| |
|
| |
Notes to Financial Statements (Liquidation Basis) (Unaudited) | BlackRock Global Financial Services Fund, Inc. |
1. Organization and Significant Accounting Policies:
BlackRock Global Financial Services 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 all of its assets in Global Financial Services Portfolio (the “Portfolio”) of Global Financial Services Master LLC, which has the same investment objective and strategies as the Fund. The value of the Fund’s investment in the Portfolio reflects the Fund’s proportionate interest in the net assets of the Portfolio. The percentage of the Portfolio owned by the Fund at March 31, 2011 was 100%. The performance of the Fund is directly affected by the performance of the Portfolio. The financial statements of the Portfolio, 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 contingent deferred sales charge. 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).
On February 15, 2011, the Fund’s Board of Directors (the “Board”) approved a proposal to close the Fund to new investors and liquidate the Fund. Effective February 23, 2011, the Fund no longer accepted orders from new investors or existing shareholders to purchase Fund shares. On or about April 27, 2011, all of the assets of the Fund were liquidated completely, each investor’s shares were redeemed at net asset value on the date of liquidation, and the Fund was then terminated. In connection with the liquidation, the Fund adopted the liquidation basis of accounting, which among other things, requires the Fund to record assets and liabilities at their net realizable value and to provide estimated costs of liquidating the Fund to the extent that they are reasonably determinable.
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 Portfolio at fair value based on the Fund’s proportionate interest in the net assets of the Portfolio. Valuation of securities held by the Portfolio, including categorization of fair value measurements, is discussed in Note 1 of the Portfolio’s Notes to Financial Statements, which are included elsewhere in this report.
Investment Transactions and Investment Income: For financial reporting purposes, contributions to and withdrawals from the Portfolio are accounted for on a trade date basis. The Fund records daily its proportionate share of the Portfolio’s income, expenses and realized and unrealized gains and losses. In addition, the Fund accrues its own expenses. Income 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, 2010. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
Other: Expenses directly related to the Fund or its classes are charged to the Fund or class. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. Other expenses of the Fund are allocated daily to each class based on its relative net assets. 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.
| | | |
|
| BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | 15 |
| |
|
|
| |
Notes to Financial Statements (Liquidation Basis) (continued) | BlackRock Global Financial Services Fund, Inc. |
2. Administration Agreement and Other Transactions with Affiliates:
The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate of the Fund for 1940 Act purposes, but BAC and Barclays are not.
The Fund entered into an Administration Agreement with BlackRock Advisors, LLC (the “Administrator”), an indirect, wholly owned subsidiary of BlackRock, to provide administrative services (other than investment advice and related portfolio activities). For such services, the Fund pays the Administrator a monthly fee at an annual rate of 0.35% of the average daily value of the Fund’s net assets. The Fund does not pay an investment advisory fee or investment management fee.
The Fund entered into a Distribution Agreement and Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of BlackRock. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service 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% | | | 0.75%* | |
|
|
|
|
|
|
|
|
| | |
| * | Effective March 1, 2011, BRIL began waiving all distribution fees in connection with the liquidation. |
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, 2011, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares, which totaled $1,209.
For the six months ended March 31, 2011, affiliates received the following contingent deferred sales charges relating to transactions in Investor B and Investor C Shares:
| | | | |
|
|
|
|
|
Investor B | | $ | 4,242 | |
Investor C | | $ | 781 | |
|
|
|
|
|
The Administrator maintains a call center, which is responsible for providing certain shareholder services to the Fund, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the six months ended March 31, 2011, the Fund reimbursed the Administrator the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:
| | | | |
|
|
|
|
|
Institutional | | $ | 48 | |
Investor A | | $ | 535 | |
Investor B | | $ | 97 | |
Investor C | | $ | 427 | |
Class R | | $ | 37 | |
|
|
|
|
|
Certain officers and/or directors of the Fund are officers and/or directors of BlackRock or its affiliates. The Fund reimburses the Administrator for compensation paid to the Fund’s Chief Compliance Officer.
3. Capital Loss Carryforwards:
As of September 30, 2010, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:
| | | | |
|
|
|
|
|
Expires September 30, | | | | |
|
|
|
|
|
2016 | | $ | 114,096 | |
2017 | | | 25,212,092 | |
2018 | | | 36,274,271 | |
| |
|
|
|
Total | | $ | 61,600,459 | |
| |
|
|
|
Due to the liquidation of the Fund, the capital loss carryforwards were available to offset realized capital gains through the liquidation date.
