UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21198 and 811-21301
Name of Fund: BBIF Tax-Exempt Fund and Master Tax-Exempt LLC
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BBIF Tax-
Exempt Fund and Master Tax-Exempt LLC, 40 East 52nd Street, New York, NY 10022
Registrant’s telephone number, including area code: (800) 626-1960
Date of fiscal year end: 03/31/2011
Date of reporting period: 09/30/2010
Item 1 – Report to Stockholders
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Semi-Annual Report (Unaudited)
BBIF Tax-Exempt Fund
September 30, 2010
Not FDIC Insured • No Bank Guarantee • May Lose Value
Table of Contents | |
Page | |
Dear Shareholder | 3 |
Semi-Annual Report: | |
Fund Information | 4 |
Disclosure of Expenses | 4 |
Fund Financial Statements: | |
Statement of Assets and Liabilities | 5 |
Statement of Operations | 5 |
Statements of Changes in Net Assets | 6 |
Fund Financial Highlights | 7 |
Fund Notes to Financial Statements | 11 |
Portfolio Information | 13 |
Master LLC Financial Statements: | |
Schedule of Investments | 14 |
Statement of Assets and Liabilities | 24 |
Statement of Operations | 24 |
Statements of Changes in Net Assets | 25 |
Master LLC Financial Highlights | 25 |
Master LLC Notes to Financial Statements | 26 |
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement | 28 |
Officers and Directors | 32 |
Additional Information | 33 |
2 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Dear Shareholder
The global economic recovery that began in 2009 has continued on its choppy course this year, delivering mixed economic data and gradual if uneven
improvement of investor sentiment. The risks of a double-dip recession continue to recede, but the economy remains mired in a slow-growth environ-
ment. The major short-term ambiguities that kept market participants on the fence — the US financial reform bill, political uncertainty, European bank
stress test results, and European sovereign funding — have all abated to some degree, allowing market conditions to regain some degree of normalcy
and demonstrate growth. In the United States, the National Bureau of Economic Research declared that the “Great Recession” ended in June 2009.
Spanning December 2007 to June 2009, this marked the longest reported recession since the Great Depression. Structural problems of ongoing
deleveraging and weak spending among businesses and households weigh heavily on the pace of economic growth. The Federal Reserve Board has
made it clear that additional policy action will be needed to combat the slow pace of growth, high unemployment, and deflation risks.
The high levels of volatility experienced in global equity markets throughout 2009 continued into 2010 as uncertainty driven by mixed economic data
and lingering credit issues caused stocks to trade in both directions, but by the end of the first quarter, most markets had managed to post gains. The
second quarter, in contrast, brought higher levels of volatility and a “flight to quality” as investor sentiment was dominated by fears of a double-dip reces-
sion. Global equity markets saw negative quarterly returns — and for many markets, the first significant downturn since the bull market began in March
2009. As the end of the 12-month period drew near, economic data turned less negative and strong corporate earnings reports became increasingly
consistent. These factors along with the anticipation of further quantitative easing drove equity markets higher in the third quarter, with most markets
recapturing their second quarter losses and moving into positive territory year-to-date. International equities turned positive, posting gains on both a
six- and 12-month basis. In the US, both large and small cap equities posted robust gains for the 12-month period; however large cap stocks remain
negative on a six-month basis while small caps turned positive.
In fixed income markets, yields fluctuated but generally declined over the past 12 months amid heightened uncertainty. Weak economic data, lingering
credit problems and, near the end of the period, the expectation of additional quantitative easing drove interest rates lower and bond prices higher.
Treasuries rallied over the period, modestly outperforming the credit spread sectors of the market. Corporate credit spreads benefited from the low inter-
est rate environment and high yield fixed income became increasingly attractive due to declining default rates and better-than-expected results on
European bank stress tests. Tax-exempt municipal bonds performed well over the 12-month period, driven primarily by technical factors including favor-
able supply-and-demand dynamics.
Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates
remained low. Yields on money market securities remain near all-time lows.
Against this backdrop, the major market averages posted the following returns: | ||
Total Returns as of September 30, 2010 | 6-month | 12-month |
US large cap equities (S&P 500 Index) | (1.42)% | 10.16% |
US small cap equities (Russell 2000 Index) | 0.25 | 13.35 |
International equities (MSCI Europe, Australasia, Far East Index) | 0.20 | 3.27 |
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index) | 0.07 | 0.13 |
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index) | 13.20 | 10.23 |
US investment grade bonds (Barclays Capital US Aggregate Bond Index) | 6.05 | 8.16 |
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index) | 5.51 | 5.81 |
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index) | 6.55 | 18.24 |
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.
As global economic conditions continue to improve, investors across the world continue to face uncertainty about the future of economic growth. Through
periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and
investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder® maga-
zine, as well as its quarterly companion newsletter, Shareholder Perspectives. We thank you for entrusting BlackRock with your investments, and we look
forward to your continued partnership in the months and years ahead.
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THIS PAGE NOT PART OF YOUR FUND REPORT
3
Fund Information
Current Seven-Day Yields
7-Day | 7-Day | |
As of September 30, 2010 | SEC Yields | Yields |
Class 1 | 0.00% | 0.00% |
Class 2 | 0.04 | 0.04 |
Class 3 | 0.04 | 0.04 |
Class 4 | 0.04 | 0.04 |
The 7-Day SEC Yields may differ from the 7-Day Yields shown above due to the fact
that the 7-Day SEC Yields exclude distributed capital gains.
Past performance is not indicative of future results.
Disclosure of Expenses
Shareholders of this Fund may incur the following charges: (a) expenses
related to transactions, including sales charges, redemption fees and
exchange fees, and (b) operating expenses, including administration
fees, distribution and service fees including 12b-1 fees and other Fund
expenses. The expense example below (which is based on a hypothetical
investment of $1,000 invested on April 1, 2010 and held through Sept-
ember 30, 2010) is intended to assist shareholders both in calculating
expenses based on an investment in the Fund and in comparing
these expenses with similar costs of investing in other mutual funds.
The table below provides information about actual account values and
actual expenses. In order to estimate the expenses a shareholder paid
during the period covered by this report, shareholders can divide their
account value by $1,000 and then multiply the result by the number
corresponding to their share class under the heading entitled “Expenses
Paid During the Period.”
The table also provides information about hypothetical account values
and hypothetical expenses based on the Fund’s actual expense ratio
and an assumed rate of return of 5% per year before expenses. In order
to assist shareholders in comparing the ongoing expenses of investing in
this Fund and other funds, compare the 5% hypothetical example with
the 5% hypothetical examples that appear in other funds’ shareholder
reports.
The expenses shown in the table are intended to highlight shareholders’
ongoing costs only and do not reflect any transactional expenses, such
as sales charges, redemption fees or exchange fees. Therefore, the
hypothetical example is useful in comparing ongoing expenses only, and
will not help shareholders determine the relative total expenses of own-
ing different funds. If these transactional expenses were included, share-
holder expenses would have been higher.
Actual | Hypothetical2 | ||||||
Ending | Ending | ||||||
Beginning | Account Value | Beginning | Account Value | ||||
Account Value | September 30, | Expenses Paid | Account Value | September 30, | Expenses Paid | Annualized | |
April 1, 2010 | 2010 | During the Period1 | April 1, 2010 | 2010 | During the Period1 | Expense Ratio | |
Class 1 | $1,000.00 | $1,000.00 | $2.26 | $1,000.00 | $1,022.84 | $2.28 | 0.45% |
Class 2 | $1,000.00 | $1,000.20 | $2.06 | $1,000.00 | $1,023.04 | $2.08 | 0.41% |
Class 3 | $1,000.00 | $1,000.20 | $2.06 | $1,000.00 | $1,023.04 | $2.08 | 0.41% |
Class 4 | $1,000.00 | $1,000.20 | $2.06 | $1,000.00 | $1,023.04 | $2.08 | 0.41% |
1 For each class of the Fund, expenses are equal to the 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 Fund is a feeder fund, the expense table example reflects the expenses of both the feeder fund and the Master LLC
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.
4 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Statement of Assets and Liabilities
September 30, 2010 (Unaudited) | BBIF Tax-Exempt Fund | |
Assets | ||
Investments at value — Master Tax-Exempt LLC (the “Master LLC”) | ||
(cost — $856,506,671) | $ 856,506,671 | |
Withdrawals receivable from the Master LLC | 27 | |
Prepaid expenses | 133,669 | |
Other assets | 17,469 | |
Total assets | 856,657,836 | |
Liabilities | ||
Administration fees payable | 78,722 | |
Transfer agent payable | 31,311 | |
Officer's fees payable | 208 | |
Income dividends payable | 148 | |
Capital shares redeemed payable | 27 | |
Total liabilities | 110,416 | |
Net Assets | $ 856,547,420 | |
Net Assets Consist of | ||
Paid-in capital | 856,402,204 | |
Undistributed net investment income | 115,158 | |
Accumulated net realized gain allocated from the Master LLC | 30,058 | |
Net Assets | $ 856,547,420 | |
Net Asset Value | ||
Class 1 — Based on net assets of $23,533,288 and | ||
23,529,006 shares outstanding, unlimited number of | ||
shares authorized, par value $0.10 per share | $ 1.00 | |
Class 2 — Based on net assets of $138,302,412 and | ||
138,279,101 shares outstanding, unlimited number of | ||
shares authorized, par value $0.10 per share | $ 1.00 | |
Class 3 — Based on net assets of $360,443,569 and | ||
360,370,206 shares outstanding, unlimited number of | ||
shares authorized, par value $0.10 per share | $ 1.00 | |
Class 4 — Based on net assets of $334,268,151 and | ||
334,188,761 shares outstanding, unlimited number of | ||
shares authorized, par value $0.10 per share | $ 1.00 |
Statement of Operations
Six Months Ended September 30, 2010 (Unaudited) | BBIF Tax-Exempt Fund |
Investment Income | |
Interest | $ 48 |
Net investment income allocated from the Master LLC: | |
Interest | 1,989,853 |
Expenses | (720,432) |
Total income | 1,269,469 |
Expenses | |
Administration | 1,113,814 |
Service and distribution — Class 1 | 139,332 |
Service and distribution — Class 2 | 503,521 |
Service and distribution — Class 3 | 710,988 |
Service and distribution — Class 4 | 599,955 |
Registration | 305,662 |
Printing | 16,492 |
Professional | 11,095 |
Transfer agent — Class 1 | 7,466 |
Transfer agent — Class 2 | 7,670 |
Transfer agent — Class 3 | 8,397 |
Transfer agent — Class 4 | 8,935 |
Officer | 206 |
Miscellaneous | 8,195 |
Total expenses | 3,441,728 |
Less fees waived by administrator | (364,277) |
Less service and distribution fees waived — Class 1 | (139,315) |
Less service and distribution fees waived — Class 2 | (503,521) |
Less service and distribution fees waived — Class 3 | (710,988) |
Less service and distribution fees waived — Class 4 | (599,955) |
Transfer agent fees reimbursed — Class 1 | (1,811) |
Transfer agent fees reimbursed — Class 2 | (7,654) |
Transfer agent fees reimbursed — Class 3 | (8,313) |
Transfer agent fees reimbursed — Class 4 | (8,866) |
Total expenses after fees waived and reimbursed | 1,097,028 |
Net investment income | 172,441 |
Realized Gain Allocated from the Master LLC | |
Net realized gain from investments | 30,058 |
Net Increase in Net Assets Resulting from Operations | $ 202,499 |
See Notes to Financial Statements.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
5
Statements of Changes in Net Assets | BBIF Tax-Exempt Fund | |
Six Months | ||
Ended | Year Ended | |
September 30, 2010 | March 31, | |
Increase (Decrease) in Net Assets: | (Unaudited) | 2010 |
Operations | ||
Net investment income | $ 172,441 | $ 738,142 |
Net realized gain | 30,058 | 26,743 |
Net increase in net assets resulting from operations | 202,499 | 764,885 |
Dividends to Shareholders From | ||
Net investment income: | ||
Class 1 | — | (8,713) |
Class 2 | (30,080) | (62,215) |
Class 3 | (77,110) | (382,857) |
Class 4 | (65,251) | (284,357) |
Decrease in net assets resulting from dividends to shareholders | (172,441) | (738,142) |
Capital Share Transactions | ||
Net decrease in net assets derived from capital share transactions | (32,528,152) | (191,466,776) |
Net Assets | ||
Total decrease in net assets | (32,498,094) | (191,440,033) |
Beginning of period | 889,045,514 | 1,080,485,547 |
End of period | $ 856,547,420 | $ 889,045,514 |
Undistributed net investment income | $ 115,158 | $ 115,158 |
See Notes to Financial Statements.
6 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Financial Highlights | BBIF Tax-Exempt Fund | ||||||||
Class 1 | |||||||||
Six Months Ended | |||||||||
September 30, | |||||||||
2010 | Year Ended March 31, | ||||||||
(Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | ||||
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 | — | 0.0003 | 0.0051 | 0.0188 | 0.0208 | 0.0127 | |||
Net realized gain (loss) | — | 0.0000 | 0.0000 | 0.0001 | 0.0001 | (0.0000) | |||
Net increase from investment operations | — | 0.0003 | 0.0051 | 0.0189 | 0.0209 | 0.0127 | |||
Dividends from net investment income | — | (0.0003) | (0.0051) | (0.0188) | (0.0208) | (0.0127) | |||
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | |||
Total Investment Return1 | |||||||||
Total investment return | 0.00%2 | 0.03% | 0.51% | 1.90% | 2.09% | 1.28% | |||
Ratios to Average Net Assets3 | |||||||||
Total expenses | 1.52%4 | 1.52% | 1.55% | 1.56% | 1.49% | 1.51% | |||
Total expenses after fees waived and reimbursed | 0.45%4 | 0.54% | 1.30% | 1.56% | 1.49% | 1.51% | |||
Net investment income | 0.00%4 | 0.03% | 0.46% | 1.89% | 2.10% | 1.29% | |||
Supplemental Data | |||||||||
Net assets, end of period (000) | $ 23,533 | $ 33,099 | $ 35,937 | $ 42,837 | $ 50,188 | $ 38,770 |
1 Where applicable, total investment returns include the reinvestment of dividends and distributions.
2 Aggregate total investment return.
3 Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income.
4 Annualized.
See Notes to Financial Statements.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
7
Financial Highlights (continued) | BBIF Tax-Exempt Fund | ||||||||
Class 2 | |||||||||
Six Months Ended | |||||||||
September 30, | |||||||||
2010 | Year Ended March 31, | ||||||||
(Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | ||||
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 | 0.0002 | 0.0004 | 0.0093 | 0.0254 | 0.0266 | 0.0186 | |||
Net realized gain (loss) | — | 0.0000 | 0.0000 | 0.0001 | 0.0001 | (0.0000) | |||
Net increase from investment operations | 0.0002 | 0.0004 | 0.0093 | 0.0255 | 0.0267 | 0.0186 | |||
Dividends from net investment income | (0.0002) | (0.0004) | (0.0093) | (0.0254) | (0.0266) | (0.0186) | |||
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | |||
Total Investment Return1 | |||||||||
Total investment return | 0.02%2 | 0.04% | 0.93% | 2.57% | 2.68% | 1.88% | |||
Ratios to Average Net Assets3 | |||||||||
Total expenses | 1.17%4 | 1.17% | 1.22% | 1.23% | 1.19% | 1.19% | |||
Total expenses after fees waived and reimbursed | 0.41%4 | 0.53% | 0.90% | 0.91% | 0.91% | 0.92% | |||
Net investment income | 0.04%4 | 0.04% | 0.94% | 2.53% | 2.67% | 1.85% | |||
Supplemental Data | |||||||||
Net assets, end of period (000) | $ 138,302 | $ 152,771 | $ 168,665 | $ 190,316 | $ 157,909 | $ 156,442 |
1 Where applicable, total investment returns include the reinvestment of dividends and distributions.
2 Aggregate total investment return.
3 Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income.
4 Annualized.
See Notes to Financial Statements.
