Master Large Cap Series N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-02405, 811-09739 and 811-21434

Name of Fund: BlackRock Balanced Capital Fund, Inc., Master Large Cap Core Portfolio of Master Large Cap Series LLC and Master Total Return Portfolio of Master Bond LLC

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Balanced Capital Fund, Inc., Master Large Cap Core Portfolio of Master Large Cap Series LLC and Master Total Return Portfolio of Master Bond LLC, 55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 09/30/2012

Date of reporting period: 03/31/2012

Item 1 – Report to Stockholders

March 31, 2012

Semi-Annual Report (Unaudited)

BlackRock Balanced Capital Fund, Inc.

Not FDIC Insured § No Bank Guarantee § May Lose Value

Table of Contents
	Page
Dear Shareholder	3
Semi-Annual Report:
Fund Summary	4
About Fund Performance	6
Disclosure of Expenses	6
The Benefits and Risks of Leveraging	7
Derivative Financial Instruments	7
Fund Financial Statements:
Statement of Assets and Liabilities	8
Statement of Operations	9
Statements of Changes in Net Assets	10
Fund Financial Highlights	11
Fund Notes to Financial Statements	16
Master Large Cap Core Portfolio Summary	20
Master Large Cap Core Portfolio Financial Statements:
Schedule of Investments	21
Statement of Assets and Liabilities	24
Statement of Operations	25
Statements of Changes in Net Assets	26
Master Large Cap Core Portfolio Financial Highlights	26
Master Large Cap Core Portfolio Notes to Financial Statements	27
Officers and Directors of Master Large Cap Series LLC	30
Master Total Return Portfolio Information	31
Master Total Return Portfolio Financial Statements:
Schedule of Investments	32
Statement of Assets and Liabilities	51
Statement of Operations	52
Statements of Changes in Net Assets	53
Master Total Return Portfolio Financial Highlights	53
Master Total Return Portfolio Notes to Financial Statements	54
Officers and Directors of the Fund and Master Bond LLC	64
Additional Information	65
A World-Class Mutual Fund Family	67

2 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

Dear Shareholder

Twelve months ago, risk assets were charging forward, only to be met with a sharp reversal in May 2011 when escalating political strife in Greece rekindled fears about sovereign debt problems spreading across Europe. Concurrently, global economic indicators signaled that the recovery had slowed. Confidence was further shaken by the prolonged debt ceiling debate in Washington, DC. On August 5, 2011, Standard & Poor’s made history by downgrading the US government’s credit rating, and turmoil erupted in financial markets around the world. Extraordinary levels of volatility persisted in the months that followed as the European debt crisis intensified. Macro news flow became a greater influence on trading decisions than the fundamentals of the securities traded, resulting in high correlations between asset prices. By the end of the third quarter, equity markets had fallen nearly 20% from their April peak while safe-haven assets such as US Treasuries and gold had rallied to historic highs.

October brought enough positive economic data to assuage fears of a global double-dip recession. Additionally, European leaders began to show progress toward stemming the region’s debt crisis. Investors began to reenter the markets, putting risk assets on the road to recovery. Improving investor sentiment carried over into the first several months of 2012. Debt problems in Europe stabilized as policymakers secured a bailout plan for Greece and completed the nation’s debt restructuring without significant market disruptions. While concerns about slowing growth in China and a European recession weighed on the outlook for the global economy, an acceleration of the US recovery lifted sentiment. Several consecutive months of stronger jobs data signaled solid improvement in the US labor market, a pivotal factor for economic growth. Meanwhile, the European Central Bank revived financial markets with additional liquidity through its long-term refinancing operations. The improving market conditions and generally better-than-expected economic news lured investors still holding cash on the sidelines back to risk assets. Stocks, commodities and high yield bonds rallied through the first two months of the year while rising Treasury yields pressured higher-quality fixed income assets. The rally softened in late March, however, as concerns about slowing growth in China were refueled by negative signals from the world’s second-largest economy. Additionally, concerns over the European debt crisis resurfaced given uncertainty around policies for sovereign debt financing in peripheral countries and rising yields in Portugal and Spain.

Thanks in large part to an exceptionally strong first quarter of 2012, risk assets, including equities and high yield bonds, posted solid returns for the 6-month period ended March 31, 2012. On a 12-month basis, US large-cap stocks and high yield bonds delivered positive results, while small-cap stocks finished in slightly negative territory. International and emerging markets, which experienced significant downturns in 2011, lagged the broader rebound. Fixed income securities experienced mixed results, given recent volatility in yields. US Treasury bonds performed particularly well for the 12-month period; however, an early-2012 sell-off resulted in a negative return for the 6–month period. Municipal bonds staged a solid advance over the past year. Continued low short-term interest rates kept yields on money market securities near their all-time lows.

While markets have improved in recent months, considerable headwinds remain. Europe faces a prolonged recession and the financial situations in Italy, Portugal and Spain remain worrisome. Higher oil and gasoline prices along with slowing growth in China and other emerging-market countries weigh heavily on the future of the global economy. But, we believe that with these challenges come opportunities. We remain committed to working with you and your financial professional to identify actionable ideas for your portfolio. We encourage you to visit www.blackrock.com/newworld for more information.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

“While markets have improved in recent months, considerable headwinds remain.”

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of March 31, 2012

	6-month			12-month
US large cap equities		25.89	%		8.54	%
(S&P 500® Index)
US small cap equities		29.83			(0.18	)
(Russell 2000® Index)
International equities		14.56			(5.77	)
(MSCI Europe, Australasia,
Far East Index)
Emerging market		19.12			(8.81	)
equities (MSCI Emerging
Markets Index)
3-month Treasury		0.01			0.06
bill (BofA Merrill Lynch
3-Month Treasury
Bill Index)
US Treasury securities		(1.05	)		14.92
(BofA Merrill Lynch 10-
Year US Treasury Index)
US investment grade		1.43			7.71
bonds (Barclays US
Aggregate Bond Index)
Tax-exempt municipal		4.16			12.56
bonds (S&P Municipal
Bond Index)
US high yield bonds		12.17			6.43
(Barclays US Corporate
High Yield 2% Issuer
Capped Index)

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

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of March 31, 2012

Investment Objective
BlackRock Balanced Capital Fund, Inc.’s (the “Fund”) investment objective is to seek the highest total investment return through a fully managed investment policy utilizing equity, debt (including money market) and convertible securities.
Portfolio Management Commentary
	How did the Fund perform?
•	For the six-month period ended March 31,2012, the Fund, through its investments in Master Large Cap Core Portfolio of Master Large Cap Series LLC (the “equity allocation” or the “Master Large Cap Core Portfolio”) and Master Total Return Portfolio of Master Bond LLC (the “fixed income allocation” or the “Master Total Return Portfolio”) (collectively, the “Master Portfolios”), outperformed its blended reference benchmark (60% Russell 1000® Index/40% Barclays US Aggregate Bond Index). For the same period, the Fund outperformed the fixed income benchmark, the Barclays US Aggregate Bond Index, and underperformed the equity benchmark, the Russell 1000® Index.
	What factors influenced performance?
•	From an asset allocation perspective, the Fund benefited from increasing its equity allocation over the period as risk assets broadly rallied. However, the largest contributor to the Fund’s outperformance versus its blended reference benchmark was strong performance in the Master Portfolios, each of which outperformed its benchmark index.
•	In the Master Large Cap Core Portfolio, positive performance in the information technology (“IT”), materials and health care sectors offset negative results in financials, industrials and consumer discretionary. The leading contributor to outperformance in the IT sector was stock selection in computers & peripherals. Key holdings in the industry successfully completed strategic acquisitions during the period, providing a further boost to earnings, which resulted in increased dividends and stock buy-back programs. In the materials sector, select holdings in chemical companies benefited from input cost advantages stemming from their reliance on low-cost US natural gas versus higher-priced crude oil. Natural gas prices declined to new lows during the six-month period, lifting profit margins for the chemicals industry.
•	The Master Total Return Portfolio benefited from its overweight to non-government spread sectors, resulting in outperformance versus its fixed income benchmark, the Barclays US Aggregate Bond Index. Spread sectors performed well during the period as US economic data continued to improve and liquidity risk in the euro zone was alleviated by the European Central Bank’s long-term refinancing operations. In particular, an overweight allocation to investment grade credit and security selection among industrial and financial names contributed positively to returns. An overweight in commercial mortgage-backed securities (“CMBS”) had a positive impact, as did exposure to high yield debt and non-agency residential mortgage-backed securities (“MBS”), neither of which are represented in the benchmark index. Security selection within agency MBS boosted returns while the sector continued to benefit from muted prepayment activity and speculation that the US Federal Reserve would implement additional monetary easing policies that focus exclusively on agency MBS. Additionally, a shorter duration bias (lower sensitivity to interest rates) relative to the fixed income benchmark index proved beneficial as interest rates began to rise in early 2012.
•	Detracting from performance in the Master Large Cap Core Portfolio was an underweight to financials, especially in the diversified financial services, commercial banks and capital markets industries. Similarly, an underweight to the industrials sector, particularly in machinery, hindered returns. In the Master Total Return Portfolio, the use of credit default swaps and equity options designed to protect the portfolio against market volatility detracted from performance during the period. Interest rate swaps used to manage duration (sensitivity to interest rate movements) and yield curve positioning also had a negative impact on returns.
	Describe recent portfolio activity.
•	With respect to broad asset allocation, the Fund increased exposure to equities over the six-month period, moving to an overweight relative to the blended reference benchmark in early 2012. In equities, the Master Large Cap Core Portfolio significantly increased exposure to the industrials and energy sectors and added to financials, while reducing exposure to health care, materials and IT. In fixed income, the Master Total Return Portfolio actively managed duration while maintaining a short duration bias. The Master Total Return Portfolio tactically managed investment grade credits throughout the period, cautiously seeking to take advantage of relative value opportunities in industrials and financials. However, following good performance in corporate credit in early 2012, exposure to the sector was reduced toward period end. The allocation to MBS was also reduced, primarily by decreasing exposure to lower-coupon issues. The Master Total Return Portfolio added exposure to CMBS, which continued to benefit from improving commercial real estate markets, and the more liquid sectors of the securitized market, such as auto loan asset-backed securities (“ABS”).
	Describe portfolio positioning at period end.
•	At period end, the Fund was overweight relative to the blended reference benchmark in equities and underweight in fixed income. In equities, the Master Large Cap Core Portfolio continued to reflect a balance between domestic cyclical stocks and less cyclical growth names. The largest sector overweights relative to the Russell 1000® Index as of period end included health care, energy and consumer discretionary, while the most significant underweights were financials and consumer staples. In fixed income, the Master Total Return Portfolio was generally underweight relative to the Barclays US Aggregate Bond Index in government-owned/government-related sectors in favor of non-government spread sectors. Spread-sector holdings included overweight exposure to investment grade corporate credit, CMBS, ABS and out-of-index positions in high yield debt and non-agency residential MBS. Within the government sectors, the Master Total Return Portfolio was underweight in US Treasuries and agency debentures, but held an overweight position in agency MBS. The Master Total Return Portfolio ended the period with a short duration stance as compared to the Barclays US Aggregate Bond Index.
	The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

4 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

Total Return Based on a $10,000 Investment

1	Assuming maximum sales charges, transaction costs and other operating expenses, including advisory fees, if any. Institutional Shares do not have a sales charge.
2	The Fund invests in equity securities (including common stock, preferred stock, securities convertible into common stock, or securities or other instruments whose price is linked to the value of common stock) and fixed-income securities (including debt securities, convertible securities and short term securities).
3	This unmanaged market-weighted index is comprised of investment grade corporate bonds (rated BBB or better), mortgages and US Treasury and government agency issues with at least one year to maturity.
4	This unmanaged broad-based index measures the performance of the 1,000 largest companies in the Russell 3000® Index, which represents approximately 92% of the total market capitalization of the Russell 3000® Index.
5	The Fund compares its performance to that of a customized weighted index comprised of the returns of the Russell 1000® Index (60%) and Barclays US Aggregate Bond Index (40%).

Performance Summary for the Period Ended March 31, 2012

			Average Annual Total Returns6
			1 Year				5 Years				10 Years
	6-Month Total Returns		w/o sales charge		w/sales charge		w/o sales charge		w/sales charge		w/o sales charge		w/sales charge
Institutional	17.00	%	5.25	%	N/A		2.02	%	N/A		3.98	%	N/A
Investor A	16.87		4.97		(0.54	)%	1.71		0.62	%	3.69		3.13	%
Investor B	16.20		3.87		(0.63	)	0.75		0.42		3.00		3.00
Investor C	16.35		4.09		3.09		0.90		0.90		2.87		2.87
Class R	16.57		4.50		N/A		1.27		N/A		3.41		N/A
Barclays US Aggregate Bond Index	1.43		7.71		N/A		6.25		N/A		5.80		N/A
Russell 1000® Index	26.27		7.86		N/A		2.19		N/A		4.53		N/A
60% Russell 1000® Index/40% Barclays US Aggregate Bond Index	15.89		8.20		N/A		4.27		N/A		5.40		N/A

6	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 6 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.

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 5

About Fund Performance

• Institutional Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to eligible investors.

• Investor A Shares 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 (“CDSC”) of 4.50% declining to 0% after six years. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares 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. These shares of the Fund are only available through exchanges, dividend reinvestment by existing shareholders or for purchase by certain qualified employee benefit plans.

• Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year.

• Class R Shares do not incur a maximum initial sales charge (front-end load) or CDSC. 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 Class R Share fees.

Performance information reflects past performance and does not guarantee future results. The performance information for periods prior to October 1, 2003 does not reflect any investment by the Fund in the Master Total Return Portfolio, and the performance information for periods prior to February 2009 does not reflect any investment by the Fund in the Master Large Cap Core Portfolio. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month end. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Figures shown in the performance table on the previous page assume reinvestment of all dividends and distributions, if any, at net asset value (“NAV”) on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.

The Fund’s investment advisor, BlackRock Advisors, LLC (the “Manager”), waived and/or reimbursed a portion of the Fund’s expenses. Without such waiver and/or reimbursement, the Fund’s performance would have been lower. The Manager is under no obligation to waive or reimburse or to continue waiving or reimbursing its fees after the applicable termination date. See Note 2 of the Notes to Financial Statements for additional information on waivers and reimbursements. 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 available to be paid to shareholders.

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) expenses related to transactions, including sales charges 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 shown below (which is based on a hypothetical investment of $1,000 invested on October 1, 2011 and held through March 31, 2012) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

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

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

Expense Example

	Actual						Hypothetical2
	Beginning Account Value October 1, 2011		Ending Account Value March 31, 2012		Expenses Paid During the Period1		Beginning Account Value October 1, 2011		Ending Account Value March 31, 2012		Expenses Paid During the Period1		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,170.00	$	3.85	$	1,000.00	$	1,021.45	$	3.59		0.71	%
Investor A	$	1,000.00	$	1,168.70	$	5.64	$	1,000.00	$	1,019.80	$	5.25		1.04	%
Investor B	$	1,000.00	$	1,162.00	$	11.67	$	1,000.00	$	1,014.20	$	10.88		2.16	%
Investor C	$	1,000.00	$	1,163.50	$	9.84	$	1,000.00	$	1,015.90	$	9.17		1.82	%
Class R	$	1,000.00	$	1,165.70	$	7.96	$	1,000.00	$	1,017.65	$	7.41		1.47	%

1	For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Because the Fund invests significantly in the Master Portfolios, the expense table example reflects the expenses of both the Fund and the Master Portfolios in which it invests.
2	Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 366.

6 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

The Benefits and Risks of Leveraging

The Master Total Return Portfolio may utilize leverage to seek to enhance its yield. However, this objective cannot be achieved in all interest rate environments.

The Master Total Return Portfolio may utilize leverage through entering into reverse repurchase agreements and treasury roll transactions. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by the Master Total Return Portfolio on its longer-term portfolio investments. To the extent that the total assets of the Master Total Return Portfolio (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Master Total Return Portfolio’s investors will benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the net assets. However, in order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be lower than if the Master Total Return Portfolio had not used leverage.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Master Total Return Portfolio pays higher short-term interest rates whereas the Master Total Return Portfolio’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Master Total Return Portfolio’s investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. As a result, changes in interest rates can influence the Master Total Return Portfolio’s net assets positively or negatively in addition to the impact on the Master Total Return Portfolio’s performance from leverage discussed above.

The use of leverage may enhance opportunities for increased income to the Master Total Return Portfolio, but as described above, it also creates risks as short- or long-term interest rates fluctuate. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Master Total Return Portfolio’s net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Master Total Return Portfolio’s net income will be less than if leverage had not been used. The Master Total Return Portfolio may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Master Total Return Portfolio to incur losses. The use of leverage may limit the Master Total Return Portfolio’s ability to invest in certain types of securities or use certain types of hedging strategies. The Master Total Return Portfolio will incur expenses in connection with the use of leverage, all of which are borne by the Master Total Return Portfolio investors and may reduce income.

Derivative Financial Instruments

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

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 7

Statement of Assets and Liabilities

March 31, 2012 (Unaudited)
Assets
Investments in Master Large Cap Core Portfolio (cost — $508,306,424)	$	601,989,386
Investments in Master Total Return Portfolio (cost — $363,446,160)		370,165,293
Investments in BlackRock Liquidity Funds, TempFund, Institutional Class, 0.14% (shares — 10,000,287; cost — $10,000,287)		10,000,287
Capital shares sold receivable		394,214
Prepaid expenses		27,572
Total assets		982,576,752
Liabilities
Capital shares redeemed payable		1,616,248
Investment advisory fees payable		110,473
Service and distribution fees payable		158,929
Officer’s fees payable		23,710
Other accrued expenses payable		439,756
Total liabilities		2,349,116
Net Assets	$	980,227,636
Net Assets Consist of
Paid-in capital	$	847,743,395
Undistributed net investment income		3,892,809
Accumulated net realized gain		28,189,337
Net unrealized appreciation/depreciation		100,402,095
Net Assets	$	980,227,636
Net Asset Value
Institutional — Based on net assets of $433,161,331 and 18,550,173 shares outstanding, 400 million shares authorized, $0.10 par value	$	23.35
Investor A — Based on net assets of $465,016,552 and 19,986,819 shares outstanding, 200 million shares authorized, $0.10 par value	$	23.27
Investor B — Based on net assets of $8,157,752 and 360,464 shares outstanding, 500 million shares authorized, $0.10 par value	$	22.63
Investor C — Based on net assets of $64,622,103 and 2,998,751 shares outstanding, 200 million shares authorized, $0.10 par value	$	21.55
Class R — Based on net assets of $9,269,898 and 416,931 shares outstanding, 500 million shares authorized, $0.10 par value	$	22.23

See Notes to Financial Statements.
8	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Statement of Operations

Six Months Ended March 31, 2012 (Unaudited)
Investment Income
Interest — affiliated	$	2,920
Other income		387
Net investment income allocated from the Master Portfolios:
Interest — unaffiliated		10,248,613
Dividends — unaffiliated		6,952,010
Securities lending — affiliated		189,016
Dividends — affiliated		35,646
Interest — affiliated		44
Total expenses		(2,517,554	)
Less fees waived		1,934
Total income		14,913,016
Expenses
Investment advisory		2,292,819
Service — Investor A		564,467
Service and distribution — Investor B		43,108
Service and distribution — Investor C		306,413
Service and distribution — Class R		22,184
Transfer agent — Institutional		232,935
Transfer agent — Investor A		358,152
Transfer agent — Investor B		22,950
Transfer agent — Investor C		58,038
Transfer agent — Class R		14,973
Printing		75,265
Registration		39,236
Professional		39,205
Officer		19,000
Custodian		1,636
Miscellaneous		18,951
Total expenses		4,109,332
Less fees waived by advisor		(1,635,109	)
Total expenses after fees waived		2,474,223
Net investment income		12,438,793
Realized and Unrealized Gain (Loss) Allocated from the Master Portfolios
Net realized gain from investments, financial futures contracts, options written, swaps, borrowed bonds and foreign currency transactions		20,114,567
Net change in unrealized appreciation/depreciation on investments, financial futures contracts, options written, swaps, borrowed bonds and foreign currency transactions		134,113,214
Total realized and unrealized gain		154,227,781
Net Increase in Net Assets Resulting from Operations	$	166,666,574

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	9

Statements of Changes in Net Assets

Increase (Decrease) in Net Assets:	Six Months Ended March 31, 2012 (Unaudited)			Year Ended September 30, 2011
Operations
Net investment income	$	12,438,793		$	23,367,158
Net realized gain		20,114,567			94,751,693
Net change in unrealized appreciation/depreciation		134,113,214			(92,806,045	)
Net increase in net assets resulting from operations		166,666,574			25,312,806
Dividends to Shareholders From
Net investment income:
Institutional		(5,872,909	)		(12,488,493	)
Investor A		(4,151,830	)		(9,251,539	)
Investor B		(32,756	)		(107,449	)
Investor C		(375,144	)		(802,573	)
Class R		(67,395	)		(149,993	)
Decrease in net assets resulting from dividends to shareholders		(10,500,034	)		(22,800,047	)
Capital Share Transactions
Net decrease in net assets derived from capital share transactions		(187,728,160	)		(111,659,303	)
Net Assets
Total decrease in net assets		(31,561,620	)		(109,146,544	)
Beginning of period		1,011,789,256			1,120,935,800
End of period	$	980,227,636		$	1,011,789,256
Undistributed net investment income	$	3,892,809		$	1,954,050

See Notes to Financial Statements.
10	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Financial Highlights

	Institutional
	Six Months Ended March 31, 2012 (Unaudited)
				Year Ended September 30,
				2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of period	$	20.18		$	20.28		$	19.17		$	21.96		$	29.29		$	27.71
Net investment income1		0.28			0.51			0.46			0.54			0.71			0.71
Net realized and unrealized gain (loss)		3.13			(0.13	)		1.20			(1.60	)		(5.31	)		2.98
Net increase (decrease) from investment operations		3.41			0.38			1.66			(1.06	)		(4.60	)		3.69
Dividends and distributions from:
Net investment income		(0.24	)		(0.48	)		(0.55	)		(0.62	)		(0.76	)		(0.77	)
Net realized gain		—			—			—			(1.11	)		(1.97	)		(1.34	)
Total dividends and distributions		(0.24	)		(0.48	)		(0.55	)		(1.73	)		(2.73	)		(2.11	)
Net asset value, end of period	$	23.35		$	20.18		$	20.28		$	19.17		$	21.96		$	29.29
Total Investment Return2
Based on net asset value		17.00	%3		1.67	%		8.75	%4		(3.53	)%5		(16.99	)%		13.85	%
Ratios to Average Net Assets6
Total expenses		1.02	%7		1.07	%		1.08	%		0.85	%		0.58	%		0.57	%
Total expenses after fees waived		0.71	%7		0.76	%		0.76	%		0.64	%		0.56	%		0.55	%
Net investment income		2.54	%7		2.33	%		2.28	%		3.12	%		2.72	%		2.50	%
Supplemental Data
Net assets, end of period (000)	$	433,161		$	511,458		$	547,721		$	626,711		$	806,612		$	1,271,031
Portfolio turnover of the Fund8		—			—			—			94	%9		27	%		22	%
Portfolio turnover of the Master Total Return Portfolio		616	%10		1,771	%11		1,754	%12		708	%13		—			—
Portfolio turnover of the Master Large Cap Core Portfolio		59	%		129	%		173	%		168	%14		—			—

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	Aggregate total investment return.
4	Includes proceeds received from a settlement of litigation, through its investment in Master Large Cap Core Portfolio, which impacted the Fund’s total return. Not including these proceeds, the total return would have been 8.32%.
5	Includes proceeds received from a settlement of litigation, through its investment in Master Large Cap Core Portfolio, which impacted the Fund’s total return. Not including these proceeds, the total return would have been (3.88)%.
6	Includes the Fund’s share of the Master Portfolios’ allocated expenses and/or net investment income.
7	Annualized.
8	Excludes transactions in the Master Portfolios.
9	Represents portfolio turnover for the period October 1, 2008 to January 30, 2009.
10	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 496%.
11	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,379%.
12	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,248%.
13	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
14	Represents portfolio turnover for the period November 1, 2008 to September 30, 2009.

