | |
| United States (concluded) | |||
| U.S. Bancorp | 38,400 | $ 868,608 | |
| Union Pacific Corp. | 38,600 | 2,308,666 | |
| Urban Outfitters, Inc. (b) | 74,400 | 2,115,192 | |
| Valero Energy Corp. | 85,100 | 1,594,774 | |
| Virgin Media, Inc. | 130,800 | 1,495,044 | |
| Walt Disney Co. | 88,900 | 2,314,956 | |
| WellPoint, Inc. (b) | 18,800 | 993,580 | |
| Wells Fargo & Co. | 69,000 | 1,898,880 | |
| Westinghouse Air Brake Technologies Corp. | 54,100 | 2,026,045 | |
| Wyeth | 39,100 | 1,870,935 | |
| XTO Energy, Inc. | 55,500 | 2,142,300 | |
| Yum! Brands, Inc. | 67,600 | 2,315,300 | |
| 173,491,957 | |||
| Total Long-Term Investments | |||
| (Cost — $330,488,757) — 97.4% | 384,775,568 | ||
| Short-Term Securities | |||
| Money Market Funds — 4.3% | |||
| BlackRock Liquidity Funds, TempFund, | |||
| 0.22% (c)(d) | 12,373,186 | 12,373,186 | |
| Beneficial | |||
| Interest | |||
| (000) | |||
| BlackRock Liquidity Series, LLC | |||
| Money Market Series, 0.37% (c)(d)(e) | $ 4,620 | 4,619,600 | |
| Total Short-Term Securities | |||
| (Cost — $16,992,786) — 4.3% | 16,992,786 | ||
| Total Investments (Cost — $347,481,543*) — 101.7% | 401,768,354 | ||
| Liabilities in Excess of Other Assets — (1.7)% | (6,815,234) | ||
| Net Assets — 100.0% | $ 394,953,120 | ||
| * The cost and unrealized appreciation (depreciation) of investments as of August 31, | |||
| 2009, as computed for federal income tax purposes, were as follows: | |||
| Aggregate cost | $ 348,508,712 | ||
| Gross unrealized appreciation | $ 61,772,283 | ||
| Gross unrealized depreciation | (8,512,641) | ||
| Net unrealized appreciation | $ 53,259,642 | ||
| (a) Non-income producing security. | |||
| (b) Security, or a portion of security, is on loan. | |||
| (c) Investments in companies considered to be an affiliate of the Fund, for purposes of | |||
| Section 2(a)(3) of the Investment Company Act of 1940, were as follows: | |||
| Net | |||
| Affiliate | Activity | Income | |
| BlackRock Liquidity Funds, TempFund | 12,373,186 | $ 6,573 | |
| BlackRock Liquidity Series, LLC | |||
| Cash Sweep Series | $(17,662,404) | $142,439 | |
| BlackRock Liquidity Series, LLC | |||
| Money Market Series | $(24,132,950) | $ 38,308 | |
| (d) Represents the current yield as of report date. | |||
| (e) Security was purchased with the cash proceeds from securities loaned. | |||
| • | Foreign currency exchange contracts as of August 31, 2009 were as follows: | |||||||
| Unrealized | ||||||||
| Currency | Currency | Settlement Appreciation | ||||||
| Purchased | Sold | Counterparty | Date (Depreciation) | |||||
| CHF | 1,463,000 | USD | 1,370,887 | Citibank, NA | 9/01/09 $ | 10,744 | ||
| EUR | 603,000 | USD | 860,301 | Citibank, NA | 9/01/09 | 4,168 | ||
| GBP | 64,500 | USD | 104,542 | Citibank, NA | 9/01/09 | 461 | ||
| USD | 15,730 | MYR | 55,622 | State Street Bank | 9/01/09 | (64) | ||
| EUR | 754,000 | USD | 1,080,934 | Citibank, NA | 9/02/09 | 12 | ||
| GBP | 778,000 | USD | 1,266,584 | Citibank, NA | 9/02/09 | (52) | ||
| EUR | 342,000 | USD | 490,430 | Citibank, NA | 9/03/09 | (132) | ||
| GBP | 391,000 | USD | 636,702 | UBS AG | 9/03/09 | (183) | ||
| JPY 171,575,000 | USD | 1,815,889 | Citibank, NA | 9/16/09 | 28,214 | |||
| USD | 7,003,453 | EUR | 4,894,000 | Citibank, NA | 9/16/09 | (12,773) | ||
| AUD | 11,094,000 | USD | 9,135,021 | Citibank, NA | 10/28/09 | 197,799 | ||
| CAD | 647,000 | USD | 602,215 | Citibank, NA | 10/28/09 | (11,158) | ||
| CAD | 3,135,000 | USD | 2,873,106 | Deutsche Bank AG | 10/28/09 | (9,179) | ||
| EUR | 12,810,000 | USD 18,203,138 | Barclays Bank Plc | 10/28/09 | 161,681 | |||
| GBP | 1,838,000 | USD | 3,030,379 | Deutsche Bank AG | 10/28/09 | (38,449) | ||
| HKD 41,806,000 | USD | 5,396,481 | Barclays Bank Plc | 10/28/09 | 49 | |||
| JPY 844,726,000 | USD | 8,967,367 | Citibank, NA | 10/28/09 | 114,540 | |||
| NOK 14,441,000 | USD | 2,393,758 | Citibank, NA | 10/28/09 | 1,922 | |||
| SEK | 20,807,000 | USD | 2,910,009 | Deutsche Bank AG | 10/28/09 | 13,690 | ||
| USD | 842,471 | CAD | 917,000 | Deutsche Bank AG | 10/28/09 | 4,761 | ||
| USD | 1,701,311 | CHF | 1,811,000 | Citibank, NA | 10/28/09 | (9,871) | ||
| USD | 1,371,569 | CHF | 1,463,000 | Citibank, NA | 10/28/09 | (10,795) | ||
| USD | 246,555 | DKK | 1,293,000 | Citibank, NA | 10/28/09 | (2,182) | ||
| USD | 1,524,716 | EUR | 1,067,000 | Deutsche Bank AG | 10/28/09 | (4,969) | ||
| USD | 860,281 | EUR | 603,000 | Citibank, NA | 10/28/09 | (4,199) | ||
| USD | 1,266,481 | GBP | 778,000 | Citibank, NA | 10/28/09 | 39 | ||
| USD | 2,693,634 | SGD | 3,896,000 | Citibank, NA | 10/28/09 | (8,634) | ||
| Total | $ 425,440 | |||||||
| • | Portfolio and Currency Abbreviations: | |||||||
| ADR | American Depositary | DKK Danish Krone | MYR Malaysian Ringgit | |||||
| Receipt | EUR Euro | NOK Norwegian Krone | ||||||
| AUD Australian Dollar | GBP British Pound | SEK Swedish Krona | ||||||
| CAD Canadian DollarD | HKD Hong Kong Dollar | SGD Singapore Dollar | ||||||
| CHF Swiss Franc | JPY Japanese Yen | USD US Dollar | ||||||
| • | Effective September 1, 2008, the Fund adopted Financial Accounting Standards | |||||||
| Board Statement of Financial Accounting Standards No. 157, “Fair Value | ||||||||
| Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, estab- | ||||||||
| lishes a framework for measuring fair values and requires additional disclosures | ||||||||
| about the use of fair value measurements. Various inputs are used in determining | ||||||||
| the fair value of investments, which are as follows: | ||||||||
| • Level 1 — price quotations in active markets/exchanges for identical securities | ||||||||
| • 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 identi- | ||||||||
| cal 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 | ||||||||
| Fund’s own assumptions used in determining the fair value of investments) | ||||||||
| The inputs or methodology used for valuing securities are not necessarily an indica- | ||||||||
| tion of the risk associated with investing in those securities. For information about | ||||||||
| the Fund’s policy regarding valuation of investments and other significant accounting | ||||||||
| policies, please refer to Note 1 of the Notes to Financial Statements. | ||||||||
See Notes to Financial Statements.
ANNUAL REPORT AUGUST 31, 2009 15
Schedule of Investments (concluded) BlackRock Global Growth Fund, Inc.
| The following table summarizes the inputs used as of August 31, 2009 in determin- | |
| ing the fair valuation of the Fund’s investments: | |
| Investments in | |
| Valuation Inputs | Securities |
| Assets | |
| Level 1 | |
| Long-Term Investments: | |
| Common Stocks | |
| Bermuda | $ 2,494,150 |
| Brazil | 3,088,067 |
| Canada | 13,285,997 |
| Cayman Islands | 2,299,456 |
| China | 2,604,792 |
| France | 1,360,625 |
| Ireland | 957,594 |
| Israel | 1,663,450 |
| Luxembourg | 1,333,584 |
| Mexico | 2,022,728 |
| Russia | 4,002,196 |
| Switzerland | 7,481,021 |
| Taiwan | 1,211,490 |
| United Kingdom | 1,768,008 |
| United States | 173,491,957 |
| Short-Term Securities | 12,373,186 |
| Total Level 1 | 231,438,301 |
| Level 2 | |
| Long-Term Investments: | |
| Common Stocks | |
| Australia | 2,589,189 |
| Belgium | 2,282,907 |
| China | 1,233,512 |
| Denmark | 1,049,357 |
| Finland | 1,984,641 |
| France | 15,011,525 |
| Germany | 11,454,592 |
| Hong Kong | 7,050,276 |
| India | 3,868,809 |
| Indonesia | 1,273,101 |
| Italy | 2,571,767 |
| Japan | 26,436,268 |
| Kazakhstan | 1,993,889 |
| Luxembourg | 1,977,774 |
| Malaysia | 1,066,341 |
| Netherlands | 3,434,257 |
| New Zealand | 1,997,801 |
| Norway | 2,041,359 |
| Singapore | 7,643,839 |
| South Africa | 2,866,375 |
| South Korea | 5,167,055 |
| Spain | 7,720,201 |
| Sweden | 2,241,476 |
| Switzerland | 14,965,350 |
| Taiwan | 4,223,677 |
| Thailand | 821,103 |
| United Kingdom | 30,744,012 |
| Short-Term Securities | 4,619,600 |
| Total Level 2 | 170,330,053 |
| Total | $401,768,354 |
| Other Financial | ||
| Valuation Inputs | Instruments* | |
| Assets | Liabilities | |
| Level 1 | — | — |
| Level 2 | $ 538,080 | $ (112,640) |
| Level 3 | — | — |
| Total | $ 538,080 | $ (112,640) |
| * Other financial instruments are foreign currency exchange contracts, which are | ||
| shown at the unrealized appreciation/depreciation on the instrument. | ||
See Notes to Financial Statements.
16 ANNUAL REPORT AUGUST 31, 2009
| Statements of Assets and Liabilities | |||
| BlackRock | |||
| Fundamental | BlackRock | ||
| Growth | Global | BlackRock | |
| Principal | Growth | Focus Growth | |
| August 31, 2009 | Protected Fund | Fund, Inc. | Fund, Inc. |
| Assets | |||
| Investments at value — unaffiliated1,2 | $ 40,543,040 | $ 384,775,568 | — |
| Investment at value — Master Focus Growth LLC, (the “Master LLC”) (cost — $44,954,990) | — | — | $ 49,782,469 |
| Investments at value — affiliated3 | — | 16,992,786 | — |
| Unrealized appreciation on foreign currency exchange contracts | — | 538,080 | — |
| Foreign currency at value4 | — | 2,453,477 | — |
| Cash | — | 546 | — |
| Capital shares sold receivable | — | 250,175 | 54,018 |
| Withdrawals receivable from the Master LLC | — | — | 78,376 |
| Investments sold receivable | 28,226 | 4,359,436 | — |
| Dividends receivable | 9,553 | 969,065 | — |
| Securities lending receivable — affiliated | — | 4,858 | — |
| Prepaid expenses | 1,495 | 119,587 | 21,194 |
| Other assets | — | 186,061 | — |
| Total assets | 40,582,314 | 410,649,639 | 49,936,057 |
| Liabilities | |||
| Bank overdraft | 21,246 | — | — |
| Collateral on securities loaned, at value | — | 4,619,600 | — |
| Unrealized depreciation on foreign currency exchange contracts | — | 112,640 | — |
| Investments purchased payable | 24,292 | 9,740,141 | — |
| Capital shares redeemed payable | 144,669 | 600,895 | 132,394 |
| Distribution fees payable | 30,529 | 117,906 | 19,444 |
| Financial warranty fee payable | 28,218 | — | — |
| Investment advisory fees payable | 10,865 | 249,657 | — |
| Administration fees payable | — | — | 8,115 |
| Officer’s and Directors’ fees payable | 3,383 | 3,476 | 12 |
| Other liabilities | 2,640 | 1,471 | — |
| Other affiliates payable | 1,449 | 23,170 | 8,188 |
| Other accrued expenses payable | 58,631 | 227,563 | 65,730 |
| Total liabilities | 325,922 | 15,696,519 | 233,883 |
| Net Assets | $ 40,256,392 | $ 394,953,120 | $ 49,702,174 |
| Net Assets Consist of | |||
| Paid-in capital | $ 42,143,387 | $ 819,597,985 | $ 324,898,550 |
| Undistributed (accumulated) net investment income (loss) | — | 6,161,860 | — |
| Accumulated net realized loss | (2,873,821) | (485,549,295) | — |
| Net unrealized appreciation/depreciation | 986,826 | 54,742,570 | — |
| Accumulated net realized loss allocated from the Master LLC | — | — | (280,023,855) |
| Net unrealized appreciation/depreciation allocated from the Master LLC | — | — | 4,827,479 |
| Net Assets | $ 40,256,392 | $ 394,953,120 | $ 49,702,174 |
| 1 Investments at cost — unaffiliated | $ 39,556,846 | $ 330,488,757 | — |
| 2 Securities loaned — at value | — | $ 4,369,336 | — |
| 3 Investments at cost — affiliated | — | $ 16,992,786 | — |
| 4 Foreign currency at cost | — | $ 2,421,727 | — |
See Notes to Financial Statements.
ANNUAL REPORT AUGUST 31, 2009 17
| Statements of Assets and Liabilities (concluded) | |||
| BlackRock | |||
| Fundamental | BlackRock | ||
| Growth | Global | BlackRock | |
| Principal | Growth | Focus Growth | |
| August 31, 2009 | Protected Fund | Fund, Inc. | Fund, Inc. |
| Net Asset Value | |||
| Institutional | |||
| Net Assets | $ 1,977,958 | $ 76,120,791 | $ 9,672,584 |
| Shares outstanding5 | 237,749 | 5,810,650 | 4,938,786 |
| Par value per share | — | $ 0.10 | $ 0.10 |
| Net asset value | $ 8.32 | $ 13.10 | $ 1.96 |
| Investor A | |||
| Net Assets | $ 3,978,915 | $ 229,381,687 | $ 23,041,779 |
| Shares outstanding6 | 482,302 | 17,737,049 | 12,114,247 |
| Par value per share | — | $ 0.10 | $ 0.10 |
| Net asset value | $ 8.25 | $ 12.93 | $ 1.90 |
| Investor B | |||
| Net Assets | $ 18,284,741 | $ 10,946,251 | $ 3,306,884 |
| Shares outstanding7 | 2,298,002 | 893,985 | 1,880,360 |
| Par value per share | — | $ 0.10 | $ 0.10 |
| Net asset value | $ 7.96 | $ 12.24 | $ 1.76 |
| Investor C | |||
| Net Assets | $ 16,014,778 | $ 63,637,011 | $ 13,680,927 |
| Shares outstanding8 | 2,007,056 | 5,192,345 | 7,806,492 |
| Par value per share | — | $ 0.10 | $ 0.10 |
| Net asset value | $ 7.98 | $ 12.26 | $ 1.75 |
| Class R | |||
| Net Assets | — | $ 14,867,380 | — |
| Shares outstanding9 | — | 1,186,631 | — |
| Par value per share | — | $ 0.10 | — |
| Net asset value | — | $ 12.53 | — |
| 5 Authorized shares | unlimited | 100 million | 100 million |
| 6 Authorized shares | unlimited | 100 million | 100 million |
| 7 Authorized shares | unlimited | 300 million | 300 million |
| 8 Authorized shares | unlimited | 100 million | 300 million |
| 9 Authorized shares | — | 300 million | — |
See Notes to Financial Statements.
18 ANNUAL REPORT AUGUST 31, 2009
| Statements of Operations | |||
| BlackRock | |||
| Fundamental | BlackRock | ||
| Growth | Global | BlackRock | |
| Principal | Growth | Focus Growth | |
| Year Ended August 31, 2009 | Protected Fund | Fund, Inc. | Fund, Inc. |
| Investment Income | |||
| Dividends | $ 71,851 | $ 8,715,437 | — |
| Foreign taxes withheld | — | (529,718) | — |
| Interest | 1,206,069 | — | — |
| Income — affiliated | 666 | 149,209 | — |
| Securities lending — affiliated | — | 38,308 | — |
| Net investment income allocated from the Master LLC: | |||
| Dividends | — | — | $ 423,262 |
| Income — affiliated | — | — | 10,410 |
| Foreign taxes withheld | — | — | (3,402) |
| Expenses | — | — | (363,815) |
| Total income | 1,278,586 | 8,373,236 | 66,455 |
| Expenses | |||
| Financial warranty | 391,691 | — | — |
| Investment advisory | 313,889 | 3,012,837 | — |
| Service — Investor A | 9,042 | 515,800 | 47,225 |
| Service and distribution — Investor B | 237,755 | 137,880 | 47,665 |
| Service and distribution — Investor C | 187,028 | 584,935 | 125,698 |
| Service and distribution — Class R | — | 59,310 | — |
| Professional | 91,372 | 108,242 | 48,060 |
| Accounting services | 61,708 | 178,016 | — |
| Transfer agent — Institutional | 3,064 | 171,768 | 30,870 |
| Transfer agent — Investor A | 4,325 | 430,163 | 153,320 |
| Transfer agent — Investor B | 32,659 | 53,947 | 30,442 |
| Transfer agent — Investor C | 26,981 | 164,339 | 105,501 |
| Transfer agent — Class R | — | 50,044 | — |
| Printing | 25,077 | 118,625 | 52,105 |
| Custodian | 23,644 | 119,166 | — |
| Officer and Directors | 17,965 | 30,009 | 75 |
| Miscellaneous | 20,125 | 66,171 | 15,079 |
| Administration | — | — | 112,557 |
| Registration | — | 80,693 | 53,235 |
| Total expenses | 1,446,325 | 5,881,945 | 821,832 |
| Less fees waived by advisor — class specific | (53,120) | — | (102,204) |
| Less fees waived by advisor | (2) | (1,404) | — |
| Less fees paid indirectly | — | (223) | — |
| Total expenses after fees waived and paid indirectly | 1,393,203 | 5,880,318 | 719,628 |
| Net investment income (loss) | (114,617) | 2,492,918 | (653,173) |
| Realized and Unrealized Gain (Loss) | |||
| Net realized gain (loss) from: | |||
| Investments | (2,180,296) | (188,546,214)1 | — |
| Financial futures contracts | — | (1,758,625) | — |
| Foreign currency | 857 | 2,742,690 | — |
| Options written | — | 175,072 | — |
| Allocated from the Master LLC | — | — | (13,326,054) |
| (2,179,439) | (187,387,077) | (13,326,054) | |
| Net change in unrealized appreciation/depreciation on: | |||
| Investments | (4,899,173) | 41,229,507 | — |
| Foreign currency | 36 | 373,914 | — |
| Allocated from the Master LLC | — | — | 2,301,685 |
| (4,899,137) | 41,603,421 | 2,301,685 | |
| Total realized and unrealized loss | (7,078,576) | (145,783,656) | (11,024,369) |
| Net Decrease in Net Assets Resulting from Operations | $ (7,193,193) | $ (143,290,738) | $ (11,677,542) |
| 1 Net of $40,846 foreign capital gain tax. |
See Notes to Financial Statements.
