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: 811-21197 and 811-21300
Name of Fund: BBIF Government Securities Fund and Master Government Securities LLC
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BBIF Government Securities Fund and Master Government Securities LLC, 55 East 52nd Street, New York, NY 10055
Registrants’ telephone number, including area code: (800) 626-1960
Date of fiscal year end: 03/31/2014
Date of reporting period: 09/30/2013
Item 1 – Report to Stockholders
SEMI-ANNUAL REPORT (UNAUDITED) | ![]() |
Not FDIC Insured • May Lose Value • No Bank Guarantee |
Table of Contents
Page | ||||||
Dear Shareholder | 3 | |||||
Semi-Annual Report: | ||||||
Money Market Overview | 4 | |||||
Fund Information | 5 | |||||
Disclosure of Expenses | 6 | |||||
Fund Financial Statements: | ||||||
Statements of Assets and Liabilities | 7 | |||||
Statements of Operations | 8 | |||||
Statements of Changes in Net Assets | 9 | |||||
Fund Financial Highlights | 10 | |||||
Fund Notes to Financial Statements | 18 | |||||
Master LLC Portfolio Information | 21 | |||||
Master LLC Financial Statements: | ||||||
Schedules of Investments | 22 | |||||
Statements of Assets and Liabilities | 25 | |||||
Statements of Operations | 26 | |||||
Statements of Changes in Net Assets | 27 | |||||
Master LLC Financial Highlights | 28 | |||||
Master LLC Notes to Financial Statements | 29 | |||||
Disclosure of Investment Advisory Agreements | 31 | |||||
Officers and Directors | 36 | |||||
Additional Information | 37 |
2 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Dear Shareholder |
![](https://capedge.com/proxy/N-CSRS/0000891092-13-009811/robkapito_sig.jpg)
Rob Kapito
President, BlackRock Advisors, LLC
![]() |
“Though we’ve seen periods of heightened uncertainty and market volatility over the past year, riskier asset classes generally outperformed lower-risk investments.” |
Rob Kapito
President, BlackRock Advisors, LLC
Total Returns as of September 30, 2013
6-month | 12-month | |||||
US large cap equities (S&P 500® Index) | 8.31 | % | 19.34 | % | ||
US small cap equities (Russell 2000® Index) | 13.61 | 30.06 | ||||
International equities (MSCI Europe, Australasia, Far East Index) | 10.47 | 23.77 | ||||
Emerging market equities (MSCI Emerging Markets Index) | (2.78 | ) | 0.98 | |||
3-month Treasury bill (BofA Merrill Lynch 3-Month US Treasury Bill Index) | 0.04 | 0.10 | ||||
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index) | (5.19 | ) | (5.71 | ) | ||
US investment grade bonds (Barclays US Aggregate Bond Index) | (1.77 | ) | (1.68 | ) | ||
Tax-exempt municipal bonds (S&P Municipal Bond Index) | (3.47 | ) | (2.25 | ) | ||
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index) | 0.81 | 7.14 |
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 |
Money Market Overview | |
For the Six-Month Period Ended September 30, 2013
4 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Fund Information as of September 30, 2013 | |
BBIF Government Securities Fund
| 7-Day SEC Yields | | 7-Day Yields | |||||||
Class 1 | 0.00% | 0.00 | % | |||||||
Class 2 | 0.00% | 0.00 | % | |||||||
Class 3 | 0.00% | 0.00 | % | |||||||
Class 4 | 0.00% | 0.00 | % |
BBIF Treasury Fund
| 7-Day SEC Yields | | 7-Day Yields | |||||||
Class 1 | 0.00% | 0.00 | % | |||||||
Class 2 | 0.00% | 0.00 | % | |||||||
Class 3 | 0.00% | 0.00 | % | |||||||
Class 4 | 0.00% | 0.00 | % |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 5 |
Disclosure of Expenses | |
Expense Examples
Actual | Hypothetical2 | | ||||||||||||||||||||||||||
| Beginning Account Value April 1, 2013 | | Ending Account Value September 30, 2013 | | Expenses Paid During the Period1 | | Beginning Account Value April 1, 2013 | | Ending Account Value September 30, 2013 | | Expenses Paid During the Period1 | | Annualized Expense Ratio | |||||||||||||||
BBIF Government Securities Fund | ||||||||||||||||||||||||||||
Class 1 | $ | 1,000.00 | $ | 1,000.00 | $ | 0.40 | $ | 1,000.00 | $ | 1,024.67 | $ | 0.41 | 0.08 | % | ||||||||||||||
Class 2 | $ | 1,000.00 | $ | 1,000.00 | $ | 0.40 | $ | 1,000.00 | $ | 1,024.67 | $ | 0.41 | 0.08 | % | ||||||||||||||
Class 3 | $ | 1,000.00 | $ | 1,000.00 | $ | 0.40 | $ | 1,000.00 | $ | 1,024.67 | $ | 0.41 | 0.08 | % | ||||||||||||||
Class 4 | $ | 1,000.00 | $ | 1,000.00 | $ | 0.40 | $ | 1,000.00 | $ | 1,024.67 | $ | 0.41 | 0.08 | % | ||||||||||||||
BBIF Treasury Fund | ||||||||||||||||||||||||||||
Class 1 | $ | 1,000.00 | $ | 1,000.00 | $ | 0.35 | $ | 1,000.00 | $ | 1,024.72 | $ | 0.36 | 0.07 | % | ||||||||||||||
Class 2 | $ | 1,000.00 | $ | 1,000.00 | $ | 0.35 | $ | 1,000.00 | $ | 1,024.72 | $ | 0.36 | 0.07 | % | ||||||||||||||
Class 3 | $ | 1,000.00 | $ | 1,000.00 | $ | 0.35 | $ | 1,000.00 | $ | 1,024.72 | $ | 0.36 | 0.07 | % | ||||||||||||||
Class 4 | $ | 1,000.00 | $ | 1,000.00 | $ | 0.35 | $ | 1,000.00 | $ | 1,024.72 | $ | 0.36 | 0.07 | % |
1 | For each class of the Funds, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Because the Funds are feeder funds, the expense example reflects the net expenses of both the Fund and the master fund 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 365. |
6 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Statements of Assets and Liabilities |
September 30, 2013 (Unaudited) | BBIF Government Securities Fund | BBIF Treasury Fund | |||||||||
Assets | |||||||||||
Investments at value — Master Government Securities LLC and Master Treasury LLC (each, a “Master LLC” or collectively, the “Master LLCs”), respectively1 | $ | 144,309,176 | $ | 742,737,233 | |||||||
Capital shares sold receivable | 13,208,302 | 24,511,996 | |||||||||
Prepaid expenses | 29,476 | 12,489 | |||||||||
Total assets | 157,546,954 | 767,261,718 | |||||||||
Liabilities | |||||||||||
Capital shares redeemed payable | 11,221,880 | 23,301,376 | |||||||||
Contributions payable to the Master LLC | 1,986,422 | 1,210,620 | |||||||||
Officer’s fees payable | 95 | 277 | |||||||||
Service and distribution fees payable | — | 153 | |||||||||
Administration fees payable | — | 3 | |||||||||
Other accrued expenses payable | 33,806 | 59,900 | |||||||||
Total liabilities | 13,242,203 | 24,572,329 | |||||||||
Net Assets | $ | 144,304,751 | $ | 742,689,389 | |||||||
Net Assets Consist of | |||||||||||
Paid-in capital2,3 | $ | 144,292,387 | $ | 742,648,263 | |||||||
Undistributed net investment income | 221 | 82 | |||||||||
Accumulated net realized gain allocated from the Master LLC | 12,143 | 41,044 | |||||||||
Net Assets | $ | 144,304,751 | $ | 742,689,389 | |||||||
Net Asset Value | |||||||||||
Class 1: | |||||||||||
Net assets | $ | 7,265,959 | $ | 19,910,088 | |||||||
Shares outstanding | 7,265,381 | 19,908,984 | |||||||||
Net asset value | $ | 1.00 | $ | 1.00 | |||||||
Class 2: | |||||||||||
Net assets | $ | 17,613,476 | $ | 50,021,923 | |||||||
Shares outstanding | 17,612,071 | 50,019,145 | |||||||||
Net asset value | $ | 1.00 | $ | 1.00 | |||||||
Class 3: | |||||||||||
Net assets | $ | 76,221,176 | $ | 228,270,386 | |||||||
Shares outstanding | 76,215,041 | 228,257,636 | |||||||||
