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 811-09637
811-09739
Name of Fund: BlackRock Large Cap Series Funds, Inc.
BlackRock Large Cap Series Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock Large Cap Series Funds, Inc. and BlackRock Large Cap
Series Trust, 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: 10/31/07
Date of reporting period: 11/01/06 - 04/30/07
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES
FIXED INCOME LIQUIDITY REAL ESTATE
BlackRock BLACKROCK
Large Cap Series Funds, Inc.
SEMI-ANNUAL REPORT
APRIL 30, 2007 | (UNAUDITED)
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
BlackRock Large Cap Series Funds, Inc.
Officers and Directors/Trustees
Robert C. Doll, Jr., Fund/Trust President, Director/Trustee
and Portfolio Manager
James H. Bodurtha, Director/Trustee
Kenneth A. Froot, Director/Trustee
Joe Grills, Director/Trustee
Herbert I. London, Director/Trustee
Roberta Cooper Ramo, Director/Trustee
Robert S. Salomon, Jr., Director/Trustee
Donald C. Burke, Vice President and Treasurer
Karen Clark, Fund/Trust Chief Compliance Officer
Alice A. Pellegrino, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3661
Transfer Agent
PFPC Inc.
Wilmington, DE 19809
Fund Address
P.O. Box 9011
Princeton, NJ 08543-9011
2 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
A Letter to Shareholders
Dear Shareholder
In its first four months, 2007 could already be termed an eventful year for
investors. For most financial markets, 2007 opened just as 2006 ended -- on a
positive trajectory. Then, at the end of February and into March, global equity
markets registered their first significant decline since last summer. The market
jitters were triggered by a significant setback in the Chinese market and were
exacerbated by worries of a weakening economy, escalating geopolitical concerns
and rising delinquencies in the subprime mortgage market. Still, underlying
stock market fundamentals appeared quite sound, supported by a generally
favorable global economic backdrop, tame inflation, slowing but still positive
earnings growth, relatively low interest rates and attractive valuations. These
conditions prevailed later, and the Dow Jones Industrial Average crossed the
13,000 mark for the first time in its history in late April.
Not unlike the equity market, the bond market also experienced volatility as
observers attempted to interpret mixed economic signals. A bond market rally
(falling yields and rising prices) late last year reversed itself early in 2007
amid some transitory signs of economic strength. Overall, yields have fluctuated
month to month but ended April little changed from the beginning of the year.
However, compared to one year ago, yields on 30-year Treasury bonds fell 36
basis points (.36%) and 10-year yields fell 44 basis points, while prices
correspondingly rose.
For its part, the Federal Reserve Board (the Fed) has left the target short-term
interest rate on hold at 5.25% since first pausing in its interest rate-hiking
campaign on August 8, 2006. The central bankers continue to express concern
about potential inflationary pressures, but also acknowledge signs of economic
weakness. Given this relatively "balanced" assessment, most observers believe
the Fed will keep interest rates on hold for now.
Against this backdrop, most major market indexes posted positive returns for the
annual and semi-annual reporting periods ended April 30, 2007:
Total Returns as of April 30, 2007 6-month 12-month
==================================================================================================================
U.S. equities (Standard & Poor's 500 Index) + 8.60% +15.24%
- ------------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) + 6.86 + 7.83
- ------------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +15.46 +19.81
- ------------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers Aggregate Bond Index) + 2.64 + 7.36
- ------------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.59 + 5.78
- ------------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) + 6.96 +11.72
- ------------------------------------------------------------------------------------------------------------------
If the first four months are any guide, 2007 could be a year of enhanced market
volatility. 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 insight, we invite you to view "What's Ahead in 2007: An
Investment Perspective" and "Are You Prepared for Volatility?" at
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,
/s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
Fund/Trust President and Director/Trustee
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 3
A Discussion With Your Funds' Portfolio Manager
Amid a volatile investment backdrop, the Funds provided strong absolute
and relative returns for the period compared to their respective benchmarks and
Lipper category averages.
How did the Funds perform during the period in light of the existing market
conditions?
For the six-month period ended April 30, 2007, BlackRock Large Cap Core Fund's
Institutional, Investor A, Investor B, Investor C and Class R Shares had total
returns of +9.45%, +9.32%, +8.88%, +8.98% and +9.23%, respectively, competitive
with the +9.10% return of the benchmark Russell 1000 Index and the +9.08%
average return of its comparable Lipper category of Multi-Cap Core Funds.*
BlackRock Large Cap Growth Fund's Institutional, Service, Investor A, Investor
B, Investor C and Class R Shares had total returns of +10.55%, +10.47%, +10.46%,
+9.90%, +9.91% and +10.24%, respectively, exceeding the +8.42% return of the
benchmark Russell 1000 Growth Index and the +9.13% average return of its
comparable Lipper category of Multi-Cap Growth Funds.*
BlackRock Large Cap Value Fund's Institutional, Service, Investor A, Investor B,
Investor C and Class R Shares had total returns of +10.52%, +10.34%, +10.45%,
+9.96%, +9.93% and +10.30%, respectively, also surpassing the +9.79% return of
its benchmark, the Russell 1000 Value Index, and the +9.70% average return of
the Lipper Multi-Cap Value Funds category for the six-month period.*
(Fund results shown do not reflect sales charges and would be lower if sales
charges were included. Complete performance information for each Fund can be
found on pages 6 - 10 of this report to shareholders.)
The Funds invest in large-capitalization stocks that represent a significant
part of the U.S. stock market and, therefore, were influenced by the same
economic and market events that affected the broader stock market during the
past six months. That investment environment was challenging at times. The
beginning of the period saw mid-term elections in Congress in which control
shifted from Republicans to Democrats. We believe this shift is likely to change
the course of legislation over the next few years. Free trade policies,
healthcare-related legislation (such as Medicare prescription drug benefits) and
tax policies (specifically, moderating or eliminating reduced taxation) all may
be affected in the near future.
Economic news was mixed throughout the period, but its impact on the market was
at first minimal, as the beginning of the period saw equities reach record
highs. Although fears over a weakening U.S. housing market and a slowdown in
consumer spending sparked investor concern, markets rallied from the start of
the period until February, when the Dow Jones Industrial Average, the U.S. index
containing 30 stocks listed on the New York Stock Exchange, lost more than 416
points. This represented the largest one week decline in the markets since
September 2001, and came on the heels of a substantial correction in Asian
markets, particularly China. The markets rebounded in the weeks that followed,
but remained volatile amid an increase in subprime mortgage delinquencies and
the high-profile bankruptcy of a leading subprime mortgage company. However,
there was ongoing investor debate as to whether the subprime meltdown would
spread through other parts of the economy.
During the reporting period, crude oil prices stabilized under $61 per barrel
thanks to unseasonably warm winter weather and ample inventories from non-OPEC
countries. The Federal Reserve Board (the Fed) remained at a pause in its
monetary policy, keeping interest rates steady at 5.25%. Gross domestic product
(GDP) for first quarter 2007 was revised down to 1.3%, compared to 2.5% growth
in fourth quarter 2006.
What factors most influenced the Funds' performance during the period?
Stock selection drove performance results for all three funds, particularly
within the energy (fuel), consumer staples (food retail), health care (providers
and pharmaceuticals), financials (banks) and industrials (machinery) sectors. A
meaningful underweighting of the financials sector also contributed positively
to the Funds' relative performance.