ANNUAL REPORT AUGUST 31, 2009 19
| Statements of Changes in Net Assets | ||||||
| BlackRock | ||||||
| Fundamental Growth | BlackRock | |||||
| Principal Protected Fund | Global Growth Fund, Inc. | |||||
| Year Ended | Year Ended | |||||
| August 31, | August 31, | |||||
| Increase (Decrease) in Net Assets: | 2009 | 2008 | 2009 | 2008 | ||
| Operations | ||||||
| Net investment income (loss) | $ (114,617) | $ (637,295) | $ 2,492,918 | $ 4,403,236 | ||
| Net realized gain (loss) | (2,179,439) | 2,713,498 | (187,387,077) | 70,999,098 | ||
| Net change in unrealized appreciation/depreciation | (4,899,137) | (3,481,949) | 41,603,421 | (119,949,322) | ||
| Net decrease in net assets resulting from operations | (7,193,193) | (1,405,746) | (143,290,738) | (44,546,988) | ||
| Dividends and Distributions to Shareholders From | ||||||
| Net investment income: | ||||||
| Institutional | — | — | (1,313,821) | (2,410,109) | ||
| Investor A | — | — | (1,299,919) | (1,607,916) | ||
| Class R | — | — | (61,432) | (23,918) | ||
| Net realized gain: | ||||||
| Institutional | (93,261) | (272,556) | — | — | ||
| Investor A | (120,050) | (316,319) | — | — | ||
| Investor B | (1,060,767) | (2,913,518) | — | — | ||
| Investor C | (794,109) | (2,084,933) | — | — | ||
| Decrease in net assets resulting from dividends and distributions to shareholders | (2,068,187) | (5,587,326) | (2,675,172) | (4,041,943) | ||
| Capital Share Transactions | ||||||
| Net increase (decrease) in net assets derived from capital share transactions | (13,069,180) | (12,817,870) | (128,045,971) | 21,865,740 | ||
| Redemption Fees | ||||||
| Redemption fees | — | — | 16,810 | 104,836 | ||
| Net Assets | ||||||
| Total decrease in net assets | (22,330,560) | (19,810,942) | (273,995,071) | (26,618,355) | ||
| Beginning of year | 62,586,952 | 82,397,894 | 668,948,191 | 695,566,546 | ||
| End of year | $ 40,256,392 | $ 62,586,952 | $ 394,953,120 | $ 668,948,191 | ||
| Undistributed (accumulated) net investment income (loss) | — | $ (1,898) | $ 6,161,860 | $ 3,613,646 | ||
| BlackRock Focus Growth Fund, Inc. | ||||||
| Period | ||||||
| December 1, | ||||||
| Year Ended | 2007 to | Year Ended | ||||
| August 31, | August 31, | November 30, | ||||
| Increase (Decrease) in Net Assets: | 2009 | 2008 | 2007 | |||
| Operations | ||||||
| Net investment loss | $ (653,173) | $ (901,978) | $ (1,423,643) | |||
| Net realized gain (loss) | (13,326,054) | 4,024,628 | 11,849,641 | |||
| Net change in unrealized appreciation/depreciation | 2,301,685 | (8,896,208) | 5,330,432 | |||
| Net increase (decrease) in net assets resulting from operations | (11,677,542) | (5,773,558) | 15,756,430 | |||
| Capital Share Transactions | ||||||
| Net decrease in net assets derived from capital share transactions | (3,704,691) | (4,114,421) | (17,624,365) | |||
| Net Assets | ||||||
| Total decrease in net assets | (15,382,233) | (9,887,979) | (1,867,935) | |||
| Beginning of period | 65,084,407 | 74,972,386 | 76,840,321 | |||
| End of period | $ 49,702,174 | $ 65,084,407 | $ 74,972,386 | |||
| Undistributed net investment income | — | $ 46,323 | — | |||
| See Notes to Financial Statements. | ||||||
| 20 | ANNUAL REPORT | AUGUST 31, 2009 | ||||
| Financial Highlights | BlackRock Fundamental Growth Principal Protected Fund | |||||
| Year Ended August 31, | ||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Institutional | ||||||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 9.73 | $ 10.59 | $ 10.37 | $ 10.57 | $ 10.52 | |
| Net investment income1 | 0.06 | 0.01 | 0.03 | 0.04 | 0.10 | |
| Net realized and unrealized gain (loss) | (1.13) | (0.12) | 0.81 | 0.21 | 0.63 | |
| Net increase (decrease) from investment operations | (1.07) | (0.11) | 0.84 | 0.25 | 0.73 | |
| Dividends and distributions from: | ||||||
| Net investment income | — | — | — | (0.00)2 | — | |
| Net realized gain | (0.34) | (0.75) | (0.62) | (0.45) | (0.68) | |
| Total dividends and distributions | (0.34) | (0.75) | (0.62) | (0.45) | (0.68) | |
| Net asset value, end of year | $ 8.32 | $ 9.73 | $ 10.59 | $ 10.37 | $ 10.57 | |
| Total Investment Return3 | ||||||
| Based on net asset value | (10.94)% | (1.63)% | 8.44% | 2.32% | 7.03% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 2.09% | 1.89% | 1.83% | 1.74% | 1.73% | |
| Total expenses after fees waived | 1.98% | 1.89% | 1.83% | 1.74% | 1.73% | |
| Net investment income | 0.67% | 0.05% | 0.29% | 0.39% | 0.99% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 1,978 | $ 2,833 | $ 4,040 | $ 5,333 | $ 7,306 | |
| Portfolio turnover | 22% | 99% | 81% | 46% | 58% | |
| Investor A | ||||||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 9.67 | $ 10.56 | $ 10.36 | $ 10.57 | $ 10.49 | |
| Net investment income (loss)1 | 0.04 | (0.02) | 0.004 | 0.01 | 0.08 | |
| Net realized and unrealized gain (loss) | (1.12) | (0.12) | 0.82 | 0.20 | 0.63 | |
| Net increase (decrease) from investment operations | (1.08) | (0.14) | 0.82 | 0.21 | 0.71 | |
| Dividends and distributions from: | ||||||
| Net investment income | — | — | — | (0.00)2 | — | |
| Net realized gain | (0.34) | (0.75) | (0.62) | (0.42) | (0.63) | |
| Total dividends and distributions | (0.34) | (0.75) | (0.62) | (0.42) | (0.63) | |
| Net asset value, end of year | $ 8.25 | $ 9.67 | $ 10.56 | $ 10.36 | $ 10.57 | |
| Total Investment Return3 | ||||||
| Based on net asset value | (11.12)% | (1.94)% | 8.24% | 1.99% | 6.82% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 2.35% | 2.14% | 2.08% | 1.99% | 1.98% | |
| Total expenses after fees waived | 2.23% | 2.13% | 2.08% | 1.99% | 1.98% | |
| Net investment income (loss) | 0.45% | (0.18)% | 0.03% | 0.14% | 0.75% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 3,979 | $ 3,717 | $ 4,846 | $ 3,265 | $ 4,955 | |
| Portfolio turnover | 22% | 99% | 81% | 46% | 58% | |
| 1 Based on average shares outstanding. | ||||||
| 2 Amount is less than ($0.01) per share. | ||||||
| 3 Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. | ||||||
| 4 Amount is less than $0.01 per share. | ||||||
| See Notes to Financial Statements. | ||||||
| ANNUAL REPORT | AUGUST 31, 2009 | 21 | ||||
| Financial Highlights (concluded) | BlackRock Fundamental Growth Principal Protected Fund | ||||||
| Year Ended August 31, | |||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | |||
| Investor B | |||||||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of year | $ 9.41 | $ 10.37 | $ 10.26 | $ 10.50 | $ 10.39 | ||
| Net investment loss1 | (0.03) | (0.10) | (0.07) | (0.07) | (0.01) | ||
| Net realized and unrealized gain (loss) | (1.08) | (0.11) | 0.80 | 0.19 | 0.63 | ||
| Net increase (decrease) from investment operations | (1.11) | (0.21) | 0.73 | 0.12 | 0.62 | ||
| Dividends and distributions from: | |||||||
| Net investment income | — | — | — | (0.00)2 | — | ||
| Net realized gain | (0.34) | (0.75) | (0.62) | (0.36) | (0.51) | ||
| Total dividends and distributions | (0.34) | (0.75) | (0.62) | (0.36) | (0.51) | ||
| Net asset value, end of year | $ 7.96 | $ 9.41 | $ 10.37 | $ 10.26 | $ 10.50 | ||
| Total Investment Return3 | |||||||
| Based on net asset value | (11.76)% | (2.68)% | 7.41% | 1.16% | 6.04% | ||
| Ratios to Average Net Assets | |||||||
| Total expenses | 3.09% | 2.90% | 2.84% | 2.76% | 2.75% | ||
| Total expenses after fees waived | 2.99% | 2.90% | 2.84% | 2.76% | 2.75% | ||
| Net investment loss | (0.35)% | (0.95)% | (0.72)% | (0.63)% | (0.06)% | ||
| Supplemental Data | |||||||
| Net assets, end of year (000) | $ 18,285 | $ 32,048 | $ 42,614 | $ 60,613 | $ 79,793 | ||
| Portfolio turnover | 22% | 99% | 81% | 46% | 58% | ||
| Investor C | |||||||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of year | $ 9.44 | $ 10.39 | $ 10.29 | $ 10.52 | $ 10.39 | ||
| Net investment loss1 | (0.03) | (0.10) | (0.07) | (0.07) | (0.01) | ||
| Net realized and unrealized gain (loss) | (1.09) | (0.10) | 0.79 | 0.20 | 0.63 | ||
| Net increase (decrease) from investment operations | (1.12) | (0.20) | 0.72 | 0.13 | 0.62 | ||
| Dividends and distributions from: | |||||||
| Net investment income | — | — | — | (0.00)2 | — | ||
| Net realized gain | (0.34) | (0.75) | (0.62) | (0.36) | (0.49) | ||
| Total dividends and distributions | (0.34) | (0.75) | (0.62) | (0.36) | (0.49) | ||
| Net asset value, end of year | $ 7.98 | $ 9.44 | $ 10.39 | $ 10.29 | $ 10.52 | ||
| Total Investment Return3 | |||||||
| Based on net asset value | (11.83)% | (2.58)% | 7.28% | 1.23% | 6.05% | ||
| Ratios to Average Net Assets | |||||||
| Total expenses | 3.11% | 2.90% | 2.84% | 2.76% | 2.75% | ||
| Total expenses after fees waived | 2.99% | 2.90% | 2.84% | 2.76% | 2.75% | ||
| Net investment loss | (0.34)% | (0.95)% | (0.72)% | (0.63)% | (0.06)% | ||
| Supplemental Data | |||||||
| Net assets, end of year (000) | $ 16,015 | $ 23,988 | $ 30,898 | $ 39,561 | $ 53,459 | ||
| Portfolio turnover | 22% | 99% | 81% | 46% | 58% | ||
| 1 Based on average shares outstanding. | |||||||
| 2 Amount is less than ($0.01) per share. | |||||||
| 3 Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. | |||||||
| See Notes to Financial Statements. | |||||||
| 22 | ANNUAL REPORT | AUGUST 31, 2009 | |||||
| Financial Highlights | BlackRock Global Growth Fund, Inc. | |||||
| Year Ended August 31, | ||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Institutional | ||||||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 15.85 | $ 16.66 | $ 12.71 | $ 10.72 | $ 8.56 | |
| Net investment income1 | 0.10 | 0.16 | 0.16 | 0.09 | 0.16 | |
| Net realized and unrealized gain (loss)2 | (2.74) | (0.84) | 3.80 | 2.07 | 2.03 | |
| Net increase (decrease) from investment operations | (2.64) | (0.68) | 3.96 | 2.16 | 2.19 | |
| Dividends from net investment income | (0.11) | (0.13) | (0.01) | (0.17) | (0.03) | |
| Net asset value, end of year | $ 13.10 | $ 15.85 | $ 16.66 | $ 12.71 | $ 10.72 | |
| Total Investment Return3 | ||||||
| Based on net asset value | (16.45)% | (4.21)% | 31.17% | 20.41% | 25.58% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 1.08% | 0.97% | 1.01% | 1.12% | 1.13% | |
| Total expenses after fees waived and paid indirectly | 1.07% | 0.97% | 1.01% | 1.12% | 1.13% | |
| Net investment income | 0.94% | 0.87% | 1.07% | 0.71% | 1.60% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 76,121 | $ 216,839 | $ 284,754 | $ 144,560 | $ 114,007 | |
| Portfolio turnover | 222% | 94% | 91% | 80% | 109% | |
| Investor A | ||||||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 15.63 | $ 16.44 | $ 12.57 | $ 10.60 | $ 8.47 | |
| Net investment income1 | 0.08 | 0.11 | 0.11 | 0.06 | 0.13 | |
| Net realized and unrealized gain (loss)2 | (2.71) | (0.83) | 3.76 | 2.05 | 2.00 | |
| Net increase (decrease) from investment operations | (2.63) | (0.72) | 3.87 | 2.11 | 2.13 | |
| Dividends from net investment income | (0.07) | (0.09) | — | (0.14) | (0.00)4 | |
| Net asset value, end of year | $ 12.93 | $ 15.63 | $ 16.44 | $ 12.57 | $ 10.60 | |
| Total Investment Return3 | ||||||
| Based on net asset value | (16.71)% | (4.47)% | 30.79% | 20.13% | 25.17% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 1.38% | 1.25% | 1.30% | 1.35% | 1.38% | |
| Total expenses after fees waived and paid indirectly | 1.38% | 1.25% | 1.30% | 1.35% | 1.38% | |
| Net investment income | 0.73% | 0.62% | 0.75% | 0.53% | 1.35% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 229,382 | $ 316,147 | $ 288,912 | $ 227,792 | $ 93,408 | |
| Portfolio turnover | 222% | 94% | 91% | 80% | 109% | |
| 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 exclude the effects of any sales charges and include the reinvestment of dividends and distributions. | ||||||
| 4 Amount is less than ($0.01) per share. | ||||||
| See Notes to Financial Statements. | ||||||
| ANNUAL REPORT | AUGUST 31, 2009 | 23 | ||||
| Financial Highlights (continued) | BlackRock Global Growth Fund, Inc. | ||||||
| Year Ended August 31, | |||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | |||
| Investor B | |||||||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of year | $ 14.83 | $ 15.66 | $ 12.07 | $ 10.17 | $ 8.19 | ||
| Net investment income (loss)1 | (0.03) | (0.04) | (0.01) | (0.06) | 0.05 | ||
| Net realized and unrealized gain (loss)2 | (2.56) | (0.79) | 3.60 | 2.00 | 1.93 | ||
| Net increase (decrease) from investment operations | (2.59) | (0.83) | 3.59 | 1.94 | 1.98 | ||
| Dividends from net investment income | — | — | — | (0.04) | — | ||
| Net asset value, end of year | $ 12.24 | $ 14.83 | $ 15.66 | $ 12.07 | $ 10.17 | ||
| Total Investment Return3 | |||||||
| Based on net asset value | (17.46)% | (5.30)% | 29.74% | 19.18% | 24.18% | ||
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.31% | 2.11% | 2.15% | 2.18% | 2.16% | ||
| Total expenses after fees waived and paid indirectly | 2.31% | 2.11% | 2.15% | 2.18% | 2.16% | ||
| Net investment income (loss) | (0.26)% | (0.25)% | (0.10)% | (0.56)% | 0.56% | ||
| Supplemental Data | |||||||
| Net assets, end of year (000) | $ 10,946 | $ 27,988 | $ 47,186 | $ 62,390 | $ 212,353 | ||
| Portfolio turnover | 222% | 94% | 91% | 80% | 109% | ||
| Investor C | |||||||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of year | $ 14.83 | $ 15.65 | $ 12.06 | $ 10.17 | $ 8.19 | ||
| Net investment income (loss)1 | (0.01) | (0.02) | (0.01) | (0.04) | 0.05 | ||
| Net realized and unrealized gain (loss)2 | (2.56) | (0.80) | 3.60 | 1.98 | 1.93 | ||
| Net increase (decrease) from investment operations | (2.57) | (0.82) | 3.59 | 1.94 | 1.98 | ||
| Dividends from net investment income | — | — | — | (0.05) | — | ||
| Net asset value, end of year | $ 12.26 | $ 14.83 | $ 15.65 | $ 12.06 | $ 10.17 | ||
| Total Investment Return3 | |||||||
| Based on net asset value | (17.33)% | (5.24)% | 29.77% | 19.15% | 24.18% | ||
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.21% | 2.03% | 2.10% | 2.16% | 2.18% | ||
| Total expenses after fees waived and paid indirectly | 2.21% | 2.03% | 2.10% | 2.16% | 2.18% | ||
| Net investment income (loss) | (0.10)% | (0.15)% | (0.04)% | (0.36)% | 0.55% | ||
| Supplemental Data | |||||||
| Net assets, end of year (000) | $ 63,637 | $ 92,737 | $ 70,835 | $ 56,567 | $ 55,507 | ||
| Portfolio turnover | 222% | 94% | 91% | 80% | 109% | ||
| 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 exclude the effects of any sales charges and include the reinvestment of dividends and distributions. | |||||||
| See Notes to Financial Statements. | |||||||
| 24 | ANNUAL REPORT | AUGUST 31, 2009 | |||||
| Financial Highlights (concluded) | BlackRock Global Growth Fund, Inc. | ||||||
| Year Ended August 31, | |||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | |||
| Class R | |||||||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of year | $ 15.20 | $ 16.04 | $ 12.30 | $ 10.42 | $ 8.36 | ||
| Net investment income1 | 0.03 | 0.04 | 0.06 | 0.03 | 0.06 | ||
| Net realized and unrealized gain (loss)2 | (2.64) | (0.80) | 3.68 | 2.00 | 2.01 | ||
| Net increase (decrease) from investment operations | (2.61) | (0.76) | 3.74 | 2.03 | 2.07 | ||
| Dividends from net investment income | (0.06) | (0.08) | — | (0.15) | (0.01) | ||
| Net asset value, end of year | $ 12.53 | $ 15.20 | $ 16.04 | $ 12.30 | $ 10.42 | ||
| Total Investment Return3 | |||||||
| Based on net asset value | (17.06)% | (4.81)% | 30.41% | 19.78% | 24.81% | ||
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.85% | 1.63% | 1.63% | 1.62% | 1.79% | ||
| Total expenses after fees waived and paid indirectly | 1.85% | 1.63% | 1.63% | 1.62% | 1.79% | ||
| Net investment income | 0.30% | 0.26% | 0.44% | 0.23% | 0.99% | ||
| Supplemental Data | |||||||
| Net assets, end of year (000) | $ 14,867 | $ 15,236 | $ 3,880 | $ 1,475 | $ 705 | ||
| Portfolio turnover | 222% | 94% | 91% | 80% | 109% | ||
| 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. | |||||||
See Notes to Financial Statements.