8 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Financial Highlights (continued) | BBIF Tax-Exempt Fund | ||||||||
Class 3 | |||||||||
Six Months Ended | |||||||||
September 30, | |||||||||
2010 | Year Ended March 31, | ||||||||
(Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | ||||
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 | 0.0002 | 0.0008 | 0.0125 | 0.0289 | 0.0302 | 0.0222 | |||
Net realized gain (loss) | — | 0.0000 | 0.0000 | 0.0001 | 0.0001 | (0.0000) | |||
Net increase from investment operations | 0.0002 | 0.0008 | 0.0125 | 0.0290 | 0.0303 | 0.0222 | |||
Dividends from net investment income | (0.0002) | (0.0008) | (0.0125) | (0.0289) | (0.0302) | (0.0222) | |||
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | |||
Total Investment Return1 | |||||||||
Total investment return | 0.02%2 | 0.08% | 1.26% | 2.92% | 3.05% | 2.24% | |||
Ratios to Average Net Assets3 | |||||||||
Total expenses | 0.86%4 | 0.86% | 0.92% | 0.92% | 0.89% | 0.89% | |||
Total expenses after fees waived and reimbursed | 0.41%4 | 0.48% | 0.58% | 0.57% | 0.55% | 0.56% | |||
Net investment income | 0.04%4 | 0.09% | 1.24% | 2.86% | 3.03% | 2.23% | |||
Supplemental Data | |||||||||
Net assets, end of period (000) | $ 360,444 | $ 405,215 | $ 408,247 | $ 479,041 | $ 394,877 | $ 408,672 |
1 Where applicable, total investment returns include the reinvestment of dividends and distributions.
2 Aggregate total investment return.
3 Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income.
4 Annualized.
See Notes to Financial Statements.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
9
Financial Highlights (concluded) | BBIF Tax-Exempt Fund | ||||||||
Class 4 | |||||||||
Six Months Ended | |||||||||
September 30, | |||||||||
2010 | Year Ended March 31, | ||||||||
(Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | ||||
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 | 0.0002 | 0.0008 | 0.0125 | 0.0289 | 0.0302 | 0.0222 | |||
Net realized gain (loss) | — | 0.0000 | 0.0000 | 0.0001 | 0.0001 | (0.0000) | |||
Net increase from investment operations | 0.0002 | 0.0008 | 0.0125 | 0.0290 | 0.0303 | 0.0222 | |||
Dividends from net investment income | (0.0002) | (0.0008) | (0.0125) | (0.0289) | (0.0302) | (0.0222) | |||
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | |||
Total Investment Return1 | |||||||||
Total investment return | 0.02%2 | 0.08% | 1.26% | 2.92% | 3.05 | 2.24% | |||
Ratios to Average Net Assets3 | |||||||||
Total expenses | 0.86%4 | 0.86% | 0.91% | 0.92% | 0.89% | 0.89% | |||
Total expenses after fees waived and reimbursed | 0.41%4 | 0.48% | 0.58% | 0.57% | 0.56% | 0.56% | |||
Net investment income | 0.04%4 | 0.09% | 1.22% | 2.85% | 3.05% | 2.28% | |||
Supplemental Data | |||||||||
Net assets, end of period (000) | $ 334,268 | $ 297,960 | $ 395,636 | $ 393,396 | $ 279,895 | $ 156,657 |
1 Where applicable, total investment returns include the reinvestment of dividends and distributions.
2 Aggregate total investment return.
3 Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income.
4 Annualized.
See Notes to Financial Statements.
10 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Notes to Financial Statements (Unaudited) BBIF Tax-Exempt Fund
1. Significant Accounting Policies:
BBIF Tax-Exempt Fund (formerly WCMA Tax-Exempt Fund) (the “Fund”) is
registered under the Investment Company Act of 1940, as amended (the
“1940 Act”), as a no-load, diversified, open-end management invest-
ment company. The Fund is organized as a Massachusetts business
trust. The Fund seeks to achieve its investment objective by investing all
of its assets in Master Tax-Exempt LLC (the “Master LLC”), which has the
same investment objective and strategies as the Fund. The Master LLC is
organized as a Delaware limited liability company. The value of the
Fund's investment in the Master LLC reflects the Fund's proportionate
interest in the net assets of the Master LLC. The percentage of the
Master LLC owned by the Fund at September 30, 2010 was 19%. The
performance of the Fund is directly affected by the performance of the
Master LLC. The financial statements of the Master LLC, including the
Schedule of Investments, are included elsewhere in this report and
should be read in conjunction with the Fund's financial statements. The
Board of Trustees of the Fund and the Board of Directors of the Master
LLC are referred to throughout this report as the “Board of Directors” or
the “Board”. 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 esti-
mates and assumptions that affect the reported amounts and disclo-
sures in the financial statements. Actual results could differ from those
estimates. The Fund is divided into four classes, designated Class 1,
Class 2, Class 3 and Class 4. Each Class 1, Class 2, Class 3 and Class
4 Share represents an interest in the same assets of the Fund and has
identical voting, dividend, liquidation and other rights and the same
terms and conditions, except that each class bears certain expenses
related to the service and distribution of such shares and the additional
incremental transfer agency costs resulting from the conversion of shares
and has exclusive voting rights with respect to matters relating to such
shareholder services and distribution expenditures.
The following is a summary of significant accounting policies followed by
the Fund:
Valuation: The Fund’s policy is to fair value its financial instruments at
market value. The Fund records its investment in the Master LLC at fair
value based on the Fund’s proportionate interest in the net assets of the
Master LLC. Valuation of securities held by the Master LLC, including cat-
egorization of fair value measurements, is discussed in Note 1 of the
Master LLC’s Notes to Financial Statements, which are included else-
where in this report. The Fund seeks to maintain the net asset value per
share at $1.00, although there is no assurance that it will be able to do
so on a continuing basis.
Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions in the Master LLC are accounted for
on a trade date basis. The Fund records daily its proportionate share of
the Master LLC’s income, expenses and realized gains and losses. In
addition, the Fund accrues its own income and expenses. Income and
realized gains and losses on investments are allocated daily to each
class based on its relative net assets.
Dividends and Distributions: Dividends from net investment income are
declared and reinvested daily. Distributions of realized gains, if any, are
recorded on the ex-dividend date. 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 regu-
lated investment companies and to distribute substantially all of its tax-
able 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 limita-
tions on the Fund's US federal tax returns remains open for each of the
four years ended March 31, 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. There are no uncertain tax posi-
tions 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 arrange-
ment 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. 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 has 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
a monthly fee at an annual rate of 0.25% of the average daily value of
the Fund's net assets. The Fund does not pay an investment advisory fee
or investment management fee.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
11
Notes to Financial Statements (concluded) BBIF Tax-Exempt Fund
The Fund has entered into a Distribution Agreement and a Distribution
and Shareholder Servicing Plan (the “Distribution Plan”) with BlackRock
Investments, LLC (”BRIL“), an affiliate of BlackRock. Pursuant to the
Distribution Plans 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 | Distribution | |
Fee | 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% |
The ongoing service and/or distribution fees compensate BRIL for pro-
viding shareholder servicing and/or distribution related services to
shareholders. The Fund has entered into a contractual arrangement with
the Administrator and BRIL to waive and/or reimburse a portion of the
Fund’s direct fees and expenses to ensure that the net expenses for the
Fund’s Class 2 Shares are 0.35% higher than those of BIF Tax-Exempt
Fund, and the net expenses for the Fund’s Class 3 and Class 4 Shares
are equal to those of BIF Tax-Exempt Fund. The fee/expense waiver
includes service and distribution fees. The Administrator and BRIL have
agreed not to reduce or discontinue this contractual waiver or reimburse-
ment until August 1, 2011 unless approved by the Board, including a
majority of the non-interested Directors. These amounts are included in
service and distribution fees waived in the Statement of Operations.
In addition to the contractual arrangement described above, the
Administrator and BRIL voluntarily agreed to waive a portion of their
respective administration and service and distribution fees and/or
reimburse operating expenses to enable each class of the Fund to
maintain minimum daily levels of net investment income dividend. These
amounts are included in fees waived by administrator, service and distri-
bution fees waived — class specific and transfer agent fees reimbursed
— class specific in the Statement of Operations. The Administrator and
BRIL may discontinue the waiver or reimbursement at any time.
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 Share Transactions:
The number of shares sold, reinvested and redeemed correspond to the
net proceeds from the sale of shares, reinvestment of dividends and dis-
tributions and cost of shares redeemed, respectively, since shares are
sold and redeemed at $1.00 per share.
Transactions in capital shares for each class were as follows:
Six Months | ||
Ended | Year | |
September 30, | Ended | |
2010 | March 31, | |
(Unaudited) | 2010 | |
Class 1 | ||
Shares sold | 207,521,587 | 626,468,528 |
Shares issued to shareholders in | ||
reinvestment of dividends | — | 8,713 |
Total issued | 207,521,587 | 626,477,241 |
Shares redeemed | (217,088,000) | (629,309,954) |
Net decrease | (9,566,413) | (2,832,713) |
Class 2 | ||
Shares sold | 617,772,160 | 1,408,739,010 |
Shares issued to shareholders in | ||
reinvestment of dividends | 30,080 | 62,215 |
Total issued. | 617,802,240 | 1,408,801,225 |
Shares redeemed | (632,276,129) | (1,424,705,312) |
Net decrease | (14,473,889) | (15,904,087) |
Class 3 | ||
Shares sold | 1,811,148,164 | 4,928,844,105 |
Shares issued to shareholders in | ||
reinvestment of dividends | 77,110 | 382,857 |
Total issued | 1,811,225,274 | 4,929,226,962 |
Shares redeemed | (1,856,010,016) | (5,004,323,416) |
Net decrease | (44,784,742) | (75,096,454) |
Class 4 | ||
Shares sold | 2,036,599,868 | 4,364,027,148 |
Shares issued to shareholders in | ||
reinvestment of dividends | 65,251 | 284,357 |
Total issued | 2,036,665,119 | 4,364,311,505 |
Shares redeemed | (2,000,368,227) | (4,461,945,027) |
Net increase (decrease) | 36,296,892 | (97,633,522) |
4. Subsequent Events:
Management has evaluated the impact of all subsequent events on the
Fund through the date the financial statements were issued and has
determined that there were no subsequent events requiring adjustment
or additional disclosure in the financial statements.
12 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Portfolio Summary as of September 30, 2010 Master Tax-Exempt LLC
Portfolio Composition
Percent of | |
Net Assets | |
Variable Rate Demand Obligations | 76% |
Fixed Rate Notes | 14 |
Tax-Exempt Commercial Paper | 4 |
Put Bonds | 4 |
Other Assets Less Liabilities | 2 |
Total | 100% |
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
13
Schedule of Investments September 30, 2010 (Unaudited)
Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Alabama — 1.0% | ||
Huntsville IDB, Refunding RB, VRDN, AMT (Federal | ||
Home Loan Bank LOC), 0.43%, 10/07/10 (a) | $ 2,515 | $ 2,515,000 |
Spanish Fort Redevelopment Authority, Macon Trust, | ||
RB, VRDN Certificates, Bank of America, Series | ||
2007-306 (Bank of America NA SBPA), 0.44%, | ||
10/07/10 (a)(b) | 15,450 | 15,450,000 |
University of Alabama, RB, ROCS, VRDN, Series | ||
II-R-12295 (BHAC Insurance, Citibank NA SBPA), | ||
0.31%, 10/07/10 (a)(b)(c) | 28,710 | 28,710,000 |
46,675,000 | ||
Alaska — 0.5% | ||
City of Valdez Alaska, Refunding RB, VRDN, Phillips | ||
Project, Series C, 0.42%, 10/07/10 (a) | 24,400 | 24,400,000 |
Arizona — 1.5% | ||
Arizona Health Facilities Authority, RB, FLOATS, VRDN, | ||
Series 1782 (Morgan Stanley Municipal Funding | ||
SBPA), 0.30%, 10/07/10 (a)(b) | 13,495 | 13,495,000 |
Maricopa County IDA Arizona, Refunding RB, VRDN, | ||
Villas Solanas Apartments, Series A, AMT (Fannie | ||
Mae), 0.34%, 10/07/10 (a) | 6,200 | 6,200,000 |
Maricopa County Public Finance Corp. Arizona, RB, | ||
FLOATS, VRDN, Series 1863 (Wells Fargo Bank NA | ||
SBPA), 0.29%, 10/07/10 (a)(b) | 5,440 | 5,440,000 |
Salt River Pima-Maricopa Indian Community, RB, | ||
VRDN (Bank of America NA LOC)(a): | ||
0.32%, 10/07/10 | 31,195 | 31,195,000 |
0.34%, 10/07/10 | 15,000 | 15,000,000 |
71,330,000 | ||
California — 7.1% | ||
California Community College Financing Authority, | ||
RB, TRAN, Series A, 2.00%, 6/30/11 | 6,955 | 7,014,430 |
California Municipal Finance Authority, RB, PUTTERS, | ||
VRDN, Series 2410, AMT (JPMorgan Chase Bank | ||
LOC), 0.45%, 10/07/10 (a)(b) | 2,125 | 2,125,000 |
California Rural Home Mortgage Finance Authority | ||
Homebuyers Fund, Refunding RB, VRDN, Draw Down, | ||
Mandatory Put Bonds, AMT, 0.51%, 10/01/10 (a) | 49,997 | 49,996,600 |
California School Cash Reserve Program Authority, RB: | ||
Senior Series B, 2.00%, 6/01/11 | 12,100 | 12,188,131 |
Series D, 2.00%, 3/01/11 | 23,200 | 23,320,304 |
Series F, 2.00%, 6/01/11 | 10,200 | 10,291,380 |
Par | ||
Municipal Bonds | (000) | Value |
California (concluded) | ||
California Statewide Communities Development | ||
Authority, RB, FLOATS, VRDN, Series 29G, AMT | ||
(Goldman Sachs Special Situations Liquidity | ||
Facility), 0.35%, 11/24/10 (a)(b) | $ 23,700 | $ 23,700,000 |
City of Los Angeles California, GO, TRAN: | ||
2.00%, 3/31/11 | 11,000 | 11,079,403 |
2.00%, 4/21/11 | 6,700 | 6,751,892 |
City of Sacramento California, GO, TRAN, 2.00%, | ||
6/30/11 | 10,000 | 10,107,796 |
County of Los Angeles California, RB, ROCS, VRDN, | ||
Series II-R-13101CE (Citibank NA Liquidity | ||
Facility), 0.32%, 10/07/10 (a)(b)(c) | 8,400 | 8,400,000 |
County of Riverside California, GO, TRAN: | ||
Series A, 2.00%, 3/31/11 | 5,000 | 5,039,100 |
Series B, 2.00%, 6/30/11 | 35,000 | 35,377,475 |
Downey School Facilities Financing Authority, | ||
Puttable Floating Option Tax-Exempt Receipts, | ||
Refunding RB, FLOATS, VRDN, Series 4066 | ||
(Dexia Credit Local LOC, Dexia Credit Local SBPA), | ||