| | |
|
|
|
16 | BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 |
| |
|
|
| |
Notes to Financial Statements (Liquidation Basis) (concluded) | BlackRock Global Financial Services Fund, Inc. |
4. Capital Share Transactions:
Transactions in capital shares for each class were as follows:
| | | | | | | | | | | | | |
| | Six Months Ended
March 31, 2011 | | Year Ended
September 30, 2010 |
| |
| |
|
| | Shares | | Amount | | Shares | | Amount | |
|
|
|
|
|
|
|
|
|
|
Institutional | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold | | | 165,941 | | $ | 1,294,775 | | | 413,831 | | $ | 3,044,638 | |
Shares issued to shareholders in reinvestment of dividends | | | 10,092 | | | 77,102 | | | 7,523 | | | 55,904 | |
| |
|
|
|
|
| |
|
|
|
|
|
|
Total issued | | | 176,033 | | | 1,371,877 | | | 421,354 | | | 3,100,542 | |
Shares redeemed | | | (390,802 | ) | | (3,035,939 | ) | | (581,739 | ) | | (4,205,510 | ) |
| |
|
|
|
|
| |
|
|
|
|
|
|
Net decrease | | | (214,769 | ) | $ | (1,664,062 | ) | | (160,385 | ) | $ | (1,104,968 | ) |
| |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor A | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold and automatic conversion of shares | | | 560,705 | | $ | 4,324,605 | | | 1,558,632 | | $ | 11,438,273 | |
Shares issued to shareholders in reinvestment of dividends | | | 32,569 | | | 246,545 | | | 24,257 | | | 178,295 | |
| |
|
|
|
|
| |
|
|
|
|
|
|
Total issued | | | 593,274 | | | 4,571,150 | | | 1,582,889 | | | 11,616,568 | |
Shares redeemed | | | (1,598,813 | ) | | (12,308,378 | ) | | (2,486,817 | ) | | (17,974,442 | ) |
| |
|
|
|
|
| |
|
|
|
|
|
|
Net decrease | | | (1,005,539 | ) | $ | (7,737,228 | ) | | (903,928 | ) | $ | (6,357,874 | ) |
| |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor B | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold | | | 22,783 | | $ | 171,870 | | | 43,564 | | $ | 326,694 | |
Shares redeemed and automatic conversion of shares | | | (95,837 | ) | | (748,467 | ) | | (178,543 | ) | | (1,311,359 | ) |
| |
|
|
|
|
| |
|
|
|
|
|
|
Net decrease | | | (73,054 | ) | $ | (576,597 | ) | | (134,979 | ) | $ | (984,665 | ) |
| |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor C | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold | | | 257,298 | | $ | 1,935,936 | | | 514,655 | | $ | 3,642,141 | |
Shares redeemed | | | (1,548,684 | ) | | (11,655,751 | ) | | (1,341,887 | ) | | (9,421,992 | ) |
| |
|
|
|
|
| |
|
|
|
|
|
|
Net decrease | | | (1,291,386 | ) | $ | (9,719,815 | ) | | (827,232 | ) | $ | (5,779,851 | ) |
| |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold | | | 384,788 | | $ | 2,885,379 | | | 671,687 | | $ | 4,772,169 | |
Shares issued to shareholders in reinvestment of dividends | | | 5,691 | | | 42,001 | | | 5,078 | | | 36,414 | |
| |
|
|
|
|
| |
|
|
|
|
|
|
Total issued | | | 390,479 | | | 2,927,380 | | | 676,765 | | | 4,808,583 | |
Shares redeemed | | | (423,379 | ) | | (3,194,071 | ) | | (779,614 | ) | | (5,504,875 | ) |
| |
|
|
|
|
| |
|
|
|
|
|
|
Net decrease | | | (32,900 | ) | $ | (266,691 | ) | | (102,849 | ) | $ | (696,292 | ) |
| |
|
|
|
|
| |
|
|
|
|
|
|
There is a 2% redemption fee on shares redeemed or exchanged that have been held for 30 days or less. The redemption fees are collected and retained by the Fund for the benefit of the remaining shareholders. The redemption fees are recorded as a credit to paid-in capital.
5. Subsequent Events:
Management’s evaluation of the impact of all subsequent events on the Fund’s financial statements as completed through the date the financial statements were issued and the following item was noted:
As described in Note 1, on April 27, 2011, the net assets of the Fund were liquidated and each investor’s shares were redeemed at net asset value.
| | | |
|
|
|
|
| BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | 17 |
| |
|
|
| |
Portfolio Information | Global Financial Services Portfolio |
| | | | |
|
|
|
|
|
As of March 31, 2011 | | | | |
|
|
|
|
|
| | | | |
Ten Largest Holdings | | Percent of
Long-Term Investments | |
|
|
|
|
|
Wells Fargo & Co. | | 5 | % | |
HSBC Holdings Plc | | 5 | | |
The Bank of Nova Scotia | | 4 | | |
DnB NOR ASA | | 4 | | |
Bank of America Corp. | | 4 | | |
JPMorgan Chase & Co. | | 4 | | |
Citigroup, Inc. | | 4 | | |
Simon Property Group, Inc. | | 3 | | |
BNP Paribas SA | | 2 | | |
Allianz AG, Registered Shares | | 2 | | |
|
|
|
|
|
| | | |
Geographic Allocation | | Percent of
Long-Term Investments | |
|
|
|
|
|
United States | | 35 | % | |
United Kingdom | | 12 | | |
Canada | | 9 | | |
Japan | | 7 | | |
Germany | | 6 | | |
France | | 6 | | |
Italy | | 5 | | |
Switzerland | | 5 | | |
Norway | | 4 | | |
Australia | | 3 | | |
Spain | | 2 | | |
Other1 | | 6 | | |
|
|
|
|
|
| | |
| 1 | Other includes a less than 1% holding in each of the following countries: Argentina, Bermuda, Greece, Hong Kong, Indonesia, South Korea and Thailand. |
| | |
|
|
|
18 | BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 |
| |
|
|
| |
Schedule of Investments (Liquidation Basis) March 31, 2011 (Unaudited) | Global Financial Services Portfolio |
| (Percentages shown are based on Net Assets) |
| | | | | | | |
Common Stocks | | Shares | | Value | |
|
|
|
|
|
|
|
|
Argentina — 0.4% | | | | | | | |
Banco Macro Bansud SA — ADR | | | 7,100 | | $ | 284,213 | |
|
|
|
|
|
|
|
|
Australia — 3.4% | | | | | | | |
Australia & New Zealand Banking Group Ltd. | | | 40,100 | | | 987,068 | |
Commonwealth Bank of Australia Ltd. | | | 21,400 | | | 1,159,498 | |
| | | | |
|
|
|
| | | | | | 2,146,566 | |
|
|
|
|
|
|
|
|
Bermuda — 0.6% | | | | | | | |
Lazard Ltd., Class A | | | 8,700 | | | 361,746 | |
|
|
|
|
|
|
|
|
Canada — 8.5% | | | | | | | |
The Bank of Nova Scotia | | | 43,800 | | | 2,687,635 | |
ING Canada, Inc. | | | 8,800 | | | 456,111 | |