ANNUAL REPORT AUGUST 31, 2009 25
| Financial Highlights | BlackRock Focus Growth Fund, Inc. | |||||||
| Period | ||||||||
| December 1, | ||||||||
| Year Ended | 2007 to | |||||||
| August 31, | August 31, | Year Ended November 30, | ||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||
| Institutional | ||||||||
| Per Share Operating Performance | ||||||||
| Net asset value, beginning of period | $ 2.34 | $ 2.52 | $ 2.01 | $ 1.82 | $ 1.65 | $ 1.57 | ||
| Net investment loss1 | (0.01) | (0.02) | (0.02) | (0.01) | (0.02) | (0.01) | ||
| Net realized and unrealized gain (loss) | (0.37) | (0.16) | 0.53 | 0.20 | 0.19 | 0.09 | ||
| Net increase (decrease) from investment operations | (0.38) | (0.18) | 0.51 | 0.19 | 0.17 | 0.08 | ||
| Net asset value, end of period | $ 1.96 | $ 2.34 | $ 2.52 | $ 2.01 | $ 1.82 | $ 1.65 | ||
| Total Investment Return2 | ||||||||
| Based on net asset value | (16.24)%3 | (7.14)%4 | 25.37% | 10.44% | 10.30% | 5.10% | ||
| Ratios to Average Net Assets5 | ||||||||
| Total expenses | 1.78% | 1.53%6 | 1.40% | 1.55% | 1.63% | 1.70% | ||
| Total expenses after fees waived | 1.78% | 1.47%6 | 1.40% | 1.55% | 1.63% | 1.70% | ||
| Net investment loss | (0.82)% | (0.86)%6 | (0.98)% | (0.66)% | (0.92)% | (0.83)% | ||
| Supplemental Data | ||||||||
| Net assets, end of period (000) | $ 9,673 | $ 13,073 | $ 15,357 | $ 14,217 | $ 16,277 | $ 20,962 | ||
| Portfolio turnover of the Master LLC | 185% | 105% | 145% | 117% | 143% | 183% | ||
| Investor A | ||||||||
| Per Share Operating Performance | ||||||||
| Net asset value, beginning of period | $ 2.28 | $ 2.47 | $ 1.98 | $ 1.80 | $ 1.63 | $ 1.56 | ||
| Net investment loss1 | (0.01) | (0.03) | (0.03) | (0.02) | (0.02) | (0.02) | ||
| Net realized and unrealized gain (loss) | (0.37) | (0.16) | 0.52 | 0.20 | 0.19 | 0.09 | ||
| Net increase (decrease) from investment operations | (0.38) | (0.19) | 0.49 | 0.18 | 0.17 | 0.07 | ||
| Net asset value, end of period | $ 1.90 | $ 2.28 | $ 2.47 | $ 1.98 | $ 1.80 | $ 1.63 | ||
| Total Investment Return2 | ||||||||
| Based on net asset value | (16.67)%3 | (7.69)%4 | 24.75% | 10.00% | 10.43% | 4.49% | ||
| Ratios to Average Net Assets5 | ||||||||
| Total expenses | 2.49% | 2.09%6 | 1.84% | 1.80% | 1.88% | 1.95% | ||
| Total expenses after fees waived | 2.22% | 2.03%6 | 1.84% | 1.80% | 1.88% | 1.95% | ||
| Net investment loss | (1.26)% | (1.42)%6 | (1.41)% | (0.92)% | (1.17)% | (1.08)% | ||
| Supplemental Data | ||||||||
| Net assets, end of period (000) | $ 23,042 | $ 23,111 | $ 9,291 | $ 8,534 | $ 10,146 | $ 13,494 | ||
| Portfolio turnover of the Master LLC | 185% | 105% | 145% | 117% | 143% | 183% | ||
| 1 Based on average shares outstanding. | ||||||||
| 2 Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. | ||||||||
| 3 Includes proceeds received from a settlement of litigation, through its investment in the Master LLC, which impacted the Fund’s total return. Not including these proceeds | ||||||||
| the total return for Institutional Shares would have been (28.21)% and Investor A Shares would have been (28.51)%. | ||||||||
| 4 Aggregate total investment return. | ||||||||
| 5 Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income. | ||||||||
| 6 Annualized. | ||||||||
| See Notes to Financial Statements. | ||||||||
| 26 | ANNUAL REPORT | AUGUST 31, 2009 | ||||||
| Financial Highlights (concluded) | BlackRock Focus Growth Fund, Inc. | |||||||||
| Period | ||||||||||
| December 1, | ||||||||||
| Year Ended | 2007 to | |||||||||
| August 31, | August 31, | Year Ended November 30, | ||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||
| Investor B | ||||||||||
| Per Share Operating Performance | ||||||||||
| Net asset value, beginning of period | $ 2.12 | $ 2.31 | $ 1.87 | $ 1.71 | $ 1.57 | $ 1.51 | ||||
| Net investment loss1 | (0.02) | (0.04) | (0.05) | (0.03) | (0.03) | (0.03) | ||||
| Net realized and unrealized gain (loss) | (0.34) | (0.15) | 0.49 | 0.19 | 0.17 | 0.09 | ||||
| Net increase (decrease) from investment operations | (0.36) | (0.19) | 0.44 | 0.16 | 0.14 | 0.06 | ||||
| Net asset value, end of period | $ 1.76 | $ 2.12 | $ 2.31 | $ 1.87 | $ 1.71 | $ 1.57 | ||||
| Total Investment Return2 | ||||||||||
| Based on net asset value | (16.98)%3 | (8.23)%4 | 23.53% | 9.36% | 8.92% | 3.97% | ||||
| Ratios to Average Net Assets5 | ||||||||||
| Total expenses | 3.07% | 2.97%6 | 2.71% | 2.66% | 2.75% | 2.81% | ||||
| Total expenses after fees waived | 2.79% | 2.91%6 | 2.71% | 2.66% | 2.75% | 2.81% | ||||
| Net investment loss | (1.85)% | (2.32)%6 | (2.29)% | (1.77)% | (2.04)% | (1.93)% | ||||
| Supplemental Data | ||||||||||
| Net assets, end of period (000) | $ 3,307 | $ 10,367 | $ 29,326 | $ 33,161 | $ 45,104 | $ 67,922 | ||||
| Portfolio turnover of the Master LLC | 185% | 105% | 145% | 117% | 143% | 183% | ||||
| Investor C | ||||||||||
| Per Share Operating Performance | ||||||||||
| Net asset value, beginning of period | $ 2.12 | $ 2.31 | $ 1.86 | $ 1.71 | $ 1.56 | $ 1.51 | ||||
| Net investment loss1 | (0.02) | (0.04) | (0.05) | (0.03) | (0.03) | (0.03) | ||||
| Net realized and unrealized gain (loss) | (0.35) | (0.15) | 0.50 | 0.18 | 0.18 | 0.08 | ||||
| Net increase (decrease) from investment operations | (0.37) | (0.19) | 0.45 | 0.15 | 0.15 | 0.05 | ||||
| Net asset value, end of period | $ 1.75 | $ 2.12 | $ 2.31 | $ 1.86 | $ 1.71 | $ 1.56 | ||||
| Total Investment Return2 | ||||||||||
| Based on net asset value | (17.45)%3 | (8.23)%4 | 24.19% | 8.77% | 9.62% | 3.31% | ||||
| Ratios to Average Net Assets5 | ||||||||||
| Total expenses | 3.27% | 2.93%6 | 2.75% | 2.68% | 2.77% | 2.83% | ||||
| Total expenses after fees waived | 2.98% | 2.87%6 | 2.75% | 2.68% | 2.77% | 2.83% | ||||
| Net investment loss | (2.02)% | (2.27)%6 | (2.32)% | (1.79)% | (2.06)% | (1.95)% | ||||
| Supplemental Data | ||||||||||
| Net assets, end of period (000) | $ 13,681 | $ 18,534 | $ 20,998 | $ 20,928 | $ 27,457 | $ 41,234 | ||||
| Portfolio turnover of the Master LLC | 185% | 105% | 145% | 117% | 143% | 183% | ||||
| 1 Based on average shares outstanding. | ||||||||||
| 2 Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. | ||||||||||
| 3 Includes proceeds received from a settlement of litigation, through its investment in the Master LLC, which impacted the Fund’s total return. Not including these proceeds | ||||||||||
| the total return for Investor B Shares would have been (28.77)% and Investor C shares would have been (28.77)%. | ||||||||||
| 4 Aggregate total investment return. | ||||||||||
| 5 Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income. | ||||||||||
| 6 Annualized. | ||||||||||
| See Notes to Financial Statements. | ||||||||||
| ANNUAL REPORT | AUGUST 31, 2009 | 27 | ||||||||
Notes to Financial Statements
1. Organization and Significant Accounting Policies:
BlackRock Fundamental Growth Principal Protected Fund (“Fundamental
Growth Principal Protected”), which is a series of BlackRock Principal
Protected Trust (the “Trust”), BlackRock Global Growth Fund, Inc. (“Global
Growth”) and BlackRock Focus Growth Fund, Inc. (“Focus Growth”) (collec-
tively, the “Funds” or individually, the “Fund”), are registered under the
Investment Company Act of 1940, as amended (the “1940 Act”). The Trust
is a Delaware statutory trust and Focus Growth and Global Growth are
organized as Maryland corporations. Focus Growth is registered as a non-
diversified, open-end management investment company. Fundamental
Growth Principal Protected and Global Growth are registered as diversified,
open-end management investment companies. The Funds’ financial state-
ments are prepared in conformity with accounting principles generally
accepted in the United States of America, which may require the use of
management accruals and estimates. Actual results may differ from these
estimates. The Boards of Trustees and Directors of the Funds are referred
to throughout this report as the “Board of Directors” or the “Board”. Each
Fund offers multiple classes of shares. Institutional Shares are sold without
a sales charge and only to certain eligible investors. Investor A Shares are
generally sold with a front-end sales charge. Shares of Investor B and
Investor C may be subject to a contingent deferred sales charge. Class R
Shares are offered only by Global Growth and are sold only to certain
retirement or similar plans. All classes of shares have identical voting,
dividend, liquidation and other rights and the same terms and conditions,
except that Investor A, Investor B, Investor C and Class R Shares bear cer-
tain expenses related to the shareholder servicing of such shares, and
Investor B, Investor C and Class R Shares also bear certain expenses
related to the distribution of such shares. Investor B Shares automatically
convert to Investor A Shares after approximately 8 years. Each class has
exclusive voting rights with respect to matters relating to its shareholder
servicing and distribution expenditures (except that Investor B shareholders
may vote on material changes to the Investor A distribution plan).
Shares of Fundamental Growth Principal Protected were offered during the
initial offering period but will not be offered during the Guarantee Period
from November 13, 2002 through November 13, 2009 (the “Guarantee
Maturity Date”), except in connection with reinvestment of dividends and
distributions. The Board of Directors has approved the liquidation of the
Fund, which is anticipated to occur on or after the Guarantee Maturity date.
Focus Growth seeks to achieve its investment objective by investing all of
its assets in the Master Focus Growth LLC (the “Master LLC”), which has
the same investment objective and strategies as the Fund. The value of
Focus Growth’s investment in the Master LLC reflects the Fund’s proportion-
ate interest in the net assets of the Master LLC. The performance of the
Fund is directly affected by the performance of the Master LLC. The finan-
cial statements of the Master LLC, including the Schedule of Investments,
are included elsewhere in this report and should be read in conjunction
with Focus Growth’s financial statements. The percentage of the Master LLC
owned by Focus Growth at August 31, 2009 was 100%.
The following is a summary of significant accounting policies followed by
the Funds:
Valuation of Investments: Equity investments traded on a recognized
securities exchange or the NASDAQ Global Market System 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 price.
If no bid 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. Short-term securities with maturities less than
60 days may be valued at amortized cost, which approximates fair value.
Investments in open-end investment companies are valued at their net
asset value each business day. Each Fund values its investments in Cash
Sweep Series and Money Market Series, each of BlackRock Liquidity
Series, LLC at fair value, which is ordinarily based upon their pro rata
ownership in the net assets of the underlying fund.
Exchange-traded options are valued at the mean between the last bid
and ask prices at the close of the options market in which the options
trade. An exchange-traded option for which there is no mean price is val-
ued at the last 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 deter-
mined that such prior day’s price no longer reflects the fair value of the
option. Over-the-counter (“OTC”) options are valued by an independent
pricing service using a mathematical model which incorporates a number
of market data factors.
The Funds value their bond investments on the basis of last available bid
price or current market quotations provided by dealers or pricing services
selected under the supervision of each Fund’s Board. In determining the
value of a particular investment, pricing services may use certain informa-
tion with respect to transactions in such investments, quotations from
dealers, pricing matrixes, market transactions in comparable investments,
various relationships observed in the market between investments and
calculated yield measures based on valuation technology commonly
employed in the market for such investments.
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 are not available, the investment will be
valued by a method approved by each Fund’s Board as reflecting fair value
(“Fair Value Assets”). When determining the price for Fair Value Assets, the
investment advisor and/or sub-advisor seeks to determine the price that
the Funds 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 securities is substantially completed each
day at various times prior to the close of business on the New York Stock
Exchange (“NYSE”). The values of such securities used in computing the
28 ANNUAL REPORT AUGUST 31, 2009
Notes to Financial Statements (continued)
net assets of the Funds are determined as of such times. Foreign currency
exchange rates will be determined as of the close of business on the
NYSE. Occasionally, events affecting the values of such securities and such
exchange rates may occur between the times at which they are determined
and the close of business on the NYSE that may not be reflected in the
computation of the Funds’ 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 securities,
those securities will be valued at their fair value as determined in good
faith by the Board or by the investment advisor using a pricing service
and/or procedures approved by the Board. Foreign currency exchange
contracts are valued at the mean between the bid and ask prices.
Interpolated values are derived when the settlement date of the contract
is an interim date for which quotations are not available.
Focus Growth records its investment in the Master LLC at fair value.
Valuation of securities held by the Master LLC is discussed in Note 1 of the
Master LLC’s Notes to Financial Statements, which are included elsewhere
in this report.
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157, “Fair Value Measurements” clarifies the definition of fair
value, establishes a framework for measuring fair values and requires addi-
tional disclosures about the use of fair value measurements. Various inputs
are used in determining the fair value of investments, which are as follows:
• Level 1 — price quotations in active markets/exchanges for identical
securities
• 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 Fund’s own assumptions used in determining the fair
value of investments)
The inputs or methodology used for valuing securities are not necessar-
ily an indication of the risk associated with investing in those securities.
The following table summarizes the inputs used as of August 31, 2009
in determining the fair valuation of the Fund’s investments:
| Focus Growth | |
| Investment in | |
| Valuation Inputs | Master LLC |
| Assets | |
| Level 1 | — |
| Level 2 | $ 49,782,469 |
| Level 3 | — |
| Total | $ 49,782,469 |
Foreign Currency Transactions: Foreign currency amounts are translated
into United States dollars on the following basis: (i) market value of
investment securities, assets and liabilities at the current rate of exchange;
and (ii) purchases and sales of investment securities, income and
expenses at the rates of exchange prevailing on the respective dates of
such transactions.
The Funds report foreign currency related transactions as components of
realized gains for financial reporting purposes, whereas such components
are treated as ordinary income for federal income tax purposes.
Zero-Coupon Bonds: Fundamental Growth Principal Protected may invest
in zero-coupon bonds, which are normally issued at a significant discount
from face value and do not provide for periodic interest payments. Zero-
coupon bonds may experience greater volatility in market value than similar
maturity debt obligations which provide for regular interest payments.
Segregation and Collateralization: In cases in which the 1940 Act and the
interpretive positions of the Securities and Exchange Commission (“SEC”)
require that a Fund either delivers collateral or segregates assets in con-
nection with certain investments (e.g., financial futures contracts, foreign
currency exchange contracts and options written), each Fund will, consistent
with SEC rules and/or certain interpretive letters issued by the SEC, segre-
gate collateral or designate on its books and records cash or other 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 has requirements to deliver/deposit securities
as collateral for certain investments (e.g., financial futures contracts and
options written). As part of these agreements, when the value of these
investments achieves a previously agreed upon value (minimum transfer
amount), each party may be required to deliver additional collateral.
Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses on
security 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 Funds have determined the ex-dividend date. 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 is recognized
on the accrual basis. Income and realized and unrealized gains and losses
are allocated daily to each class based on its relative net assets.
Focus Growth records daily it’s proportionate share of the Master LLC’s
income, expenses and realized and unrealized gains and losses. In addi-
tion, the Fund accrues its own expenses.
Dividends and Distributions: Dividends and distributions paid by the Funds
are recorded on the ex-dividend dates.
ANNUAL REPORT AUGUST 31, 2009 29
Notes to Financial Statements (continued)
Securities Lending: The Funds may lend securities to financial institutions
that provide cash 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 Funds and any additional required collateral is
delivered to the Funds on the next business day. The Funds typically receive
the income on the loaned securities but do not receive the income on the
collateral. The Funds may invest the cash collateral and retain the amount
earned on such investment, net of any amount rebated to the borrower.
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. The Funds may pay
reasonable lending agent, administrative and custodial fees in connection
with their loans. In the event that the borrower defaults on its obligation to
return borrowed securities because of insolvency or for any other reason,
the Funds could experience delays and costs in gaining access to the
collateral. The Funds also could suffer a loss if the value of an invest-
ment 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.
Income Taxes: It is each Fund’s policy to comply with the requirements of
the Internal Revenue Code 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. Under the applicable
foreign tax laws, a withholding tax may be imposed on interest, dividends
and capital gains at various rates.
Each Fund files US federal and various state local tax returns. No income
tax returns are currently under examination. The statute of limitations on
the Funds’ US federal tax returns remain open for the four years ended
August 31, 2009 for Fundamental Growth Principal Protected and Global
Growth; and for the three years ended November 30, 2007 and the periods
ended August 31, 2008 and 2009 for Focus Growth. The statute of limita-
tions on the Funds’ state and local tax returns may remain open for an
additional year depending on the jurisdiction.
Recent Accounting Pronouncement: In June 2009, Statement of Financial
Accounting Standards No. 166, “Accounting for Transfers of Financial Assets
— an amendment of FASB Statement No. 140” (“FAS 166”), was issued.
FAS 166 is intended to improve the relevance, representational faithfulness
and comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows;
and a transferor’s continuing involvement, if any, in transferred financial
assets. FAS 166 is effective for financial statements issued for fiscal
years and interim periods beginning after November 15, 2009. Earlier
application is prohibited. The recognition and measurement provisions of
FAS 166 must be applied to transfers occurring on or after the effective
date. Additionally, the disclosure provisions of FAS 166 should be applied
to transfers that occurred both before and after the effective date of FAS
166. The impact of FAS 166 on the Funds’ financial statement disclosures,
if any, is currently being assessed.
Bank Overdraft: Fundamental Growth Principal Protected recorded a bank
overdraft due to estimates of available cash.
Other: Expenses directly related to each Fund or its classes are charged to
that Fund or class. Other operating expenses shared by several funds are
prorated among those funds on the basis of relative net assets or other
appropriate methods. Other expenses of each Fund are allocated daily to
each class based on its relative net assets. Custodian fees may be reduced
by amounts calculated on uninvested cash balances, which are shown as
fees paid indirectly in the Statements of Operations.
2. Derivative Financial Instruments:
The Funds may engage in various portfolio investment strategies both to
increase the returns of the Funds and to economically hedge, or protect,
their exposure to certain risks such as equity risk and foreign currency
exchange rate risk. Losses may arise if the value of the contract decreases
due to an unfavorable change in the price of the underlying security or if
the counterparty does not perform under the contract. The Funds may miti-
gate counterparty risk through master netting agreements included within
an International Swap and Derivatives Association, Inc. (“ISDA”) Master
Agreement between a Fund and each of its counterparties. The ISDA Master
Agreement allows each Fund to offset with its counterparty certain deriva-
tive financial instrument’s payables and/or receivables with collateral held
with each counterparty. The amount of collateral moved to/from applicable
counterparties is based upon minimum transfer amounts of up to $500,000.
To the extent amounts due to the Funds from their counterparties are not
fully collateralized contractually or otherwise, the Funds bear the risk of
loss from counterparty non-performance. See Note 1 “Segregation and
Collateralization” for information with respect to collateral practices.
The Funds’ maximum risk of loss from counterparty credit risk on over-the-
counter derivatives is generally the aggregate unrealized gain in excess of
any collateral pledged by the counterparty to the Funds. For over-the-counter
purchased options, the Funds bear the risk of loss in the amount of the pre-
miums paid and change in market value of the options should the counter-
party not perform under the contracts. Options written by the Funds do not
give rise to counterparty credit risk, as written options obligate the Funds to
perform and not the counterparty. Certain ISDA Master Agreements allow
counterparties to over-the-counter derivatives to terminate derivative con-
tracts prior to maturity in the event a Fund’s net assets decline by a stated
percentage or a Fund fails to meet the terms of its ISDA Master Agreements,
which would cause the Fund to accelerate payment of any net liability owed
to the counterparty. Counterparty risk related to exchange-traded financial
futures contracts and options is minimal because of the protection against
defaults provided by the exchange on which they trade.
Financial Futures Contracts: The Funds may purchase or sell financial
futures contracts and options on financial futures contracts to gain expo-
sure 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 contracts for delayed delivery of secu-
rities at a specific future date and at a specific price or yield. Pursuant
to the contract, the Funds agree to receive from or pay to the broker an
amount of cash equal to the daily fluctuation in value of the contract. Such
30 ANNUAL REPORT AUGUST 31, 2009
Notes to Financial Statements (continued)
receipts or payments are known as margin variation and are recognized by
the Funds as unrealized gains or losses. When the contract is closed, the
Funds record 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 transactions 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 Funds may enter into foreign
currency exchange contracts as an economic hedge against either specific
transactions or portfolio positions (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 Funds, help to manage the
overall exposure to the foreign currency backing some of the investments
held by the Funds. The contract is marked-to-market daily and the change
in market value is recorded by the Funds as an unrealized gain or loss.
When the contract is closed, the Funds record 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 con-
tracts involves the risk that counterparties may not meet the terms of the
agreement or unfavorable movements in the value of a foreign currency rel-
ative to the US dollar.
Options: The Funds may purchase and write call and put options to
increase or decrease their exposure to underlying instruments. A call option
gives the purchaser of the option the right (but not the obligation) to buy,
and obligates the seller to sell (when the option is exercised), the underly-
ing instrument at the exercise price at any time or at a specified time dur-
ing the option period. A put option gives the holder the right to sell and
obligates the writer to buy the underlying instrument at the exercise price
at any time or at a specified time during the option period. When the Funds
purchase (write) an option, an amount equal to the premium paid
(received) by the Funds are reflected as an asset (liability) and an equiva-
lent liability (asset). The amount of the asset (liability) is subsequently
marked-to-market to reflect the current market value of the option pur-
chased (written). When an instrument is purchased or sold through an
exercise of an option, the related premium paid (or received) is added to
(or deducted from) the basis of the instrument acquired or deducted from
(or added to) the proceeds of the instrument sold. When an option expires
(or the Funds enter into a closing transaction), the Funds realize a gain or
loss on the option to the extent of the premiums received or paid (or gain
or loss to the extent the cost of the closing transaction exceeds the pre-
mium received or paid). When the Funds write a call option, such option
is “covered,” meaning that the Funds hold the underlying instrument sub-
ject to being called by the option counterparty, or cash in an amount suffi-
cient to cover the obligation. When the Funds write a put option, such
option is covered by cash in an amount sufficient to cover the obligation.