0.49%, 10/07/10 (a)(b) | 3,990 | 3,990,000 |
Golden State Tobacco Securitization Corp. | ||
California, RB, FLOATS, VRDN, Series 2215 | ||
(Morgan Stanley Bank Liquidity Facility), 0.37%, | ||
10/07/10 (a)(b) | 22,500 | 22,500,000 |
Golden State Tobacco Securitization Corp. | ||
California, Refunding RB, FLOATS, VRDN (a)(b): | ||
Series 2040 (Morgan Stanley Municipal Funding | ||
Guarantee Agreement and Liquidity Facility), | ||
0.37%, 10/07/10 | 8,000 | 8,000,000 |
Series 2954 (Morgan Stanley Bank Liquidity | ||
Facility), 0.37%, 10/07/10 | 1,344 | 1,344,500 |
Los Angeles Unified School District California, GO, | ||
TRAN, Series A, 2.00%, 6/30/11 | 23,900 | 24,136,072 |
San Diego Unified School District California, GO, | ||
TRAN, Series A, 2.00%, 6/30/11 | 40,000 | 40,424,978 |
San Mateo Union High School District California, | ||
GO, ROCS, VRDN, Series II-R-11578PB (AGC | ||
Insurance, PB Capital Corp. SBPA), 0.33%, | ||
10/07/10 (a)(b)(c) | 9,475 | 9,475,000 |
South Coast Local Education Agencies, RB, Pooled, | ||
TRAN, Series A, 2.00%, 8/09/11 | 12,500 | 12,646,934 |
327,908,995 |
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to
the following list:
AGC | Assured Guaranty Corp. | HFA | Housing Finance Agency | PSF-GTD | Permanent School Fund Guaranteed |
AGM | Assured Guaranty Municipal Corp. | HRB | Housing Revenue Bonds | PUTTERS | Puttable Tax-Exempt Receipts |
AMT | Alternative Minimum Tax (subject to) | IDA | Industrial Development Authority | Q-SBLF | Qualified School Bond Loan Fund |
BAN | Bond Anticipation Notes | IDB | Industrial Development Board | RAN | Revenue Anticipation Notes |
BHAC | Berkshire Hathaway Assurance Corp. | IDRB | Industrial Development Revenue Bonds | RB | Revenue Bonds |
COP | Certificates of Participation | ISD | Independent School District | ROCS | Reset Option Certificates |
DRIVERS | Derivative Inverse Tax-Exempt Receipts | LIFERS | Long Inverse Floating Exempt Receipts | S/F | Single-Family |
EDA | Economic Development Authority | LOC | Letter of Credit | SAN | State Aid Notes |
EDC | Economic Development Corp. | M/F | Multi-Family | SBPA | Stand-by Bond Purchase Agreement |
FLOATS | Floating Rate Securities | MERLOTS | Municipal Exempt Receipts Liquidity | SPEARS | Short-Puttable Exempt Adjustable Receipts |
GO | General Obligation Bonds | Optional Tenders | TAN | Tax Anticipation Notes | |
HDA | Housing Development Authority | MSTR | Municipal Securities Trust Receipts | TECP | Tax-Exempt Commercial Paper |
TRAN | Tax Revenue Anticipation Notes | ||||
See Notes to Financial Statements. | VRDN | Variable Rate Demand Notes |
14 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Schedule of Investments (continued)
Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Colorado — 2.1% | ||
City & County of Denver Colorado, COP, Refunding, | ||
VRDN, Series A3 (JPMorgan Chase Bank SBPA), | ||
0.29%, 10/01/10 (a) | $ 5,850 | $ 5,850,000 |
City of Colorado Springs Colorado, Refunding RB, | ||
VRDN, Subordinate Lien, Series A (Dexia Credit | ||
Local SBPA), 0.35%, 10/07/10 (a) | 34,875 | 34,875,000 |
Colorado Educational & Cultural Facilities Authority, | ||
RB, VRDN, Nature Conservatory, Series A-TE (Bank | ||
of America NA SBPA), 0.34%, 10/07/10 (a) | 8,200 | 8,200,000 |
Colorado Housing & Finance Authority, RB, VRDN, | ||
Class I (a): | ||
M/F, Series C-4 (Federal Home Loan Bank | ||
SBPA), 0.31%, 10/07/10 | 4,520 | 4,520,000 |
Series B-2, AMT (Dexia Credit Local SBPA), | ||
0.36%, 10/07/10 | 25,000 | 25,000,000 |
Colorado School of Mines, Refunding RB, VRDN, | ||
Series A (Dexia Credit Local LOC), 0.32%, | ||
10/07/10 (a) | 7,900 | 7,900,000 |
County of Pitkin Colorado, Refunding RB, VRDN, | ||
Aspen Skiing Co. Project, Series B, AMT (JPMorgan | ||
Chase Bank LOC), 0.33%, 10/01/10 (a) | 4,500 | 4,500,000 |
Fiddlers Business Improvement District Colorado, | ||
GO, Refunding, VRDN (KeyBank NA LOC), | ||
0.36%, 10/07/10 (a) | 4,200 | 4,200,000 |
95,045,000 | ||
Connecticut — 0.3% | ||
Connecticut State Health & Educational Facility | ||
Authority, Austin Trust, RB, VRDN Certificates, Bank | ||
of America, Series 2008-352 (Bank of America NA | ||
LOC, Bank of America NA SBPA), 0.37%, | ||
10/07/10 (a)(b) | 4,700 | 4,700,000 |
Connecticut State Health & Educational Facility | ||
Authority, RB, VRDN, Hotchkiss School, Series A | ||
(Northern Trust Co. SBPA), 0.27%, 10/07/10 (a) | 4,000 | 4,000,000 |
Town of Easton Connecticut, GO, BAN, 1.00%, 7/08/11 | 3,500 | 3,515,547 |
12,215,547 | ||
District of Columbia — 1.1% | ||
District of Columbia, Deutsche Bank SPEARS/LIFERS | ||
Trust, GO, SPEARS, VRDN, Series DB-463 (AGM | ||
Insurance, Deutsche Bank AG SBPA), 0.31%, | ||
10/07/10 (a)(b) | 8,393 | 8,393,000 |
District of Columbia, GO, FLOATS, VRDN, Series 1920 | ||
(Wells Fargo Bank NA LOC, Wells Fargo Bank NA | ||
SBPA), 0.29%, 10/07/10 (a)(b) | 15,985 | 15,985,000 |
District of Columbia, RB, VRDN, American University | ||
(Bank of America NA LOC), 0.32%, 10/07/10 (a) | 7,400 | 7,400,000 |
Washington Convention Center Authority, Refunding | ||
RB, FLOATS, VRDN (a)(b): | ||
Series 1730 (BHAC Insurance, Morgan Stanley | ||
Bank Liquidity Facility), 0.31%, 10/07/10 | 6,665 | 6,665,000 |
Series 1731 (BHAC Insurance, Morgan Stanley | ||
Bank Liquidity Facility), 0.31%, 10/07/10 | 6,665 | 6,665,000 |
Series 1736 (BHAC Insurance), 0.31%, 10/07/10 | 7,830 | 7,830,000 |
52,938,000 | ||
Florida — 5.3% | ||
Brevard County Housing Finance Authority, RB, VRDN, | ||
Timber Trace Apartments Project, AMT (Citibank NA | ||
LOC), 0.33%, 10/07/10 (a) | 10,000 | 10,000,000 |
Par | ||
Municipal Bonds | (000) | Value |
Florida (concluded) | ||
County of St. John's Florida, Deutsche Bank | ||
SPEARS/LIFERS Trust, RB, SPEARS, VRDN, Series | ||
DB-486 (Deutsche Bank AG SBPA), 0.31%, | ||
10/07/10 (a)(b) | $ 8,912 | $ 8,912,000 |
County of St. John's Florida, RB, ROCS, VRDN, | ||
Series II-R-755PB (PB Capital Corp. SBPA), | ||
0.34%, 10/07/10 (a)(b) | 18,145 | 18,145,000 |
Florida Housing Finance Corp., RB, VRDN, Savannah | ||
Springs Apartments, Series N, AMT (Citibank NA | ||
LOC), 0.36%, 10/07/10 (a) | 6,800 | 6,800,000 |
Florida Hurricane Catastrophe Fund Finance Corp., | ||
RB, ROCS, VRDN, Series II-R-11549 (Citibank NA | ||
SBPA), 0.31%, 10/07/10 (a)(b) | 4,905 | 4,905,000 |
Florida State Board of Education, GO, ROCS, VRDN, | ||
Series II-R-12288 (Citibank NA SBPA), 0.30%, | ||
10/07/10 (a)(b)(c) | 8,000 | 8,000,000 |
Fort Pierce Redevelopment Agency, Eclipse Funding | ||
Trust, Tax Allocation Bonds, VRDN, Series | ||
2006-0130, Solar Eclipse (US Bank NA LOC), | ||
0.29%, 10/07/10 (a)(b) | 3,905 | 3,905,000 |
Hillsborough County Housing Finance Authority, | ||
HRB, VRDN, Brandon, Series A, AMT (Fannie Mae), | ||
0.33%, 10/07/10 (a) | 5,630 | 5,630,000 |
Jacksonville Economic Development Commission, | ||
RB, VRDN, Lee & Cates Glass Inc. Project, AMT | ||
(Wells Fargo Bank NA LOC), 0.47%, 10/07/10 (a) | 7,600 | 7,600,000 |
Jacksonville Electric Authority Florida, Refunding | ||
RB, VRDN (a): | ||
Series 3-B-2 (Bank of America NA SBPA), | ||
0.28%, 10/07/10 | 6,085 | 6,085,000 |
Series 3-B-3 (Bank of America NA SBPA), | ||
0.28%, 10/07/10 | 8,455 | 8,455,000 |
Sub-Series A-2 (JPMorgan Chase & Co. SBPA), | ||
0.30%, 10/07/10 | 6,845 | 6,845,000 |
Jacksonville Electric Authority Florida, TECP : | ||
0.33%, 10/20/10 | 50,215 | 50,215,000 |
0.33%, 10/20/10 | 8,785 | 8,785,000 |
Jacksonville Port Authority, RB, VRDN, Mitsui OSK | ||
Lines Ltd., AMT (Sumitomo Mitsui Banking LOC), | ||
0.31%, 10/07/10 (a) | 415 | 415,000 |
Manatee County Housing Finance Authority, HRB, | ||
VRDN, Village at Cortez Apartments, Series A, AMT | ||
(Fannie Mae), 0.33%, 10/07/10 (a) | 11,500 | 11,500,000 |
Orlando & Orange County Expressway Authority, RB, | ||
VRDN, Eagle Tax-Exempt Trust, Series 2007-0145, | ||
Class A (BHAC Insurance, Citibank NA SBPA), | ||
0.31%, 10/07/10 (a)(b) | 11,300 | 11,300,000 |
Orlando & Orange County Expressway Authority, | ||
Refunding RB, VRDN, Series C-4 (AGM Insurance, | ||
Dexia Credit Local SBPA), 0.30%, 10/07/10 (a) | 24,000 | 24,000,000 |
Orlando Utilities Commission, RB, ROCS, VRDN, | ||
Series II-R-11818PB (PB Capital Corp. SBPA), | ||
0.34%, 10/07/10 (a)(b)(c) | 26,120 | 26,120,000 |
Palm Beach County Educational Facilities Authority, | ||
Refunding RB, VRDN, Educational Facilities, Atlantic | ||
University Inc. (Bank of America NA LOC), | ||
0.32%, 10/07/10 (a) | 9,510 | 9,510,000 |
University of South Florida Research Foundation Inc., | ||
RB, VRDN, University Technology Center Research | ||
(Bank of America NA LOC), 0.50%, 10/07/10 (a) | 7,500 | 7,500,000 |
244,627,000 |
See Notes to Financial Statements.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
15
Schedule of Investments (continued)
Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Georgia — 1.6% | ||
Fulton County Development Authority, Refunding RB, | ||
VRDN, Siemens Energy Inc. Project, 0.40%, | ||
10/07/10 (a) | $ 7,200 | $ 7,200,000 |
Main Street Natural Gas Inc., RB, VRDN, Series A | ||
(Royal Bank of Canada SBPA), 0.31%, | ||
10/07/10 (a) | 20,700 | 20,700,000 |
Monroe County Development Authority, Refunding | ||
RB, Georgia Power Co. Plant Scherer Project, | ||
Mandatory Put Bonds, 0.80%, 1/07/11 (d) | 6,000 | 6,000,000 |
Municipal Electric Authority of Georgia, Refunding | ||
RB, VRDN, Project No. 1, Sub-Series B (Dexia | ||
Credit Local LOC), 0.35%, 10/07/10 (a) | 10,000 | 10,000,000 |
State of Georgia, GO, ROCS, VRDN, Series | ||
II-R-11536PB (PB Capital Corp. SBPA), | ||
0.33%, 10/07/10 (a)(b) | 26,065 | 26,065,000 |
Whitfield County Development Authority, RB, VRDN, | ||
Aladdin Manufacturing Corp. Project, AMT | ||
(Wachovia Bank NA LOC), 0.49%, 10/07/10 (a) | 3,100 | 3,100,000 |
73,065,000 | ||
Idaho — 0.3% | ||
State of Idaho, GO, TAN, 2.00%, 6/30/11 | 15,350 | 15,531,782 |
Illinois — 8.3% | ||
BB&T Municipal Trust, RB, FLOATS, VRDN, Series | ||
5001 (Rabobank International LOC), 0.44%, | ||
10/07/10 (a)(b)(c) | 13,411 | 13,410,509 |
Chicago Transit Authority, COP, ROCS, VRDN, Series | ||
II-R-11786 (AGC Insurance, Citibank NA SBPA), | ||
0.40%, 10/07/10 (a)(b)(c) | 8,210 | 8,210,000 |
City of Chicago Illinois, RB, VRDN, AMT (a): | ||
ROCS, Series II-R-239 (AGM Insurance, Citibank | ||
NA SBPA), 0.37%, 10/07/10 (b) | 3,700 | 3,700,000 |
Second Lien, Series B (Societe Generale LOC), | ||
0.34%, 10/07/10 | 17,549 | 17,549,000 |
City of Chicago Illinois, Deutsche Bank SPEARS/ | ||
LIFERS Trust, SPEARS, RB, VRDN (a)(b): | ||
Series DB-502 (AGM Insurance, Deutsche | ||
Bank AG SBPA), 0.31%, 10/07/10 | 41,055 | 41,055,000 |
Series DBE-534, 0.31%, 10/07/10 | 2,235 | 2,235,000 |
Illinois Finance Authority, RB, VRDN (a): | ||
Revolving Fund Pooled, Series D (Bank One | ||
Illinois NA LOC), 0.27%, 10/07/10 | 16,050 | 16,050,000 |
University of Chicago Medical Center, Series D-1 | ||
(Bank of America NA LOC), 0.26%, 10/01/10 | 7,700 | 7,700,000 |
Illinois Finance Authority, Refunding RB, VRDN, Eagle | ||
Tax-Exempt Trust, Series 2006-0118, Class A | ||
(Citibank NA SBPA), 0.30%, 10/07/10 (a)(b) | 3,150 | 3,150,000 |
Illinois State Toll Highway Authority, RB, VRDN, Senior | ||
Priority, Series A-1 (Dexia Credit Local SBPA), | ||
0.31%, 10/07/10 (a) | 45,700 | 45,700,000 |
Illinois State Toll Highway Authority, Refunding RB, | ||
VRDN (a): | ||
Senior Priority, Series A-2 (AGM Insurance, Dexia | ||
Credit Local SBPA), 0.31%, 10/07/10 | 1,430 | 1,430,000 |
Series B (AGM Insurance, Landesbank Hessen- | ||
Thuringen SBPA), 0.30%, 10/07/10 | 12,235 | 12,235,000 |
State of Illinois, GO, VRDN, Series B (Depfa Bank | ||
Plc SBPA), 2.75%, 10/07/10 (a) | 198,800 | 198,800,000 |
University of Illinois, Refunding RB, VRDN, Eagle | ||
Tax-Exempt Trust, Series 2006-0124, Class A | ||
(Citibank NA SBPA), 0.31%, 10/07/10 (a)(b) | 10,000 | 10,000,000 |
381,224,509 |
Par | ||
Municipal Bonds | (000) | Value |
Indiana — 3.3% | ||
City of Michigan City Indiana, RB, VRDN, Palatek | ||
Project, AMT (Comerica Bank LOC), 0.45%, | ||
10/07/10 (a) | $ 4,700 | $ 4,700,000 |
City of Portage Indiana, RB, VRDN, Breckenridge | ||
Apartments Project, AMT (LaSalle National Bank | ||
LOC), 0.36%, 10/07/10 (a) | 4,650 | 4,650,000 |
Hartford City Indiana, RB, VRDN, Petoskey Plastics | ||
Inc., AMT (Comerica Bank LOC), 0.45%, | ||
10/07/10 (a) | 5,200 | 5,200,000 |
Indiana Development Finance Authority, RB, VRDN (a): | ||
Educational Facilities, Industrial Museum of Art | ||
(Bank One NA LOC), 0.27%, 10/07/10 | 43,000 | 43,000,000 |
PSI Energy Inc. Projects, Series A, AMT, 0.55%, | ||
10/07/10 | 17,550 | 17,550,000 |
Indiana Finance Authority, RB, VRDN, Lease | ||
Appropriation, Series A-1 (JPMorgan Chase Bank | ||
SBPA), 0.30%, 10/01/10 (a) | 40,000 | 40,000,000 |
Indiana Finance Authority, Refunding RB: | ||
Ascension Health, Series E6, Mandatory Put | ||
Bonds, 0.39%, 3/15/11 (d) | 6,000 | 6,000,000 |
VRDN, Duke Energy Indiana Project, Series A-1, | ||
AMT (Bank of America NA LOC), 0.33%, | ||
10/07/10 (a) | 6,000 | 6,000,000 |
Indianapolis Local Public Improvement Bond Bank, | ||
Refunding RB, ROCS, VRDN, Series II-R-11779 | ||
(AGC Insurance, Citibank NA SBPA), 0.32%, | ||
10/07/10 (a)(b)(c) | 24,825 | 24,825,000 |
151,925,000 | ||
Iowa — 0.5% | ||
City of Clear Lake Iowa, RB, VRDN, Joe Corbi's Pizza | ||
Project, AMT (Manufacturers & Traders LOC), | ||
0.45%, 10/07/10 (a) | 3,295 | 3,295,000 |
Iowa Higher Education Loan Authority, Refunding RB, | ||
VRDN, Private College Facility, Loras College Project | ||
(Lasalle Bank NA LOC), 0.27%, 10/01/10 (a) | 11,960 | 11,960,000 |
State of Iowa, Barclays Capital Municipal Trust | ||
Receipts, RB, FLOATS, VRDN, Series 13B-C (Barclays | ||
Bank Plc SBPA), 0.31%, 10/07/10 (a)(b)(c) | 6,200 | 6,200,000 |
21,455,000 | ||
Kansas — 0.3% | ||
Counties of Sedgwick & Shawnee Kansas, JP Morgan | ||
Chase PUTTERS/DRIVERS Trust, Refunding RB, | ||
PUTTERS, VRDN, Series 3206, AMT (Ginnie Mae | ||
Insurance, JPMorgan Chase & Co. SBPA), 0.40%, | ||
10/07/10 (a)(b)(c) | 5,680 | 5,680,000 |
Counties of Sedgwick & Shawnee Kansas, RB, FLOATS, | ||
VRDN, Series 2480, AMT (Ginnie Mae Insurance, | ||
Morgan Stanley Bank Liquidity Facility), 0.34%, | ||
10/07/10 (a)(b) | 7,285 | 7,285,000 |
12,965,000 | ||
Kentucky — 0.5% | ||
Campbell & Kenton Counties Sanitation District No. 1 | ||
Kentucky, RB, MSTR, VRDN, Series SGA 130 (AGM | ||
Insurance, Societe Generale SBPA), 0.33%, | ||
10/07/10 (a)(b) | 11,000 | 11,000,000 |
County of Boyd Kentucky, RB, VRDN, Air Products & | ||
Chemicals Project, AMT, 0.53%, 10/07/10 (a) | 3,775 | 3,775,000 |
Reset Optional Certificates Trust II-R, Refunding RB, | ||
ROCS, VRDN, Series II-R-662C (Citibank NA LOC, | ||
Citibank NA SBPA), 0.40%, 10/07/10 (a)(b) | 9,125 | 9,125,000 |
23,900,000 |
See Notes to Financial Statements.
