UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07177
Name of Fund: BlackRock Mid Cap Value Opportunities Fund of
BlackRock Mid Cap Value Opportunities Series, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer (principal executive officer), BlackRock Mid Cap Value
Opportunities Fund of BlackRock Mid Cap Value Opportunities Series, Inc.,
800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O.
Box 9011, Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 01/31/08
Date of reporting period: 02/01/07 - 07/31/07
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES
BLACKROCK SOLUTIONS
BlackRock Mid Cap Value
Opportunities Fund
OF BLACKROCK MID CAP VALUE OPPORTUNITIES
SERIES, INC.
JULY 31, 2007 SEMI-ANNUAL REPORT (UNAUDITED)
(BLACKROCK logo)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
This report is not authorized for use as an offer of sale or a solicitation
of an offer to buy shares of the Fund unless accompanied or preceded by the
Fund's current prospectus. Past performance results shown in this report
should not be considered a representation of future performance. Investment
return and principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Statements and
other information herein are as dated and are subject to change.
BlackRock Mid Cap Value Opportunities Fund of
BlackRock Mid Cap Value Opportunities Series, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
(GO PAPERLESS... logo)
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BlackRock Mid Cap Value Opportunities Fund
Portfolio Information as of July 31, 2007
Percent of
Ten Largest Equity Holdings Net Assets
Harte-Hanks, Inc. 2.7%
Global Payments, Inc. 2.7
King Pharmaceuticals, Inc. 2.4
HCC Insurance Holdings, Inc. 2.3
TIBCO Software, Inc. 2.3
OGE Energy Corp. 2.3
Tech Data Corp. 2.0
Allied Waste Industries, Inc. 2.0
Newfield Exploration Co. 2.0
Alberto-Culver Co. 2.0
Percent of
Five Largest Industries Net Assets
Multi-Utilities 6.5%
Software 6.3
Insurance 5.9
Oil, Gas & Consumable Fuels 5.9
Real Estate Investment Trust (REITs) 5.2
Percent of
Long-Term
Sector Representation Investments
Financials 19.8%
Information Technology 17.6
Industrials 12.7
Consumer Discretionary 12.3
Health Care 11.2
Energy 10.2
Utilities 7.1
Materials 6.3
Consumer Staples 2.8
For Fund compliance purposes, the Fund's industry and sector
classifications refer to any one or more of the industry and
sector sub-classifications used by one or more widely recognized
market indexes or ratings group indexes, and/or as defined by
Fund management. This definition may not apply for purposes
of this report which may combine industry and sector sub-
classifications for reporting ease.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
A Letter to Shareholders
Dear Shareholder
As the July reporting period closed, financial markets were rattled by ongoing
problems in the credit markets, particularly those associated with the
subprime mortgage industry. While this has been an issue for much of 2007,
recent headlines and some high-profile credit collapses reignited concerns
that credit problems could spill over into the broader economy and derail
global financial markets. Although volatility has reared its head throughout
the year, the fundamental market and economic backdrop has been little
changed. U.S. economic activity has decelerated, led by a slowdown in the
housing market, but economies outside the United States remain robust, which
has been a boon for U.S. exports. Through July, the Federal Reserve Board had
kept the target short-term interest rate on hold at 5.25%.
For the most part, equities continued to find support in robust merger-and-
acquisition activity, a healthy global economy, tame inflation, relatively low
interest rates, still-positive earnings growth and attractive valuations.
These tailwinds generally prevailed over such headwinds as the weakening U.S.
economy, slowing housing market, escalating geopolitical concerns and high
energy prices, leading the Standard & Poor's (S&P) 500 Index and the Dow Jones
Industrial Average to post new record highs in mid-July before succumbing to
the latest market correction.
Meanwhile, mixed economic signals and the credit market debacle have made for
a volatile backdrop for fixed income, with investors fleeing from bonds
associated with the housing and credit markets in favor of higher-quality
Treasury bonds. As a result, the 10-year Treasury yield, which touched 5.30%
in June (its highest level in five years), fell to nearly 4.75% by period-end.
Prices correspondingly rose, reflecting the investor flight to quality.
Against this backdrop, financial markets posted mixed results for the six-
month period ended July 31, 2007, but continued to exhibit relative strength
when measured over the past year:
Total Returns as of July 31, 2007 6-month 12-month
U.S. equities (S&P 500 Index) +2.10% +16.13%
Small cap U.S. equities (Russell 2000 Index) -2.47 +12.12
International equities (MSCI Europe, Australasia, Far East Index) +8.38 +23.91
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +1.86 + 5.58
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.17 + 4.27
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -1.75 + 6.44
Past performance is no guarantee of future results. Index performance shown
for illustrative purposes only. You cannot invest directly in an index.
We expect market volatility to linger through the remainder of 2007. As you
navigate the uncertainties, we encourage you to review your investment goals
with your financial professional and to make portfolio changes, as needed. For
more market insight, we invite you to visit www.blackrock.com/funds. We thank
you for entrusting BlackRock with your investment assets, and we look forward
to continuing to serve you in the months and years ahead.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
Fund President and Director
THIS PAGE NOT PART OF YOUR FUND REPORT
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
A Discussion With Your Fund's Portfolio Manager
As a group, mid cap stocks performed strongly relative to both small and large
cap stocks during the period, but stock-specific factors weighed on Fund
results.
How did the Fund perform during the period in light of the existing market
conditions?
For the six-month period ended July 31, 2007, BlackRock Mid Cap Value
Opportunities Fund's Institutional, Investor A, Investor B, Investor C and
Class R Shares had total returns of +1.06%, +0.95%, +0.53%, +0.54% and +0.76%,
respectively. (Fund results shown do not reflect sales charges and would be
lower if sales charges were included. Complete performance information can be
found on pages 6 - 7 of this report to shareholders.) For the same period, the
benchmark Standard & Poor's (S&P) MidCap 400 Index returned +3.40% and the
Lipper Mid Cap Value Funds category posted an average return of +2.27%. (Funds
in this Lipper category invest primarily in stocks of mid-capitalization
companies that are considered to be undervalued relative to a major unmanaged
stock index.)
U.S. equity markets weathered bouts of volatility throughout the six-month
reporting period. A sharp market correction in late February was followed by a
strong rally that sent the S&P 500 Index and the Dow Jones Industrial Average
to new record highs in May. The upward momentum waned in the final two months
of the period, when the broader-market S&P 500 Index and the benchmark S&P
MidCap 400 Index posted negative monthly returns. The correction came amid
growing investor concern over the deteriorating housing market, credit risk in
the subprime mortgage segment and diminishing expectations for a near-term cut
in the target federal funds rate.
Against this backdrop, mid cap stocks outperformed both their small and large
cap counterparts for the six-month period. We believe this can be attributed
to the greater merger-and-acquisition (M&A) activity and the higher level of
implied takeover premiums in mid cap stocks. In terms of style, growth
outpaced value across the market-capitalization spectrum. For this reason, our
relative value approach - where we look for stocks trading at the low end of
their historical valuation ranges, rather than making decisions on an absolute
price-to-earnings or price-to-book basis - proved advantageous.
What factors most influenced Fund performance?
Fund performance for the period was driven by stock-specific factors. Our
stock picks in the information technology, energy and financials sectors
generally lagged those in the S&P MidCap 400 Index, although the majority of
the underperformance relative to the benchmark came from disappointing stock
performance in the healthcare sector. Our position in Medicis Pharmaceutical
Corp. underperformed the healthcare sector as the launch of a competitor's
product led to worries regarding the company's market positioning.
Nevertheless, with only two competitors in this emerging growth market, we
expect favorable market growth and pricing trends. Medicis has other products,
including a strong dermatology product line, in addition to a good balance
sheet and record of solid execution. For this reason, we continue to own
shares of Medicis. Our largest position in healthcare, King Pharmaceuticals,
Inc., also hindered Fund performance following an unfavorable patent decision.
If King's lead product goes generic this year, we believe that the other drugs
in its portfolio more than make up for the currently depressed share price.
Other stocks that detracted from the Fund's relative results included
Friedman, Billings, Ramsey Group, Inc., which we had initially purchased for
its investment banking/capital markets business. Friedman also owned a
portfolio of subprime mortgages that it was looking to sell. The subprime
market collapsed before the company could liquidate its portfolio, and we
subsequently sold our entire position in Friedman on a small bounce in
subprime stocks.
Stocks that contributed favorably to the Fund's relative results included
Medimmune, Inc., maker of respiratory and other immune-boosting drugs, and
chemical company Huntsman Corp. Both Medimmune and Huntsman were the subject
of takeover announcements. Our position in Dresser-Rand Group Inc., a
manufacturer of compressors sold into the energy industry, also proved
additive to performance. The company benefited from a substantial increase in
orders and solid earnings.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
What changes were made to the portfolio during the period?