In purchasing and writing options, the Funds bear the risk of an unfavor-
able change in the value of the underlying instrument or the risk that the
Funds may not be able to enter into a closing transaction due to an illiquid
market. Exercise of a written option could result in the Funds purchasing a
security at a price different from the current market value. The Funds may
execute transactions in both listed and over-the-counter options. Listed
| options involve minimal counterparty risk since listed options are guaran- | |||||
| teed against default by the exchange on which they trade. | |||||
| Fundamental Growth Principal Protected | |||||
| Derivatives Not Accounted for as Hedging Instruments under Financial | |||||
| Accounting Standards Board Statement of Financial Accounting Standards | |||||
| No. 133, “Accounting for Derivative Instruments and Hedging Activities” | |||||
| The Effect of Derivative Instruments on the Statement of Operations | |||||
| Year Ended August 31, 2009 | |||||
| Net Realized Gain (Loss) From Derivatives Recognized in Income | |||||
| Foreign | |||||
| Currency | |||||
| Exchange | |||||
| Contracts | |||||
| Foreign currency exchange contracts | $ (854) | ||||
| Global Growth | |||||
| Derivatives Not Accounted for as Hedging Instruments under Financial | |||||
| Accounting Standards Board Statement of Financial Accounting Standards | |||||
| No. 133, “Accounting for Derivative Instruments and Hedging Activities”: | |||||
| Values of Derivative Instruments as of August 31, 2009 | |||||
| Asset Derivatives | Liability Derivatives | ||||
| Statements | Statements | ||||
| of Assets and | of Assets and | ||||
| Liabilities | Liabilities | ||||
| Location | Value | Location | Value | ||
| Unrealized | Unrealized | ||||
| appreciation | depreciation | ||||
| on foreign | on foreign | ||||
| currency | currency | ||||
| Foreign currency | exchange | exchange | |||
| exchange contracts | contracts | $538,080 | contracts | $112,640 | |
| The Effect of Derivative Instruments on the Statement of Operations | |||||
| Year Ended August 31, 2009 | |||||
| Net Realized Gain (Loss) From Derivatives Recognized in Income | |||||
| Foreign | |||||
| Financial | Currency | ||||
| Futures | Exchange | Option | |||
| Contracts | Contracts | Contracts | Total | ||
| Foreign currency | |||||
| exchange contracts | — | $2,338,629 | — | $2,338,629 | |
| Equity contracts | $(1,758,625) | — | $ 395,470 | (1,363,155) | |
| Total | $(1,758,625) $2,338,629 | $ 395,470 | $ 975,474 | ||
| Net Change in Unrealized Appreciation/Depreciation | |||||
| on Derivatives Recognized in Income | |||||
| Foreign | |||||
| Currency | |||||
| Exchange | |||||
| Contracts | |||||
| Foreign currency exchange contracts | $ 425,440 | ||||
| 3. Investment Advisory Agreement and Other Transactions | |||||
| with Affiliates: | |||||
| The PNC Financial Services Group, Inc. (“PNC”) and Bank of America | |||||
| Corporation (“BAC”) are the largest stockholders of BlackRock, Inc. | |||||
| (“BlackRock”). BAC became a stockholder of BlackRock following its | |||||
ANNUAL REPORT AUGUST 31, 2009 31
Notes to Financial Statements (continued)
acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1,
2009. Prior to that date, both PNC and Merrill Lynch were considered affili-
ates of the Funds under the 1940 Act. Subsequent to the acquisition, PNC
remains an affiliate, but due to the restructuring of Merrill Lynch’s owner-
ship interest of BlackRock, BAC is not deemed to be an affiliate under the
1940 Act.
Fundamental Growth Principal Protected and Global Growth have
entered into an Investment Advisory Agreement with BlackRock Advisors,
LLC (the “Manager”), the Funds’ investment advisor, an indirect, wholly
owned subsidiary of BlackRock, to provide investment advisory and
administration services.
The Manager is responsible for the management of each Fund’s portfolio
and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of each Fund. For such services,
Fundamental Growth Principal Protected pays the Manager a monthly fee
at an annual rate of 0.65% of the average daily value of the Fund’s net
assets. Global Growth pays the Manager a monthly fee at an annual rate
of 0.75% of the average daily value of the Fund’s net assets not exceeding
$1.5 billion and 0.725% of the average daily value of the Fund’s net
assets in excess of $1.5 billion.
The Manager has entered into a contractual agreement with Fundamental
Growth Principal Protected under which the Manager has agreed to con-
tractually waive or reimburse fees or expenses to limit net expenses
(excluding interest expense, acquired fund fees and expenses and certain
other Fund expenses) to 2.24% (for Investor A Shares), 2.99% (for Investor
B and Investor C Shares) and 1.99% (for Institutional Shares) of average
daily net assets. This arrangement has a one-year term and is automati-
cally renewable. The following amounts are shown as fees waived by
advisor — class specific in the Statements of Operations:
| Institutional | $ 2,530 |
| Investor A | $ 4,404 |
| Investor B | $ 24,218 |
| Investor C | $ 21,968 |
Focus Growth has entered into an Administration Agreement with the
Manager to provide administrative services (other than investment advise
and related portfolio activities). For such services, the Fund pays the
administrator a monthly fee at an annual rate of 0.25% of the average
daily value of the Fund’s net assets.
The Manager has contractually agreed to waive the administration fee of
Focus Growth paid to the Master LLC and the administration fee of Focus
Growth, as necessary, to reduce the sum of the advisory fee (as a percent-
age of the average daily net assets of the Master LLC) and the administra-
tion fee (as a percentage of the daily net assets of the Fund) from 0.85%
to 0.65%. In addition, the Manager has contractually agreed to waive
and/or reimburse fees and/or expenses in order to limit net expenses for
Focus Growth (including service and distribution fees and excluding inter-
est expense, acquired fund fees and expenses and certain other Fund
expenses) as a percentage of average daily net assets allocated to each
class as follows: 2.25% (for Investor A Shares), 3.00% (for Investor B and
Investor C Shares) and 2.00% (for Institutional Shares) of the Fund’s aver-
age daily net assets. These contractual waiver agreements have a one-year
term and are renewable annually. The following amounts are shown as fees
waived by the advisor — class specific in the Statements of Operations:
| Institutional | $ 622 |
| Investor A | $50,848 |
| Investor B | $13,540 |
| Investor C | $37,194 |
The Manager has agreed to waive its advisory fee by the amount of invest-
ment advisory fees the Funds pay to the Manager indirectly through their
investment in affiliated money market funds. These amounts are shown as
fees waived by advisor in the Statements of Operations.
The Manager has entered into a separate sub-advisory agreement with
BlackRock Investment Management, LLC (“BIM”), an affiliate of the
Manager, under which the Manager pays BIM for services it provides, a
monthly fee that is a percentage of the investment advisory fee paid by
each Fund to the Manager.
For the year ended August 31, 2009, Fundamental Growth Principal
Protected and Global Growth reimbursed the Manager for certain account-
ing services, which are included in accounting services in the Statements
of Operations. The reimbursements were as follows:
| Fundamental Growth Principal Protected | $ 968 |
| Global Growth | $ 7,848 |
The Funds have received an exemptive order from the SEC permitting
it to lend portfolio securities to Merrill Lynch, Pierce, Fenner & Smith
Incorporated (“MLPF&S”), a wholly owned subsidiary of Merrill Lynch, or
its affiliates. Pursuant to that order, the Funds have retained BIM as the
securities lending agent for a fee based on a share of the income from
investment of cash collateral. BIM may, on behalf of the Funds, invest
cash collateral received by the Funds 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 share of
income earned by the Funds on such investments is shown as securities
lending — affiliated in the Statements of Operations. For the year ended
August 31, 2009, BIM received $5,561 in securities lending agent fees
from Global Growth.
Effective October 1, 2008, the Funds entered into a Distribution Agreement
and Distribution Plans with BlackRock Investments, LLC (“BRIL”), which
replaced FAM Distributors, Inc. (“FAMD”) and BlackRock Distributors, Inc.
(“BDI”) (collectively, the “Distributor”) as the sole distributor of the Funds.
FAMD is a wholly owned subsidiary of Merrill Lynch Group, Inc. BRIL and
BDI are affiliates of BlackRock. The service and distribution fees did not
change as a result of this transaction.
Pursuant to the Distribution Plans adopted by the Funds in accordance
with Rule 12b-1 under the 1940 Act, each Fund pays the Distributor
ongoing service and distribution fees. The fees are accrued daily and paid
32 ANNUAL REPORT AUGUST 31, 2009
| Notes to Financial Statements (continued) | ||
| monthly at annual rates based upon the average daily net assets of the | ||
| shares as follows: | ||
| Service | Distribution | |
| Fee | Fee | |
| Investor A | 0.25% | — |
| Investor B | 0.25% | 0.75% |
| Investor C | 0.25% | 0.75% |
| Class R | 0.25% | 0.25% |
| Pursuant to sub-agreements with the Distributor, broker-dealers, including | ||
| MLPF&S and the Distributor provide shareholder servicing and distribution | ||
| services to each Fund. The ongoing service and/or distribution fee com- | ||
| pensates the Distributor and each broker-dealer for providing shareholder | ||
| servicing and/or distribution-related services to Investor A, Investor B, | ||
| Investor C and Class R shareholders. | ||
| For the year ended August 31, 2009, affiliates including Merrill Lynch, from | ||
| September 1, 2008 to December 31, 2008 (after which time Merrill Lynch | ||
| was no longer considered an affiliate) earned underwriting discounts, direct | ||
| commissions and dealer concessions on sales of the Funds’ Investor A | ||
| Shares as follows: | ||
| Investor A | ||
| Global Growth | $ 16,204 | |
| Focus Growth | $ 2,965 | |
| For the year ended August 31, 2009, affiliates received contingent deferred | ||
| sales charges relating to transactions in Investor B and Investor C Shares | ||
| as follows: | ||
| Investor B | Investor C | |
| Fundamental Growth Principal Protected | $ 10,566 | $ 97 |
| Global Growth | $ 24,135 | $ 17,611 |
| Focus Growth | $ 5,766 | $ 5,543 |
| Furthermore, affiliates received contingent deferred sales charges relating | ||
| to transactions subject to front-end sales charge waivers relating to Investor | ||
| A Shares as follows: | ||
| Investor A | ||
| Fundamental Growth Principal Protected | $ 102 | |
| Global Growth | $ 18,032 | |
| Focus Growth | $ 359 | |
| In addition, MLPF&S received commissions on the execution of portfolio | ||
| security transactions for the Funds for the period September 1, 2008 | ||
| to December 31, 2008 (after which time MLPF&S was no longer consid- | ||
| ered an affiliate): | ||
| Commissions | ||
| Fundamental Growth Principal Protected | $ 1,789 | |
| Global Growth | $ 54,827 | |
| PNC Global Investment Servicing (U.S.) Inc., an indirect, wholly owned sub- | ||
| sidiary of PNC and an affiliate of the Manager, serves as transfer agent and | ||
| dividend disbursing agent. Each class of the Funds bears the costs of transfer | ||
| agent fees associated with such respective class. Transfer agency fees borne | ||
by each class of the Funds are comprised of those fees charged for all
shareholder communications including mailing of shareholder reports,
dividend and distribution notices, and proxy materials for shareholder
meetings, as well as per account and per transaction fees related to ser-
vicing and maintenance of shareholder accounts, including the issuing,
redeeming and transferring of shares of each class of the Funds, 12b-1
fee calculation, check writing, anti-money laundering services, and cus-
tomer identification services.
The Trust, on behalf of Fundamental Growth Principal Protected, has
entered into a Financial Warranty Agreement with Main Place Funding, LLC
(the “Warranty Provider”). The Financial Warranty Agreement is intended to
ensure that on the Guarantee Maturity Date, each shareholder of the Fund
will be entitled to redeem his or her shares for an amount no less than the
initial value of that shareholder’s account (less expenses and sales charges
not covered by the Financial Warranty Agreement), provided that all divi-
dends and distributions received from the Fund have been reinvested and
no shares have been redeemed (the “Guaranteed Amount”). The Fund will
pay to the Warranty Provider, under the Financial Warranty Agreement, an
annual fee equal to 0.80% of the Fund’s average daily net assets during
the Guarantee Period. If the value of the Fund’s assets on the Guarantee
Maturity Date is insufficient to result in the value of each shareholder’s
account being at least equal to the shareholder’s Guaranteed Amount, the
Warranty Provider will pay the Fund an amount sufficient to ensure that
each shareholder’s account can be redeemed for an amount equal to his
or her Guaranteed Amount.
Pursuant to written agreements, certain affiliates, including Merrill Lynch,
from September 1, 2008 to December 31 2008 (after which time Merrill
Lynch was no longer considered an affiliate) provide the Funds with sub-
accounting, recordkeeping, sub-transfer agency and other administrative
services with respect to sub-accounts they service. For these services,
these affiliates receive an annual fee per shareholder account which will
vary depending on share class. For the year ended August 31, 2009, the
Funds paid the following fees in return for these services which are included
in transfer agent in the Statements of Operations:
| Fundamental Growth Principal Protected | $ 22,560 | |
| Global Growth | $232,694 | |
| Focus Growth | $ 85,262 | |
| The Funds may earn income on positive cash balances in demand deposit | ||
| accounts that are maintained by the transfer agent on behalf of the Funds. | ||
| For the year ended August 31, 2009, the Funds earned the following, which | ||
| are included in income — affiliated in the Statements of Operations: | ||
| Fundamental Growth Principal Protected | $ 15 | |
| Global Growth | $ 197 | |
| Focus Growth | $ 119 | |
| The Manager maintains a call center, which is responsible for providing | ||
| certain shareholder services to the Funds, such as responding to share- | ||
| holder inquiries and processing transactions based upon instructions from | ||
| shareholders with respect to the subscription and redemption of Fund | ||
| shares. For the year ended August 31, 2009, the following amounts have | ||
ANNUAL REPORT AUGUST 31, 2009 33
| Notes to Financial Statements (continued) | |||
| been accrued by the Funds to reimburse the Manager for costs incurred in | |||
| running the call center, which are included in transfer agent in the State- | |||
| ments of Operations. | |||
| Call Center Fees | |||
| Fundamental | |||
| Growth | |||
| Principal | Global | ||
| Protected | Growth | ||
| Institutional | $ 40 | $ 3,307 | |
| Investor A | $ 141 | $11,595 | |
| Investor B | $ 815 | $ 1,761 | |
| Investor C | $ 569 | $ 3,841 | |
| Class R | — | $ 356 | |
| Focus Growth | |||
| Period | |||
| December 31, | |||
| Year Ended | 2007 to | Year Ended | |
| August 31, | August 31, | November 30, | |
| 2009 | 2008 | 2007 | |
| Institutional | $ 368 | $ 355 | $ 183 |
| Investor A | $ 3,580 | $ 884 | $ 371 |
| Investor B | $ 378 | $ 3,009 | $ 1,664 |
| Investor C | $ 2,323 | $ 2,502 | $ 1,215 |
| Certain officers and/or directors of the Funds are officers and/or directors | |||
| of BlackRock or its affiliates. The Funds reimbursed the Manager for com- | |||
| pensation paid to the Funds’ Chief Compliance Officer. | |||
| 4. Investments: | |||
| Purchases and sales of investments, excluding short-term securities and | |||
| US Government securities, for the year ended August 31, 2009 were | |||
| as follows: | |||
| Purchases | Sales | ||
| Fundamental Growth Principal Protected | $ 10,501,319 | $ 28,853,691 | |
| Global Growth | $879,621,158 | $985,332,828 | |
| For the year ended August 31, 2009, purchases and sales of US govern- | |||
| ment securities for Fundamental Growth Principal Protected were | |||
| $16,646,645 and $14,301,882, respectively. | |||
| Transactions in options written for the year ended August 31, 2009 were | |||
| as follows: | |||
| Global Growth | |||
| Call Options | Premiums | ||
| Written | Contracts | Received | |
| Outstanding call options written, beginning | |||
| of year | — | — | |
| Options written | 697 | $ 301,111 | |
| Options closed | (357) | (270,171) | |
| Options exercised | (340) | (30,940) | |
| Outstanding call options written, end of year | — | — | |
| Put Options | Premiums | |
| Written | Contracts | Received |
| Outstanding put options written, beginning | ||
| of year | — | — |
| Options written | 697 | $ 321,230 |
| Options closed | (357) | (292,670) |
| Options expired | (340) | (28,560) |
| Outstanding put options written, end of year | — | — |
5. Short-Term Borrowings:
The Trust, on behalf of Fundamental Growth Principal Protected, Global
Growth and Focus Growth (through its investment in the Master LLC), 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
expires in November 2009. The Funds may borrow under the credit agree-
ment to fund shareholder redemptions and for other lawful purposes other
than for leverage. The Funds may borrow up to the maximum amount allow-
able under each Fund’s current Prospectus and Statement of Additional
Information, subject to various other legal, regulatory or contractual limits.
Each Fund paid its pro rata share of 0.02% upfront fee on the aggregate
commitment amount based on their net assets as of October 31, 2008.
Each Fund pays a commitment fee of 0.08% per annum based on each
Fund’s pro rata share of the unused portion of the credit agreement, which
is included in miscellaneous in the Statements of Operations. Amounts
borrowed under the credit agreement bear interest at a rate equal to the
higher of the (a) federal funds effective rate and (b) reserve adjusted one
month LIBOR, plus, in each case, the higher of (i) 1.50% and (ii) 50% of
the CDX Index (as defined in the credit agreement) in effect from time to
time. The Funds did not borrow under the credit agreement during the year
ended August 31, 2009.
6. Income Tax Information:
Reclassifications: Accounting principles generally accepted in the United
States of America require 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 August 31, 2009 attributable to
net operating losses, expiration of capital loss carryforwards and foreign
currency transactions were reclassified to the following accounts:
| Fundamental | |||
| Growth | |||
| Principal | Global | Focus | |
| Protected | Growth | Growth | |
| Paid-in capital | (115,659) | (3,964,136) | (1,109,647,733) |
| Undistributed net investment income | |||
| (accumulated net investment loss) | 116,515 | 2,730,468 | 606,850 |
| Accumulated net realized loss | (856) | 1,233,668 | 1,109,040,883 |
34 ANNUAL REPORT AUGUST 31, 2009
| Notes to Financial Statements (continued) | |||
| The tax character of distributions paid during the fiscal years ended | |||
| August 31, 2009 and August 31, 2008 were as follows: | |||
| Fundamental | |||
| Growth | |||
| Principal | Global | ||
| Protected | Growth | ||
| Ordinary income | |||
| 8/31/2009 | — | $ 2,675,172 | |
| 8/31/2008 | — | $ 4,041,943 | |
| Long-term capital gains | |||
| 8/31/2009 | $ 2,068,187 | — | |
| 8/31/2008 | $ 5,587,326 | — | |
| Total distributions | |||
| 8/31/2009 | $ 2,068,187 | $ 2,675,172 | |
| 8/31/2008 | $ 5,587,326 | $ 4,041,943 | |
| As of August 31, 2009 the tax components of accumulated net losses were | |||
| as follows: | |||
| Fundamental | |||
| Growth | |||
| Principal | Global | Focus | |
| Protected | Growth | Growth | |
| Undistributed ordinary income | — | $ 6,618,146 | — |
| Capital loss carryforwards | $ (952,178) | (321,149,914) | $(271,174,398) |
| Net unrealized losses* | (934,817) | (110,113,097) | (4,021,978) |
| Total | $(1,886,995) $(424,644,865) | $(275,196,376) | |
| * The differences between book-basis and tax-basis net unrealized losses were attribut- | |||
| able primarily to the tax deferral of losses on wash sales, the realization for tax pur- | |||
| poses of unrealized gains on investments in passive foreign investment companies, | |||
| the realization for tax purposes of unrealized gains on foreign currency contracts, the | |||
| deferral of post-October capital losses for tax purposes and the timing and recogni- | |||
| tion of partnership income. | |||
| As of August 31, 2009, the Funds had capital loss carryforwards available | |||
| to offset future realized capital gains through the indicated expiration dates: | |||
| Fundamental | |||
| Growth | |||
| Principal | Global | Focus | |
| Expires | Protected | Growth | Growth |
| 2010 | — | $ 3,964,136 | $266,652,046 |
| 2011 | — | 291,266,565 | — |
| 2017 | $ 952,178* | 25,919,213 | 4,522,352 |
| Total | $ 952,178 | $321,149,914 | $271,174,398 |
| * If, as expected, the Fund liquidates, the capital loss carryforward will be available to | |||
| offset realized capital gains through the liquidation date. | |||
7. Concentration, Geographic, Market and Credit Risk:
In the normal course of business, the Funds invest in securities and enter
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 (credit
risk). The value of securities held by the Funds may decline in response to
certain events, including those directly involving the issuers whose securi-
ties are owned by the Funds; conditions affecting the general economy;
overall market changes; local, regional or global political, social or eco-
nomic instability; and currency and interest rate and price fluctuations.
Similar to credit risk, the Funds may be exposed to counterparty risk, or the
risk that an entity with which the Funds have unsettled or open transac-
tions may default. Financial assets, which potentially expose the Funds to
credit and counterparty risks, consist principally of investments and cash
due from counterparties. The extent of the Funds’ exposure to credit and
counterparty risks with respect to these financial assets is approximated by
their value recorded in the Funds’ Statements of Assets and Liabilities.
Fundamental Growth Principal Protected invests a significant portion of its
assets in securities in the information technology sector. Please see the
Schedule of Investments for these securities. Changes in economic condi-
tions affecting the information technology sector would have a greater
impact on the Fund, and could affect the value, income and/or liquidity
of positions in such securities.
Global Growth invests from time to time a substantial amount of its assets
in issuers located in a single country or a limited number of countries.