Net asset value | $ | 1.00 | $ | 1.00 | |||||||
Class 4: | |||||||||||
Net assets | $ | 43,204,140 | $ | 444,486,992 | |||||||
Shares outstanding | 43,199,896 | 444,462,499 | |||||||||
Net asset value | $ | 1.00 | $ | 1.00 | |||||||
1 Investments at cost | $ | 144,309,176 | $ | 742,737,233 | |||||||
2 Shares authorized | unlimited | unlimited | |||||||||
3 Par value per share | $ | 0.10 | $ | 0.10 |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 7 |
Statements of Operations |
Six Months Ended September 30, 2013 (Unaudited) | BBIF Government Securities Fund | BBIF Treasury Fund | |||||||||
Investment Income | |||||||||||
Net investment income allocated from the applicable Master LLC: | |||||||||||
Interest | $ | 79,186 | $ | 266,014 | |||||||
Expenses | (275,667 | ) | (725,791 | ) | |||||||
Fees waived | 231,357 | 571,731 | |||||||||
Total income | 34,876 | 111,954 | |||||||||
Fund Expenses | |||||||||||
Administration | 251,181 | 996,131 | |||||||||
Service and distribution — Class 1 | 39,338 | 115,479 | |||||||||
Service and distribution — Class 2 | 61,078 | 195,774 | |||||||||
Service and distribution — Class 3 | 122,388 | 416,876 | |||||||||
Service and distribution — Class 4 | 200,590 | 907,360 | |||||||||
Transfer agent — Class 1 | 1,852 | 4,485 | |||||||||
Transfer agent — Class 2 | 617 | 2,060 | |||||||||
Transfer agent — Class 3 | 1,174 | 3,619 | |||||||||
Transfer agent — Class 4 | 1,490 | 4,650 | |||||||||
Registration | 47,661 | 83,166 | |||||||||
Professional | 10,395 | 15,367 | |||||||||
Printing | 8,387 | 8,775 | |||||||||
Officer | 58 | 150 | |||||||||
Miscellaneous | 6,467 | 9,167 | |||||||||
Total expenses | 752,676 | 2,763,059 | |||||||||
Less fees waived by administrator | (251,156 | ) | (996,074 | ) | |||||||
Less service and distribution fees waived — Class 1 | (39,338 | ) | (115,479 | ) | |||||||
Less service and distribution fees waived — Class 2 | (61,078 | ) | (195,774 | ) | |||||||
Less service and distribution fees waived — Class 3 | (122,388 | ) | (416,876 | ) | |||||||
Less service and distribution fees waived — Class 4 | (200,590 | ) | (907,360 | ) | |||||||
Transfer agent fees reimbursed — Class 1 | (1,852 | ) | (4,485 | ) | |||||||
Transfer agent fees reimbursed — Class 2 | (617 | ) | (2,060 | ) | |||||||
Transfer agent fees reimbursed — Class 3 | (1,174 | ) | (3,619 | ) | |||||||
Transfer agent fees reimbursed — Class 4 | (1,490 | ) | (4,650 | ) | |||||||
Less other expenses waived and/or reimbursed by administrator — Class 1 | (1,873 | ) | (216 | ) | |||||||
Less other expenses waived and/or reimbursed by administrator — Class 2 | (4,354 | ) | (356 | ) | |||||||
Less other expenses waived and/or reimbursed by administrator — Class 3 | (16,082 | ) | (1,446 | ) | |||||||
Less other expenses waived and/or reimbursed by administrator — Class 4 | (15,971 | ) | (2,959 | ) | |||||||
Total expenses after fees waived and/or reimbursed | 34,713 | 111,705 | |||||||||
Net investment income | 163 | 249 | |||||||||
Realized Gain Allocated from the applicable Master LLC | |||||||||||
Net realized gain from investments | 4,287 | 27,720 | |||||||||
Net Increase in Net Assets Resulting from Operations | $ | 4,450 | $ | 27,969 |
8 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Statements of Changes in Net Assets |
BBIF Government Securities Fund | BBIF Treasury Fund | ||||||||||||||||||||||
Increase (Decrease) in Net Assets: | Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, 2013 | Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, 2013 | |||||||||||||||||||
Operations | |||||||||||||||||||||||
Net investment income | $ | 163 | $ | 178 | $ | 249 | $ | 213 | |||||||||||||||
Net realized gain | 4,287 | 21,995 | 27,720 | 46,496 | |||||||||||||||||||
Net increase in net assets resulting from operations | 4,450 | 22,173 | 27,969 | 46,709 | |||||||||||||||||||
Dividends and Distributions to Shareholders From | |||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||
Class 1 | (2 | ) | (7 | )1 | (5 | ) | (11 | )1 | |||||||||||||||
Class 2 | (6 | ) | (13 | )1 | (12 | ) | (30 | )1 | |||||||||||||||
Class 3 | (19 | ) | (44 | )1 | (47 | ) | (66 | )1 | |||||||||||||||
Class 4 | (30 | ) | (114 | )1 | (103 | ) | (231 | )1 | |||||||||||||||
Net realized gain: | |||||||||||||||||||||||
Class 1 | — | (312 | )1 | — | (712 | )1 | |||||||||||||||||
Class 2 | — | (601 | )1 | — | (2,033 | )1 | |||||||||||||||||
Class 3 | — | (3,218 | )1 | — | (9,211 | )1 | |||||||||||||||||
Class 4 | — | (7,919 | )1 | — | (25,389 | )1 | |||||||||||||||||
Decrease in net assets resulting from dividends and distributions to shareholders | (57 | ) | (12,228 | ) | (167 | ) | (37,683 | ) | |||||||||||||||
Capital Share Transactions | |||||||||||||||||||||||
Net decrease in net assets derived from capital share transactions | (46,983,718 | ) | (218,987,786 | ) | (164,572,031 | ) | (353,005,826 | ) | |||||||||||||||
Net Assets | |||||||||||||||||||||||
Total decrease in net assets | (46,979,325 | ) | (218,977,841 | ) | (164,544,229 | ) | (352,996,800 | ) | |||||||||||||||
Beginning of period | 191,284,076 | �� | 410,261,917 | 907,233,618 | 1,260,230,418 | ||||||||||||||||||
End of period | $ | 144,304,751 | $ | 191,284,076 | $ | 742,689,389 | $ | 907,233,618 | |||||||||||||||
Undistributed net investment income, end of period | $ | 221 | $ | 115 | $ | 82 | — |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 9 |
Financial Highlights | BBIF Government Securities Fund |
Class 1 | |||||||||||||||||||||||||||
Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Net investment income | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0019 | ||||||||||||||||
Net realized gain | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0001 | 0.0000 | 1 | |||||||||||||||||
Net increase from investment operations | 0.0000 | 0.0000 | 0.0000 | 0.0001 | 0.0001 | 0.0019 | |||||||||||||||||||||
Dividends and distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.0000 | )2 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0002 | )3 | (0.0019 | )3 | |||||||||||||||
Net realized gain | — | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0001 | )3 | (0.0000 | )2,3 | — | |||||||||||||||||
Total dividends and distributions | (0.0000 | ) | (0.0000 | ) | (0.0000 | ) | (0.0001 | ) | (0.0002 | ) | (0.0019 | ) | |||||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Total Investment Return4 | |||||||||||||||||||||||||||
Based on net asset value | 0.00% | 5 | 0.00% | 0.00% | 0.01% | 0.02% | 0.19% | ||||||||||||||||||||
Ratios to Average Net Assets6 | |||||||||||||||||||||||||||
Total expenses | 1.41% | 7,8 | 1.40% | 7 | 1.41% | 7 | 1.46% | 7 | 1.50% | 1.61% | |||||||||||||||||
Total expenses after fees waived and/or reimbursed | 0.08% | 7,8 | 0.14% | 7 | 0.07% | 7 | 0.18% | 7 | 0.22% | 1.06% | |||||||||||||||||
Net investment income | 0.00% | 7,8 | 0.00% | 7 | 0.00% | 7 | 0.00% | 7 | 0.00% | 0.19% | |||||||||||||||||
Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 7,266 | $ | 12,860 | $ | 8,850 | $ | 7,132 | $ | 13,270 | $ | 9,160 |