Royal Bank of Canada | | | 18,400 | | | 1,138,542 | |
The Toronto-Dominion Bank | | | 12,600 | | | 1,115,090 | |
| | | | |
|
|
|
| | | | | | 5,397,378 | |
|
|
|
|
|
|
|
|
France — 5.7% | | | | | | | |
BNP Paribas SA | | | 19,600 | | | 1,432,851 | |
Société Générale SA | | | 17,400 | | | 1,130,203 | |
Unibail-Rodamco SE | | | 5,000 | | | 1,083,669 | |
| | | | |
|
|
|
| | | | | | 3,646,723 | |
|
|
|
|
|
|
|
|
Germany — 5.9% | | | | | | | |
Allianz AG, Registered Shares | | | 10,100 | | | 1,414,258 | |
Commerzbank AG (a) | | | 37,800 | | | 293,504 | |
Deutsche Euroshop AG | | | 18,093 | | | 689,833 | |
Muenchener Rueckversicherungs AG,
Registered Shares | | | 8,500 | | | 1,337,128 | |
| | | | |
|
|
|
| | | | | | 3,734,723 | |
|
|
|
|
|
|
|
|
Greece — 0.7% | | | | | | | |
Hellenic Exchanges SA | | | 49,700 | | | 435,897 | |
|
|
|
|
|
|
|
|
Hong Kong — 0.6% | | | | | | | |
AIA Group Ltd. (a) | | | 131,500 | | | 404,793 | |
|
|
|
|
|
|
|
|
Indonesia — 0.9% | | | | | | | |
Bank Rakyat Indonesia Tbk PT | | | 848,300 | | | 559,429 | |
|
|
|
|
|
|
|
|
Italy — 5.3% | | | | | | | |
Assicurazioni Generali SpA | | | 46,000 | | | 994,275 | |
Credito Emiliano SpA | | | 104,400 | | | 683,883 | |
Fondiaria-Sai SpA | | | 68,300 | | | 564,571 | |
Intesa Sanpaolo SpA | | | 234,600 | | | 692,090 | |
Unicredit SpA | | | 168,500 | | | 415,326 | |
| | | | |
|
|
|
| | | | | | 3,350,145 | |
|
|
|
|
|
|
|
|
Japan — 7.0% | | | | | | | |
Kenedix Realty Investment Corp. | | | 197 | | | 811,355 | |
Mitsubishi Estate Co., Ltd. | | | 63,350 | | | 1,070,555 | |
Mitsubishi UFJ Financial Group, Inc. | | | 170,000 | | | 783,302 | |
Nippon Building Fund, Inc. | | | 86 | | | 838,332 | |
Promise Co., Ltd. (a) | | | 48,300 | | | 338,681 | |
Sumitomo Mitsui Financial Group, Inc. | | | 19,200 | | | 595,685 | |
| | | | |
|
|
|
| | | | | | 4,437,910 | |
|
|
|
|
|
|
|
|
| | | | | | | |
Common Stocks | | Shares | | Value | |
|
|
|
|
|
|
|
|
Norway — 3.9% | | | | | | | |
DnB NOR ASA | | | 162,466 | | $ | 2,491,055 | |
|
|
|
|
|
|
|
|
South Korea — 1.1% | | | | | | | |
Daegu Bank | | | 44,500 | | | 730,079 | |
|
|
|
|
|
|
|
|
Spain — 2.1% | | | | | | | |
Banco Santander SA | | | 112,700 | | | 1,314,534 | |
|
|
|
|
|
|
|
|
Switzerland — 5.2% | | | | | | | |
Banque Cantonale Vaudoise | | | 200 | | | 113,330 | |
Credit Suisse Group AG | | | 18,800 | | | 797,500 | |
Swiss Reinsurance Co., Registered Shares | | | 8,900 | | | 507,186 | |
UBS AG (a) | | | 54,500 | | | 980,459 | |
Zurich Financial Services AG | | | 3,400 | | | 950,426 | |
| | | | |
|
|
|
| | | | | | 3,348,901 | |
|
|
|
|
|
|
|
|
Thailand — 1.0% | | | | | | | |
Siam Commercial Bank PCL | | | 175,900 | | | 616,479 | |
|
|
|
|
|
|
|
|
United Kingdom — 12.1% | | | | | | | |
Amlin Plc | | | 161,900 | | | 991,478 | |
Barclays Plc | | | 230,900 | | | 1,036,730 | |
HSBC Holdings Plc | | | 293,574 | | | 3,032,354 | |
Hargreaves Lansdown Plc | | | 42,900 | | | 418,967 | |
Lloyds TSB Group Plc (a) | | | 698,578 | | | 649,120 | |
Royal & Sun Alliance Insurance Group | | | 306,100 | | | 644,935 | |
Standard Chartered Plc | | | 35,168 | | | 912,218 | |
| | | | |
|
|
|
| | | | | | 7,685,802 | |
|
|
|
|
|
|
|
|
United States — 34.1% | | | | | | | |
Affiliated Managers Group, Inc. (a) | | | 11,900 | | | 1,301,503 | |
Arch Capital Group Ltd. (a) | | | 5,400 | | | 535,626 | |
Bank of America Corp. | | | 176,268 | | | 2,349,652 | |
The Bank of New York Mellon Corp. | | | 21,300 | | | 636,231 | |
Berkshire Hathaway, Inc. (a) | | | 11,800 | | | 986,834 | |
CB Richard Ellis Group, Inc. (a) | | | 13,800 | | | 368,460 | |
Capital One Financial Corp. | | | 6,900 | | | 358,524 | |
Citigroup, Inc. (a) | | | 525,000 | | | 2,320,500 | |
Cullen/Frost Bankers, Inc. | | | 9,200 | | | 542,984 | |
Franklin Resources, Inc. | | | 6,500 | | | 813,020 | |
The Goldman Sachs Group, Inc. | | | 6,800 | | | 1,077,596 | |
JPMorgan Chase & Co. | | | 50,675 | | | 2,336,117 | |
Jones Lang LaSalle, Inc. | | | 3,500 | | | 349,090 | |
PartnerRe Ltd. | | | 4,000 | | | 316,960 | |
Public Storage | | | 9,000 | | | 998,190 | |
Simon Property Group, Inc. | | | 17,166 | | | 1,839,509 | |
SunTrust Banks, Inc. | | | 5,000 | | | 144,200 | |
T. Rowe Price Group, Inc. | | | 8,900 | | | 591,138 | |
Wells Fargo & Co. | | | 102,200 | | | 3,239,740 | |
XL Group Plc | | | 19,100 | | | 469,860 | |
Zions Bancorporation | | | 7,500 | | | 172,950 | |
| | | | |
|
|
|
| | | | | | 21,748,684 | |
|
|
|
|
|
|
|
|
Total Common Stocks — 98.5% | | | | | | 62,695,057 | |
|
|
|
|
|
|
|
|
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:
| |
ADR | American Depositary Receipts |
CAD | Canadian Dollar |
CHF | Swiss Franc |
EUR | Euro |
GBP | British Pound |
IDR | Indonesian Rupiah |
NOK | Norwegian Krone |
USD | US Dollar |
| | | |
See Notes to Financial Statements. | | |
|
|
|
|
| BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | 19 |
| |
|
|
| |
Schedule of Investments (Liquidation Basis) (continued) | Global Financial Services Portfolio |
| (Percentages shown are based on Net Assets) |
| | | | | | | |
Warrants (b) | | | Shares | | Value | |
|
|
|
|
|
|
|
United States — 0.6% | | | | | | | |
Bank of America Corp. (Expires 1/16/19) | | | 49,207 | | $ | 377,418 | |
Citigroup Inc. (Expires 10/28/18) | | | 26,487 | | | 5,032 | |
|
|
|
|
|
|
|
|
Total Warrants — 0.6% | | | | | | 382,450 | |
|
|
|
|
|
|
|
|
Total Long-Term Investments
(Cost — $52,336,678) — 99.1% | | | | | | 63,077,507 | |
|
|
|
|
|
|
|
|
| | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
Short-Term Securities | | Par
(000) | | | | |
|
|
|
|
|
|
|
|
Time Deposits — 0.0% | | | | | | | |
Brown Brothers Harriman & Co., 0.26%, 4/01/11 | | | CAD 3 | | | 3,214 | |
|
|
|
|
|
|
|
|
Total Short-Term Securities
(Cost — $3,214) — 0.0% | | | | | | 3,214 | |
|
|
|
|
|
|
|
|
Total Investments (Cost — $52,339,892*) — 99.1% | | | | | | 63,080,721 | |