16 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Schedule of Investments (continued)
Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Louisiana — 1.0% | ||
Louisiana Local Government Environmental Facilities | ||
& Community Development Authority, RB, VRDN (a): | ||
BASF Corp. Project, AMT, 0.44%, 10/07/10 | $ 4,000 | $ 4,000,000 |
Go To The Show, Series A (Federal Home Loan | ||
Bank LOC), 0.28%, 10/07/10 | 5,305 | 5,305,000 |
Honeywell International Inc. Project, AMT, | ||
0.50%, 10/07/10 | 6,000 | 6,000,000 |
Louisiana Local Government Environmental Facilities | ||
& Community Development Authority, Refunding | ||
RB, VRDN, BASF Corp. Project, Series B, 0.41%, | ||
10/07/10 (a) | 7,500 | 7,500,000 |
Louisiana Public Facilities Authority, RB, VRDN, Air | ||
Products & Chemicals Project, AMT, 0.50%, | ||
10/07/10 (a) | 2,850 | 2,850,000 |
Louisiana State Municipal Natural Gas Purchasing | ||
& District Authority, RB, PUTTERS, VRDN, Series | ||
1411Q (JPMorgan Chase & Co. LOC), 0.32%, | ||
10/07/10 (a)(b) | 9,616 | 9,616,000 |
Parish of Ascension Louisiana, RB, VRDN, BASF Corp. | ||
Project, AMT, 0.44%, 10/07/10 (a) | 10,100 | 10,100,000 |
45,371,000 | ||
Maine — 0.1% | ||
Maine Health & Higher Educational Facilities Authority, | ||
Eclipse Funding Trust, RB, VRDN, Series 2007-0104, | ||
Solar Eclipse (US Bank NA LOC), 0.29%, | ||
10/07/10 (a)(b) | 3,175 | 3,175,000 |
Maine State Housing Authority, RB, VRDN, Series H | ||
(KBC Bank NV SBPA), 0.30%, 10/01/10 (a) | 1,185 | 1,185,000 |
4,360,000 | ||
Maryland — 0.9% | ||
County of Baltimore Maryland, RB, VRDN, Paths at | ||
Loveton (Manufacturers & Traders LOC), 0.35%, | ||
10/07/10 (a) | 4,270 | 4,270,000 |
Maryland Community Development Administration, | ||
Clipper Tax-Exempt Certificate Trust, RB, VRDN, | ||
Series 2009-47, AMT (State Street Bank & Trust | ||
Co. SBPA), 0.45%, 10/07/10 (a)(b)(c) | 2,535 | 2,535,000 |
Maryland Community Development Administration, | ||
Refunding RB, FLOATS, VRDN, Series 2997, AMT | ||
(Morgan Stanley Bank Liquidity Facility), 0.34%, | ||
10/07/10 (a)(b)(c) | 8,475 | 8,475,000 |
Maryland EDC, RB, VRDN (a): | ||
Bakery de France Facility, AMT (Manufacturers | ||
& Traders LOC), 0.60%, 10/07/10 | 9,765 | 9,765,000 |
Garrett Community College Facility | ||
(Manufacturers & Traders LOC), 0.30%, 10/07/10 | 6,905 | 6,905,000 |
Linemark Printing Project, AMT (Manufacturers | ||
& Traders LOC), 0.50%, 10/07/10 | 3,630 | 3,630,000 |
Pharmaceutics International Inc., Series A, AMT | ||
(AllFirst Bank LOC), 0.45%, 10/07/10 | 4,180 | 4,180,000 |
39,760,000 | ||
Massachusetts — 3.4% | ||
Commonwealth of Massachusetts, Refunding RB, | ||
FLOATS, VRDN (Dexia Credit Local LOC, Dexia Credit | ||
Local SBPA) (a)(b): | ||
Series PT-3058, 0.50%, 10/07/10 | 27,200 | 27,200,000 |
Series PT-3511, 0.50%, 10/07/10 | 10,510 | 10,510,000 |
Par | ||
Municipal Bonds | (000) | Value |
Massachusetts (concluded) | ||
Massachusetts Bay Transportation Authority, | ||
Refunding RB, VRDN, Senior Series A, | ||
0.39%, 4/28/11 (a) | $ 3,500 | $ 3,500,000 |
Massachusetts Development Finance Agency, | ||
Macon Trust, RB, VRDN Certificates, Bank of | ||
America, Series 2007-344 (Bank of America NA | ||
LOC), 0.44%, 10/07/10 (a)(b) | 55,758 | 55,758,000 |
Massachusetts Health & Educational Facilities | ||
Authority, RB, VRDN (a)(b): | ||
Macon Trust, Certificates, Bank of America, | ||
Series 2007-310 (Bank of America NA LOC), | ||
0.37%, 10/07/10 | 7,510 | 7,510,000 |
ROCS, Series II-R-11577PB (PB Capital Corp. | ||
SBPA), 0.33%, 10/07/10 | 31,670 | 31,670,000 |
Massachusetts State Turnpike Authority, Clipper | ||
Tax-Exempt Certificate Trust, RB, VRDN, Series | ||
2009-74 (State Street Bank & Trust Co. SBPA), | ||
0.30%, 10/07/10 (a)(b) | 13,160 | 13,160,000 |
Massachusetts Water Resources Authority, Refunding | ||
RB, VRDN, Eagle Tax-Exempt Trust, Series | ||
2006-0054, Class A (Citibank NA SBPA), | ||
0.30%, 10/07/10 (a)(b) | 7,495 | 7,495,000 |
156,803,000 | ||
Michigan — 3.6% | ||
City of Detroit Michigan, RB, ROCS, VRDN, Series | ||
II-R-719PB (AGC Insurance, PB Capital Corp. | ||
SBPA), 0.34%, 10/07/10 (a)(b) | 12,410 | 12,410,000 |
Detroit City School District, GO, FLOATS, VRDN, Series | ||
DC8032 (AGM Insurance, Dexia Credit Local LOC), | ||
0.43%, 10/01/10 (a)(b) | 10,000 | 10,000,000 |
Holt Public Schools Michigan, GO, Refunding, VRDN | ||
(Q-SBLF Insurance, Landesbank Hessen-Thuringen | ||
SBPA), 0.32%, 10/07/10 (a) | 6,965 | 6,965,000 |
Michigan Finance Authority, RB, SAN: | ||
Series D-1, 2.00%, 8/19/11 | 4,230 | 4,274,555 |
Series D-2 (JPMorgan Chase Bank LOC), | ||
2.00%, 8/22/11 | 11,400 | 11,562,428 |
Michigan Higher Education Student Loan Authority, | ||
RBC Municipal Products Inc. Trust, Refunding RB, | ||
FLOATS, VRDN, Series L-24, AMT (Royal Bank of | ||
Canada LOC), 0.35%, 10/07/10 (a)(b) | 32,045 | 32,045,000 |
Michigan State HDA, Refunding RB, VRDN, Series A, | ||
AMT (JPMorgan Chase & Co. SBPA), 0.31%, | ||
10/01/10 (a) | 35,000 | 35,000,000 |
Michigan State Hospital Finance Authority, RB, | ||
VRDN, Ascension Health Senior Credit, 0.39% | ||
due 4/28/11 (a) | 7,700 | 7,700,000 |
Reset Optional Certificates Trust II-R, Refunding | ||
RB, ROCS, VRDN, Series II-R-665PB (BHAC | ||
Insurance, PB Capital Corp. SBPA), 0.34%, | ||
10/07/10 (a)(b) | 20,630 | 20,630,000 |
Wayne County Airport Authority, Refunding RB, | ||
VRDN, Detroit Metropolitan, Series C1, AMT | ||
(Wachovia Bank NA LOC), 0.33%, 10/07/10 (a) | 23,990 | 23,990,000 |
164,576,983 |
See Notes to Financial Statements.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
17
Schedule of Investments (continued)
Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Minnesota — 0.8% | ||
Minneapolis & St. Paul Housing & Redevelopment | ||
Authority, Refunding RB, VRDN, Allina Health | ||
System, Series B-2 (JPMorgan Chase Bank LOC), | ||
0.30%, 10/01/10 (a) | $ 5,600 | $ 5,600,000 |
Minnesota School District Capital Equipment | ||
Borrowing Program, COP, Aid Anticipation | ||
Certificates Indebtedness, Series B, | ||
2.00%, 9/01/11 | 20,450 | 20,759,486 |
State of Minnesota, GO, ROCS, VRDN, Series | ||
II-R-11538PB (PB Capital Corp. SBPA), | ||
0.33%, 10/07/10 (a)(b) | 10,435 | 10,435,000 |
36,794,486 | ||
Mississippi — 0.2% | ||
Mississippi Business Finance Corp., RB, VRDN, | ||
Series A, Renaissance (Federal Home Loan Bank | ||
LOC), 0.29%, 10/07/10 (a) | 7,200 | 7,200,000 |
Missouri — 1.8% | ||
City of North Kansas City Missouri, Refunding RB, | ||
VRDN, North Kansas City Hospital (Bank of | ||
America NA LOC), 0.31%, 10/01/10 (a) | 9,645 | 9,645,000 |
Kansas City IDA Missouri, RB, VRDN, Kansas City | ||
Downtown Redevelopment, Series B (JPMorgan | ||
Chase Bank LOC), 0.27%, 10/07/10 (a) | 11,690 | 11,690,000 |
Missouri Joint Municipal Electric Utility Commission, | ||
RB, ROCS, VRDN, Series II-R-620PB (BHAC | ||
Insurance, PB Capital Corp. SBPA), 0.34%, | ||
10/07/10 (a)(b) | 12,340 | 12,340,000 |
Missouri State Health & Educational Facilities | ||
Authority, RB, VRDN, BJC Health System, Series B | ||
(US Bank NA SBPA), 0.30%, 10/01/10 (a) | 40,000 | 40,000,000 |
Missouri State Health & Educational Facilities | ||
Authority, Refunding RB, Ascension Health Senior | ||
Credit, Series C-1, 0.48%, 5/04/11 (d) | 4,245 | 4,245,000 |
Palmyra IDA, RB, VRDN, BASF Corp. Project, AMT, | ||
0.44%, 10/07/10 (a) | 6,000 | 6,000,000 |
83,920,000 | ||
Nebraska — 0.9% | ||
City of Lincoln Nebraska, RB, FLOATS, VRDN, Series | ||
2900 (Morgan Stanley Bank Liquidity Facility), | ||
0.32%, 10/07/10 (a)(b) | 16,000 | 16,000,000 |
Public Power Generation Agency, RB, ROCS, VRDN, | ||
Series II-R-11019PB (BHAC Insurance, PB | ||
Capital Corp. SBPA), 0.34%, 10/07/10 (a)(b) | 26,015 | 26,015,000 |
42,015,000 | ||
Nevada — 0.6% | ||
County of Clark Nevada, RB: | ||
System, Junior Subordinate Lien Notes, | ||
Series E-1, 2.50%, 6/01/11 | 7,335 | 7,425,987 |
VRDN, ROCS, Series II-R-11825 (AGC Insurance, | ||
Citibank NA SBPA), 0.32%, 10/07/10 (a)(b)(c) | 2,500 | 2,500,000 |
VRDN, ROCS, Series II-R-11827 (Citibank NA | ||
SBPA), 0.38%, 10/07/10 (a)(b)(c) | 5,000 | 5,000,000 |
Truckee Meadows Water Authority, Refunding RB, | ||
FLOATS, VRDN, Series 51TP (AGM Insurance, Wells | ||
Fargo Bank NA SBPA), 0.31%, 10/07/10 (a)(b) | 11,790 | 11,790,000 |
26,715,987 |
Par | ||
Municipal Bonds | (000) | Value |
New Hampshire — 0.7% | ||
New Hampshire Health & Education Facilities | ||
Authority, RB, VRDN (a)(b): | ||
Eclipse Funding Trust, Series 2007-0018, Solar | ||
Eclipse (US Bank NA LOC), 0.29%, 10/07/10 | $ 10,385 | $ 10,385,000 |
ROCS, Series II-R-783PB (BHAC Insurance, PB | ||
Capital Corp. SBPA), 0.34%, 10/07/10 | 20,125 | 20,125,000 |
30,510,000 | ||
New Jersey — 6.3% | ||
Borough of Butler New Jersey, GO, BAN, | ||
1.25%, 8/26/11 | 7,011 | 7,052,875 |
Borough of Hopatcong New Jersey, GO, BAN, | ||
1.25%, 8/05/11 | 10,576 | 10,616,827 |
Borough of Palisades Park New Jersey, GO, BAN, | ||
1.25%, 4/21/11 | 1,600 | 1,604,238 |
Borough of Upper Saddle River New Jersey, GO, | ||
Refunding, BAN, 1.25%, 2/25/11 | 6,091 | 6,110,976 |
New Jersey EDA, RB, VRDN, Facilities Construction, | ||
Sub-Series R-3 (Bank of Nova Scotia LOC, Lloyds | ||
TSB Bank Plc LOC), 0.23%, 10/01/10 (a) | 18,800 | 18,800,000 |
New Jersey EDA, Refunding RB, FLOATS, VRDN (Dexia | ||
Credit Local LOC, Dexia Credit Local SBPA) (a)(b): | ||
Series PT-2805, 0.49%, 10/07/10 | 18,600 | 18,600,000 |
Series PT-3824, 0.49%, 10/07/10 | 13,920 | 13,920,000 |
New Jersey EDA, TECP (Dexia Credit Local SBPA), | ||
0.33%, 10/04/10 | 24,500 | 24,500,000 |
New Jersey State Housing & Mortgage Finance | ||
Agency, Refunding RB, VRDN, S/F Housing, | ||
Series O, AMT (Dexia Credit Local SBPA), | ||
0.41%, 10/07/10 (a) | 20,000 | 20,000,000 |
New Jersey State Turnpike Authority, RB, VRDN, | ||
Series C-2 (AGM Insurance, Dexia Credit Local | ||
SBPA), 0.35%, 10/07/10 (a) | 7,600 | 7,600,000 |
New Jersey State Turnpike Authority, Refunding RB, | ||
FLOATS, VRDN, Series PT-2493 (Dexia Credit | ||
Local LOC, Dexia Credit Local SBPA), | ||
0.49%, 10/07/10 (a)(b) | 13,920 | 13,920,000 |
New Jersey Transportation Trust Fund Authority, | ||
Deutsche Bank SPEARS/LIFERS Trust, RB, SPEARS, | ||
VRDN, Series DB-447 (AGM), 0.31%, | ||
10/07/10 (a)(b) | 4,010 | 4,010,000 |
State of New Jersey, JP Morgan Chase PUTTERS/ | ||
DRIVERS Trust, RB, PUTTERS, VRDN (JPMorgan | ||
Chase & Co. Liquidity Facility) (a)(b)(c): | ||
Series 3808, 0.30%, 10/01/10 | 20,000 | 20,000,000 |
Series 3811, 0.30%, 6/23/11 | 50,000 | 50,000,000 |
Tobacco Settlement Financing Corp. New Jersey, | ||
Refunding RB, FLOATS, VRDN, Series 2959 | ||
(Morgan Stanley Bank Liquidity Facility), | ||
0.37%, 10/07/10 (a)(b)(c) | 11,150 | 11,150,000 |
Township of Jackson New Jersey, GO, TAN, | ||
1.50%, 2/17/11 | 9,500 | 9,527,363 |
Township of Livingston New Jersey, GO, BAN, | ||
1.25%, 2/11/11 | 9,400 | 9,424,894 |
Township of Montclair New Jersey, GO, Refunding, | ||
1.50%, 3/10/11 | 10,800 | 10,849,744 |
Township of Readington New Jersey, GO, BAN, | ||
1.00%, 2/03/11 | 23,100 | 23,145,214 |
Village of Ridgewood New Jersey, GO, BAN, | ||
1.50%, 6/24/11 | 11,191 | 11,268,279 |
292,100,410 |
See Notes to Financial Statements.