At the individual stock level, BlackRock Large Cap Core Fund benefited most from
its positions in Goodyear Tire & Rubber Co., Southern Copper Corp.,
Schering-Plough Corp., Cummins, Inc. and Holly Corp. The largest detractors were
* Lipper Multi-Cap funds invest in a variety of market capitalization ranges
without concentrating 75% of their equity assets in any one
market-capitalization range over an extended period of time. Multi-Cap
Core funds typically have an average price-to-earnings ratio,
price-to-book ratio and three-year sales-per-share growth value compared
to the S&P SuperComposite 1500 Index. Multi-Cap Growth funds typically
have an above-average price-to-earnings ratio, price-to-book ratio and
three-year sales-per-growth value compared to the S&P SuperComposite 1500
Index. Multi-Cap Value funds typically have a below-average
price-to-earnings ratio, price-to-book ratio and three-year
sales-per-growth value compared to the S&P SuperComposite 1500 Index.
4 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
technology companies BEA Systems, Inc., Lexmark International, Inc. and Intuit,
Inc., and retailers Ann Taylor Stores Corp. and Office Depot, Inc. In BlackRock
Large Cap Growth Fund, the largest positive contributors to performance were
Tesoro Corp., Avnet, Inc., Amgen Inc., Schering-Plough and ITT Educational
Services Inc., while the largest detractors were BEA Systems, Ann Taylor Stores,
Lexmark International, Office Depot and Applied Biosystems Group. The largest
contributors to performance for BlackRock Large Cap Value Fund during the
six-month period were Tesoro, Cummins, Bank of America Corp., The Kroger Co. and
Avnet, and the largest detractors were Lexmark, Applied Biosystems, Motorola,
Inc., Office Depot and General Motors Corp.
As important as it was that we invested in stocks that performed well, it was
equally significant that we avoided those that did not perform well. Examples of
stocks that performed poorly within the benchmark, but aided the Funds' relative
results because they were underweighted in the portfolios, include: Amgen and
Starbucks Corp. within Large Cap Core Fund, Starbucks and Advanced Micro
Devices, Inc. within Large Cap Growth Fund, and Equity Residential within Large
Cap Value Fund.
What changes were made to the Funds' portfolios during the period?
Overall, we continued to identify companies with favorable growth
characteristics and earnings developments selling at attractive relative
valuations. As a result of our bottom-up stock-selection process, we increased
the Funds' positions in health care and reduced their exposure to the energy,
consumer discretionary, industrials and consumer staples sectors.
In Large Cap Core Fund, the largest purchases during the period in terms of
dollars spent were in UnitedHealth Group, Inc., Schering-Plough Corp., Coach,
Inc., CIGNA Corp. and Applied Materials, Inc. The largest sales were in Merck &
Co. Inc., Texas Instruments, Inc., Occidental Petroleum Corp., Motorola Inc. and
Cardinal Health Inc. In Large Cap Growth Fund, the largest purchases were in
International Business Machines Corp., UnitedHealth Group, WellPoint, Inc.,
Applied Materials and Schering-Plough, while the largest sales were in Texas
Instruments, Motorola, Abercrombie & Fitch Co., Emdeon Corp. and LSI Logic Corp.
In Large Cap Value Fund, the largest purchases were in Valero Energy Corp., H.J.
Heinz Co., WellPoint, International Business Machines and AT&T Inc. The largest
sales were in Occidental Petroleum Corp., Motorola, Caremark Rx, Inc., Ann
Taylor Stores and Dillard's, Inc. These transactions reflect our ongoing
refinement of the portfolios, as we continue to look for stocks that best meet
our investment criteria while pruning those that have deteriorated versus our
original assessment.
How would you characterize the Funds' positioning at the close of the period?
As of April 30, 2007, the Funds' largest overweights relative to their
respective benchmarks were in information technology, consumer discretionary,
health care and materials, and the largest underweights were in financials,
consumer staples and telecommunication services.
Given the mounting evidence of slowing economic growth, attention is
increasingly focusing on the Fed, with many observers wondering when the central
bank will begin cutting interest rates. Despite weaker growth rates, however, it
appears there are still enough mitigating factors to keep the Fed on hold for
now. Having said that, we do believe the Fed will begin cutting interest rates
by the end of the year as the economy continues to slow and as inflationary
pressures recede.
Based on the equity market run-up at the end of the period, there has been some
concern that stocks may be overbought, which could result in some sort of
near-term market correction. We acknowledge that the markets face headwinds in
the form of slowing economic growth, weakening corporate earnings growth and a
Fed that is not presently accommodative. In our opinion, however, the backdrop
for an equity bear market simply does not exist. Monetary policy is by no means
overly tight, inflation (while higher than the Fed would like) is still low and
seems to be easing, and earnings growth is slowing, not collapsing. From our
perspective, the tailwinds of good valuation levels, strong global economic
growth, ongoing corporate deal activity and the relative attractiveness of
stocks compared to other investments (chiefly bonds) should help the equity bull
market to continue.
Robert C. Doll, Jr.
Fund/Trust President, Director/Trustee and
Portfolio Manager
May 14, 2007
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 5
Performance Data
About Fund Performance
Effective October 2, 2006, the Funds' 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. Also
effective October 2, 2006, Service Shares commenced operations. As previously
communicated to shareholders, new sales charge schedules came into effect at the
same time for certain of these classes.
Each Fund has multiple classes of shares:
o 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.
o Service Shares are not subject to any sales charge. Service Shares are
subject to a service fee of 0.25% per year (but no distribution fee) and
are available only to eligible investors. Prior to October 2, 2006,
Service Share performance results are those of Institutional Shares (which
have no distribution or service fees) restated to reflect the Service
Share fees. Service Shares are offered only by BlackRock Large Cap Growth
Fund and BlackRock Large Cap Value Fund.
o 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).
o 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.
o 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.
o 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 for 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 reflect 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.
6 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Performance Data (continued)
Recent Performance Results
6-Month 12-Month Since Inception
As of April 30, 2007 Total Return Total Return Total Return
=====================================================================================================================
BlackRock Large Cap Core Fund Institutional Shares* + 9.45% +12.10% + 70.31%
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Core Fund Investor A Shares* + 9.32 +11.76 + 67.22
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Core Fund Investor B Shares* + 8.88 +10.93 + 57.92
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Core Fund Investor C Shares* + 8.98 +10.96 + 57.96
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Core Fund Class R Shares* + 9.23 +11.49 + 64.93
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund Institutional Shares* +10.55 +10.03 + 17.58
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund Service Shares* +10.47 + 9.73 + 15.41
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund Investor A Shares* +10.46 + 9.72 + 15.37
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund Investor B Shares* + 9.90 + 8.81 + 8.93
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund Investor C Shares* + 9.91 + 8.81 + 8.84
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund Class R Shares* +10.24 + 9.38 + 13.88
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Value Fund Institutional Shares* +10.52 +14.74 +133.49
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Value Fund Service Shares* +10.34 +14.39 +129.11
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Value Fund Investor A Shares* +10.45 +14.50 +129.31
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Value Fund Investor B Shares* + 9.96 +13.54 +116.64
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Value Fund Investor C Shares* + 9.93 +13.58 +116.60
- ---------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Value Fund Class R Shares* +10.30 +14.20 +126.30
- ---------------------------------------------------------------------------------------------------------------------
Russell 1000(R) Index** + 9.10 +15.16 + 21.06
- ---------------------------------------------------------------------------------------------------------------------
Russell 1000(R) Growth Index*** + 8.42 +12.25 - 23.61
- ---------------------------------------------------------------------------------------------------------------------
Russell 1000(R) Value Index**** + 9.79 +18.15 + 81.41
- ---------------------------------------------------------------------------------------------------------------------
* 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. Since inception total return
is from 12/22/99.
** This unmanaged broad-based Index measures the performance of the 1,000
largest companies in the Russell 3000(R) Index, which represents
approximately 92% of the total market capitalization of the Russell 3000
Index. Since inception total return is from 12/22/99.