From a sector perspective, the biggest change involved an increase in exposure
to the utilities sector, an area where we have seen some M&A activity. We
previously had underweighted utilities, but the sector is beginning to look
attractive again on valuation measures. New additions to the portfolio
included Alliant Energy Corp., Wisconsin Energy Corp. and Puget Energy, Inc.
We also raised the Fund's position in consumer discretionary stocks with the
addition of direct marketing services company Harte-Hanks, Inc. and increased
exposure to Newell Rubbermaid, Inc. and Jones Apparel Group, Inc. This was
offset somewhat by a reduction in specialty retailers. In particular, we
liquidated our position in RadioShack Corp. after sharp share price
appreciation, and we reduced exposure to The Gap, Inc., as the shares rallied
significantly on news that a new CEO had been hired. We believe meaningful
improvement will take time, and prefer to wait on the sidelines for more
tangible evidence of a turnaround.
In financials, we favored the insurers and asset management companies, while
we reduced exposure to commercial banks. Notable new additions to the
portfolio included AMBAC Financial Group, Inc. in insurance, Waddell & Reed
Financial, Inc. and Affiliated Managers Group, Inc. among the asset managers,
and TD Ameritrade Holding Corp. in the online brokerage space. Sales included
asset manager Janus Capital Group and commercial banks Compass Bancshares,
Inc. and The Colonial BancGroup, Inc. Among real estate investment trusts
(REITs), Crescent Real Estate EQT Co., one of the Fund's largest financial
positions, appreciated on news that it would be acquired by Morgan Stanley
Real Estate. We trimmed our exposure to Crescent while establishing a position
in hotel REIT FelCor Lodging Trust, Inc. and adding to Alexandria Real Estate
Equities, Inc., both of which have more attractive valuations, in our view,
and no residential real estate exposure.
Although the Fund's healthcare exposure decreased slightly during this six-
month period, the sector has been an interesting area for new purchases. We
have seen a lot of consolidation activity and believe that large cap
pharmaceutical companies could acquire additional small players with emerging
drug pipelines. We initiated positions in Sepracor, Inc., which focuses on
respiratory and central nervous system drugs, and Imclone Systems, Inc., a bio-
pharmaceutical company. Both stocks are attractive acquisition candidates for
large cap pharmaceutical companies.
On the sell side, we reined in our overweighting in energy as oil prices
approached $80 per barrel. We also reduced our exposure to the industrials
sector, where we saw strong performance in the aerospace & defense industry.
We realized profits in Goodrich Corp., a supplier of aerospace components and
systems, and sold our positions in W.W. Grainger and Chicago Bridge & Iron Co.
after sharp share price appreciation. We reduced the Fund's overweight
position in the information technology sector with the liquidation of Hyperion
Solutions Corp., Novell, Inc., Computer Sciences Corp. and BISYS Group, among
others, on takeovers that were either widely anticipated or actually
announced. Finally, we moved to a zero weighting in the telecommunication
services sector with the sale of our position in BCE, Inc., the leading
communications company in Canada, which agreed to be acquired by a private
consortium of investors.
Consistent with our bottom-up stock-selection process, most portfolio activity
during the period was driven by stock-specific considerations rather than top-
down macroeconomic investment themes.
How would you characterize the Fund's position at the close of the period?
At July 31, 2007, the Fund was most overweight versus the S&P MidCap 400
Index in the financial services and information technology (IT) sectors, and
most underweight in the industrials and consumer discretionary sectors. The
Fund's largest absolute exposure at period-end was in financial services,
though we recently reduced bank exposure in favor of information technology
purchases, causing IT to rise to the second-largest sector on an absolute
basis as of July 31, 2007.
Mid cap stocks performed strongly relative to both small and large cap stocks
during the six-month reporting period, but may be vulnerable amid concerns
about rising financing costs and slowing M&A activity. Higher interest rates
are likely to ease investor interest in mid cap names, and we expect that the
pace of consolidation activity will slow. We have a more cautious long-term
view, but continue to find attractive opportunities in specific mid cap
companies. We ended the period with a fully invest portfolio and will continue
to rebalance our positioning to mitigate risk.
R. Elise Baum, CFA
Portfolio Manager
August 8, 2007
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Performance Data
About Fund Performance
Effective October 2, 2006, the Fund's Class A, Class B, Class C and Class I
Shares were redesignated Investor A, Investor B, Investor C and Institutional
Shares, respectively. Class R Shares did not change their designation. As
previously communicated to shareholders, new sales charge schedules came into
effect at the same time for certain of these classes.
The Fund has multiple classes of shares:
* Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available only to
eligible investors.
* Investor A Shares incur a maximum initial sales charge (front-end load) of
5.25% and a service fee of 0.25% per year (but no distribution fee).
* Investor B Shares are subject to a maximum contingent deferred sales charge
of 4.50% declining to 0% after six years. In addition, Investor B Shares are
subject to a distribution fee of 0.75% per year and a service fee of 0.25% per
year. These shares automatically convert to Investor A Shares after
approximately eight years. (There is no initial sales charge for automatic
share conversions.) All returns for periods greater than eight years reflect
this conversion.
* Investor C Shares are subject to a distribution fee of 0.75% per year and a
service fee of 0.25% per year. In addition, Investor C Shares are subject to a
1% contingent deferred sales charge if redeemed within one year of purchase.
* Class R Shares do not incur a maximum initial sales charge (front-end load)
or deferred sales charge. These shares are subject to a distribution fee of
0.25% per year and a service fee of 0.25% per year. Class R Shares are
available only to certain retirement plans. Prior to inception, Class R Share
performance results are those of Institutional Shares (which have no
distribution or service fees) restated to reflect the Class R Share fees.
Performance information reflects past performance and does not guarantee
future results. Current performance may be lower or higher than the
performance data quoted. Refer to www.blackrock.com to obtain performance data
current to the most recent month-end. Performance results do not include the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares. Figures shown in each of the following tables
assume reinvestment of all dividends and capital gain distributions, if any,
at net asset value on the ex-dividend date. Investment return and principal
value of shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Dividends paid to each class of shares
will vary because of the different levels of service, distribution and
transfer agency fees applicable to each class, which are deducted from the
income available to be paid to shareholders.
Recent Performance Results
6-Month 12-Month 10-Year
As of July 31, 2007 Total Return Total Return Total Return
Institutional Shares* +1.06% +13.89% +174.90%
Investor A Shares* +0.95 +13.55 +168.09
Investor B Shares* +0.53 +12.71 +150.84
Investor C Shares* +0.54 +12.69 +146.56
Class R Shares* +0.76 +13.25 +162.55
S&P MidCap 400 Index** +3.40 +16.73 +205.43
* Investment results shown do not reflect sales charges; results shown would be lower if a sales charge
was included. Cumulative total investment returns are based on changes in net asset values for the
periods shown, and assume reinvestment of all dividends and capital gains distributions at net asset
value on the ex-dividend date.
** This unmanaged Index is a market value-weighted index that consists of 400 domestic stocks and measures
the performance of the mid-size company segment of the U.S. market.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Performance Data (concluded)
Total Return Based on a $10,000 Investment
A line graph illustrating the growth of a $10,000 investment in Institutional
Shares*++, Investor A Shares*++, Investor B Shares*++, Investor C Shares*++
and Class R Shares*++ compared to a similar investment in S&P MidCap 400
Index++++. Values illustrated are as follows:
Institutional Shares*++
Date Value
July 1997 $10,000.00
July 1998 $10,763.00
July 1999 $12,304.00
July 2000 $12,044.00
July 2001 $15,865.00
July 2002 $13,083.00
July 2003 $15,330.00
July 2004 $18,021.00
July 2005 $21,946.00
July 2006 $24,137.00
July 2007 $27,490.00
Investor A Shares*++
Date Value
July 1997 $ 9,475.00
July 1998 $10,173.00
July 1999 $11,601.00
July 2000 $11,327.00
July 2001 $14,885.00
July 2002 $12,251.00
July 2003 $14,308.00
July 2004 $16,776.00
July 2005 $20,403.00
July 2006 $22,370.00
July 2007 $25,402.00
Investor B Shares*++
Date Value
July 1997 $10,000.00
July 1998 $10,645.00
July 1999 $12,037.00
July 2000 $11,649.00
July 2001 $15,189.00
July 2002 $12,397.00
July 2003 $14,360.00
July 2004 $16,708.00
July 2005 $20,148.00
July 2006 $22,090.00
July 2007 $25,084.00
Investor C Shares*++
Date Value
July 1997 $10,000.00
July 1998 $10,639.00
July 1999 $12,030.00
July 2000 $11,644.00
July 2001 $15,164.00
July 2002 $12,373.00
July 2003 $14,336.00
July 2004 $16,676.00
July 2005 $20,105.00
July 2006 $21,881.00
July 2007 $24,656.00
Class R Shares*++
Date Value
July 1997 $10,000.00
July 1998 $10,709.00
July 1999 $12,181.00
July 2000 $11,864.00
July 2001 $15,551.00
July 2002 $12,760.00
July 2003 $14,945.00
July 2004 $17,475.00
July 2005 $21,188.00
July 2006 $23,183.00
July 2007 $26,255.00
S&P MidCap 400 Index++++
Date Value
July 1997 $10,000.00
July 1998 $11,121.00
July 1999 $13,269.00
July 2000 $16,110.00
July 2001 $17,009.00
July 2002 $14,857.00
July 2003 $16,914.00
July 2004 $19,930.00
July 2005 $25,090.00
July 2006 $26,165.00
July 2007 $30,543.00
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
++ The Fund invests in common stocks of mid cap companies.