Please see the Schedule of Investments for concentrations in specific
countries.
| As of August 31, 2009, Global Growth had the following industry | |
| classifications: | |
| Percent of | |
| Long-Term | |
| Industry | Investments |
| Commercial Banks | 10% |
| Oil, Gas & Consumable Fuels | 9 |
| Pharmaceuticals | 7 |
| Metals & Mining | 6 |
| Insurance | 5 |
| Other* | 63 |
| * All other industries held were each less than 5% of long-term investments. | |
ANNUAL REPORT AUGUST 31, 2009 35
| Notes to Financial Statements (continued) | ||||
| 8. Capital Share Transactions: | ||||
| Transactions in shares for each class were as follows: | ||||
| Year Ended | Year Ended | |||
| August 31, 2009 | August 31, 2008 | |||
| Fundamental Growth Principal Protected | Shares | Amount | Shares | Amount |
| Institutional | ||||
| Shares issued to shareholders in reinvestment of distributions | 10,568 | $ 87,607 | 35,237 | $ 256,357 |
| Shares redeemed | (64,122) | (548,624) | (125,512) | (1,162,084) |
| Net decrease | (53,554) | $ (461,017) | (90,275) | $ (905,727) |
| Investor A | ||||
| Automatic conversion of shares | 210,138 | $ 1,715,322 | — | — |
| Shares issued to shareholders in reinvestment of distributions | 13,398 | 110,269 | 27,308 | $ 288,924 |
| Shares redeemed | (125,612) | (1,050,866) | (102,006) | (1,048,030) |
| Net increase (decrease) | 97,924 | $ 774,725 | (74,698) | $ (759,106) |
| Investor B | ||||
| Shares issued to shareholders in reinvestment of distributions | 119,747 | $ 955,581 | 258,348 | $ 2,673,897 |
| Shares redeemed and automatic conversion of shares | (1,227,315) | (9,928,301) | (963,784) | (9,572,751) |
| Net decrease | (1,107,568) | $ (8,972,720) | (705,436) | $ (6,898,854) |
| Investor C | ||||
| Shares issued to shareholders in reinvestment of distributions | 90,350 | $ 722,803 | 186,552 | $ 1,936,406 |
| Shares redeemed | (625,607) | (5,132,971) | (617,522) | (6,190,589) |
| Net decrease | (535,257) | $ (4,410,168) | (430,970) | $ (4,254,183) |
36 ANNUAL REPORT AUGUST 31, 2009
| Notes to Financial Statements (continued) | ||||
| Year Ended | Year Ended | |||
| August 31, 2009 | August 31, 2008 | |||
| Global Growth | Shares | Amount | Shares | Amount |
| Institutional | ||||
| Shares sold | 1,814,180 | $ 20,139,060 | 8,160,187 | $148,504,831 |
| Shares issued to shareholders in reinvestment of dividends | 87,187 | 875,721 | 95,172 | 1,809,694 |
| 1,901,367 | 21,014,781 | 8,255,359 | 150,314,525 | |
| Shares redeemed | (9,772,949) | (103,436,943) | (11,668,964) | (202,340,763) |
| Net decrease | (7,871,582) | $ (82,422,162) | (3,413,605) | $ (52,026,238) |
| Investor A | ||||
| Shares sold and automatic conversion of shares | 2,825,036 | $ 31,296,688 | 6,854,300 | $120,596,124 |
| Shares issued to shareholders in reinvestment of dividends | 108,753 | 1,080,631 | 69,508 | 1,306,495 |
| 2,933,789 | 32,377,319 | 6,923,808 | 121,902,619 | |
| Shares redeemed | (5,423,403) | (58,780,082) | (4,272,054) | (73,273,053) |
| Net increase (decrease) | (2,489,614) | $ (26,402,763) | 2,651,754 | $ 48,629,566 |
| Investor B | ||||
| Shares sold | 114,887 | $ 1,189,300 | 559,983 | $ 9,525,765 |
| Shares redeemed and automatic conversion of shares | (1,107,637) | (11,468,610) | (1,685,782) | (27,749,764) |
| Net decrease | (992,750) | $ (10,279,310) | (1,125,799) | $ (18,223,999) |
| Investor C | ||||
| Shares sold | 791,120 | $ 8,083,252 | 2,840,215 | $ 48,484,914 |
| Shares redeemed | (1,850,288) | (18,960,971) | (1,115,071) | (18,116,556) |
| Net increase (decrease) | (1,059,168) | $ (10,877,719) | 1,725,144 | $ 30,368,358 |
| Class R | ||||
| Shares sold | 758,117 | $ 7,966,785 | 945,516 | $ 16,231,513 |
| Shares issued to shareholders in reinvestment of dividends | 6,333 | 61,239 | 1,304 | 23,918 |
| 764,450 | 8,028,024 | 946,820 | 16,255,431 | |
| Shares redeemed | (580,173) | (6,092,041) | (186,348) | (3,137,378) |
| Net increase | 184,277 | $ 1,935,983 | 760,472 | $ 13,118,053 |
| For Global Growth, there is a 2% redemption fee on shares redeemed or exchanged that have been held 30 days or less. The redemption fees are col- | ||||
| lected and retained by the Fund for the benefit of the remaining shareholders. The redemption fees are recorded as a credit to paid in capital. | ||||
ANNUAL REPORT AUGUST 31, 2009 37
| Notes to Financial Statements (concluded) | |||||||
| Period | |||||||
| Year Ended | December 1, 2007 to | Year Ended | |||||
| August 31, 2009 | August 31, 2008 | November 30, 2007 | |||||
| Focus Growth | Shares | Amount | Shares | Amount | Shares | Amount | |
| Institutional | |||||||
| Shares sold | 1,053,945 | $ 1,815,552 | 1,421,849 | $ 3,418,861 | 2,007,319 | $ 4,746,708 | |
| Shares redeemed | (1,698,424) | (2,909,275) | (1,932,537) | (4,585,953) | (2,986,244) | (6,901,292) | |
| Net decrease | (644,479) | $ (1,093,723) | (510,688) | $ (1,167,092) | (978,925) | $ (2,154,584) | |
| Investor A | |||||||
| Shares sold and automatic conversion of shares | 4,976,531 | $ 8,192,612 | 7,845,001 | $ 17,700,648 | 496,150 | $ 1,139,737 | |
| Shares redeemed | (2,983,300) | (4,943,569) | (1,490,326) | (3,478,960) | (1,047,955) | (2,245,242) | |
| Net increase (decrease) | 1,993,231 | $ 3,249,043 | 6,354,675 | $ 14,221,688 | (551,805) | $ (1,105,505) | |
| Investor B | |||||||
| Shares sold | 191,035 | $ 283,346 | 326,534 | $ 719,312 | 279,590 | $ 581,482 | |
| Shares redeemed and automatic conversion | |||||||
| of shares | (3,197,324) | (4,786,473) | (8,130,942) | (17,088,676) | (5,350,086) | (10,743,034) | |
| Net decrease | (3,006,289) | $ (4,503,127) | (7,804,408) | $(16,369,364) | (5,070,496) | $ (10,161,552) | |
| Investor C | |||||||
| Shares sold | 1,326,427 | $ 2,053,645 | 884,936 | $ 1,935,396 | 558,194 | $ 1,178,193 | |
| Shares redeemed | (2,260,865) | (3,410,529) | (1,249,252) | (2,735,049) | (2,679,670) | (5,380,917) | |
| Net decrease | (934,438) | $ (1,356,884) | (364,316) | $ (799,653) | (2,121,476) | $ (4,202,724) | |
| 9. Subsequent Events: | |||||||
| Fundamental Growth Principal Protected | |||||||
| On September 9, 2009, the Board of Directors approved a proposal to liquidate the Fund on or about November 13, 2009, at which time all of the | |||||||
| assets of the Fund will be liquidated completely, each investor’s shares will be redeemed at net asset value, and the Fund will then be terminated. | |||||||
| Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through October 27, 2009, the date | |||||||
| the financial statements were issued. | |||||||
38 ANNUAL REPORT AUGUST 31, 2009
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of
BlackRock Principal Protected Trust and the Shareholders
and Board of Directors of BlackRock Global Growth Fund,
Inc. and BlackRock Focus Growth Fund, Inc. (collectively,
the “Funds”):
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of BlackRock Fundamental Growth
Principal Protected Fund, one of the series constituting BlackRock Principal
Protected Trust and BlackRock Global Growth Fund, Inc. as of August 31,
2009, and the related statements 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. We have also audited the accompanying state-
ment of assets and liabilities, of BlackRock Focus Growth Fund, Inc. as
of August 31, 2009, and the related statement of operations for the year
then ended, the statements of changes in net assets for the year then
ended, the period December 1, 2007 to August 31, 2008, and the year
ended November 30, 2007, and the financial highlights for the respective
periods presented. These financial statements and financial highlights are
the responsibility of the Funds’ management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits. The financial highlights of the BlackRock Fundamental Growth
Principal Protected Fund and BlackRock Global Growth Fund, Inc. for each
of the two year in the period ended August 31, 2005 were audited by
other auditors whose reports, dated October 14, 2005, expressed unqual-
ified opinions on those financial highlights.
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 assur-
ance about whether the financial statements and financial highlights are
free of material misstatement. The Funds are not required to have, nor
were we engaged to perform, an audit of their internal controls over finan-
cial 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 Funds’ 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 disclo-
sures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluat-
ing the overall financial statement presentation. Our procedures included
confirmation of securities owned as of July 31, 2009, by correspondence
with the custodians 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
BlackRock Fundamental Growth Principal Protected Fund of BlackRock
Principal Protected Trust and BlackRock Global Growth Fund, Inc. as of
August 31, 2009, the results of their operations for the year then ended,
the changes in their 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. Additionally, in our opinion,
the financial statements and financial highlights referred to above present
fairly, in all material respects, the financial position of BlackRock Focus
Growth Fund, Inc. as of August 31, 2009, the results of it operations for
the year then ended, the changes in its net assets for the year ended
August 31, 2009, the period December 1, 2007 to August 31, 2008, and
the year ended November 30, 2007, and the financial highlights for the
respective periods presented, in conformity with accounting principles
generally accepted in the United States of America.
As discussed in Note 9 to the financial statements, on September 9,
2009 the Board of Directors of the BlackRock Principal Protected Trust
approved a proposal to liquidate the BlackRock Fundamental Growth
Principal Protected Fund on or about November 13, 2009.
Deloitte & Touche, LLP
Princeton, New Jersey
October 27, 2009
| Important Tax Information (Unaudited) | |||
| The following information is provided with respect to the distributions paid during the fiscal year ended August 31, 2009: | |||
| Fundamental Growth | |||
| Payable Date | Principal Protected | Global Growth | |
| Qualified Dividend Income for Individuals† | 12/12/2008 | — | 100.00% |
| Dividends Qualifying for the Dividend Received Deduction for Corporations† | 12/12/2008 | — | 100.00% |
| Long-Term Capital Gain Per Share | 12/12/2008 | $0.344043 | — |
| † Expressed as a percentage of the ordinary income distributions | |||
ANNUAL REPORT AUGUST 31, 2009 39
Portfolio Information Master Focus Growth LLC
| As of August 31, 2009 | |
| Percent of | |
| Long-Term | |
| Ten Largest Holdings | Investments |
| Apple, Inc. | 6% |
| Google, Inc., Class A | 5 |
| The Coca-Cola Co. | 4 |
| QUALCOMM, Inc. | 4 |
| Danaher Corp. | 4 |
| Microsoft Corp. | 4 |
| Celgene Corp. | 4 |
| Wal-Mart Stores, Inc. | 4 |
| Cummins, Inc. | 4 |
| UnitedHealth Group, Inc. | 3 |
| Percent of | |
| Long-Term | |
| Industry Representation | Investments |
| Biotechnology | 9% |
| Machinery | 8 |
| Computers & Peripherals | 8 |
| Software | 8 |
| Communications Equipment | 8 |
| Semiconductors & Semiconductor Equipment | 6 |
| Pharmaceuticals | 5 |
| Internet Software & Services | 5 |
| Beverages | 4 |
| Oil, Gas & Consumable Fuels | 4 |
| Food & Staples Retailing | 4 |
| Health Care Providers & Services | 4 |
| Airlines | 3 |
| Metals & Mining | 3 |
| Multiline Retail | 3 |
| Media | 3 |
| Personal Products | 3 |
| Insurance | 3 |
| Internet & Catalog Retail | 2 |
| Health Care Equipment & Supplies | 2 |
| Specialty Retail | 2 |
| Diversified Financial Services | 2 |
| Energy Equipment & Services | 1 |
| For Master LLC compliance purposes, the Master LLC’s industry classifications refer | |
| to any one or more of the industry sub-classifications used by one or more widely | |
| recognized market indexes, and/or as defined by Master LLC management. This | |
| definition may not apply for purposes of this report, which may combine industry | |
| sub-classifications for reporting ease. | |
40 ANNUAL REPORT AUGUST 31, 2009
Schedule of Investments August 31, 2009 Master Focus Growth LLC
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Airlines — 3.1% | ||
| Delta Air Lines, Inc. (a) | 216,700 | $ 1,564,574 |
| Beverages — 4.4% | ||
| The Coca-Cola Co. | 44,500 | 2,170,265 |
| Biotechnology — 8.5% | ||
| Amgen, Inc. (a) | 22,300 | 1,332,202 |
| Celgene Corp. (a) | 35,600 | 1,857,252 |
| Genzyme Corp. (a) | 18,800 | 1,047,348 |
| 4,236,802 | ||
| Communications Equipment — 7.5% | ||
| Cisco Systems, Inc. (a) | 73,250 | 1,582,200 |
| QUALCOMM, Inc. | 46,550 | 2,160,851 |
| 3,743,051 | ||
| Computers & Peripherals — 7.8% | ||
| Apple, Inc. (a) | 18,300 | 3,078,243 |
| Seagate Technology | 56,700 | 785,295 |
| 3,863,538 | ||
| Diversified Financial Services — 1.9% | ||
| CME Group, Inc. | 3,250 | 945,880 |
| Energy Equipment & Services — 1.4% | ||
| Transocean Ltd. (a) | 9,350 | 709,104 |
| Food & Staples Retailing — 3.6% | ||
| Wal-Mart Stores, Inc. | 35,500 | 1,805,885 |
| Health Care Equipment & Supplies — 2.2% | ||
| Boston Scientific Corp. (a) | 93,450 | 1,098,037 |
| Health Care Providers & Services — 3.5% | ||
| UnitedHealth Group, Inc. | 59,800 | 1,674,400 |
| Insurance — 2.6% | ||
| MetLife, Inc. | 34,000 | 1,283,840 |
| Internet & Catalog Retail — 2.4% | ||
| Amazon.com, Inc. (a) | 14,650 | 1,189,433 |
| Internet Software & Services — 4.9% | ||
| Google, Inc., Class A (a) | 5,300 | 2,446,851 |
| Machinery — 7.9% | ||
| Cummins, Inc. | 39,250 | 1,778,810 |
| Danaher Corp. | 35,300 | 2,143,063 |
| 3,921,873 | ||
| Media — 2.8% | ||
| CBS Corp., Class B | 135,300 | 1,400,355 |
| Metals & Mining — 3.1% | ||
| Agnico-Eagle Mines Ltd. | 13,650 | 783,510 |
| Freeport-McMoRan Copper & Gold, Inc., Class B | 12,050 | 758,909 |
| 1,542,419 | ||
| Multiline Retail — 3.0% | ||
| JCPenney Co., Inc. | 49,050 | 1,473,462 |
| Oil, Gas & Consumable Fuels — 4.1% | ||
| PetroHawk Energy Corp. (a) | 49,800 | 1,072,194 |
| Petroleo Brasileiro SA — ADR | 24,400 | 967,216 |
| 2,039,410 | ||
| Personal Products — 2.7% | ||
| Avon Products, Inc. | 42,800 | 1,364,036 |
| Pharmaceuticals — 5.0% | ||
| Abbott Laboratories | 24,100 | 1,090,043 |
| Teva Pharmaceutical Industries Ltd. — ADR | 27,100 | 1,395,650 |
| 2,485,693 |
| Common Stocks | Shares | Value |
| Semiconductors & Semiconductor Equipment — 5.5% | ||
| Lam Research Corp. (a) | 46,150 $ | 1,416,805 |
| PMC-Sierra, Inc. (a) | 148,000 | 1,343,840 |
| 2,760,645 | ||
| Software — 7.8% | ||
| Check Point Software Technologies Ltd. (a) | 35,400 | 986,598 |
| Microsoft Corp. | 81,000 | 1,996,650 |
| Salesforce.com, Inc. (a) | 17,350 | 899,945 |
| 3,883,193 | ||
| Specialty Retail — 2.0% | ||
| Home Depot, Inc. | 37,000 | 1,009,730 |
| Total Long-Term Investments | ||
| (Cost — $43,784,997) — 97.7% | 48,612,476 | |
| Short-Term Securities | ||
| BlackRock Liquidity Funds, TempFund, 0.22% (b)(c) | 1,155,896 | 1,155,896 |
| Total Short-Term Securities | ||
| (Cost — $1,155,896) — 2.3% | 1,155,896 | |
| Total Investments (Cost — $44,940,893*) — 100.0% | 49,768,372 | |
| Other Assets Less Liabilities — 0.0% | 14,097 | |
| Net Assets — 100.0% | $ 49,782,469 | |
| * The cost and unrealized appreciation (depreciation) of investments as of August 31, | ||
| 2009, as computed for federal income tax purposes, were as follows: | ||
| Aggregate cost | $ 45,087,201 | |
| Gross unrealized appreciation | $ 6,285,596 | |
| Gross unrealized depreciation | (1,604,425) | |
| Net unrealized appreciation | $ 4,681,171 | |
| (a) Non-income producing security. | ||
| (b) Investments in companies considered to be an affiliate of the Master LLC, for pur- | ||
| poses of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: | ||
| Net | ||
| Affiliate | Activity | Income |
| BlackRock Liquidity Funds, TempFund | 1,115,896 | $ 1,439 |
| BlackRock Liquidity Series, LLC | ||
| Cash Sweep Series | $(1,532,501) | $ 8,852 |
| (c) Represents the current yield as of report date. | ||
| • For Master LLC compliance purposes, the Master LLC’s industry classifications refer | ||
| to any one or more of the industry sub-classifications used by one or more widely | ||
| recognized market indexes, and/or as defined by portfolio management. This | ||
| definition may not apply for purposes of this report, which may combine industry | ||
| sub-classification for reporting ease. | ||
| •PortfolioAbbreviations: | ||
| ADR American Depositary Receipt | ||
See Notes to Financial Statements.
ANNUAL REPORT AUGUST 31, 2009 41
Schedule of Investments (concluded) Master Focus Growth LLC
| • | Financial Accounting Standards Board Statement of Financial Accounting Standards | |
| No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes | ||
| a framework for measuring fair values and requires additional disclosures about the | ||
| use of fair value measurements. Various inputs are used in determining the fair | ||
| value of investments, which are as follows: | ||
| • Level 1 — price quotations in active markets/exchanges for identical securities | ||
| • 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 identi- | ||
| cal 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 | ||
| Master LLC’s own assumptions used in determining the fair value of investments) | ||
| The inputs or methodology used for valuing securities are not necessarily an indica- | ||
| tion of the risk associated with investing in those securities. For information about | ||
| the Master LLC’s policy regarding valuation of investments and other significant | ||
| accounting policies, please refer to Note 1 of the Notes to Financial Statements. | ||
| The following table summarizes the inputs used as of August 31, 2009 in determin- | ||
| ing the fair valuation of the Master LLC’s investments: | ||
| Investments in | ||
| Valuation Inputs | Securities | |
| Assets | ||
| Level 1: | ||
| Long-Term Investments1 | $ 48,612,476 | |
| Short-Term Securities | 1,155,896 | |
| Total Level 1 | 49,768,372 | |
| Level 2 | — | |
| Level 3 | — | |
| Total | $ 49,768,372 | |
| 1 See above Schedule of Investments for values in each industry. | ||
See Notes to Financial Statements.
42 ANNUAL REPORT AUGUST 31, 2009
| Statement of Assets and Liabilities | Master Focus Growth LLC |
| August 31, 2009 | |
| Assets | |
| Investments at value — unaffiliated (cost — $43,784,997) | $ 48,612,476 |
| Investments at value — affiliated (cost — $1,155,896) | 1,155,896 |
| Investments sold receivable | 187,070 |
| Dividends receivable | 48,730 |
| Prepaid expenses | 1,176 |
| Other assets | 861 |
| Total assets | 50,006,209 |
| Liabilities | |
| Investments purchased payable | 86,375 |
| Withdrawals payable to the investor | 78,376 |
| Investment advisory fees payable | 16,913 |
| Officer payable | 3,380 |
| Other affiliates payable | 154 |
| Other accrued expenses payable | 38,542 |
| Total liabilities | 223,740 |
| Net Assets | $ 49,782,469 |
| Net Assets Consist of | |
| Investor’s capital | $ 44,954,990 |
| Net unrealized appreciation/depreciation | 4,827,479 |
| Net Assets | $ 49,782,469 |
See Notes to Financial Statements.