1 | Amount is less than $0.00005 per share. |
2 | Amount is greater than $(0.00005) per share. |
3 | Dividends and distributions are determined in accordance with federal income tax regulations. |
4 | Where applicable, total investment returns assume the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income. |
7 | Includes the Fund’s share of the Master LLC’s allocated fees waived of 0.23%, 0.20%, 0.24% and 0.21% for the period ended September 30, 2013 and the years ended March 31, 2013, March 31, 2012 and March 31, 2011, respectively. |
8 | Annualized. |
10 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Financial Highlights (continued) | BBIF Government Securities Fund |
Class 2 | |||||||||||||||||||||||||||
Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Net investment income (loss) | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | (0.0000 | )2 | 0.0000 | 1 | 0.0051 | ||||||||||||||||
Net realized gain | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0000 | 1 | 0.0001 | |||||||||||||||||
Net increase from investment operations | 0.0000 | 0.0000 | 0.0000 | 0.0001 | 0.0000 | 0.0052 | |||||||||||||||||||||
Dividends and distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.0000 | )2 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0002 | )3 | (0.0051 | )3 | |||||||||||||||
Net realized gain | — | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0001 | )3 | (0.0000 | )2,3 | — | |||||||||||||||||
Total dividends and distributions | (0.0000 | ) | (0.0000 | ) | (0.0000 | ) | (0.0001 | ) | (0.0002 | ) | (0.0051 | ) | |||||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Total Investment Return4 | |||||||||||||||||||||||||||
Based on net asset value | 0.00% | 5 | 0.00% | 0.00% | 0.01% | 0.02% | 0.51% | ||||||||||||||||||||
Ratios to Average Net Assets6 | |||||||||||||||||||||||||||
Total expenses | 1.05% | 7,8 | 1.06% | 7 | 1.05% | 7 | 1.13% | 7 | 1.18% | 1.27% | |||||||||||||||||
Total expenses after fees waived and/or reimbursed | 0.08% | 7,8 | 0.14% | 7 | 0.07% | 7 | 0.18% | 7 | 0.21% | 0.76% | |||||||||||||||||
Net investment income | 0.00% | 7,8 | 0.00% | 7 | 0.00% | 7 | (0.00)% | 7 | 0.00% | 0.51% | |||||||||||||||||
Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 17,613 | $ | 16,611 | $ | 42,220 | $ | 48,804 | $ | 60,953 | $ | 70,723 |
1 | Amount is less than $0.00005 per share. |
2 | Amount is greater than $(0.00005) per share. |
3 | Dividends and distributions are determined in accordance with federal income tax regulations. |
4 | Where applicable, total investment returns assume the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income. |
7 | Includes the Fund’s share of the Master LLC’s allocated fees waived of 0.23%, 0.20%, 0.24% and 0.21% for the period ended September 30, 2013 and the years ended March 31, 2013, March 31, 2012 and March 31, 2011, respectively. |
8 | Annualized. |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 11 |
Financial Highlights (continued) | BBIF Government Securities Fund |
Class 3 | |||||||||||||||||||||||||||
Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Net investment income | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0070 | ||||||||||||||||
Net realized gain | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0000 | 1 | 0.0001 | |||||||||||||||||
Net increase from investment operations | 0.0000 | 0.0000 | 0.0000 | 0.0001 | 0.0000 | 0.0071 | |||||||||||||||||||||
Dividends and distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.0000 | )2 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0002 | )3 | (0.0070 | )3 | |||||||||||||||
Net realized gain | — | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0001 | )3 | (0.0000 | )2,3 | — | |||||||||||||||||
Total dividends and distributions | (0.0000 | ) | (0.0000 | ) | (0.0000 | ) | (0.0001 | ) | (0.0002 | ) | (0.0070 | ) | |||||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Total Investment Return4 | |||||||||||||||||||||||||||
Based on net asset value | 0.00% | 5 | 0.00% | 0.00% | 0.01% | 0.02% | 0.70% | ||||||||||||||||||||
Ratios to Average Net Assets6 | |||||||||||||||||||||||||||
Total expenses | 0.75% | 7,8 | 0.75% | 7 | 0.74% | 7 | 0.83% | 7 | 0.88% | 0.97% | |||||||||||||||||
Total expenses after fees waived and/or reimbursed | 0.08% | 7,8 | 0.14% | 7 | 0.07% | 7 | 0.18% | 7 | 0.21% | 0.55% | |||||||||||||||||
Net investment income | 0.00% | 7,8 | 0.00% | 7 | 0.00% | 7 | 0.00% | 7 | 0.00% | 0.68% | |||||||||||||||||
Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 76,221 | $ | 58,380 | $ | 104,375 | $ | 94,019 | $ | 135,353 | $ | 159,693 |
1 | Amount is less than $0.00005 per share. |
2 | Amount is greater than $(0.00005) per share. |
3 | Dividends and distributions are determined in accordance with federal income tax regulations. |
4 | Where applicable, total investment returns assume the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income. |
7 | Includes the Fund’s share of the Master LLC’s allocated fees waived of 0.23%, 0.20%, 0.24% and 0.21% for the period ended September 30, 2013 and the years ended March 31, 2013, March 31, 2012 and March 31, 2011, respectively. |
8 | Annualized. |
12 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Financial Highlights (concluded) | BBIF Government Securities Fund |
Class 4 | |||||||||||||||||||||||||||
Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Net investment income | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0070 | ||||||||||||||||
Net realized gain | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0000 | 1 | 0.0001 | |||||||||||||||||
Net increase from investment operations | 0.0000 | 0.0000 | 0.0000 | 0.0001 | 0.0000 | 0.0071 | |||||||||||||||||||||
Dividends and distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.0000 | )2 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0002 | )3 | (0.0070 | )3 | |||||||||||||||
Net realized gain | — | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0001 | )3 | (0.0000 | )2,3 | — | |||||||||||||||||
Total dividends and distributions | (0.0000 | ) | (0.0000 | ) | (0.0000 | ) | (0.0001 | ) | (0.0002 | ) | (0.0070 | ) | |||||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Total Investment Return4 | |||||||||||||||||||||||||||
Based on net asset value | 0.00% | 5 | 0.00% | 0.00% | 0.01% | 0.02% | 0.70% | ||||||||||||||||||||
Ratios to Average Net Assets6 | |||||||||||||||||||||||||||
Total expenses | 0.73% | 7,8 | 0.74% | 7 | 0.74% | 7 | 0.81% | 7 | 0.87% | 0.96% | |||||||||||||||||
Total expenses after fees waived and/or reimbursed | 0.08% | 7,8 | 0.14% | 7 | 0.07% | 7 | 0.18% | 7 | 0.22% | 0.56% | |||||||||||||||||
Net investment income | 0.00% | 7,8 | 0.00% | 7 | 0.00% | 7 | 0.00% | 7 | 0.00% | 0.72% | |||||||||||||||||
Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 43,204 | $ | 103,434 | $ | 254,817 | $ | 138,105 | $ | 150,166 | $ | 262,476 |
1 | Amount is less than $0.00005 per share. |
2 | Amount is greater than $(0.00005) per share. |
3 | Dividends and distributions are determined in accordance with federal income tax regulations. |