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	11

Financial Highlights (continued)

	Investor A
	Six Months Ended March 31, 2012 (Unaudited)
				Year Ended September 30,
				2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of period	$	20.10		$	20.21		$	19.11		$	21.88		$	29.19		$	27.63
Net investment income1		0.24			0.40			0.39			0.48			0.62			0.63
Net realized and unrealized gain (loss)		3.13			(0.10	)		1.19			(1.58	)		(5.28	)		2.97
Net increase (decrease) from investment operations		3.37			0.30			1.58			(1.10	)		(4.66	)		3.60
Dividends and distributions from:
Net investment income		(0.20	)		(0.41	)		(0.48	)		(0.56	)		(0.68	)		(0.70	)
Net realized gain		—			—			—			(1.11	)		(1.97	)		(1.34	)
Total dividends and distributions		(0.20	)		(0.41	)		(0.48	)		(1.67	)		(2.65	)		(2.04	)
Net asset value, end of period	$	23.27		$	20.10		$	20.21		$	19.11		$	21.88		$	29.19
Total Investment Return2
Based on net asset value		16.87	%3		1.31	%		8.38	%4		(3.79	)%5		(17.25	)%		13.52	%
Ratios to Average Net Assets6
Total expenses		1.34	%7		1.39	%		1.40	%		1.17	%		0.88	%		0.84	%
Total expenses after fees waived		1.04	%7		1.07	%		1.08	%		0.95	%		0.85	%		0.82	%
Net investment income		2.21	%7		1.83	%		1.96	%		2.80	%		2.42	%		2.23	%
Supplemental Data
Net assets, end of period (000)	$	465,017		$	426,819		$	488,087		$	529,120		$	655,429		$	913,955
Portfolio turnover of the Fund8		—			—			—			94	%9		27	%		22	%
Portfolio turnover of the Master Total Return Portfolio		616	%10		1,771	%11		1,754	%12		708	%13		—			—
Portfolio turnover of the Master Large Cap Core Portfolio		59	%		129	%		173	%		168	%14		—			—

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	Aggregate total investment return.
4	Includes proceeds received from a settlement of litigation, through its investment in Master Large Cap Core Portfolio, which impacted the Fund’s total return. Not including these proceeds, the total return would have been 7.95%.
5	Includes proceeds received from a settlement of litigation, through its investment in Master Large Cap Core Portfolio, which impacted the Fund’s total return. Not including these proceeds, the total return would have been (4.19)%.
6	Includes the Fund’s share of the Master Portfolios’ allocated expenses and/or net investment income.
7	Annualized.
8	Excludes transactions in the Master Portfolios.
9	Represents portfolio turnover for the period October 1, 2008 to January 30, 2009.
10	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 496%.
11	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,379%.
12	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,248%.
13	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
14	Represents portfolio turnover for the period November 1, 2008 to September 30, 2009.

See Notes to Financial Statements.
12	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Financial Highlights (continued)

	Investor B
	Six Months Ended March 31, 2012 (Unaudited)
				Year Ended September 30,
				2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of period	$	19.55		$	19.65		$	18.56		$	21.24		$	28.36		$	26.87
Net investment income1		0.11			0.18			0.20			0.32			0.39			0.39
Net realized and unrealized gain (loss)		3.05			(0.10	)		1.16			(1.55	)		(5.13	)		2.87
Net increase (decrease) from investment operations		3.16			0.08			1.36			(1.23	)		(4.74	)		3.26
Dividends and distributions from:
Net investment income		(0.08	)		(0.18	)		(0.27	)		(0.34	)		(0.41	)		(0.43	)
Net realized gain		—			—			—			(1.11	)		(1.97	)		(1.34	)
Total dividends and distributions		(0.08	)		(0.18	)		(0.27	)		(1.45	)		(2.38	)		(1.77	)
Net asset value, end of period	$	22.63		$	19.55		$	19.65		$	18.56		$	21.24		$	28.36
Total Investment Return2
Based on net asset value		16.20	%3		0.34	%		7.37	%4		(4.69	)%5		(17.96	)%		12.57	%
Ratios to Average Net Assets6
Total expenses		2.46	%7		2.36	%		2.34	%		2.09	%		1.75	%		1.67	%
Total expenses after fees waived		2.16	%7		2.04	%		2.02	%		1.90	%		1.73	%		1.65	%
Net investment income		1.10	%7		0.86	%		1.03	%		1.93	%		1.56	%		1.43	%
Supplemental Data
Net assets, end of period (000)	$	8,158		$	8,786		$	14,374		$	23,963		$	51,371		$	100,808
Portfolio turnover of the Fund8		—			—			—			94	%9		27	%		22	%
Portfolio turnover of the Master Total Return Portfolio		616	%10		1,771	%11		1,754	%12		708	%13		—			—
Portfolio turnover of the Master Large Cap Core Portfolio		59	%		129	%		173	%		168	%14		—			—

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	Aggregate total investment return.
4	Includes proceeds received from a settlement of litigation, through its investment in Master Large Cap Core Portfolio, which impacted the Fund’s total return. Not including these proceeds, the total return would have been 6.82%.
5	Includes proceeds received from a settlement of litigation, through its investment in Master Large Cap Core Portfolio, which impacted the Fund’s total return. Not including these proceeds, the total return would have been (5.10)%.
6	Includes the Fund’s share of the Master Portfolios’ allocated expenses and/or net investment income.
7	Annualized.
8	Excludes transactions in the Master Portfolios.
9	Represents portfolio turnover for the period October 1, 2008 to January 30, 2009.
10	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 496%.
11	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,379%.
12	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,248%.
13	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
14	Represents portfolio turnover for the period November 1, 2008 to September 30, 2009.

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	13

Financial Highlights (continued)

	Investor C
	Six Months Ended March 31, 2012 (Unaudited)
				Year Ended September 30,
				2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of period	$	18.64		$	18.77		$	17.79		$	20.51		$	27.52		$	26.17
Net investment income1		0.14			0.21			0.21			0.32			0.39			0.39
Net realized and unrealized gain (loss)		2.90			(0.08	)		1.12			(1.50	)		(4.95	)		2.79
Net increase (decrease) from investment operations		3.04			0.13			1.33			(1.18	)		(4.56	)		3.18
Dividends and distributions from:
Net investment income		(0.13	)		(0.26	)		(0.35	)		(0.43	)		(0.48	)		(0.49	)
Net realized gain		—			—			—			(1.11	)		(1.97	)		(1.34	)
Total dividends and distributions		(0.13	)		(0.26	)		(0.35	)		(1.54	)		(2.45	)		(1.83	)
Net asset value, end of period	$	21.55		$	18.64		$	18.77		$	17.79		$	20.51		$	27.52
Total Investment Return2
Based on net asset value		16.35	%3		0.55	%		7.53	%4		(4.56	)%5		(17.90	)%		12.62	%
Ratios to Average Net Assets6
Total expenses		2.13	%7		2.18	%		2.20	%		1.97	%		1.67	%		1.63	%
Total expenses after fees waived		1.82	%7		1.87	%		1.88	%		1.76	%		1.65	%		1.60	%
Net investment income		1.42	%7		1.04	%		1.16	%		2.00	%		1.63	%		1.45	%
Supplemental Data
Net assets, end of period (000)	$	64,622		$	56,608		$	61,017		$	60,461		$	72,694		$	100,572
Portfolio turnover of the Fund8		—			—			—			94	%9		27	%		22	%
Portfolio turnover of the Master Total Return Portfolio		616	%10		1,771	%11		1,754	%12		708	%13		—			—
Portfolio turnover of the Master Large Cap Core Portfolio		59	%		129	%		173	%		168	%14		—			—

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	Aggregate total investment return.
4	Includes proceeds received from a settlement of litigation, through its investment in Master Large Cap Core Portfolio, which impacted the Fund’s total return. Not including these proceeds, the total return would have been 7.12%.
5	Includes proceeds received from a settlement of litigation, through its investment in Master Large Cap Core Portfolio, which impacted the Fund’s total return. Not including these proceeds, the total return would have been (4.94)%.
6	Includes the Fund’s share of the Master Portfolios’ allocated expenses and/or net investment income.
7	Annualized.
8	Excludes transactions in the Master Portfolios.
9	Represents portfolio turnover for the period October 1, 2008 to January 30, 2009.
10	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 496%.
11	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,379%.
12	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,248%.
13	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
14	Represents portfolio turnover for the period November 1, 2008 to September 30, 2009.

See Notes to Financial Statements.
14	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Financial Highlights (concluded)

	Class R
	Six Months Ended March 31, 2012 (Unaudited)
				Year Ended September 30,
				2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of period	$	19.22		$	19.33		$	18.31		$	21.06		$	28.22		$	26.81
Net investment income1		0.18			0.30			0.29			0.38			0.49			0.50
Net realized and unrealized gain (loss)		2.99			(0.09	)		1.14			(1.54	)		(5.08	)		2.90
Net increase (decrease) from investment operations		3.17			0.21			1.43			(1.16	)		(4.59	)		3.40
Dividends and distributions from:
Net investment income		(0.16	)		(0.32	)		(0.41	)		(0.48	)		(0.60	)		(0.65	)
Net realized gain		—			—			—			(1.11	)		(1.97	)		(1.34	)
Total dividends and distributions		(0.16	)		(0.32	)		(0.41	)		(1.59	)		(2.57	)		(1.99	)
Net asset value, end of period	$	22.23		$	19.22		$	19.33		$	18.31		$	21.06		$	28.22
Total Investment Return2
Based on net asset value		16.57	%3		0.96	%		7.87	%4		(4.25	)%5		(17.59	)%		13.18	%
Ratios to Average Net Assets6
Total expenses		1.77	%7		1.77	%		1.84	%		1.64	%		1.31	%		1.16	%
Total expenses after fees waived		1.47	%7		1.46	%		1.52	%		1.42	%		1.29	%		1.14	%
Net investment income		1.78	%7		1.44	%		1.51	%		2.29	%		1.98	%		1.87	%
Supplemental Data
Net assets, end of period (000)	$	9,270		$	8,118		$	9,737		$	10,194		$	9,655		$	10,117
Portfolio turnover of the Fund8		—			—			—			94	%9		27	%		22	%
Portfolio turnover of the Master Total Return Portfolio		616	%10		1,771	%11		1,754	%12		708	%13		—			—
Portfolio turnover of the Master Large Cap Core Portfolio		59	%		129	%		173	%		168	%14		—			—

1	Based on average shares outstanding.
2	Where applicable, total investment returns include the reinvestment of dividends and distributions.
3	Aggregate total investment return.
4	Includes proceeds received from a settlement of litigation, through its investment in Master Large Cap Core Portfolio, which impacted the Fund’s total return. Not including these proceeds, the total return would have been 7.53%.
5	Includes proceeds received from a settlement of litigation, through its investment in Master Large Cap Core Portfolio, which impacted the Fund’s total return. Not including these proceeds, the total return would have been (4.62)%.
6	Includes the Fund’s share of the Master Portfolios’ allocated expenses and/or net investment income.
7	Annualized.
8	Excludes transactions in the Master Portfolios.
9	Represents portfolio turnover for the period October 1, 2008 to January 30, 2009.
10	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 496%.
11	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,379%.
12	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,248%.
13	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
14	Represents portfolio turnover for the period November 1, 2008 to September 30, 2009.

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	15

Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies:

BlackRock Balanced Capital Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Fund is organized as a Maryland corporation. The Fund seeks to achieve its investment objective by investing the fixed income portion of its assets in Master Total Return Portfolio (the “Master Total Return Portfolio”) of Master Bond LLC, a mutual fund that has an investment objective and strategy consistent with that of the fixed income portion of the Fund and investing the equity portion of its assets in Master Large Cap Core Portfolio (the “Master Large Cap Core Portfolio”) of Master Large Cap Series LLC, a mutual fund that has an investment objective and strategy consistent with that of the equity portion of the Fund. Master Total Return Portfolio and Master Large Cap Core Portfolio are collectively referred to as the “Master Portfolios.” The value of the Fund’s investment in the Master Portfolios reflects the Fund’s proportionate interest in the net assets of the Master Portfolios. The percentages of the Master Large Cap Core Portfolio and Master Total Return Portfolio owned by the Fund at March 31, 2012 were 23.8% and 11.0%, respectively. The performance of the Fund is directly affected by the performance of the Master Portfolios. The financial statements of the Master Portfolios, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements. The Fund’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Fund offers multiple classes of shares. 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. Investor B and Investor C Shares may be subject to a CDSC. Class R Shares are sold without a sales charge and only to certain retirement and other 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 certain 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 eight years. Investor B Shares are only available through exchanges, dividend reinvestment by existing shareholders or for purchase by certain qualified employee benefit plans. 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).

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

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

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

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

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

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

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks 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 March 31, 2012 in determining the fair valuation of the Fund’s investments:

Valuation Inputs	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Short-Term Investments	$	10,000,287		—		—	$	10,000,287

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

16 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

Notes to Financial Statements (continued)

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

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

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

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

The Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s US federal tax returns remains open for each of the four years ended September 30, 2011. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

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

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

2. Investment Advisory Agreement and Other Transactions with Affiliates:

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

The Fund entered into an Investment Advisory Agreement with the Manager, the Fund’s investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of the Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. For such services, the Fund pays the Manager a monthly fee based on a percentage of the Fund’s average daily net assets at the following annual rates:

Average Daily Net Assets	Investment Advisory Fees
First $250 million		0.500	%
$250 million – $300 million		0.450	%
$300 million – $400 million		0.425	%
Greater than $400 million		0.400	%

The Fund also pays an investment advisory fee to the Manager, which is the investment advisor of Master Total Return Portfolio and Master Large Cap Core Portfolio, to the extent it invests in the Master Total Return Portfolio and Master Large Cap Core Portfolio. The Manager has contractually agreed to waive its investment advisory fee in the amount the Fund pays in connection with its investments in the Master Portfolios, which is included in fees waived by advisor in the Statement of Operations.

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:

Affiliate	Shares Held at September 30, 2011		Net Activity		Shares Held at March 31, 2012		Income
BlackRock Liquidity TempFund, Institutional Class		4,080,774		5,919,513		10,000,287	$	2,920

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Fund’s investment in other affiliated investment companies, if any. This amount is shown as, or included in, fees waived by advisor in the Statement of Operations.

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

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 17

Notes to Financial Statements (continued)

The Fund entered into a Distribution Agreement and Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the shares of the Fund as follows:

	Service Fee			Distribution 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 BRIL, broker-dealers and BRIL provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to Investor A, Investor B, Investor C and Class R shareholders.

For the six months ended March 31, 2012, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares, which totaled $3,002.

For the six months ended March 31, 2012, affiliates received the following CDSCs:

Investor B	$	2,575
Investor C	$	797

The Manager maintains a call center, which is responsible for providing certain shareholder services to the Fund, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the six months ended March 31, 2012, the Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:

Institutional	$	4,458
Investor A	$	6,588
Investor B	$	390
Investor C	$	882
Class R	$	66

During the six months ended March 31, 2012, the Fund received a reimbursement of $69 from an affiliate, which is included in capital share transactions on the Statements of Changes in Net Assets, relating to processing errors.

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

3. Borrowings:

The Fund, 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 2012 and was subsequently renewed until November 2013. The Fund may borrow under the credit agreement to fund shareholder redemptions. Effective November 2010 to November 2011, the credit agreement had the following terms: a commitment fee of 0.08% per annum based on the Fund’s pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. In addition, the Fund paid administration and arrangement fees which were allocated to the Fund based on its net assets as of October 31, 2010. The credit agreement, which expired in November 2011, was renewed until November 2012. Effective November 2011 to November 2012, the credit agreement has with the following terms: a commitment fee of 0.065% per annum based on the Fund’s pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Fund paid administration and arrangement fees which were allocated to the Fund based on its net assets as of October 31, 2011. The Fund did not borrow under the credit agreement during the six months ended March 31, 2012.

4. Income Tax Information:

As of September 30, 2011, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration date as follows:

Expires September 30,
2018	$	4,651,676

Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Fund after September 30, 2011 will not be subject to expiration. In addition any such losses must be utilized prior to the losses incurred in pre-enactment taxable years.

18 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

Notes to Financial Statements (concluded)

5. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Six Months Ended March 31, 2012						Year Ended September 30, 2011
	Shares			Amount			Shares			Amount
Institutional
Shares sold		780,840		$	17,402,335			1,158,426		$	25,597,416
Shares issued to shareholders in reinvestment of dividends and distributions		239,018			5,098,135			488,160			10,847,909
Shares redeemed		(7,819,093	)		(179,997,283	)		(3,307,829	)		(72,519,465	)
Net decrease		(6,799,235	)	$	(157,496,813	)		(1,661,243	)	$	(36,074,140	)
Investor A
Shares sold and automatic conversion of shares		304,627		$	6,730,530			770,278		$	16,870,066
Shares issued to shareholders in reinvestment of dividends and distributions		168,238			3,578,328			360,637			7,983,661
Shares redeemed		(1,717,419	)		(37,688,200	)		(4,054,903	)		(88,449,400	)
Net decrease		(1,244,554	)	$	(27,379,342	)		(2,923,988	)	$	(63,595,673	)
Investor B
Shares sold		5,586		$	119,852			13,683		$	292,143
Shares issued to shareholders in reinvestment of dividends and distributions		1,290			26,763			4,128			88,587
Shares redeemed and automatic conversion of shares		(95,735	)		(2,045,660	)		(300,093	)		(6,371,328	)
Net decrease		(88,859	)	$	(1,899,045	)		(282,282	)	$	(5,990,598	)
Investor C
Shares sold		277,766		$	5,597,820			324,297		$	6,590,893
Shares issued to shareholders in reinvestment of dividends and distributions		16,317			322,087			33,421			688,346
Shares redeemed		(332,961	)		(6,757,324	)		(571,434	)		(11,571,863	)
Net decrease		(38,878	)	$	(837,417	)		(213,716	)	$	(4,292,624	)
Class R
Shares sold		64,483		$	1,348,695			176,442		$	3,675,542
Shares issued to shareholders in reinvestment of dividends and distributions		3,296			67,071			7,078			149,993
Shares redeemed		(73,169	)		(1,531,309	)		(264,842	)		(5,531,803	)
Net decrease		(5,390	)	$	(115,543	)		(81,322	)	$	(1,706,268	)
Total Net Decrease		(8,176,916	)	$	(187,728,160	)		(5,162,551	)	$	(111,659,303	)

6. Subsequent Events:

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

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 19

Portfolio Summary	Master Large Cap Core Portfolio
As of March 31, 2012

Ten Largest Holdings	Percent of Long-Term Investments
Apple, Inc.		3	%
Chevron Corp.		3
Pfizer, Inc.		2
Exxon Mobil Corp.		2
ConocoPhillips		2
UnitedHealth Group, Inc.		2
Abbott Laboratories		1
Apache Corp.		1
Eli Lilly & Co.		1
General Dynamics Corp.		1
Sector Allocations	Percent of Long-Term Investments
Information Technology		20	%
Health Care		16
Consumer Discretionary		15
Energy		14
Industrials		12
Consumer Staples		8
Financials		6
Materials		4
Utilities		3
Telecommunication Services		2

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

20 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

Schedule of Investments March 31, 2012 (Unaudited)	Master Large Cap Core Portfolio
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Consumer Discretionary — 15.2%
Auto Components — 0.7%
Lear Corp.		390,000	$	18,131,100
Diversified Consumer Services — 2.5%
Apollo Group, Inc., Class A (a)		670,000		25,888,800
Career Education Corp. (a)		820,000		6,609,200
H&R Block, Inc.		400,000		6,588,000
ITT Educational Services, Inc. (a)(b)		380,000		25,133,200
				64,219,200
Hotels, Restaurants & Leisure — 0.9%
Brinker International, Inc.		10,000		275,500
Wyndham Worldwide Corp.		480,000		22,324,800
				22,600,300
Internet & Catalog Retail — 1.0%
Expedia, Inc.		740,000		24,745,600
Media — 4.4%
DISH Network Corp., Class A (a)		810,000		26,673,300
Gannett Co., Inc.		1,690,000		25,907,700
The Interpublic Group of Cos., Inc.		2,430,000		27,726,300
Time Warner Cable, Inc.		370,000		30,155,000
				110,462,300
Multiline Retail — 1.1%
Dillard’s, Inc., Class A		420,000		26,468,400
Specialty Retail — 4.6%
Best Buy Co., Inc.		1,070,000		25,337,600
Foot Locker, Inc.		830,000		25,771,500
GameStop Corp., Class A (b)		1,150,000		25,116,000
Limited Brands, Inc.		310,000		14,880,000
PetSmart, Inc.		460,000		26,321,200
				117,426,300
Total Consumer Discretionary				384,053,200
Consumer Staples — 8.0%
Beverages — 1.9%
Constellation Brands, Inc., Class A (a)		1,100,000		25,949,000
Dr. Pepper Snapple Group, Inc.		530,000		21,311,300
				47,260,300
Food & Staples Retailing — 2.2%
The Kroger Co.		1,240,000		30,045,200
Safeway, Inc.		1,340,000		27,081,400
				57,126,600
Food Products — 1.9%
ConAgra Foods, Inc.		980,000		25,734,800
Smithfield Foods, Inc. (a)		990,000		21,809,700
				47,544,500
Household Products — 0.4%
The Procter & Gamble Co.		140,000		9,409,400
Personal Products — 0.7%
Herbalife Ltd.		270,000		18,581,400
Tobacco — 0.9%
Philip Morris International, Inc.		250,000		22,152,500
Total Consumer Staples				202,074,700
Common Stocks	Shares		Value
Energy — 14.2%
Energy Equipment & Services — 0.7%
Nabors Industries Ltd. (a)		1,040,000	$	18,189,600
Oil, Gas & Consumable Fuels — 13.5%
Apache Corp.		340,000		34,149,600
Chevron Corp.		600,000		64,344,000
ConocoPhillips		570,000		43,325,700
Exxon Mobil Corp.		670,000		58,109,100
HollyFrontier Corp.		600,000		19,290,000
Marathon Oil Corp.		850,000		26,945,000
Marathon Petroleum Corp.		520,000		22,547,200
Murphy Oil Corp.		330,000		18,569,100
Tesoro Corp. (a)		990,000		26,571,600
Valero Energy Corp.		1,120,000		28,862,400
				342,713,700
Total Energy				360,903,300
Financials — 5.7%
Commercial Banks — 0.2%
Wells Fargo & Co.		140,000		4,779,600
Consumer Finance — 1.1%
Discover Financial Services		860,000		28,672,400
Diversified Financial Services — 1.2%
JPMorgan Chase & Co.		150,000		6,897,000
The NASDAQ OMX Group, Inc. (a)		860,000		22,274,000
				29,171,000
Insurance — 3.2%
Allied World Assurance Co. Holdings AG		110,000		7,553,700
American Financial Group, Inc.		130,000		5,015,400
Assurant, Inc.		630,000		25,515,000
Protective Life Corp.		280,000		8,293,600
Prudential Financial, Inc.		130,000		8,240,700
Reinsurance Group of America, Inc.		60,000		3,568,200
Unum Group		950,000		23,256,000
				81,442,600
Total Financials				144,065,600
Health Care — 16.5%
Biotechnology — 0.2%
Myriad Genetics, Inc. (a)		250,000		5,915,000
Health Care Equipment & Supplies — 1.1%
Zimmer Holdings, Inc.		430,000		27,640,400
Health Care Providers & Services — 8.8%
Aetna, Inc.		620,000		31,099,200
AmerisourceBergen Corp.		710,000		28,172,800
Cardinal Health, Inc.		460,000		19,830,600
Coventry Health Care, Inc.		760,000		27,033,200
Humana, Inc.		190,000		17,571,200
McKesson Corp.		330,000		28,964,100
UnitedHealth Group, Inc.		670,000		39,489,800
WellPoint, Inc.		420,000		30,996,000
				223,156,900
Pharmaceuticals — 6.4%
Abbott Laboratories		580,000		35,548,200
Eli Lilly & Co.		820,000		33,021,400
Forest Laboratories, Inc. (a)(b)		780,000		27,058,200
Johnson & Johnson		120,000		7,915,200
Pfizer, Inc.		2,570,000		58,236,200
				161,779,200
Total Health Care				418,491,500

See Notes to Financial Statements.
BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	21

Schedule of Investments (continued)	Master Large Cap Core Portfolio
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Industrials — 11.7%
Aerospace & Defense — 4.6%
General Dynamics Corp.		430,000	$	31,553,400
L-3 Communications Holdings, Inc.		380,000		26,892,600
Lockheed Martin Corp.		330,000		29,653,800
Northrop Grumman Corp.		460,000		28,096,800
				116,196,600
Commercial Services & Supplies — 0.2%
Corrections Corp. of America (a)		140,000		3,823,400
Construction & Engineering — 1.4%
Chicago Bridge & Iron Co. NV		530,000		22,890,700
URS Corp.		320,000		13,606,400
				36,497,100
Industrial Conglomerates — 1.8%
General Electric Co.		710,000		14,249,700
Tyco International Ltd.		540,000		30,337,200
				44,586,900
Machinery — 3.7%
AGCO Corp. (a)		540,000		25,493,400
CNH Global NV (a)		130,000		5,161,000
ITT Corp.		1,120,000		25,692,800
Oshkosh Corp. (a)		430,000		9,963,100
Parker Hannifin Corp.		330,000		27,901,500
				94,211,800
Total Industrials				295,315,800
Information Technology — 20.3%
Computers & Peripherals — 7.3%
Apple, Inc. (a)		130,000		77,931,100
Dell, Inc. (a)		1,830,000		30,378,000
Lexmark International, Inc., Class A		780,000		25,927,200
Seagate Technology Plc		910,000		24,524,500
Western Digital Corp. (a)		640,000		26,489,600
				185,250,400
Electronic Equipment, Instruments & Components — 4.2%
Avnet, Inc. (a)		740,000		26,928,600
Ingram Micro, Inc., Class A (a)		650,000		12,064,000
Jabil Circuit, Inc.		1,030,000		25,873,600
Tech Data Corp. (a)		300,000		16,278,000
Vishay Intertechnology, Inc. (a)		2,050,000		24,928,000
				106,072,200
Internet Software & Services — 0.9%
AOL, Inc. (a)		650,000		12,330,500
Google, Inc., Class A (a)		10,000		6,412,400
IAC/InterActiveCorp.		110,000		5,399,900
				24,142,800
IT Services — 5.8%
Accenture Plc, Class A		50,000		3,225,000
Alliance Data Systems Corp. (a)(b)		210,000		26,451,600
Computer Sciences Corp.		380,000		11,377,200
Global Payments, Inc.		490,000		23,260,300
International Business Machines Corp.		110,000		22,951,500
Lender Processing Services, Inc.		860,000		22,360,000
SAIC, Inc. (a)		730,000		9,636,000
The Western Union Co.		1,520,000		26,752,000
				146,013,600
Software — 2.1%
Microsoft Corp.		790,000		25,477,500
Symantec Corp. (a)		1,510,000		28,237,000
				53,714,500
Total Information Technology				515,193,500
Common Stocks	Shares		Value
Materials — 3.7%
Chemicals — 2.2%
CF Industries Holdings, Inc.		150,000	$	27,397,500
Cytec Industries, Inc.		450,000		27,355,500
				54,753,000
Paper & Forest Products — 1.5%
Domtar Corp.		270,000		25,752,600
International Paper Co.		390,000		13,689,000
				39,441,600
Total Materials				94,194,600
Telecommunication Services — 2.0%
Diversified Telecommunication Services — 1.0%
AT&T, Inc.		240,000		7,495,200
Verizon Communications, Inc.		440,000		16,821,200
				24,316,400
Wireless Telecommunication Services — 1.0%
MetroPCS Communications, Inc. (a)		2,830,000		25,526,600
Total Telecommunication Services				49,843,000
Utilities — 2.8%
Independent Power Producers & Energy Traders — 1.8%
The AES Corp. (a)		2,110,000		27,577,700
NRG Energy, Inc. (a)		1,200,000		18,804,000
				46,381,700
Multi-Utilities — 1.0%
Ameren Corp.		790,000		25,738,200
Total Utilities				72,119,900
Total Long-Term Investments (Cost — $2,090,590,329) — 100.1%				2,536,255,100
Short-Term Securities	Beneficial Interest (000)
BlackRock Liquidity Series, LLC Money Market Series, 0.24% (c)(d)(e)	$	87,183		87,182,715
Total Short-Term Securities (Cost — $87,182,715) — 3.5%				87,182,715
Total Investments (Cost — $2,177,773,044*) — 103.6%				2,623,437,815
Liabilities in Excess of Other Assets — (3.6)%				(90,753,442	)
Net Assets — 100.0%			$	2,532,684,373

* As of March 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	2,194,281,551
Gross unrealized appreciation	$	492,512,247
Gross unrealized depreciation		(63,355,983	)
Net unrealized appreciation	$	429,156,264

(a)	Non-income producing security.
(b)	Security, or a portion of security, is on loan.