ANNUAL REPORT AUGUST 31, 2009 43
| Statement of Operations | Master Focus Growth LLC |
| Year Ended August 31, 2009 | |
| Investment Income | |
| Dividends | $ 423,262 |
| Foreign taxes withheld | (3,402) |
| Income — affiliated | 10,410 |
| Total income | 430,270 |
| Expenses | |
| Investment advisory | 270,498 |
| Accounting services | 71,643 |
| Professional | 54,001 |
| Custodian | 28,646 |
| Officer and Directors | 17,837 |
| Printing | 3,470 |
| Miscellaneous | 9,077 |
| Total expenses | 455,172 |
| Less fees waived by advisor | (90,397) |
| Less fees paid indirectly | (960) |
| Total expenses after fees waived and paid indirectly | 363,815 |
| Net investment income | 66,455 |
| Realized and Unrealized Gain (Loss) | |
| Net realized gain (loss) from: | |
| Investments | (20,952,279) |
| Litigation proceeds | 6,981,952 |
| Options written | 644,273 |
| (13,326,054) | |
| Net change in unrealized appreciation/depreciation on: | |
| Investments | 2,230,417 |
| Options written | 71,268 |
| 2,301,685 | |
| Total realized and unrealized loss | (11,024,369) |
| Net Decrease in Net Assets Resulting from Operations | $ (10,957,914) |
See Notes to Financial Statements.
44 ANNUAL REPORT AUGUST 31, 2009
| Statements of Changes in Net Assets | Master Focus Growth LLC | |||||||
| Period | ||||||||
| December 1, | ||||||||
| Year Ended | 2007 to | Year Ended | ||||||
| August 31, | August 31, | November 30, | ||||||
| Increase (Decrease) in Net Assets: | 2009 | 2008 | 2007 | |||||
| Operations | ||||||||
| Net investment income (loss) | $ 66,455 | $ (33,930) | $ (146,539) | |||||
| Net realized gain (loss) | (13,326,054) | 4,024,628 | 11,849,641 | |||||
| Net change in unrealized appreciation/depreciation | 2,301,685 | (8,896,208) | 5,330,432 | |||||
| Net increase (decrease) in net assets resulting from operations | (10,957,914) | (4,905,510) | 17,033,534 | |||||
| Capital Transactions | ||||||||
| Proceeds from contributions | 12,345,155 | 19,435,098 | 7,647,533 | |||||
| Fair value of withdrawals | (16,822,060) | (24,398,685) | (26,555,437) | |||||
| Net decrease in net assets derived from capital transactions | (4,476,905) | (4,963,587) | (18,907,904) | |||||
| Net Assets | ||||||||
| Total decrease in net assets | (15,434,819) | (9,869,097) | (1,874,370) | |||||
| Beginning of period | 65,217,288 | 75,086,385 | 76,960,755 | |||||
| End of period | $ 49,782,469 | $ 65,217,288 | $ 75,086,385 | |||||
| Financial Highlights | Master Focus Growth LLC | |||||||
| Period | ||||||||
| December 1, | ||||||||
| Year Ended | 2007 to | |||||||
| August 31, | August 31, | Year Ended November 30, | ||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||
| Total Investment Return | ||||||||
| Total investment return | (15.36)%1 | (6.55)%2 | 26.17% | 11.40% | 11.30% | 6.07% | ||
| Ratios to Average Net Assets | ||||||||
| Total expenses | 1.01% | 0.87%3 | 0.82% | 0.79% | 0.75% | 0.73% | ||
| Total expenses after fees waived and paid indirectly | 0.81% | 0.67%3 | 0.62% | 0.59% | 0.63% | 0.71% | ||
| Net investment income (loss) | 0.15% | (0.07)%3 | (0.20)% | 0.30% | 0.07% | 0.17% | ||
| Supplemental Data | ||||||||
| Net assets, end of period (000) | $ 49,782 $ | 65,217 $ | 75,086 | $ 76,961 | $ 99,197 | $ 143,964 | ||
| Portfolio turnover | 185% | 105% | 145% | 117% | 143% | 183% | ||
| 1 Includes proceeds received from a settlement of litigation which impacted the Master LLC’s total return. Not including these proceeds the Master LLC’s total return would | ||||||||
| have been (27.33)% | ||||||||
| 2 Aggregate total investment return. | ||||||||
| 3 Annualized. | ||||||||
| See Notes to Financial Statements. | ||||||||
| ANNUAL REPORT | AUGUST 31, 2009 | 45 | ||||||
Notes to Financial Statements Master Focus Growth LLC
1. Organization and Significant Accounting Policies:
Master Focus Growth LLC (the “Master LLC”) is registered under the
Investment Company Act of 1940 (the “1940 Act”), as amended, and
is organized as a Delaware limited liability corporation. The Limited
Liability Agreement permits the Board of Directors (the “Board”) to issue
nontransferable interests in the Master LLC, subject to certain limitations.
The Master LLC’s financial statements are prepared in conformity with
accounting principles generally accepted in the United States of America,
which may require the use of management accruals and estimates. Actual
results may differ from these estimates.
The following is a summary of significant accounting policies followed
by the Master LLC.
Valuation of Investments: Equity investments traded on a recognized secu-
rities exchange or the NASDAQ Global Market System 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
price. If no bid 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. Short-term securities with maturities less than 60 days may
be valued at amortized cost, which approximates fair value. Investments in
open-end investment companies are valued at their net asset value each
business day. The Master LLC values its investments in Cash Sweep Series
of BlackRock Liquidity Series, LLC at fair value, which is ordinarily based
upon its pro rata ownership in the net assets of the underlying fund.
Exchange-traded options are valued at the mean between the last bid
and ask prices at the close of the options market in which the options
trade. An exchange-traded option for which there is no mean price is
valued at the last 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 option. Over-the-counter (“OTC”) options are valued by an
independent pricing service using a mathematical model which incorpo-
rates a number of market data factors.
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, the investment will be valued by
a method approved by the Board as reflecting fair value (“Fair Value
Assets”). When determining the price for Fair Value Assets, the investment
advisor and/or sub-advisor seeks to determine the price that the Master
LLC 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 Master LLC either delivers collateral or segregates
assets in connection with certain investments (e.g., options written), the
Master LLC will, consistent with SEC and/or certain interpretive letters
issued by the SEC, segregate collateral or designate on its books and
records cash or other 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, the Master LLC may
also be required to deliver or deposit securities as collateral for certain
investments (e.g., options written). As part of these agreements, when
the value of these investments achieves a previously agreed upon value
(minimum transfer amount), the Master LLC may be required to deliver
and/or receive additional collateral.
Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses
on security 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 subse-
quently recorded when the Funds have determined the ex-dividend date.
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.
Income Taxes: The Master LLC is disregarded as an entity separate from
its owner for tax purposes. As such, the owner of the Master LLC is treated
as the owner of the net assets, income, expenses and realized and unreal-
ized gains and losses of the Master LLC. Therefore, no federal tax provision
is required. It is intended that the Master LLC’s assets will be managed so
the owner of the Master LLC can satisfy the requirements of Subchapter
M of the Internal Revenue Code. Under the applicable foreign tax laws, a
withholding tax may be imposed on interest, dividends and capital gains
at various rates.
The Master LLC is disregarded for tax purposes, therefore it is not required
to file income tax returns.
Recent Accounting Pronouncement: In June 2009, Statement of Finan-
cial Accounting Standards No. 166, “Accounting for Transfers of Financial
Assets — an amendment of FASB Statement No. 140” (“FAS 166”), was
issued. FAS 166 is intended to improve the relevance, representational
faithfulness and comparability of the information that a reporting entity
provides in its financial statements about a transfer of financial assets;
the effects of a transfer on its financial position, financial performance,
46 ANNUAL REPORT AUGUST 31, 2009
Notes to Financial Statements (continued) Master Focus Growth LLC
and cash flows; and a transferor’s continuing involvement, if any, in
transferred financial assets. FAS 166 is effective for financial statements
issued for fiscal years and interim periods beginning after November 15,
2009. Earlier application is prohibited. The recognition and measurement
provisions of FAS 166 must be applied to transfers occurring on or after
the effective date. Additionally, the disclosure provisions of FAS 166
should be applied to transfers that occurred both before and after the
effective date of FAS 166. The impact of FAS 166 on the Fund’s financial
statement disclosures, if any, is currently being assessed.
Other: Expenses directly related to the Master LLC are charged to the
Master LLC. Other operating expenses shared by several funds are pro-
rated among those funds on the basis of relative net assets or other
appropriate methods.
2. Derivative Financial Instruments:
The Master LLC may engage in various portfolio investment strategies
both to increase the return of the Master LLC and to economically hedge,
or protect, its exposure to equity risk. Losses may arise if the value of
the contract decreases due to an unfavorable change in the price of the
underlying security or if the counterparty does not perform under the con-
tract. The Master LLC may mitigate counterparty risk through master net-
ting agreements included within an International Swap and Derivatives
Association, Inc. (“ISDA”) Master Agreement between the Master LLC
and its counterparties. The ISDA Master Agreement allows the Master
LLC to offset with its counterparty certain derivative financial instruments’
payables and/or receivables with collateral held. The amount of collat-
eral moved to/from applicable counterparties is based upon minimum
transfer amounts of up to $500,000. To the extent amounts due to the
Master LLC from its counterparties are not fully collateralized contractually
or otherwise, the Master LLC bears the risk of loss from counterparty non-
performance. See Note 1 “Segregation and Collateralization” for informa-
tion with respect to collateral practices.
The Master LLC’s maximum risk of loss from counterparty credit risk on over-
the counter derivatives is generally the aggregate unrealized gain in excess
of any collateral pledged by the counterparty to the Master LLC. For over-
the-counter purchased options, the Master LLC bears the risk of loss in the
amount of the premiums paid and change in market value of the options
should the counterparty not perform under the contracts. Options written by
the Master LLC do not give rise to counterparty credit risk, as written options
obligate the Master LLC to perform and not the counterparty. Certain ISDA
Master Agreements allow counterparties to over-the-counter derivatives to
terminate derivative contracts prior to maturity in the event a Master LLC’s
net assets decline by a stated percentage or a Master LLC fails to meet the
terms of its ISDA Master Agreements, which would cause the Master LLC
to accelerate payment of any net liability owed to the counterparty. Counter-
party risk related to exchange-traded financial futures contracts and options
is minimal because of the protection against defaults provided by the
exchange on which they trade.
Options: The Master LLC may purchase and write call and put options
to increase or decrease its exposure to underlying instruments. A call
option gives the purchaser of the option the right (but not the obligation)
to buy, and obligates the seller to sell (when the option is exercised), the
underlying instrument at the exercise price at any time or at a specified
time during the option period. A put option gives the holder the right to
sell and obligates the writer to buy the underlying instrument at the exer-
cise price at any time or at a specified time during the option period.
When the Master LLC purchases (writes) an option, an amount equal to
the premium paid (received) by the Master LLC is reflected as an asset
(liability) and an equivalent liability (asset). The amount of the asset (lia-
bility) is subsequently marked-to-market to reflect the current market
value of the option purchased (written). When an instrument is purchased
or sold through an exercise of an option, the related premium paid (or
received) is added to (or deducted from) the basis of the instrument
acquired or deducted from (or added to) the proceeds of the instrument
sold. When an option expires (or the Master LLC enters into a closing
transaction), the Master LLC realizes a gain or loss on the option to the
extent of the premiums received or paid (or gain or loss to the extent the
cost of the closing transaction exceeds the premium received or paid).
When the Master LLC writes a call option, such option is “covered” mean-
ing that the Master LLC holds the underlying instrument subject to being
called by the option counterparty, or cash in an amount sufficient to cover
the obligation. When the Master LLC writes a put option, such option is
covered by cash in an amount sufficient to cover the obligation.
In purchasing and writing options, the Master LLC bears the risk of an
unfavorable change in the value of the underlying instrument or the risk
that the Master LLC may not be able to enter into a closing transaction
due to an illiquid market. Exercise of a written option could result in the
Master LLC purchasing an instrument at a price different from the current
market value. The Master LLC may execute transactions in both listed
and over-the-counter options. Listed options involve minimal counterparty
risk since listed options are guaranteed against default by the exchange
on which they trade.
| Master Focus Growth LLC | |
| Derivatives Not Accounted for as Hedging Instruments under Financial | |
| Accounting Standards Board Statement of Financial Accounting Standards | |
| No. 133, “Accounting for Derivative Instruments and Hedging Activities” | |
| The Effect of Derivative Instruments on the Statement of Operations | |
| Year Ended August 31, 2009 | |
| Net Realized Gain (Loss) From Derivatives Recognized in Income | |
| Option | |
| Contracts | |
| Equity contracts | $ 657,288 |
| Net Change in Unrealized Appreciation/Depreciation on Derivatives | |
| Option | |
| Contracts | |
| Equity contracts | $ 71,268 |
ANNUAL REPORT AUGUST 31, 2009 47
Notes to Financial Statements (continued) Master Focus Growth LLC
3. Investment Advisory Agreement and Transactions
with Affiliates:
The PNC Financial Services Group, Inc. (“PNC”) and Bank of America
Corporation (“BAC”) are the largest stockholders of BlackRock, Inc.
(“BlackRock”). BAC became a stockholder of BlackRock following its
acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1,
2009. Prior to that date, both PNC and Merrill Lynch were considered
affiliates of the Master LLC under the 1940 Act. Subsequent to the
acquisition, PNC remains an affiliate, but due to the restructuring of
Merrill Lynch’s ownership interest of BlackRock, BAC is not deemed
to be an affiliate under the 1940 Act.
The Master LLC has entered into an Investment Advisory Agreement with
BlackRock Advisors, LLC (the “Manager”), an indirect, wholly owned subsidiary
of BlackRock, to provide investment advisory and administration services.
The Manager is responsible for the management of the Master LLC’s
portfolio and provides the necessary personnel, facilities, equipment
and certain other services necessary to the operations of the Master
LLC. For such services, the Master LLC pays a monthly fee at an annual
rate of 0.60% of the average daily value of the Master LLC’s net assets.
The Manager has agreed to contractually waive the administration fees
of BlackRock Focus Growth Fund, Inc. (the “Fund”) and the investment
advisory fees of the Master LLC, as necessary to reduce the sum of the
administration fee and investment advisory fee (as a percentage of the
average daily net assets of the Master LLC) from 0.85% to 0.65%, and
also to waive the fees and/or reimburse direct expenses of the Fund
and/or Master LLC to the extent necessary to limit the ordinary annual
operating expenses of the Fund (after accounting for the waiver described
above), excluding class-specific distribution and account maintenance
fees, to 2.00% of the average daily net assets of the Fund for the annual
period, so long as the sum of the fees waived and the expenses reim-
bursed by the Manager do not exceed the amount of fees actually due to
the Manager under both the Master LLC’s investment advisory Agreement
and the Fund’s administration agreement. This amount is shown as fees
waived by advisor in the Statement of Operations.
The Manager has entered into a separate sub-advisory agreement with
BlackRock Investment Management, LLC, an affiliate of the Manager,
under which the Manager pays the sub-advisor, for services it provides, a
monthly fee that is a percentage of the investment advisory fee paid by
the Master LLC to the Manager.
For the year ended August 31, 2009, the Master LLC reimbursed the
Manager $909 for certain accounting services, which is included in
accounting services in the Statement of Operations
In addition, Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”),
a wholly owned subsidiary of Merrill Lynch, or its affiliates received $2,999
in commissions on the execution of portfolio security transactions for the
Master LLC (for the period September 1, 2008 to December 31, 2008,
after which time MLPF&S was no longer considered an affiliate).
Certain officers and/or directors of the Master LLC are officers and/or direc-
tors of BlackRock or its affiliates. The Master LLC reimburses the Manager
for compensation paid to the Master LLC’s Chief Compliance Officer.
4. Investments:
Purchases and sales of investments, excluding short-term securities, for
the year ended August 31, 2009 were $86,635,143 and $83,785,103,
respectively.
Transactions in call options written for the year ended August 31, 2009
were as follows:
| Premiums | ||
| Contracts | Received | |
| Outstanding call options written, beginning | ||
| of year | 1,807 | $ 335,744 |
| Options written | 2,898 | 437,359 |
| Options exercised | (305) | (43,252) |
| Options expired | (1,200) | (232,420) |
| Options closed | (3,200) | (497,431) |
| Outstanding call options written, end of year | — | — |
| Transactions in put options written for the year ended August 31, 2009 | ||
| were as follows: | ||
| Premiums | ||
| Contracts | Received | |
| Outstanding put options written, beginning | ||
| of year | — | — |
| Options written | 24 | $ 30,970 |
| Options closed | (24) | (30,970) |
| Outstanding put options written, end of year | — | — |
| The Master LLC received proceeds from a settlement of litigation where | ||
| the Master LLC was able to recover a portion of investment losses previ- | ||
| ously realized by the Master LLC. This amount is shown as litigation pro- | ||
| ceeds in the Statement of Operations. | ||
5. Short-Term Borrowings:
The Master LLC, 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 expires in November 2009. The Master LLC may
borrow under the credit agreement to fund shareholder redemptions and
for other lawful purposes other than for leverage. The Master LLC may bor-
row up to the maximum amount allowable under the Master LLC’s current
Prospectus and Statement of Additional Information, subject to various
other legal, regulatory or contractual limits. The Master LLC paid its pro
rata share of a 0.02% upfront fee on the aggregate commitment amount
based on its net assets as of October 31, 2008. The Master LLC pays a
commitment fee of 0.08% per annum based on the Master LLC’s pro rata
share of the unused portion of the credit agreement, which is included in
miscellaneous in the Statement of Operations. Amounts borrowed under
the credit agreement bear interest at a rate equal to the higher of the
(a) federal funds effective rate and (b) reserve adjusted one month
LIBOR, plus, in each case, the higher of (i) 1.50% and (ii) 50% of the
48 ANNUAL REPORT AUGUST 31, 2009
Notes to Financial Statements (concluded) Master Focus Growth LLC
CDX Index (as defined in the credit agreement) in effect from time to
time. The Master LLC did not borrow under the credit agreement during
the year ended August 31, 2009.
6. Market and Credit Risk:
In the normal course of business, the Master LLC 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
(credit risk). The value of securities held by the Master LLC may decline in
response to certain events, including those directly involving the issuers
whose securities are owned by the Master LLC; conditions affecting the
general economy; overall market changes; local, regional or global politi-
cal, social or economic instability; and currency and interest rate and
price fluctuations. Similar to credit risk, the Master LLC may be exposed
to counterparty risk, or the risk that an entity with which the Master LLC
has unsettled or open transactions may default. Financial assets, which
potentially expose the Master LLC to credit and counterparty risks, consist
principally of investments and cash due from counterparties. The extent
of the Master LLC’s exposure to credit and counterparty risks with respect
to these financial assets is approximated by their value recorded in the
Master LLC’s Statement of Assets and Liabilities.
7. Subsequent Events:
Management has evaluated the impact of all subsequent events on the
Master LLC through October 27, 2009, the date the financial statements
were issued, and has determined that there were no subsequent events
requiring adjustment or disclosure in the financial statements.
ANNUAL REPORT AUGUST 31, 2009 49
Master LLC Report of Independent Registered Public Accounting Firm
To the Investor and Board of Directors of Master Focus
Growth Fund LLC:
We have audited the accompanying statements of assets and liabilities,
including the schedule of investments, of Master Focus Growth LLC (the
“Master LLC”), as of August 31, 2009 and the related statements of oper-
ations for the year then ended, the period December 1, 2007 to August 31,
2008 and the year ended November 30, 2007, the statements of changes
in net assets for the year then ended, the period December 1, 2007 to
August 31, 2008 and the year ended November 30, 2007, and the finan-
cial highlights for the respective periods presented. These financial state-
ments and financial highlights are the responsibility of the Master LLC’s
management. Our responsibility is to express an opinion of 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 assur-
ance 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 finan-
cial reporting as a basis for designing audit procedures that are appropri-
ate 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 disclo-
sures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluat-
ing the overall financial statement presentation. Our procedures include
confirmation of the securities owned as of August 31, 2009, by correspon-
dence 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 Focus Growth LLC as of August 31, 2009, the results of its opera-
tions for the year then ended, the period December 1, 2007 to August 31,
2008 and the year ended November 30, 2007, and the financial high-
lights for the respective periods presented, in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche, LLP
Princeton, New Jersey
October 27, 2009
50 ANNUAL REPORT AUGUST 31, 2009
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements
The Board of Directors of Master Focus Growth LLC (the “Master LLC”),
the Board of Directors of BlackRock Global Growth Fund, Inc. (the “Global
Growth Fund”) and the Board of Trustees of BlackRock Fundamental Growth
Principal Protected Fund (the “Fundamental Growth Principal Protected
Fund”), a series of BlackRock Principal Protected Trust (the “Trust”), met
on May 5, 2009 and June 4 – 5, 2009 to consider the approval of the
funds’ investment advisory agreements (each, an “Advisory Agreement,”
and collectively, the “Advisory Agreements”) with BlackRock Advisors, LLC
(the “Manager”), each fund’s investment advisor. The Board of Directors of
the Master LLC, the Board of Directors of the Global Growth Fund and the
Board of Trustees of the Fundamental Growth Principal Protected Fund
also considered the approval of the sub-advisory agreements (each, a
“Sub-Advisory Agreement,” and collectively, the “Sub-Advisory Agreements”)
between the Manager and BlackRock Investment Management, LLC (the
“Sub-Advisor”) with respect to the funds. BlackRock Focus Growth Fund,
Inc. (the “Focus Growth Fund”) is a “feeder” fund that invests all of its
investable assets in the Master LLC. Accordingly, the Board of Directors
of the Focus Growth Fund also considered the approval of the Advisory
Agreement and the Sub-Advisory Agreement with respect to the Master LLC.