18 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Schedule of Investments (continued)
Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
New Mexico — 0.2% | ||
City of Rio Rancho New Mexico, Eclipse Funding | ||
Trust, RB, VRDN, Series 2007-0019, Solar Eclipse | ||
(US Bank NA LOC), 0.29%, 10/07/10 (a)(b) | $ 10,000 | $ 10,000,000 |
New York — 7.4% | ||
City of New Rochelle New York, GO, Refunding, | ||
BAN, 1.50%, 3/11/11 | 3,339 | 3,353,728 |
City of New York New York, GO, VRDN (a): | ||
Sub-Series L-4 (US Bank NA LOC), | ||
0.26%, 10/01/10 | 3,995 | 3,995,000 |
Sub-Series L-6 (Wells Fargo Bank NA SBPA), | ||
0.23%, 10/01/10 | 300 | 300,000 |
Metropolitan Transportation Authority, RB, RAN, | ||
2.00%, 12/31/10 | 20,000 | 20,081,027 |
Metropolitan Transportation Authority, Refunding RB, | ||
VRDN (AGM Insurance, Dexia Credit Local SBPA) (a): | ||
Series A, 0.33%, 10/07/10 | 30,000 | 30,000,000 |
Series B, 0.37%, 10/07/10 | 15,000 | 15,000,000 |
New York City Housing Development Corp., RB, VRDN (a): | ||
Beekman Tower, Series A (RBS Citizens NA LOC), | ||
0.39%, 10/07/10 | 24,300 | 24,300,000 |
Elliott Chelsea Development, Series A (Citibank | ||
NA LOC), 0.30%, 10/07/10 | 3,000 | 3,000,000 |
Series H-2-B, AMT (Bank of America NA SBPA), | ||
0.31%, 10/01/10 | 3,300 | 3,300,000 |
Series J-1, Mandatory Put Bonds, 0.48%, 9/15/11 | 9,450 | 9,450,000 |
New York City Housing Development Corp., Refunding | ||
RB, VRDN (a): | ||
M/F, The Crest, Series A (Landesbank Hessen- | ||
Thuringen LOC), 0.31%, 10/07/10 | 6,700 | 6,700,000 |
Series I-2, Mandatory Put Bonds, AMT, 0.53%, | ||
5/13/11 | 6,950 | 6,950,000 |
New York City Industrial Development Agency, | ||
Refunding RB, VRDN, Touro College Project (JP | ||
Morgan Chase Bank LOC), 0.25%, 10/07/10 (a) | 3,800 | 3,800,000 |
New York City Municipal Water Finance Authority, | ||
Refunding RB, VRDN, Eagle Tax-Exempt Trust, Series | ||
2009-0047, Class A (Citibank NA SBPA), 0.30%, | ||
10/07/10 (a)(b)(c) | 7,500 | 7,500,000 |
New York City Transitional Finance Authority, RB, VRDN (a): | ||
Future Tax Secured, Sub-Series C3 (Dexia Credit | ||
Local SBPA), 0.34%, 10/07/10 | 13,545 | 13,545,000 |
New York City Recovery, Series 3, Sub-Series 3E | ||
(Landesbank Baden-Wurttemberg SBPA), | ||
0.31%, 10/01/10 | 3,100 | 3,100,000 |
Sub-Series 2B (Dexia Credit Local SBPA), | ||
0.34%, 10/07/10 | 12,315 | 12,315,000 |
New York Liberty Development Corp., RB, VRDN, | ||
World Trade Center Project, Series A, Mandatory | ||
Put Bonds, 0.50%, 1/18/11 (a) | 78,000 | 78,000,000 |
New York Mortgage Agency, RB, VRDN, Homeowner | ||
Mortgage, Series 125, AMT (Dexia Credit Local | ||
SBPA), 0.40%, 10/07/10 (a) | 3,000 | 3,000,000 |
New York State HFA, RB, VRDN, Series A (JPMorgan | ||
Chase Bank LOC), 0.25%, 10/07/10 (a) | 7,600 | 7,600,000 |
Port Authority of New York & New Jersey, JP Morgan | ||
Chase PUTTERS/DRIVERS Trust, RB, PUTTERS, | ||
VRDN, Series 3192, AMT (JPMorgan Chase & Co. | ||
SBPA), 0.39%, 10/07/10 (a)(b)(c) | 25,325 | 25,325,000 |
Par | |||
Municipal Bonds | (000) | Value | |
New York (concluded) | |||
Port Authority of New York & New Jersey, Refunding | |||
RB, VRDN, Versatile Structure Obligation, Series 4, | |||
AMT (Landesbank Hessen-Thuringen SBPA), | |||
0.28%, 10/01/10 (a) | $ 200 | $ 200,000 | |
Ramapo Housing Authority New York, RB, VRDN, | |||
Fountainview College Road (Manufacturers & | |||
Traders LOC), 0.40%, 10/07/10 (a) | 13,720 | 13,720,000 | |
Triborough Bridge & Tunnel Authority, Refunding RB, | |||
VRDN, General, Sub-Series B-2 (Dexia Credit | |||
Local SBPA), 0.30%, 10/07/10 (a) | 46,100 | 46,100,000 | |
340,634,755 | |||
North Carolina — 3.8% | |||
Charlotte Housing Authority North Carolina, RB, VRDN | |||
(Wachovia Bank NA LOC) (a): | |||
Oak Park Project, 0.31%, 10/07/10 | 7,500 | 7,500,000 | |
Stonehaven East Project, 0.31%, 10/07/10 | 5,950 | 5,950,000 | |
City of Charlotte North Carolina, Refunding RB, VRDN, | |||
Charlotte Douglas, Series D (Bank of America NA | |||
LOC), 0.28%, 10/07/10 (a) | 1,260 | 1,260,000 | |
City of Raleigh North Carolina, COP, VRDN, Downtown, | |||
Series B (RBC Bank USA SBPA), 0.31%, 10/07/10 (a) | 7,900 | 7,900,000 | |
City of Raleigh North Carolina, Refunding RB, VRDN, | |||
0.40%, 4/28/11 (a) | 3,375 | 3,375,000 | |
County of Mecklenburg North Carolina, GO, VRDN, | |||
Series B (Landesbank Hessen-Thuringen SBPA), | |||
0.28%, 10/07/10 (a) | 600 | 600,000 | |
County of Pender North Carolina, GO, BAN, Water, | |||
1.25%, 7/06/11 (e) | 8,200 | 8,242,476 | |
County of Wake North Carolina, GO, VRDN (a): | |||
Public Improvement, Series B (Lloyds TSB Bank | |||
Plc SBPA), 0.28%, 10/07/10 | 1,000 | 1,000,000 | |
Series A (RBC Bank USA SBPA), 0.34%, 10/07/10 | 45,350 | 45,350,000 | |
Martin County Industrial Facilities & Pollution | |||
Control Financing Authority North Carolina, IDRB, | |||
VRDN, Penco Products Project, AMT (KeyBank NA | |||
LOC), 0.58%, 10/07/10 (a) | 9,000 | 9,000,000 | |
Mecklenburg County North Carolina, COP, VRDN | |||
(Branch Banking & Trust SBPA), 0.30%, 10/07/10 (a) | 2,500 | 2,500,000 | |
Mecklenburg County North Carolina, GO, Refunding, | |||
7 Month Windows, Series D, 0.40%, 4/28/11 (d) | 5,900 | 5,900,000 | |
North Carolina, BB&T Municipal Trust, RB, FLOATS, | |||
VRDN (Branch Banking & Trust LOC)(a)(b): | |||
Series 1008, 0.33%, 10/07/10 | 400 | 400,000 | |
Series 1009, 0.36%, 10/07/10 | 1,890 | 1,890,000 | |
Series 1011, 0.36%, 10/07/10 | 1,180 | 1,180,000 | |
North Carolina Capital Facilities Finance Agency, | |||
RB, VRDN, Aquarium Society Project (Bank of | |||
America NA LOC), 0.32%, 10/07/10 (a) | 21,435 | 21,435,000 | |
North Carolina HFA, RB, VRDN, AMT (a)(b)(c): | |||
MERLOTS, Series B12 (Wells Fargo Bank NA | |||
SBPA), 0.34%, 10/07/10 | 6,120 | 6,120,000 | |
ROCS, Series II-R-175 (Citibank NA SBPA), | |||
0.36%, 10/07/10 | 1,800 | 1,800,000 | |
North Carolina Medical Care Commission, RB, | |||
VRDN, Moses Cone Health System, Series A (Bank | |||
of America NA SBPA), 0.30%, 10/07/10 (a) | 6,625 | 6,625,000 | |
North Carolina State Education Assistance Authority, | |||
Refunding RB, VRDN, Student Loan, Series A-2, AMT | |||
(Royal Bank of Canada LOC), 0.33%, 10/07/10 (a) | 19,900 | 19,900,000 | |
Reset Optional Certificates Trust II-R, RB, ROCS, VRDN, | |||
Series II-R-645 (Citibank NA SBPA), 0.30%, | |||
10/07/10 (a) | 6,400 | 6,400,000 |
See Notes to Financial Statements.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
19
Schedule of Investments (continued)
Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
North Carolina (concluded) | ||
Town of Ahoskie North Carolina, GO, BAN, | ||
Wastewater, 1.00%, 11/17/10 | $ 2,550 | $ 2,551,673 |
University of North Carolina at Chapel Hill, | ||
Refunding RB, VRDN, Series B (Landesbank | ||
Hessen-Thuringen SBPA), 0.27%, 10/01/10 (a) | 9,340 | 9,340,000 |
176,219,149 | ||
Ohio — 0.7% | ||
City of Avon Ohio, GO, BAN, 1.25%, 7/21/11 | 3,000 | 3,016,094 |
City of Delaware Ohio, GO, BAN, Various Purpose, | ||
1.25%, 4/27/11 | 3,900 | 3,914,645 |
City of Marysville Ohio, GO, Wastewater Treatment, | ||
1.25%, 6/01/11 | 6,250 | 6,270,696 |
City of Shaker Heights Ohio, GO, BAN, Various | ||
Purpose Improvement, 1.50%, 5/06/11 | 2,625 | 2,638,232 |
City of Willoughby Ohio, GO, BAN, Various Purpose | ||
Improvement, 1.00%, 10/08/10 | 6,950 | 6,950,696 |
County of Cuyahoga Ohio, RB, VRDN, Cleveland Clinic, | ||
Sub-Series B3 (Bank of America NA SBPA), | ||
0.29%, 10/01/10 (a) | 6,200 | 6,200,000 |
County of Licking Ohio, GO, BAN, Various Purpose, | ||
1.25%, 6/16/11 | 2,800 | 2,810,838 |
County of Wood Ohio, RB, VRDN, GHT Property | ||
Management LLC Project, AMT (KeyBank NA LOC), | ||
0.56%, 10/07/10 (a) | 985 | 985,000 |
32,786,201 | ||
Oklahoma — 0.1% | ||
Oklahoma Development Finance Authority, RB, | ||
Conoco Project, Series B, AMT, 0.34%, 10/07/10 (a) | 2,500 | 2,500,000 |
Pennsylvania — 2.2% | ||
Allegheny County Airport Authority Pennsylvania, | ||
Puttable Floating Option Tax-Exempt Receipts, | ||
Refunding RB, FLOATS, VRDN, Series 3965, AMT | ||
(Dexia Credit Local LOC, Dexia Credit Local SBPA), | ||
0.57%, 10/07/10 (a)(b) | 3,990 | 3,990,000 |
Allegheny County Hospital Development Authority, | ||
RBC Municipal Products Inc. Trust, RB, FLOATS, | ||
VRDN, Series E-16 (Royal Bank of Canada LOC), | ||
0.30%, 10/07/10 (a)(b)(c) | 12,800 | 12,800,000 |
Butler County IDA Pennsylvania, Refunding RB, | ||
VRDN, Concordia Lutheran, Series A (Bank of | ||
America NA LOC), 0.30%, 10/07/10 (a) | 195 | 195,000 |
Commonwealth of Pennsylvania, Clipper Tax-Exempt | ||
Certificate Trust, RB, VRDN, Series 2009-58 (State | ||
Street Bank & Trust Co. SBPA), 0.33%, | ||
10/07/10 (a)(b)(c) | 12,500 | 12,500,000 |
County of Lehigh Pennsylvania, Refunding RB, | ||
VRDN, Lehigh Valley Health Network, Series B | ||
(AGC Insurance, Wells Fargo Bank NA SBPA), | ||
0.28%, 10/01/10 (a) | 40,000 | 40,000,000 |
Pennsylvania HFA, Refunding RB, VRDN, Series 99C, | ||
AMT (Dexia Credit Local SBPA), 0.33%, 10/07/10 (a) | 5,100 | 5,100,000 |
Southcentral General Authority Pennsylvania, | ||
Refunding RB, VRDN, Wellspan Health Obligor | ||
Group, Series C (M&T Bank LOC), 0.30%, | ||
10/07/10 (a) | 5,800 | 5,800,000 |
Venango IDA (Dexia Credit Local SBPA), TECP: | ||
0.47%, 10/04/10 | 538 | 538,000 |
0.47%, 10/05/10 | 12,048 | 12,048,000 |
0.47%, 10/06/10 | 4,460 | 4,460,000 |
0.47%, 10/07/10 | 2,756 | 2,756,000 |
100,187,000 |
Par | ||
Municipal Bonds | (000) | Value |
Puerto Rico — 1.8% | ||
Commonwealth of Puerto Rico, Austin Trust, | ||
Refunding RB, VRDN Certificates, Bank of America, | ||
Series 2008-355 (Bank of America NA LOC, | ||
Bank of America NA SBPA), 0.43%, | ||
10/07/10 (a)(b) | $ 3,100 | $ 3,100,000 |
Puerto Rico Electric Power Authority, Puttable | ||
Floating Option Tax-Exempt Receipts, Refunding | ||
RB, FLOATS, VRDN, Series 4147 (AGM Insurance, | ||
Dexia Credit Local LOC, Dexia Credit Local SBPA), | ||
0.49%, 10/07/10 (a)(b) | 33,330 | 33,330,000 |
Puerto Rico Highway & Transportation Authority, | ||
Refunding RB, FLOATS, VRDN, Series PT-3189 | ||
(Dexia Credit Local LOC, Dexia Credit Local SBPA), | ||
0.49%, 10/07/10 (a)(b) | 44,980 | 44,980,000 |
81,410,000 | ||
Rhode Island — 1.4% | ||
Narragansett Bay Commission, RB, ROCS, VRDN, | ||
Series II-R-780PB (BHAC Insurance, PB Capital | ||
Corp. SBPA), 0.34%, 10/07/10 (a)(b) | 17,465 | 17,465,000 |
State of Rhode Island, GO, TAN, Series R-1, | ||
2.00%, 6/30/11 | 48,250 | 48,788,148 |
66,253,148 | ||
South Carolina — 1.5% | ||
City of Spartanburg South Carolina, RB, ROCS, | ||
VRDN, Series II-R-11020PB (AGM Insurance, PB | ||
Capital Corp. SBPA), 0.34%, 10/07/10 (a)(b) | 13,410 | 13,410,000 |
Greenville Hospital System Board, Refunding RB, | ||
VRDN, Series C (Bank of America NA LOC), | ||
0.33%, 10/07/10 (a) | 4,500 | 4,500,000 |
South Carolina Jobs, EDA, Macon Trust, RB, VRDN | ||
Certificates, Bank of America, Series 2007-303 | ||
(Bank of America NA LOC, Bank of America NA | ||
SBPA), 0.37%, 10/07/10 (a)(b) | 7,480 | 7,480,000 |
South Carolina Jobs, EDA, Refunding RB, VRDN, | ||
UMA Refinance Project (Wells Fargo Bank NA | ||
LOC), 0.28%, 10/01/10 (a) | 4,785 | 4,785,000 |
South Carolina State Public Service Authority, RB, | ||
VRDN, Eagle Tax-Exempt Trust, Series 2006-0007, | ||
Class A (Citibank NA SBPA), 0.31%, | ||
10/07/10 (a)(b) | 11,500 | 11,500,000 |
South Carolina Transportation Infrastructure Bank, | ||
Refunding RB, VRDN (a): | ||
Series B1 (Bank of America NA LOC), 0.28%, | ||
10/07/10 | 5,280 | 5,280,000 |
Series B2 (Branch Banking & Trust LOC), 0.26%, | ||
10/07/10 | 4,765 | 4,765,000 |
Spartanburg County Regional Health Services | ||
District, Refunding RB, VRDN, Series C (AGC | ||
Insurance, Bank of America NA SBPA), | ||
0.29%, 10/07/10 (a) | 18,370 | 18,370,000 |
70,090,000 | ||
Tennessee — 2.7% | ||
Clarksville Public Building Authority Tennessee, RB, | ||
VRDN, Pooled Financing, Tennessee Municipal | ||
Bond Fund (Bank of America NA LOC), | ||
0.34%, 10/07/10 (a) | 40,600 | 40,600,000 |
See Notes to Financial Statements.