See Notes to Financial Statements.
22	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Schedule of Investments (concluded) Master Large Cap Core Portfolio

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

Affiliate	Shares/ Beneficial Interest Held at September 30, 2011		Net Activity		Shares/ Beneficial Interest Held at March 31, 2012		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		—		—		—	$	790
BlackRock Liquidity Series, LLC Money Market Series	$	72,082,895	$	15,099,820	$	87,182,715	$	768,236

(d)	Represents the current yield as of report date.
(e)	Security was purchased with the cash collateral from loaned securities.
•	For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the sector and industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Portfolio management. These definitions may not apply for purposes of this report, which may combine such sector and industry sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
	•	Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Portfolio’s own assumptions used in determining the fair value of investments)
	Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Portfolio’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 March 31, 2012 in determining the fair valuation of the Portfolio’s investments:

Valuation Inputs	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments1	$	2,536,255,100		—		—	$	2,536,255,100
Short-Term Securities		—	$	87,182,715		—		87,182,715
Total	$	2,536,255,100	$	87,182,715		—	$	2,623,437,815

¹ See above Schedule of Investments for values in each sector and industry.

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	23

Statement of Assets and Liabilities Master Large Cap Core Portfolio

March 31, 2012 (Unaudited)
Assets
Investments at value — unaffiliated1,2	$	2,536,255,100
Investments at value — affiliated3		87,182,715
Investments sold receivable		11,860,184
Dividends receivable — unaffiliated		2,035,752
Securities lending income receivable — affiliated		304,519
Prepaid expenses		33,801
Total assets		2,637,672,071
Liabilities
Collateral on securities loaned, at value		87,182,715
Bank overdraft		4,592,397
Investments purchased payable		7,419,604
Investment advisory fees payable		1,168,061
Other affiliates payable		17,880
Directors’ fees payable		32,921
Withdrawals payable to investors		4,392,663
Other accrued expenses payable		181,457
Total liabilities		104,987,698
Net Assets	$	2,532,684,373
Net Assets Consist of
Investors’ capital	$	2,087,019,602
Net unrealized appreciation/depreciation		445,664,771
Net Assets	$	2,532,684,373
1 Investments at cost — unaffiliated	$	2,090,590,329
2 Securities loaned at value	$	84,592,325
3 Investments at cost — affiliated	$	87,182,715

See Notes to Financial Statements.
24	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Statement of Operations Master Large Cap Core Portfolio

Six Months Ended March 31, 2012 (Unaudited)
Investment Income
Dividends — unaffiliated	$	28,857,623
Foreign tax withheld		(553,988	)
Securities lending — affiliated		768,236
Dividends — affiliated		790
Total income		29,072,661
Expenses
Investment advisory		6,032,059
Accounting services		245,110
Custodian		92,980
Professional		56,088
Directors		38,234
Printing		6,916
Miscellaneous		29,434
Total expenses		6,500,821
Less fees waived by advisor		(689	)
Total expenses after fees waived		6,500,132
Net investment income		22,572,529
Realized and Unrealized Gain
Net realized gain from investments		84,596,612
Net change in unrealized appreciation/depreciation on investments		517,981,627
Total realized and unrealized gain		602,578,239
Net Increase in Net Assets Resulting from Operations	$	625,150,768

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	25

Statements of Changes in Net Assets Master Large Cap Core Portfolio

Increase (Decrease) in Net Assets:	Six Months Ended March 31, 2012 (Unaudited)			Year Ended September 30, 2011
Operations
Net investment income	$	22,572,529		$	36,709,241
Net realized gain		84,596,612			416,733,032
Net change in unrealized appreciation/depreciation		517,981,627			(385,934,163	)
Net increase in net assets resulting from operations		625,150,768			67,508,110
Capital Transactions
Proceeds from contributions		232,807,352			406,268,108
Value of withdrawals		(631,987,324	)		(1,376,548,462	)
Net decrease in net assets derived from capital transactions		(399,179,972	)		(970,280,354	)
Net Assets
Total increase (decrease) in net assets		225,970,796			(902,772,244	)
Beginning of period		2,306,713,577			3,209,485,821
End of period	$	2,532,684,373		$	2,306,713,577

Financial Highlights Master Large Cap Core Portfolio

	Six Months Ended March 31, 2012 (Unaudited)									Period November 1, 2008 to September 30, 2009
				Year Ended September 30,
													Year Ended October 31,
				2011			2010						2008			2007			2006
Total Investment Return
Total investment return		27.98	%1		(1.61	)%		6.16	%		12.63	%1,2		(38.84	)%		13.94	%		17.32	%
Ratios to Average Net Assets
Total expenses		0.51	%3		0.49	%		0.49	%		0.50	%3		0.50	%		0.49	%		0.49	%
Total expenses after fees waived		0.51	%3		0.49	%		0.49	%		0.50	%3		0.50	%		0.49	%		0.49	%
Net investment income		1.76	%3		1.13	%		1.11	%		1.56	%3		0.93	%		0.63	%		0.58	%
Supplemental Data
Net assets, end of period (000)	$	2,532,684		$	2,306,714		$	3,209,486		$	3,946,322		$	2,843,515		$	5,649,731		$	3,876,639
Portfolio turnover		59	%		129	%		173	%		168	%		109	%		96	%		88	%

1	Aggregate total investment return.
2	Includes proceeds received from a settlement of litigation, which impacted the Portfolio’s total investment return. Not including these proceeds, the Portfolio’s total investment return would have been 12.39%.
3	Annualized.

See Notes to Financial Statements.
26	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Notes to Financial Statements (Unaudited) Master Large Cap Core Portfolio

1. Organization and Significant Accounting Policies:

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

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

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

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

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or if a price is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that the Portfolio 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.

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

Securities Lending: The Portfolio may lend securities to approved borrowers, such as banks, brokers and other financial institutions. The borrower pledges cash, securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral, which will be maintained at all times in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Portfolio and any additional required collateral is delivered to the Portfolio on the next business day. Securities lending income, as disclosed in the Statement of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, the Portfolio earns dividend or interest income on the securities loaned but does not receive dividend or interest income on the securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. In the event that the borrower defaults on its obligation to return borrowed securities because of insolvency or for any other reason, the Portfolio could experience delays and costs in gaining access to the collateral. The Portfolio also could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the six months ended March 31, 2012, any securities on loan were collateralized by cash.

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

The Portfolio files US federal and various state and local tax returns. The statute of limitations on the Portfolios’ US federal tax returns remains open for each of the two years ended September 30, 2011, the period ended September 30, 2009 and the year ended October 31, 2008. The statute of

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 27

Notes to Financial Statements (continued) Master Large Cap Core Portfolio

limitations on the portfolios’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standard: In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed as well as disclosure of the level in the fair value hierarchy of assets and liabilities not recorded at fair value but where fair value is disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Portfolio’s financial statements and disclosures.

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

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

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

2. Investment Advisory Agreement and Other Transactions with Affiliates:

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

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

Average Daily Net Assets	Rate
Not exceeding $1 billion	0.50	%
In excess of $1 billion but not exceeding $5 billion	0.45	%
In excess of $5 billion	0.40	%

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Portfolio pays to the Manager indirectly through its investment in affiliated money market funds, however the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Portfolio’s investment in other affiliated investment companies, if any. This amount is shown as, or included in, fees waived by advisor in the Statement of Operations.

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

For the six months ended March 31, 2012, the Portfolio reimbursed the Manager $19,917 for certain accounting services, which are included in accounting services in the Statement of Operations.

The Portfolio received an exemptive order from the SEC permitting it, among other things, to pay an affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and has retained BIM as the securities lending agent. BIM may, on behalf of the Portfolio, invest cash collateral received by the Portfolio for such loans, among other things, in a private investment company managed by the Manager or in registered money market funds advised by the Manager or its affiliates. As securities lending agent, BIM is responsible for all transaction fees and other operational costs relating to securities lending activities, other than extraordinary expenses. BIM does not receive any fees for managing the cash collateral. The market value of securities on loan and the value of the related collateral, if applicable, are shown in the Statement of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral invested by BIM is disclosed in the Schedule of Investments, if any. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of rebates paid to, or fees paid by, borrowers of securities. The Portfolio retains 65% of securities lending income and pays a fee to BIM equal to 35% of such income. The share of income earned by the Portfolio on the reinvestment of cash collateral is shown as securities lending — affiliated in the Statement of Operations. For the six months ended March 31, 2012, BIM received $413,516 in securities lending agent fees related to securities lending activities for the Portfolio.

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

28 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

Notes to Financial Statements (concluded) Master Large Cap Core Portfolio

3. Investments:

Purchases and sales of investments, excluding short-term securities for the six months ended March 31, 2012, were $1,488,911,894 and $1,865,811,756, respectively.

4. Borrowings:

The Master LLC, on behalf of the Portfolio, 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. The Portfolio may borrow under the credit agreement to fund shareholder redemptions. Effective November 2010 to November 2011, the credit agreement had the following terms: a commitment fee of 0.08% per annum based on the Portfolio’s pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. In addition, the Portfolio paid administration and arrangement fees which were allocated to the Portfolio based on its net assets as of October 31, 2010. The credit agreement which expired in November 2011, was renewed until November 2012. Effective November 2011 to November 2012, the credit agreement has the following terms: a commitment fee of 0.065% per annum based on the Portfolio’s pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Portfolio paid administration and arrangement fees which were allocated to the Portfolio based on their net assets as of October 31, 2011. The Portfolio did not borrow under the credit agreement during the six months ended March 31, 2012.

5. Concentration, Market and Credit Risk:

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

As of March 31, 2012, the Master Large Cap Core Portfolio invested a significant portion of its assets in securities in the information technology sector. Changes in economic conditions affecting the information technology sector would have a greater impact on the Portfolio and could affect the value, income and/or liquidity of positions in such securities.

6. Subsequent Events:

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

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 29

Officers and Directors of Master Large Cap Series LLC

Ronald W. Forbes, Co-Chairman of the Board and Director

Rodney D. Johnson, Co-Chairman of the Board and Director

Paul L. Audet, Director

David O. Beim, Director

Henry Gabbay, Director

Dr. Matina S. Horner, Director

Herbert I. London, Director

Cynthia A. Montgomery, Director

Joseph P. Platt, Director

Robert C. Robb, Jr., Director

Toby Rosenblatt, Director

Kenneth L. Urish, Director

Frederick W. Winter, Director

John M. Perlowski, President and Chief Executive Officer

Brendan Kyne, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Brian Kindelan, Chief Compliance Officer and

Anti-Money Laundering Officer

Ira P. Shapiro, Secretary

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisor

BlackRock Investment Management, LLC

Princeton, NJ 08540

Custodian

Brown Brothers Harriman & Co.

Boston, MA 02109

Accounting Agent

State Street Bank and Trust Company

Boston, MA 02110

Distributor

BlackRock Investments, LLC

New York, NY 10022

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Sidley Austin LLP

New York, NY 10019

30 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

Portfolio Information Master Total Return Portfolio

As of March 31, 2012

Portfolio Composition	Percent of Long-Term Investments
US Government Sponsored Agency Securities	51	%
Corporate Bonds	21
US Treasury Obligations	14
Non-Agency Mortgage-Backed Securities	7
Asset-Backed Securities	4
Floating Rate Loan Interests	1
Foreign Agency Obligations	1
Preferred Securities	1

Credit Quality Allocations1	Percent of Long-Term Investments
AAA/Aaa2	77	%
AA/Aa	3
A	7
BBB/Baa	8
BB/Ba	3
B	2

1	Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”).
2	Includes US Government Sponsored Agency Securities and US Treasury Obligations, which are deemed AAA/Aaa by the investment advisor.

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 31

Schedule of Investments March 31, 2012 (Unaudited)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
321 Henderson Receivables I LLC (a):
Series 2010-1A, Class A, 5.56%, 7/15/59	USD	8,513	$	9,258,730
Series 2010-2A, Class A, 4.07%, 1/15/48		4,364		4,444,595
Series 2010-3A, Class A, 3.82%, 12/15/48		8,396		8,390,276
Series 2012-1A, Class A, 4.21%, 2/16/65		4,510		4,550,868
ACE Securities Corp. (b):
Series 2003-OP1, Class A2, 0.96%, 12/25/33		581		448,750
Series 2006-CW1, Class A2C, 0.38%, 7/25/36		1,680		998,043
AEP Texas Central Transition Funding LLC, Series 2012-1, Class A3, 2.84%, 3/01/26		10,440		10,313,445
AH Mortgage Advance Trust, Series SART-3, Class 1A1, 2.98%, 3/13/43 (a)		5,685		5,685,000
AmeriCredit Automobile Receivables Trust, Series 2011-5, Class C, 3.44%, 10/08/17		4,050		4,130,184
Bear Stearns Asset-Backed Securities Trust, Series 2006-HE10, Class 21A1, 0.31%, 12/25/36 (b)		2,442		2,287,703
Capital One Multi-Asset Execution Trust, Series 4-3C, 6.63%, 6/17/14 (b)	GBP	3,400		5,533,577
CarMax Auto Owner Trust:
Series 2012-1, Class B, 1.76%, 8/15/17	USD	1,860		1,852,151
Series 2012-1, Class C, 2.20%, 10/16/17		1,150		1,144,939
Series 2012-1, Class D, 3.09%, 8/15/18		1,430		1,423,825
Carrington Mortgage Loan Trust, Series 2006-NC5, Class A1, 0.29%, 1/25/37 (b)		13		13,402
CenterPoint Energy Transition Bond Co. LLC, Series 2012-1, Class A3, 3.03%, 10/15/25		10,300		10,368,655
Countrywide Asset-Backed Certificates (b):
Series 2003-BC3, Class A2, 0.86%, 9/25/33		677		586,832
Series 2004-5, Class A, 0.69%, 10/25/34		973		829,803
Series 2006-13, Class 3AV2, 0.39%, 1/25/37		2,091		1,439,950
Series 2006-17, Class 2A2, 0.39%, 3/25/47		1,065		635,633
Series 2007-1, Class 2A1, 0.29%, 7/25/37		67		65,524
Series 2007-11, Class 2A1, 0.30%, 6/25/47		5		4,613
Series 2007-12, Class 2A1, 0.59%, 8/25/47	USD	55		53,760
DT Auto Owner Trust (a):
Series 2011-2A, Class B, 2.12%, 2/16/16		3,899		3,902,292
Series 2011-3A, Class C, 4.03%, 2/15/17		2,460		2,460,869
Fannie Mae Mortgage-Backed Securities, Series 2003-W5, Class A, 0.46%, 4/25/33 (b)		11		10,823

Asset-Backed Securities	Par (000)		Value
Ford Credit Floorplan Master Owner Trust:
Series 2010-5, Class C, 2.07%, 9/15/15 (a)	USD	3,035	$	3,057,092
Series 2010-5, Class D, 2.41%, 9/15/15 (a)		1,620		1,631,586
Series 2011-2, Class C, 2.37%, 9/15/15		3,860		3,866,125
Series 2011-2, Class D, 2.86%, 9/15/15		2,685		2,689,059
Series 2012-1, Class B, 1.14%, 1/15/16 (b)		1,670		1,670,000
Series 2012-1, Class C, 1.74%, 1/15/16 (b)		4,380		4,379,998
Series 2012-1, Class D, 2.34%, 1/15/16 (b)		4,100		4,099,996
Series 2012-2, Class B, 2.32%, 1/15/19		2,244		2,234,598
Series 2012-2, Class C, 2.86%, 1/15/19		1,030		1,023,537
Series 2012-2, Class D, 3.51%, 1/15/19		1,820		1,808,665
Globaldrive BV, Series 2008-2, Class A, 4.00%, 10/20/16	EUR	1,946		2,617,275
GSAA Home Equity Trust, Series 2006-5, Class 2A1, 0.31%, 3/25/36 (b)	USD	32		14,696
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.35%, 7/25/37 (b)		89		87,356
Hyundai Auto Receivables Trust, Series 2012-A, Class D, 2.61%, 5/15/18		2,555		2,548,122
Morgan Stanley ABS Capital I, Series 2005-HE1, Class A2MZ, 0.54%, 12/25/34 (b)		820		690,148
Nelnet Student Loan Trust (b):
Series 2006-1, Class A5, 0.60%, 8/23/27		6,505		6,164,826
Series 2008-3, Class A4, 2.14%, 11/25/24		5,600		5,772,190
New Century Home Equity Loan Trust, Series 2005-2, Class A2MZ, 0.50%, 6/25/35 (b)		2,543		2,406,847
Option One Mortgage Loan Trust, Series 2003-4, Class A2, 0.88%, 7/25/33 (b)		1,650		1,296,570
PFS Financing Corp., Series 2012-AA, Class A, 1.44%, 2/15/16 (a)(b)		4,400		4,399,999
RAAC, Series 2005-SP2, Class 2A, 0.54%, 6/25/44 (b)		6,022		4,282,523
Residential Asset Securities Corp., Series 2003-KS5, Class AIIB, 0.82%, 7/25/33 (b)		738		453,823
Santander Consumer Acquired Receivables Trust (a):
Series 2011-S1A, Class B, 1.66%, 8/15/16		6,186		6,134,661
Series 2011-S1A, Class C, 2.01%, 8/15/16		4,829		4,786,705
Series 2011-WO, Class C, 3.19%, 10/15/15		6,580		6,569,405
Santander Drive Auto Receivables Trust:
Series 2010-2, Class B, 2.24%, 12/15/14		8,380		8,412,158
Series 2010-2, Class C, 3.89%, 7/17/17		9,885		10,045,829
Series 2010-B, Class B, 2.10%, 9/15/14 (a)		7,668		7,707,470
Series 2010-B, Class C, 3.02%, 10/17/16 (a)		8,015		7,965,431

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

AUD	Australian Dollar
CAD	Canadian Dollar
CHF	Swiss Franc
EUR	Euro
EURIBOR	Euro Interbank Offered Rate
FKA	Formerly Known As
GBP	British Pound
JPY	Japanese Yen
LIBOR	London Interbank Offered Rate
PHP	Philippine Peso
RB	Revenue Bonds
SGD	Singapore Dollar
TBA	To Be Announced
USD	US Dollar

See Notes to Financial Statements.
32	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
Santander Drive Auto Receivables Trust (concluded):
Series 2011-1, Class D, 4.01%, 2/15/17	USD	8,000	$	8,026,855
Series 2011-S1A, Class B, 1.48%, 5/15/17 (a)		5,311		5,298,181
Series 2011-S1A, Class D, 3.10%, 5/15/17 (a)		4,019		4,009,970
Series 2012-1, Class B, 2.72%, 5/16/16		2,260		2,298,145
Series 2012-1, Class C, 3.78%, 11/15/17		3,045		3,115,096
Series 2012-2, Class C, 3.20%, 2/15/18		6,490		6,504,144
Series 2012-2, Class D, 3.87%, 2/15/18		4,020		4,033,620
Scholar Funding Trust, Series 2011-A, Class A, 1.45%, 10/28/43 (a)(b)		6,158		5,923,409
SLM Student Loan Trust:
Series 2004-B, Class A2, 0.67%, 6/15/21 (b)		6,087		5,829,739
Series 2008-5, Class A3, 1.86%, 1/25/18 (b)		4,285		4,377,048
Series 2008-5, Class A4, 2.26%, 7/25/23 (b)		4,690		4,857,769
Series 2012-A, Class A1, 1.64%, 8/15/25 (a)(b)		3,253		3,260,679
Series 2012-A, Class A2, 3.83%, 1/17/45 (a)		2,750		2,740,711
Small Business Administration:
Series 2002-P10, Class 1, 5.20%, 8/10/12		77		78,471
Series 2003-P10A, Class 1, 4.52%, 2/10/13		9		9,135
Series 2004-P10, Class 1, 4.50%, 2/10/14		192		198,029
Soundview Home Equity Loan Trust, Series 2006-EQ1, Class A2, 0.35%, 10/25/36 (b)		88		86,804
Structured Asset Securities Corp.:
Series 2003-Al2, Class A, 3.36%, 1/25/31 (a)		1,321		1,211,314
Series 2004-23XS, Class 2A1, 0.54%, 1/25/35 (b)		2,190		1,570,455
Series 2005-GEL2, Class A, 0.52%, 4/25/35 (b)		689		615,693
Series 2006-BC6, Class A2, 0.32%, 1/25/37 (b)		1,262		1,245,680
Series 2007-BC1, Class A2, 0.29%, 2/25/37 (b)		334		323,938
Total Asset-Backed Securities — 7.6%				255,265,817
Corporate Bonds
Air Freight & Logistics — 0.2%
PostNL NV, 5.38%, 11/14/17	EUR	3,500		5,139,850
Auto Components — 0.1%
BorgWarner, Inc., 4.63%, 9/15/20	USD	2,925		3,126,699
Jaguar Land Rover Plc, 8.25%, 3/15/20	GBP	1,098		1,761,345
				4,888,044
Capital Markets — 1.6%
Credit Suisse AG:
1.63%, 3/06/15 (a)	USD	10,740		10,714,487
2.60%, 5/27/16 (a)		6,330		6,453,454
5.40%, 1/14/20		2,460		2,532,467
Deutsche Bank AG, 1.67%, 3/09/17 (b)	EUR	2,850		3,403,455
The Goldman Sachs Group, Inc., 5.75%, 1/24/22	USD	20,545		21,135,463
Morgan Stanley, 5.50%, 7/28/21		10,260		10,026,934
				54,266,260