*** This unmanaged broad-based Index is a subset of the Russell 1000 Index
consisting of those Russell 1000 securities with a greater-than-average
growth orientation. Since inception total return is from 12/22/99.
**** This unmanaged broad-based Index is a subset of the Russell 1000 Index
consisting of those Russell 1000 securities with lower price/book ratios
and lower forecasted growth values. Since inception total return is from
12/22/99.
Russell 1000 is a registered trademark of the Frank Russell Company.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 7
Performance Data (continued) BlackRock Large Cap Core Fund
BlackRock Large Cap Series Funds -- Edgar
BlackRock Large Cap Core Fund
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Institutional,
Investor A, Investor B, Investor C & Class R Shares compared to growth of an
investment in the Russell 1000 Index. Values are from December 22, 1999 to April
2007:
Institutional Investor A Investor B Investor C Class R Russell 1000
Shares*+ Shares*+ Shares*+ Shares*+ Shares*+ Index++
12/22/99** $10,000 $ 9,475 $10,000 $10,000 $10,000 $10,000
4/00 $11,910 $11,275 $11,870 $11,870 $11,889 $10,312
4/01 $10,165 $ 9,592 $10,021 $10,021 $10,096 $ 8,903
4/02 $10,024 $ 9,440 $ 9,781 $ 9,781 $ 9,907 $ 7,837
4/03 $ 8,374 $ 7,876 $ 8,091 $ 8,091 $ 8,258 $ 6,782
4/04 $10,765 $10,085 $10,291 $10,291 $10,573 $ 8,403
4/05 $12,039 $11,254 $11,395 $11,395 $11,776 $ 9,008
4/06 $15,193 $14,177 $14,236 $14,236 $14,792 $10,513
4/07 $17,031 $15,844 $15,792 $15,796 $16,493 $12,106
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including administration fees.
** Commencement of operations.
+ The Fund invests all of its assets in Master Large Cap Core Portfolio of
Master Large Cap Series Trust. The Portfolio invests primarily in a
diversified portfolio of equity securities of large cap companies located
in the United States that the Manager believes blends growth and value.
++ This unmanaged broad-based Index measures the performance of the 1,000
largest companies in the Russell 3000(R) Index, which represents
approximately 92% of the total market capitalization of the Russell 3000
Index.
Past performance is not indicative of future results.
Average Annual Total Return
================================================================================
Institutional Shares Return
================================================================================
One Year Ended 4/30/07 +12.10%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +11.18
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 + 7.51
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 4/30/07 +11.76% +5.89%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +10.91 +9.72
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 + 7.24 +6.46
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor B Shares++
================================================================================
One Year Ended 4/30/07 +10.93% +6.43%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +10.05 +9.78
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 + 6.41 +6. 41
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor C Shares+
================================================================================
One Year Ended 4/30/07 +10.96% + 9.96%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +10.06 +10.06
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 + 6.41 + 6.41
- --------------------------------------------------------------------------------
================================================================================
Class R Shares Return
================================================================================
One Year Ended 4/30/07 +11.49%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +10.73
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 + 7.04
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 5.25%.
+ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
++ Maximum contingent deferred sales charge is 4.50% and is reduced to 0%
after six years.
+++ Assuming payment of applicable contingent deferred sales charge.
8 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Performance Data (continued) BlackRock Large Cap Growth Fund
BlackRock Large Cap Growth Fund
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Institutional,
Service, Investor A, Investor B, Investor C & Class R Shares compared to growth
of an investment in the Russell 1000 Growth Index. Values are from December 22,
1999 to April 2007:
Russell
Institutional Service Investor A Investor B Investor C Class R 1000 Growth
Shares*+ Shares*+ Shares*+ Shares*+ Shares*+ Shares*+ Index++
12/22/99** $10,000 $10,000 $ 9,475 $10,000 $10,000 $10,000 $10,000
4/00 $12,090 $12,079 $11,436 $12,040 $12,040 $12,069 $10,435
4/01 $ 8,595 $ 8,565 $ 8,114 $ 8,481 $ 8,472 $ 8,536 $ 7,070
4/02 $ 7,874 $ 7,828 $ 7,413 $ 7,691 $ 7,682 $ 7,782 $ 5,648
4/03 $ 6,373 $ 6,320 $ 5,981 $ 6,151 $ 6,152 $ 6,277 $ 4,838
4/04 $ 8,094 $ 8,006 $ 7,583 $ 7,741 $ 7,732 $ 7,964 $ 5,885
4/05 $ 8,555 $ 8,441 $ 7,991 $ 8,091 $ 8,092 $ 8,370 $ 5,909
4/06 $10,686 $10,517 $ 9,963 $10,012 $10,003 $10,412 $ 6,806
4/07 $11,758 $11,541 $10,931 $10,893 $10,884 $11,388 $ 7,639
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including administration fees.
** Commencement of operations.
+ The Fund invests all of its assets in Master Large Cap Growth Portfolio of
Master Large Cap Series Trust. The Portfolio invests primarily in a
diversified portfolio of equity securities of large cap companies located
in the United States that the Manager believes have good prospects for
earnings growth.
++ This unmanaged broad-based Index is a subset of the Russell 1000 Index
consisting of those Russell 1000 securities with a greater-than-average
growth orientation.
Past performance is not indicative of future results.
Average Annual Total Return
Institutional Shares Return
================================================================================
One Year Ended 4/30/07 +10.03%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 + 8.35
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 + 2.23
- --------------------------------------------------------------------------------
Service Shares Return
================================================================================
One Year Ended 4/30/07 +9.73%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +8.07
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +1.97
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 4/30/07 +9.72% +3.96%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +8.08 +6.92
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +1.96 +1.22
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor B Shares++
================================================================================
One Year Ended 4/30/07 +8.81% +4.31%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +7.21 +6.90
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +1.17 +1.17
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor C Shares+
================================================================================
One Year Ended 4/30/07 +8.81% +7.81%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +7.22 +7.22
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +1.16 +1.16
- --------------------------------------------------------------------------------
================================================================================
Class R Shares Return
================================================================================
One Year Ended 4/30/07 +9.38%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +7.91
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +1.78
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 5.25%.
+ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
++ Maximum contingent deferred sales charge is 4.50% and is reduced to 0%
after six years.
+++ Assuming payment of applicable contingent deferred sales charge.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 9
Performance Data (concluded) BlackRock Large Cap Value Fund
BlackRock Large Cap Value Fund
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Institutional,
Service, Investor A, Investor B, Investor C & Class R Shares compared to growth
of an investment in the Russell 1000 Value Index. Values are from December 22,
1999 to April 2007:
Russell
Institutional Service Investor A Investor B Investor C Class R 1000 Value
Shares*+ Shares*+ Shares*+ Shares*+ Shares*+ Shares*+ Index++
12/22/99** $10,000 $10,000 $ 9,475 $10,000 $10,000 $10,000 $10,000
4/00 $10,850 $10,840 $10,271 $10,820 $10,820 $10,831 $10,142
4/01 $11,746 $11,706 $11,088 $11,581 $11,581 $11,667 $10,794
4/02 $12,326 $12,254 $11,600 $12,031 $12,031 $12,183 $10,372
4/03 $10,374 $10,287 $ 9,750 $10,031 $10,031 $10,236 $ 9,023
4/04 $13,908 $13,758 $13,032 $13,311 $13,301 $13,679 $11,392
4/05 $15,930 $15,719 $14,889 $15,087 $15,088 $15,596 $12,979
4/06 $20,349 $20,030 $18,976 $19,080 $19,070 $19,816 $15,355
4/07 $23,349 $22,911 $21,727 $21,664 $21,660 $22,630 $18,141
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including administration fees.