Other Assets Less Liabilities — 0.9% | | | | | | 586,465 | |
| | | | |
|
|
|
Net Assets — 100.0% | | | | | $ | 63,667,186 | |
| | | | |
|
|
|
|
|
|
|
|
|
|
|
| |
* | The cost and unrealized appreciation (depreciation) of investments as of March 31, 2011, as computed for federal income tax purposes, were as follows: |
| | | | | | | |
Aggregate cost | | | | | $ | 55,953,933 | |
| | | | |
|
|
|
Gross unrealized appreciation | | | | | $ | 12,127,978 | |
Gross unrealized depreciation | | | | | | (5,001,190 | ) |
| | | | |
|
|
|
Net unrealized appreciation | | | | | $ | 7,126,788 | |
| | | | |
|
|
|
| |
(a) | Non-income producing security. |
| |
(b) | Warrants entitle the Portfolio to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any. |
| |
• | 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
Held at
September 30,
2010 | | Net
Activity | | Shares
Held at
March 31,
2011 | | Income | |
|
|
|
|
|
|
|
|
|
|
BlackRock Liquidity
Funds, TempFund,
Institutional Class | | | 350,905 | | | (350,905 | ) | | — | | $ | 559 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
• | Foreign currency exchange contracts as of March 31, 2011 were as follows: |
| | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
Currency
Purchased | | Currency
Sold | | Counterparty | | Settlement
Date | | Unrealized
Appreciation
(Depreciation) | |
|
|
|
|
|
|
|
|
|
|
USD | | 16,171 | | IDR | | 140,652,115 | | Brown Brothers Harriman & Co. | | 4/01/11 | | $ | 18 | |
USD | | 3,204 | | CAD | | 3,114 | | Brown Brothers Harriman & Co. | | 4/04/11 | | | (8 | ) |
USD | | 225,491 | | CAD | | 219,017 | | State Street Global Markets, LLC | | 4/05/11 | | | (397 | ) |
USD | | 124,823 | | CHF | | 114,446 | | State Street Global Markets, LLC | | 4/05/11 | | | 221 | |
USD | | 501,411 | | EUR | | 353,253 | | State Street Global Markets, LLC | | 4/05/11 | | | 790 | |
USD | | 279,520 | | GBP | | 173,891 | | State Street Global Markets, LLC | | 4/05/11 | | | 567 | |
USD | | 102,614 | | NOK | | 556,942 | | State Street Global Markets, LLC | | 4/05/11 | | | 102 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | | | | | | | | | | | | $ | 1,293 | |
| | | | | | | | | | | |
|
|
|
| | |
• | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad levels for financial statement purposes as follows: |
| | |
| • | Level 1 ��� 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 and derivative financial instruments) |
| | |
| The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the 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. |
| | |
See Notes to Financial Statements. | |
|
|
|
20 | BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 |
| |
|
|
| |
Schedule of Investments (Liquidation Basis) (concluded) | Global Financial Services Portfolio |
The following tables summarize the inputs used as of March 31, 2011 in determining the fair valuation of the Portfolio’s investments and derivative financial instruments:
| | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
|
|
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | |
Long-Term Investments: | | | | | | | | | | | | | |
Common Stocks: | | | | | | | | | | | | | |
Argentina | | $ | 284,213 | | | — | | | — | | $ | 284,213 | |
Australia | | | — | | $ | 2,146,566 | | | — | | | 2,146,566 | |
Bermuda | | | 361,746 | | | — | | | — | | | 361,746 | |
Canada | | | 5,397,378 | | | — | | | — | | | 5,397,378 | |
France | | | — | | | 3,646,723 | | | — | | | 3,646,723 | |
Germany | | | 1,337,128 | | | 2,397,595 | | | — | | | 3,734,723 | |
Greece | | | — | | | 435,897 | | | — | | | 435,897 | |
Hong Kong | | | — | | | 404,793 | | | — | | | 404,793 | |
Indonesia | | | — | | | 559,429 | | | — | | | 559,429 | |
Italy | | | — | | | 3,350,145 | | | — | | | 3,350,145 | |
Japan | | | — | | | 4,437,910 | | | — | | | 4,437,910 | |
Norway | | | — | | | 2,491,055 | | | — | | | 2,491,055 | |
South Korea | | | — | | | 730,079 | | | — | | | 730,079 | |
Spain | | | — | | | 1,314,534 | | | — | | | 1,314,534 | |
Switzerland | | | — | | | 3,348,901 | | | — | | | 3,348,901 | |
Thailand | | | 616,479 | | | — | | | — | | | 616,479 | |
United Kingdom | | | — | | | 7,685,802 | | | — | | | 7,685,802 | |
United States | | | 21,748,684 | | | — | | | — | | | 21,748,684 | |
Warrants: | | | | | | | | | | | | | |
United States | | | 382,450 | | | — | | | — | | | 382,450 | |
Short-Term Securities | | | — | | | 3,214 | | | — | | | 3,214 | |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Total | | $ | 30,128,078 | | $ | 32,952,643 | | | — | | $ | 63,080,721 | |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
|
|
|
|
|
|
|
|
|
|
Derivative Financial Instruments1 | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | |
Foreign currency exchange contracts | | | — | | $ | 1,698 | | | — | | $ | 1,698 | |
Liabilities: | | | | | | | | | | | | | |
Foreign currency exchange contracts | | | — | | | (405 | ) | | — | | | (405 | ) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Total | | | — | | $ | 1,293 | | | — | | $ | 1,293 | |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| | |
| 1 | Derivative financial instruments are foreign currency exchange contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
| | | |
See Notes to Financial Statements. | | |
|
|
|
|
| BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | 21 |
| |
|
|
Statement of Assets and Liabilities (Liquidation Basis) | Global Financial Services Portfolio |
| | | | |
March 31, 2011 (Unaudited) | | | | |
|
|
|
|
|
Assets | | | | |
|
|
|
|
|
Investments at value — unaffiliated (cost — $52,339,892) | | $ | 63,080,721 | |
Unrealized appreciation on foreign currency exchange contracts | | | 1,698 | |
Foreign currency at value (cost — $16,354) | | | 16,354 | |
Investments sold receivable | | | 2,184,995 | |
Dividends receivable | | | 346,485 | |
Interest receivable | | | 30 | |