Corporate Bonds	Par (000)			Value
Chemicals — 0.8%
CF Industries, Inc., 7.13%, 5/01/20	USD	6,863	$	8,175,549
The Dow Chemical Co., 4.13%, 11/15/21		3,570		3,672,620
Kerling Plc, 10.63%, 2/01/17	EUR	1,292		1,714,524
Lyondell Chemical Co., 11.00%, 5/01/18	USD	4,812		5,317,607
LyondellBasell Industries NV, 5.75%, 4/15/24 (a)(c)		5,000		4,987,500
Nova Chemicals Corp., 8.38%, 11/01/16		2,500		2,775,000
				26,642,800
Commercial Banks — 4.5%
Banco Santander SA, 3.25%, 2/17/15	EUR	1,800		2,410,637
Bank of India, 6.25%, 2/16/21	USD	4,670		4,665,820
BNP Paribas Home Loan SFH, 3.13%, 3/22/22	EUR	3,800		5,087,317
BNP Paribas SA, 5.43%, 9/07/17		1,240		1,756,643
CIT Group, Inc., 7.00%, 5/02/17 (a)	USD	790		791,975
Commerzbank AG, 6.38%, 3/22/19	EUR	1,250		1,419,056
Cooperatieve Centrale Raiffeisen- Boerenleenbank BA, 4.00%, 1/11/22		4,825		6,680,278
Discover Bank:
8.70%, 11/18/19	USD	1,980		2,463,894
7.00%, 4/15/20		5,720		6,563,448
Eksportfinans ASA:
5.50%, 5/25/16		1,310		1,282,350
5.50%, 6/26/17		275		267,617
HSBC Bank Brasil SA — Banco Multiplo, 4.00%, 5/11/16 (a)		15,610		15,727,075
HSBC Bank Plc, 3.10%, 5/24/16 (a)		7,630		7,772,010
HSBC Holdings Plc, 6.10%, 1/14/42		3,120		3,630,195
ICICI Bank Ltd., 4.75%, 11/25/16 (a)		6,450		6,417,286
ING Bank NV:
1.17%, 5/23/16 (b)		600		555,900
4.00%, 12/23/16	EUR	1,750		2,448,194
KBC IFIMA NV, 5.00%, 3/16/16		3,650		5,060,485
Lloyds TSB Bank Plc:
11.88%, 12/16/21 (b)		3,000		4,421,214
5.13%, 3/07/25	GBP	2,250		3,797,665
6.50%, 9/17/40		350		531,327
National Agricultural Cooperative Federation, 3.50%, 2/08/17 (a)	USD	8,300		8,328,411
Oversea-Chinese Banking Corp., Ltd., 3.75%, 11/15/22 (b)		10,000		9,967,650
Sparebanken 1 Boligkreditt (a):
1.25%, 10/25/13		17,090		17,185,174
2.30%, 6/30/17		8,220		8,192,052
Société Générale SA, 6.13%, 8/20/18	EUR	3,400		4,663,370
UBS AG, 2.25%, 3/30/17 (a)	USD	10,450		10,424,513
Wells Fargo & Co., 3.50%, 3/08/22		10,035		9,879,146
				152,390,702
Commercial Services & Supplies — 0.3%
ACCO Brands Corp., 10.63%, 3/15/15	USD	1,700		1,855,142
RSC Equipment Rental, Inc., 10.00%, 7/15/17 (a)		3,500		4,060,000
Verisure Holding AB:
8.75%, 9/01/18	EUR	2,179		2,986,631
8.75%, 12/01/18		601		733,422
				9,635,195
Construction & Engineering — 0.1%
ABB Finance BV, 2.63%, 3/26/19		3,271		4,377,958
Consumer Finance — 0.5%
Ford Motor Credit Co. LLC, 6.63%, 8/15/17	USD	3,018		3,344,345
SLM Corp.:
6.25%, 1/25/16		7,120		7,404,800
6.00%, 1/25/17		5,000		5,150,000
Series A, 0.86%, 1/27/14 (b)		35		33,430
				15,932,575

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	33

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Diversified Financial Services — 3.4%
Bank of America Corp.:
3.88%, 3/22/17	USD	5,130	$	5,158,292
6.00%, 9/01/17		7,000		7,624,120
7.63%, 6/01/19		3,000		3,459,348
5.70%, 1/24/22		2,275		2,408,279
Capital One Financial Corp., 4.75%, 7/15/21		7,745		8,149,459
Cedulas TDA 6 Fondo de Titulizacion de Activos, Series A-6, 4.25%, 4/10/31	EUR	1,700		1,326,312
Citigroup, Inc.:
5.00%, 9/15/14	USD	9,060		9,382,799
4.59%, 12/15/15		23,100		24,326,610
Gala Group Finance Plc, 8.88%, 9/01/18	GBP	792		1,064,116
Imperial Tobacco Finance Plc, 5.00%, 12/02/19	EUR	1,144		1,699,175
JPMorgan Chase & Co., 3.88%, 9/23/20		1,000		1,393,167
JPMorgan Chase Bank NA:
6.00%, 7/05/17	USD	13,805		15,643,826
Series BKNT, 6.00%, 10/01/17		13,350		15,275,217
Reynolds Group Issuer, Inc. (a):
7.88%, 8/15/19		6,190		6,654,250
6.88%, 2/15/21		5,710		5,909,850
TMX Finance LLC, 13.25%, 7/15/15		4,000		4,420,000
				113,894,820
Diversified Telecommunication Services — 0.6%
AT&T, Inc., 5.35%, 9/01/40		4,235		4,503,118
Level 3 Financing, Inc., 8.13%, 7/01/19 (a)		4,474		4,619,405
Telefonica Emisiones SAU, 5.60%, 3/12/20	GBP	1,800		2,817,449
Verizon Communications, Inc.:
3.50%, 11/01/21	USD	5,110		5,227,847
6.40%, 2/15/38		1,878		2,274,851
				19,442,670
Electric Utilities — 2.7%
Alabama Power Co., 3.95%, 6/01/21		5,015		5,345,027
Cleveland Electric Illuminating Co.:
8.88%, 11/15/18		1,199		1,582,983
5.95%, 12/15/36		2,175		2,339,080
Duke Energy Carolinas LLC, 4.25%, 12/15/41		3,915		3,906,234
Florida Power & Light Co., 5.95%, 2/01/38		3,645		4,581,874
Florida Power Corp., 6.40%, 6/15/38		2,646		3,442,666
Georgia Power Co., 3.00%, 4/15/16		8,985		9,502,231
Hydro-Quebec:
9.40%, 2/01/21		4,365		6,398,095
8.40%, 1/15/22		8,220		11,599,546
8.05%, 7/07/24		21,145		30,434,358
Jersey Central Power & Light Co., 7.35%, 2/01/19		2,730		3,416,098
Southern California Edison Co., Series 08-A, 5.95%, 2/01/38		2,825		3,561,444
Trans-Allegheny Interstate Line Co., 4.00%, 1/15/15 (a)		2,815		2,971,480
				89,081,116
Energy Equipment & Services — 1.7%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)(d)		1,310		1,316,550
Ensco Plc:
3.25%, 3/15/16		1,880		1,961,327
4.70%, 3/15/21		3,915		4,223,823
Frac Tech Services LLC, 7.63%, 11/15/18 (a)		2,407		2,515,315
MEG Energy Corp., 6.50%, 3/15/21 (a)		4,100		4,294,750
Noble Holding International Ltd., 5.25%, 3/15/42		3,125		3,104,453
Peabody Energy Corp., 6.25%, 11/15/21 (a)		7,895		7,737,100
Pride International, Inc., 6.88%, 8/15/20		2,650		3,231,582

Corporate Bonds	Par (000)		Value
Energy Equipment & Services (concluded)
Transocean, Inc.:
5.05%, 12/15/16	USD	8,125	$	8,701,274
6.50%, 11/15/20		4,025		4,500,449
6.38%, 12/15/21		14,980		16,855,017
				58,441,640
Food & Staples Retailing — 0.1%
Wal-Mart Stores, Inc., 5.63%, 4/01/40		2,343		2,813,938
Food Products — 0.4%
Kraft Foods, Inc.:
6.50%, 8/11/17		6,049		7,297,060
6.50%, 2/09/40		4,500		5,537,398
				12,834,458
Health Care Equipment & Supplies — 0.4%
Boston Scientific Corp., 6.25%, 11/15/15		13,154		14,525,633
Health Care Providers & Services — 0.7%
Crown Newco 3 Plc, 7.00%, 2/15/18	GBP	1,225		1,876,115
HCA, Inc.:
6.50%, 2/15/20	USD	4,168		4,376,400
7.25%, 9/15/20		3,925		4,273,344
Tenet Healthcare Corp.:
10.00%, 5/01/18		147		168,315
6.25%, 11/01/18 (a)		4,905		5,064,412
8.88%, 7/01/19		5,365		6,008,800
UnitedHealth Group, Inc., 3.38%, 11/15/21		1,630		1,673,136
				23,440,522
Hotels, Restaurants & Leisure — 1.0%
Enterprise Inns Plc, 6.50%, 12/06/18	GBP	500		663,793
Gategroup Finance Luxembourg SA, 6.75%, 3/01/19	EUR	1,170		1,558,494
International Game Technology, 7.50%, 6/15/19	USD	11,199		13,117,814
MGM Resorts International:
10.38%, 5/15/14		4,020		4,557,675
11.13%, 11/15/17		4,954		5,604,212
Punch Taverns Finance Plc, Series A1R, 7.27%, 4/15/22	GBP	760		1,115,332
Wyndham Worldwide Corp., 4.25%, 3/01/22	USD	6,430		6,303,490
				32,920,810
Household Durables — 0.0%
Spie BondCo 3 SCA, 11.00%, 8/15/19	EUR	1,165		1,573,182
Independent Power Producers & Energy Traders — 0.4%
Constellation Energy Group Inc., 5.15%, 12/01/20	USD	670		737,833
Constellation Energy Group, Inc., 7.60%, 4/01/32		1,600		2,080,243
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		7,690		8,382,100
Laredo Petroleum, Inc., 9.50%, 2/15/19		2,000		2,225,000
				13,425,176
Industrial Conglomerates — 0.1%
Sequa Corp., 11.75%, 12/01/15 (a)		2,500		2,656,250
Insurance — 4.1%
Allianz Finance II BV, 5.75%, 7/08/41 (b)	EUR	4,400		5,551,978
American International Group, Inc.:
3.80%, 3/22/17	USD	8,028		8,128,800
5.45%, 5/18/17		4,150		4,461,416
8.18%, 5/15/58 (b)		1,970		2,085,245
AXA SA, 5.25%, 4/16/40 (b)	EUR	3,000		3,423,356
Fairfax Financial Holdings Ltd., 5.80%, 5/15/21 (a)	USD	3,968		3,787,285

See Notes to Financial Statements.
34	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Insurance (concluded)
Fidelity International Ltd., 7.13%, 2/13/24	GBP	5,250	$	8,434,497
Hartford Financial Services Group, Inc., 6.00%, 1/15/19	USD	3,450		3,768,632
Hartford Life Global Funding Trusts, 0.65%, 6/16/14 (b)		13,275		12,605,980
ING Groep NV, 4.13%, 3/23/15	EUR	4,745		6,587,610
ING Verzekeringen NV, 2.69%, 6/21/21 (b)		2,880		3,572,488
Lincoln National Corp., 7.00%, 6/15/40	USD	2,860		3,358,824
Manulife Financial Corp., 3.40%, 9/17/15		12,215		12,573,938
Metropolitan Life Global Funding I (a):
2.88%, 9/17/12		8,375		8,452,611
2.50%, 1/11/13		24,245		24,497,463
5.13%, 6/10/14		1,600		1,737,514
Muenchener Rueckversicherungs AG (b):
6.00%, 5/26/41	EUR	2,700		3,566,981
6.63%, 5/26/42	GBP	1,900		3,045,069
Prudential Financial, Inc.:
4.75%, 9/17/15	USD	10,790		11,712,642
7.38%, 6/15/19		3,690		4,561,272
5.38%, 6/21/20		2,085		2,335,323
				138,248,924
IT Services — 0.1%
First Data Corp. (a):
7.38%, 6/15/19		2,290		2,332,937
8.25%, 1/15/21		285		278,587
				2,611,524
Machinery — 0.3%
Joy Global, Inc., 5.13%, 10/15/21		2,240		2,425,481
UR Financing Escrow Corp. (a):
5.75%, 7/15/18		753		770,884
7.38%, 5/15/20		4,565		4,667,712
7.63%, 4/15/22		1,874		1,925,535
				9,789,612
Media — 3.5%
CBS Corp.:
4.63%, 5/15/18		1,785		1,943,587
8.88%, 5/15/19		3,440		4,519,582
5.75%, 4/15/20		2,820		3,242,086
CCH II LLC, 13.50%, 11/30/16		6,675		7,609,500
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		1,854		2,023,177
Series B, 9.25%, 12/15/17		6,242		6,842,792
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22		2,225		3,225,534
Comcast Corp.:
5.88%, 2/15/18		6,350		7,515,015
6.45%, 3/15/37		3,686		4,411,475
Cox Communications, Inc., 8.38%, 3/01/39 (a)		6,180		8,701,168
CSC Holdings LLC, 8.50%, 4/15/14		2,742		3,050,475
DIRECTV Holdings LLC:
6.38%, 3/01/41		4,422		4,990,497
5.15%, 3/15/42 (a)		2,033		1,980,516
Intelsat Jackson Holdings SA, 7.25%, 4/01/19		4,072		4,280,690
NBC Universal Media LLC, 5.15%, 4/30/20		3,508		3,970,372
The New York Times Co., 6.63%, 12/15/16		20,100		20,954,250
News America, Inc., 6.40%, 12/15/35		315		357,120
Time Warner Cable, Inc.:
5.88%, 11/15/40		5,025		5,414,327
5.50%, 9/01/41		4,990		5,227,165
Corporate Bonds	Par (000)		Value
Media (concluded)
Time Warner, Inc.:
4.70%, 1/15/21	USD	2,080	$	2,272,450
6.10%, 7/15/40		1,370		1,533,245
Unitymedia Hessen GmbH & Co. KG (FKA UPC Germany GmbH), 8.13%, 12/01/17 (a)		5,000		5,400,000
Virgin Media Secured Finance Plc:
6.50%, 1/15/18		3,740		4,062,575
5.25%, 1/15/21		4,870		5,235,294
				118,762,892
Metals & Mining — 0.7%
Cliffs Natural Resources, Inc., 6.25%, 10/01/40		4,480		4,757,433
Eco-Bat Finance Plc, 7.75%, 2/15/17	EUR	1,723		2,303,709
Freeport-McMoRan Copper & Gold, Inc., 3.55%, 3/01/22	USD	4,920		4,725,257
Newcrest Finance Property Ltd., 4.45%, 11/15/21 (a)		3,460		3,495,482
Novelis, Inc., 8.75%, 12/15/20		6,865		7,517,175
				22,799,056
Multi-Utilities — 0.2%
Centrica Plc, 4.38%, 3/13/29	GBP	1,220		1,908,396
Dominion Resources, Inc., 1.95%, 8/15/16	USD	6,345		6,432,288
				8,340,684
Multiline Retail — 0.8%
Dollar General Corp., 11.88%, 7/15/17 (b)(e)		6,985		7,578,795
Macy’s Retail Holdings, Inc.:
5.90%, 12/01/16		9,259		10,625,175
7.45%, 7/15/17		6,220		7,551,173
				25,755,143
Oil, Gas & Consumable Fuels — 6.7%
Anadarko Petroleum Corp.:
5.95%, 9/15/16		14,541		16,764,275
6.38%, 9/15/17		8,643		10,269,760
Boston Gas Co., 4.49%, 2/15/42 (a)		2,575		2,585,024
BP Capital Markets Plc, 3.13%, 10/01/15		23,849		25,207,630
Chesapeake Oilfield Operating LLC, 6.63%, 11/15/19 (a)		1,180		1,171,150
Consol Energy, Inc.:
8.00%, 4/01/17		2,536		2,643,780
8.25%, 4/01/20		624		652,080
DCP Midstream Operating LP, 4.95%, 4/01/22		3,200		3,207,805
El Paso Corp.:
7.00%, 6/15/17		2,000		2,227,088
7.75%, 1/15/32		2,000		2,277,486
El Paso Pipeline Partners Operating Co., LLC, 6.50%, 4/01/20		6,445		7,202,281
Enterprise Products Operating LLC:
6.13%, 10/15/39		4,600		5,180,304
Series L, 6.30%, 9/15/17		6,350		7,485,875
KeySpan Gas East Corp., 5.82%, 4/01/41 (a)		2,780		3,323,126
Kinder Morgan Energy Partners LP:
5.95%, 2/15/18		2,900		3,386,971
6.55%, 9/15/40		1,245		1,394,406
6.38%, 3/01/41		1,760		1,931,778
Kinder Morgan Finance Co., ULC, 5.70%, 1/05/16		5,205		5,491,275
Linn Energy LLC, 6.25%, 11/01/19 (a)		6,000		5,820,000
Marathon Petroleum Corp., 6.50%, 3/01/41		8,300		8,965,992
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37		7,150		8,350,192
6.50%, 9/15/37		25		31,235
Nexen, Inc.:
6.40%, 5/15/37		4,050		4,452,886
7.50%, 7/30/39		6,395		7,852,114

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	35

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
OGX Petroleo e Gas Participacoes SA (a):
8.50%, 6/01/18 (d)	USD	3,655	$	3,797,545
8.38%, 4/01/22		2,555		2,580,550
Petrobras International Finance Co.:
3.88%, 1/27/16		15,335		16,141,667
5.75%, 1/20/20		15,835		17,542,013
Phillips 66, 2.95%, 5/01/17 (a)		6,600		6,708,253
Pioneer Natural Resources Co., 6.88%, 5/01/18		2,900		3,410,884
Plains Exploration & Production Co.:
10.00%, 3/01/16		4,825		5,331,625
6.75%, 2/01/22		2,595		2,711,775
Range Resources Corp.:
7.25%, 5/01/18		7,335		7,738,425
5.75%, 6/01/21		2,235		2,346,750
Rockies Express Pipeline LLC, 3.90%, 4/15/15 (a)		7,772		7,150,240
Valero Energy Corp., 6.63%, 6/15/37		2,000		2,176,808
Western Gas Partners LP, 5.38%, 6/01/21		7,870		8,436,640
Woodside Finance, Ltd., 4.60%, 5/10/21 (a)		2,270		2,361,002
				226,308,690
Paper & Forest Products — 0.3%
International Paper Co.:
7.50%, 8/15/21		600		756,305
4.75%, 2/15/22		4,105		4,325,902
6.00%, 11/15/41		4,420		4,797,782
				9,879,989
Pharmaceuticals — 0.4%
Teva Pharmaceutical Finance Co. BV, Series 2, 3.65%, 11/10/21		2,120		2,146,032
Teva Pharmaceutical Finance II BV, 3.00%, 6/15/15		4,610		4,852,223
Teva Pharmaceutical Finance IV BV:
2.88%, 4/15/19	EUR	2,314		3,100,532
3.65%, 11/10/21	USD	5,000		5,061,395
				15,160,182
Real Estate Investment Trusts (REITs) — 0.7%
ERP Operating LP, 4.63%, 12/15/21		5,085		5,354,185
Mercialys SA, 4.13%, 3/26/19	EUR	1,600		2,137,816
Ventas Realty LP/Ventas Capital Corp., 4.75%, 6/01/21	USD	3,040		3,067,254
Vornado Realty LP, 5.00%, 1/15/22		12,075		12,337,631
				22,896,886
Real Estate Management & Development — 0.6%
China Resources Land, Ltd., 4.63%, 5/19/16		3,000		3,007,629
Franshion Development, Ltd., 6.75%, 4/15/21 (a)		2,500		2,181,250
IVG Immobilien AG, 8.00% (b)(f)	EUR	600		552,152
Realogy Corp., 7.88%, 2/15/19 (a)(d)	USD	4,865		4,865,000
The Unique Pub Finance Co. Plc, Series A4, 5.66%, 6/30/27	GBP	4,712		5,633,794
WEA Finance LLC, 4.63%, 5/10/21 (a)	USD	3,410		3,449,532
				19,689,357
Road & Rail — 0.3%
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40		8,660		9,887,391
Software — 0.2%
BMC Software, Inc., 4.25%, 2/15/22		1,360		1,363,418
Oracle Corp., 5.38%, 7/15/40		4,500		5,203,210
				6,566,628

Corporate Bonds	Par (000)		Value
Specialty Retail — 0.2%
House of Fraser Funding Plc, 8.88%, 8/15/18	GBP	944	$	1,389,135
QVC, Inc., 7.50%, 10/01/19 (a)	USD	4,225		4,636,937
				6,026,072
Thrifts & Mortgage Finance — 0.3%
Nationwide Building Society, 6.75%, 7/22/20	EUR	545		679,118
Northern Rock Plc, 5.63%, 6/22/17 (a)	USD	4,145		4,438,702
Radian Group, Inc., 5.38%, 6/15/15		8,350		6,346,000
				11,463,820
Tobacco — 0.1%
BAT International Finance Plc, 3.63%, 11/09/21	EUR	2,045		2,827,670
Wireless Telecommunication Services — 1.6%
America Movil SAB de CV, 2.38%, 9/08/16	USD	8,025		8,123,908
Cricket Communications, Inc., 7.75%, 5/15/16		3,869		4,081,795
Crown Castle Towers LLC, 6.11%, 1/15/20 (a)		16,500		18,338,562
Matterhorn Mobile Holdings SA, 8.25%, 2/15/20	EUR	663		919,613
Matterhorn Mobile SA, 6.75%, 5/15/19	CHF	1,850		2,110,890
MetroPCS Wireless, Inc., 7.88%, 9/01/18	USD	282		296,805
SBA Tower Trust, 5.10%, 4/15/17 (a)		3,700		3,993,184
Sprint Capital Corp., 6.88%, 11/15/28		2,003		1,532,295
Sprint Nextel Corp., 9.00%, 11/15/18 (a)		12,660		13,894,350
				53,291,402
Total Corporate Bonds — 40.7%				1,368,629,521
Floating Rate Loan Interests (b)
Capital Markets — 0.1%
Nuveen Investments, Inc. (First Lien), Term Loan, 5.72% – 5.80%, 5/12/17		3,000		2,994,390
Chemicals — 0.1%
Styron Sarl LLC, Term Loan B, 6.00%, 8/02/17		3,576		3,261,801
Consumer Finance — 0.1%
Springleaf Finance Corp. (FKA AGFS Funding Co.), Term Loan, 5.50%, 5/10/17		4,000		3,673,320
Diversified Financial Services — 0.1%
Reynolds Group Holdings, Inc., Tranche C Term Loan, 6.50%, 8/09/18		2,461		2,490,586
Diversified Telecommunication Services — 0.3%
Level 3 Financing, Inc., Term Loan B2, 5.75%, 9/03/18		8,000		8,071,680
Energy Equipment & Services — 0.3%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16		2,707		2,762,341
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16		4,954		5,168,518
				7,930,859
Food Products — 0.1%
Advance Pierre Foods, Term Loan (Second Lien), 7.00% — 7.50%, 9/30/16		1,980		1,977,970
Del Monte Corp., Term Loan, 4.50%, 3/08/18		2,481		2,443,684
				4,421,654
Health Care Providers & Services — 0.2%
inVentiv Health, Inc., Combined Term Loan B, 6.50%, 8/04/16		5,935		5,618,534
Hotels, Restaurants & Leisure — 0.3%
Caesars Entertainment Operating Co., Inc., Term Loan B1, 3.24%, 1/28/15		10,000		9,514,100

See Notes to Financial Statements.
36	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)	Par (000)			Value
Industrial Conglomerates — 0.0%
Sequa Corp., Incremental Term Loan, 6.25%, 12/03/14	USD	673	$	674,787
IT Services — 0.2%
First Data Corp.:
Extended Term Loan B, 4.24%, 3/23/18		6,090		5,544,846
Initial Tranche B-2 Term Loan, 2.99%, 9/24/14		542		521,355
				6,066,201
Machinery — 0.0%
Terex Corp., Term Loan B, 5.50%, 4/28/17		995		1,001,527
Media — 0.4%
Intelsat Jackson Holdings SA (FKA Intelsat
Jackson Holdings Ltd.), Tranche B Term Loan, 5.25%, 4/02/18		12,580		12,662,462
UPC Financing Partnership, New Term Loan, 4.75%, 12/29/17		1,152		1,153,692
				13,816,154
Oil, Gas & Consumable Fuels — 0.5%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15		17,336		17,422,911
Pharmaceuticals — 0.0%
Pharmaceutical Product Development, Inc., Term Loan B, 6.25%, 12/05/18		998		1,008,881
Professional Services — 0.0%
Emdeon, Inc., Term Loan B, 6.75%, 11/02/18		998		1,010,388
Real Estate Investment Trusts (REITs) — 0.0%
iStar Financial, Inc., Term Loan (Second Lien), 5.00%, 6/28/13		1,162		1,160,080
Real Estate Management & Development — 0.1%
Realogy Corp.:
Extended Synthetic Letter of Credit, 4.53%, 10/10/16		215		200,376
Extended Term Loan B, 4.77%, 10/10/16		2,742		2,554,348
				2,754,724
Wireless Telecommunication Services — 0.2%
Vodafone Americas Finance 2, Inc., Term Loan B, 6.25%, 7/11/16		7,219		7,236,797
Total Floating Rate Loan Interests — 3.0%				100,129,374
Foreign Agency Obligations
Brazilian Government International Bond, 7.13%, 1/20/37		1,725		2,367,562
Bundesschatzanweisungen, 1.00%, 12/14/12	EUR	1,900		2,549,740
Italy Buoni Poliennali Del Tesoro, 5.00%, 3/01/22		16,700		22,058,966
Mexico Government International Bond:
5.63%, 1/15/17	USD	3,840		4,440,960
5.13%, 1/15/20		8,275		9,495,562
Peruvian Government International Bond, 6.55%, 3/14/37		1,000		1,274,000
Poland Government International Bond:
6.38%, 7/15/19		1,280		1,488,000
5.13%, 4/21/21		4,130		4,410,840
Russia Government International Bond, 4.50%, 4/04/22 (a)		1,800		1,794,600
Foreign Agency Obligations	Par (000)			Value
Russian Foreign Bond Eurobond, 7.50%, 3/31/30 (g)	USD	14,425	$	17,255,458
South Africa Government International Bond, 5.50%, 3/09/20		3,165		3,528,975
Turkey Government International Bond:
7.00%, 3/11/19		2,670		3,050,475
5.63%, 3/30/21		3,870		4,038,345
6.25%, 9/26/22		2,760		2,967,000
Total Foreign Agency Obligations — 2.4%				80,720,483
Investment Companies	Shares
Diversified Financial Services — 0.4%
iShares JPMorgan USD Emerging Markets Bond Fund (h)		114,500		12,905,295
Non-Agency Mortgage-Backed Securities	Par (000)
Collateralized Mortgage Obligations — 4.2%
BlackRock Capital Finance LP, Series 1997-R2, Class AP, 1.29%, 12/25/35 (a)(b)(h)	USD	9		9,098
Citigroup Mortgage Loan Trust, Inc., Series 2007-2, Class 2A, 6.00%, 11/25/36		289		277,701
Collateralized Mortgage Obligation Trust, Series 57, Class D, 9.90%, 2/01/19		11		12,277
Countrywide Alternative Loan Trust:
Series 2005-21B, Class A17, 6.00%, 6/25/35		15,742		14,668,412
Series 2006-01A0, Class 1A1, 1.05%, 8/25/46 (b)		2,546		1,361,022
Series 2006-0A21, Class A1, 0.43%, 3/20/47 (b)		24,334		13,039,284
Series 2006-43CB, Class 1A10, 6.00%, 2/25/37		6,925		4,712,837
Series 2006-J4, Class 2A8, 6.00%, 7/25/36		13,030		8,425,645
Countrywide Home Loan Mortgage Pass-Through Trust (b):
Series 2004-29, Class1A1, 0.78%, 2/25/35		913		756,052
Series 2006-0A5, Class 2A1, 0.44%, 4/25/46		4,086		2,305,857
Series 2006-0A5, Class 3A1, 0.44%, 4/25/46		6,237		3,973,117
Credit Suisse Mortgage Capital Certificates (a)(b):
Series 2010-20R, Class 9A1, 2.98%, 1/27/36		8,383		8,173,158
Series 2011-2R, Class 1A1, 2.83%, 3/27/37		5,954		5,604,473
Series 2011-2R, Class 2A1, 2.69%, 7/27/36		15,609		14,973,605
Series 2011-5R, Class 3A1, 5.22%, 9/27/47		7,072		6,762,237
Deutsche ALT-A Securities, Inc. Alternate Loan Trust (b):
Series 2005-2, Class 1A1, 0.64%, 4/25/35		1,338		988,017
Series 2006-0A1, Class A1, 0.44%, 2/25/47		7,749		4,618,701
First Horizon Asset Securities, Inc., Series 2005-AR3, Class 3A1, 5.55%, 8/25/35 (b)		2,191		1,882,594
Fosse Master Issuer Plc, Series 2010-3, Class A2, 2.72%, 10/18/54 (b)	GBP	1,900		3,054,098
Gemgarto, 2.95%, 5/14/45 (b)(c)		1,890		3,023,057
GSR Mortgage Loan Trust, Series 2005-AR2, Class 2A1, 2.87%, 4/25/35 (b)	USD	6,330		5,489,558
Harborview Mortgage Loan Trust, Series 2006-11, Class A1A, 0.41%, 12/19/36 (b)		766		413,912