4 | Where applicable, total investment returns assume the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income. |
7 | Includes the Fund’s share of the Master LLC’s allocated fees waived of 0.23%, 0.20%, 0.24% and 0.21% for the period ended September 30, 2013 and the years ended March 31, 2013, March 31, 2012 and March 31, 2011, respectively. |
8 | Annualized. |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 13 |
Financial Highlights | BBIF Treasury Fund |
Class 1 | |||||||||||||||||||||||||||
Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Net investment income | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0015 | ||||||||||||||||
Net realized gain | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0001 | 0.0001 | ||||||||||||||||||
Net increase from investment operations | 0.0000 | 0.0000 | 0.0000 | 0.0001 | 0.0001 | 0.0016 | |||||||||||||||||||||
Dividends and distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.0000 | )2 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0002 | )3 | (0.0015 | )3 | |||||||||||||||
Net realized gain | — | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0001 | )3 | (0.0000 | )2,3 | — | |||||||||||||||||
Total dividends and distributions | (0.0000 | ) | (0.0000 | ) | (0.0000 | ) | (0.0001 | ) | (0.0002 | ) | (0.0015 | ) | |||||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Total Investment Return4 | |||||||||||||||||||||||||||
Based on net asset value | 0.00% | 5 | 0.00% | 0.00% | 0.01% | 0.02% | 0.15% | ||||||||||||||||||||
Ratios to Average Net Assets6 | |||||||||||||||||||||||||||
Total expenses | 1.35% | 7,8 | 1.38% | 7 | 1.34% | 7 | 1.41% | 7 | 1.45% | 1.50% | |||||||||||||||||
Total expenses after fees waived and/or reimbursed | 0.07% | 7,8 | 0.10% | 7 | 0.05% | 7 | 0.16% | 7 | 0.20% | 0.91% | |||||||||||||||||
Net investment income | 0.00% | 7,8 | 0.00% | 7 | 0.00% | 7 | 0.00% | 7 | 0.00% | 0.12% | |||||||||||||||||
Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 19,910 | $ | 48,714 | $ | 16,837 | $ | 15,797 | $ | 25,132 | $ | 23,784 |
1 | Amount is less than $0.00005 per share. |
2 | Amount is greater than $(0.00005) per share. |
3 | Dividends and distributions are determined in accordance with federal income tax regulations. |
4 | Where applicable, total investment returns assume the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income. |
7 | Includes the Fund’s share of the Master LLC’s allocated fees waived of 0.14%, 0.11%, 0.15% and 0.08%, for the period ended September 30, 2013 and the years ended March 31, 2013, March 31, 2012 and March 31, 2011, respectively. |
8 | Annualized. |
14 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Financial Highlights (continued) | BBIF Treasury Fund |
Class 2 | |||||||||||||||||||||||||||
Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Net investment income | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0041 | |||||||||||||||||
Net realized gain | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0001 | 0.0001 | ||||||||||||||||||
Net increase from investment operations | 0.0000 | 0.0000 | 0.0000 | 0.0001 | 0.0002 | 0.0042 | |||||||||||||||||||||
Dividends and distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.0000 | )2 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0002 | )3 | (0.0041 | )3 | |||||||||||||||
Net realized gain | — | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0001 | )3 | (0.0000 | )2,3 | — | |||||||||||||||||
Total dividends and distributions | (0.0000 | ) | (0.0000 | ) | (0.0000 | ) | (0.0001 | ) | (0.0002 | ) | (0.0041 | ) | |||||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Total Investment Return4 | |||||||||||||||||||||||||||
Based on net asset value | 0.00% | 5 | 0.00% | 0.00% | 0.01% | 0.03% | 0.41% | ||||||||||||||||||||
Ratios to Average Net Assets6 | |||||||||||||||||||||||||||
Total expenses | 1.00% | 7,8 | 1.03% | 7 | 1.00% | 7 | 1.08% | 7 | 1.12% | 1.17% | |||||||||||||||||
Total expenses after fees waived and/or reimbursed | 0.07% | 7,8 | 0.10% | 7 | 0.05% | 7 | 0.16% | 7 | 0.20% | 0.70% | |||||||||||||||||
Net investment income | 0.00% | 7,8 | 0.00% | 7 | 0.00% | 7 | 0.00% | 7 | 0.01% | 0.33% | |||||||||||||||||
Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 50,022 | $ | 54,826 | $ | 108,916 | $ | 124,947 | $ | 160,005 | $ | 225,289 |
1 | Amount is less than $0.00005 per share. |
2 | Amount is greater than $(0.00005) per share. |
3 | Dividends and distributions are determined in accordance with federal income tax regulations. |
4 | Where applicable, total investment returns assume the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income. |
7 | Includes the Fund’s share of the Master LLC’s allocated fees waived of 0.14%, 0.11%, 0.15% and 0.08%, for the period ended September 30, 2013 and the years ended March 31, 2013, March 31, 2012 and March 31, 2011, respectively. |
8 | Annualized. |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 15 |
Financial Highlights (continued) | BBIF Treasury Fund |
Class 3 | |||||||||||||||||||||||||||
Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Net investment income | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0064 | |||||||||||||||||
Net realized gain | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0001 | 0.0001 | ||||||||||||||||||
Net increase from investment operations | 0.0000 | 0.0000 | 0.0000 | 0.0001 | 0.0002 | 0.0065 | |||||||||||||||||||||
Dividends and distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.0000 | )2 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0002 | )3 | (0.0064 | )3 | |||||||||||||||
Net realized gain | — | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0001 | )3 | (0.0000 | )2,3 | — | |||||||||||||||||
Total dividends and distributions | (0.0000 | ) | (0.0000 | ) | (0.0000 | ) | (0.0001 | ) | (0.0002 | ) | (0.0064 | ) | |||||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Total Investment Return4 | |||||||||||||||||||||||||||
Based on net asset value | 0.00% | 5 | 0.00% | 0.00% | 0.01% | 0.03% | 0.64% | ||||||||||||||||||||
Ratios to Average Net Assets6 | |||||||||||||||||||||||||||
Total expenses | 0.69% | 7,8 | 0.73% | 7 | 0.69% | 7 | 0.78% | 7 | 0.81% | 0.87% | |||||||||||||||||
Total expenses after fees waived and/or reimbursed | 0.07% | 7,8 | 0.10% | 7 | 0.05% | 7 | 0.16% | 7 | 0.20% | 0.50% | |||||||||||||||||
Net investment income | 0.00% | 7,8 | 0.00% | 7 | 0.00% | 7 | 0.00% | 7 | 0.01% | 0.50% | |||||||||||||||||
Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 228,270 | $ | 243,886 | $ | 387,165 | $ | 405,216 | $ | 445,844 | $ | 640,439 |
1 | Amount is less than $0.00005 per share. |
2 | Amount is greater than $(0.00005) per share. |
3 | Dividends and distributions are determined in accordance with federal income tax regulations. |
4 | Where applicable, total investment returns assume the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income. |
7 | Includes the Fund’s share of the Master LLC’s allocated fees waived of 0.14%, 0.11%, 0.15% and 0.08%, for the period ended September 30, 2013 and the years ended March 31, 2013, March 31, 2012 and March 31, 2011, respectively. |