Prepaid expenses | | | 1,211 | |
| |
|
|
|
Total assets | | | 65,631,494 | |
| |
|
|
|
| | | | |
|
|
|
|
|
Liabilities | | | | |
|
|
|
|
|
Bank overdraft | | | 633,170 | |
Unrealized depreciation on foreign currency exchange contracts | | | 405 | |
Withdrawals payable to investors | | | 1,237,836 | |
Investment advisory fees payable | | | 24,005 | |
Other affiliates payable | | | 750 | |
Directors’ fees payable | | | 63 | |
Other accrued expenses payable | | | 67,938 | |
Other liabilities | | | 141 | |
| |
|
|
|
Total liabilities | | | 1,964,308 | |
| |
|
|
|
Net Assets | | $ | 63,667,186 | |
| |
|
|
|
| | | | |
|
|
|
|
|
Net Assets Consist of | | | | |
|
|
|
|
|
Investors’ capital | | $ | 52,921,854 | |
Net unrealized appreciation/depreciation | | | 10,745,332 | |
| |
|
|
|
Net Assets | | $ | 63,667,186 | |
| |
|
|
|
| | | |
See Notes to Financial Statements. |
|
22 | BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | |
| |
|
|
Statement of Operations (Liquidation Basis) | Global Financial Services Portfolio |
| | | | |
Six Months Ended March 31, 2011 (Unaudited) | | | | |
|
|
|
|
|
Investment Income | | | | |
|
|
|
|
|
Dividends — unaffiliated | | $ | 830,853 | |
Foreign taxes withheld | | | (25,221 | ) |
Dividends — affiliated | | | 559 | |
Interest | | | 75 | |
| |
|
|
|
Total income | | | 806,266 | |
| |
|
|
|
| | | | |
|
|
|
|
|
Expenses | | | | |
|
|
|
|
|
Investment advisory | | | 153,324 | |
Professional | | | 41,421 | |
Accounting services | | | 13,733 | |
Custodian | | | 13,141 | |
Directors | | | 3,156 | |
Miscellaneous | | | 5,441 | |
| |
|
|
|
Total expenses | | | 230,216 | |
Less fees waived by advisor | | | (251 | ) |
| |
|
|
|
Total expenses after fees waived | | | 229,965 | |
| |
|
|
|
Net investment income | | | 576,301 | |
| |
|
|
|
| | | | |
|
|
|
|
|
Realized and Unrealized Gain (Loss) | | | | |
|
|
|
|
|
Net realized gain (loss) from: | | | | |
Investments | | | 1,607,139 | |
Options written | | | 67,030 | |
Foreign currency transactions | | | (10,705 | ) |
| |
|
|
|
| | | 1,663,464 | |
| |
|
|
|
Net change in unrealized appreciation/depreciation on: | | | | |
Investments | | | 3,983,649 | |
Foreign currency transactions | | | 2,886 | |
| |
|
|
|
| | | 3,986,535 | |
| |
|
|
|
Total realized and unrealized gain | | | 5,649,999 | |
| |
|
|
|
Net Increase in Net Assets Resulting from Operations | | $ | 6,226,300 | |
| |
|
|
|
| | | |
See Notes to Financial Statements. |
|
| BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | 23 |
| |
|
|
Statements of Changes in Net Assets | Global Financial Services Portfolio |
| | | | | | | |
Increase (Decrease) in Net Assets: | | Six Months
Ended
March 31,
20111
(Unaudited) | | Year Ended
September 30,
2010 | |
|
|
|
|
|
|
Operations | | | | | | | |
|
|
|
|
|
|
|
|
Net investment income | | $ | 576,301 | | $ | 1,511,895 | |
Net realized gain (loss) | | | 1,663,464 | | | (4,491,055 | ) |
Net change in unrealized appreciation/depreciation | | | 3,986,535 | | | 315,864 | |
| |
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations | | | 6,226,300 | | | (2,663,296 | ) |
| |
|
|
|
|
|
|
| | | | | | | |
|
|
|
|
|
|
|
|
Capital Transactions | | | | | | | |
|
|
|
|
|
|
|
|
Proceeds from contributions | | | 10,612,566 | | | 23,223,915 | |
Value of withdrawals | | | (31,500,807 | ) | | (39,646,877 | ) |
| |
|
|
|
|
|
|
Net decrease in net assets derived from capital transactions | | | (20,888,241 | ) | | (16,422,962 | ) |
| |
|
|
|
|
|
|
| | | | | | | |
|
|
|
|
|
|
|
|
Net Assets | | | | | | | |
|
|
|
|
|
|
|
|
Total decrease in net assets | | | (14,661,941 | ) | | (19,086,258 | ) |
Beginning of period | | | 78,329,127 | | | 97,415,385 | |
| |
|
|
|
|
|
|
End of period | | $ | 63,667,186 | | $ | 78,329,127 | |
| |
|
|
|
|
|
|
| | | |
See Notes to Financial Statements. |
|
24 | BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | |
| |
|
|
Financial Highlights | Global Financial Services Portfolio |
| | | | | | | | | | | | | | | | | | | |
| | Six Months
Ended
March 31,
20111
(Unaudited) | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | Year Ended September 30, | |
| | |
|
|
| | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment return | | | 8.14 | %2 | | (2.30 | )% | | (6.52 | )% | | (34.83 | )% | | 11.91 | % | | 16.07 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses | | | 0.60 | %3 | | 0.63 | % | | 0.70 | % | | 0.64 | % | | 0.71 | % | | 0.66 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived | | | 0.60 | %3 | | 0.63 | % | | 0.70 | % | | 0.64 | % | | 0.71 | % | | 0.66 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income | | | 1.50 | %3 | | 1.75 | % | | 1.97 | % | | 2.69 | % | | 1.89 | % | | 3.62 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) | | $ | 63,667 | | $ | 78,329 | | $ | 97,415 | | $ | 127,786 | | $ | 95,206 | | $ | 96,601 | |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover | | | 28 | % | | 57 | % | | 75 | % | | 31 | % | | 55 | % | | 79 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
| 1 | Liquidation basis. |
| | |
| 2 | Aggregate total investment return. |
| | |
| 3 | Annualized. |
| | | |
See Notes to Financial Statements. |
|
| BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | 25 |
| |
|
| |
Notes to Financial Statements (Liquidation Basis) (Unaudited) | Global Financial Services Portfolio |
1. Organization and Significant Accounting Policies:
Global Financial Services Portfolio (the “Portfolio”) is a series of Global Financial Services Master LLC (the “Master LLC”). The Master LLC is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and is organized as a Delaware limited liability company. The Master LLC’s Limited Liability Company Agreement permits the Board of Directors of the Master LLC (the “Board”) to issue nontransferable interests in the Master LLC, subject to certain limitations. The 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.