++++ This unmanaged Index is a market value-weighted index that consists
of 400 domestic stocks and measures the performance of the mid-size
company segment of the U.S. market.
Past performance is not indicative of future results.
Average Annual Total Return
Return
Institutional Shares
One Year Ended 7/31/07 +13.89%
Five Years Ended 7/31/07 +16.01
Ten Years Ended 7/31/07 +10.64
Return Without Return With
Sales Charge Sales Charge*
Investor A Shares
One Year Ended 7/31/07 +13.55% + 7.59%
Five Years Ended 7/31/07 +15.70 +14.46
Ten Years Ended 7/31/07 +10.36 + 9.77
Return Return
Without CDSC With CDSC++++++
Investor B Shares++
One Year Ended 7/31/07 +12.71% + 8.32%
Five Years Ended 7/31/07 +14.79 +14.56
Ten Years Ended 7/31/07 + 9.63 + 9.63
Return Return
Without CDSC With CDSC++++++
Investor C Shares++++
One Year Ended 7/31/07 +12.69% +11.71%
Five Years Ended 7/31/07 +14.79 +14.79
Ten Years Ended 7/31/07 + 9.44 + 9.44
Return
Class R Shares
One Year Ended 7/31/07 +13.25%
Five Years Ended 7/31/07 +15.52
Ten Years Ended 7/31/07 +10.13
* Assuming maximum sales charge of 5.25%.
++ Maximum contingent deferred sales charge is 4.50% and is
reduced to 0% after six years.
++++ Maximum contingent deferred sales charge is 1% and is reduced
to 0% after one year.
++++++ Assuming payment of applicable contingent deferred sales charge.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
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 advisory fees, distribution fees
including 12b-1 fees, and other Fund expenses. The following example (which is
based on a hypothetical investment of $1,000 invested on February 1, 2007 and
held through July 31, 2007) 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 first 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 in the first line under
the heading entitled "Expenses Paid During the Period."
The second table below 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 second table
is useful in comparing ongoing expenses only, and will not help shareholders
determine the relative total expenses of owning different funds. If these
transactional expenses were included, shareholder expenses would have been
higher.
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value February 1, 2007
February 1, July 31, to July 31,
2007 2007 2007
Actual
Institutional $1,000 $1,010.60 $ 4.59
Investor A $1,000 $1,009.50 $ 6.08
Investor B $1,000 $1,005.30 $10.09
Investor C $1,000 $1,008.90 $10.41
Class R $1,000 $1,007.60 $ 7.72
Hypothetical (5% annual return before expenses)**
Institutional $1,000 $1,020.24 $ 4.61
Investor A $1,000 $1,018.75 $ 6.11
Investor B $1,000 $1,014.73 $10.14
Investor C $1,000 $1,014.44 $10.44
Class R $1,000 $1,017.11 $ 7.75
* For each class of shares of the Fund, expenses are equal to the annualized expense ratio for the class
(.92% for Institutional, 1.22% for Investor A, 2.03% for Investor B, 2.09% for Investor C and 1.55% for
Class R), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the
one-half year period shown).
** 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.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Schedule of Investments as of July 31, 2007 (Unaudited) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
North America
United States--98.0%
Aerospace & Defense--3.0%
Curtiss-Wright Corp. 60,500 $ 2,635,985
DRS Technologies, Inc. 141,000 7,382,760
Spirit Aerosystems Holdings, Inc.
Class A (b) 95,200 3,455,760
-------------
13,474,505
Biotechnology--1.6%
Human Genome Sciences, Inc. (b) 351,000 2,723,760
ImClone Systems, Inc. (b) 130,900 4,306,610
-------------
7,030,370
Capital Markets--3.5%
Affiliated Managers Group, Inc. (b) 46,500 5,254,500
TD Ameritrade Holding Corp. (b) 222,200 3,766,290
Waddell & Reed Financial, Inc. Class A 263,400 6,640,314
-------------
15,661,104
Chemicals--2.1%
Huntsman Corp. 302,300 7,696,558
Valspar Corp. 58,500 1,614,015
-------------
9,310,573
Commercial Banks--2.5%
Cullen/Frost Bankers, Inc. 90,800 4,510,036
First Midwest Bancorp, Inc. 56,375 1,854,174
Webster Financial Corp. 109,400 4,754,524
-------------
11,118,734
Commercial Services &
Supplies--3.8%
Allied Waste Industries, Inc. (a)(b) 682,600 8,785,062
Cintas Corp. 214,100 7,827,496
-------------
16,612,558
Communications Equipment--2.5%
Andrew Corp. (b) 180,800 2,542,048
Tellabs, Inc. (b) 758,300 8,606,705
-------------
11,148,753
Containers & Packaging--1.6%
Smurfit-Stone Container Corp. (a)(b) 617,800 7,283,862
Electrical Equipment--1.3%
Hubbell, Inc. Class B 99,200 5,718,880
Electronic Equipment &
Instruments--2.0%
Tech Data Corp. (b) 241,500 9,049,005
Energy Equipment &
Services--4.1%
BJ Services Co. 278,700 7,288,005
Dresser-Rand Group, Inc. (b) 74,900 2,778,790
Rowan Cos., Inc. (a) 191,600 8,083,604
-------------
18,150,399
Food Products--0.8%
Smithfield Foods, Inc. (b) 115,500 3,587,430
Gas Utilities--0.4%
Questar Corp. 31,800 1,637,382
Shares
Industry Common Stocks Held Value
North America (continued)
United States (continued)
Health Care Equipment &
Supplies--2.4%
Cooper Cos., Inc. 44,600 $ 2,235,798
Edwards Lifesciences Corp. (a)(b) 179,900 8,268,204
-------------
10,504,002
Health Care Providers &
Services--0.9%
Community Health Systems, Inc. (b) 58,200 2,263,980
Tenet Healthcare Corp. (b) 368,937 1,911,094
-------------
4,175,074
Health Care Technology--0.6%
HLTH Corp. (b) 212,843 2,694,592
Hotels, Restaurants &
Leisure--1.6%
CBRL Group, Inc. 66,000 2,536,380
Wyndham Worldwide Corp. 131,160 4,413,534
-------------
6,949,914
Household Durables--2.2%
Lennar Corp. Class A (a) 84,500 2,590,770
Newell Rubbermaid, Inc. 279,600 7,395,420
-------------
9,986,190
IT Services--3.0%
CheckFree Corp. (a)(b) 36,000 1,326,240
Global Payments, Inc. 315,400 11,795,960
-------------
13,122,200
Insurance--5.9%
AMBAC Financial Group, Inc. 62,000 4,163,300
Conseco, Inc. (b) 434,700 7,907,193
Everest Re Group Ltd. 38,200 3,753,150
HCC Insurance Holdings, Inc. (a) 352,600 10,324,128
-------------
26,147,771
Internet Software &
Services--1.6%
CNET Networks, Inc. (a)(b) 903,000 6,799,590
Data Domain, Inc. (b) 2,500 62,025
-------------
6,861,615
Leisure Equipment &
Products--1.4%
Brunswick Corp. (a) 218,800 6,117,648
Life Sciences Tools &
Services--0.9%
Affymetrix, Inc. (b) 154,500 3,766,710
Machinery--1.9%
Timken Co. 252,500 8,433,500
Media--2.7%
Harte-Hanks, Inc. (a) 503,500 11,857,425
Metals & Mining--1.3%
Nucor Corp. 110,800 5,562,160
Multi-Utilities--6.5%
Alliant Energy Corp. 180,022 6,651,813
OGE Energy Corp. 306,200 10,150,530
Puget Energy, Inc. 253,300 5,863,895
Wisconsin Energy Corp. 146,900 6,306,417
-------------
28,972,655
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Schedule of Investments (concluded) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
North America (continued)
United States (continued)
Oil, Gas & Consumable
Fuels--5.9%
Cabot Oil & Gas Corp. Class A 132,300 $ 4,524,660
Newfield Exploration Co. (a)(b) 182,600 8,773,930
Noble Energy, Inc. (a) 69,300 4,237,002
Plains Exploration & Production Co. (b) 195,100 8,430,271
-------------
25,965,863
Paper & Forest Products--1.2%
Weyerhaeuser Co. (a) 72,500 5,164,900
Personal Products--2.0%
Alberto-Culver Co. 370,300 8,709,456
Pharmaceuticals--4.6%
King Pharmaceuticals, Inc. (b) 612,400 10,416,924
Medicis Pharmaceutical Corp.