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	37

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Collateralized Mortgage Obligations (concluded)
Homebanc Mortgage Trust (b):
Series 2005-4, Class A1, 0.51%, 10/25/35	USD	24,488	$	17,188,052
Series 2006-2, Class A1, 0.42%, 12/25/36		7,176		4,715,583
Impac Secured Assets CMN Owner Trust, Series 2004-3, Class 1A4, 1.04%, 11/25/34 (b)		1,054		999,099
JPMorgan Mortgage Trust:
Series 2006-S2, Class 2A2, 5.88%, 6/25/21		4,531		4,421,545
Series 2007-S1, Class 1A2, 5.50%, 3/25/22		1,347		1,245,815
Permanent Master Issuer Plc, Series 2010-1X, Class 2A1, 2.39%, 7/15/42 (b)	GBP	3,000		4,770,153
WaMu Mortgage Pass-Through Certificates,
Series 2007-0A4, Class 1A, 0.93%, 5/25/47 (b)	USD	4,135		2,753,637
				140,618,596
Commercial Mortgage-Backed Securities — 8.4%
Banc of America Large Loan, Inc., Series 2010-HLTN, Class HLTN, 1.99%, 11/15/15 (a)(b)		9,398		8,787,535
Banc of America Merrill Lynch Commercial Mortgage, Inc.:
Series 2005-3, Class A3A, 4.62%, 7/10/43		850		861,710
Series 2006-5, Class AM, 5.45%, 9/10/47		1,110		1,075,111
Series 2007-3, Class A4, 5.84%, 6/10/49 (b)		2,730		3,031,640
Bear Stearns Commercial Mortgage Securities:
Series 2002-TOP6, Class A2, 6.46%, 10/15/36		26		26,370
Series 2005-PW10, Class AM, 5.45%, 12/11/40 (b)		1,350		1,403,513
Series 2006-PW11, Class A4, 5.62%, 3/11/39 (b)		175		196,038
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A2B, 5.21%, 12/11/49		3,853		3,886,276
Credit Suisse Mortgage Capital Certificates, Series 2010-RR1, Class 2A, 5.70%, 9/15/40 (a)(b)		4,730		5,250,806
CS First Boston Mortgage Securities Corp.:
Series 2002-CKN2, Class A3, 6.13%, 4/15/37		21		21,085
Series 2003-C3, Class A5, 3.94%, 5/15/38		3,466		3,535,613
Series 2003-CPN1, Class A2, 4.60%, 3/15/35		896		911,720
DBRR Trust, Series 2011-C32, Class A3A, 5.93%, 6/17/49 (a)(b)		3,800		4,228,750
Extended Stay America Trust, Series 2010-ESHA (a):
Class C, 4.86%, 11/05/27		1,935		1,959,253
Class D, 5.50%, 11/05/27		2,510		2,536,925
GE Capital Commercial Mortgage Corp., Series 2007-C1, Class A2, 5.42%, 12/10/49		28,389		28,371,146
GMAC Commercial Mortgage Securities, Inc. (b):
Series 2000-C2, Class A2, 5.64%, 5/10/40		2,775		2,919,644
Series 2006-C1, Class AM, 5.29%, 11/10/45		1,980		2,021,212
Greenwich Capital Commercial Funding Corp.:
Series 2005-GG3, Class A3, 4.57%, 8/10/42		2,445		2,512,597
Series 2006-GG7, Class AJ, 6.08%, 7/10/38 (b)		3,370		2,870,202
GS Mortgage Securities Corp. II:
Series 2004-GG2, Class A4, 4.96%, 8/10/38		1,236		1,252,260
Series 2005-GG4, Class A4, 4.76%, 7/10/39		13,351		14,235,530
Non-Agency Mortgage-Backed Securities	Par (000)		Value
Commercial Mortgage-Backed Securities (concluded)
JPMorgan Chase Commercial Mortgage Securities Corp. (b):
Series 2006-CB14, Class AM, 5.63%, 12/12/44	USD	3,735	$	3,846,030
Series 2007-CB19, Class AM, 5.93%, 2/12/49		2,000		1,971,598
Series 2007-LD1, Class A2, 5.99%, 6/15/49		28,913		29,069,984
Series 2008-C2, Class ASB, 6.13%, 2/12/51		2,595		2,799,598
LB-UBS Commercial Mortgage Trust:
Series 2003-C7, Class A3, 4.56%, 9/15/27 (b)		194		195,454
Series 2006-C4, Class AM, 6.09%, 6/15/38 (b)		1,402		1,487,498
Series 2006-C7, Class AM, 5.38%, 11/15/38		1,410		1,413,942
Series 2007-C6, Class A4, 5.86%, 7/15/40 (b)		5,255		5,943,268
Merrill Lynch Mortgage Trust, Series 2004-KEY2, Class A4, 4.86%, 8/12/39 (b)		7,190		7,716,215
Merrill Lynch/Countrywide Commercial Mortgage Trust:
Series 2006-2, Class A2, 5.88%, 6/12/46 (b)		5,771		5,928,725
Series 2007-9, Class ASB, 5.64%, 9/12/49		25,000		26,636,750
Morgan Stanley, Series 2007-XLC1, Class A2, 0.56%, 7/17/17		5,575		5,240,678
Morgan Stanley Capital I:
Series 1998-WF2, Class G, 6.34%, 7/15/30 (a)(b)		5,026		5,291,247
Series 2004-HQ4, Class A7, 4.97%, 4/14/40		8,900		9,461,483
Series 2007-HQ11, Class A2, 5.36%, 2/12/44		9,147		9,154,581
Series 2007-HQ12, Class A2FX, 5.78%, 4/12/49 (b)		1,006		1,061,948
Series 2007-HQ13, Class A1, 5.36%, 12/15/44		47		47,216
Series 2012-C4, Class C, 5.71%, 3/15/45 (a)		6,100		6,056,092
Series 2012-C4, Class D, 5.71%, 3/15/45 (a)		6,500		5,525,000
Series 2012-C4, Class XA, 2.90%, 3/15/45 (a)(b)		42,269		6,553,386
Series 2012-XA, Class A, 2.00%, 7/27/49 (a)(c)		7,315		7,315,000
Morgan Stanley Reremic Trust, Series 2009-GG10, Class A4A, 5.98%, 8/12/45 (a)(b)		5,375		6,062,871
RBSCF Trust, Series 2010-RR3, Class WBTA, 6.10%, 2/16/51 (a)(b)		15,388		17,164,806
Titan Europe Plc, Series 2006-4FSX, Class A1, 9.14%, 9/03/14 (b)	GBP	1,706		2,701,560
Wachovia Bank Commercial Mortgage Trust:
Series 2006-C28, Class A2, 5.50%, 10/15/48	USD	4,651		4,670,221
Series 2007-C33, Class A4, 6.10%, 2/15/51 (b)		9,310		10,315,294
WaMu Commercial Mortgage Securities Trust, Series 2005-C1A, Class X, 1.39%, 5/25/36 (a)(b)		3,263		54,686
Wells Fargo-RBS Commercial Mortgage Trust, Series 2012-C6, Class D, 5.56%, 4/15/45 (a)(b)		7,000		5,793,200
				281,373,267

See Notes to Financial Statements.
38	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Interest Only Commercial Mortgage-Backed Securities — 0.2%
Morgan Stanley Reremic Trust (a):
Series 2009-IO, Class B, 10.57%, 7/17/56 (i)	USD	6,500	$	5,703,750
Series 2011-IO, Class A, 2.50%, 3/23/51		3,632		3,650,190
				9,353,940
Total Non-Agency Mortgage-Backed Securities — 12.8%				431,345,803
Preferred Securities
Capital Trusts
Capital Markets — 0.0%
State Street Capital Trust IV, 1.47%, 6/01/67 (b)		770		565,943
Commercial Banks — 0.3%
Barclays Bank Plc, 5.93% (a)(b)(f)		1,715		1,586,375
Fifth Third Capital Trust IV, 6.50%, 4/15/67 (b)		5,410		5,382,950
JPMorgan Chase Capital XXV, Series Y, 6.80%, 10/01/37		2,060		2,071,536
				9,040,861
Consumer Finance — 0.2%
Capital One Capital VI, 8.88%, 5/15/40		6,845		6,890,999
Insurance — 0.6%
Lincoln National Corp., 6.05%, 4/20/67 (b)		3,110		2,900,075
MetLife Capital Trust IV, 7.88%, 12/15/37 (a)		6,045		6,619,275
Swiss Re Capital I LP, 6.85% (a)(b)(f)		6,125		5,781,822
XL Group Plc, Series E, 6.50% (b)(f)		5,290		4,456,825
				19,757,997
Total Capital Trusts — 1.1%				36,255,800
Preferred Stocks	Shares
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, 8.25%, Series S I		110,000		151,800
Freddie Mac, 8.38%, Series Z I		120,000		166,800
Total Preferred Stocks — 0.0%				318,600
Trust Preferreds
Commercial Banks — 0.1%
Citigroup Capital XIII, 7.88%, 10/30/40 (b)(j)		149,440		4,014,916
Consumer Finance — 0.1%
Capital One Financial Corp. Capital V, 10.25%, 8/15/39		86,000		2,209,125
Total Trust Preferreds — 0.2%				6,224,041
Total Preferred Securities — 1.3%				42,798,441
Taxable Municipal Bonds	Par (000)
New York City Municipal Water Finance Authority, RB, Second General Resolution, Series EE:
5.38%, 6/15/43	USD	4,410		4,944,933
5.50%, 6/15/43		5,285		6,000,008
Total Taxable Municipal Bonds — 0.3%				10,944,941
US Government Sponsored Agency Securities	Par (000)		Value
Agency Obligations — 1.3%
Fannie Mae:
1.75%, 5/07/13 (d)	USD	3,450	$	3,504,344
4.49%, 10/09/19 (i)(k)		13,295		10,281,303
6.63%, 11/15/30 (k)		1,450		2,057,333
Freddie Mac:
2.13%, 9/21/12 (k)		4,500		4,541,530
2.50%, 4/23/14 (d)		6,100		6,362,904
4.38%, 7/17/15 (d)		7,950		8,892,743
4.88%, 6/13/18 (k)		4,300		5,128,984
3.75%, 3/27/19 (l)		3,650		4,095,592
				44,864,733
Collateralized Mortgage Obligations — 1.0%
Fannie Mae Mortgage-Backed Securities:
Series 2004-29, Class HC, 7.50%, 7/25/30		70		70,464
Series 2005-48, Class AR, 5.50%, 2/25/35		43		46,664
Series 2006-M2, Class A2A, 5.27%, 10/25/32 (b)		4,600		4,996,971
Freddie Mac Mortgage-Backed Securities:
Series 2012-K706, Class C, 4.02%, 11/25/44 (a)(b)		1,520		1,363,513
Series 2825, Class VP, 5.50%, 6/15/15		820		872,847
Series K013, Class A2, 3.97%, 1/25/21 (b)		4,060		4,421,787
Series K017, Class A2, 2.87%, 12/25/21		18,060		18,113,602
Ginnie Mae Mortgage-Backed Securities, Series 2009-63, Class AC, 4.18%, 1/16/38		4,350		4,610,674
				34,496,522
Interest Only Collateralized Mortgage Obligations — 1.2%
Freddie Mac Mortgage-Backed Securities (b):
Series K009, Class X1, IO, 1.68%, 8/25/20		44,383		3,897,648
Series K706, Class X1, 1.73%, 10/25/18		23,902		2,097,458
Ginnie Mae Mortgage-Backed Securities (b):
Series 2010-146, Class LS, 6.46%, 4/20/39		9,098		1,420,923
Series 2010-147, Class SA, 5.93%, 5/20/40		27,525		4,889,557
Series 2010-20, Class SE, 6.01%, 2/20/40		8,733		1,526,687
Series 2010-24, Class BS, 6.19%, 12/20/38		8,278		1,269,574
Series 2010-26, Class QS, 6.01%, 2/20/40		74,517		14,482,098
Series 2010-98, Class YS, 6.36%, 12/20/39		31,035		5,411,720
Series 2011-80, Class KS, 6.43%, 6/20/41		19,330		3,346,497
				38,342,162
Mortgage-Backed Securities — 95.4%
Fannie Mae Mortgage-Backed Securities:
3.00%, 4/15/27 – 5/15/27 (m)		31,300		32,372,764
3.09%, 3/01/41 (b)		4,160		4,345,322
3.15%, 3/01/41 (b)		5,257		5,474,633
3.31%, 12/01/40 (b)		8,466		8,895,701
3.50%, 7/01/26 – 4/15/42 (m)		461,605		474,860,822
4.00%, 2/01/25 – 1/15/42 (m)		347,587		366,337,664
4.50%, 4/15/26 – 6/15/42 (m)		503,709		536,973,563
5.00%, 9/01/33 – 4/15/42 (m)		125,690		135,916,188
5.03%, 8/01/38 (b)		7,233		7,723,773
5.50%, 12/01/32 – 5/15/42 (m)		273,080		297,961,721
5.58%, 10/01/38 (b)		59		63,145
6.00%, 2/01/34 – 5/15/42 (k)(m)		415,354		457,735,596
6.50%, 12/01/37 – 4/15/42 (m)		45,467		51,049,891
2.27%, 10/01/36 (b)		63		66,481
3.05%, 2/01/41 (b)		6,476		6,762,517
3.32%, 2/01/37 (b)		124		132,236
3.50%, 5/15/42 (m)		12,400		12,740,516
4.00%, 4/15/42 – 5/15/42 (m)		92,600		96,716,364
4.50%, 4/15/42 – 5/15/42 (m)		139,600		147,921,468
5.00%, 4/15/42 – 5/15/42 (m)		108,400		116,610,449
5.25%, 2/01/37 (b)		69		73,522
5.50%, 4/15/42 – 5/15/42 (m)		91,700		99,574,770
6.00%, 4/15/42 – 5/15/42 (m)		76,600		84,355,750

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	39

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

US Government Sponsored Agency Securities	Par (000)		Value
Mortgage-Backed Securities (concluded)
Ginnie Mae Mortgage-Backed Securities:
1.75%, 5/20/34 (b)	USD	1,450	$	1,503,666
4.00%, 4/15/42 (m)		34,000		36,481,563
4.50%, 4/15/42 (m)		82,000		89,199,848
5.00%, 4/15/42 (m)		57,900		63,834,563
5.50%, 4/15/42 (m)		31,000		34,560,625
6.00%, 4/15/42 (m)		28,300		31,893,531
				3,202,138,652
Total US Government Sponsored Agency Securities — 98.9%				3,319,842,069
US Treasury Obligations
US Treasury Bonds, 3.13%, 2/15/42 (d)		142,060		136,177,864
US Treasury Inflation Indexed Bonds:
0.13%, 4/15/16 (d)		85,494		90,302,749
2.13%, 2/15/41		15,761		20,783,684
0.75%, 2/15/42		17,866		17,029,512
US Treasury Notes:
0.25%, 2/28/14 (d)		9,690		9,675,620
0.25%, 2/15/15 (d)		207,825		206,331,154
0.38%, 3/15/15 (d)		31,655		31,533,824
0.88%, 2/28/17 (d)		10,453		10,379,505
1.00%, 3/31/17		94,965		94,764,719
1.25%, 1/31/19 (d)		157,675		154,373,601
2.00%, 2/15/22 (d)		179,689		176,235,557
Total US Treasury Obligations — 28.2%				947,587,789
Total Long-Term Investments (Cost — $6,502,483,072) — 195.6%				6,570,169,533
Short-Term Securities	Shares
Money Market Funds — 0.1%
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.14% (h)(n)		2,682,201		2,682,201
	Par (000)
Borrowed Bond Agreements — 7.5%
Bank of America NA, 0.14%, Open	EUR	61,539		61,539,000
Barclays Bank Plc, NY:
0.05%, Open		2,006		2,674,868
0.05%, Open		815		1,087,074
0.10%, Open		4,162		5,550,410
0.10%, Open		4,757		6,344,143
(0.10)%, Open	USD	10,350		10,350,000
0.15%, Open	EUR	9,251		12,337,517
0.15%, Open		1,472		1,962,846
0.15%, Open		1,931		2,575,082
0.30%, Open		3,486		4,648,850
0.35%, Open		1,469		1,958,858
0.38%, Open		2,509		3,345,919
(0.63)%, Open		2,794		3,725,959
(0.63)%, Open		89		118,288
(0.75)%, Open		342		456,545
1.25%, Open		2,975		3,967,614
Short-Term Securities	Par (000)		Value
Borrowed Bond Agreements (concluded)
BNP Paribas, 0.15%, Open	USD	1,014	$	1,013,750
Citigroup:
(0.25)%, Open	EUR	3,965		5,287,869
0.00%, Open		11,079		14,776,659
0.00%, Open		16,438		21,922,721
Deutsche Bank AG:
(0.19)%, Open	USD	183		183,150
(0.27)%, Open		25,856		25,855,625
Credit Suisse, 0.15%, Open	EUR	1,558		2,077,404
UBS AG:
(0.10)%, Open		17,944		23,931,573
(0.25)%, Open		25,122		33,505,703
				251,197,427
Total Short-Term Securities (Cost — $253,621,700) — 7.6%				253,879,628
Options Purchased	Contracts
Exchange-Traded Put Options — 0.0%
Euro Stoxx 50 Index:
Strike Price USD 2,475.00, Expires 4/20/12		55		35,429
Strike Price USD 2,600.00, Expires 4/20/12		95		171,554
Eurodollar 2-Year Mid-Curve Options, Strike Price USD 99.00, Expires 5/11/12		2,056		552,550
				759,533
	Notional Amount (000)
Over-the-Counter Call Options — 0.1%
USD Currency:
Strike Price JPY 85.00, Expires 8/24/12, Broker Citibank NA	USD	59,620		973,476
Strike Price JPY 85.00, Expires 8/24/12, Broker Goldman Sachs Bank USA		59,620		973,475
				1,946,951
Over-the-Counter Interest Rate Call Swaptions — 0.0%
Receive a fixed rate of 2.65% and pay a floating rate based on 3-month LIBOR, Expires 5/01/12, Broker Bank of America NA		32,200		43,757
Receive a fixed rate of 1.90% and pay a floating rate based on 3-month LIBOR, Expires 6/01/12, Broker Morgan Stanley Capital Services, Inc.		31,200		39,346
				83,103
Over-the-Counter Put Options — 0.0%
AUD Currency, Strike Price USD 1.00, Expires 6/27/12, Broker Citibank NA	AUD	79,370		1,196,398
EUR Currency, Strike Price USD 1.30, Expires 4/12/12, Broker Citibank NA	EUR	100,710		94,156
				1,290,554

	Contracts
S&P 500 Index Fund:
Strike Price USD 1,345.79, Expires 4/20/12		3,900	15,717
Strike Price USD 1,200.00, Expires 12/21/12		48,193	427,177
			442,894

See Notes to Financial Statements.
40	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Options Purchased	Notional Amount (000)		Value
Over-the-Counter Credit Default Put Swaptions — 0.0%
Pay a return based on the return of iTraxx — Europe Sub Financial Index Series 17, Version 1, and receive a floating rate based on 3-month LIBOR, Expires 4/18/12, Broker JPMorgan Chase Bank	EUR	9,000	$	116,887
Over-the-Counter Interest Rate Put Swaptions — 0.1%
Pay a fixed rate of 2.75% and receive a floating rate based on 3-month LIBOR, Expires 5/11/12, Broker JPMorgan Chase Bank	USD	36,500		69,525
Pay a fixed rate of 2.95% and receive a floating rate based on 3-month LIBOR, Expires 6/14/12, Broker Deutsche Bank AG		12,500		596,280
Pay a fixed rate of 2.70% and receive a floating rate based on 3-month LIBOR, Expires 7/23/12, Broker Deutsche Bank AG		31,000		290,780
Pay a fixed rate of 2.13% and receive a floating rate based on 3-month LIBOR, Expires 3/21/13, Broker Deutsche Bank AG		57,000		517,668
Pay a fixed rate of 4.50% and receive a floating rate based on 3-month LIBOR, Expires 3/20/17, Broker Deutsche Bank AG		20,100		864,791
				2,339,044
Total Options Purchased (Cost — $9,348,335) — 0.2%				6,978,966
Total Investments Before Borrowed Bonds, TBA Sale Commitments and Options Written (Cost — $6,765,453,107*) — 203.4%				6,831,028,127
Borrowed Bonds	Par (000)
Belgium Government Bond:
3.25%, 9/28/16	EUR	8,790		(12,233,180	)
4.25%, 9/28/21		5,725		(8,155,632	)
BNP Paribas SA, 5.43%, 9/07/17		2,890		(4,094,111	)
France Government Bond OAT:
3.75%, 4/25/17		14,660		(21,387,973	)
3.25%, 10/25/21		34,890		(48,210,939	)
Halliburton Co., 3.25%, 11/15/21	USD	10,000		(10,270,330	)
KBC IFIMA NV, 5.00%, 3/16/16	EUR	3,650		(5,060,485	)
Portugal Obrigacoes do Tesouro OT, 4.20%, 10/15/16		1,700		(1,509,788	)
Société Générale SA, 6.13%, 8/20/18		4,850		(6,652,160	)
Société Générale SFH, 3.25%, 6/06/16		3,400		(4,663,370	)
Spain Government Bond:
4.00%, 7/30/15		1,800		(2,445,984	)
3.15%, 1/31/16		4,000		(5,190,759	)
4.60%, 7/30/19		4,800		(6,304,375	)
5.85%, 1/31/22		16,500		(22,706,057	)
UniCredit SpA, 3.95%, 2/01/16		450		(552,771	)
US Treasury Bond, 3.13%, 11/15/41	USD	1,000		(959,219	)
US Treasury Inflation Indexed Bonds, 0.13%, 1/15/22		25,262		(25,861,797	)
US Treasury Notes:
2.00%, 4/30/16		58,400		(61,178,555	)
1.38%, 2/28/19		185		(182,370	)
Total Borrowed Bonds (Proceeds — $245,775,176) — (7.4)%				(247,619,855	)