20 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Schedule of Investments (continued)
Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Tennessee (concluded) | ||
County of Shelby Tennessee, GO, VRDN, Public | ||
Improvement, School, Series B (Landesbank | ||
Hessen-Thuringen SBPA), 0.35%, 10/07/10 (a) | $ 55,970 | $ 55,970,000 |
Metropolitan Government of Nashville & Davidson | ||
County Health & Educational Facilities Board, | ||
Refunding RB, FLOATS, VRDN (Morgan Stanley | ||
Bank Liquidity Facility) (a)(b)(c): | ||
Series 3012, 0.31%, 10/07/10 | 5,305 | 5,305,000 |
Series 3013, 0.30%, 10/07/10 | 10,000 | 10,000,000 |
Metropolitan Government of Nashville & Davidson | ||
County IDB, RB, VRDN, Nashville Symphony Hall | ||
Project (Bank of America NA LOC), 0.34%, | ||
10/07/10 (a) | 12,678 | 12,678,000 |
Montgomery County Public Building Authority | ||
Tennessee, RB, VRDN, Tennessee County Loan | ||
Pool (Bank of America NA LOC), 0.34%, | ||
10/07/10 (a) | 1,530 | 1,530,000 |
126,083,000 | ||
Texas — 17.3% | ||
Brazos Harbor Industrial Development Corp., RB, | ||
VRDN, AMT (a): | ||
BASF Corp. Project, 0.44%, 10/07/10 | 75,000 | 75,000,000 |
ConocoPhillips Co. Project, 0.34%, 10/07/10 | 10,500 | 10,500,000 |
Brazos River Harbor Navigation District, RB, VRDN, | ||
AMT, BASF Corp. (a): | ||
Multi-Mode, 0.44%, 10/07/10 | 15,800 | 15,800,000 |
Project, 0.44%, 10/07/10 | 18,400 | 18,400,000 |
City of Austin Texas, Refunding RB, VRDN, AMT | ||
(AGM Insurance, Dexia Credit Local SBPA) (a): | ||
Sub-Series 3, 0.35%, 10/07/10 | 49,925 | 49,925,000 |
Sub-Series 4, 0.35%, 10/07/10 | 52,595 | 52,595,000 |
City of Brownsville Texas, Deutsche Bank SPEARS/ | ||
LIFERS Trust, RB, SPEARS, VRDN, Series DBE-533 | ||
(Deutsche Bank AG LOC, Deutsche Bank AG | ||
SBPA), 0.31%, 10/07/10 (a)(b) | 1,750 | 1,750,000 |
City of Houston Texas, GO, TRAN, 2.00%, 6/30/11 | 19,300 | 19,528,560 |
City of Houston Texas, Puttable Floating Option | ||
Tax-Exempt Receipts, Refunding RB, FLOATS, | ||
VRDN, Series 4159 (AGM Insurance, Dexia Credit | ||
Local LOC, Dexia Credit Local SBPA), 0.50%, | ||
10/07/10 (a)(b) | 10,920 | 10,920,000 |
City of Midland Texas, GO, ROCS, VRDN, Series | ||
II-R-810PB (PB Capital Corp. SBPA), 0.34%, | ||
10/07/10 (a)(b) | 10,690 | 10,690,000 |
City of San Antonio Texas, Refunding RB, VRDN, | ||
Subordinate Lien (Wells Fargo Bank NA LOC), | ||
0.28%, 10/07/10 (a) | 20,420 | 20,420,000 |
County of Fort Bend Texas, GO, MSTR, VRDN, Series | ||
SGB 46, Class A (Societe Generale SBPA), | ||
0.30%, 10/07/10 (a)(b) | 4,500 | 4,500,000 |
County of Harris Texas, Clipper Tax-Exempt | ||
Certificate Trust, GO, VRDN, Series 2009-73 | ||
(State Street Bank & Trust Co. SBPA), 0.33%, | ||
10/07/10 (a)(b)(c) | 10,000 | 10,000,000 |
County of Harris Texas, GO, ROCS, VRDN, Series | ||
II-R-10360 (Citibank NA SBPA), 0.30%, | ||
10/07/10 (a)(b)(c) | 7,175 | 7,175,000 |
County of Harris Texas, RB, MSTR, VRDN, Series | ||
SGC 31, Class A (Societe Generale LOC), | ||
0.27%, 10/07/10 (a)(b) | 11,280 | 11,280,000 |
Par | ||
Municipal Bonds | (000) | Value |
Texas (concluded) | ||
County of Harris Texas, Refunding RB, Toll Road, | ||
Senior Lien, Series A-2, Mandatory Put Bonds, | ||
0.35%, 8/15/11 (a) | $ 21,865 | $ 22,179,345 |
Cypress-Fairbanks ISD, GO, FLOATS, VRDN, Series | ||
86TP (Wells Fargo Bank NA SBPA), 0.31%, | ||
10/07/10 (a)(b) | 2,555 | 2,555,000 |
Denton ISD Texas, GO, VRDN, Building, Series | ||
2005-A (Bank of America NA SBPA), 0.31%, | ||
10/07/10 (a) | 2,500 | 2,500,000 |
Galena Park ISD Texas, GO, Refunding, FLOATS, VRDN, | ||
Series SG-153 (PSF-GTD Insurance, Societe | ||
Generale SBPA), 0.30%, 10/07/10 (a)(b) | 12,250 | 12,250,000 |
Gulf Coast Waste Disposal Authority, RB, VRDN, AMT (a): | ||
Air Products Project, 0.50%, 10/07/10 | 2,200 | 2,200,000 |
American Acryl LP Project (Credit Industriel et | ||
Commercial LOC), 0.40%, 10/07/10 | 19,000 | 19,000,000 |
Harris County Health Facilities Development Corp., | ||
RB, VRDN, Baylor College of Medicine, Series B | ||
(JPMorgan Chase Bank LOC), 0.30%, 10/01/10 (a) | 35,010 | 35,010,000 |
Katy ISD Texas, GO, VRDN, School Building (PSF-GTD | ||
Insurance, Bank of America NA SBPA), 0.30%, | ||
10/07/10 (a) | 5,500 | 5,500,000 |
Mesquite Industrial Development Corp. Texas, IDRB, | ||
VRDN, Morrison Products, AMT (KeyBank NA LOC), | ||
0.45%, 10/07/10 (a) | 800 | 800,000 |
North Texas Municipal Water District, RB, ROCS, | ||
VRDN, Series II-R-593PB (PB Capital Corp. SBPA), | ||
0.34%, 10/07/10 (a)(b) | 8,410 | 8,410,000 |
North Texas Tollway Authority, Deutsche Bank SPEARS/ | ||
LIFERS Trust, Refunding RB, SPEARS, VRDN, Series | ||
DB-626 (AGC Insurance, Deutsche Bank AG SBPA), | ||
0.31%, 10/07/10 (a)(b) | 11,487 | 11,487,000 |
Port Arthur Navigation District Texas, RB, VRDN, | ||
Air Products & Chemicals Project, AMT, 0.53%, | ||
10/07/10 (a) | 10,000 | 10,000,000 |
Port of Corpus Christi Authority of Nueces County | ||
Texas, Refunding RB, VRDN, Flint Hills Resource, | ||
Series A, AMT, 0.34%, 10/07/10 (a) | 22,650 | 22,650,000 |
Port of Port Arthur Navigation District, Refunding RB, | ||
VRDN, Motiva Enterprises Project, AMT, 0.34%, | ||
10/07/10 (a) | 17,335 | 17,335,000 |
San Antonio ISD Texas, GO, Refunding, VRDN, Eagle | ||
Tax-Exempt Trust, Series 2009-0037, Class A | ||
(PSF-GTD Insurance, Citibank NA SBPA), 0.31%, | ||
10/07/10 (a)(b)(c) | 5,000 | 5,000,000 |
Sheldon ISD Texas, GO, PUTTERS, VRDN, Series 2009 | ||
(PSF-GTD Insurance, JPMorgan Chase & Co. SBPA), | ||
0.33%, 10/07/10 (a)(b) | 5,180 | 5,180,000 |
Socorro ISD Texas, GO, ROCS, VRDN, Series | ||
II-R-11540PB (PSF-GTD Insurance, PB Capital | ||
Corp. SBPA), 0.34%, 10/07/10 (a)(b)(c) | 12,660 | 12,660,000 |
State of Texas, RB, TRAN, 2.00%, 8/31/11 | 228,050 | 231,429,669 |
Tarrant County Cultural Education Facilities Finance | ||
Corp., RB, FLOATS, VRDN (Morgan Stanley Bank | ||
Liquidity Facility) (a)(b)(c): | ||
Series 2973, 0.30%, 10/07/10 | 36,000 | 36,000,000 |
Series 2974, 0.30%, 10/07/10 | 12,000 | 12,000,000 |
Wells Fargo Stage Trust, Refunding RB, FLOATS, VRDN, | ||
Series 12C (Wells Fargo Bank NA Liquidity Facility), | ||
0.40%, 3/01/11 (a)(b)(c) | 3,390 | 3,390,000 |
796,019,574 |
See Notes to Financial Statements.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
21
Schedule of Investments (continued)
Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Utah — 0.1% | ||
State of Utah, GO, FLOATS, VRDN, Series 2987 | ||
(Morgan Stanley Bank Liquidity Facility), | ||
0.30%, 10/07/10 (a)(b)(c) | $ 6,000 | $ 6,000,000 |
Virginia — 2.2% | ||
Arlington County IDA, Refunding HRB, VRDN, | ||
Woodbury Park Project, Series A (Freddie Mac), | ||
0.30%, 10/07/10 (a) | 4,600 | 4,600,000 |
City of Richmond Virginia, RB, ROCS, VRDN, Series | ||
II-R-10410 (AGM Insurance, Citibank NA SBPA), | ||
0.27%, 10/07/10 (a)(b)(c) | 2,655 | 2,655,000 |
County of Henrico Virginia, RB, ROCS, VRDN, Series | ||
II-R-753PB (PB Capital Corp. SBPA), 0.33%, | ||
10/07/10 (a)(b) | 4,685 | 4,685,000 |
Fairfax County IDA, RB, VRDN (a): | ||
Health Care, Inova Health, 0.42%, 4/28/11 | 3,000 | 3,000,000 |
Inova Health System Project, Series A-2 | ||
(JPMorgan Chase Bank SBPA), 0.30%, 10/01/10 | 13,795 | 13,795,000 |
Inova Health System Project, Series C-1, | ||
0.30%, 10/01/10 | 8,825 | 8,825,000 |
Roanoke Economic Development Authority, RB, | ||
Carilion Health System, Series A-2 (AGM Insurance, | ||
Wells Fargo Bank NA SBPA), 0.28%, 10/01/10 (a) | 9,000 | 9,000,000 |
Virginia College Building Authority, RB, VRDN (Wells | ||
Fargo Bank NA SBPA), 21St Century College (a): | ||
Series B, 0.28%, 10/01/10 | 16,430 | 16,430,000 |
Series C, 0.28%, 10/01/10 | 13,025 | 13,025,000 |
Virginia Commonwealth Transportation Board, Clipper | ||
Tax-Exempt Certificate Trust, RB, VRDN, Series | ||
2009-38 (State Street Bank & Trust Co. SBPA), | ||
0.30%, 10/07/10 (a)(b) | 13,060 | 13,060,000 |
Virginia HDA, RB, MERLOTS, VRDN, Series B19, AMT | ||
(Wells Fargo Bank NA SBPA), 0.34%, | ||
10/07/10 (a)(b) | 3,000 | 3,000,000 |
Virginia HDA, Refunding RB, MERLOTS, VRDN, | ||
Series C42, AMT (Wells Fargo Bank NA SBPA), | ||
0.34%, 10/07/10 (a)(b) | 2,880 | 2,880,000 |
Virginia Public Building Authority, RB, VRDN, Series D | ||
(Dexia Credit Local SBPA), 0.35%, 10/07/10 (a) | 1,000 | 1,000,000 |
Virginia Resources Authority, Refunding RB, FLOATS, | ||
VRDN, Series 1860 (Wells Fargo Bank NA SBPA), | ||
0.29%, 10/07/10 (a)(b) | 4,715 | 4,715,000 |
Winchester IDA Virginia, Refunding RB, VRDN, | ||
Westminster-Canterbury, Series B (Branch | ||
Banking & Trust LOC), 0.30%, 10/07/10 (a) | 1,200 | 1,200,000 |
101,870,000 | ||
Washington — 1.8% | ||
Chelan County Public Utility District No. 1, RB, | ||
FLOATS, VRDN, Series 2969, AMT (Morgan Stanley | ||
Bank Liquidity Facility), 0.40%, 10/07/10 (a)(b)(c) | 6,770 | 6,770,000 |
City of Seattle Washington, RB, FLOATS, VRDN, Series | ||
2170 (AGM Insurance, Wells Fargo Bank NA SBPA), | ||
0.29%, 10/07/10 (a)(b) | 2,530 | 2,530,000 |
County of King Washington (Bayerische Landesbank | ||
SBPA), TECP : | ||
0.32%, 10/01/10 | 20,000 | 20,000,000 |
0.33%, 11/08/10 | 31,300 | 31,300,000 |
Pierce County EDC Washington, RB, VRDN, PNW | ||
Commercial LLC Project, AMT (KeyBank NA LOC), | ||
0.56%, 10/07/10 (a) | 1,995 | 1,995,000 |
Par | ||
Municipal Bonds | (000) | Value |
Washington (concluded) | ||
State of Washington, GO, ROCS, VRDN, Series | ||
II-R-11308 (Citibank NA SBPA), 0.30%, | ||
10/07/10 (a)(b)(c) | $ 2,960 | $ 2,960,000 |
Washington State University, RB, ROCS, VRDN, | ||
Series II-R-595PB (PB Capital Corp. SBPA), | ||
0.34%, 10/07/10 (a)(b) | 16,120 | 16,120,000 |
81,675,000 | ||
Wisconsin — 0.9% | ||
State of Wisconsin, TECP, 0.40% due 12/08/10 | 38,742 | 38,742,000 |
Village of Kohler Wisconsin, RB, VRDN, Kohler Co. | ||
Project, AMT (Wachovia Bank NA LOC), | ||
0.41%, 10/07/10 (a) | 4,000 | 4,000,000 |
42,742,000 | ||
Wyoming — 0.2% | ||
County of Lincoln Wyoming, RB, PacifiCorp Project | ||
(Wells Fargo Bank NA LOC), 0.28%, 10/07/10 (a) | 11,250 | 11,250,000 |
Total Investments (Cost — $4,531,052,526*) — 98.3% | 4,531,052,526 | |
Other Assets Less Liabilities — 1.7% | 77,996,101 | |
Net Assets — 100.0% | $ 4,609,048,627 |
* Cost for federal income tax purposes.