Class A (a) 247,500 7,061,175
Sepracor, Inc. (b) 96,800 2,722,984
-------------
20,201,083
Real Estate Investment Trusts
(REITs)--5.2%
Alexandria Real Estate Equities, Inc. 82,600 7,114,338
Crescent Real Estate EQT Co. 284,400 6,421,752
FelCor Lodging Trust, Inc. 320,600 7,040,376
UDR, Inc. 103,100 2,380,579
-------------
22,957,045
Road & Rail--0.7%
JB Hunt Transport Services, Inc. (a) 112,600 3,144,918
Semiconductors & Semiconductor
Equipment--1.8%
Micron Technology, Inc. (a)(b) 691,000 8,202,170
Software--6.3%
BEA Systems, Inc. (b) 546,000 6,759,480
Citrix Systems, Inc. (b) 128,900 4,662,313
Parametric Technology Corp. (b) 348,300 6,140,529
TIBCO Software, Inc. (b) 1,258,200 10,229,166
-------------
27,791,488
Shares
Industry Common Stocks Held Value
North America (concluded)
United States (concluded)
Specialty Retail--2.5%
Foot Locker, Inc. 402,600 $ 7,472,256
The Gap, Inc. 204,500 3,517,400
-------------
10,989,656
Textiles, Apparel & Luxury
Goods--1.7%
Jones Apparel Group, Inc. 289,400 7,223,424
Lululemon Athletica, Inc. (b) 8,000 257,120
-------------
7,480,544
Thrifts & Mortgage
Finance--2.3%
MGIC Investment Corp. (a) 84,600 3,270,636
People's United Financial, Inc. 440,500 7,100,860
-------------
10,371,496
Trading Companies &
Distributors--1.7%
United Rentals, Inc. (b) 86,800 2,789,752
WESCO International, Inc. (b) 86,800 4,648,140
-------------
7,437,892
Total Common Stocks
(Cost--$438,029,724)--98.0% 433,351,522
Short-Term Beneficial
Securities Interest
BlackRock Liquidity Series, LLC
Cash Sweep Series,
5.33% (c)(d) $ 2,354,777 2,354,777
BlackRock Liquidity Series, LLC
Money Market Series,
5.37% (c)(d)(e) 83,558,250 83,558,250
Total Short-Term Investments
(Cost--$85,913,027)--19.4% 85,913,027
Total Investments
(Cost--$523,942,751*)--117.4% 519,264,549
Liabilities in Excess of Other Assets--(17.4%) (77,011,526)
-------------
Net Assets--100.0% $ 442,253,023
=============
* The cost and unrealized appreciation (depreciation) of investments
as of July 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 526,789,066
=================
Gross unrealized appreciation $ 27,042,013
Gross unrealized depreciation (34,566,530)
-----------------
Net unrealized depreciation $ (7,524,517)
=================
(a) Security, or a portion of security, is on loan.
(b) Non-income producing security.
(c) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Interest
Affiliate Activity Income
BlackRock Liquidity Series, LLC
Cash Sweep Series $ (1,791,580) $154,853
BlackRock Liquidity Series, LLC
Money Market Series $ 9,091,333 $ 59,735
(d) Represents the current yield as of July 31, 2007.
(e) Security was purchased with the cash proceeds from securities loans.
o For Fund compliance purposes, the Fund's industry classifications refer
to any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report, which may combine industry sub-classifications for reporting
ease.
See Notes to Financial Statements.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Statement of Assets and Liabilities
As of July 31, 2007 (Unaudited)
Assets
Investments in unaffiliated securities, at value (including securities
loaned of $79,169,101) (identified cost--$438,029,724) $ 433,351,522
Investments in affiliated securities, at value (identified cost--$85,913,027) 85,913,027
Receivables:
Securities sold $ 20,398,086
Capital shares sold 552,201
Dividends 320,670
Securities lending 20,062 21,291,019
---------------
Prepaid expenses 40,654
---------------
Total assets 540,596,222
---------------
Liabilities
Collateral on securities loaned, at value 83,558,250
Payables:
Securities purchased 11,256,884
Capital shares redeemed 2,781,243
Investment adviser 265,119
Distributor 208,201
Other affiliates 200,787 14,712,234
---------------
Accrued expenses and other liabilities 72,715
---------------
Total liabilities 98,343,199
---------------
Net Assets
Net assets $ 442,253,023
===============
Net Assets Consist of
Institutional Shares of Capital Stock, $.10 par value, 20,000,000 shares authorized $ 549,066
Investor A Shares of Capital Stock, $.10 par value, 40,000,000 shares authorized 699,897
Investor B Shares of Capital Stock, $.10 par value, 40,000,000 shares authorized 392,616
Investor C Shares of Capital Stock, $.10 par value, 40,000,000 shares authorized 629,172
Class R Shares of Capital Stock, $.10 par value, 40,000,000 shares authorized 251,152
Paid-in capital in excess of par 388,609,153
Accumulated investment loss--net $ (886,343)
Undistributed realized capital gains--net 56,686,512
Unrealized depreciation--net (4,678,202)
---------------
Total accumulated earnings--net 51,121,967
---------------
Net Assets $ 442,253,023
===============
Net Asset Value
Institutional--Based on net assets of $100,700,940 and 5,490,665 shares outstanding $ 18.34
===============
Investor A--Based on net assets of $126,126,056 and 6,998,970 shares outstanding $ 18.02
===============
Investor B--Based on net assets of $66,738,618 and 3,926,156 shares outstanding $ 17.00
===============
Investor C--Based on net assets of $105,812,232 and 6,291,720 shares outstanding $ 16.82
===============
Class R--Based on net assets of $42,875,177 and 2,511,520 shares outstanding $ 17.07
===============
See Notes to Financial Statements.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Statement of Operations
For the Six Months Ended July 31, 2007 (Unaudited)
Investment Income
Dividends (net of $13,168 foreign withholding tax) $ 2,433,718
Interest from affiliates 154,853
Securities lending--net 59,735
---------------
Total income 2,648,306
---------------
Expenses
Investment advisory fees $ 1,509,469
Service and distribution fees--Investor C 571,426
Service and distribution fees--Investor B 380,915
Transfer agent fees--Investor C 163,964
Service fees--Investor A 159,139
Transfer agent fees--Investor A 122,149
Accounting services 115,378
Service and distribution fees--Class R 98,508
Transfer agent fees--Investor B 84,453
Transfer agent fees--Institutional 71,848
Printing and shareholder reports 56,492
Transfer agent fees--Class R 52,255
Registration fees 40,542
Professional fees 39,927
Custodian fees 28,096
Directors' fees and expenses 15,415
Pricing fees 753
Other 23,920
---------------
Total expenses 3,534,649
---------------
Investment income--net (886,343)
---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain on:
Investments--net 59,530,765
Foreign currency transactions--net 2,085 59,532,850
---------------
Change in unrealized depreciation on investments--net (54,609,948)
---------------
Total realized and unrealized gain--net 4,922,902
---------------
Net Increase in Net Assets Resulting from Operations $ 4,036,559
===============
See Notes to Financial Statements.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
July 31, 2007 January 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
Operations
Investment loss--net $ (886,343) $ (1,246,525)
Realized gain--net 59,532,850 66,616,748
Change in unrealized depreciation--net (54,609,948) (25,324,531)
--------------- ---------------
Net increase in net assets resulting from operations 4,036,559 40,045,692
--------------- ---------------
Distributions to Shareholders
Realized gain--net:
Institutional (3,788,454) (16,441,539)
Investor A (4,894,743) (17,285,826)
Investor B (2,660,212) (12,037,808)
Investor C (4,244,787) (15,733,221)
Class R (1,666,836) (4,311,442)
--------------- ---------------
Net decrease in net assets resulting from distributions to shareholders (17,255,032) (65,809,836)
--------------- ---------------
Capital Share Transactions
Net increase in net assets derived from capital share transactions 7,465,778 26,982,831
--------------- ---------------
Net Assets
Total increase (decrease) in net assets (5,752,695) 1,218,687
Beginning of period 448,005,718 446,787,031
--------------- ---------------
End of period* $ 442,253,023 $ 448,005,718
=============== ===============
* Accumulated investment loss--net $ (886,343) --
=============== ===============
See Notes to Financial Statements.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Financial Highlights
Institutional
For the Six
The following per share data and ratios Months Ended
have been derived from information July 31, 2007 For the Year Ended January 31,
provided in the financial statements. (Unaudited) 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of period $ 18.79 $ 19.89 $ 19.58 $ 17.56 $ 12.38 $ 17.12
----------- ----------- ----------- ----------- ----------- -----------
Investment income (loss)--net* .02 .05 .07 .01 (.01) --++
Realized and unrealized gain (loss)--net .24 1.79 4.34 2.14 5.19 (4.42)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations .26 1.84 4.41 2.15 5.18 (4.42)
----------- ----------- ----------- ----------- ----------- -----------
Less distributions from realized gain--net (.71) (2.94) (4.10) (.13) -- (.32)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 18.34 $ 18.79 $ 19.89 $ 19.58 $ 17.56 $ 12.38
=========== =========== =========== =========== =========== ===========
Total Investment Return**
Based on net asset value per share 1.06%+++ 10.09% 23.90% 12.24% 41.84% (25.92%)
=========== =========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses .92%+++++ 1.01% 1.01% 1.01% 1.09% 1.12%
=========== =========== =========== =========== =========== ===========
Investment income (loss)--net .22%+++++ .28% .34% .04% (.09%) (.01%)
=========== =========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 100,701 $ 105,207 $ 114,921 $ 126,651 $ 91,845 $ 59,125
=========== =========== =========== =========== =========== ===========
Portfolio turnover 87% 99% 110% 82% 86% 74%
=========== =========== =========== =========== =========== ===========
* Based on average shares outstanding.