** Commencement of operations.
+ The Fund invests all of its assets in Master Large Cap Value Portfolio of
the Master Large Cap Series Trust. The Portfolio invests primarily in a
diversified portfolio of equity securities of large cap companies located
in the United States that the Manager believes are undervalued.
++ This unmanaged broad-based Index is a subset of the Russell 1000 Index
consisting of those Russell 1000 securities with lower price/book ratios
and lower forecasted growth values.
Past performance is not indicative of future results.
Average Annual Total Return
Institutional Shares Return
================================================================================
One Year Ended 4/30/07 +14.74%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +13.63
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +12.22
- --------------------------------------------------------------------------------
Service Shares Return
================================================================================
One Year Ended 4/30/07 +14.39%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +13.33
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +11.93
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 4/30/07 +14.50% + 8.48%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +13.37 +12.16
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +11.94 +11.12
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor B Shares++
================================================================================
One Year Ended 4/30/07 +13.54% + 9.04%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +12.48 +12.23
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +11.08 +11.08
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor C Shares+
================================================================================
One Year Ended 4/30/07 +13.58% +12.58%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +12.48 +12.48
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +11.08 +11.08
- --------------------------------------------------------------------------------
================================================================================
Class R Shares Return
================================================================================
One Year Ended 4/30/07 +14.20%
- --------------------------------------------------------------------------------
Five Years Ended 4/30/07 +13.19
- --------------------------------------------------------------------------------
Inception (12/22/99) through 4/30/07 +11.74
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 5.25%.
+ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
++ Maximum contingent deferred sales charge is 4.50% and is reduced to 0%
after six years.
+++ Assuming payment of applicable contingent deferred sales charge.
10 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Disclosure of Expenses
Shareholders of these Funds 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 November 1, 2006 and
held through April 30, 2007) is intended to assist shareholders both in
calculating expenses based on an investment in each 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 each 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 these Funds 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.
BlackRock Large Cap Core Fund
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value November 1, 2006
November 1, 2006 April 30, 2007 to April 30, 2007
========================================================================================================================
Actual
========================================================================================================================
Institutional $1,000 $1,094.50 $4.47
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $1,093.20 $5.76
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $1,088.80 $9.79
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $1,089.80 $9.74
- ------------------------------------------------------------------------------------------------------------------------
Class R $1,000 $1,092.30 $7.11
========================================================================================================================
Hypothetical (5% annual return before expenses)**
========================================================================================================================
Institutional $1,000 $1,020.54 $4.31
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $1,019.30 $5.56
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $1,015.43 $9.44
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $1,015.48 $9.39
- ------------------------------------------------------------------------------------------------------------------------
Class R $1,000 $1,018.01 $6.85
- ------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.86% for Institutional, 1.11% for Investor A, 1.89%
for Investor B, 1.88% for Investor C and 1.37% for Class R), multiplied by
the average account value over the period, multiplied by 181/365 (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 portfolio in which it invests.
** 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 LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 11
Disclosure of Expenses (continued)
BlackRock Large Cap Growth Fund
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value November 1, 2006
November 1, 2006 April 30, 2007 to April 30, 2007
========================================================================================================================
Actual
========================================================================================================================
Institutional $1,000 $1,105.50 $ 4.96
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $1,104.70 $ 6.52
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $1,104.60 $ 6.47
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $1,099.00 $10.88
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $1,099.10 $10.51
- ------------------------------------------------------------------------------------------------------------------------
Class R $1,000 $1,102.40 $ 8.03
========================================================================================================================
Hypothetical (5% annual return before expenses)**
========================================================================================================================
Institutional $1,000 $1,020.08 $ 4.76
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $1,018.59 $ 6.26
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $1,018.64 $ 6.21
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $1,014.43 $10.44
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $1,014.77 $10.09
- ------------------------------------------------------------------------------------------------------------------------
Class R $1,000 $1,017.15 $ 7.70
- ------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.95% for Institutional, 1.25% for Service, 1.24% for
Investor A, 2.09% for Investor B, 2.02% for Investor C and 1.54% for Class
R), multiplied by the average account value over the period, multiplied by
181/365 (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 portfolio in which it invests.
** 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.
12 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Disclosure of Expenses (concluded)
BlackRock Large Cap Value Fund
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value November 1, 2006
November 1, 2006 April 30, 2007 to April 30, 2007
========================================================================================================================
Actual
========================================================================================================================
Institutional $1,000 $1,105.20 $ 4.65
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $1,103.40 $ 6.68
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $1,104.50 $ 5.64
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $1,099.60 $10.36
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $1,099.30 $10.05
- ------------------------------------------------------------------------------------------------------------------------
Class R $1,000 $1,103.00 $ 7.35
========================================================================================================================
Hypothetical (5% annual return before expenses)**
========================================================================================================================
Institutional $1,000 $1,020.39 $ 4.46
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $1,018.45 $ 6.41
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $1,019.44 $ 5.41
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $1,014.93 $ 9.94
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $1,015.23 $ 9.64
- ------------------------------------------------------------------------------------------------------------------------
Class R $1,000 $1,017.81 $ 7.05
- ------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.89% for Institutional, 1.28% for Service, 1.08% for
Investor A, 1.99% for Investor B, 1.93% for Investor C and 1.41% for Class
R), multiplied by the average account value over the period, multiplied by
181/365 (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 portfolio in which it invests.
** 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 LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 13
Statements of Assets and Liabilities BlackRock Large Cap Series Funds, Inc.
BlackRock BlackRock BlackRock
Large Large Large
Cap Core Cap Growth Cap Value
As of April 30, 2007 (Unaudited) Fund Fund Fund
=============================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------
Investment in Master Large Cap Core Portfolio, Master
Large Cap Growth Portfolio and Master Large Cap Value
Portfolio (the "Portfolios"), respectively* ......... $ 4,200,837,563 $ 959,051,991 $ 4,804,961,007
Investment in Master S&P 500 Index Series (the
"Series")**@ ........................................ 17,527,088 -- --
Prepaid expenses and other assets ..................... 114,512 12,990 38,964
-------------------------------------------------------
Total assets .......................................... 4,218,479,163 959,064,981 4,804,999,971
-------------------------------------------------------
=============================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------
Payables:
Distributor ....................................... 1,749,081 359,845 1,533,089
Administrator ..................................... 796,404 198,627 955,927
Other affiliates .................................. 29,071 22,826 151,791
Accrued expenses and other liabilities ................ -- 97,420 46,353
-------------------------------------------------------
Total liabilities ..................................... 2,574,556 678,718 2,687,160
-------------------------------------------------------
=============================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
Net assets ............................................ $ 4,215,904,607 $ 958,386,263 $ 4,802,312,811
=======================================================
=============================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------
Undistributed (accumulated) investment income
(loss) -- net ....................................... $ (2,451,743) $ (2,464,613) $ 4,336,644
Undistributed (accumulated) realized capital gains
(losses) allocated from the Portfolios -- net ....... 106,451,550 (29,237,758) 93,433,999
Unrealized appreciation -- net ........................ 781,701,057 166,166,509 875,376,476
-------------------------------------------------------
Total accumulated earnings -- net ..................... 885,700,864 134,464,138 973,147,119
Institutional Shares of Common Stock, $.10 par value+ . 6,777,539 2,335,006 6,259,740
Service Shares of Common Stock, $.10 par value++ ...... -- 50,896 136,201
Investor A Shares of Common Stock, $.10 par value+++ .. 8,596,542 2,305,008 10,255,408
Investor B Shares of Common Stock, $.10 par value++++ . 2,778,872 1,030,076 1,636,031
Investor C Shares of Common Stock, $.10 par value+++++ 9,687,564 2,120,543 4,831,327
Class R Shares of Common Stock, $.10 par value++++++ .. 904,184 648,921 848,971
Paid-in capital in excess of par ...................... 3,301,459,042 815,431,675 3,805,198,014
-------------------------------------------------------
Net Assets ............................................ $ 4,215,904,607 $ 958,386,263 $ 4,802,312,811
=======================================================
14 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Statements of Assets and Liabilities (concluded)
BlackRock Large Cap Series Funds, Inc.