(a) Variable rate security. Rate shown is as of report date and maturity shown is the
date the principal owed can be recovered through demand.
(b) These securities are short-term floating rate certificates issued by tender option
bond trusts and are secured by the underlying municipal bond securities.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to quali-
fied institutional investors.
(d) Variable rate security. Rate shown is as of report date.
(e) When-issued security. Unsettled when-issued transactions were as follows:
Unrealized | ||
Appreciation | ||
Counterparty | Value | (Depreciation) |
Robert C. Baird & Co. | $ 8,242,476 | — |
See Notes to Financial Statements.
22 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Schedule of Investments (concluded) Master Tax-Exempt LLC
• Fair Value Measurements — Various inputs are used in determining the fair value
of investments, which are as follows:
• Level 1 — price quotations in active markets/exchanges for identical 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 liabili-
ties (such as interest rates, yield curves, volatilities, prepayment speeds, loss
severities, credit risks and default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including
the Master LLC's own assumptions used in determining the fair value of
investments)
The inputs or methodologies used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities. For infor-
mation about the Master LLC's policy regarding valuation of investments and
other significant accounting policies, please refer to Note 1 of the Notes to
Financial Statements.
The following table summarizes the inputs used as of September 30, 2010 in
determining the fair valuation of the Master LLC's investments:
Valuation Inputs | Level 1 | Level 21 | Level 3 | Total |
Assets: | ||||
Investments in Securities: | ||||
Municipal Bonds1 — | $4,531,052,526 | — | $4,531,052,526 |
1 See above Schedule of Investments for values in each state or
political subdivision.
See Notes to Financial Statements.
BBIF TAX-EXEMPT FUND SEPTEMBER 30, 2010 23
Statement of Assets and Liabilities
September 30, 2010 (Unaudited) | Master Tax-Exempt LLC |
Assets | |
Investments at value — unaffiliated | |
(cost — $4,531,052,526) | $ 4,531,052,526 |
Cash | 215,402 |
Investments sold receivable | 79,400,713 |
Interest receivable | 5,023,499 |
Contributions receivable from investors | 2,397,898 |
Prepaid expenses | 210,194 |
Total assets | 4,618,300,232 |
Liabilities | |
Investments purchased payable | 8,242,476 |
Investment advisory fees payable | 582,605 |
Other affiliates payable | 28,428 |
Directors' fees payable | 2,590 |
Other accrued expenses payable | 395,506 |
Total liabilities | 9,251,605 |
Net Assets | $ 4,609,048,627 |
Net Assets Consist of | |
Investors’ capital | $ 4,609,048,627 |
Statement of Operations
Six Months Ended September 30, 2010 (Unaudited) | Master Tax-Exempt LLC |
Investment Income | |
Interest | $ 13,050,902 |
Expenses | |
Investment advisory | 4,090,233 |
Accounting services | 251,050 |
Directors | 91,649 |
Custodian | 85,623 |
Professional | 43,365 |
Printing | 26,445 |
Miscellaneous | 133,167 |
Total expenses | 4,721,532 |
Net investment income | 8,329,370 |
Realized Gain | |
Realized gain from investments | 185,365 |
Net Increase in Net Assets Resulting from Operations | $ 8,514,735 |
See Notes to Financial Statements.
24 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Statements of Changes in Net Assets | Master Tax-Exempt LLC | |||||
Six Months | ||||||
Ended | Year Ended | |||||
September 30, 2010 March 31, | ||||||
Increase (Decrease) in Net Assets: | (Unaudited) | 2010 | ||||
Operations | ||||||
Net investment income | $ 8,329,370 | $ 39,096,247 | ||||
Net realized gain | 185,365 | 252,491 | ||||
Net increase in net assets resulting from operations | 8,514,735 | 39,348,738 | ||||
Capital Transactions | ||||||
Proceeds from contributions | 15,488,833,171 | 47,760,181,661 | ||||
Value of withdrawals | (17,383,820,151) | (52,667,487,942) | ||||
Net decrease in net assets derived from capital transactions | (1,894,986,980) | (4,907,306,281) | ||||
Net Assets | ||||||
Total decrease in net assets | (1,886,472,245) | (4,867,957,543) | ||||
Beginning of period | 6,495,520,872 | 11,363,478,415 | ||||
End of period | $ 4,609,048,627 | $ 6,495,520,872 | ||||
Financial Highlights | Master Tax-Exempt LLC | |||||
Six Months Ended | ||||||
September 30, | ||||||
2010 | Year Ended March 31, | |||||
(Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |
Total Investment Return | ||||||
Total investment return | 0.15%1 | 0.42% | 1.68% | 3.34% | 3.45% | 2.64% |
Ratios to Average Net Assets | ||||||
Total expenses | 0.16%2 | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% |
Net investment income | 0.29%2 | 0.43% | 1.67% | 3.28% | 3.44% | 2.61% |
Supplemental Data | ||||||
Net assets, end of period (000) | $ 4,609,049 | $ 6,495,521 | $11,363,478 | $12,113,046 | $10,143,538 | $ 9,524,737 |
1 Aggregate total investment return. | ||||||
2 Annualized. |
See Notes to Financial Statements.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
25
Notes to Financial Statements (Unaudited) Master Tax-Exempt LLC
1. Organization and Significant Accounting Policies:
Master Tax-Exempt 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 non-transferable interests in the
Master LLC, subject to certain limitations. The Master LLC’s financial
statements are prepared in conformity with accounting principles gener-
ally accepted in the United States of America, which may require man-
agement to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results
could differ from those estimates.
The following is a summary of significant accounting policies followed
by the Master LLC:
Valuation: The Master LLC's policy is to fair value its financial instru-
ments at market value. The Master LLC's investments are valued under
the amortized cost method which approximates current market value
in accordance with Rule 2a-7 of the 1940 Act. Under this method,
securities are valued at cost when purchased and thereafter, a constant
proportionate accretion and amortization of any discount or premium is
recorded until the maturity of the security.
Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses on
investment transactions are determined on the identified cost basis.
Interest income, including amortization of premium and accretion of
discount on debt securities, is recognized on the accrual basis.
Income Taxes: The Master LLC is classified as a partnership for federal
income tax purposes. As such, each investor in the Master LLC is treated
as owner of its proportionate share of the net assets, income, expenses
and realized and unrealized gains and losses of the Master LLC. There-
fore, no federal income tax provision is required. It is intended that the
Master LLC's assets will be managed so an investor in the Master LLC
can satisfy the requirements of Subchapter M of the Internal Revenue
Code of 1986, as amended.
The Master LLC files US federal and various state and local tax returns.
No income tax returns are currently under examination. The statute of
limitations on the Master LLC's US federal tax returns remains open for
each of the four years ended March 31, 2010. The statutes of limitations
on the Master LLC's state and local tax returns may remain open for an
additional year depending upon the jurisdiction. There are no uncertain
tax positions that require recognition of a tax liability.
Other: Expenses directly related to the Master LLC are charged to the
Master LLC. Other operating expenses shared by several funds are pro
rated among those funds on the basis of relative net assets or other
appropriate methods. The Master LLC has an arrangement with the cus-
todian whereby fees may be reduced by credits earned on uninvested
cash balances, which if applicable are shown as fees paid indirectly in
the Statement of Operations. The custodian imposes fees on overdrawn
cash balances, which can be offset by accumulated credits earned or
may result in additional custody charges.
2. Investment Advisory Agreement and Other Transactions
with Affiliates:
The PNC Financial Services Group, Inc. ("PNC"), 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 Master LLC 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 Master LLC's investment
advisor, an indirect, wholly owned subsidiary of BlackRock, to provide
investment advisory and administration services. The Manager is respon-
sible for the management of the Master LLC's portfolio and provides the
necessary personnel, facilities, equipment and certain other services
necessary to the operations of the Master LLC. For such services, the
Master LLC pays the Manager a monthly fee at the following annual
rates of the Master LLC's average daily net assets:
Not exceeding $500 million | 0.250% |
In excess of $500 million, but not exceeding $1 billion | 0.175% |
In excess of $1 billion | 0.125% |
The Manager entered into a sub-advisory agreement with BlackRock
Investment Management, LLC (“BIM”), an affiliate of the Manager.
The Manager pays BIM for services it provides, a monthly fee that is
a percentage of the investment advisory fees paid by the Master LLC to
the Manager.
For the six months ended September 30, 2010, the Master LLC reim-
bursed the Manager $69,428 for certain accounting services, which is
included in accounting services in the Statement of Operations.
Certain officers and/or directors of the Master LLC are officers and/or
directors of BlackRock or its affiliates.
3. Market and Credit Risk:
In the normal course of business, the Master LLC invests in securities
and enters into transactions where risks exist due to fluctuations in the
market (market risk) or failure of the issuer of a security to meet all its
obligations (issuer credit risk). The value of securities held by the Master
26 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Notes to Financial Statements (concluded)
Master Tax-Exempt LLC
LLC may decline in response to certain events, including those directly
involving the issuers whose securities are owned by the Master LLC; con-
ditions affecting the general economy; overall market changes; local,
regional or global political, social or economic instability; and currency
and interest rate and price fluctuations. Similar to issuer credit risk, the
Master LLC may be exposed to counterparty credit risk, or the risk that
an entity with which the Master LLC has unsettled or open transactions
may fail to or be unable to perform on its commitments. The Master LLC
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 counterpar-
ties. Financial assets, which potentially expose the Master LLC to market,
issuer and counterparty credit risks, consist principally of financial
instruments and receivables due from counterparties. The extent of the
Master LLC's exposure to market, issuer and counterparty credit risks
with respect to these financial assets is generally approximated by their
value recorded in the Master LLC's Statement of Assets and Liabilities,
less any collateral held by the Master LLC.
4. Subsequent Events:
Management has evaluated the impact of all subsequent events on the
Master LLC through the date the financial statements were issued and
has determined that there were no subsequent events requiring adjust-
ment or additional disclosure in the financial statements.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
27
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement
The Board of Directors of Master Tax-Exempt LLC (the “Master LLC”) met
on April 20, 2010 and May 18 — 19, 2010 to consider the approval of
the Master LLC’s investment advisory agreement (the “Advisory
Agreement”) with BlackRock Advisors, LLC (the “Manager”), the Master
LLC’s investment advisor. The Board of Directors of the Master LLC
also considered the approval of the sub-advisory agreement (the “Sub-
Advisory Agreement”) between the Manager and BlackRock Investment
Management, LLC (the “Sub-Advisor”), with respect to the Master LLC.
BBIF Tax-Exempt Fund (the “Fund”) is a “feeder” fund that invests all
of its investable assets in the Master LLC. Accordingly, the Board of
Trustees of the Fund also considered the approval of the Advisory
Agreement and the Sub-Advisory Agreement with respect to the Master
LLC. The Manager and the Sub-Advisor are referred to herein as
“BlackRock.” The Advisory Agreement and the Sub-Advisory Agreement
are referred to herein as the “Agreements.” For simplicity, the Board of
Directors of the Master LLC and the Board of Trustees of the Fund are
referred to herein collectively as the “Board,” and the members are
referred to as “Board Members.”
Activities and Composition of the Board
The Board consists of thirteen individuals, eleven of whom are not
“interested persons” of the Master LLC or the Fund as defined in the
Investment Company Act of 1940, as amended (the “1940 Act”) (the
“Independent Board Members”). The Board Members are responsible for
the oversight of the operations of the Master LLC or the Fund, as perti-
nent, and perform the various duties imposed on the directors of invest-
ment companies by the 1940 Act. The Independent Board Members
have retained independent legal counsel to assist them in connection
with their duties. The Co-Chairs of the Board are each Independent
Board Members. The Board has established five standing committees:
an Audit Committee, a Governance and Nominating Committee, a
Compliance Committee, a Performance Oversight and Contract
Committee and an Executive Committee, each of which is composed of
Independent Board Members (except for the Executive Committee, which
also has one interested Board Member) and is chaired by Independent
Board Members.
The Agreements
Pursuant to the 1940 Act, the Board is required to consider the continu-
ation of the Agreements on an annual basis. In connection with this
process, the Board assessed, among other things, the nature, scope and
quality of the services provided to the Master LLC and the Fund by the
personnel of BlackRock and its affiliates, including investment manage-
ment, administrative and shareholder services, oversight of fund
accounting and custody, marketing services and assistance in meeting
applicable legal and regulatory requirements.
From time to time throughout the year, the Board, acting directly and
through its committees, considers at each of its meetings factors that
are relevant to its annual consideration of the renewal of the
Agreements, including the services and support provided by BlackRock
to the Master LLC, the Fund and their shareholders. Among the matters
the Board considered were: (a) investment performance for one-, three-
and five-year periods, as applicable, against peer funds, and applicable
benchmarks, if any, as well as senior management’s and portfolio man-
agers’ analysis of the reasons for any over performance or underperfor-
mance against its peers and/or benchmark, as applicable; (b) fees,
including advisory, administration, if applicable, and other amounts paid
to BlackRock and its affiliates by the Master LLC and/or the Fund for
services, such as transfer agency, marketing and distribution, call center
and fund accounting; (c) Master LLC’s and/or the Fund’s operating
expenses; (d) the resources devoted to and compliance reports relating
to the Master LLC’s and the Fund’s investment objective, policies and
restrictions, (e) the Master LLC’s and the Fund’s compliance with its
respective Code of Ethics and compliance policies and procedures; (f)
the nature, cost and character of non-investment management services
provided by BlackRock and its affiliates; (g) BlackRock’s and other serv-
ice providers’ internal controls; (h) BlackRock’s implementation of the
proxy voting policies approved by the Board; (i) execution quality of port-
folio transactions; (j) BlackRock’s implementation of the Master LLC’s
and/or the Fund’s valuation and liquidity procedures; (k) an analysis of
contractual and actual management fees for products with similar
investment objectives across the open-end fund and institutional
account product channels, as applicable; and (l) periodic updates on
BlackRock’s business.
Board Considerations in Approving the Agreements
The Approval Process: Prior to the April 20, 2010 meeting, the Board
requested and received materials specifically relating to the Agreements.
The Board is engaged in a process with BlackRock to periodically review
the nature and scope of the information provided to better assist its
deliberations. The materials provided in connection with the April meet-
ing included (a) information independently compiled and prepared by
Lipper, Inc. (“Lipper”) on fees and expenses of the Master LLC and the
Fund, as applicable, and the investment performance of the Fund as
compared with a peer group of funds as determined by Lipper (collec-
tively, “Peers”); (b) information on the profitability of the Agreements to
BlackRock and a discussion of fall-out benefits to BlackRock and its
affiliates and significant shareholders; (c) a general analysis provided by
BlackRock concerning investment advisory fees charged to other clients,
such as institutional clients, under similar investment mandates, as well
as the performance of such other clients, as applicable; (d) the impact
of economies of scale; (e) a summary of aggregate amounts paid by the
Master LLC and/or the Fund to BlackRock; (f) sales and redemption
data regarding the Fund’s shares; and (g) if applicable, a comparison
28 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (continued)
of management fees to similar BlackRock open-end funds, as classified
by Lipper.
At an in-person meeting held on April 20, 2010, the Board reviewed
materials relating to its consideration of the Agreements. As a result of
the discussions that occurred during the April 20, 2010 meeting,
the Board presented BlackRock with questions and requests for addi-
tional information and BlackRock responded to these requests with
additional written information in advance of the May 18 — 19, 2010
Board meeting.
At an in-person meeting held on May 18 — 19, 2010, the Board of the
Master LLC, including the Independent Board Members, unanimously
approved the continuation of the Advisory Agreement between the
Manager and the Master LLC and the Sub-Advisory Agreement between
the Manager and the Sub-Advisor with respect to the Master LLC, each
for a one-year term ending June 30, 2011. The Board of the Fund,
including the Independent Board Members, also considered the continu-
ation of the Agreements and found the Agreements to be satisfactory. In
approving the continuation of the Agreements, the Board considered: (a)
the nature, extent and quality of the services provided by BlackRock; (b)
the investment performance of the Master LLC, the Fund and BlackRock;
(c) the advisory fee and the cost of the services and profits to be real-
ized by BlackRock and its affiliates from their relationship with the
Master LLC and the Fund; (d) economies of scale; and (e) other factors
deemed relevant by the Board Members.