TBA Sale Commitments (m)		Par (000)		Value
Fannie Mae Mortgage-Backed Securities:
3.00%, 4/15/27	USD	10,400	$	(10,765,625	)
3.50%, 4/15/27 – 4/15/42		407,140		(418,180,325	)
4.00%, 4/15/27 – 5/15/42		341,105		(358,088,474	)
4.50%, 4/15/27 – 5/15/42		347,000		(368,923,299	)
5.00%, 4/15/42 – 5/15/42		69,100		(74,592,387	)
5.50%, 4/15/42 – 5/15/42		314,600		(342,651,531	)
6.00%, 4/15/42 – 5/15/42		288,300		(317,539,749	)
6.50%, 4/15/42 – 5/15/42		11,200		(12,540,500	)
Freddie Mac Mortgage-Backed Securities:
4.00%, 4/15/42		46,300		(48,405,205	)
4.50%, 4/15/42		69,800		(74,009,813	)
5.00%, 4/15/42		54,200		(58,347,568	)
5.50%, 5/15/42		54,900		(59,646,768	)
6.00%, 4/15/42 – 5/15/42		44,800		(49,365,812	)
Ginnie Mae Mortgage-Backed Securities:
5.00%, 4/15/42		8,200		(9,030,250	)
5.50%, 4/15/42		7,200		(8,046,000	)
6.00%, 4/15/42		6,400		(7,222,000	)
Total TBA Sale Commitments (Proceeds — $2,214,951,759) — (66.0)%				(2,217,355,306	)

Options Written		Notional Amount (000)
Over-the-Counter Call Options — (0.0)%
USD Currency:
Strike Price JPY 90.00, Expires 8/24/12, Broker Citibank NA		119,240	(596,439	)
Strike Price JPY 90.00, Expires 8/24/12, Broker Goldman Sachs Bank USA		59,620	(298,219	)
			(894,658	)
Over-the-Counter Interest Rate Call Swaptions — (0.5)%
Pay a fixed rate of 4.03% and receive a floating rate based on 3-month LIBOR, Expires 4/16/12, Broker UBS AG		54,000	(8,541,644	)
Pay a fixed rate of 1.38% and receive a floating rate based on 3-month LIBOR, Expires 8/17/12, Broker Citibank NA		34,000	(227,123	)
Pay a fixed rate of 1.51% and receive a floating rate based on 3-month LIBOR, Expires 9/14/12, Broker Citibank NA		34,000	(341,044	)
Pay a fixed rate of 3.90% and receive a floating rate based on 3-month LIBOR, Expires 6/09/14, Broker Royal Bank of Scotland Plc		65,900	(5,182,277	)
Pay a fixed rate of 3.65% and receive a floating rate based on 3-month LIBOR, Expires 3/27/17, Broker JPMorgan Chase Bank		8,900	(601,725	)
			(14,893,813	)
Over-the-Counter Put Options — (0.0)%
EUR Currency, Strike Price USD 1.25, Expires 4/12/12, Broker Citibank NA	EUR	100,710	(2,686	)

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	41

Schedule of Investments (continued)	Master Total Return Portfolio
	(Percentages shown are based on Net Assets)

Options Written	Notional Amount (000)		Value
Over-the-Counter Interest Rate Put Swaptions — (0.1)%
Receive a fixed rate of 4.03% and pay a floating rate based on 3-month LIBOR, Expires 4/16/12, Broker UBS AG	USD	54,000	$	(5	)
Receive a fixed rate of 1.72% and pay a floating rate based on 3-month LIBOR, Expires 6/22/12, Broker Morgan Stanley Capital Services, Inc.		60,100		(140,490	)
Receive a fixed rate of 1.62% and pay a floating rate based on 3-month LIBOR, Expires 6/28/12, Broker Bank of America NA		26,200		(90,796	)
Receive a fixed rate of 1.70% and pay a floating rate based on 3-month LIBOR, Expires 8/10/12, Broker Bank of America NA		35,200		(161,364	)
Receive a fixed rate of 1.85% and pay a floating rate based on 3-month LIBOR, Expires 8/15/12, Broker Deutsche Bank AG		173,700		(586,550	)
Receive a fixed rate of 2.90% and pay a floating rate based on 3-month LIBOR, Expires 1/09/13, Broker Citibank NA		56,900		(1,062,215	)
Receive a fixed rate of 3.90% and pay a floating rate based on 3-month LIBOR, Expires 6/09/14, Broker Royal Bank of Scotland Plc		65,900		(540,578	)
Receive a fixed rate of 6.00% and pay a floating rate based on 3-month LIBOR, Expires 3/20/17, Broker Deutsche Bank AG		40,200		(795,924	)
Receive a fixed rate of 3.65% and pay a floating rate based on 3-month LIBOR, Expires 3/27/17, Broker JPMorgan Chase Bank		8,900		(607,225	)
				(3,985,147	)
Total Options Written (Premiums Received — $14,771,099) — (0.6)%				(19,776,304	)
Total Investments, Net of Borrowed Bonds, TBA Sale Commitments and Options Written — 129.4%				4,346,276,662
Liabilities in Excess of Other Assets — (29.4)%				(988,622,379	)
Net Assets — 100.0%			$	3,357,654,283

* As of March 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	6,769,685,983
Gross unrealized appreciation	$	99,170,104
Gross unrealized depreciation		(37,827,960	)
Net unrealized appreciation	$	61,342,144

(a)	Security exempt from registration pursuant to Rule 144a under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)	Variable rate security. Rate shown is as of report date.
(c)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Depreciation
Evolution Group Plc	$	3,023,057		—
JPMorgan Securities, Ltd.	$	4,987,500	$	(12,500	)
Morgan Stanley Capital Services, Inc.	$	7,315,000	$	(21,145	)

(d)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(e)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(f)	Security is perpetual in nature and has no stated maturity date.
(g)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(h)	Investments in companies considered to be an affiliate of the Master Portfolio during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Par/Shares Held at September 30, 2011		Par/Shares Purchased		Par/Shares Sold			Par/Shares Held at March 31, 2012		Value at March 31, 2012		Realized Gain		Income
BlackRock Capital Finance LP, Series 1997-R2, Class AP, 1.29%, 12/25/2035	$	9,098		—		—		$	9,098	$	9,098		—	$	403
BlackRock Liquidity Funds, TempFund, Institutional Class		208,292,969		—		(205,610,968	)1		2,682,001	$	2,682,201	$	456	$	21,048
iShares JPMorgan USD Emerging Markets Bond Fund		114,500		—		—			114,500	$	12,905,295		—	$	300,549

¹ Represents net shares sold.

See Notes to Financial Statements.
42	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Schedule of Investments (continued) Master Total Return Portfolio

(i)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(j)	Convertible security.
(k)	All or a portion of security has been pledged as collateral in connection with swaps.
(l)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(m)	Represents or includes a TBA transaction. Unsettled TBA transactions as of March 31, 2012 were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Bank of America NA	$	(56,855,579	)	$	(73,384	)
Barclays Capital	$	62,705,708		$	119,958
BNP Paribas	$	48,020,656		$	(348,297	)
Citigroup Global Markets, Inc.	$	99,752,220		$	(68,483	)
Credit Suisse Securities LLC	$	260,860,336		$	459,399
Deutsche Bank Securities, Inc.	$	(272,415,464	)	$	(219,031	)
Goldman Sachs & Co.	$	138,955,350		$	(51,532	)
JPMorgan Securities, Ltd.	$	(22,536,673	)	$	70,058
Morgan Stanley Capital Services, Inc.	$	(53,954,919	)	$	(554,243	)
Nomura Securities International, Inc.	$	(181,475,370	)	$	(194,823	)
RBS Securities, Inc.	$	(4,335,152	)	$	(4,098	)
UBS Securities	$	39,091,299		$	(181,861	)
Wells Fargo Bank NA	$	142,326,598		$	(11,402	)

(n)	Represents the current yield as of report date.
•	Reverse repurchase agreements outstanding as of March 31, 2012 were as follows:

Counterparty	Interest Rate			Trade Date	Maturity Date	Net Closing Amount		Face Amount
BNP Paribas		(0.51	)%	3/30/12	4/02/12	$	10,400,146	$	10,400,735
Bank of America NA		0.12	%	3/30/12	4/02/12		27,125,362		27,125,000
Bank of America NA		0.11	%	3/30/12	4/02/12		152,287,099		152,285,238
Bank of America NA		(0.28	)%	3/30/12	4/02/12		9,677,586		9,677,887
Bank of America NA		0.03	%	3/30/12	4/02/12		206,267,000		206,266,313
Bank of America NA		0.05	%	3/30/12	4/02/12		155,113,643		155,112,781
Bank of America NA		0.02	%	3/30/12	4/02/12		31,536,364		31,536,294
Credit Suisse Securities (USA) LLC		(0.25	)%	3/30/12	Open		3,915,364		3,915,419
Deutsche Bank AG		0.21	%	3/20/12	Open		18,901,573		18,900,250
Morgan Stanley & Co. LLC		(0.05	)%	3/30/12	4/02/12		177,081,466		177,082,450
UBS Securities LLC		(0.50	)%	1/17/12	Open		3,846,636		3,850,647
UBS Securities LLC		(0.25	)%	2/01/12	Open		1,103,215		1,103,675
Total						$	797,255,454	$	797,256,689

• Financial futures contracts purchased as of March 31, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
809	2-Year US Treasury Note	Chicago Board of Trade	June 2012	$	178,093,766	$	(46,909	)
171	5-Year US Treasury Note	Chicago Board of Trade	June 2012	$	20,954,180		(22,231	)
722	30-Year US Treasury Bond	Chicago Board of Trade	June 2012	$	99,455,500		756,078
12	90-Day Euro-Dollar Future	Chicago Mercantile	December 2012	$	2,984,400		1,167
9	90-Day Euro-Dollar Future	Chicago Mercantile	September 2012	$	2,238,975		425
55	90-Day Euro-Dollar Future	Chicago Mercantile	December 2013	$	13,642,750		12,436
88	90-Day Euro-Dollar Future	Chicago Mercantile	September 2013	$	21,850,400		14,308
19	90-Day Euro-Dollar Future	Chicago Mercantile	December 2014	$	4,686,588		5,560
Total						$	720,834

• Financial futures contracts sold as of March 31, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
1,426	10-Year US Treasury Note	Chicago Board of Trade	June 2012	USD	184,644,719	$	29,995
477	Ultra Long-Term US Treasury Bond	Chicago Board of Trade	June 2012	USD	72,012,094		1,419,465
37	90-Day Euro-Dollar Future	Chicago Mercantile	June 2012	USD	9,206,525		1,911
45	90-Day Euro-Dollar Future	Chicago Mercantile	March 2013	USD	11,188,125		(1,024	)
3	90-Day Euro-Dollar Future	Chicago Mercantile	June 2013	USD	745,463		51
90	90-Day Euro-Dollar Future	Chicago Mercantile	March 2014	USD	22,302,000		19,803
31	90-Day Euro-Dollar Future	Chicago Mercantile	June 2014	USD	7,671,725		8,213
5	90-Day Euro-Dollar Future	Chicago Mercantile	September 2014	USD	1,235,563		486
750	90-Day Euro-Dollar Future	Chicago Mercantile	March 2015	USD	184,668,750		222,254

See Notes to Financial Statements.
BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	43

Schedule of Investments (continued) Master Total Return Portfolio

Financial futures contracts sold as of March 31, 2012 were as follows (concluded):

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
773	90-Day Euro-Dollar Future	Chicago Mercantile	June 2015	USD	189,964,750	$	265,729
773	90-Day Euro-Dollar Future	Chicago Mercantile	September 2015	USD	189,607,238		292,867
773	90-Day Euro-Dollar Future	Chicago Mercantile	December 2015	USD	189,259,388		312,905
105	Euro BOBL	Eurex	June 2012	EUR	17,380,174		(134,324	)
117	Euro-Bund Future	Eurex	June 2012	EUR	21,610,376		(171,619	)
123	Long Gilt Bond	London Financial Futures	June 2012	GBP	22,528,539		81,534
530	S&P 500 E-Mini Index Future	Chicago Mercantile	June 2012	USD	37,186,125		(224,040	)
Total						$	2,124,206

• Foreign currency exchange contracts as of March 31, 2012 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
AUD	13,971,065	USD	14,640,000	BNP Paribas	4/03/12	$	(168,076	)
AUD	14,000	USD	14,474	UBS AG	4/03/12		28
CAD	27,861,391	USD	27,935,000	Royal Bank of Scotland Plc	4/03/12		(2,931	)
USD	14,640,000	AUD	13,984,972	Citibank NA	4/03/12		153,671
USD	27,935,000	CAD	27,860,972	BNP Paribas	4/03/12		3,351
USD	8,765,072	AUD	8,247,500	Citibank NA	4/10/12		228,674
USD	17,519,669	AUD	16,495,000	UBS AG	4/10/12		446,873
USD	1,141,099	AUD	1,100,000	Royal Bank of Scotland Plc	4/11/12		2,697
USD	4,497,999	CAD	4,593,500	Royal Bank of Scotland Plc	4/11/12		(106,428	)
USD	2,029,846	CHF	1,850,000	Citibank NA	4/11/12		(19,743	)
USD	4,541,838	GBP	2,910,000	Citibank NA	4/11/12		(112,469	)
USD	7,783,676	GBP	4,909,000	Deutsche Bank AG	4/11/12		(67,868	)
USD	6,173,989	GBP	3,900,000	Deutsche Bank AG	4/11/12		(63,743	)
USD	2,342,141	GBP	1,490,000	Royal Bank of Scotland Plc	4/11/12		(41,115	)
USD	1,772,128	GBP	1,120,000	Royal Bank of Scotland Plc	4/11/12		(19,221	)
USD	32,351,531	GBP	21,104,500	UBS AG	4/11/12		(1,403,392	)
USD	8,379,210	GBP	5,300,000	UBS AG	4/11/12		(97,707	)
AUD	23,470,000	USD	24,319,027	Citibank NA	4/12/12		(32,407	)
USD	24,320,905	AUD	23,470,000	Citibank NA	4/12/12		34,285
USD	8,737,721	AUD	8,245,000	UBS AG	4/12/12		205,843
Foreign currency exchange contracts as of March 31, 2012 were as follows (concluded):
Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
PHP	236,322,400	USD	5,360,000	Royal Bank of Scotland Plc	4/17/12	$	138,512
PHP	242,440,000	USD	5,500,000	Standard Chartered Bank	4/17/12		140,851
SGD	7,106,550	USD	5,500,000	Royal Bank of Scotland Plc	4/17/12		153,418
SGD	6,930,480	USD	5,360,000	Standard Chartered Bank	4/17/12		153,350
USD	5,360,000	PHP	228,925,600	Morgan Stanley Capital Services, Inc.	4/17/12		33,589
USD	5,500,000	PHP	234,905,000	Morgan Stanley Capital Services, Inc.	4/17/12		34,466
USD	5,360,000	SGD	6,765,017	Royal Bank of Scotland Plc	4/17/12		(21,721	)
USD	5,500,000	SGD	6,940,945	Standard Chartered Bank	4/17/12		(21,676	)
EUR	28,962,000	USD	38,599,974	Citibank NA	4/18/12		29,097
EUR	7,830,000	USD	10,371,101	Citibank NA	4/18/12		72,433
EUR	8,733,000	USD	11,504,889	Citibank NA	4/18/12		143,052
EUR	10,820,000	USD	14,445,512	Royal Bank of Scotland Plc	4/18/12		( 13,962	)
USD	28,299,704	EUR	21,520,000	Citibank NA	4/18/12		(403,342	)
USD	22,591,810	EUR	17,000,000	Citibank NA	4/18/12		(82,529	)
USD	6,492,145	EUR	5,000,000	Deutsche Bank AG	4/18/12		(176,778	)
USD	1,325,973	EUR	1,000,000	Deutsche Bank AG	4/18/12		(7,812	)
USD	140,605,956	EUR	108,000,000	Royal Bank of Scotland Plc	4/18/12		(3,442,786	)
USD	5,273,336	EUR	4,000,000	Royal Bank of Scotland Plc	4/18/12		(61,803	)
USD	787,580	EUR	600,000	Royal Bank of Scotland Plc	4/18/12		(12,691	)
USD	9,410,000	JPY	776,089,750	Citibank NA	6/18/12		27,127
USD	8,940,000	JPY	747,309,798	Deutsche Bank AG	6/18/12		(94,925	)
Total						$	(4,473,808	)

• Credit default swaps on single-name issues — buy protection outstanding as of March 31, 2012 were as follows:

Issuer	Pay Fixed Rate		Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Eastman Chemical Co.	0.68	%	Morgan Stanley Capital Services, Inc.	9/20/13	USD	3,800	$	(24,963	)
Radian Group, Inc.	5.00	%	Citibank NA	6/20/15	USD	8,350		1,882,040
The New York Times Co.	1.00	%	Barclays Bank Plc	12/20/16	USD	20,100		80,014
Ireland Government Bond	1.00	%	Citibank NA	12/20/16	USD	4,000		(147,179	)

See Notes to Financial Statements.
44	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Schedule of Investments (continued) Master Total Return Portfolio

Credit default swaps on single-name issues — buy protection outstanding as of March 31, 2012 were as follows (continued):

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Valero	1.00%	Credit Suisse	12/20/16	USD	5,000	$	(199,260	)
Energy Corp.		Securities
		(USA) LLC
Banca Monte	5.00%	Deutsche	12/20/16	EUR	750		(59,534	)
dei Paschi di		Bank AG
Siena SpA
Transocean	1.00%	Goldman Sachs	12/20/16	USD	5,750		(100,027	)
Worldwide, Inc.		International
Svenska Cellulosa	1.00%	Morgan	12/20/16	EUR	2,565		(78,850	)
Aktiebolaget SCA		Stanley Capital
		Services, Inc.
Lincoln	1.00%	UBS AG	12/20/16	USD	5,000		(213,505	)
National Corp.
Henkel AG &	1.00%	Barclays Bank Plc	3/20/17	EUR	1,950		(22,393	)
Co. KGaA
PostNL NV	1.00%	BNP Paribas	3/20/17	EUR	3,500		(331,940	)
Ireland	1.00%	Citibank NA	3/20/17	USD	2,000		(2,389	)
Government Bond
Ireland	1.00%	Goldman Sachs	3/20/17	USD	5,000		(149,605	)
Government Bond		International
Ireland	1.00%	Goldman Sachs	3/20/17	USD	11,000		(341,081	)
Government Bond		International
Banca Monte	5.00%	JPMorgan	3/20/17	EUR	3,800		(136,166	)
dei Paschi di Siena SpA		Chase Bank NA
Sara Lee Corp.	1.00%	JPMorgan	3/20/17	USD	4,216		(5,905	)
		Chase Bank NA
Telenor ASA	1.00%	JPMorgan	3/20/17	EUR	2,000		(7,210	)
		Chase Bank NA
WPP 2005 Ltd.	1.00%	JPMorgan	3/20/17	EUR	2,000		(49,332	)
		Chase Bank NA
Koninklijke	1.00%	Barclays Bank Plc	6/20/17	EUR	2,500		(6,393	)
Philips
Electronics NV
Akzo Nobel NV	1.00%	BNP Paribas	6/20/17	EUR	1,550		1,132
Banco	1.00%	BNP Paribas	6/20/17	EUR	5,000		34,588
Bilbao Vizcaya
Argentina SA
Banco	3.00%	BNP Paribas	6/20/17	EUR	2,000		101,045
Bilbao Vizcaya
Argentina SA
Banco	5.00%	BNP Paribas	6/20/17	EUR	3,300		22,737
Bilbao Vizcaya
Argentina SA
Deutsche Bank AG	1.00%	BNP Paribas	6/20/17	EUR	4,000		29,133
Peugeot SA	1.00%	BNP Paribas	6/20/17	EUR	6,000		(45,614	)
Saint-Gobai	1.00%	BNP Paribas	6/20/17	EUR	2,555		8,800
Nederland BV
Veolia	1.00%	BNP Paribas	6/20/17	EUR	2,565		(65,933	)
Environnement
Portugal	1.00%	Citibank NA	6/20/17	USD	6,000		(101,593	)
Government Bond
Vivendi SA	1.00%	Citibank NA	6/20/17	EUR	2,565		1,055

Credit default swaps on single-name issues — buy protection outstanding as of March 31, 2012 were as follows (concluded):

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Clariant AG	1.00%	Deutsche	6/20/17	EUR	1,500	$	252
		Bank AG
Diageo Plc	1.00%	Deutsche	6/20/17	EUR	3,650		(2,300	)
		Bank AG
Royal Bank of	1.00%	Deutsche	6/20/17	EUR	2,200		2,859
Scotland Plc		Bank AG
Telekom AG	1.00%	Deutsche	6/20/17	EUR	3,710		(21,184	)
		Bank AG
Veolia	1.00%	Deutsche	6/20/17	EUR	1,500		(11,225	)
Environnement		Bank AG
Bertelsmann AG	1.00%	Goldman Sachs	6/20/17	EUR	4,000		(5,028	)
		International
Royal Bank of	5.00%	JPMorgan	6/20/17	EUR	1,000		(2,496	)
Scotland Plc		Chase Bank NA
Peugeot SA	1.00%	Morgan	6/20/17	EUR	1,000		27,618
		Stanley Capital
		Services, Inc.
Valeo SA	1.00%	Morgan	6/20/17	EUR	2,000		12,119
		Stanley Capital
		Services, Inc.
Wolters Kluwer NV	1.00%	Morgan	6/20/17	EUR	2,000		(2,259	)
		Stanley Capital
		Services, Inc.
Total						$	70,028

• Credit default swaps on single-name issues — sold protection outstanding as of March 31, 2012 were as follows:

Index	Receive Fixed Rate	Counterparty	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Aviva USA	1.00%	Deutsche	5/25/12	Not Rated	USD	12,610	$	717
Corp.		Bank AG
ARAMARK	5.00%	JPMorgan	6/20/16	B+	USD	1,850		104,426
Corp.		Chase Bank NA
MetLife, Inc.	1.00%	Bank of	9/20/16	A–	USD	30		1,045
		America NA
Banca Monte	3.00%	BNP Paribas	9/20/16	BBB	EUR	2,000		(130,629	)
dei Paschi di
Siena SpA
Landesbank	1.00%	BNP Paribas	9/20/16	A	EUR	1,200		24,872
Hessen-
Thüringen
MetLife, Inc.	1.00%	Credit Suisse	9/20/16	A–	USD	1,055		44,358
		Securities
		(USA) LLC
Banca Monte	5.00%	Deutsche	9/20/16	BBB	EUR	750		(57,265)
dei Paschi di		Bank AG
Siena SpA
MetLife, Inc.	1.00%	Deutsche	9/20/16	A–	USD	3,680		128,938
		Bank AG
MetLife, Inc.	1.00%	Goldman Sachs	9/20/16	A–	USD	2,825		93,292
		International
Banca Monte	3.00%	JPMorgan	9/20/16	BBB	EUR	2,200		(290,047	)
dei Paschi di		Chase Bank NA
Siena SpA

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	45

Schedule of Investments (continued) Master Total Return Portfolio

Credit default swaps on single-name issues — sold protection outstanding as of March 31, 2012 were as follows (concluded):

Index	Receive Fixed Rate	Counterparty	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
MetLife, Inc.	1.00%	Morgan	9/20/16	A–	USD	4,580	$	153,823
		Stanley Capital
		Services, Inc.
MetLife, Inc.	1.00%	Morgan	9/20/16	A–	USD	2,770		71,011
		Stanley Capital
		Services, Inc.
MetLife, Inc.	1.00%	Bank of	12/20/16	A–	USD	5,000		226,772
		America NA
Italy	1.00%	Citibank NA	12/20/16	BBB+	USD	4,000		133,344
Government
Bond
MetLife, Inc.	1.00%	Citibank NA	12/20/16	A–	USD	3,060		75,065
MetLife, Inc.	1.00%	Citibank NA	12/20/16	A–	USD	2,880		87,318
MetLife, Inc.	1.00%	JPMorgan	12/20/16	A–	USD	5,000		226,648
		Chase Bank NA
Siemens AG	1.00%	Barclays	3/20/17	A+	EUR	2,500		48,675
		Bank Plc
MetLife, Inc.	1.00%	Citibank NA	3/20/17	A–	USD	6,740		80,823
Energy	1.00%	Credit Suisse	3/20/17	BB	USD	5,000		130,466
Transfer		Securities
Partners LP		(USA) LLC
Tesco Plc	1.00%	Goldman Sachs	3/20/17	A–	EUR	3,500		28,610
		International
MetLife, Inc.	1.00%	UBS AG	3/20/17	A–	USD	4,930		59,118
Credit Suisse	1.00%	BNP Paribas	6/20/17	A+	EUR	4,000		(26,493	)
Group AG
Banco	3.00%	Citibank NA	6/20/17	BB	EUR	2,000		(23,047	)
Santander SA
Vodafone	1.00%	Citibank NA	6/20/17	A–	EUR	910		(695	)
Group Plc
Deutsche	1.00%	Deutsche	6/20/17	BBB+	EUR	550		677
Telekom AG		Bank AG
E.ON AG	1.00%	Deutsche	6/20/17	BBB–	EUR	3,250		(4,961	)
		Bank AG
France	1.00%	Deutsche	6/20/17	A–	EUR	550		(40	)
Telecom SA		Bank AG
Lloyds TSB	1.00%	Deutsche	6/20/17	A	EUR	2,200		(13,898	)
Bank Plc		Bank AG
Alstom SA	1.00%	Goldman Sachs	6/20/17	BBB	EUR	2,000		(27,535	)
		International
Anheuser-	1.00%	JPMorgan	6/20/17	A–	EUR	3,250		6,755
Busch		Chase Bank NA
InBev NV
Lloyds TSB	5.00%	JPMorgan	6/20/17	A	EUR	1,000		(3,224	)
Bank Plc		Chase Bank NA
Finmeccanica	5.00%	UBS AG	6/20/17	BBB–	EUR	1,000		6,595
SpA
Total							$	1,155,514

1	Using S&P’s rating.
2	The maximum potential amount the Master Portfolio may pay should a negative credit event take place as defined under the terms of agreement.