** Total investment returns exclude the effects of any sales charges.
++ Amount is less than $(.01) per share.
+++ Aggregate total investment return.
+++++ Annualized.
See Notes to Financial Statements.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Financial Highlights (continued)
Investor A
For the Six
The following per share data and ratios Months Ended
have been derived from information July 31, 2007 For the Year Ended January 31,
provided in the financial statements. (Unaudited) 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of period $ 18.49 $ 19.63 $ 19.33 $ 17.39 $ 12.29 $ 17.04
----------- ----------- ----------- ----------- ----------- -----------
Investment income (loss)--net* (.01) --++++ .03 (.04) (.05) (.04)
Realized and unrealized gain (loss)--net .25 1.76 4.28 2.11 5.15 (4.40)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations .24 1.76 4.31 2.07 5.10 (4.44)
----------- ----------- ----------- ----------- ----------- -----------
Less distributions from realized gain--net (.71) (2.90) (4.01) (.13) -- (.31)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 18.02 $ 18.49 $ 19.63 $ 19.33 $ 17.39 $ 12.29
=========== =========== =========== =========== =========== ===========
Total Investment Return**
Based on net asset value per share .95%+++ 9.76% 23.66% 11.90% 41.50% (26.12%)
=========== =========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses 1.22%++ 1.26% 1.26% 1.26% 1.34% 1.37%
=========== =========== =========== =========== =========== ===========
Investment income (loss)--net (.08%)++ --*** .13% (.20%) (.34%) (.26%)
=========== =========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 126,126 $ 121,065 $ 98,343 $ 85,184 $ 62,061 $ 31,504
=========== =========== =========== =========== =========== ===========
Portfolio turnover 87% 99% 110% 82% 86% 74%
=========== =========== =========== =========== =========== ===========
* Based on average shares outstanding.
** Total investment returns exclude the effects of sales charges.
*** Amount is less than .01%
++ Annualized.
++++ Amount is less than $.01 per share.
+++ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Financial Highlights (continued)
Investor B
For the Six
The following per share data and ratios Months Ended
have been derived from information July 31, 2007 For the Year Ended January 31,
provided in the financial statements. (Unaudited) 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of period $ 17.54 $ 18.73 $ 18.43 $ 16.72 $ 11.90 $ 16.64
----------- ----------- ----------- ----------- ----------- -----------
Investment loss--net* (.08) (.14) (.13) (.17) (.16) (.15)
Realized and unrealized gain (loss)--net .23 1.67 4.09 2.01 4.98 (4.29)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations .15 1.53 3.96 1.84 4.82 (4.44)
----------- ----------- ----------- ----------- ----------- -----------
Less distributions from realized gain--net (.69) (2.72) (3.66) (.13) -- (.30)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 17.00 $ 17.54 $ 18.73 $ 18.43 $ 16.72 $ 11.90
=========== =========== =========== =========== =========== ===========
Total Investment Return**
Based on net asset value per share .53%+++ 8.94% 22.69% 11.00% 40.50% (26.75%)
=========== =========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses 2.03%++ 2.03% 2.04% 2.05% 2.15% 2.17%
=========== =========== =========== =========== =========== ===========
Investment loss--net (.88%)++ (.75%) (.67%) (.99%) (1.14%) (1.05%)
=========== =========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 66,739 $ 78,174 $ 112,073 $ 125,145 $ 139,610 $ 115,748
=========== =========== =========== =========== =========== ===========
Portfolio turnover 87% 99% 110% 82% 86% 74%
=========== =========== =========== =========== =========== ===========
* Based on average shares outstanding.
** Total investment returns exclude the effects of sales charges.
++ Annualized.
+++ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Financial Highlights (continued)
Investor C
For the Six
The following per share data and ratios Months Ended
have been derived from information July 31, 2007 For the Year Ended January 31,
provided in the financial statements. (Unaudited) 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of period $ 17.36 $ 18.61 $ 18.39 $ 16.68 $ 11.88 $ 16.61
----------- ----------- ----------- ----------- ----------- -----------
Investment loss--net* (.09) (.14) (.13) (.18) (.16) (.15)
Realized and unrealized gain (loss)--net .24 1.65 4.07 2.02 4.96 (4.27)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations .15 1.51 3.94 1.84 4.80 (4.42)
----------- ----------- ----------- ----------- ----------- -----------
Less distributions from realized gain--net (.69) (2.76) (3.72) (.13) -- (.31)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 16.82 $ 17.36 $ 18.61 $ 18.39 $ 16.68 $ 11.88
=========== =========== =========== =========== =========== ===========
Total Investment Return**
Based on net asset value per share .54%+++ 8.90% 22.65% 11.03% 40.40% (26.73%)
=========== =========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses 2.09%++ 2.04% 2.05% 2.06% 2.16% 2.19%
=========== =========== =========== =========== =========== ===========
Investment loss--net (.95%)++ (.78%) (.67%) (1.00%) (1.15%) (1.07%)
=========== =========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 105,812 $ 111,084 $ 103,468 $ 89,771 $ 84,755 $ 67,233
=========== =========== =========== =========== =========== ===========
Portfolio turnover 87% 99% 110% 82% 86% 74%
=========== =========== =========== =========== =========== ===========
* Based on average shares outstanding.
** Total investment returns exclude the effects of sales charges.
++ Annualized.
+++ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Financial Highlights (concluded)
Class R
For the For the Period
Six Months February 4,
The following per share data and ratios Ended For the Year Ended 2003++ to
have been derived from information July 31, 2007 January 31, January 31,
provided in the financial statements. (Unaudited) 2007 2006 2005 2004
Per Share Operating Performance
Net asset value, beginning of period $ 17.58 $ 18.81 $ 18.71 $ 16.87 $ 11.81
----------- ----------- ----------- ----------- -----------
Investment loss--net** (.04) (.05) (.02) (.08) (.09)
Realized and unrealized gain--net .23 1.69 4.11 2.05 5.15
----------- ----------- ----------- ----------- -----------
Total from investment operations .19 1.64 4.09 1.97 5.06
----------- ----------- ----------- ----------- -----------
Less distributions from realized gain--net (.70) (2.87) (3.99) (.13) --
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 17.07 $ 17.58 $ 18.81 $ 18.71 $ 16.87
=========== =========== =========== =========== ===========
Total Investment Return
Based on net asset value per share .76%+++ 9.55% 23.26% 11.68% 42.85%+++
=========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses 1.55%* 1.51% 1.51% 1.51% 1.53%*
=========== =========== =========== =========== ===========
Investment loss--net (.42%)* (.28%) (.11%) (.45%) (.58%)*
=========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 42,875 $ 32,476 $ 17,981 $ 7,356 $ 467
=========== =========== =========== =========== ===========
Portfolio turnover 87% 99% 110% 82% 86%
=========== =========== =========== =========== ===========
* Annualized.
** Based on average shares outstanding.
++ Commencement of operations.
+++ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock Mid Cap Value Opportunities Fund (the "Fund") and BlackRock Mid Cap
Value Opportunities Series, Inc. (the "Series") is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may
require the use of management accruals and estimates. Actual results may
differ from these estimates. These unaudited financial statements reflect all
such adjustments, which are, in the opinion of management, necessary to
present a fair statement of the results for the interim period. All such
adjustments are of a normal, recurring nature. The Fund offers multiple
classes of shares. Institutional Shares are sold only to certain eligible
investors. Investor A Shares are sold with a front-end sales charge. Shares of
Investor B and Investor C may be subject to a contingent deferred sales
charge. Class R Shares are sold only to certain retirement plans. All classes
of shares have identical voting, dividend, liquidation and other rights and
the same terms and conditions, except that Investor A, Investor B, Investor C
and Class R Shares bear certain expenses related to the shareholder servicing
of such shares, and Investor B, Investor C and Class R Shares also bear
certain expenses related to the distribution of such shares. Each class has
exclusive voting rights with respect to matters relating to its shareholder
servicing and distribution expenditures (except that investor B shareholders
may vote on certain changes to the Investor A distribution plan). Income,
expenses (other than expenses attributable to a specific class) and realized
and unrealized gains and losses are allocated daily to each class based on its
relative net assets. The following is a summary of significant accounting
policies followed by the Fund.