On February 15, 2011, the Board approved a proposal to liquidate the Portfolio. On April 27, 2011, the Portfolio’s sole feeder fund redeemed all of its interests in the Portfolio and the Portfolio was thereafter liquidated and terminated. In connection with liquidation, the Portfolio adopted the liquidation basis of accounting, which among other things, requires the Portfolio to record assets and liabilities at their net realizable value and to provide estimated costs of liquidating the Portfolio to the extent that they are reasonably determinable.
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 price. If no bid price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security. 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.
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 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 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.
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the New York Stock Exchange (“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 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. Each business day, the Portfolio uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and OTC options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of business on the NYSE, which follows the close of the local markets.
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 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.
Foreign Currency Transactions: The 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 date the transactions are entered into. Generally, when the US dollar rises in value against a foreign currency, the 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.
| | |
|
|
|
26 | BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 |
| |
|
| |
Notes to Financial Statements (Liquidation Basis) (continued) | Global Financial Services Portfolio |
The 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.
Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Portfolio either delivers collateral or segregates assets in connection with certain investments (e.g., foreign currency exchange contracts and written options) the 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 other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit securities as collateral for certain investments.
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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.
Income Taxes: The Portfolio is disregarded as an entity separate from its owner for tax purposes. As such, the owner of the Portfolio is treated as the owner of the net assets, income, expenses and realized and unrealized gains and losses of the Portfolio. Therefore, no federal tax provision is required. It is intended that the Portfolio’s assets will be managed so the owner of the Portfolio can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.
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. Derivative Financial Instruments:
The Portfolio engages in various portfolio investment strategies using derivative contracts both to increase the return of the Portfolio and to economically hedge, or protect, its exposure to certain risks such as equity risk and foreign currency exchange rate risk. These contracts may be transacted on an exchange or OTC.
Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. The 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.
The Portfolio may mitigate counterparty risk by procuring collateral and through netting provisions included within an International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreement implemented between a Portfolio and each of its respective counterparties. The ISDA Master Agreement allows the 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 Portfolio from its counterparties are not fully collateralized contractually or otherwise, the 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 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 Portfolio’s net assets decline by a stated percentage or the Portfolio fails to meet the terms of its ISDA Master Agreements, which would cause the Portfolio to accelerate payment of any net liability owed to the counterparty.
Foreign Currency Exchange Contracts: The 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 Portfolio, help to manage the overall exposure to the currencies in which some of the investments held by the Portfolio are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Portfolio as an unrealized gain or loss. When the contract is closed, the 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
| | | |
|
| BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | 27 |
| |
|
| |
Notes to Financial Statements (Liquidation Basis) (continued) | Global Financial Services Portfolio |
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 Portfolio purchases and writes call and put options to increase or decrease its exposure to underlying instruments (equity risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying instrument at the exercise price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise price at any time or at a specified time during the option period. When the Portfolio purchases (writes) an option, an amount equal to the premium paid (received) by the 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 Portfolio enters into a closing transaction), the 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 Portfolio writes a call option, such option is “covered,” meaning that the Portfolio holds the underlying instrument subject to being called by the option counterparty. When the Portfolio writes a put option, such option is covered by cash in an amount sufficient to cover the obligation.