BlackRock BlackRock BlackRock
Large Large Large
Cap Core Cap Growth Cap Value
As of April 30, 2007 (Unaudited) Fund Fund Fund
=============================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------
Institutional:
Net assets ................................................ $ 1,032,924,408 $ 273,425,145 $ 1,290,333,007
=======================================================
Shares outstanding ........................................ 67,775,389 23,350,056 62,597,399
=======================================================
Net asset value ........................................... $ 15.24 $ 11.71 $ 20.61
=======================================================
Service:
Net assets ................................................ -- $ 5,948,743 $ 28,027,048
=======================================================
Shares outstanding ........................................ -- 508,964 1,362,013
=======================================================
Net asset value ........................................... -- $ 11.69 $ 20.58
=======================================================
Investor A:
Net assets ................................................ $ 1,287,004,796 $ 264,780,343 $ 2,076,841,265
=======================================================
Shares outstanding ........................................ 85,965,424 23,050,083 102,554,082
=======================================================
Net asset value ........................................... $ 14.97 $ 11.49 $ 20.25
=======================================================
Investor B:
Net assets ................................................ $ 394,133,909 $ 111,777,444 $ 314,268,513
=======================================================
Shares outstanding ........................................ 27,788,718 10,300,764 16,360,312
=======================================================
Net asset value ........................................... $ 14.18 $ 10.85 $ 19.21
=======================================================
Investor C:
Net assets ................................................ $ 1,370,658,946 $ 229,969,236 $ 925,873,765
=======================================================
Shares outstanding ........................................ 96,875,636 21,205,429 48,313,274
=======================================================
Net asset value ........................................... $ 14.15 $ 10.84 $ 19.16
=======================================================
Class R:
Net assets ................................................ $ 131,182,548 $ 72,485,352 $ 166,969,213
=======================================================
Shares outstanding ........................................ 9,041,841 6,489,205 8,489,706
=======================================================
Net asset value ........................................... $ 14.51 $ 11.17 $ 19.67
=======================================================
* Identified cost of the Portfolios ......................... $ 3,431,251,996 $ 792,885,482 $ 3,929,584,531
=======================================================
** The cost and unrealized appreciation (depreciation) of
investments, with respect to BlackRock Large Cap Core Fund,
as of April 30, 2007, as computed for federal income tax
purposes, was as follows:
Aggregate cost ............................................ $ 8,195,721
===============
Gross unrealized appreciation ............................. $ 9,331,367
===============
Gross unrealized depreciation ............................. --
===============
Net unrealized appreciation ............................... $ 9,331,367
===============
+ Authorized shares -- Institutional ........................ 400,000,000 100,000,000 100,000,000
=======================================================
++ Authorized shares -- Service .............................. -- 50,000,000 50,000,000
=======================================================
+++ Authorized shares -- Investor A ........................... 300,000,000 100,000,000 100,000,000
=======================================================
++++ Authorized shares -- Investor B ........................... 200,000,000 200,000,000 200,000,000
=======================================================
+++++ Authorized shares -- Investor C ........................... 400,000,000 100,000,000 100,000,000
=======================================================
++++++ Authorized shares -- Class R .............................. 200,000,000 200,000,000 200,000,000
=======================================================
@ Investments in companies considered to be an affiliate of BlackRock Large
Cap Core Fund, for purposes of Section 2(a)(3) of the Investment Company
Act of 1940, were as follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Master S&P 500 Index Series -- --
--------------------------------------------------------------------------
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 15
Statements of Operations BlackRock Large Cap Series Funds, Inc.
BlackRock BlackRock BlackRock
Large Large Large
Cap Core Cap Growth Cap Value
For the Six Months Ended April 30, 2007 (Unaudited) Fund Fund Fund
=============================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income allocated from the Portfolios:
Dividends ......................................... $ 24,176,383 $ 3,738,515 $ 33,231,058
Securities lending -- net ......................... 410,784 61,261 297,296
Interest from affiliates .......................... 40,864 60,194 262,002
Expenses .......................................... (9,498,627) (2,367,858) (10,678,257)
-------------------------------------------------------
Total income .......................................... 15,129,404 1,492,112 23,112,099
-------------------------------------------------------
=============================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------
Service and distribution fees -- Investor C ........... 6,266,960 1,022,667 4,149,297
Administration fees ................................... 4,873,560 1,072,038 5,236,537
Service and distribution fees -- Investor B ........... 2,085,668 542,546 1,547,844
Service fees -- Investor A ............................ 1,440,329 302,617 2,261,118
Transfer agent fees -- Investor C ..................... 759,031 198,990 621,176
Transfer agent fees -- Investor A ..................... 606,485 197,761 544,814
Transfer agent fees -- Institutional .................. 464,542 143,170 636,732
Service and distribution fees -- Class R .............. 295,940 154,359 352,879
Transfer agent fees -- Investor B ..................... 263,512 139,890 320,174
Printing and shareholder reports ...................... 216,402 37,759 127,554
Registration fees ..................................... 133,525 42,779 83,436
Transfer agent fees -- Class R ........................ 69,679 4,333 97,403
Transfer agent fees -- Service ........................ -- 67,191 32,763
Professional fees ..................................... 42,148 12,538 18,033
Service fees -- Service ............................... -- 6,305 31,685
Custodian fees ........................................ 1,814 1,167 4,538
Accounting services ................................... 81 -- --
Other ................................................. 15,928 10,615 9,265
-------------------------------------------------------
Total expenses ........................................ 17,535,604 3,956,725 16,075,248
-------------------------------------------------------
Investment income (loss) -- net ....................... (2,406,200) (2,464,613) 7,036,851
-------------------------------------------------------
=============================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
- -----------------------------------------------------------------------------------------------------------------------------
Realized gain allocated from the Portfolios -- net .... 192,078,371 24,600,282 104,293,559
Change in unrealized appreciation on:
Allocations from the Portfolios ................... 157,718,351 63,205,986 309,761,905
Allocations from the Series ....................... 1,388,545 -- --
-------------------------------------------------------
Total change in unrealized appreciation -- net ........ 159,106,896 63,205,986 309,761,905
-------------------------------------------------------
Total realized and unrealized gain -- net ............. 351,185,267 87,806,268 414,055,464
-------------------------------------------------------
Net Increase in Net Assets Resulting from Operations .. $ 348,779,067 $ 85,341,655 $ 421,092,315
=======================================================
See Notes to Financial Statements.