(a) Valuation of investments--Equity securities held by the Fund that are
traded on stock exchanges or the NASDAQ Global Market are valued at the last
sale price or official close price on the exchange, as of the close of
business on the day the securities are being valued or, lacking any sales, at
the last available bid price for long positions, and at the last available
asked price for short positions. In cases where equity securities are traded
on more than one exchange, the securities are valued on the exchange
designated as the primary market by or under the authority of the Board of
Directors of the Series. Long positions traded in the over-the-counter ("OTC")
markets, NASDAQ Capital Market or Bulletin Board are valued at the last
available bid price or yield equivalent obtained from one or more dealers or
pricing services approved by the Board of Directors of the Series. Short
positions traded in the OTC markets are valued at the last available asked
price. Portfolio securities that are traded both in the OTC markets and on a
stock exchange are valued according to the broadest and most representative
market.
Options written or purchased are valued at the last sale price in the case of
exchange-traded options. Options traded in the OTC market are valued at the
last asked price (options written) or the last bid price (options purchased).
Swap agreements are valued based upon quoted fair valuations received daily by
the Fund from a pricing service or counterparty. Financial futures contracts
and options thereon, which are traded on exchanges, are valued at their last
sale price as of the close of such exchanges. Valuation of short-term
investment vehicles is generally based on the net asset value of the
underlying investment vehicle or amortized cost.
Repurchase agreements are valued at cost plus accrued interest. The Fund
employs pricing services to provide certain securities prices for the Fund.
Securities and assets for which market quotations are not readily available
are valued at fair value as determined in good faith by or under the direction
of the Board of Directors of the Series, including valuations furnished by the
pricing services retained by the Fund, which may use a matrix system for
valuations. The procedures of a pricing service and its valuations are
reviewed by the officers of the Series under the general supervision of the
Series' Board of Directors. Such valuations and procedures will be reviewed
periodically by the Board of Directors of the Series.
Generally, trading in foreign securities, as well as U.S. government
securities, money market instruments and certain fixed income securities, is
substantially completed each day at various times prior to the close of
business on the New York Stock Exchange ("NYSE"). The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates will generally be
determined as of the close of business on the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of business on
the NYSE that may not be reflected in the computation of the Fund's net asset
value. If events (for example, a company announcement, market volatility or a
natural disaster) occur during such periods that are expected to materially
affect the value of such securities, those securities will be valued at their
fair value as determined in good faith by the Series' Board of Directors or by
BlackRock Advisors, LLC (the "Manager"), an indirect, wholly owned subsidiary
of BlackRock, Inc., using a pricing service and/or procedures approved by the
Series' Board of Directors.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Notes to Financial Statements (continued)
(b) Derivative financial instruments--The Fund may engage in various portfolio
strategies both to increase the return of the Fund and to hedge, or protect,
its exposure to interest rate movements and movements in the securities
markets. Losses may arise due to changes in the value of the contract or if
the counterparty does not perform under the contract. The counterparty for
certain instruments may pledge cash or securities as collateral.
* Financial futures contracts--The Fund may purchase or sell financial futures
contracts and options on such financial futures contracts. Financial futures
contracts are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a contract,
the Fund deposits, and maintains, as collateral such initial margin as
required by the exchange on which the transaction is effected. Pursuant to the
contract, the Fund agrees to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract. Such receipts or
payments are known as variation margin and are recorded by the Fund as
unrealized gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
* Options--The Fund may write put and covered call options and purchase call
and put options. When the Fund writes an option, an amount equal to the
premium received by the Fund is reflected as an asset and an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current value of the option written. When a security is purchased
or sold through an exercise of an option, the related premium paid (or
received) is added to (or deducted from) the basis of the security acquired or
deducted from (or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing trans-action), the Fund realizes a
gain or loss on the option to the extent of the premiums received or paid (or
gain or loss to the extent the cost of the closing transaction exceeds the
premium paid or received). Written and purchased options are non-income
producing investments.
* Foreign currency options and futures--The Fund may also purchase or sell
listed or OTC foreign currency options, foreign currency futures and related
options on foreign currency futures as a short or long hedge against possible
variations in foreign exchange rates. Such transactions may be effected with
respect to hedges on non-U.S. dollar-denominated securities owned by the Fund,
sold by the Fund but not yet delivered, or committed or anticipated to be
purchased by the Fund.
* Forward foreign exchange contracts--The Fund may enter into forward foreign
exchange contracts as a hedge against either specific transactions or
portfolio positions. The contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
contract is closed, the Fund records a realized gain or loss equal to the
difference between the value at the time it was opened and the value at the
time it was closed.
(c) Foreign currency transactions--Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized.
Assets and liabilities denominated in foreign currencies are valued at the
exchange rate at the end of the period. Foreign currency transactions are the
result of settling (realized) or valuing (unrealized) assets or liabilities
expressed in foreign currencies into U.S. dollars. Realized and unrealized
gains or losses from investments include the effects of foreign exchange rates
on investments. The Fund invests in foreign securities, which may involve a
number of risk factors and special considerations not present with investments
in securities of U.S. corporations.
(d) Income taxes--It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax law, a withholding tax may be imposed on interest, dividends and
capital gains at various rates.
(e) Security transactions and investment income--Security transactions are
recorded on the dates the trans-actions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Dividends from foreign securities where the ex-dividend date may have passed
are subsequently recorded when the Fund has determined the ex-dividend date.
Upon notification from issuers, some of the dividend income received from a
real estate investment trust ("REIT") may be redesignated as a reduction of
cost of the related investment and/or realized gain. Interest income is
recognized on the accrual basis.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Notes to Financial Statements (continued)
(f) Prepaid registration fees--Prepaid registration fees are charged to
expense as the related shares are issued.
(g) Dividends and distributions--Dividends and distributions paid by the Fund
are recorded on the ex-dividend dates.
(h) Securities lending--The Fund may lend securities to financial institutions
that provide cash or securities issued or guaranteed by the U.S. government as
collateral, which will be maintained at all times in an amount equal to at
least 100% of the current market value of the loaned securities. The market
value of the loaned securities is determined at the close of business of the
Fund and any additional required collateral is delivered to the Fund on the
next business day. Where the Fund receives securities as collateral for the
loaned securities, it collects a fee from the borrower. The Fund typically
receives the income on the loaned securities but does not receive the income
on the collateral. Where the Fund receives cash collateral, it may invest such
collateral and retain the amount earned on such investment, net of any amount
rebated to the borrower. Loans of securities are terminable at any time and
the borrower, after notice, is required to return borrowed securities within
five business days. The Fund may pay reasonable finders, lending agent,
administrative and custodial fees in connection with its loans. In the event
that the borrower defaults on its obligation to return borrowed securities
because of insolvency or for any other reason, the Fund could experience
delays and costs in gaining access to the collateral. The Fund also could
suffer a loss where the value of the collateral falls below the market value
of the borrowed securities, in the event of borrower default or in the event
of losses on investments made with cash collateral.
(i) Recent accounting pronouncement--Effective June 29, 2007, the Fund
implemented Financial Accounting Standards Board ("FASB") Interpretation
No. 48, "Accounting for Uncertainty in Income Taxes - an interpretation of
FASB Statement No. 109" ("FIN 48"). FIN 48 prescribes the minimum recognition
threshold a tax position must meet in connection with accounting for
uncertainties in income tax positions taken or expected to be taken by an
entity, including investment companies, before being measured and recognized
in the financial statements. Management has evaluated the application of FIN
48 to the Fund, and has determined that the adoption of FIN 48 does not have a
material impact on the Fund's financial statements. The Fund files U.S. and
various state tax returns. No income tax returns are currently under
examination. The statute of limitations on the Fund's tax returns remains open
for the years ended January 31, 2004 through January 31, 2007.
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the implications of FAS 157.
At this time, its impact on the Fund's financial statements has not been
determined.
In addition, in February 2007, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also
elects to apply the provisions of FAS 157. FAS 159 permits entities to choose
to measure many financial instruments and certain other items at fair value
that are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is
evaluating the implications of FAS 159 and its impact on the Fund's financial
statements, if any, has not been determined.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with the Manager.