• Credit default swaps on traded indexes — buy protection outstanding as of March 31, 2012 were as follows:

Index	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
iTraxx — Europe	5.00%	JPMorgan	6/20/15	EUR	7,095	$	11,797
Sub Financial		Chase Bank NA
Index Series 9
Dow Jones CDX	5.00%	Morgan	12/20/15	USD	10,740		(65,447)
Emerging Markets		Stanley Capital
Series 14, Version 1		Services, Inc.
Dow Jones CDX	5.00%	Barclays Bank Plc	6/20/16	USD	58,200		(2,689,795)
North America
High Yield Index
Series 16, Version 3
Dow Jones CDX	1.00%	Credit Suisse	6/20/16	USD	25,000		(290,158)
North America		Securities
Investment Grade		(USA) LLC
Index Series 16,
Version 1
Dow Jones CDX	1.00%	Credit Suisse	6/20/16	USD	3,960		(66,916)
North America		Securities
Investment Grade		(USA) LLC
Index Series 16,
Version 1
iTraxx — Europe	5.00%	Credit Suisse	6/20/16	EUR	2,950		155,828
Sub Financial		Securities
Index Series 15,		(USA) LLC
Version 1
Dow Jones CDX	1.00%	Goldman Sachs	6/20/16	USD	6,508		(83,295)
North America		International
Investment Grade
Index Series 16,
Version 1
Dow Jones CDX	1.00%	JPMorgan	6/20/16	USD	223		(3,320)
North America		Chase Bank NA
Investment Grade
Index Series 16,
Version 1
iTraxx — Europe	5.00%	UBS AG	6/20/16	EUR	605		16,736
Sub Financial
Index Series 15,
Version 1
iTraxx — Europe	5.00%	Barclays Bank Plc	12/20/16	EUR	2,364		(195,031)
Sub Financial
Index Series 16,
Version 1
Dow Jones CDX	1.00%	Goldman Sachs	12/20/16	USD	110,000		(1,082,877)
North America		International
Investment Grade
Index Series 17,
Version 1
Dow Jones CDX	1.00%	Morgan	12/20/16	USD	55,000		(1,115,297)
North America		Stanley Capital
Investment Grade		Services, Inc.
Index Series 17,
Version 1
Dow Jones CDX	1.00%	Morgan	12/20/16	USD	39,910		(680,970)
North America		Stanley Capital
Investment Grade		Services, Inc.
Index Series 17,
Version 1

See Notes to Financial Statements.
46	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Schedule of Investments (continued) Master Total Return Portfolio

Credit default swaps on traded indexes — buy protection outstanding as of March 31, 2012 were as follows (concluded):

Index	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	EUR	55,000	$	(532,915	)
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	EUR	55,000		(390,552	)
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	EUR	95,200		(576,159	)
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	EUR	47,600		(238,154	)
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	EUR	95,200		(388,938	)
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	EUR	3,550		(165,699	)
iTraxx — Europe Sub Financial Index Series 17, Version 1	1.00%	UBS AG	6/20/17	EUR	24,470		173,927
MCDX North America Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	6/20/21	USD	20,680		364,792
Total						$	(7,842,443	)

• Credit default swaps on traded indexes — sold protection outstanding as of March 31, 2012 were as follows:

Index	Receive Fixed Rate	Counterparty	Expiration Date	Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
iTraxx — Europe Sub Financial Index Series 9	5.00%	JPMorgan Chase Bank NA	6/20/13	A–	EUR	4,730	$	(215,700	)
Dow Jones CDX North America High Yield Index Series 16, Version 3	5.00%	Goldman Sachs International	6/20/16	B+	USD	58,200		699,756
Dow Jones CDX North America Investment Grade Index Series 17, Version 1	1.00%	Credit Suisse Securities (USA) LLC	12/20/16	A–	USD	20,000		301,120

Credit default swaps on traded indexes — sold protection outstanding as of March 31, 2012 were as follows (concluded):

Index	Receive Fixed Rate	Counterparty	Expiration Date	Credit Rating1		Notional Amount (000)2	Unrealized Appreciation (Depreciation)
Dow Jones CDX North America Investment Grade Index Series 17, Version 1	1.00%	Goldman Sachs International	12/20/16	A–	USD	55,000	$	714,855
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	JPMorgan Chase Bank NA	12/20/16	BB–	EUR	12,500		(179,785	)
iTraxx — Europe Sub Financial Index Series 16, Version 1	5.00%	JPMorgan Chase Bank NA	12/20/16	BB–	EUR	1,970		61,372
iTraxx — Europe Sub Financial Index Series 16, Version 1	5.00%	JPMorgan Chase Bank NA	12/20/16	BB–	EUR	394		12,012
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	BB–	EUR	47,000		(145,023	)
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	BB–	EUR	66,500		(1,606,929	)
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	BB–	EUR	23,800		418,535
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	BB–	EUR	55,000		1,060,945
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	BB–	EUR	47,600		898,230
iTraxx — Europe Sub Financial Index Series 16, Version 1	1.00%	Morgan Stanley Capital Services, Inc.	12/20/16	BB–	EUR	47,600		774,664
iTraxx — Europe Sub Financial Index Series 17, Version 1	1.00%	JPMorgan Chase Bank NA	6/20/17	A–	EUR	4,500		(44,982	)
MCDX North America Series 14	0.00%	Goldman Sachs International	6/20/20	AA	USD	10,340		160,616
Markit CMBX North America AAA Index Series 3	0.08%	Morgan Stanley Capital Services, Inc.	12/13/49	A+	USD	5,430		257,202
Markit CMBX North America AAA Index Series 4	0.35%	Morgan Stanley Capital Services, Inc.	2/17/51	A–	USD	5,430		262,750
Total							$	3,429,638

1	Using S&P’s rating of the underlying securities.
2	The maximum potential amount the Master Portfolio may pay should a negative credit event take place as defined under the terms of agreement. event take place as defined under the terms of agreement.

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	47

Schedule of Investments (continued) Master Total Return Portfolio

• Interest rate swaps outstanding as of March 31, 2012 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date		Notional Amount (000)	Unrealized Appreciation (Depreciation)
0.69%1	3-month LIBOR	Barclays Bank Plc	9/07/12	USD	210,000	$	(184,768	)
0.92%1	3-month LIBOR	Deutsche Bank AG	2/28/13	USD	88,000		(331,457	)
1.32%1	3-month LIBOR	Citibank NA	12/17/13	USD	31,000		(403,189	)
1.41%1	3-month LIBOR	Deutsche Bank AG	12/20/13	USD	23,600		(344,216	)
1.26%1	3-month LIBOR	Deutsche Bank AG	12/24/13	USD	48,400		(581,034	)
0.60%1	3-month LIBOR	Deutsche Bank AG	3/15/14	USD	47,900		(16,219	)
1.26%2	6-month EURIBOR	Deutsche Bank AG	2/14/15	EUR	1,900		3,124
2.46%1	3-month LIBOR	Deutsche Bank AG	4/04/16	USD	3,800		(216,092	)
2.39%2	3-month LIBOR	Deutsche Bank AG	4/14/16	USD	7,700		418,590
1.25%1	3-month LIBOR	Deutsche Bank AG	10/05/16	USD	34,100		(155,020	)
1.39%1	3-month LIBOR	Deutsche Bank AG	3/19/17	USD	120,600		(718,299	)
1.39%1	3-month LIBOR	Deutsche Bank AG	3/19/17	USD	52,000		(309,714	)
1.36%2	3-month LIBOR	Deutsche Bank AG	3/26/17	USD	19,000		75,684
1.26%2	3-month LIBOR	Citibank NA	3/29/17	USD	5,000		(3,256	)
1.38%2	3-month LIBOR	Citibank NA	8/21/17	USD	34,000		(124,862	)
1.51%2	3-month LIBOR	Citibank NA	9/18/17	USD	34,000		24,643
2.04%2	6-month EURIBOR	Deutsche Bank AG	10/06/17	EUR	24,245		594,194
2.38%1	3-month LIBOR	Morgan Stanley Capital Services, Inc.	11/17/17	USD	300		(15,160	)
1.74%2	3-month LIBOR	Deutsche Bank AG	3/30/18	USD	8,400		97,623
1.74%2	3-month LIBOR	Deutsche Bank AG	3/30/18	USD	22,700		263,815
2.88%2	6-month EURIBOR	Deutsche Bank AG	7/21/18	EUR	2,250		186,189
3.51%1	3-month LIBOR	BNP Paribas	5/20/20	USD	400		(45,973	)

Interest rate swaps outstanding as of March 31, 2012 were as follows (concluded):

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)			Unrealized Appreciation (Depreciation)
3.27%1	3-month LIBOR	Deutsche Bank AG	5/16/21	USD	9,510	$	(884,390	)
2.10%1	3-month LIBOR	Morgan Stanley Capital Services, Inc.	1/05/22	USD	2,500		36,218
2.24%1	3-month LIBOR	Morgan Stanley Capital Services, Inc.	3/16/22	USD	8,600		36,512
2.34%2	3-month LIBOR	Deutsche Bank AG	3/19/22	USD	38,400		182,072
2.36%2	3-month LIBOR	Deutsche Bank AG	3/20/22	USD	5,800		38,081
2.46%1	3-month LIBOR	Goldman Sachs International	3/22/22	USD	37,800		(587,791	)
2.36%1	3-month LIBOR	Citibank NA	3/26/22	USD	16,800		(110,734	)
2.22%2	3-month LIBOR	Deutsche Bank AG	4/03/22	USD	5,000		(33,457	)
2.29%2	3-month LIBOR	Morgan Stanley Capital Services, Inc.	4/03/22	USD	9,200		—
2.70%1	3-month LIBOR	Deutsche Bank AG	1/11/42	USD	9,200		651,974
2.85%1	3-month LIBOR	Bank of America NA	2/09/42	USD	4,600		186,701
Total						$	(2,270,211	)

1	Master Portfolio pays a fixed interest rate and receives floating rate.
2	Master Portfolio pays a floating interest rate and receives fixed rate.

• Total return swaps outstanding as of March 31, 2012 were as follows:

Reference Entity	Master Portfolio Pays/Receives the Total Return of the Reference Entity	Fixed Rate/ Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
Change in Return of the Consumer Price Index for All Urban Consumers	Pays	2.18%3	Bank of America NA	10/06/21	$	19,240	$	(786,526	)
Change in Return on Markit IOS Index 4.50%, 30-year, fixed-rate Fannie Mae	Receives	1-month LIBOR	Goldman Sachs International	1/12/40	$	10,356		(14,215	)
Change in Return on Markit IOS Index 4.50%, 30-year, fixed-rate Fannie Mae	Receives	1-month LIBOR	Barclays Bank Plc	1/12/41	$	3,256		(3,115	)
Change in Return on Markit IOS Index 4.50%, 30-year, fixed-rate Fannie Mae	Pays	1-month LIBOR	Citibank NA	1/12/41	$	13,645		(303,100	)
Total							$	(1,106,956	)

³ Net payment made at termination.

See Notes to Financial Statements.
48	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Schedule of Investments (continued) Master Total Return Portfolio

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

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

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

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

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

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

The following tables summarize the inputs used as of March 31, 2012 in determining the fair valuation of the Master Portfolio’s investments and derivative financial instruments:

Valuation Inputs	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities		—		$	240,433,283		$	14,832,534	$	255,265,817
Corporate Bonds		—			1,368,629,521			—		1,368,629,521
Floating Rate Loan Interests		—			75,469,666			24,659,708		100,129,374
Foreign Agency Obligations		—			80,720,483			—		80,720,483
Investment Companies	$	12,905,295			—			—		12,905,295
Non-Agency Mortgage-Backed Securities		—			401,471,302			29,874,501		431,345,803
Preferred Securities		4,333,516			38,464,925			—		42,798,441
Taxable Municipal Bonds		—			10,944,941			—		10,944,941
US Government Sponsored Agency Securities		—			3,319,842,069			—		3,319,842,069
US Treasury Obligations		—			947,587,789			—		947,587,789
Short-Term Securities:
Money Market Fund		2,682,201			—			—		2,682,201
Borrowed Bond Agreements		—			251,197,427			—		251,197,427
Liabilities:
Investments:
Borrowed Bonds		—			(247,619,855	)		—		(247,619,855	)
TBA Sale Commitments		—			(2,217,355,306	)		—		(2,217,355,306	)
Total	$	19,921,012		$	4,269,786,245		$	69,366,743	$	4,359,074,000
Valuation Inputs	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Credit contracts		—		$	10,237,431		$	161,333	$	10,398,764
Equity contracts	$	206,983			442,894			—		649,877
Foreign currency transactions		—			5,238,822			—		5,238,822
Interest rate contracts		3,997,737			5,217,567			—		9,215,304
Liabilities:
Credit contracts		—			(13,469,140	)		—		(13,469,140	)
Equity contracts		(224,040	)		—			—		(224,040	)
Foreign currency transactions		—			(7,372,469	)		—		(7,372,469	)
Interest rate contracts		(376,107	)		(24,265,021	)		—		(24,641,128	)
Other contracts		—			(786,526	)		—		(786,526	)
Total	$	3,604,573		$	(24,756,442	)	$	161,333	$	(20,990,536	)

¹ Derivative financial instruments are swaps, financial futures contracts, foreign currency exchange contracts and options. Swaps, financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument and options are shown at value.

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	49

Schedule of Investments (concluded) Master Total Return Portfolio

• The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

	Asset-Backed Securities			Floating Rate Loan Interests			Non-Agency Mortgage-Backed Securities			Total
Assets:
Balance, as of September 30, 2011	$	43,570,827		$	27,890,171		$	11,648,206		$	83,109,204
Accrued discounts/premiums		(176	)		31,625			(1,725	)		29,724
Net realized gain (loss)		31			30,750			95,049			125,830
Net change in unrealized appreciation/depreciation1		22,371			7,352			(45,012	)		(15,289	)
Purchases		—			218,750			28,798,291			29,017,041
Sales		(885,068	)		(3,518,940	)		(6,727,888	)		(11,131,896	)
Transfers in2		—			—			—			—
Transfers out2		(27,875,451	)		—			(3,892,420	)		(31,767,871	)
Balance, as of March 31, 2012	$	14,832,534		$	24,659,708		$	29,874,501		$	69,366,743

¹ Included in the related net change in unrealized appreciation/depreciation in the Statement of Operations. The change in unrealized appreciation/depreciation on investments still held at March 31, 2012 was $(15,289).

• The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used in determining fair value:

	Credit Contracts
Assets/Liabilities:
Balance, as of September 30, 2011	$	(440,436	)
Accrued discounts/premiums		272,833
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation3		601,769
Purchases		—
Issuances4		—
Sales		—
Settlements5		(272,833	)
Transfers in2		—
Transfers out2		—
Balance, as of March 31, 2012	$	161,333

2	The Master Portfolio’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.
3	Included in the related net change in unrealized appreciation/depreciation in the Statement of Operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at March 31, 2012 was $601,769.
4	Issuances represent upfront cash received on certain derivative financial instruments.
5	Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Master Portfolio had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets.

See Notes to Financial Statements.
50	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Statement of Assets and Liabilities Master Total Return Portfolio

March 31, 2012 (Unaudited)
Assets
Investments at value — unaffiliated (cost — $6,750,238,187)	$	6,815,431,533
Investments at value — affiliated (cost — $15,214,920)		15,596,594
Unrealized appreciation on swaps		13,077,297
Unrealized appreciation on foreign currency exchange contracts		2,001,317
Foreign currency at value (cost — $20,911,827)		20,971,302
Cash		94,473
TBA sale commitments receivable		2,214,951,759
Investments sold receivable		650,170,959
Swap premiums paid		48,689,173
Interest receivable		32,023,171
Cash pledged as collateral for swaps		9,520,000
Cash pledged as collateral for financial futures contracts		3,621,000
Swaps receivable		3,598,096
Cash pledged as collateral for reverse repurchase agreements		1,530,000
Variation margin receivable		950,254
Principal paydown receivable		261,458
Prepaid expenses		25,566
Other assets		2,292
Total assets		9,832,516,244
Liabilities
Investments purchased payable		3,104,352,732
TBA sale commitments at value (proceeds — $2,214,951,759)		2,217,355,306
Borrowed bonds at value (proceeds — $245,775,176)		247,619,855
Reverse repurchase agreements		797,256,689
Swap premiums received		38,113,608
Options written at value (premiums received — $14,771,099)		19,776,304
Unrealized depreciation on swaps		19,641,727
Interest expense payable		6,964,174
Withdrawals payable to investors		6,581,942
Unrealized depreciation on foreign currency exchange contracts		6,475,125
Swaps payable		4,521,658
Cash held as collateral for options and swaps		3,340,000
Cash held as collateral for reverse repurchase agreements		232,000
Investment advisory fees payable		210,827
Directors’ fees payable		48,152
Other affiliates payable		25,068
Other accrued expenses payable		422,935
Other liabilities		1,923,859
Total liabilities		6,474,861,961
Net Assets	$	3,357,654,283
Net Assets Consist of
Investors’ capital	$	3,308,716,416
Net unrealized appreciation		48,937,867
Net Assets	$	3,357,654,283

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	51

Statement of Operations Master Total Return Portfolio

Six Months Ended March 31, 2012 (Unaudited)
Investment Income
Interest — unaffiliated	$	88,484,347
Interest — affiliated		403
Dividends — affiliated		321,597
Foreign taxes withheld		(34,155	)
Total income		88,772,192
Expenses
Investment advisory		1,301,739
Accounting services		376,143
Custodian		290,798
Professional		111,661
Directors		48,319
Printing		3,559
Miscellaneous		69,808
Total expenses excluding interest expense		2,202,027
Interest expense		5,641,622
Total expenses		7,843,649
Less fees waived by advisor		(15,214	)
Total expenses after fees waived		7,828,435
Net investment income		80,943,757
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated		(24,129,667	)
Investments — affiliated		456
Financial futures contracts		(13,234,011	)
Options written		17,539,392
Securities sold short		(647,352	)
Borrowed bonds		28,496
Swaps		5,290,734
Foreign currency transactions		9,215,237
		(5,936,715	)
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		79,622,384
Financial futures contracts		1,608,432
Options written		14,345,997
Swaps		(20,144,883	)
Borrowed bonds		(4,875,996	)
Foreign currency transactions		(11,257,999	)
		59,297,935
Total realized and unrealized gain		53,361,220
Net Increase in Net Assets Resulting from Operations	$	134,304,977

See Notes to Financial Statements.
52	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012

Statements of Changes in Net Assets Master Total Return Portfolio

Increase (Decrease) in Net Assets:	Six Months Ended March 31, 2012 (Unaudited)			Year Ended September 30, 2011
Operations
Net investment income	$	80,943,757		$	188,832,427
Net realized loss		(5,936,715	)		(4,253,006	)
Net change in unrealized appreciation/depreciation		59,297,935			(68,039,857	)
Net increase in net assets resulting from operations		134,304,977			116,539,564
Capital Transactions
Proceeds from contributions		509,723,155			1,794,583,835
Value of withdrawals		(1,185,737,918	)		(1,603,649,352	)
Net increase (decrease) in net assets derived from capital transactions		(676,014,763	)		190,934,483
Net Assets
Total increase (decrease) in net assets		(541,709,786	)		307,474,047
Beginning of period		3,899,364,069			3,591,890,022
End of period	$	3,357,654,283		$	3,899,364,069

Financial Highlights Master Total Return Portfolio

	Six Months Ended March 31, 2012 (Unaudited)			Year Ended September 30,
				2011			2010			2009			2008			2007
Total Investment Return
Total investment return		3.76	%1		2.82	%		13.05	%		10.95	%		(5.76	)%		4.45	%
Ratios to Average Net Assets
Total expenses		0.42	%2		0.56	%		0.58	%		0.17	%		0.15	%		0.10	%
Total expenses after fees waived and paid indirectly		0.42	%2		0.56	%		0.58	%		0.17	%		0.15	%		0.10	%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.12	%2		0.11	%		0.13	%		0.13	%		0.10	%		0.10	%
Net investment income		4.37	%2		4.67	%		4.97	%		6.10	%		5.59	%		5.35	%
Supplemental Data
Net assets, end of period (000)	$	3,357,654		$	3,899,364		$	3,591,890		$	3,123,655		$	3,244,949		$	3,980,172
Portfolio turnover		616	%3		1,771	%4		1,754	%5		708	%6		1,081	%7		153	%

1	Aggregate total investment return.
2	Annualized.
3	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 496%.
4	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,379%.
5	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 1,248%.
6	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 469%.
7	Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 418%.

See Notes to Financial Statements.
	BLACKROCK BALANCED CAPITAL FUND, INC.	MARCH 31, 2012	53

Notes to Financial Statements (Unaudited) Master Total Return Portfolio

1. Organization and Significant Accounting Policies:

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

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

Valuation: US GAAP defines fair value as the price the Master Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Master Portfolio fair values its financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The Master Portfolio values its bond investments on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information 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. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. Financial futures contracts traded on exchanges are valued at their last sale price. To-be-announced (“TBA”) commitments are valued on the basis of last available bid prices or current market quotations provided by pricing services. Swap agreements are valued utilizing quotes received daily by the Master Portfolio’s pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. Investments in open-end registered investment companies are valued at net asset value each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System (“NASDAQ”) are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security.

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

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 the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) options and swaptions are valued by an independent pricing service using a mathematical model which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

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

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of the Master Portfolio’s net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such instruments, those instruments may be Fair Value Assets and be valued at their fair value, as determined in good faith by the investment advisor using a pricing service and/or policies approved by the Board.

54 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

Notes to Financial Statements (continued) Master Total Return Portfolio

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

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

Asset-Backed and Mortgage-Backed Securities: The Master Portfolio may invest in asset-backed securities. Asset-backed securities are generally issued as pass-through certificates, which represent undivided fractional ownership interests in an underlying pool of assets, or as debt instruments, which are also known as collateralized obligations, and are generally issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security subject to such a prepayment feature will have the effect of shortening the maturity of the security. If the Master Portfolio has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.

The Master Portfolio may purchase certain mortgage pass-through securities. There are a number of important differences among the agencies and instrumentalities of the US government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by Ginnie Mae are guaranteed as to the timely payment of principal and interest by Ginnie Mae and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed Mortgage Pass-Through Certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States but are supported by the right of the issuer to borrow from the Treasury.

Inflation-Indexed Bonds: The Master Portfolio may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation rises or falls, the principal value of inflation-indexed bonds will be adjusted upward or downward, and consequently the interest payable on these securities (calculated with respect to a larger or smaller principal amount) will be increased or reduced, respectively. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of US Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Multiple Class Pass-Through Securities: The Master Portfolio may invest in multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities. These multiple class securities may be issued by Ginnie Mae, US government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by, and multiple class pass-through securities represent direct ownership interests in, a pool of residential or commercial mortgage loans or mortgage pass-through securities (the “Mortgage Assets”), the payments on which are used to make payments on the CMOs or multiple pass-through securities. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated pre-payments of principal, the Master Portfolio may not fully recoup its initial investment in IOs.

Stripped Mortgage-Backed Securities: The Master Portfolio may invest in stripped mortgage-backed securities issued by the US government, its agencies and instrumentalities. Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest (IOs) and principal (POs) distributions on a pool of Mortgage Assets. The Master Portfolio also may invest in stripped mortgage-backed securities that are privately issued.

Zero-Coupon Bonds: The Master Portfolio 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.

Capital Trusts: The Master Portfolio may invest in capital trusts. These securities are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can

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Notes to Financial Statements (continued) Master Total Return Portfolio

be structured as either fixed or adjustable coupon securities that can have either a perpetual or stated maturity date. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. Payments on these securities are treated as interest rather than dividends for federal income tax purposes. These securities generally are rated below that of the issuing company’s senior debt securities.

Preferred Stock: The Master Portfolio may invest in preferred stocks. Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well) but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Floating Rate Loan Interests: The Master Portfolio may invest in floating rate loan interests. The floating rate loan interests the Master Portfolio holds are typically issued to companies (the “borrower”) by banks, other financial institutions, and privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Master Portfolio may invest in obligations of borrowers who are in bankruptcy proceedings. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally the lending rate offered by one or more European banks, such as LIBOR (London Interbank Offered Rate), the prime rate offered by one or more US banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. The Master Portfolio considers these investments to be investments in debt securities for purposes of its investment policies.