8 | Annualized. |
16 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Financial Highlights (concluded) | BBIF Treasury Fund |
Class 4 | |||||||||||||||||||||||||||
Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Net investment income | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0064 | |||||||||||||||||
Net realized gain | 0.0000 | 1 | 0.0000 | 1 | 0.0000 | 1 | 0.0001 | 0.0001 | 0.0001 | ||||||||||||||||||
Net increase from investment operations | 0.0000 | 0.0000 | 0.0000 | 0.0001 | 0.0002 | 0.0065 | |||||||||||||||||||||
Dividends and distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.0000 | )2 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0002 | )3 | (0.0064 | )3 | |||||||||||||||
Net realized gain | — | (0.0000 | )2,3 | (0.0000 | )2,3 | (0.0001 | )3 | (0.0000 | )2,3 | — | |||||||||||||||||
Total dividends and distributions | (0.0000 | ) | (0.0000 | ) | (0.0000 | ) | (0.0001 | ) | (0.0002 | ) | (0.0064 | ) | |||||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||||
Total Investment Return4 | |||||||||||||||||||||||||||
Based on net asset value | 0.00% | 5 | 0.00% | 0.00% | 0.01% | 0.03% | 0.64% | ||||||||||||||||||||
Ratios to Average Net Assets6 | |||||||||||||||||||||||||||
Total expenses | 0.69% | 7,8 | 0.72% | 7 | 0.69% | 7 | 0.78% | 7 | 0.81% | 0.87% | |||||||||||||||||
Total expenses after fees waived and/or reimbursed | 0.07% | 7,8 | 0.10% | 7 | 0.04% | 7 | 0.15% | 7 | 0.19% | 0.50% | |||||||||||||||||
Net investment income | 0.00% | 7,8 | 0.00% | 7 | 0.00% | 7 | 0.00% | 7 | 0.01% | 0.53% | |||||||||||||||||
Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 444,487 | $ | 559,807 | $ | 747,313 | $ | 454,484 | $ | 547,903 | $ | 592,932 |
1 | Amount is less than $0.00005 per share. |
2 | Amount is greater than $(0.00005) per share. |
3 | Dividends and distributions are determined in accordance with federal income tax regulations. |
4 | Where applicable, total investment returns assume the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income. |
7 | Includes the Fund’s share of the Master LLC’s allocated fees waived of 0.14%, 0.11%, 0.15% and 0.08%, for the period ended September 30, 2013 and the years ended March 31, 2013, March 31, 2012 and March 31, 2011, respectively. |
8 | Annualized. |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 17 |
Notes to Financial Statements (Unaudited) | BBIF Government Securities Fund and BBIF Treasury Fund |
18 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Notes to Financial Statements (continued) | BBIF Government Securities Fund and BBIF Treasury Fund |
| Service Fee | | Distribution Fee | |||
Class 1 | 0.25% | 0.750% | ||||
Class 2 | 0.25% | 0.425% | ||||
Class 3 | 0.25% | 0.125% | ||||
Class 4 | 0.25% | 0.125% |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 19 |
Notes to Financial Statements (concluded) | BBIF Government Securities Fund and BBIF Treasury Fund |
BBIF Government Securities Fund | BBIF Treasury Fund | ||||||||||||||||||||||
Six Months Ended September 30, 2013 | Year Ended March 31, 2013 | Six Months Ended September 30, 2013 | Year Ended March 31, 2013 | ||||||||||||||||||||
Class 1 | |||||||||||||||||||||||
Shares sold | 35,926,747 | 139,685,433 | 128,133,178 | 499,874,496 | |||||||||||||||||||
Shares issued to shareholders in reinvestment of dividends and distributions | — | 312 | 1 | 715 | |||||||||||||||||||
Shares redeemed | (41,520,936 | ) | (135,675,893 | ) | (156,937,649 | ) | (467,998,980 | ) | |||||||||||||||
Net increase (decrease) | (5,594,189 | ) | 4,009,852 | (28,804,470 | ) | 31,876,231 | |||||||||||||||||
Class 2 | |||||||||||||||||||||||
Shares sold | 48,388,582 | 146,005,254 | 226,034,833 | 472,360,212 | |||||||||||||||||||
Shares issued to shareholders in reinvestment of dividends and distributions | — | 601 | — | 2,033 | |||||||||||||||||||
Shares redeemed | (47,386,535 | ) | (171,615,448 | ) | (230,840,818 | ) | (526,447,798 | ) | |||||||||||||||
Net increase (decrease) | 1,002,047 | (25,609,593 | ) | (4,805,985 | ) | (54,085,553 | ) | ||||||||||||||||
Class 3 | |||||||||||||||||||||||
Shares sold | 204,309,573 | 407,430,035 | 773,024,251 | 1,475,435,321 | |||||||||||||||||||
Shares issued to shareholders in reinvestment of dividends and distributions | 5 | 3,233 | 16 | 9,257 | |||||||||||||||||||
Shares redeemed | (186,471,783 | ) | (453,432,660 | ) | (788,649,478 | ) | (1,618,719,285 | ) | |||||||||||||||
Net increase (decrease) | 17,837,795 | (45,999,392 | ) | (15,625,211 | ) | (143,274,707 | ) | ||||||||||||||||
Class 4 | |||||||||||||||||||||||
Shares sold | 679,085,383 | 2,013,984,834 | 2,054,625,675 | 4,470,300,552 | |||||||||||||||||||
Shares issued to shareholders in reinvestment of dividends and distributions | 15 | 7,988 | 73 | 25,597 | |||||||||||||||||||
Shares redeemed | (739,314,769 | ) | (2,165,381,475 | ) | (2,169,962,113 | ) | (4,657,847,946 | ) | |||||||||||||||
Net decrease | (60,229,371 | ) | (151,388,653 | ) | (115,336,365 | ) | (187,521,797 | ) | |||||||||||||||
Total Net Decrease | (46,983,718 | ) | (218,987,786 | ) | (164,572,031 | ) | (353,005,826 | ) |
20 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Master LLC Portfolio Information as of September 30, 2013 | Master Government Securities LLC and Master Treasury LLC |
Portfolio Composition
Master Government Securities LLC | | Percent of Net Assets | ||||
US Treasury Obligations | 66 | % | ||||
Repurchase Agreements | 34 | |||||
Total | 100 | % |
Master Treasury LLC | | Percent of Net Assets | ||||
US Treasury Obligations | 100 | % | ||||
Total | 100 | % |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 21 |
Schedule of Investments September 30, 2013 (Unaudited) | Master Government Securities LLC (Percentages shown are based on Net Assets) |
US Treasury Obligations | | Par (000) | | Value | |||||||
US Treasury Bills (a): | |||||||||||
0.02% - 0.05%, 10/03/13 | $ | 25,000 | $ | 24,999,931 | |||||||
0.04% - 0.10%, 10/10/13 | 13,000 | 12,999,699 | |||||||||
0.00% - 0.09%, 10/17/13 | 61,000 | 60,998,626 | |||||||||
0.01% - 0.02%, 11/21/13 | 16,000 | 15,999,628 | |||||||||
0.04% - 0.08%, 11/29/13 | 32,000 | 31,997,067 | |||||||||
0.02%, 12/12/13 | 15,000 | 14,999,493 | |||||||||
0.09%, 1/02/14 | 5,000 | 4,998,792 | |||||||||
0.08%, 1/09/14 | 5,000 | 4,998,843 | |||||||||
0.07% - 0.08%, 1/16/14 | 25,000 | 24,994,975 | |||||||||
0.07%, 1/23/14 | 5,000 | 4,998,834 | |||||||||
0.08%, 2/06/14 | 5,000 | 4,998,656 | |||||||||
0.04%, 3/20/14 | 2,630 | 2,629,500 | |||||||||
0.05%, 3/27/14 | 10,000 | 9,997,651 | |||||||||
US Treasury Notes: | |||||||||||
0.25%, 11/30/13 | 6,000 | 6,000,990 | |||||||||
0.25%, 1/31/14 | 5,000 | 5,001,331 | |||||||||
1.75%, 1/31/14 | 3,372 | 3,391,317 | |||||||||
0.25%, 2/28/14 | 9,000 | 9,003,200 | |||||||||
0.25%, 3/31/14 | 5,000 | 5,004,853 | |||||||||
0.25%, 4/30/14 | 20,950 | 20,963,402 | |||||||||
1.00%, 5/15/14 | 3,600 | 3,619,270 | |||||||||
0.25%, 5/31/14 | 8,000 | 8,007,313 | |||||||||