The Fund has also entered into separate Distribution Agreements and
Distribution Plans with FAM Distributors, Inc. ("FAMD") and BlackRock
Distributors, Inc. and its affiliates ("BDI") (collectively, the
"Distributor"). FAMD is a wholly owned subsidiary of Merrill Lynch Group, Inc.
and BDI is an affiliate of BlackRock, Inc. Merrill Lynch & Co., Inc. ("Merrill
Lynch") and The PNC Financial Services Group, Inc. ("PNC") are the principal
owners of BlackRock, Inc.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Notes to Financial Statements (continued)
The Manager is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Fund. For such services, the Fund
pays a monthly fee of .65%, on an annual basis, of the average daily value of
the Fund's net assets. In addition, the Manager has entered into a Sub-
Advisory Agreement with BlackRock Investment Management, LLC ("BIM"), an
affiliate of the Manager, under which the Manager pays BIM for services it
provides a monthly fee that is a percentage of the management fee paid by the
Fund to the Manager.
Pursuant to the Distribution Plans adopted by the Series in accordance with
Rule 12b-1 under the Investment Company Act of 1940, the Fund pays the
Distributor ongoing service fees and distribution fees. The fees are accrued
daily and paid monthly at annual rates based upon the average daily net assets
of the shares as follows:
Service Distribution
Fee Fee
Investor A .25% --
Investor B .25% .75%
Investor C .25% .75%
Class R .25% .25%
Pursuant to sub-agreements with each Distributor, broker-dealers, including
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned
subsidiary of Merrill Lynch, and each Distributor provide shareholder
servicing and distribution services to the Fund. The on-going service fee
compensates the Distributor and each broker-dealer (including MLPF&S) for
providing shareholder servicing to Investor A, Investor B, Investor C and
Class R shareholders. The ongoing distribution fee compensates each
Distributor and MLPF&S for providing shareholder and distribution-related
services to Investor B, Investor C and Class R shareholders.
For the six months ended July 31, 2007, FAMD and BDI earned underwriting
discounts and direct commissions and MLPF&S earned dealer concessions on sales
of the Fund's Investor A Shares as follows:
FAMD MLPF&S BDI
Investor A $1,132 $14,310 $ 5
For the six months ended July 31, 2007, affiliates received contingent
deferred sales charges of $28,200 and $2,808 relating to transactions in
Investor B and Investor C Shares, respectively. Furthermore affiliates
received contingent deferred sales charges of $156 relating to transactions
subject to front-end sales charge waivers in Investor A Shares.
The Manager maintains a call center, which is responsible for providing
certain shareholder services to the Fund, such as responding to shareholder
inquiries and processing trans-actions based upon instructions from
shareholders with respect to the subscription and redemption of Fund shares.
During the six months ended July 31, 2007, the following amounts have been
accrued by the Fund to reimburse the Manager for costs incurred running the
call center, which are a component of the transfer agent fees in the
accompanying Statement of Operations.
Call Center
Fees
Institutional $ 880
Investor A $2,250
Investor B $2,400
Investor C $2,490
Class R $ 290
The Fund has received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to MLPF&S, or its
affiliates. As of July 31, 2007, the Fund lent securities with a value of
$6,768,756 to MLPF&S or its affiliates. Pursuant to that order, the Fund has
retained BIM as the securities lending agent for a fee based on a share of the
returns on investment of cash collateral. BIM may, on behalf of the Fund,
invest cash collateral received by the Fund for such loans, among other
things, in a private investment company managed by the Manager or in
registered money market funds advised by the Manager or its affiliates. For
the six months ended July 31, 2007, BIM received $20,160 in securities lending
agent fees.
In addition, MLPF&S received $189,743 in commissions on the execution of
portfolio security transactions for the Fund for the six months ended
July 31, 2007.
PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the
Manager, is the Fund's transfer agent.
For the six months ended July 31, 2007, the Fund reimbursed the Manager $5,666
for certain accounting services.
Certain officers and/or directors of the Series are officers and/or directors
of BlackRock, Inc. or its affiliates.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Notes to Financial Statements (continued)
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
six months ended July 31, 2007 were $394,169,769 and
$408,362,497,respectively.
4. Capital Share Transactions:
Net increase in net assets derived from capital share transactions were
$7,465,778 and $26,982,831 for the six months ended July 31, 2007 and year
ended January 31, 2007, respectively.
Transactions in capital shares for each class were as follows:
Institutional Shares
for the Six Months Dollar
Ended July 31, 2007 Shares Amount
Shares sold 395,299 $ 7,737,300
Shares issued to shareholders in
reinvestment of distributions 184,315 3,702,315
-------------- ---------------
Total issued 579,614 11,439,615
Shares redeemed (689,293) (13,544,237)
-------------- ---------------
Net decrease (109,679) $ (2,104,622)
=============== ===============
Institutional Shares for the Year Dollar
Ended January 31, 2007 Shares Amount
Shares sold 1,017,656 $ 19,775,896
Shares issued to shareholders in
reinvestment of distributions 867,983 15,926,489
-------------- ---------------
Total issued 1,885,639 35,702,385
Shares redeemed (2,063,926) (39,234,724)
-------------- ---------------
Net decrease (178,287) $ (3,532,339)
=============== ===============
Investor A Shares
for the Six Months Dollar
Ended July 31, 2007 Shares Amount
Shares sold 1,334,303 $ 25,861,577
Shares issued to shareholders in
reinvestment of distributions 231,502 4,569,782
-------------- ---------------
Total issued 1,565,805 30,431,359
Shares redeemed (1,113,432) (21,435,035)
-------------- ---------------
Net increase 452,373 $ 8,996,324
=============== ===============
Investor A Shares for the Year Dollar
Ended January 31, 2007 Shares Amount
Shares sold 1,921,922 $ 36,543,811
Automatic conversion of shares 643,668 12,325,381
Shares issued to shareholders in
reinvestment of distributions 864,301 15,628,167
-------------- ---------------
Total issued 3,429,891 64,497,359
Shares redeemed (1,894,057) (35,757,555)
-------------- ---------------
Net increase 1,535,834 $ 28,739,804
=============== ===============
Investor B Shares
for the Six Months Dollar
Ended July 31, 2007 Shares Amount
Shares sold 153,778 $ 2,809,146
Automatic conversion of shares
Shares issued to shareholders in
reinvestment of distributions 129,460 2,411,691
-------------- ---------------
Total issued 283,238 5,220,837
Shares redeemed (814,634) (14,929,514)
-------------- ---------------
Net decrease (531,396) $ (9,708,677)
=============== ===============
Investor B Shares for the Year Dollar
Ended January 31, 2007 Shares Amount
Shares sold 410,924 $ 7,482,953
Shares issued to shareholders in
reinvestment of distributions 629,280 10,790,352
-------------- ---------------
Total issued 1,040,204 18,273,305
-------------- ---------------
Automatic conversion of shares (676,606) (12,325,381)
Shares redeemed (1,891,232) (34,398,748)
-------------- ---------------
Total redeemed (2,567,838) (46,724,129)
-------------- ---------------
Net decrease (1,527,634) $ (28,450,824)
=============== ===============
Investor C Shares
for the Six Months Dollar
Ended July 31, 2007 Shares Amount
Shares sold 621,594 $ 11,261,296
Shares issued to shareholders in
reinvestment of distributions 215,024 3,962,777
-------------- ---------------
Total issued 836,618 15,224,073
Shares redeemed (942,109) (17,127,871)
-------------- ---------------
Net decrease (105,491) $ (1,903,798)
=============== ===============
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
Notes to Financial Statements (concluded)
Investor C Shares for the Year Dollar
Ended January 31, 2007 Shares Amount
Shares sold 1,297,431 $ 23,302,291
Shares issued to shareholders in
reinvestment of distributions 849,262 14,441,263
-------------- ---------------
Total issued 2,146,693 37,743,554
Shares redeemed (1,310,320) (23,587,163)
-------------- ---------------
Net increase 836,373 $ 14,156,391
=============== ===============
Class R Shares
for the Six Months Dollar
Ended July 31, 2007 Shares Amount
Shares sold 930,684 $ 17,088,288
Shares issued to shareholders in
reinvestment of distributions 88,826 1,661,928
-------------- ---------------
Total issued 1,019,510 18,750,216
Shares redeemed (355,419) (6,563,665)
-------------- ---------------
Net increase 664,091 $ 12,186,551
=============== ===============
Class R Shares for the Year Dollar
Ended January 31, 2007 Shares Amount
Shares sold 1,271,414 $ 22,998,456
Shares issued to shareholders in
reinvestment of distributions 249,194 4,291,601
-------------- ---------------
Total issued 1,520,608 27,290,057
Shares redeemed (628,987) (11,220,258)
-------------- ---------------
Net increase 891,621 $ 16,069,799
=============== ===============
5. Short-Term Borrowings:
The Series, on behalf of the Fund, along with certain other funds managed by
the Manager and its affiliates, is a party to a $500,000,000 credit agreement
with a group of lenders, which expires November 2007. The Fund may borrow
under the credit agreement to fund shareholder redemptions and for other
lawful purposes other than for leverage. The Fund may borrow up to the maximum
amount allowable under the Fund's current prospectus and statement of
additional information, subject to various other legal, regulatory or
contractual limits. If amounts are borrowed, the Fund will pay a commitment
fee of .06% per annum based on the Fund's pro rata share of the unused portion
of the credit agreement. Amounts borrowed under the credit agreement bear
interest at a rate equal to, at each fund's election, the federal funds rate
plus .35% or a base rate as defined in the credit agreement. The Fund did not
borrow under the credit agreement during the period ended July 31, 2007.