The Manager and the Sub-Advisor are referred to herein as “BlackRock.”
The Advisory Agreements and the Sub-Advisory Agreements are referred
to herein as the “Agreements.” The Global Growth Fund, the Fundamental
Growth Principal Protected Fund and the Trust are referred to herein as
the “Funds,” and each a “Fund.” For simplicity, the Board of Directors of
the Master LLC, the Board of Directors of the Focus Growth Fund and
the Board of Directors/Trustees of each Fund are referred to herein col-
lectively as the “Board,” and the members of which are referred to herein
as “Board Members.”
Activities and Composition of the Board
The Board consisted of fifteen individuals, twelve of whom were not “inter-
ested persons” of each Fund, the Focus Growth Fund or the Master LLC as
defined in the Investment Company Act of 1940, as amended (the “1940
Act”) (the “Independent Board Members”), at the time of the Board’s
approval of the Agreements. The Board Members are responsible for the
oversight of the operations of each Fund, the Focus Growth Fund or the
Master LLC, as pertinent, and perform the various duties imposed on the
directors of investment companies by the 1940 Act. The Independent
Board Members have retained independent legal counsel to assist them in
connection with their duties. The Chairman of the Board is an Independent
Board Member. The Board has established five standing committees: an
Audit Committee, a Governance and Nominating Committee, a Compliance
Committee, a Performance Oversight Committee and an Executive Com-
mittee, each of which is composed of Independent Board Members (except
for the Performance Oversight Committee and the Executive Committee,
which each have one interested Board Member) and is chaired by
Independent Board Members.
The Agreements
Pursuant to the 1940 Act, the Board is required to consider the continua-
tion of the Agreements on an annual basis. In connection with this process,
the Board assessed, among other things, the nature, scope and quality of
the services provided to each Fund, the Focus Growth Fund and the Master
LLC by the personnel of BlackRock and its affiliates, including investment
management, administrative and shareholder services, oversight of fund
accounting and custody, marketing services and assistance in meeting
applicable legal and regulatory requirements.
Throughout the year, the Board, acting directly and through its committees,
considers at each of its meetings factors that are relevant to its annual
consideration of the renewal of the Agreements, including the services
and support provided by BlackRock to each Fund, the Focus Growth Fund,
the Master LLC and their shareholders. Among the matters the Board con-
sidered were: (a) investment performance for one-, three- and five-year
periods, as applicable, against peer funds, and applicable benchmarks,
if any, as well as senior management and portfolio managers’ analysis
of the reasons for any out performance or underperformance against
its peers; (b) fees, including advisory, administration, if applicable, and
other amounts paid to BlackRock and its affiliates by each Fund, the
Focus Growth Fund and/or the Master LLC for services, such as transfer
agency, marketing and distribution, call center and fund accounting;
(c) the Funds, the Focus Growth Fund and/or the Master LLC operating
expenses; (d) the resources devoted to and compliance reports relating
to each Fund’s, the Focus Growth Fund’s and the Master LLC’s investment
objectives, policies and restrictions, (e) each Fund’s, the Focus Growth
Fund’s and the Master LLC’s compliance with each of their respective
Code of Ethics and compliance policies and procedures; (f) the nature,
cost and character of non-investment management services provided by
BlackRock and its affiliates; (g) BlackRock’s and other service providers’
internal controls; (h) BlackRock’s implementation of the proxy voting poli-
cies approved by the Board; (i) the use of brokerage commissions and
execution quality; (j) BlackRock’s implementation of each Fund’s, the
Focus Growth Fund’s and the Master LLC’s valuation and liquidity proce-
dures; and (k) periodic updates on BlackRock’s business.
Board Considerations in Approving the Agreements
The Approval Process: Prior to the May 5, 2009 meeting, the Board
requested and received materials specifically relating to the Agreements.
The Board is engaged in an ongoing process with BlackRock to continu-
ously review the nature and scope of the information provided to better
assist its deliberations. The materials provided in connection with the May
meeting included (a) information independently compiled and prepared
by Lipper, Inc. (“Lipper”) on each Fund’s and Focus Growth Fund’s fees
and expenses, and the investment performance of each Fund and the
Focus Growth Fund as compared with a peer group of funds as deter-
mined by Lipper (collectively, “Peers”); (b) information on the profitability
of the Agreements to BlackRock and a discussion of fall-out benefits to
BlackRock and its affiliates and significant shareholders; (c) a general
analysis provided by BlackRock concerning investment advisory fees
charged to other clients, such as institutional clients and closed-end
funds, under similar investment mandates, as well as the performance of
such other clients; (d) the impact of economies of scale; (e) a summary
of aggregate amounts paid by each Fund, the Focus Growth Fund and/or
the Master LLC to BlackRock; (f) sales and redemption data regarding
ANNUAL REPORT AUGUST 31, 2009 51
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)
each Fund’s and the Focus Growth Fund’s shares; and (g) an internal
comparison of management fees classified by Lipper, if applicable.
At an in-person meeting held on May 5, 2009, the Board reviewed
materials relating to its consideration of the Agreements. As a result of
the discussions that occurred during the May 5, 2009 meeting, the Board
presented BlackRock with questions and requests for additional informa-
tion and BlackRock responded to these requests with additional written
information in advance of the June 4 – 5, 2009 Board meeting.
At an in-person meeting held on June 4 – 5, 2009, the Board of Directors
of the Master LLC and the Board of Directors/Trustees of each Fund, includ-
ing the Independent Board Members, unanimously approved the continua-
tion of the Advisory Agreements between the Manager and each of (a) the
Master LLC and (b) each Fund, and the Sub-Advisory Agreements between
the Manager and the Sub-Advisor with respect to each of (a) the Master
LLC and (b) each Fund, each for a one-year term ending June 30, 2010.
The Board of Directors of the Focus Growth Fund, including the Independent
Board Members, also considered the continuation of the Agreements with
respect to the Master LLC and found the Agreements to be satisfactory.
The Board considered all factors it believed relevant with respect to each
Fund, the Focus Growth Fund and the Master LLC, as applicable, includ-
ing, among other factors: (a) the nature, extent and quality of the services
provided by BlackRock; (b) the investment performance of each Fund, the
Focus Growth Fund, the Master LLC and BlackRock portfolio management;
(c) the advisory fee and the cost of the services and profits to be realized
by BlackRock and certain affiliates from the relationship with each Fund,
the Focus Growth Fund and the Master LLC; (d) economies of scale; and
(e) other factors.
The Board also considered other matters it deemed important to the
approval process, such as payments made to BlackRock or its affiliates
relating to the distribution of Fund shares, services related to the valua-
tion and pricing of portfolio holdings of each Fund or the Master LLC, as
applicable, direct and indirect benefits to BlackRock and its affiliates and
significant shareholders from their relationship with each Fund, the Focus
Growth Fund and the Master LLC and advice from independent legal coun-
sel with respect to the review process and materials submitted for the
Board’s review. The Board noted the willingness of BlackRock personnel
to engage in open, candid discussions with the Board. The Board did not
identify any particular information as controlling, and each Board Member
may have attributed different weights to the various items considered.
A. Nature, Extent and Quality of the Services: The Board, including the
Independent Board Members, reviewed the nature, extent and quality
of services provided by BlackRock, including the investment advisory
services and the resulting performance of each Fund, the Focus Growth
Fund and the Master LLC. Throughout the year, the Board compared each
Fund’s and the Focus Growth Fund’s performance to the performance of
a comparable group of mutual funds, and the performance of at least one
relevant benchmark, if any. The Board met with BlackRock’s senior man-
agement personnel responsible for investment operations, including the
senior investment officers. The Board also reviewed the materials provided
by each Fund’s or the Master LLC’s portfolio management team discussing
each Fund’s or the Master LLC’s performance and each Fund’s or the
Master LLC’s investment objective, strategies and outlook.
The Board considered, among other factors, the number, education and
experience of BlackRock’s investment personnel generally and each Fund’s
or the Master LLC’s portfolio management team, investments by portfolio
managers in the funds they manage, BlackRock’s portfolio trading capabil-
ities, BlackRock’s use of technology, BlackRock’s commitment to compliance
and BlackRock’s approach to training and retaining portfolio managers
and other research, advisory and management personnel. The Board also
reviewed a general description of BlackRock’s compensation structure with
respect to each Fund’s or the Master LLC’s portfolio management team
and BlackRock’s ability to attract and retain high-quality talent.
In addition to advisory services, the Board considered the quality of the
administrative and non-investment advisory services provided to each
Fund, the Focus Growth Fund and the Master LLC. BlackRock and its affili-
ates and significant shareholders provide each Fund, the Focus Growth
Fund and the Master LLC with certain administrative, transfer agency,
shareholder and other services (in addition to any such services provided
to the Funds, the Focus Growth Fund and the Master LLC by third parties)
and officers and other personnel as are necessary for the operations of
each Fund, the Focus Growth Fund and the Master LLC. In addition to
investment advisory services, BlackRock and its affiliates provide each
Fund, the Focus Growth Fund and the Master LLC with other services,
including (i) preparing disclosure documents, such as the prospectus,
the statement of additional information and periodic shareholder reports;
(ii) assisting with daily accounting and pricing; (iii) overseeing and coordi-
nating the activities of other service providers; (iv) organizing Board meet-
ings and preparing the materials for such Board meetings; (v) providing
legal and compliance support; and (vi) performing other administrative
functions necessary for the operation of each Fund, the Focus Growth
Fund and the Master LLC, such as tax reporting, fulfilling regulatory filing
requirements, and call center services. The Board reviewed the structure
and duties of BlackRock’s fund administration, accounting, legal and com-
pliance departments and considered BlackRock’s policies and procedures
for assuring compliance with applicable laws and regulations.
B. The Investment Performance of each Fund, the Focus Growth Fund, the
Master LLC and BlackRock: The Board, including the Independent Board
Members, also reviewed and considered the performance history of each
Fund, the Focus Growth Fund and the Master LLC. In preparation for the
May 5, 2009 meeting, the Board was provided with reports, independently
prepared by Lipper, which included a comprehensive analysis of each
Fund’s and the Focus Growth Fund’s performance. The Board also
reviewed a narrative and statistical analysis of the Lipper data that was
prepared by BlackRock, which analyzed various factors that affect Lipper’s
rankings. In connection with its review, the Board received and reviewed
information regarding the investment performance of each Fund and the
Focus Growth Fund as compared to a representative group of similar
funds as determined by Lipper and to all funds in each Fund’s and the
Focus Growth Fund’s applicable Lipper category. The Board was provided
with a description of the methodology used by Lipper to select peer funds.
The Board regularly reviews the performance of each Fund, the Focus
52 ANNUAL REPORT AUGUST 31, 2009
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)
Growth Fund and the Master LLC throughout the year. The Board attaches
more importance to performance over relatively long periods of time, typi-
cally three to five years.
The Board noted that the Focus Growth Fund ranked in the first quartile
against its Lipper Performance Universe for each of the one-, three- and
five-year periods reported.
The Board noted that the Global Growth Fund ranked in the second, first
and first quartiles against its Lipper Performance Universe for the one-,
three- and five-year periods reported, respectively.
The Board noted that the Fundamental Growth Principal Protected Fund
ranked in the first, first and second quartiles against its Lipper Performance
Universe for the one-, three- and five-year periods reported, respectively.
C. Consideration of the Advisory Fees and the Cost of the Services
and Profits to be Realized by BlackRock and its Affiliates from their
Relationship with each Fund, the Focus Growth Fund and the Master LLC:
The Board, including the Independent Board Members, reviewed each
Fund’s and the Master LLC’s contractual advisory fee rates compared
with the other funds in its Lipper category. It also compared each Fund’s
and the Focus Growth Fund’s total expenses, as well as actual manage-
ment fees, to those of other comparable funds. The Board considered the
services provided and the fees charged by BlackRock to other types of
clients with similar investment mandates, including separately managed
institutional accounts.
The Board received and reviewed statements relating to BlackRock’s
financial condition and profitability with respect to the services it provided
each Fund and the Master LLC. The Board was also provided with a prof-
itability analysis that detailed the revenues earned and the expenses
incurred by BlackRock for services provided to each Fund, the Focus
Growth Fund and the Master LLC. The Board reviewed BlackRock’s prof-
itability with respect to each Fund and the Master LLC and other funds
the Board currently oversees for the year ended December 31, 2008
compared to available aggregate profitability data provided for the year
ended December 31, 2007. The Board reviewed BlackRock’s profitability
with respect to other fund complexes managed by the Manager and/or its
affiliates. The Board reviewed BlackRock’s assumptions and methodology
of allocating expenses in the profitability analysis, noting the inherent limi-
tations in allocating costs among various advisory products. The Board
recognized that profitability may be affected by numerous factors includ-
ing, among other things, fee waivers and expense reimbursements by the
Manager, the types of funds managed, expense allocations and business
mix, and therefore comparability of profitability is somewhat limited.
The Board noted that, in general, individual fund or product line profitability
of other advisors is not publicly available. Nevertheless, to the extent such
information is available, the Board considered BlackRock’s operating mar-
gin in general compared to the operating margin for leading investment
management firms whose operations include advising open-end funds,
among other product types. The comparison indicated that operating
margins for BlackRock with respect to its registered funds are generally
consistent with margins earned by similarly situated publicly traded com-
petitors. In addition, the Board considered, among other things, certain
third party data comparing BlackRock’s operating margin with that of other
publicly-traded asset management firms, which concluded that larger
asset bases do not, in themselves, translate to higher profit margins.
In addition, the Board considered the cost of the services provided to
each Fund, the Focus Growth Fund and the Master LLC by BlackRock,
and BlackRock’s and its affiliates’ profits relating to the management
and distribution of each Fund, the Focus Growth Fund, the Master LLC
and the other funds advised by BlackRock and its affiliates. As part of its
analysis, the Board reviewed BlackRock’s methodology in allocating its
costs to the management of each Fund, the Focus Growth Fund and the
Master LLC. The Board also considered whether BlackRock has the finan-
cial resources necessary to attract and retain high quality investment
management personnel to perform its obligations under the Agreements
and to continue to provide the high quality of services that is expected
by the Board.
The Board noted that the Focus Growth Fund’s/Master LLC’s contractual
advisory fees, which do not take into account any expense reimbursements
or fee waivers, were lower than or equal to the median contractual advisory
fees paid by the Focus Growth Fund’s Peers. The Board also noted that
BlackRock has contractually agreed to waive fees or reimburse expenses
in order to limit the Focus Growth Fund’s total net expenses on a class-by-
class basis, as applicable. The Board further noted that BlackRock has
contractually agreed to waive or reimburse management fees for the
Master LLC.
The Board noted that the Global Growth Fund’s contractual advisory fees,
which do not take into account any expense reimbursements or fee
waivers, were lower than or equal to the median contractual advisory fees
paid by the Global Growth Fund’s Peers. The Board also noted that the
Global Growth Fund has an advisory fee arrangement that includes break-
points that adjust the fee rate downward as the size of the Global Growth
Fund increases, thereby allowing shareholders the potential to participate
in economies of scale.
The Board noted that the Fundamental Growth Principal Protected Fund’s
contractual advisory fees, which do not take into account any expense
reimbursements or fee waivers, were lower than or equal to the median
contractual advisory fees paid by the Fundamental Growth Principal
Protected Fund’s Peers. The Board also noted that BlackRock has contrac-
tually agreed to waive fees or reimburse expenses in order to limit the
Fundamental Growth Principal Protected Fund’s total net expenses on a
class-by-class basis, as applicable.
D. Economies of Scale: The Board, including the Independent Board
Members, considered the extent to which economies of scale might
be realized as the assets of each Fund, the Focus Growth Fund and the
Master LLC increase and whether there should be changes in the advisory
fee rate or structure in order to enable each Fund, the Focus Growth Fund
and the Master LLC to participate in these economies of scale, for example
through the use of breakpoints in the advisory fee based upon the assets
ANNUAL REPORT AUGUST 31, 2009 53
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)
of each Fund or the Master LLC. The Board considered that the funds in
the BlackRock fund complex share some common resources and, as a
result, an increase in the overall size of the complex could permit each
fund to incur lower expenses than it would otherwise as a stand-alone
entity. The Board also considered BlackRock’s overall operations and its
efforts to expand the scale of, and improve the quality of, its operations.
E. Other Factors: The Board also took into account other ancillary or “fall-
out” benefits that BlackRock or its affiliates and significant shareholders
may derive from its relationship with each Fund, the Focus Growth Fund and
the Master LLC, both tangible and intangible, such as BlackRock’s ability
to leverage its investment professionals who manage other portfolios, an
increase in BlackRock’s profile in the investment advisory community, and
the engagement of BlackRock’s affiliates and significant shareholders as
service providers to each Fund, the Focus Growth Fund and the Master LLC,
including for administrative, transfer agency and distribution services. The
Board also noted that BlackRock may use third party research obtained
by soft dollars generated by certain mutual fund transactions to assist
itself in managing all or a number of its other client accounts.
In connection with its consideration of the Agreements, the Board also
received information regarding BlackRock’s brokerage and soft dollar prac-
tices. The Board received reports from BlackRock which included informa-
tion on brokerage commissions and trade execution practices throughout
the year.
Conclusion
The Board of Directors of the Master LLC and the Board of Directors/
Trustees of each Fund, including the Independent Board Members, unani-
mously approved the continuation of the Advisory Agreements between
the Manager and each of (a) the Master LLC and (b) each Fund for a
one-year term ending June 30, 2010, and the Sub-Advisory Agreement
between the Manager and the Sub-Advisor with respect to each of (a) the
Master LLC and (b) each Fund for a one-year term ending June 30, 2010.
Based upon its evaluation of all these factors in their totality, the Board of
Directors of the Master LLC and the Board of Directors/Trustees of each
Fund, including the Independent Board Members, were satisfied that the
terms of the Agreements were fair and reasonable and in the best interest
of the Master LLC, each Fund and their shareholders. The Board of Directors
of the Focus Growth Fund, including the Independent Board Members,
also considered the continuation of the Agreements with respect to the
Master LLC and found the Agreements to be satisfactory. In arriving at a
decision to approve the Agreements, the Board did not identify any single
factor or group of factors as all-important or controlling, but considered
all factors together, and different Board Members may have attributed dif-
ferent weights to the various factors considered. The Independent Board
Members were also assisted by the advice of independent legal counsel
in making this determination. The contractual fee arrangements for each
Fund, the Focus Growth Fund and the Master LLC reflect the results of
several years of review by the Board Members and predecessor Board
Members, and discussions between such Board Members (and predeces-
sor Board Members) and BlackRock. Certain aspects of the arrangements
may be the subject of more attention in some years than in others, and
the Board Members’ conclusions may be based in part on their considera-
tion of these arrangements in prior years.