0.63%, 7/15/14 | 4,900 | 4,918,719 | |||||||||
Total US Treasury Obligations — 65.9% | 285,522,090 | ||||||||||
Repurchase Agreements | |||||||||||
Barclays Capital, Inc., 0.06%, 10/01/13, (Purchased on 9/30/13 to be repurchased at $10,000,017, collateralized by a US Treasury Note, 0.88% due 4/30/17, par and fair values of $10,175,800 and $10,200,099, respectively) | 10,000 | 10,000,000 | |||||||||
Total Value of Barclays Capital, Inc. (collateral value of $10,200,099) | 10,000,000 | ||||||||||
Citigroup Global Markets, Inc., 0.05%, 10/01/13, (Purchased on 9/30/13 to be repurchased at $10,000,014, collateralized by a US Treasury Note, 1.75% due 5/15/23, par and fair values of $10,934,700 and $10,200,025, respectively) | 10,000 | 10,000,000 | |||||||||
Total Value of Citigroup Global Markets, Inc. (collateral value of $10,200,025) | 10,000,000 | ||||||||||
Deutsche Bank Securities, Inc., 0.05%, 10/01/13, (Purchased on 9/30/13 to be repurchased at $8,000,011, collateralized by various US Treasury Securities STRIPS, 0.00% due 8/15/42–2/15/43, par and fair values of $25,392,200 and $8,160,027, respectively) | 8,000 | 8,000,000 | |||||||||
Repurchase Agreements | | Par (000) | | Value | |||||||
Deutsche Bank Securities, Inc., 0.05%, 10/07/13, (Purchased on 8/30/13 to be repurchased at $10,000,528, collateralized by a US Treasury Note and various US Treasury Securities STRIPS, 0.00% - 1.38% due 11/30/15–2/15/36, par and fair values of $20,469,732 and $10,200,063, respectively) (b) | $ | 10,000 | $ | 10,000,000 | |||||||
Total Value of Deutsche Bank Securities, Inc. (collateral value of $18,360,090) | 18,000,000 | ||||||||||
Goldman Sachs & Co., 0.02%, 10/01/13, (Purchased on 9/24/13 to be repurchased at $4,600,018, collateralized by a US Treasury Note, 1.25% due 3/15/14, par and fair values of $4,664,100 and $4,692,024, respectively) | 4,600 | 4,600,000 | |||||||||
Goldman Sachs & Co., 0.03%, 10/07/13, (Purchased on 9/26/13 to be repurchased at $15,000,138, collateralized by a US Treasury Note, 1.25% due 3/15/14, par and fair values of $15,209,000 and $15,300,056, respectively) (b) | 15,000 | 15,000,000 | |||||||||
Total Value of Goldman Sachs & Co. (collateral value of $19,992,080) | 19,600,000 | ||||||||||
HSBC Securities (USA), Inc., 0.02%, 10/02/13, (Purchased on 9/25/13 to be repurchased at $23,000,089, collateralized by various US Treasury Bills, 0.00% due 1/2/14–3/20/14, par and fair values of $23,465,000 and $23,462,617, respectively) | 23,000 | 23,000,000 | |||||||||
Total Value of HSBC Securities (USA), Inc. (collateral value of $23,462,617) | 23,000,000 | ||||||||||
J.P. Morgan Securities LLC, 0.04%, 10/01/13, (Purchased on 9/30/13 to be repurchased at $10,000,011, collateralized by a US Treasury Note, 1.00% due 9/30/19, par and fair values of $10,650,000 and $10,200,676, respectively) | 10,000 | 10,000,000 | |||||||||
Total Value of J.P. Morgan Securities LLC (collateral value of $10,200,676) | 10,000,000 | ||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.05%, 10/01/13, (Purchased on 9/30/13 to be repurchased at $10,000,014, collateralized by a US Treasury Note, 1.00% due 5/31/18, par and fair values of $10,300,900 and $10,200,037, respectively) | 10,000 | 10,000,000 | |||||||||
Total Value of Merrill Lynch, Pierce, Fenner & Smith, Inc. (collateral value of $10,200,037) | 10,000,000 | ||||||||||
Portfolio Abbreviation
22 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Schedule of Investments (concluded) | Master Government Securities LLC (Percentages shown are based on Net Assets) |
Repurchase Agreements | | Par (000) | | Value | ||||||
Mizuho Securities USA, Inc., 0.07%, 10/01/13, (Purchased on 9/30/13 to be repurchased at $10,235,020, collateralized by a US Treasury Note, 1.75% due 5/15/22, par and fair values of $10,962,200 and $10,439,780, respectively) | $ | 10,235 | $ | 10,235,000 | ||||||
Total Value of Mizuho Securities USA, Inc. (collateral value of $10,439,780) | 10,235,000 | |||||||||
Morgan Stanley & Co. LLC, 0.05%, 10/01/13, (Purchased on 9/30/13 to be repurchased at $10,000,014, collateralized by a US Treasury Note, 2.63% due 11/15/20, par and fair values of $9,720,100 and $10,200,028, respectively) | 10,000 | 10,000,000 | ||||||||
Total Value of Morgan Stanley & Co. LLC (collateral value of $10,200,028) | 10,000,000 | |||||||||
RBS Securities, Inc., 0.05%, 10/01/13, (Purchased on 9/30/13 to be repurchased at $4,000,006, collateralized by a US Treasury Note, 1.50% due 8/31/18, par and fair values of $4,050,000 and $4,080,347, respectively) | 4,000 | 4,000,000 | ||||||||
Repurchase Agreements | | Par (000) | | Value | ||||||
RBS Securities, Inc., 0.03%, 10/03/13, (Purchased on 9/26/13 to be repurchased at $10,490,061, collateralized by a US Treasury Note, 1.50% due 8/31/18, par and fair values of $10,625,000 and $10,704,613, respectively) | $ | 10,490 | $ | 10,490,000 | ||||||
Total Value of RBS Securities, Inc. (collateral value of $14,784,960) | 14,490,000 | |||||||||
UBS Securities LLC, 0.04%, 10/01/13, (Purchased on 9/30/13 to be repurchased at $10,000,011, collateralized by a US Treasury Bill and a US Treasury Note, 0.00% - 1.75% due 12/19/13–5/15/22, par and fair values of $10,314,400 and $10,200,030, respectively) | 10,000 | 10,000,000 | ||||||||
Total Value of UBS Securities LLC (collateral value of $10,200,030) | 10,000,000 | |||||||||
Total Repurchase Agreements — 33.5% | 145,325,000 | |||||||||
Total Investments (Cost — $430,847,090*) — 99.4% | 430,847,090 | |||||||||
Other Assets Less Liabilities — 0.6% | 2,588,177 | |||||||||
Net Assets — 100.0% | $ | 433,435,267 |
Notes to Schedule of Investments
* | Cost for federal income tax purposes. | |||||
(a) | Rates shown are discount rates or a range of discount rates paid at the time of purchase. | |||||
(b) | Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand. | |||||
• | Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows: |
• | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Master LLC has the ability to access | ||||
• | 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 LLC’s own assumptions used in determining the fair value of investments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. | ||||
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Master LLC’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 Master LLC’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statement. | ||||
The following table summarizes the Master LLC’s investments categorized in the disclosure hierarchy as of September 30, 2013: |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Investments: | ||||||||||||||||
US Treasury Obligations | — | $ | 285,522,090 | — | $ | 285,522,090 | ||||||||||
Repurchase Agreements | — | 145,325,000 | — | 145,325,000 | ||||||||||||
Total | — | $ | 430,847,090 | — | $ | 430,847,090 |
Certain of the Master LLC’s assets are held at carrying amount, which approximates fair value for financial reporting purposes. As of September 30, 2013, cash of $7,074 is categorized as Level 1 within the disclosure hierarchy.