In purchasing and writing options, the Portfolio bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the 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 Portfolio purchasing or selling a security at a price different from the current market value.
| | | | | | | | | | | |
Derivative Instruments Categorized by Risk Exposure: | |
|
|
Fair Value of Derivative Instruments as of March 31, 2011 | |
|
|
| | Asset Derivatives | | Liability Derivatives | |
| |
| |
|
|
| | Statement of
Assets and
Liabilities
Location | | Value | | Statement of
Assets and
Liabilities
Location | | Value | |
|
|
|
|
|
|
|
|
|
|
Foreign currency exchange contracts | | Unrealized
appreciation
on foreign
currency
exchange
contracts | | $ | 1,698 | | Unrealized
depreciation
on foreign
currency
exchange
contracts | | $ | 405 | |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | |
|
|
|
|
|
|
|
|
The Effect of Derivative Instruments in the Statement of Operations
Six Months Ended March 31, 2011 | |
|
|
Net Realized Gain (Loss) from | |
|
|
| | Foreign
Currency
Transactions | | Options | |
|
|
|
|
|
|
Foreign currency exchange contracts | | $ | (21,864 | ) | | — | |
Equity contracts | | | — | | $ | 67,030 | |
|
|
Net Change in Unrealized Appreciation/Depreciation on | |
|
|
| | Foreign Currency Transactions | |
|
|
|
|
Foreign currency exchange contracts | | | | | $ | 1,303 | |
|
|
|
|
|
|
|
|
For the six months ended March 31, 2011, the average quarterly balance of outstanding derivative financial instruments was as follows:
| | | | |
|
|
|
|
|
Foreign currency exchange contracts: | | | | |
Average number of contracts — US dollars purchased | | | 16 | |
Average US dollar amounts purchased | | $ | 630,918 | |
Options: | | | | |
Average number of option contracts written | | | 1,597 | |
Average notional value of option contracts written | | $ | 798,500 | |
|
|
|
|
|
3. Investment Advisory Agreement and Other Transactions with Affiliates:
The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate of the Portfolio for 1940 Act purposes, but BAC and Barclays are not.
The Master LLC 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 at an annual rate of 0.40% of the Portfolio’s average daily net assets.
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 through the 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 a sub-advisory agreements with BlackRock International Limited (“BIL”) and BlackRock Investment Management, LLC (“BIM”), affiliates of the Manager, under which the Manager pays BIL and
| | |
|
|
|
28 | BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 |
| |
|
| |
Notes to Financial Statements (Liquidation Basis) (concluded) | Global Financial Services Portfolio |
BIM for services they provide, a monthly fee that is a percentage of investment advisory fees paid by the Portfolio to the Manager.
For the six months ended March 31, 2011, the Portfolio reimbursed the Manager $755 for certain accounting services, which are included in accounting services in the Statement of Operations.
Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock or its affiliates.
4. Investments:
Purchases and sales of investments, excluding short-term securities, for the six months ended March 31, 2011, were $21,213,464 and $41,880,716, respectively.
Transactions in options written for the six months ended March 31, 2011, were as follows:
| | | | | | | |
|
|
|
|
|
|
| | Calls | |
| |
|
|
| | Contracts | | Premiums
Received | |
|
|
|
|
|
|
Outstanding options, beginning of period | | | — | | | — | |
Options written | | | 3,194 | | $ | 67,030 | |
Options expired | | | (3,194 | ) | | (67,030 | ) |
| |
|
|
|
|
|
|
Outstanding options, end of period | | | — | | | — | |
| |
|
|
|
|
|
|
5. 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, which expired in November 2010. The Portfolio may borrow under the credit agreement to fund investor withdrawals. Effective November 2009, the credit agreement had the following terms: 0.02% upfront fee on the aggregate commitment amount which was allocated to the Portfolio based on its net assets as of October 31, 2009, a commitment fee of 0.10% 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 1.25% per annum and (b) the Fed Funds rate plus 1.25% 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, 2009. Effective November 2010, the credit agreement was renewed until November 2011 with 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 and (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 Portfolio did not borrow under the credit agreement during the six months ended March 31, 2011.
6. 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, 2011, the Portfolio had the following industry classifications:
| | | | |
|
|
|
|
Industry | | Percent of
Long-Term Investments | |
|
|
|
|
Commercial Banks | | | 46 | % |
Insurance | | | 17 | |
Diversified Finance Services | | | 12 | |
Capital Markets | | | 11 | |
Real Estate Investment Trusts (REITs) | | | 9 | |
Other* | | | 5 | |
|
|
|
|
|
| |
| * All other industries held were each less than 5% of long-term investments. |
7. Subsequent Events:
Management’s evaluation of the impact of all subsequent events on the Fund’s financial statements as completed through the date the financial statements were issued and the following item was noted:
As described in Note 1, on April 27, 2011, the net assets of the Fund were liquidated and each investor’s shares were redeemed at net asset value.
| | | |
|
| BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | 29 |
|
Ronald W. Forbes, Co-Chair of the Board and Director |
Rodney D. Johnson, Co-Chair of the Board and Director |
David O. Beim, Director |
Richard S. Davis, Director |
Henry Gabbay, Director |
Dr. Matina S. Horner, Director |
Herbert I. London, Director and Member of the Audit Committee |
Cynthia A. Montgomery, Director |
Joseph P. Platt, Director |
Robert C. Robb, Jr., Director |
Toby Rosenblatt, Director |
Kenneth L. Urish, Director and Chair of the Audit Committee |
Frederick W. Winter, Director and Member of the Audit Committee |
John M. Perlowski, President and Chief Executive Officer |
Brendan Kyne, Vice President |
Brian Schmidt, Vice President |
Neal Andrews, Chief Financial Officer |
Jay Fife, Treasurer |
Brian Kindelan, Chief Compliance Officer |
Ira P. Shapiro, Secretary |
|
Investment Advisor |
BlackRock Advisors, LLC |
Wilmington, DE 19809 |
|
Sub-Advisors |
BlackRock Investment Management, LLC |
Plainsboro, NJ 08536 |
|
BlackRock International Limited |
Edinburgh, Scotland |
United Kingdom EH38JB |
|
Custodian |
Brown Brothers Harriman & Co. |
Boston, MA 02109 |
|
Transfer Agent |
BNY Mellon Investment Servicing (US) Inc. |
Wilmington, DE 19809 |
|
Accounting Agent |
State Street Bank and Trust Company |
Princeton, NJ 08540 |
|
Distributor |
BlackRock Investments, LLC |
New York, NY 10022 |
|
Independent Registered Public Accounting Firm |
Deloitte & Touche LLP |
Princeton, NJ 08540 |
|
Legal Counsel |
Sidley Austin LLP |
New York, NY 10019 |
|
Address of the Fund |
100 Bellevue Parkway |
Wilmington, DE 19809 |
|
|
Effective November 10, 2010, Ira P. Shapiro became Secretary of the Fund/Master LLC. |
|
| | |
|
|
|
30 | BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 |
|
|
|
Additional Information |
|
|
General Information |
|
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock website at http://www.blackrock.com/edelivery
2) Select “eDelivery” under the “More Information” section
3) Log into your account
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 441-7762.