The Board also considered other matters it deemed important to the
approval process, such as payments made to BlackRock or its affiliates
relating to the distribution of Fund shares, services related to the valua-
tion and pricing of portfolio holdings of the Master LLC, direct and indi-
rect benefits to BlackRock and its affiliates and significant shareholders
from their relationship with the Master LLC and the Fund and advice
from independent legal counsel with respect to the review process and
materials submitted for the Board’s review. The Board noted the willing-
ness of BlackRock personnel to engage in open, candid discussions with
the Board. The Board did not identify any particular information as con-
trolling, and each Board Member may have attributed different weights
to the various items considered.
A. Nature, Extent and Quality of the Services Provided by BlackRock:
The Board, including the Independent Board Members, reviewed the
nature, extent and quality of services provided by BlackRock, including
the investment advisory services and the resulting performance of the
Fund. Throughout the year, the Board compared the Fund’s performance
to the performance of a comparable group of mutual funds, and the per-
formance of a relevant benchmark, if any. The Board met with BlackRock’s
senior management personnel responsible for investment operations,
including the senior investment officers. The Board also reviewed the
materials provided by the Master LLC’s portfolio management team
discussing Master LLC performance and the Master LLC’s investment
objective, strategies and outlook.
The Board considered, among other factors, the number, education and
experience of BlackRock’s investment personnel generally and the
Master LLC’s portfolio management team, investments by portfolio man-
agers in the funds they manage, BlackRock’s portfolio trading capabili-
ties, BlackRock’s use of technology, BlackRock’s commitment to
compliance, BlackRock’s credit analysis capabilities, BlackRock’s risk
analysis capabilities and BlackRock’s approach to training and retaining
portfolio managers and other research, advisory and management
personnel. The Board also reviewed a general description of BlackRock’s
compensation structure with respect to the Master LLC’s portfolio
management team and BlackRock’s ability to attract and retain high-
quality talent.
In addition to advisory services, the Board considered the quality of the
administrative and non-investment advisory services provided to the
Master LLC and the Fund. BlackRock and its affiliates and significant
shareholders provide the Master LLC and the Fund with certain adminis-
trative, transfer agency, shareholder and other services (in addition to
any such services provided to the Master LLC and the Fund by third par-
ties) and officers and other personnel as are necessary for the opera-
tions of the Master LLC and the Fund. In addition to investment advisory
services, BlackRock and its affiliates provide the Master LLC and the
Fund with other services, including (i) preparing disclosure documents,
such as the prospectus, the statement of additional information and
periodic shareholder reports; (ii) assisting with daily accounting and
pricing; (iii) overseeing and 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;
and (vi) performing other administrative functions necessary for the
operation of the Master LLC and the Fund, such as tax reporting, fulfill-
ing regulatory filing requirements, and call center services. The Board
reviewed the structure and duties of BlackRock’s fund administration,
accounting, legal and compliance departments and considered
BlackRock’s policies and procedures for assuring compliance with
applicable laws and regulations.
B. The Investment Performance of the Master LLC, the Fund and
BlackRock: The Board, including the Independent Board Members, also
reviewed and considered the performance history of the Master LLC and
the Fund, as applicable. The Board noted that the Master LLC’s invest-
ment results correspond directly to the investment results of the Fund. In
preparation for the April 20, 2010 meeting, the Board was provided with
reports, independently prepared by Lipper, which included a comprehen-
sive analysis of the Fund’s performance. The Board also reviewed a nar-
rative and statistical analysis of the Lipper data that was prepared by
BlackRock, which analyzed various factors that affect Lipper’s rankings.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
29
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (continued)
In connection with its review, the Board received and reviewed informa-
tion regarding the investment performance of the Fund as compared to a
representative group of similar funds as determined by Lipper and to all
funds in the Fund’s applicable Lipper category. The Board was provided
with a description of the methodology used by Lipper to select peer
funds. The Board regularly reviews the performance of the Master LLC
and the Fund, as applicable, throughout the year. The Board attaches
more importance to performance over relatively long periods of time,
typically three to five years.
The Board noted that, in general, the Fund performed better than its
Peers in that the Fund’s performance was at or above the median of its
Lipper Performance Universe in each of the one-, three- and five-year
periods reported.
C. Consideration of the Advisory Fees and the Cost of the Services and
Profits to be Realized by BlackRock and its Affiliates from their
Relationship with the Master LLC and the Fund: The Board, including
the Independent Board Members, reviewed the Master LLC’s contractual
advisory fee rate compared with the other funds in the Fund’s Lipper
category. It also compared the Fund’s total expenses, as well as actual
management fees, to those of other funds in its Lipper category. The
Board considered the services provided and the fees charged by
BlackRock to other types of clients with similar investment mandates,
including separately managed institutional accounts.
The Board received and reviewed statements relating to BlackRock’s
financial condition and profitability with respect to the services it pro-
vided the Master LLC and the Fund. The Board was also provided with a
profitability analysis that detailed the revenues earned and the expenses
incurred by BlackRock for services provided to the Master LLC and the
Fund. The Board reviewed BlackRock’s profitability with respect to the
Master LLC and the Fund, as applicable, and other funds the Board cur-
rently oversees for the year ended December 31, 2009 compared to
available aggregate profitability data provided for the year ended
December 31, 2008. The Board reviewed BlackRock’s profitability with
respect to other fund complexes managed by the Manager and/or its
affiliates. The Board reviewed BlackRock’s assumptions and methodol-
ogy of allocating expenses in the profitability analysis, noting the inher-
ent limitations in allocating costs among various advisory products. The
Board recognized that profitability may be affected by numerous factors
including, among other things, fee waivers and expense reimbursements
by the Manager, the types of funds managed, expense allocations and
business mix, and the difficulty of comparing profitability as a result of
those factors.
The Board noted that, in general, individual fund or product line prof-
itability of other advisors is not publicly available. Nevertheless, to the
extent such information was available, the Board considered BlackRock’s
operating margin, in general, compared to the operating margin for lead-
ing investment management firms whose operations include advising
open-end funds, among other product types. That data indicates that
operating margins for BlackRock with respect to its registered funds are
generally consistent with margins earned by similarly situated publicly
traded competitors. In addition, the Board considered, among other
things, certain third party data comparing BlackRock’s operating margin
with that of other publicly-traded asset management firms. That third
party data indicates that larger asset bases do not, in themselves, trans-
late to higher profit margins.
In addition, the Board considered the cost of the services provided to
the Master LLC and the Fund by BlackRock, and BlackRock’s and its
affiliates’ profits relating to the management and distribution of the
Master LLC and the Fund and the other funds advised by BlackRock and
its affiliates. As part of its analysis, the Board reviewed BlackRock’s
methodology in allocating its costs to the management of the Master
LLC and the Fund. The Board also considered whether BlackRock has
the financial resources necessary to attract and retain high quality
investment management personnel to perform its obligations under the
Agreements and to continue to provide the high quality of services that
is expected by the Board.
The Board noted that the Master LLC’s contractual advisory fee rate was
lower than or equal to the median contractual advisory fee rate paid by
the Fund's Peers, in each case before taking into account any expense
reimbursements or fee waivers. The Board also noted that the Master
LLC has an advisory fee arrangement that includes breakpoints that
adjust the fee rate downward as the size of the Master LLC increases
above certain contractually specified levels.
The Board further noted that the Manager, in its capacity as the Fund’s
administrator (the “Administrator”), and the Fund’s distributor had
entered into a contractual arrangement with the Fund whereby the
Administrator and the distributor agreed to waive all or a portion of their
fees and/or reimburse direct expenses of the Fund to ensure that the
operating expense ratio for certain classes of shares did not exceed
specified amounts. The Board noted that BlackRock and the Fund’s
distributor have voluntarily agreed to waive a portion of their respective
fees and/or reimburse operating expenses to enable the Fund and
Master LLC to maintain minimum levels of daily net investment income.
This waiver and/or reimbursement may be discontinued at any time
without notice.
D. Economies of Scale: The Board, including the Independent Board
Members, considered the extent to which economies of scale might be
realized as the assets of the Master LLC and the Fund increase. The
Board also considered the extent to which the Master LLC and the Fund
benefit from such economies and whether there should be changes in
30 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (concluded)
the advisory fee rate or structure in order to enable the Master LLC and
the Fund to participate in these economies of scale, for example through
the use of revised breakpoints in the advisory fee based upon the asset
level of the Master LLC.
E. Other Factors Deemed Relevant by the Board Members: The Board,
including the Independent Board Members, also took into account other
ancillary or “fall-out” benefits that BlackRock or its affiliates and signifi-
cant shareholders may derive from their respective relationships with the
Master LLC and the Fund, both tangible and intangible, such as
BlackRock’s ability to leverage its investment professionals who manage
other portfolios, an increase in BlackRock’s profile in the investment
advisory community, and the engagement of BlackRock’s affiliates and
significant shareholders as service providers to the Master LLC and the
Fund, including for administrative, transfer agency and distribution serv-
ices. The Board also considered BlackRock’s overall operations and its
efforts to expand the scale of, and improve the quality of, its operations.
The Board also noted that BlackRock may use and benefit from third
party research obtained by soft dollars generated by certain mutual fund
transactions to assist in managing all or a number of its other client
accounts. The Board further noted that BlackRock completed the acqui-
sition of a complex of exchange-traded funds (“ETFs”) on December 1,
2009, and that BlackRock’s funds may invest in such ETFs without any
offset against the management fees payable by the funds to BlackRock.
In connection with its consideration of the Agreements, the Board also
received information regarding BlackRock’s brokerage and soft dollar
practices. The Board received reports from BlackRock which included
information on brokerage commissions and trade execution practices
throughout the year.
The Board noted the competitive nature of the open-end fund market-
place, and that shareholders are able to redeem their Fund shares if
they believe that the Fund’s and/or Master LLC’s fees and expenses are
too high or if they are dissatisfied with the performance of the Fund.
Conclusion
The Board of the Master LLC, including the Independent Board
Members, unanimously approved the continuation of the Advisory
Agreement between the Manager and the Master LLC for a one-year
term ending June 30, 2011 and the Sub-Advisory Agreement between
the Manager and the Sub-Advisor, with respect to the Master LLC, for a
one-year term ending June 30, 2011. Based upon its evaluation of all of
the aforementioned factors in their totality, the Board of the Master LLC,
including the Independent Board Members, was satisfied that the terms
of the Agreements were fair and reasonable and in the best interest of
the Master LLC and its shareholders. The Board of the Fund, including
the Independent Board Members, also considered the continuation
of the Agreements with respect to the Master LLC and found the
Agreements to be satisfactory. In arriving at a decision to approve the
Agreements, the Board of the Master LLC did not identify any single fac-
tor or group of factors as all-important or controlling, but considered all
factors together, and different Board Members may have attributed dif-
ferent weights to the various factors considered. The Independent Board
Members were also assisted by the advice of independent legal counsel
in making this determination. The contractual fee arrangements for
the Master LLC reflect the results of several years of review by the
Board Members and predecessor Board Members, and discussions
between such Board Members (and predecessor Board Members) and
BlackRock. Certain aspects of the arrangements may be the subject of
more attention in some years than in others, and the Board Members’
conclusions may be based in part on their consideration of these
arrangements in prior years.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
31
Officers and Directors
Ronald W. Forbes, Co-Chair of the Board of Directors and Director
Rodney D. Johnson, Co-Chair of the Board of Directors and Director
Richard S. Davis, Director
Henry Gabbay, Director
David O. Beim, Director
Dr. Matina S. Horner, Director
Herbert I. London, Director and Member of the Audit Committee
Cynthia A. Montgomery, Director
Joseph P. Platt, Jr., Director
Robert C. Robb, Jr., Director
Toby Rosenblatt, Director
Kenneth L. Urish, Chair of the Audit Committee and Director
Frederick W. Winter, Director and Member of the Audit Committee
John M. Perlowski, President and Chief Executive Officer
Richard Hoerner, Vice President
Jeffrey Holland, Vice President
Brendan Kyne, Vice President
Simon Mendelson, Vice President
Brian Schmidt, Vice President
Christopher Stavrakos, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer
Howard Surloff, Secretary
Investment Advisor and Administrator
BlackRock Advisors, LLC
Wilmington, DE 19809
Sub-Advisor
BlackRock Investment Management, LLC
Plainsboro, NJ 08536
Custodian
State Street Bank and Trust Company
Boston, MA 02111
Transfer Agent
Financial Data Services, Inc.
Jacksonville, FL 32246
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 September 24, 2010, John M. Perlowski became
President and Chief Executive Officer of the Fund/Master LLC.
32 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
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 prospec-
tuses by enrolling in the Fund’s electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisors, Banks or
Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.
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 prac-
tice is commonly called “householding” and it is intended to reduce
expenses and eliminate duplicate mailings of shareholder documents.
Mailings of your shareholder documents may be householded indefi-
nitely unless you instruct us otherwise. If you do not want the mailing
of these documents to be combined with those for other members of
your household, please contact the Transfer Agent at (800) 221-7210.
Availability of Quarterly Portfolio Schedule
The Fund/Master LLC files its complete schedule of portfolio holdings
with the Securities and Exchange Commission (the “SEC”) for the first
and third quarters of each fiscal year on Form N-Q. The Fund’s/Master
LLC’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 the operation of the Public
Reference Room may be obtained by calling (800) SEC-0330. The
Fund’s/Master LLC’s Forms N-Q may also be obtained upon request
and without charge by calling (800) 626-1960.
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund/Master LLC
uses to determine how to vote proxies relating to portfolio securities is
available (1) without charge, upon request, by calling (800) 626-1960;
(2) at http://www.blackrock.com; and (3) on the SEC’s website at
http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Fund/Master LLC voted proxies relating to
securities held in the Fund’s/Master LLC’s portfolio during the most
recent 12-month period ended June 30 is available upon request and
without charge (1) at http://www.blackrock.com or by calling (800)
626-1960 and (2) on the SEC’s website at http://www.sec.gov.
BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
33
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 informa-
tion BlackRock collects, how we protect that information and why in cer-
tain cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regula-
tions require BlackRock to provide you with additional or different pri-
vacy-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 serv-
ices 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 informa-
tion. 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.
34 BBIF TAX-EXEMPT FUND
SEPTEMBER 30, 2010
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#BBIFTE-9/10
This report is transmitted to shareholders only. It is not
authorized for use as an offer of sale or a solicitation of an
offer to buy shares of the Fund unless accompanied or pre-
ceded by the Fund’s current prospectus. An investment in
the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government
agency. Although the Fund seeks to preserve the value of
your investment at $1.00 per share, it is possible to lose
money by investing in the Fund. Total return information
assumes reinvestment of all distributions. Past performance
results shown in this report should not be considered a rep-
resentation of future performance. For current month-end
performance information, call (800) 626-1960. The Fund’s
current 7-day yield more closely reflects the current earn-
ings of the Fund than the total returns quoted. Statements
and other information herein are as dated and are subject
to change.
![](https://capedge.com/proxy/N-CSRS/0000900092-10-001239/brbbiftaxexemptsar0910x36x2.jpg)
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 registrant’s Schedule of Investments is included as part of the Report to
Stockholders filed under Item 1 of this Form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since
the previous Form N-CSR filing.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies – Not Applicable
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers – Not Applicable
Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and
Governance Committee will consider nominees to the board of directors recommended by
shareholders when a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations that include biographical information and set forth the
qualifications of the proposed nominee to the registrant’s Secretary. There have been no
material changes to these procedures.
Item 11 – Controls and Procedures
11(a) – The registrant’s principal executive and principal financial officers or persons performing
similar functions have concluded that the registrant’s disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the
“1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the
evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act
and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
11(b) – There were no changes in the registrant’s internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter
of the period covered by this report that have materially affected, or are reasonably likely to
materially affect, the registrant’s internal control over financial reporting.
Item 12 – Exhibits attached hereto
12(a)(1) – Code of Ethics – 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, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
BBIF Tax-Exempt Fund and Master Tax-Exempt LLC
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer of
BBIF Tax-Exempt Fund and Master Tax-Exempt LLC
Date: December 1, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BBIF Tax-Exempt Fund and Master Tax-Exempt LLC
Date: December 1, 2010
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BBIF Tax-Exempt Fund and Master Tax-Exempt LLC
Date: December 1, 2010