Officers and Directors
Robert C. Doll, Jr., President and Director
James H. Bodurtha, Director
Kenneth A. Froot, Director
Joe Grills, Director
Herbert I. London, Director
Roberta Cooper Ramo, Director
Robert S. Salomon, Jr., Director
Donald C. Burke, Vice President and Treasurer
Karen Clark, Fund Chief Compliance Officer
Alice A. Pellegrino, Secretary
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent
PFPC Inc.
Wilmington, DE 19809
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
BlackRock Funds
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 nonpublic personal information. The following information
is provided to help you understand what personal information BlackRock
collects, how we protect that information and why in certain cases we share
such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal nonpublic 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 Web sites.
BlackRock does not sell or disclose to nonaffiliated third parties any
nonpublic 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 nonaffiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that
may be of interest to you. In addition, BlackRock restricts access to
nonpublic personal information about its Clients to those BlackRock employees
with a legitimate business need for the information. BlackRock maintains
physical, electronic and procedural safeguards that are designed to protect
the nonpublic personal information of its Clients, including procedures
relating to the proper storage and disposal of such information.
Availability of Additional Information
Electronic copies of most financial reports and prospectuses are available on
the Fund's Web site or shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Fund's electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment
advisers, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock Web site at
http://www.blackrock.com/edelivery
2) Select eDelivery under the More Information section
3) Log into your account
The Fund will mail only one copy of shareholder documents, including
prospectuses, annual and semi-annual reports and proxy statements, to
shareholders with multiple accounts at the same address. This practice is
commonly called "householding" and it is intended to reduce expenses and
eliminate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you instruct us
otherwise. If you do not want the mailing of these documents to be combined
with those for other members of your household, please contact the Fund at
(800) 441-7762.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
BlackRock Funds (concluded)
Availability of Additional Information (concluded)
Availability of Proxy Voting Policies and Procedures
The Fund has delegated proxy voting responsibilities to BlackRock and its
affiliates, subject to the general oversight of the Series' Board of
Directors. A description of the policies and procedures that BlackRock and its
affiliates use to determine how to vote proxies relating to portfolio
securities is available without charge, upon request, on our Web site at
www.blackrock.com, by calling (800) 441-7762, or on the Web site of the
Securities and Exchange Commission (the "Commission") at http://www.sec.gov.
Availability of Proxy Voting Record
Information on how proxies relating to the Fund's voting securities were
voted (if any) by BlackRock during the most recent 12-month period ended
June 30 is available, upon request and without charge, on our Web site at
www.blackrock.com, by calling (800) 441-7762 or on the Web site of the
Commission at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Fund files its complete schedule of portfolio holdings for the first and
third quarters of its fiscal year with the Commission on Form N-Q. The Fund's
Forms N-Q are available on the Commission's Web site at http://www.sec.gov
and may be reviewed and copied at the Commission's Public Reference Room in
Washington, D.C. Information regarding the operation of the Public Reference
Room may be obtained by calling (202) 551-8090. The Fund's Forms N-Q may also
be obtained upon request, without charge, by calling (800) 441-7762.
Shareholder Privileges
Account Information
Call us at (800) 441-7762 8:00 AM - 6:00 PM EST to get information about your
account balances, recent transactions and share prices. You can also reach us
on the Web at www.blackrock.com.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have
$50 or more automatically deducted from their checking or savings account and
invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as long
as their account is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
A World-Class Mutual Fund Family
BlackRock offers a diverse lineup of open-end mutual funds crossing all
investment styles and managed by experts in equity, fixed income and
tax-exempt investing.
Equity Funds
BlackRock All-Cap Global Resources Portfolio
BlackRock Aurora Portfolio
BlackRock Asset Allocation Portfolio++
BlackRock Balanced Capital Fund++
BlackRock Basic Value Fund
BlackRock Capital Appreciation Portfolio
BlackRock Developing Capital Markets Fund
BlackRock Equity Dividend Fund
BlackRock EuroFund
BlackRock Focus Twenty Fund
BlackRock Focus Value Fund
BlackRock Fundamental Growth Fund
BlackRock Global Allocation Fund++
BlackRock Global Dynamic Equity Fund
BlackRock Global Financial Services Fund
BlackRock Global Growth Fund
BlackRock Global Opportunities Portfolio
BlackRock Global Resources Portfolio*
BlackRock Global Science & Technology
Opportunities Portfolio
BlackRock Global SmallCap Fund
BlackRock Healthcare Fund
BlackRock Health Sciences Opportunities Portfolio
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio*
BlackRock International Value Fund
BlackRock Investment Trust
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
BlackRock Latin America Fund
BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Mid-Cap Value Equity Portfolio
BlackRock Mid Cap Value Opportunities Fund
BlackRock Natural Resources Trust
BlackRock Pacific Fund
BlackRock Small Cap Core Equity Portfolio
BlackRock Small Cap Growth Equity Portfolio
BlackRock Small Cap Growth Fund II
BlackRock Small Cap Index Fund
BlackRock Small Cap Value Equity Portfolio*
BlackRock Small/Mid-Cap Growth Portfolio
BlackRock S&P 500 Index Fund
BlackRock Technology Fund
BlackRock U.S. Opportunities Portfolio
BlackRock Utilities and Telecommunications Fund
BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock Bond Fund
BlackRock Commodity Strategies Fund
BlackRock Enhanced Income Portfolio
BlackRock GNMA Portfolio
BlackRock Government Income Portfolio
BlackRock High Income Fund
BlackRock High Yield Bond Portfolio
BlackRock Inflation Protected Bond Portfolio
BlackRock Intermediate Bond Portfolio II
BlackRock Intermediate Government
Bond Portfolio
BlackRock International Bond Portfolio
BlackRock Low Duration Bond Portfolio
BlackRock Managed Income Portfolio
BlackRock Short-Term Bond Fund
BlackRock Total Return Portfolio
BlackRock Total Return Portfolio II
BlackRock World Income Fund
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio
BlackRock California Insured Municipal Bond Fund
BlackRock Delaware Municipal Bond Portfolio
BlackRock Florida Municipal Bond Fund
BlackRock High Yield Municipal Fund
BlackRock Intermediate Municipal Fund
BlackRock Kentucky Municipal Bond Portfolio
BlackRock Municipal Insured Fund
BlackRock National Municipal Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock New York Municipal Bond Fund
BlackRock Ohio Municipal Bond Portfolio
BlackRock Pennsylvania Municipal Bond Fund
BlackRock Short-Term Municipal Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios
Conservative Prepared Portfolio
Moderate Prepared Portfolio
Growth Prepared Portfolio
Aggressive Growth Prepared Portfolio
BlackRock Lifecycle Prepared Portfolios
Prepared Portfolio 2010
Prepared Portfolio 2015
Prepared Portfolio 2020
Prepared Portfolio 2025
Prepared Portfolio 2030
Prepared Portfolio 2035
Prepared Portfolio 2040
Prepared Portfolio 2045
Prepared Portfolio 2050
* See the prospectus for information on specific limitations on
investments in the fund.
++ Mixed asset fund.
BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and
certain funds are also distributed by FAM Distributors, Inc. You should
consider the investment objectives, risks, charges and expenses of the funds
under consideration carefully before investing. Each fund's prospectus
contains this and other information and is available at www.blackrock.com or
by calling 800-882-0052 or from your financial advisor. The prospectus should
be read carefully before investing.
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND JULY 31, 2007
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 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form.
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 Committee will consider nominees to the
Board recommended by shareholders when a vacancy becomes available.
Shareholders who wish to recommend a nominee should send nominations
which 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 and 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
(17 CFR 270.30a-3(d)) 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.
BlackRock Mid Cap Value Opportunities Fund of
BlackRock Mid Cap Value Opportunities Series, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Mid Cap Value Opportunities Fund of
BlackRock Mid Cap Value Opportunities Series, Inc.
Date: September 20, 2007
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/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Mid Cap Value Opportunities Fund of
BlackRock Mid Cap Value Opportunities Series, Inc.
Date: September 20, 2007
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock Mid Cap Value Opportunities Fund of
BlackRock Mid Cap Value Opportunities Series, Inc.
Date: September 20, 2007