16 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Statements of Changes in Net Assets BlackRock Large Cap Core Fund
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
=========================================================================================================================
Operations
- -------------------------------------------------------------------------------------------------------------------------
Investment loss -- net ................................................ $ (2,406,200) $ (11,265,929)
Realized gain -- net .................................................. 192,078,371 179,091,130
Change in unrealized appreciation -- net .............................. 159,106,896 276,027,847
-----------------------------------
Net increase in net assets resulting from operations .................. 348,779,067 443,853,048
-----------------------------------
=========================================================================================================================
Distributions to Shareholders
- -------------------------------------------------------------------------------------------------------------------------
Realized gain -- net:
Institutional ..................................................... (18,426,334) (57,857,569)
Investor A ........................................................ (22,174,282) (62,093,983)
Investor B ........................................................ (8,772,225) (35,312,162)
Investor C ........................................................ (25,429,371) (70,619,981)
Class R ........................................................... (2,318,352) (5,587,829)
-----------------------------------
Net decrease in net assets resulting from distributions to shareholders (77,120,564) (231,471,524)
-----------------------------------
=========================================================================================================================
Capital Share Transactions
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions .... 241,208,581 1,029,911,537
-----------------------------------
=========================================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Total increase in net assets .......................................... 512,867,084 1,242,293,061
Beginning of period ................................................... 3,703,037,523 2,460,744,462
-----------------------------------
End of period* ........................................................ $ 4,215,904,607 $ 3,703,037,523
===================================
* Accumulated investment loss -- net ................................ $ (2,451,743) $ (45,543)
===================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 17
Statements of Changes In Net Assets BlackRock Large Cap Growth Fund
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
=========================================================================================================================
Operations
- -------------------------------------------------------------------------------------------------------------------------
Investment loss -- net ................................................ $ (2,464,613) $ (4,681,453)
Realized gain -- net .................................................. 24,600,282 24,740,475
Change in unrealized appreciation -- net .............................. 63,205,986 44,967,618
-----------------------------------
Net increase in net assets resulting from operations .................. 85,341,655 65,026,640
-----------------------------------
=========================================================================================================================
Distributions to Shareholders
- -------------------------------------------------------------------------------------------------------------------------
Realized gain -- net:
Institutional ..................................................... (785,321) --
Service ........................................................... (17,414) --
Investor A ........................................................ (858,312) --
Investor B ........................................................ (412,496) --
Investor C ........................................................ (747,786) --
Class R ........................................................... (211,333) --
-----------------------------------
Net decrease in net assets resulting from distributions to shareholders (3,032,662) --
-----------------------------------
=========================================================================================================================
Capital Share Transactions
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions .... 91,542,533 230,644,704
-----------------------------------
=========================================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Total increase in net assets .......................................... 173,851,526 295,671,344
Beginning of period ................................................... 784,534,737 488,863,393
-----------------------------------
End of period* ........................................................ $ 958,386,263 $ 784,534,737
===================================
* Accumulated investment loss -- net ................................ $ (2,464,613) --
===================================
See Notes to Financial Statements.
18 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Statements of Changes in Net Assets BlackRock Large Cap Value Fund
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
=========================================================================================================================
Operations
- -------------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net ....................................... $ 7,036,851 $ (3,327,782)
Realized gain -- net .................................................. 104,293,559 116,307,468
Change in unrealized appreciation -- net .............................. 309,761,905 272,889,139
-----------------------------------
Net increase in net assets resulting from operations .................. 421,092,315 385,868,825
-----------------------------------
=========================================================================================================================
Dividends & Distributions to Shareholders
- -------------------------------------------------------------------------------------------------------------------------
Investment income -- net:
Institutional ..................................................... (1,176,425) --
Service ........................................................... (12,439) --
Investor A ........................................................ (1,464,394) --
Class R ........................................................... (46,949) --
Realized gain -- net:
Institutional ..................................................... (15,987,640) (37,978,492)
Service ........................................................... (384,970) (336)
Investor A ........................................................ (26,904,386) (41,836,619)
Investor B ........................................................ (5,064,024) (15,641,418)
Investor C ........................................................ (12,884,055) (31,948,254)
Class R ........................................................... (2,048,435) (4,331,376)
-----------------------------------
Net decrease in net assets resulting from dividends and distributions
to shareholders ..................................................... (65,973,717) (131,736,495)
-----------------------------------
=========================================================================================================================
Capital Share Transactions
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions .... 596,698,107 2,061,799,094
-----------------------------------
=========================================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Total increase in net assets .......................................... 951,816,705 2,315,931,424
Beginning of period ................................................... 3,850,496,106 1,534,564,682
-----------------------------------
End of period* ........................................................ $ 4,802,312,811 $ 3,850,496,106
===================================
* Undistributed investment income -- net ............................ $ 4,336,644 --
===================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 19
Financial Highlights BlackRock Large Cap Core Fund
Institutional
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 14.20 $ 13.20 $ 11.28 $ 10.33 $ 8.31 $ 9.10
-----------------------------------------------------------------------
Investment income -- net*** ................ .03 .03 .04 .02 .01 .03
Realized and unrealized gain (loss) -- net . 1.29 2.10 1.97 .93 2.01 (.82)
-----------------------------------------------------------------------
Total from investment operations ........... 1.32 2.13 2.01 .95 2.02 (.79)
-----------------------------------------------------------------------
Less distributions from realized gain -- net (.28) (1.13) (.09) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 15.24 $ 14.20 $ 13.20 $ 11.28 $ 10.33 $ 8.31
=======================================================================
==================================================================================================================================
Total Investment Return****
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 9.45%+ 16.91% 17.94% 9.20% 24.31% (8.68%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. .86%* .89% .91% .93% .98% 1.04%
=======================================================================
Expenses ................................... .86%* .89% .91% .93% .98% 1.04%
=======================================================================
Investment income -- net ................... .41%* .19% .31% .17% .06% .33%
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $1,032,924 $ 922,301 $ 601,378 $415,647 $307,277 $214,953
=======================================================================
Portfolio turnover of the Fund ............. 0% 0% -- -- -- --
=======================================================================
Portfolio turnover of the Portfolio ........ 36.05% 87.67% 93.95% 135.48% 138.73% 150.18%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income.
*** Based on average shares outstanding.
**** Total investment returns exclude the effect of any sales charges.
+ Aggregate total investment return.
See Notes to Financial Statements.
20 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Financial Highlights (continued) BlackRock Large Cap Growth Fund
Institutional
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.63 $ 9.36 $ 8.36 $ 7.97 $ 6.44 $ 7.50
-----------------------------------------------------------------------
Investment loss -- net*** .................. --+ (.02) (.02) (.04) (.04) (.05)
Realized and unrealized gain (loss) -- net . 1.12 1.29 1.02 .43 1.57 (1.01)
-----------------------------------------------------------------------
Total from investment operations ........... 1.12 1.27 1.00 .39 1.53 (1.06)
-----------------------------------------------------------------------
Less distributions from realized gain -- net (.04) -- -- -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 11.71 $ 10.63 $ 9.36 $ 8.36 $ 7.97 $ 6.44
=======================================================================
==================================================================================================================================
Total Investment Return****
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 10.55%@ 13.57% 11.96% 4.89% 23.76% (14.13%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. .95%* 1.04% 1.08% 1.13% 1.22% 1.29%
=======================================================================
Expenses ................................... .95%* 1.04% 1.08% 1.13% 1.22% 1.31%
=======================================================================
Investment loss -- net ..................... (.05%)* (.22%) (.20%) (.45%) (.57%) (.63%)
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $ 273,425 $ 215,697 $ 128,667 $ 79,869 $ 53,163 $ 31,989
=======================================================================
Portfolio turnover of the Portfolio ........ 39.26% 116.77% 131.79% 164.94% 178.11% 177.46%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment loss.
*** Based on average shares outstanding.
**** Total investment returns exclude the effect of any sales charges.
+ Amount is less than $(.01) per share.
@ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 21
Financial Highlights (continued) BlackRock Large Cap Value Fund
Institutional
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 18.96 $ 17.12 $ 14.71 $ 12.89 $ 10.21 $ 10.67
-----------------------------------------------------------------------
Investment income -- net*** ................ .07 .06 .06 .07 .06 .05
Realized and unrealized gain (loss) -- net . 1.90 2.93 3.01 1.75 2.62 (.51)
-----------------------------------------------------------------------
Total from investment operations ........... 1.97 2.99 3.07 1.82 2.68 (.46)
-----------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ............... (.02) -- -- -- -- --
Realized gain -- net ................... (.30) (1.15) (.66) -- -- --
-----------------------------------------------------------------------
Total dividends and distributions .......... (.32) (1.15) (.66) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 20.61 $ 18.96 $ 17.12 $ 14.71 $ 12.89 $ 10.21
=======================================================================
==================================================================================================================================
Total Investment Return****
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 10.52%+ 18.06% 21.49% 14.12% 26.25% (4.31%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. .89%* 94% .98% 1.01% 1.03% 1.03%
=======================================================================
Expenses ................................... .89%* .94% .98% 1.01% 1.03% 1.03%
=======================================================================
Investment income -- net ................... .72%* .32% .35% .49% .51% .76%
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $1,290,333 $ 990,081 $ 446,172 $194,625 $ 92,736 $ 66,754
=======================================================================
Portfolio turnover of the Portfolio ........ 27.50% 70.86% 94.95% 127.59% 157.04% 136.92%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income.
*** Based on average shares outstanding.
**** Total investment returns exclude the effect of any sales charges.
+ Aggregate total investment return.
See Notes to Financial Statements.
22 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Financial Highlights (continued)
Service
-----------------------------------------------------------
BlackRock Large Cap BlackRock Large Cap
Growth Fund Value Fund
---------------------------- ----------------------------
For the For the
Six Months For the Six Months For the
Ended Period Ended Period
April 30, Oct. 2, 2006+ April 30, Oct. 2, 2006+
The following per share data and ratios have been derived 2007 to Oct. 31, 2007 to Oct. 31,
from information provided in the financial statements. (Unaudited) 2006 (Unaudited) 2006
=================================================================================================================================
Per Share Operating Performance
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ... $ 10.62 $ 10.18 $ 18.95 $ 18.62
-----------------------------------------------------------
Investment income (loss) -- net*** ..... (.02) (.01) 03 (.01)
Realized and unrealized gain -- net .... 1.13 .45 1.91 .65
-----------------------------------------------------------
Total from investment operations ....... 1.11 .44 1.94 .64
-----------------------------------------------------------
Less dividends and distributions:
Investment income -- net ............ -- -- (.01) --
Realized gain -- net ................ (.04) -- (.30) (.31)
-----------------------------------------------------------
Total dividends and distributions ...... (.04) -- (.31) (.31)
-----------------------------------------------------------
Net asset value, end of period ......... $ 11.69 $ 10.62 $ 20.58 $ 18.95
===========================================================
=================================================================================================================================
Total Investment Return
- ---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ..... 10.47%@ 4.32%@ 10.34%@ 3.49%@
===========================================================
=================================================================================================================================
Ratios to Average Net Assets**
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ......... 1.25%* 1.36%* 1.28%* 1.35%*
===========================================================
Expenses ............................... 1.25%* 1.36%* 1.28%* 1.35%*
===========================================================
Investment income (loss) -- net ........ (.35%)* (1.14%)* .35%* (1.14%)*
===========================================================
=================================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 5,949 $ 5,014 $ 28,027 $ 24,828
===========================================================
Portfolio turnover of the Portfolio .... 39.26% 116.77% 27.50% 70.86%
===========================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income (loss).
*** Based on average shares outstanding.
+ Commencement of operations.
@ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 23
Financial Highlights (continued) BlackRock Large Cap Core Fund
Investor A
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 13.97 $ 13.01 $ 11.15 $ 10.23 $ 8.25 $ 9.06
-----------------------------------------------------------------------
Investment income (loss) -- net*** ......... .01 (.01) .01 (.01) (.02) .01
Realized and unrealized gain (loss) -- net . 1.27 2.08 1.94 .93 2.00 (.82)
-----------------------------------------------------------------------
Total from investment operations ........... 1.28 2.07 1.95 .92 1.98 (.81)
-----------------------------------------------------------------------
Less distributions from realized gain -- net (.28) (1.11) (.09) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 14.97 $ 13.97 $ 13.01 $ 11.15 $ 10.23 $ 8.25
=======================================================================
==================================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 9.32%@ 16.61% 17.61% 8.99% 24.00% (8.94%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.11%* 1.14% 1.16% 1.18% 1.23% 1.28%
=======================================================================
Expenses ................................... 1.11%* 1.14% 1.16% 1.18% 1.23% 1.28%
=======================================================================
Investment income (loss) -- net ............ .14%* (.06%) .05% (.09%) (.21%) .10%
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $1,287,005 $1,028,585 $629,682 $392,896 $293,144 $136,552
=======================================================================
Portfolio turnover of the Fund ............. 0% 0% -- -- -- --
=======================================================================
Portfolio turnover of the Portfolio ........ 36.05% 87.67% 93.95% 135.48% 138.73% 150.18%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income (loss).
*** Based on average shares outstanding.
+ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
See Notes to Financial Statements.
24 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Financial Highlights (continued) BlackRock Large Cap Growth Fund
Investor A
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.44 $ 9.22 $ 8.26 $ 7.89 $ 6.39 $ 7.47
-----------------------------------------------------------------------
Investment loss -- net*** .................. (.02) (.06) (.04) (.06) (.05) (.06)
Realized and unrealized gain (loss) -- net . 1.11 1.28 1.00 .43 1.55 (1.02)
-----------------------------------------------------------------------
Total from investment operations ........... 1.09 1.22 .96 .37 1.50 (1.08)
-----------------------------------------------------------------------
Less distributions from realized gain -- net (.04) -- -- -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 11.49 $ 10.44 $ 9.22 $ 8.26 $ 7.89 $ 6.39
=======================================================================
==================================================================================================================================
Total Investment Return@
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 10.46%+ 13.23% 11.62% 4.69% 23.47% (14.46%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.24%* 1.29% 1.33% 1.38% 1.46% 1.54%
=======================================================================
Expenses ................................... 1.24%* 1.29% 1.33% 1.38% 1.46% 1.56%
=======================================================================
Investment loss -- net ..................... (.34%)* (.48%) (.46%) (.69%) (.81%) (.88%)
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $ 264,780 $ 218,017 $ 112,887 $ 64,539 $ 27,410 $ 15,874
=======================================================================
Portfolio turnover of the Portfolio ........ 39.26% 116.77% 131.79% 164.94% 178.11% 177.46%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income (loss).
*** Based on average shares outstanding.
+ Aggregate total investment return.
@ Total investment returns exclude the effects of sales charges.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 25
Financial Highlights (continued) BlackRock Large Cap Value Fund
Investor A
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 18.64 $ 16.86 $ 14.53 $ 12.77 $ 10.14 $ 10.62
-----------------------------------------------------------------------
Investment income -- net*** ................ .05 .01 .02 .03 .03 .04
Realized and unrealized gain (loss) -- net . 1.88 2.89 2.97 1.73 2.60 (.52)
-----------------------------------------------------------------------
Total from investment operations ........... 1.93 2.90 2.99 1.76 2.63 (.48)
-----------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ............... (.02) -- -- -- -- --
Realized gain -- net ................... (.30) (1.12) (.66) -- -- --
-----------------------------------------------------------------------
Total dividends and distributions .......... (.32) (1.12) (.66) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 20.25 $ 18.64 $ 16.86 $ 14.53 $ 12.77 $ 10.14
=======================================================================
==================================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 10.45@ 17.78% 21.20% 13.78% 25.94% (4.52%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.08%* 1.19% 1.23% 1.26% 1.28% 1.28%
=======================================================================
Expenses ................................... 1.08%* 1.19% 1.23% 1.26% 1.28% 1.28%
=======================================================================
Investment income -- net ................... .53%* .05% .10% .21% .24% .49%
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $2,076,841 $1,652,442 $371,216 $161,867 $ 90,358 $ 46,020
=======================================================================
Portfolio turnover of the Portfolio ........ 27.50% 70.86% 94.95% 127.59% 157.04% 136.92%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income.