There were no transfers between levels during the six months ended September 30, 2013.
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 23 |
Schedule of Investments September 30, 2013 (Unaudited) | Master Treasury LLC (Percentages shown are based on Net Assets) |
US Treasury Obligations | | Par (000) | | Value | ||||||
US Treasury Bills (a): | ||||||||||
0.02% - 0.06%, 10/03/13 | $ | 194,000 | $ | 193,999,412 | ||||||
0.00% - 0.10%, 10/10/13 | 543,302 | 543,299,434 | ||||||||
0.00% - 0.09%, 10/17/13 | 528,818 | 528,812,641 | ||||||||
0.01% - 0.05%, 11/21/13 | 111,690 | 111,686,471 | ||||||||
0.04% - 0.08%, 11/29/13 | 128,750 | 128,741,167 | ||||||||
0.01% - 0.08%, 12/05/13 | 46,000 | 45,996,462 | ||||||||
0.02%, 12/12/13 | 73,280 | 73,277,051 | ||||||||
0.02%, 12/19/13 | 63,000 | 62,997,900 | ||||||||
0.02%, 12/26/13 | 50,000 | 49,996,979 | ||||||||
0.01% - 0.09%, 1/02/14 | 56,250 | 56,242,069 | ||||||||
0.08%, 1/09/14 | 20,000 | 19,995,371 | ||||||||
0.07% - 0.08%, 1/16/14 | 15,000 | 14,996,775 | ||||||||
0.07%, 1/23/14 | 45,000 | 44,989,557 | ||||||||
0.07%, 1/30/14 | 25,000 | 24,994,493 | ||||||||
0.08%, 2/06/14 | 25,000 | 24,993,281 | ||||||||
0.06%, 3/13/14 | 41,000 | 40,989,146 | ||||||||
US Treasury Obligations | | Par (000) | | Value | ||||||
US Treasury Bills (a) (concluded): | ||||||||||
0.03%, 3/20/14 | $ | 25,000 | $ | 24,996,734 | ||||||
0.05%, 3/27/14 | 25,000 | 24,994,128 | ||||||||
US Treasury Notes: | ||||||||||
0.25%, 11/30/13 | 38,195 | 38,207,945 | ||||||||
0.25%, 1/31/14 | 16,000 | 16,004,258 | ||||||||
1.75%, 1/31/14 | 62,000 | 62,355,599 | ||||||||
0.25%, 2/28/14 | 24,000 | 24,006,958 | ||||||||
0.25%, 4/30/14 | 38,000 | 38,029,127 | ||||||||
1.00%, 5/15/14 | 14,200 | 14,276,011 | ||||||||
0.25%, 5/31/14 | 10,000 | 10,009,141 | ||||||||
0.63%, 7/15/14 | 10,900 | 10,939,294 | ||||||||
Total Investments (Cost — $2,229,827,404*) — 109.5% | 2,229,827,404 | |||||||||
Liabilities in Excess of Other Assets — (9.5%) | (192,549,451 | ) | ||||||||
Net Assets — 100.0% | $ | 2,037,277,953 |
Notes to Schedule of Investments
* | Cost for federal income tax purposes. | |||||
(a) | Rates shown are discount rates or a range of discount rates paid at the time of purchase. | |||||
• | Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques 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 or liabilities that the Master LLC has the ability to access | ||||
• | 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 Trust’s own assumptions used in determining the fair value of investments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. | ||||
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Master LLC’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 Master LLC’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements. | ||||
The following table summarizes the Master LLC’s investments categorized in the disclosure hierarchy as of September 30, 2013: |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Investments: | ||||||||||||||||
US Treasury Obligations | — | $ | 2,229,827,404 | — | $ | 2,229,827,404 |
Certain of the Master LLC’s assets are held at carrying amount, which approximates fair value for financial statement purposes. As of September 30, 2013, cash of $299 is categorized as Level 1 within the disclosure hierarchy.
There were no transfers between levels during the six months ended September 30, 2013.