Availability of Quarterly Schedule of Investments
The Fund/Portfolio files its 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/Portfolio’s 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/Portfolio’s 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/Portfolio uses 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/Portfolio voted proxies relating to securities held in the Fund’s/Portfolio’s 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 GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | 31 |
|
|
|
Additional Information (continued) |
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.
| | |
|
|
|
32 | BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 |
|
|
|
Additional Information (concluded) |
|
BlackRock Privacy Principles |
|
BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.
| | | |
|
| BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | 33 |
|
|
|
A World-Class Mutual Fund Family |
BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.
|
|
Equity Funds |
|
BlackRock All-Cap Energy & Resources Portfolio |
BlackRock Asset Allocation Portfolio† |
BlackRock Balanced Capital Fund† |
BlackRock Basic Value Fund |
BlackRock Capital Appreciation Fund |
BlackRock China Fund |
BlackRock Energy & Resources Portfolio |
BlackRock Equity Dividend Fund |
BlackRock EuroFund |
BlackRock Focus Growth Fund |
BlackRock Focus Value Fund |
BlackRock Global Allocation Fund† |
BlackRock Global Dividend Income Portfolio |
BlackRock Global Dynamic Equity Fund |
BlackRock Global Emerging Markets Fund |
BlackRock Global Growth Fund |
BlackRock Global Opportunities Portfolio |
BlackRock Global SmallCap Fund |
BlackRock Health Sciences Opportunities Portfolio |
BlackRock Healthcare Fund |
BlackRock Index Equity Portfolio |
BlackRock India Fund |
BlackRock International Fund |
BlackRock International Index Fund |
BlackRock International Opportunities Portfolio |
BlackRock International Value Fund |
BlackRock Large Cap Core Fund |
BlackRock Large Cap Core Plus Fund |
BlackRock Large Cap Growth Fund |
BlackRock Large Cap Value Fund |
BlackRock Latin America Fund |
BlackRock Mid-Cap Growth Equity Portfolio |
BlackRock Mid-Cap Value Equity Portfolio |
BlackRock Mid Cap Value Opportunities Fund |
BlackRock Natural Resources Trust |
BlackRock Pacific Fund |
BlackRock Russell 1000 Index Fund |
BlackRock Science & Technology Opportunities Portfolio |
BlackRock Small Cap Growth Equity Portfolio |
BlackRock Small Cap Growth Fund II |
BlackRock Small Cap Index Fund |
BlackRock Small/Mid-Cap Growth Portfolio |
BlackRock S&P 500 Index Fund |
BlackRock S&P 500 Stock Fund |
BlackRock U.S. Opportunities Portfolio |
BlackRock Utilities and Telecommunications Fund |
BlackRock Value Opportunities Fund |
BlackRock World Gold Fund |
|
|
Fixed Income Funds |
|
BlackRock Bond Index Fund |
BlackRock Bond Portfolio |
BlackRock Emerging Market Debt Portfolio |
BlackRock Floating Rate Income Portfolio |
BlackRock GNMA Portfolio |
BlackRock Government Income Portfolio |
BlackRock High Income Fund |
BlackRock High Yield Bond Portfolio |
BlackRock Income Portfolio† |
BlackRock Inflation Protected Bond Portfolio |
BlackRock Intermediate Government Bond Portfolio |
BlackRock International Bond Portfolio |
BlackRock Long Duration Bond Portfolio |
BlackRock Low Duration Bond Portfolio |
BlackRock Managed Income Portfolio |
BlackRock Multi-Sector Bond Portfolio |
BlackRock Short-Term Bond Fund |
BlackRock Strategic Income Opportunities Portfolio |
BlackRock Total Return Fund |
BlackRock Total Return Portfolio II |
BlackRock World Income Fund |
|
|
Municipal Bond Funds |
|
BlackRock AMT-Free Municipal Bond Portfolio |
BlackRock California Municipal Bond Fund |
BlackRock High Yield Municipal Fund |
BlackRock Intermediate Municipal Fund |
BlackRock 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 |
BlackRock LifePath Portfolios |
Retirement |
2020 |
2025 |
2030 |
2035 |
2040 |
2045 |
2050 |
2055 |
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.
| | | |
|
34 | BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. | MARCH 31, 2011 | |
This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change. Please see the Fund’s prospectus for a description of risks associated with global investments.
| |
#GFSF -3/11 | 
|
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 |
| |
11(a) – | The registrants’ principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants’ disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended. |
| |
11(b) – | There were no changes in the registrants’ internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants’ internal control over financial reporting. |
| |
Item 12 – | Exhibits attached hereto |
| |
12(a)(1) – | Code of Ethics – Not Applicable to this semi-annual report |
| |
12(a)(2) – | Certifications – Attached hereto |
| |
12(a)(3) – | Not Applicable |
| |
12(b) – | Certifications – Attached hereto |
| | |
| Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, each registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
| |
| BlackRock Global Financial Services Fund, Inc. and Global Financial Services Master LLC |
| | |
| | By: | /s/ John M. Perlowski | |
| | | John M. Perlowski |
| | | Chief Executive Officer (principal executive officer) of |
| | | BlackRock Global Financial Services Fund, Inc. and Global Financial Services Master LLC |
| | |
| | Date: June 3, 2011 |
| | |
| | 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 Global Financial Services Fund, Inc. and Global Financial Services Master LLC |
| | |
| | Date: June 3, 2011 |
| | |
| | By: | /s/ Neal J. Andrews | |
| | | Neal J. Andrews |
| | | Chief Financial Officer (principal financial officer) of |
| | | BlackRock Global Financial Services Fund, Inc. and Global Financial Services Master LLC |
| | | |
| | Date: June 3, 2011 |
| | | | |