54 ANNUAL REPORT AUGUST 31, 2009
| Officers and Directors | |||||
| Number of BlackRock- | |||||
| Advised Registered | |||||
| Position(s) | Length | Investment Companies | |||
| Held with | of Time | (“RICs”) Consisting of | |||
| Name, Address | Funds/ | Served as | Investment Portfolios | Public | |
| and Year of Birth | Master LLC | a Director2 | Principal Occupation(s) During Past 5 Years | (“Portfolios”) Overseen | Directorships |
| Non-Interested Directors1 | |||||
| Robert M. Hernandez | Chairman of the | Since | Director, Vice Chairman and Chief Financial Officer of USX | 35 RICs consisting of | ACE Limited |
| 40 East 52nd Street | Board, Director | 2007 | Corporation (energy and steel business) from 1991 to 2001. | 101 Portfolios | (insurance company); |
| New York, NY 10022 | and Member of | Eastman Chemical | |||
| 1944 | the Audit | Company (chemical); | |||
| Committee | RTI International | ||||
| Metals, Inc. (metals); | |||||
| TYCO Electronics | |||||
| (electronics) | |||||
| Fred G. Weiss | Vice Chairman | Since | Managing Director, FGW Associates (consulting and investment | 35 RICs consisting of | Watson |
| 40 East 52nd Street | of the Board, | 2007 | company) since 1997; Director, Michael J. Fox Foundation for | 101 Portfolios | Pharmaceutical Inc. |
| New York, NY 10022 | Director and | Parkinson’s Research since 2000; Director of BTG International | |||
| 1941 | Member of the | Plc (a global technology commercialization company) from | |||
| Audit Committee | 2001 to 2007. | ||||
| James H. Bodurtha | Director | Since | Director, The China Business Group, Inc. (consulting firm) since | 35 RICs consisting of | None |
| 40 East 52nd Street | 2002 | 1996 and Executive Vice President thereof from 1996 to 2003; | 101 Portfolios | ||
| New York, NY 10022 | Chairman of the Board, Berkshire Holding Corporation since 1980. | ||||
| 1944 | |||||
| Bruce R. Bond | Director | Since | Trustee and Member of the Governance Committee, State Street | 35 RICs consisting of | None |
| 40 East 52nd Street | 2007 | Research Mutual Funds from 1997 to 2005; Board Member of | 101 Portfolios | ||
| New York, NY 10022 | of Governance, Audit and Finance Committee, Avaya Inc. | ||||
| 1946 | (computer equipment) from 2003 to 2007. | ||||
| Donald W. Burton | Director | Since | Managing General Partner, The Burton Partnership, LP (an | 35 RICs consisting of | Knology, Inc. (tele- |
| 40 East 52nd Street | 2007 | investment partnership) since 1979; Managing General Partner, | 101 Portfolios | communications); | |
| New York, NY 10022 | The South Atlantic Venture Funds since 1983; Member of the | Capital Southwest | |||
| 1944 | Investment Advisory Council of the Florida State Board of | (financial) | |||
| Administration from 2001 to 2007. | |||||
| Honorable | Director | Since | Partner and Head of International Practice, Covington and | 35 RICs consisting of | Alcatel-Lucent (tele- |
| Stuart E. Eizenstat | 2007 | Burling (law firm) since 2001; International Advisory Board | 101 Portfolios | communications); | |
| 40 East 52nd Street | Member, The Coca Cola Company since 2002; Advisory Board | Global Specialty | |||
| New York, NY 10022 | Member, BT Americas (telecommunications) since 2004; | Metallurgical (metal- | |||
| 1943 | Member of the Board of Directors, Chicago Climate Exchange | lurgical industry); | |||
| (environmental) since 2006; Member of the International | UPS Corporation | ||||
| Advisory Board GML (energy) since 2003. | (delivery service) | ||||
| Kenneth A. Froot | Director | Since | Professor, Harvard University since 1992. | 35 RICs consisting of | None |
| 40 East 52nd Street | 2005 | 101 Portfolios | |||
| New York, NY 10022 | |||||
| 1957 | |||||
| John F. O’Brien | Director | Since | Trustee, Woods Hole Oceanographic Institute since 2003; | 35 RICs consisting of | Cabot Corporation |
| 40 East 52nd Street | 2007 | Director, Allmerica Financial Corporation from 1995 to 2003; | 101 Portfolios | (chemicals); LKQ | |
| New York, NY 10022 | Director, ABIOMED from 1989 to 2006; Director, Ameresco, Inc. | Corporation (auto | |||
| 1943 | (energy solutions company) from 2006 to 2007. | parts manufacturing); | |||
| TJX Companies, Inc. | |||||
| (retailer) | |||||
| Roberta Cooper Ramo | Director | Since | Shareholder, Modrall, Sperling, Roehl, Harris & Sisk, P.A. (law | 35 RICs consisting of | None |
| 40 East 52nd Street | 2002 | firm) since 1993; Chairman of the Board, Cooper’s Inc., (retail) | 101 Portfolios | ||
| New York, NY 10022 | since 2000; Director of ECMC Group (service provider to | ||||
| 1942 | students, schools and lenders) since 2001; President, The | ||||
| American Law Institute, (non-profit), 2008; President, American | |||||
| Bar Association from 1995 to 1996. | |||||
ANNUAL REPORT AUGUST 31, 2009 55
| Officers and Directors (continued) | |||||
| Number of BlackRock- | |||||
| Advised Registered | |||||
| Position(s) | Length | Investment Companies | |||
| Held with | of Time | (“RICs”) Consisting of | |||
| Name, Address | Funds/ | Served as | Investment Portfolios | Public | |
| and Year of Birth | Master LLC | a Director2 | Principal Occupation(s) During Past 5 Years | (“Portfolios”) Overseen | Directorships |
| Non-Interested Directors1 (concluded) | |||||
| David H. Walsh | Director | Since | Director, National Museum of Wildlife Art since 2007; Director, | 35 RICs consisting of | None |
| 40 East 52nd Street | 2007 | Ruckleshaus Institute and Haub School of Natural Resources | 101 Portfolios | ||
| New York, NY 10022 | at the University of Wyoming from 2006 to 2008; Trustee, | ||||
| 1941 | University of Wyoming Foundation since 2008; Director, The | ||||
| American Museum of Fly Fishing since 1997; Director, The | |||||
| National Audubon Society from 1998 to 2005. | |||||
| Richard R. West | Director | Since | Dean Emeritus, New York University’s Leonard N. Stern School | 35 RICs consisting of | Bowne & Co., Inc. |
| 40 East 52nd Street | and Member | 2007 | of Business Administration since 1995. | 101 Portfolios | (financial printers); |
| New York, NY 10022 | of the Audit | Vornado Realty Trust | |||
| 1938 | Committee | (real estate | |||
| company); | |||||
| Alexander’s Inc. | |||||
| (real estate | |||||
| company) | |||||
| 1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. | |||||
| 2 Date shown is the earliest date a person has served as a director for the Fund 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 certain directors as joining the Fund’s board | |||||
| in 2007, each director first became a member of the board of directors of other legacy MLIM or legacy BlackRock Funds as follows: James H. Bodurtha, | |||||
| 1995; Bruce R. Bond, 2005; Donald W. Burton, 2002; Stuart E. Eizenstat, 2001; Kenneth A. Froot, 2005; Robert M. Hernandez, 1996; John F. O’Brien, | |||||
| 2004; Roberta Cooper Ramo, 2000; David H. Walsh, 2003; Fred G. Weiss, 1998; and Richard R. West, 1978. | |||||
| Interested Directors3 | |||||
| Richard S. Davis | Director | Since | Managing Director, BlackRock, Inc. since 2005; Formerly Chief | 173 RICs consisting of | None |
| 40 East 52nd Street | 2007 | Executive Officer, State Street Research & Management Company | 283 Portfolios | ||
| New York, NY 10022 | from 2000 to 2005; Formerly Chairman of the Board of Trustees, | ||||
| 1945 | State Street Research Mutual Funds from 2000 to 2005; | ||||
| Chairman, SSR Realty from 2000 to 2004. | |||||
| Laurence D. Fink | Director | Since | Chairman and Chief Executive Officer of BlackRock, Inc. since its | 35 RICs consisting of | None |
| 40 East 52nd Street | 2007 | formation in 1998 and of BlackRock, Inc.’s predecessor entities | 101 Portfolios | ||
| New York, NY 10022 | since 1988 and Chairman of the Executive and Management | ||||
| 1952 | Committees; Managing Director, The First Boston Corporation, | ||||
| Member of its Management Committee, Co-head of its Taxable | |||||
| Fixed Income Division and Head of its Mortgage and Real Estate | |||||
| Products Group; Chairman of the Board of several of BlackRock’s | |||||
| alternative investment vehicles; Director of several of BlackRock’s | |||||
| offshore funds; Member of the Board of Trustees of New York | |||||
| University, Chair of the Financial Affairs Committee and a member | |||||
| of the Executive Committee, the Ad Hoc Committee on Board | |||||
| Governance, and the Committee on Trustees; Co-Chairman of | |||||
| the NYU Hospitals Center Board of Trustees, Chairman of the | |||||
| Development/Trustee Stewardship Committee and Chairman of | |||||
| the Finance Committee; Trustee, The Boys’ Club of New York. | |||||
| Henry Gabbay | Director | Since | Consultant, BlackRock, Inc. from 2007 to 2008; Managing | 173 RICs consisting of | None |
| 40 East 52nd Street | 2007 | Director, BlackRock, Inc. from 1989 to 2007; Chief | 283 Portfolios | ||
| New York, NY 10022 | Administrative Officer,BlackRock Advisors, LLC from 1998 to | ||||
| 1947 | 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. | |||||
| 3 Messrs. Davis and Fink are both “interested persons,” as defined in the Investment Company Act of 1940, of the Fund based on their positions with | |||||
| BlackRock, Inc. and its affiliates. Mr. Gabbay is an “interested person” of the Fund based on his former positions with BlackRock, Inc. and its affiliates | |||||
| as well as his ownership of BlackRock, Inc. and PNC securities. Directors serve until their resignation, removal or death, or until December 31 of the | |||||
| year in which they turn 72. | |||||
56 ANNUAL REPORT AUGUST 31, 2009
| Officers and Directors (concluded) | ||||||
| Position(s) | ||||||
| Held with | ||||||
| Name, Address | Funds/ | Length of | ||||
| and Year of Birth | Master LLC | Time Served | Principal Occupation(s) During Past 5 Years | |||
| Fund Officers1 | ||||||
| Anne F. Ackerley | President | Since | Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to 2009; | |||
| 40 East 52nd Street | and Chief | 2009 | Chief Operating Officer of BlackRock’s Account Management Group (AMG) since 2009; Chief Operating Officer of | |||
| New York, NY 10022 | Executive | BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006. | ||||
| 1962 | Officer | |||||
| Jeffrey Holland, CFA | Vice | Since | Director of BlackRock, Inc. since 2006; Chief Operating Officer of BlackRock’s U.S. Retail Group since 2009; | |||
| 40 East 52nd Street | President | 2009 | Co-head of Product Development and Management for BlackRock’s U.S. Retail Group from 2007 to 2009; | |||
| New York, NY 10022 | Product Manager of Raymond James & Associates from 2003 to 2006. | |||||
| 1971 | ||||||
| Brian Schmidt | Vice | Since | Managing Director of BlackRock, Inc. since 2004; Various positions with U.S. Trust Company from 1991 to 2003; | |||
| 40 East 52nd Street | President | 2009 | Director from 2001 to 2003; Senior Vice President from 1998 to 2003; Vice President, Chief Financial Officer and | |||
| New York, NY 10022 | Treasurer of Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc. and Excelsior Funds Trust from 2001 to 2003. | |||||
| 1958 | ||||||
| Neal J. Andrews | Chief | Since | Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund | |||
| 40 East 52nd Street | Financial | 2007 | Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006. | |||
| New York, NY 10022 | Officer | |||||
| 1966 | ||||||
| Jay M. Fife | Treasurer | Since | Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch | |||
| 40 East 52nd Street | 2007 | Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director | ||||
| New York, NY 10022 | of MLIM Fund Services Group from 2001 to 2006. | |||||
| 1970 | ||||||
| Brian P. Kindelan | Chief | Since | Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel | |||
| 40 East 52nd Street | Compliance | 2007 | of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, LLC from 2001 to 2004. | |||
| New York, NY 10022 | Officer | |||||
| 1959 | ||||||
| Howard B. Surloff | Secretary | Since | Managing Director and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General Counsel (U.S.) | |||
| 40 East 52nd Street | 2007 | of Goldman Sachs Asset Management, L.P. from 1993 to 2006. | ||||
| New York, NY 10022 | ||||||
| 1965 | ||||||
| 1 Officers of the Funds/Master LLC serve at the pleasure of the Board of Directors. | ||||||
| Further information about the Funds’/Master LLC’s Officers and Directors is available in the Funds’/Master LLC’s Statement of Additional Information, | ||||||
| which can be obtained without charge by calling (800) 441-7762 | ||||||
| Investment Advisor | Custodians | Transfer Agent | Accounting Agent | Independent Registered | Legal Counsel | |
| BlackRock Advisors, LLC | Brown Brothers Harriman & Co.2 PNC Global Investment | State Street Bank | Public Accounting Firm | Willkie Farr & Gallagher LLP | ||
| Wilmington, DE 19809 | Boston, MA 02109 | Servicing (U.S.) Inc. | and Trust Company | Deloitte & Touche LLP | New York, NY 10019 | |
| Wilmington, DE 19809 | Princeton, NJ 08540 | Princeton, NJ 08540 | ||||
| Sub-Advisor | State Street Bank and | |||||
| BlackRock Investment | Trust Company3 | Distributor | Address of the Funds | |||
| Management, LLC | Boston, MA 02101 | BlackRock | 100 Bellevue Parkway | |||
| Plainsboro, NJ 08536 | Investments, LLC | Wilmington, DE 19809 | ||||
| The Bank of New York Mellon4 | ||||||
| New York, NY 10022 | ||||||
| New York, NY 10286 | ||||||
| 2 For BlackRock Fundamental Growth Principal Protected Fund. | ||||||
| 3 For BlackRock Global Growth Fund, Inc. | ||||||
| 4 For BlackRock Focus Growth Fund, Inc. | ||||||
Effective July 31, 2009, Donald C. Burke, President and Chief Executive Officer of the Funds and Master LLC retired. The Funds’ and
Master LLC’s Board of Directors wishes Mr. Burke well in his retirement.
Effective August 1, 2009, Anne F. Ackerley became President and Chief Executive Officer of the Funds and Master LLC, and Jeffrey
Holland and Brian Schmidt became Vice Presidents of the Funds and Master LLC.
Effective August 1, 2009, Jean Margo Reid resigned as a Director of the Funds and Master LLC. The Board wishes Ms. Reid well in
her future endeavors.
Effective September 9, 2009, Brendan Kyne became a Vice President of the Funds.
ANNUAL REPORT AUGUST 31, 2009 57
Additional Information
General Information
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available
on the Funds’ website or shareholders can sign up for e-mail notifications
of quarterly statements, annual and semi-annual reports and prospectuses
by enrolling in the Funds’ 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) Click on the applicable link and follow the steps to sign up
3) Log into your account
Householding
The Funds 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 it 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
contact the Funds at (800) 441-7762.
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
(1) without charge, upon request, by calling toll-free (800) 441-7762;
(2) at www.blackrock.com; and (3) on the Securities and Exchange
Commission’s (the “SEC”) website at http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Funds vote proxies relating to securities held
in the Funds’ portfolio during the most recent 12-month period ended
December 31 is available upon request and without charge (1) at
www.blackrock.com or by calling (800) 441-7762 and (2) on the
SEC’s website at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Funds file their complete schedules of portfolio holdings with the SEC
for the first and third quarters of each fiscal year on Form N-Q. The Funds’
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 the operation of the Public Reference
Room may be obtained by calling (202) 551-8090. The Funds’ Forms
N-Q may also be obtained upon request and without charge by calling
(800) 441-7762.
Shareholder Privileges
Account Information
Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST to get infor-
mation about your account balances, recent transactions and share prices.
You can also reach us on the Web at 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 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 Privacy Principles
BlackRock is committed to maintaining the privacy of its current and for-
mer fund investors and individual clients (collectively, “Clients”) and to
safeguarding their non-public personal information. The following infor-
mation 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 applica-
tions, 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 pro-
cedures relating to the proper storage and disposal of such information.
58 ANNUAL REPORT AUGUST 31, 2009
| 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 All-Cap Energy & Resources Portfolio | BlackRock Global Opportunities Portfolio | BlackRock Mid-Cap Value Equity Portfolio |
| BlackRock Asset Allocation Portfolio† | BlackRock Global SmallCap Fund | BlackRock Mid Cap Value Opportunities Fund |
| BlackRock Aurora Portfolio | BlackRock Health Sciences Opportunities Portfolio | BlackRock Natural Resources Trust |
| BlackRock Balanced Capital Fund† | BlackRock Healthcare Fund | BlackRock Pacific Fund |
| BlackRock Basic Value Fund | BlackRock Index Equity Portfolio* | BlackRock Science & Technology |
| BlackRock Capital Appreciation Portfolio | BlackRock International Fund | Opportunities Portfolio |
| BlackRock Energy & Resources Portfolio | BlackRock International Diversification Fund | BlackRock Small Cap Core Equity Portfolio |
| BlackRock Equity Dividend Fund | BlackRock International Index Fund | BlackRock Small Cap Growth Equity Portfolio |
| BlackRock EuroFund | BlackRock International Opportunities Portfolio | BlackRock Small Cap Growth Fund II |
| BlackRock Focus Growth Fund | BlackRock International Value Fund | BlackRock Small Cap Index Fund |
| BlackRock Focus Value Fund | BlackRock Large Cap Core Fund | BlackRock Small Cap Value Equity Portfolio |
| BlackRock Fundamental Growth Fund | BlackRock Large Cap Core Plus Fund | BlackRock Small/Mid-Cap Growth Portfolio |
| BlackRock Global Allocation Fund† | BlackRock Large Cap Growth Fund | BlackRock S&P 500 Index Fund |
| BlackRock Global Dynamic Equity Fund | BlackRock Large Cap Value Fund | BlackRock U.S. Opportunities Portfolio |
| BlackRock Global Emerging Markets Fund | BlackRock Latin America Fund | BlackRock Utilities and Telecommunications Fund |
| BlackRock Global Financial Services Fund | BlackRock Mid-Cap Growth Equity Portfolio | BlackRock Value Opportunities Fund |
| BlackRock Global Growth Fund | ||
| Fixed Income Funds | ||
| BlackRock Bond Portfolio | BlackRock Income Builder Portfolio† | BlackRock Managed Income Portfolio |
| BlackRock Emerging Market Debt Portfolio | BlackRock Inflation Protected Bond Portfolio | BlackRock Short-Term Bond Fund |
| BlackRock GNMA Portfolio | BlackRock Intermediate Government | BlackRock Strategic Income Portfolio |
| BlackRock Government Income Portfolio | Bond Portfolio | BlackRock Total Return Fund |
| BlackRock High Income Fund | BlackRock International Bond Portfolio | BlackRock Total Return Portfolio II |
| BlackRock High Yield Bond Portfolio | BlackRock Long Duration Bond Portfolio | BlackRock World Income Fund |
| BlackRock Income Portfolio† | BlackRock Low Duration Bond Portfolio | |
| Municipal Bond Funds | ||
| BlackRock AMT-Free Municipal Bond Portfolio | BlackRock Kentucky Municipal Bond Portfolio | BlackRock New York Municipal Bond Fund |
| BlackRock California Municipal Bond Fund | BlackRock Municipal Insured Fund | BlackRock Ohio Municipal Bond Portfolio |
| BlackRock Delaware Municipal Bond Portfolio | BlackRock National Municipal Fund | BlackRock Pennsylvania Municipal Bond Fund |
| BlackRock High Yield Municipal Fund | BlackRock New Jersey Municipal Bond Fund | BlackRock Short-Term Municipal Fund |
| BlackRock Intermediate Municipal Fund | ||
| Target Risk & Target Date Funds | ||
| BlackRock Prepared Portfolios | BlackRock Lifecycle Prepared Portfolios | |
| Conservative Prepared Portfolio | Prepared Portfolio 2010 | Prepared Portfolio 2030 |
| Moderate Prepared Portfolio | Prepared Portfolio 2015 | Prepared Portfolio 2035 |
| Growth Prepared Portfolio | Prepared Portfolio 2020 | Prepared Portfolio 2040 |
| Aggressive Growth Prepared Portfolio | Prepared Portfolio 2025 | Prepared Portfolio 2045 |
| Prepared Portfolio 2050 | ||
| * See the prospectus for information on specific limitations on investments in the fund. | ||
| † 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) 882-0052 or from your financial advisor. The prospectus should be read carefully before investing. | ||
ANNUAL REPORT AUGUST 31, 2009 59
This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless accompanied or preceded by the
Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment
return 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.
Item 2 – Code of Ethics – The registrant (or the “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 and principal accounting officer, 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 – The registrant’s board of directors or trustees, as applicable
(the “board of directors”) has determined that (i) the registrant has the following audit committee
financial experts serving on its audit committee and (ii) each audit committee financial expert is
independent:
Robert M. Hernandez
Fred G. Weiss
Richard R. West
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 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
| (a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||
| Current | Previous | Current | Previous | Current | Previous | Current | Previous | |
| Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | |
| Entity Name | End | End | End | End | End | End | End | End |
| BlackRock Global | $35,700 | $35,300 | $0 | $0 | $11,218 | $9,631 | $1,028 | $1,049 |
| Growth Fund, Inc. | ||||||||
1 The nature of the services include 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 include tax compliance, tax advice and tax planning.
3 The nature of the services include a review of compliance procedures and attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant’s audit committee (the “Committee”) has adopted policies and procedures with
regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to
the registrant on an annual basis require specific pre-approval by the Committee. The Committee
also must approve other non-audit services provided to the registrant and those non-audit services
provided to the registrant’s affiliated 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 the registrant
which have a direct impact on the operation 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 for all of the registrants the Committee oversees. 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 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 one or more of its members 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 the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
| (f) Not Applicable | ||
| (g) Affiliates’ Aggregate Non-Audit Fees: | ||
| Current Fiscal Year | Previous Fiscal Year | |
| Entity Name | End | End |
| BlackRock Global Growth | $419,746 | $415,680 |
| Fund, Inc. | ||
(h) The registrant’s audit committee has considered and determined that the provision of non-audit
services that were rendered to the registrant’s investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by
the registrant’s investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the registrant 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.
Regulation S-X Rule 2-01(c)(7)(ii) – $407,500, 0%
Item 5 – Audit Committee of Listed Registrants – Not Applicable
Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report 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 – The registrant’s Nominating and
Governance Committee will consider nominees to the board of directors recommended by
shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee
should send nominations that include biographical information and set forth the qualifications of the
proposed nominee to the registrant’s Secretary. There have been no material changes to these
procedures.
Item 11 – Controls and Procedures
11(a) – The registrant’s principal executive and principal financial officers or persons performing similar
functions have concluded that the registrant’s 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 15(d)-15(b) under the Securities
Exchange Act of 1934, as amended.
11(b) – There were no changes in the registrant’s 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
registrant’s 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, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
BlackRock Global Growth Fund, Inc.
By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock Global Growth Fund, Inc.
Date: October 22, 2009
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 the registrant
and in the capacities and on the dates indicated.
By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock Global Growth Fund, Inc.
Date: October 22, 2009
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Global Growth Fund, Inc.
Date: October 22, 2009