24 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Statements of Assets and Liabilities |
September 30, 2013 (Unaudited) | Master Government Securities LLC | Master Treasury LLC | |||||||||
Assets | |||||||||||
Investments at value — unaffiliated1 | $ | 285,522,090 | $ | 2,229,827,404 | |||||||
Repurchase agreements, at value — unaffiliated2 | 145,325,000 | — | |||||||||
Cash | 7,074 | 299 | |||||||||
Contributions receivable from investors | 2,562,247 | 1,210,622 | |||||||||
Interest receivable | 68,070 | 339,172 | |||||||||
Prepaid expenses | 3,397 | 9,386 | |||||||||
Total assets | 433,487,878 | 2,231,386,883 | |||||||||
Liabilities | |||||||||||
Other affiliates payable | 3,056 | 11,241 | |||||||||
Investments purchased payable | — | 193,999,131 | |||||||||
Directors’ fees payable | 651 | 20,110 | |||||||||
Investment advisory fees payable | — | 2,943 | |||||||||
Other accrued expenses payable | 48,904 | 75,505 | |||||||||
Total liabilities | 52,611 | 194,108,930 | |||||||||
Net Assets | $ | 433,435,267 | $2,037,277,953 | ||||||||
Net Assets Consist of | |||||||||||
Investors’ capital | $ | 433,435,267 | $ | 2,037,277,953 | |||||||
1 Investments at cost — unaffiliated | $ | 285,522,090 | $ | 2,229,827,404 | |||||||
2 Repurchase agreements at cost — unaffiliated | $ | 145,325,000 | — |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 25 |
Statements of Operations |
Six Months Ended September 30, 2013 (Unaudited) | Master Government Securities LLC | Master Treasury LLC | |||||||||
Investment Income | |||||||||||
Interest | $ | 211,144 | $ | 742,101 | |||||||
Expenses | |||||||||||
Investment advisory | 659,986 | 1,829,501 | |||||||||
Professional | 25,810 | 31,131 | |||||||||
Accounting services | 23,431 | 81,330 | |||||||||
Custodian | 23,014 | 30,708 | |||||||||
Directors | 10,610 | 44,609 | |||||||||
Printing | 1,059 | 567 | |||||||||
Miscellaneous | 8,251 | 9,554 | |||||||||
Total expenses | 752,161 | 2,027,400 | |||||||||
Less fees waived by Manager | (631,077 | ) | (1,598,310 | ) | |||||||
Total expenses after fees waived | 121,084 | 429,090 | |||||||||
Net investment income | 90,060 | 313,011 | |||||||||
Realized Gain | |||||||||||
Net realized gain from investments | 11,677 | 76,685 | |||||||||
Net Increase in Net Assets Resulting from Operations | $ | 101,737 | $ | 389,696 |
26 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Statements of Changes in Net Assets |
Master Government Securities LLC | | | Master Treasury LLC | ||||||||||||||||||||
Increase (Decrease) in Net Assets: | Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, 2013 | Six Months Ended September 30, 2013 (Unaudited) | Year Ended March 31, 2013 | |||||||||||||||||||
Operations | |||||||||||||||||||||||
Net investment income | $ | 90,060 | $ | 378,509 | $ | 313,011 | $ | 926,882 | |||||||||||||||
Net realized gain | 11,677 | 46,689 | 76,685 | 116,489 | |||||||||||||||||||
Net increase in net assets resulting from operations | 101,737 | 425,198 | 389,696 | 1,043,371 | |||||||||||||||||||
Capital Transactions | |||||||||||||||||||||||
Proceeds from contributions | 1,825,611,529 | 4,413,995,582 | 4,711,417,023 | 10,935,669,633 | |||||||||||||||||||
Value of withdrawals | (1,893,776,925 | ) | (4,656,068,634 | ) | (5,162,839,190 | ) | (11,594,978,915 | ) | |||||||||||||||
Net decrease in net assets derived from capital transactions | (68,165,396 | ) | (242,073,052 | ) | (451,422,167 | ) | (659,309,282 | ) | |||||||||||||||
Net Assets | |||||||||||||||||||||||
Total decrease in net assets | (68,063,659 | ) | (241,647,854 | ) | (451,032,471 | ) | (658,265,911 | ) | |||||||||||||||
Beginning of period | 501,498,926 | 743,146,780 | 2,488,310,424 | 3,146,576,335 | |||||||||||||||||||
End of period | $ | 433,435,267 | $ | 501,498,926 | $ | 2,037,277,953 | $ | 2,488,310,424 |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 27 |
Financial Highlights | Master Government Securities LLC |
Six Months Ended September 30, 2013 (Unaudited) | |||||||||||||||||||||||||||||
Year Ended March 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||||
Total Investment Return | |||||||||||||||||||||||||||||
Total investment return | 0.02% | 1 | 0.06% | 0.04% | 0.13% | 0.18% | 1.05% | ||||||||||||||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||||||
Total expenses | 0.28% | 2 | 0.27% | 0.27% | 0.27% | 0.26% | 0.23% | ||||||||||||||||||||||
Total expenses after fees waived and paid indirectly | 0.04% | 2 | 0.08% | 0.03% | 0.06% | 0.07% | 0.20% | ||||||||||||||||||||||
Net investment income | 0.03% | 2 | 0.06% | 0.04% | 0.13% | 0.14% | 1.03% | ||||||||||||||||||||||
Supplemental Data | |||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 433,435 | $ | 501,499 | $ | 743,147 | $ | 496,689 | $ | 680,465 | $ | 1,170,448 |
Six Months Ended September 30, 2013 (Unaudited) | |||||||||||||||||||||||||||||
Year Ended March 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||||||
Total Investment Return | |||||||||||||||||||||||||||||
Total investment return | 0.02% | 1 | 0.03% | 0.03% | 0.08% | 0.10% | 0.98% | ||||||||||||||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||||||
Total expenses | 0.18% | 2 | 0.18% | 0.17% | 0.18% | 0.17% | 0.16% | ||||||||||||||||||||||
Total expenses after fees waived and paid indirectly | 0.04% | 2 | 0.07% | 0.02% | 0.09% | 0.14% | 0.16% | ||||||||||||||||||||||
Net investment income | 0.03% | 2 | 0.03% | 0.03% | 0.06% | 0.08% | 0.81% | ||||||||||||||||||||||
Supplemental Data | |||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 2,037,278 | $ | 2,488,310 | $ | 3,146,576 | $ | 2,626,224 | $ | 2,856,229 | $ | 5,718,164 | |||||||||||||||||
1 | Aggregate total investment return. |
2 | Annualized. |
28 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Notes to Financial Statements (Unaudited) | Master Government Securities LLC and Master Treasury LLC |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 29 |
Notes to Financial Statements (concluded) | Master Government Securities LLC and Master Treasury LLC |
Average Daily Net Assets | Investment Advisory Fee | |||||
First $500 Million | 0.250 | % | ||||
$500 Million – $1 Billion | 0.175 | % | ||||
Greater than $1 Billion | 0.125 | % |
Reimbursement to Manager | ||||||
Master Government Securities LLC | $ | 3,803 | ||||
Master Treasury LLC | $ | 14,487 |
30 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Disclosure of Investment Advisory Agreements |
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 31 |
Disclosure of Investment Advisory Agreements (continued) |
funds; (v) services provided to each Master LLC and Fund by BlackRock affiliates; and (vi) BlackRock’s oversight of relationships with third party service providers.
1 | Lipper ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. |
32 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Disclosure of Investment Advisory Agreements (continued) |
other services (in addition to any such services provided to the Master LLCs and the Funds by third parties) and officers and other personnel as are necessary for the operations of the Master LLCs and the Funds. In particular, BlackRock and its affiliates provide the Master LLCs and the Funds with the following administrative services, including, among others: (i) preparing disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) assisting with daily accounting and pricing; (iii) overseeing and coordinating the activities of other service providers; (iv) organizing Board meetings and preparing the materials for such Board meetings; (v) providing legal and compliance support; (vi) furnishing analytical and other support to assist the Boards in their consideration of strategic issues such as the merger or consolidation of certain open-end funds; and (vii) performing other administrative functions necessary for the operation of the Master LLCs and the Funds, such as tax reporting, fulfilling regulatory filing requirements and call center services. The Boards reviewed the structure and duties of BlackRock’s fund administration, shareholder services, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 33 |
Disclosure of Investment Advisory Agreements (continued) | |
34 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Disclosure of Investment Advisory Agreements (concluded) |
quality of, its operations. The Boards also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 35 |
Officers and Directors |
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
Ian A. MacKinnon, 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
Richard Hoerner, CFA, Vice President
Brendan Kyne, Vice President
Christopher Stavrakos, CFA, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer
and Anti-Money Laundering Officer
Benjamin Archibald, Secretary
and Administrator
BlackRock Advisors, LLC
Wilmington, DE 19809
State Street Bank and Trust Company
Boston, MA 02110
Financial Data Services, Inc.
Jacksonville, FL 32246
BlackRock Investments, LLC
New York, NY 10022
Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116
Sidley Austin LLP
New York, NY 10019
100 Bellevue Parkway
Wilmington, DE 19809
36 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
Additional Information |
General Information
SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 | 37 |
Additional Information (concluded) |
BlackRock Privacy Principles
38 | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2013 |
![]() |
BBIFGOVTR-9/13-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
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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.
BBIF Government Securities Fund and Master Government Securities LLC
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BBIF Government Securities Fund and Master Government Securities LLC
Date: December 3, 2013
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
BBIF Government Securities Fund and Master Government Securities LLC
Date: December 3, 2013
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BBIF Government Securities Fund and Master Government Securities LLC
Date: December 3, 2013
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