When the Master Portfolio purchases a floating rate loan interest it may receive a facility fee and when it sells a floating rate loan interest it may pay a facility fee. On an ongoing basis, the Master Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by the Master Portfolio upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. The Master Portfolio may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. The Master Portfolio may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in the Master Portfolio having a contractual relationship only with the lender, not with the borrower. The Master Portfolio will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, the Master Portfolio generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower, and the Master Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, the Master Portfolio will assume the credit risk of both the borrower and the lender that is selling the Participation. The Master Portfolio’s investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, the Master Portfolio may be treated as general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in the Master Portfolio having a direct contractual relationship with the borrower, and the Master Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

Borrowed Bond Agreements: The Master Portfolio may enter into borrowed bond agreements. In a borrowed bond agreement, the Master Portfolio borrows a bond from a counterparty in exchange for cash collateral with the commitment that the security and the cash will be returned to the counterparty and the Master Portfolio, respectively, at a mutually agreed upon rate and date. Certain agreements have no stated maturity and can be terminated by either party at any time. Borrowed bond agreements are entered into primarily in connection with short sales of bonds. Earnings on cash collateral and compensation to the lender of the bond are based on agreed upon rates between the Master Portfolio and the counterparty. The value of the underlying cash collateral approximates the market value and accrued interest of the borrowed bond. To the extent that a borrowed bond transaction exceeds one business day, the value of the cash collateral in the possession of the coun-terparty is monitored on a daily basis to ensure the adequacy of the collateral. As the market value of the borrowed bond changes, the cash collateral is periodically increased or decreased with a frequency and in amounts prescribed in the borrowed bond agreement. Full realization of the collateral by the Master Portfolio may be limited if the value of an investment purchased with the cash collateral by the lender decreases. The Master Portfolio may also experience delays in gaining access to the collateral.

Short Sales: The Master Portfolio may enter into short sale transactions in which the Master Portfolio sells a security it does not hold in anticipation of a decline in the market price of that security. When the Master Portfolio makes a short sale, it will borrow the security sold short (borrowed bond) and deliver it to the counterparty to which it sold the security short. An amount equal to the proceeds received by the Master Portfolio is reflected

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as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Master Portfolio is required to repay the counterparty any interest received on the security sold short, which is shown as interest expense in the Statement of Operations. The Master Portfolio may pay a fee on the assets borrowed from the counterparty, which is shown as stock loan fees in the Statement of Operations. The Master Portfolio maintains a segregated account of securities or deposits cash with the broker-dealer as collateral for the short sales. The Master Portfolio may receive interest on its cash collateral deposited with the broker-dealer. The Master Portfolio is exposed to market risk based on the amount, if any, that the market value of the security increases beyond the market value at which the position was sold. Thus, a short sale of a security involves the risk that instead of declining, the price of the security sold short will rise. The short sale of securities involves the possibility of a theoretically unlimited loss since there is a theoretically unlimited potential for the market price of the security sold short to increase. A gain, limited to the price at which the Master Portfolio sold the security short, or a loss, unlimited as to the dollar amount, will be recognized upon the termination of a short sale if the market price is greater or less than the proceeds originally received. There is no assurance the Master Portfolio will be able to close out a short position at a particular time or at an acceptable price.

Forward Commitments and When-Issued Delayed Delivery Securities: The Master Portfolio may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Master Portfolio may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Master Portfolio may be required to pay more at settlement than the security is worth. In addition, the Master Portfolio is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Master Portfolio assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Master Portfolio’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedule of Investments.

TBA Commitments: The Master Portfolio may enter into TBA commitments. TBA commitments are forward agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms. The Master Portfolio generally enters into TBA commitments with the intent to take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

Mortgage Dollar Roll Transactions: The Master Portfolio may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, the Master Portfolio will not be entitled to receive interest and principal payments on the securities sold. The Master Portfolio accounts for mortgage dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions may increase the Master Portfolio’s portfolio turnover rate. Mortgage dollar rolls involve the risk that the market value of the securities that the Master Portfolio is required to purchase may decline below the agreed upon repurchase price of those securities.

Treasury Roll Transactions: The Master Portfolio may enter into treasury roll transactions. In a treasury roll transaction the Master Portfolio sells a Treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an agreed upon price and future settlement date. The Master Portfolio receives cash from the sale of the Treasury security to use for other investment purposes. The difference between the sale price and repurchase price represents net interest income or net interest expense reflective of an agreed upon rate between the Master Portfolio and the counterparty over the term of the borrowing. For US GAAP purposes, a treasury roll transaction is accounted for as a secured borrowing and not as a purchase or sale. During the term of the borrowing, interest income from the Treasury security and the related interest expense on the secured borrowing is recorded by the Master Portfolio on an accrual basis. The Master Portfolio will benefit from the transaction if the income earned on the investment purchased with the cash received in the treasury roll transaction exceeds the interest expense incurred by the Master Portfolio. If the interest expense exceeds the income earned, the Master Portfolio’s net investment income and dividends to shareholders may be adversely impacted. Treasury roll transactions involve the risk that the market value of the securities that the Master Portfolio is required to repurchase may decline below the agreed upon repurchase price of those securities.

Reverse Repurchase Agreements: The Master Portfolio may enter into reverse repurchase agreements with qualified third party broker-dealers. In a reverse repurchase agreement, the Master Portfolio sells securities to a bank or broker-dealer and agrees to repurchase the same securities at a mutually agreed upon date and price. Securities sold under reverse repurchase agreements are recorded at face value as a liability in the Statement of Assets and Liabilities. Due to the short term nature of the reverse repurchase agreements, face value approximates fair value. During the term of the reverse repurchase agreement, the Master Portfolio continues to receive the principal and interest payments on these securities. Certain agreements have no stated maturity and can be terminated by either party at any time. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates determined at the time of issuance. The Master Portfolio may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. Reverse repurchase agreements involve leverage risk and also the risk that the market value of the securities that the Master Portfolio is obligated to repurchase under the agreement may decline below the repurchase price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Master Portfolio’s use of the proceeds of the agreement may be restricted while the other party, or its trustee or receiver, determines whether or not to enforce the Master Portfolio’s obligation to repurchase the securities.

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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 Portfolio either deliver collateral or segregate assets in connection with certain investments (e.g., dollar rolls, TBA sale commitments, financial futures contracts, foreign currency exchange contracts, swaps, short sales and options written), or certain borrowings (e.g., reverse repurchase agreements and treasury roll transactions), the Master Portfolio will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party to such transactions has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis. Consent fees are compensation for agreeing to changes in the terms of debt instruments and are included in interest income in the Statement of Operations.

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

The Master Portfolio files US federal and various state and local tax returns. In May 2011, the Internal Revenue Service commenced an examination of Master Total Return’s US federal tax return for the year ended September 30, 2009. The examination was completed in February 2012 and did not result in any adjustments to the tax return. No income tax returns are currently under examination. The statute of limitations on the Master Portfolio’s US federal tax returns remains open for each of the four years ended September 30, 2011. The statutes of limitations on the Master Portfolio’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed as well as disclosure of the level in the fair value hierarchy of assets and liabilities not recorded at fair value but where fair value is disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Master Portfolio’s financial statement disclosures.

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

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

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

2. Derivative Financial Instruments:

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

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract.

The Master Portfolio’s maximum risk of loss from counterparty credit risk on OTC derivatives is generally the aggregate unrealized gain netted against any collateral pledged by/posted to the counterparty. For OTC options purchased, the Master Portfolio bears the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral received on the options should the counterparty fail to perform under the contracts. Options written by the Master Portfolio do not give rise to counterparty credit risk, as options written obligate the Master Portfolio to perform and not the counterparty. Counterparty risk related to exchange-traded financial futures contracts and options and centrally cleared swaps is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

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The Master Portfolio may mitigate counterparty risk by procuring collateral and through netting provisions included within an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) implemented between the Master Portfolio and each of its respective counterparties. An ISDA Master Agreement allows the Master Portfolio to offset with each separate counterparty certain derivative financial instrument’s payables and/or receivables with collateral held. The amount of collateral moved to/from applicable counterparties is generally based upon minimum transfer amounts of up to $500,000. To the extent amounts due to the Master Portfolio from its counterparties are not fully collateralized contractually or otherwise, the Master Portfolio bears the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. In addition, the Master Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

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

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

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

Options: The Master Portfolio purchases and writes call and put options to increase or decrease its exposure to underlying instruments (including credit risk, foreign currency exchange rate risk, equity risk and interest rate risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike 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 exercise or strike price at any time or at a specified time during the option period. When the Master Portfolio purchases (writes) an option, an amount equal to the premium paid (received) by the Master Portfolio is reflected as an asset (liability). The amount of the asset (liability) 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 Portfolio enters into a closing transaction), the Master Portfolio 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 premiums received or paid). When the Master Portfolio writes a call option, such option is “covered,” meaning that the Master Portfolio holds the underlying instrument subject to being called by the option counterparty. When the Master Portfolio writes a put option, such option is covered by cash in an amount sufficient to cover the obligation.

Options on swaps (swaptions) are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swap option is granting or buying the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.

The Master Portfolio also purchases or sells listed or OTC foreign currency options, foreign currency futures and related options on foreign currency futures as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies (foreign currency exchange rate risk). When foreign currency is purchased or sold through an exercise of a foreign currency option, the related premium paid (or received) is added to (or deducted from) the basis of the foreign currency acquired or deducted from (or added to) the proceeds of the foreign currency sold. Such transactions may be effected with respect to hedges on non-US dollar denominated instruments owned by the Master Portfolio but not yet delivered, or committed or anticipated to be purchased by the Master Portfolio.

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In purchasing and writing options, the Master Portfolio bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Master Portfolio 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 Portfolio purchasing or selling a security at a price different from the current market value.

Swaps: The Master Portfolio enters into swap agreements, in which the Master Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be executed on a registered financial and commodities exchange (“centrally cleared swaps”). In a centrally cleared swap, the Master Portfolio typically enters into an agreement with a counterparty; however, performance is guaranteed by the central clearinghouse reducing or eliminating the Master Portfolio’s exposure to the credit risk of the counterparty. These payments received or made by the Master Portfolio are recorded in the Statement of Operations as realized gains or losses, respectively. Any upfront fees paid are recorded as assets and any upfront fees received are recorded as liabilities and amortized over the term of the swap. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of centrally cleared swaps, if any, is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities. When the swap is terminated, the Master Portfolio will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Master Portfolio’s basis in the contract, if any. Generally, the basis of the contracts is the premium received or paid. Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

• Credit default swaps — The Master Portfolio enters into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which it is not otherwise exposed (credit risk). The Master Portfolio enters into credit default swap agreements to provide a measure of protection against the default of an issuer (as buyer of protection) and/or gain credit exposure to an issuer to which it is not otherwise exposed (as seller of protection). The Master Portfolio may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps on single-name issuers are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation accelerators, repudiation, moratorium or restructuring). Credit default swaps on traded indexes are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a write-down, principal or interest shortfall or default of all or individual underlying securities included in the index occurs. As a buyer, if an underlying credit event occurs, the Master Portfolio will either receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index or receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Master Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

• Total return swaps — The Master Portfolio enters into total return swaps to obtain exposure to a security or market without owning such security or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity) (equity risk and/or interest rate risk). Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (coupons plus capital gains/losses) of an underlying instrument in exchange for fixed or floating rate interest payments. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Master Portfolio will receive a payment from or make a payment to the counterparty.

• Interest rate swaps — The Master Portfolio enters into interest rate swaps to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk). Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Interest rate floors, which are a type of interest rate swap, are agreements in which one party agrees to make payments to the other party to the extent that interest rates fall below a specified rate or floor in return for a premium. In more complex swaps, the notional principal amount may decline (or amortize) over time.

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Derivative Financial Instruments Categorized by Risk Exposure:

Fair Values of Derivative Financial Instruments as of March 31, 2012
Asset Derivatives				Liability Derivatives
	Statement of Assets and Liabilities Location	Value		Statement of Assets and Liabilities Location	Value
Interest rate contracts	Net unrealized appreciation/depreciation1; Unrealized appreciation on swaps1; Investments at value — unaffiliated2	$	9,215,304	Net unrealized appreciation/depreciation1; Unrealized depreciation on swaps1; Options written at value	$	24,641,128
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts; Investments at value — unaffiliated2		5,238,822	Unrealized depreciation on foreign currency exchange contracts; Options written at value		7,372,469
Credit contracts	Unrealized appreciation on swaps1; Investments at value — unaffiliated2		10,398,764	Unrealized depreciation on swaps1		13,469,140
Equity contracts	Investments at value — unaffiliated2		649,877	Net unrealized appreciation/depreciation1		224,040
Other contracts	Unrealized appreciation on swaps1		—	Unrealized depreciation on swaps1		786,526
Total		$	25,502,767		$	46,493,303

1	Includes cumulative unrealized appreciation/depreciation on financial futures contracts and centrally cleared swaps as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.
2	Includes options purchased at value as reported in the Schedule of Investments.

The Effect of Derivative Financial Instruments in the Statement of Operations Six Months Ended March 31, 2012
	Net Realized Gain (Loss) From
	Financial Futures Contracts			Swaps			Options3			Foreign Currency Exchange Contracts
Interest rate contracts	$	(10,201,570	)	$	5,485,649		$	(2,477,842	)		—
Foreign currency exchange contracts		(390,306	)		—			(1,928,755	)	$	14,634,805
Credit contracts		—			(1,163,494	)		—			—
Equity contracts		(2,642,135	)		—			(890,142	)		—
Other contracts		—			968,579			—			—
Total	$	(13,234,011	)	$	5,290,734		$	(5,296,739	)	$	14,634,805
	Net Change in Unrealized Appreciation/Depreciation on
	Financial Futures Contracts			Swaps			Options3			Foreign Currency Exchange Contracts
Interest rate contracts	$	2,544,716		$	(8,616,945	)	$	9,924,725			—
Foreign currency exchange contracts		(54,221	)		(9,667,648	)		(4,119,767	)	$	(12,112,172	)
Credit contracts		—			—			39,565			—
Equity contracts		(882,063	)		—			(796,869	)		—
Other contracts		—			(1,860,290	)		—			—
Total	$	1,608,432		$	(20,144,883	)	$	5,047,654		$	(12,112,172	)

³ Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 61

Notes to Financial Statements (continued) Master Total Return Portfolio

For the six months ended March 31, 2012, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average number of contracts purchased		3,616
Average number of contracts sold		7,535
Average notional value of contracts purchased	$	884,658,129
Average notional value of contracts sold	$	1,235,030,958
Foreign currency exchange contracts:
Average number of contracts — US dollars purchased		26
Average number of contracts — US dollars sold		12
Average US dollar amounts purchased	$	361,183,366
Average US dollar amounts sold	$	137,792,656
Options:
Average number of option contracts purchased		455,918
Average number of option contracts written		352,153
Average notional value of option contracts purchased	$	557,654,019
Average notional value of option contracts written	$	368,955,946
Average number of swaption contracts purchased		10
Average number of swaption contracts written		16
Average notional value of swaption contracts purchased	$	459,628,120
Average notional value of swaption contracts written	$	775,098,125
Credit default swaps:
Average number of contracts — buy protection		66
Average number of contracts — sell protection		46
Average notional value — buy protection	$	683,586,499
Average notional value — sell protection	$	405,510,000
Interest rate swaps:
Average number of contracts — pays fixed rate		18
Average number of contracts — receives fixed rate		21
Average notional value — pays fixed rate	$	666,350,000
Average notional value — receives fixed rate	$	552,100,000
Total return swaps:
Average number of contracts		7
Average notional value	$	93,535,400

3. Investment Advisory Agreement and Other Transactions with Affiliates:

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

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

Average Daily Net Assets	Investment Advisory Fee
First $250 million		0.20	%
$250 million – $500 million		0.15	%
$500 million – $750 million		0.10	%
Greater than $750 million		0.05	%

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Master Portfolio pays to the Manager indirectly through its investment in affiliated money market funds, However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Master Portfolio’s investment in other affiliated investment companies, if any. This amount is shown as fees waived by advisor in the Statement of Operations.

The Manager entered into sub-advisory agreements with BlackRock Financial Management, Inc. (“BFM”) and BlackRock International Limited (“BIL”), each an affiliate of the Manager. The Manager pays each of BFM and BIL, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by the Master Portfolio to the Manager.

For the six months ended March 31, 2012, the Master LLC reimbursed the Manager $26,417 for certain accounting services, which is included in accounting services in the Statement of Operations.

Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock or its affiliates. The Master Portfolio reimburses the Manager for compensation paid to the Master LLC’s Chief Compliance Officer.

4. Investments:

Purchases and sales of investments including paydowns, mortgage dollar roll and TBA transactions and excluding short-term securities and US government securities for the six months ended March 31, 2012, were $18,603,431,894 and $19,408,718,658, respectively.

Purchases and sales of US government securities for the six months ended March 31, 2012, were $9,794,963,195 and $9,435,146,447, respectively.

For the six months ended March 31, 2012, purchases and sales of mortgage dollar rolls were $5,537,950,154 and $5,949,902,879, respectively.

62 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

Notes to Financial Statements (concluded) Master Total Return Portfolio

Transactions in options written for the six months ended March 31, 2012, were as follows:

	Calls									Puts
	Option Contracts			Swaptions Notional Amount (000)			Premiums Received			Option Contracts			Swaptions Notional Amount (000)			Premiums Received
Outstanding options, beginning of period		1,328		$	1,401,122		$	9,048,993			—		$	663,265		$	10,586,781
Options written		3,424			1,389,440			23,339,694			7,234			1,347,405			29,919,605
Options exercised		(140	)		(79,600	)		(530,068	)		—			—			—
Options expired		(1,884	)		(1,280,502	)		(4,907,369	)		(541	)		(1,045,501	)		(20,421,643	)
Options closed		(2,728	)		(1,054,800	)		(20,663,730	)		(6,693	)		(343,359	)		(11,601,164	)
Outstanding options, end of period		—		$	375,660		$	6,287,520			—		$	621,810		$	8,483,579

5. Borrowings:

The Master LLC, on behalf of the Master Portfolio, 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. The Master Portfolio may borrow under the credit agreement to fund shareholder redemptions. Effective November 2010 to November 2011, the credit agreement had the following terms: a commitment fee of 0.08% per annum based on the Master Portfolio’s pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. In addition, the Master Portfolio paid administration and arrangement fees which were allocated to the Master Portfolio based on its net assets as of October 31, 2010. The credit agreement, which expired in November 2011, was renewed until November 2012. Effective November 2011 to November 2012, the credit agreement has the following terms: a commitment fee of 0.065% per annum based on the Master Portfolio’s pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Master Portfolio paid administration and arrangement fees which were allocated to the Master Portfolio based on its net assets as of October 31, 2011. The Master Portfolio did not borrow under the credit agreement during the six months ended March 31, 2012.

For the six months ended March 31, 2012, the average amount of outstanding transactions considered as borrowings and the daily weighted average interest rate from reverse repurchase agreements and treasury roll transactions were $784,252,182 and 0.49%, respectively.

6. Concentration, Market and Credit Risk:

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

The Master Portfolio invests a significant portion of its assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. Please see the Schedule of Investments for these securities. Changes in economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions.

7. Subsequent Events:

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

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 63

Officers and Directors of the Fund and Master Bond LLC

Robert M. Hernandez, Chairman of the Board and Director

Fred G. Weiss, Vice Chairman of the Board and Director

Paul L. Audet, Director

James H. Bodurtha, Director

Bruce R. Bond, Director

Donald W. Burton, Director

Honorable Stuart E. Eizenstat, Director

Laurence D. Fink, Director

Kenneth A. Froot, Director

Henry Gabbay, Director

John F. O’Brien, Director

Roberta Cooper Ramo, Director

David H. Walsh, Director

John M. Perlowski, President and Chief Executive Officer

Brendan Kyne, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Brian Kindelan, Chief Compliance Officer and

Anti-Money Laundering Officer

Ira P. Shapiro, Secretary

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisor

BlackRock Investment Management, LLC

Princeton, NJ 08540

Custodian

Bank of New York Mellon

New York, NY 10286

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Accounting Agent

State Street Bank and Trust Company

Boston, MA 02110

Distributor

BlackRock Investments, LLC

New York, NY 10022

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Fund

100 Bellevue Parkway

Wilmington, DE 19809

64 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

Additional Information

General Information

Electronic Delivery

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

To enroll:

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

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

Shareholders Who Hold Accounts Directly with BlackRock:

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

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

3) Log into your account

Householding

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

Availability of Quarterly Schedule of Investments

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

Availability of Proxy Voting Policies and Procedures

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

Availability of Proxy Voting Record

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

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 65

Additional Information (concluded)

Shareholder Privileges

Account Information

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

Automatic Investment Plans

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

Systematic Withdrawal Plans

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

Retirement Plans

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

BlackRock Privacy Principles

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

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

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

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

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

66 BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012

A World-Class Mutual Fund Family

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

Equity Funds

BlackRock ACWI ex-US Index Fund

BlackRock All-Cap Energy & Resources Portfolio

BlackRock Balanced Capital Fund†

BlackRock Basic Value Fund

BlackRock Capital Appreciation Fund

BlackRock China Fund

BlackRock Commodity Strategies Fund

BlackRock Emerging Markets Fund

BlackRock Emerging Markets Long/Short Equity Fund

BlackRock Energy & Resources Portfolio

BlackRock Equity Dividend Fund

BlackRock EuroFund

BlackRock Focus Growth Fund

BlackRock Global Allocation Fund†

BlackRock Global Dividend Income Portfolio

BlackRock Global Dynamic Equity Fund

BlackRock Global Opportunities Portfolio

BlackRock Global SmallCap Fund

BlackRock Health Sciences Opportunities Portfolio

BlackRock Index Equity Portfolio

BlackRock India Fund

BlackRock International Fund

BlackRock International Index Fund

BlackRock International Opportunities Portfolio

BlackRock Large Cap Core Fund

BlackRock Large Cap Core Plus Fund

BlackRock Large Cap Growth Fund

BlackRock Large Cap Value Fund

BlackRock Latin America Fund

BlackRock Managed Volatility Portfolio†

BlackRock Mid-Cap Growth Equity Portfolio

BlackRock Mid-Cap Value Equity Portfolio

BlackRock Mid Cap Value Opportunities Fund

BlackRock Natural Resources Trust

BlackRock Pacific Fund

BlackRock Russell 1000 Index Fund

BlackRock Science & Technology Opportunities Portfolio

BlackRock Small Cap Growth Equity Portfolio

BlackRock Small Cap Growth Fund II

BlackRock Small Cap Index Fund

BlackRock S&P 500 Index Fund

BlackRock S&P 500 Stock Fund

BlackRock U.S. Opportunities Portfolio

BlackRock Value Opportunities Fund

BlackRock World Gold Fund

Fixed Income Funds

BlackRock Bond Index Fund

BlackRock Core Bond Portfolio

BlackRock CoreAlpha Bond Fund

BlackRock Emerging Market Debt Portfolio

BlackRock Floating Rate Income Portfolio

BlackRock Global Long/Short Credit Fund

BlackRock GNMA Portfolio

BlackRock High Yield Bond Portfolio

BlackRock Inflation Protected Bond Portfolio

BlackRock International Bond Portfolio

BlackRock Long Duration Bond Portfolio

BlackRock Low Duration Bond Portfolio

BlackRock Multi-Asset Income Portfolio†

BlackRock Multi-Sector Bond Portfolio

BlackRock Strategic Income Opportunities Portfolio

BlackRock Total Return Fund

BlackRock US Government Bond Portfolio

BlackRock US Mortgage Portfolio

BlackRock World Income Fund

Municipal Bond Funds

BlackRock California Municipal Bond Fund

BlackRock High Yield Municipal Fund

BlackRock Intermediate Municipal Fund

BlackRock National Municipal Fund

BlackRock New Jersey Municipal Bond Fund

BlackRock New York Municipal Bond Fund

BlackRock Pennsylvania Municipal Bond Fund

BlackRock Short-Term Municipal Fund

Target Risk & Target Date Funds†

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

BlackRock Lifecycle Prepared Portfolios

2015

2020

2025

2030

2035

2040

2045

2050

LifePath Portfolios
Retirement

2020

2025

2030

2035

2040

2045

2050

2055

LifePath Index Portfolios
Retirement

2020

2025

2030

2035

2040

2045

2050

2055

† Mixed asset fund.

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

BLACKROCK BALANCED CAPITAL FUND, INC. MARCH 31, 2012 67

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

#10252-3/12-SAR

Item 2 –	Code of Ethics – Not Applicable to this semi-annual report
Item 3 –	Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 –	Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 –	Audit Committee of Listed Registrants – Not Applicable
Item 6 –	Investments
	(a) The registrants’ Schedules of Investments are 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 –There have been no material changes to these procedures.
Item 11 –	Controls and Procedures
(a) –	The registrants’ principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants’ disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
(b) –	There were no changes in the registrants’ internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants’ internal control over financial reporting.
Item 12 –	Exhibits attached hereto
(a)(1) –	Code of Ethics – Not Applicable to this semi-annual report
(a)(2) –	Certifications – Attached hereto
(a)(3) –	Not Applicable
(b) –	Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, each registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Balanced Capital Fund, Inc., Master Large Cap Core Portfolio of Master Large Cap Series LLC and Master Total Return Portfolio of Master Bond LLC
By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Balanced Capital Fund, Inc., Master Large Cap Core Portfolio of Master Large Cap Series LLC and Master Total Return Portfolio of Master Bond LLC
Date: June 4, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of each registrant and in the capacities and on the dates indicated.
By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Balanced Capital Fund, Inc., Master Large Cap Core Portfolio of Master Large Cap Series LLC and Master Total Return Portfolio of Master Bond LLC
Date: June 4, 2012
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Balanced Capital Fund, Inc., Master Large Cap Core Portfolio of Master Large Cap Series LLC and Master Total Return Portfolio of Master Bond LLC
Date: June 4, 2012