*** Based on average shares outstanding.
+ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
See Notes to Financial Statements.
26 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Financial Highlights (continued) BlackRock Large Cap Core Fund
Investor B
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 13.30 $ 12.43 $ 10.74 $ 9.93 $ 8.07 $ 8.93
-----------------------------------------------------------------------
Investment loss -- net*** .................. (.04) (.11) (.08) (.09) (.08) (.06)
Realized and unrealized gain (loss) -- net . 1.20 1.99 1.86 .90 1.94 (.80)
-----------------------------------------------------------------------
Total from investment operations ........... 1.16 1.88 1.78 .81 1.86 (.86)
-----------------------------------------------------------------------
Less distributions from realized gain -- net (.28) (1.01) (.09) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 14.18 $ 13.30 $ 12.43 $ 10.74 $ 9.93 $ 8.07
=======================================================================
==================================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 8.88%@ 15.72% 16.69% 8.16% 23.05% (9.63%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.89%* 1.91% 1.93% 1.95% 2.00% 2.07%
=======================================================================
Expenses ................................... 1.89%* 1.91% 1.93% 1.95% 2.00% 2.07%
=======================================================================
Investment loss -- net ..................... (.59%)* (.83%) (.66%) (.86%) (.96%) (.64%)
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $ 394,134 $ 467,145 $ 446,242 $412,162 $389,598 $329,121
=======================================================================
Portfolio turnover of the Fund ............. 0% 0% -- -- -- --
=======================================================================
Portfolio turnover of the Portfolio ........ 36.05% 87.67% 93.95% 135.48% 138.73% 150.18%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment loss.
*** Based on average shares outstanding.
+ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 27
Financial Highlights (continued) BlackRock Large Cap Growth Fund
Investor B
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 9.91 $ 8.82 $ 7.96 $ 7.66 $ 6.25 $ 7.37
-----------------------------------------------------------------------
Investment loss -- net*** .................. (.06) (.12) (.10) (.12) (.10) (.12)
Realized and unrealized gain (loss) -- net . 1.04 1.21 .96 .42 1.51 (1.00)
-----------------------------------------------------------------------
Total from investment operations ........... .98 1.09 .86 .30 1.41 (1.12)
-----------------------------------------------------------------------
Less distributions from realized gain -- net (.04) -- -- -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 10.85 $ 9.91 $ 8.82 $ 7.96 $ 7.66 $ 6.25
=======================================================================
==================================================================================================================================
Total Investment Return@
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 9.90%+ 12.36% 10.80% 3.92% 22.56% (15.20%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 2.09%* 2.07% 2.11% 2.16% 2.27% 2.32%
=======================================================================
Expenses ................................... 2.09%* 2.07% 2.11% 2.16% 2.27% 2.34%
=======================================================================
Investment loss -- net ..................... (1.18%)* (1.25%) (1.15%) (1.48%) (1.61%) (1.66%)
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $ 111,777 $ 107,113 $ 95,593 $ 93,382 $100,683 $ 83,726
=======================================================================
Portfolio turnover of the Portfolio ........ 39.26% 116.77% 131.79% 164.94% 178.11% 177.46%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment loss.
*** Based on average shares outstanding.
+ Aggregate total investment return.
@ Total investment returns exclude the effects of sales charges.
See Notes to Financial Statements.
28 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Financial Highlights (continued) BlackRock Large Cap Value Fund
Investor B
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 17.76 $ 16.12 $ 14.02 $ 12.41 $ 9.93 $ 10.48
-----------------------------------------------------------------------
Investment loss -- net*** .................. (.03) (.11) (.09) (.07) (.05) (.03)
Realized and unrealized gain (loss) -- net . 1.78 2.74 2.85 1.68 2.53 (.52)
-----------------------------------------------------------------------
Total from investment operations ........... 1.75 2.63 2.76 1.61 2.48 (.55)
-----------------------------------------------------------------------
Less distributions from realized gain -- net (.30) (.99) (.66) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 19.21 $ 17.76 $ 16.12 $ 14.02 $ 12.41 $ 9.93
=======================================================================
==================================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 9.96%@ 16.81% 20.29% 12.97% 24.97% (5.25%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.99%* 1.96% 2.00% 2.02% 2.05% 2.05%
=======================================================================
Expenses ................................... 1.99%* 1.96% 2.00% 2.02% 2.05% 2.05%
=======================================================================
Investment loss -- net ..................... (.34%)* (.67%) (.60%) (.53%) (.50%) (.28%)
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $ 314,269 $ 309,795 $ 261,345 $222,055 $202,190 $174,623
=======================================================================
Portfolio turnover of the Portfolio ........ 27.50% 70.86% 94.95% 127.59% 157.04% 136.92%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income (loss).
*** Based on average shares outstanding.
+ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 29
Financial Highlights (continued) BlackRock Large Cap Core Fund
Investor C
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 13.26 $ 12.43 $ 10.73 $ 9.93 $ 8.07 $ 8.93
-----------------------------------------------------------------------
Investment loss -- net*** .................. (.04) (.11) (.09) (.09) (.08) (.06)
Realized and unrealized gain (loss) -- net . 1.21 1.97 1.88 .89 1.94 (.80)
-----------------------------------------------------------------------
Total from investment operations ........... 1.17 1.86 1.79 .80 1.86 (.86)
-----------------------------------------------------------------------
Less distributions from realized gain -- net (.28) (1.03) (.09) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 14.15 $ 13.26 $ 12.43 $ 10.73 $ 9.93 $ 8.07
=======================================================================
==================================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 8.98%@ 15.64% 16.80% 8.06% 23.05% (9.63%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.88%* 1.91% 1.94% 1.96% 2.01% 2.07%
=======================================================================
Expenses ................................... 1.88%* 1.91% 1.94% 1.96% 2.01% 2.07%
=======================================================================
Investment loss -- net ..................... (.62%)* (.84%) (.73%) (.86%) (.97%) (.66%)
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $1,370,659 $1,176,244 $737,063 $430,689 $250,491 $178,459
=======================================================================
Portfolio turnover of the Fund ............. 0% 0% -- -- -- --
=======================================================================
Portfolio turnover of the Portfolio ........ 36.05% 87.67% 93.95% 135.48% 138.73% 150.18%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment loss.
*** Based on average shares outstanding.
+ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
See Notes to Financial Statements.
30 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Financial Highlights (continued) BlackRock Large Cap Growth Fund
Investor C
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 9.90 $ 8.81 $ 7.95 $ 7.65 $ 6.25 $ 7.36
-----------------------------------------------------------------------
Investment loss -- net*** .................. (.06) (.12) (.10) (.12) (.10) (.12)
Realized and unrealized gain (loss) -- net . 1.04 1.21 .96 .42 1.50 (.99)
-----------------------------------------------------------------------
Total from investment operations ........... .98 1.09 .86 .30 1.40 (1.11)
-----------------------------------------------------------------------
Less distributions from realized gain -- net (.04) -- -- -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 10.84 $ 9.90 $ 8.81 $ 7.95 $ 7.65 $ 6.25
=======================================================================
==================================================================================================================================
Total Investment Return@
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 9.91%+ 12.37% 10.82% 3.92% 22.40% (15.08%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 2.02%* 2.06% 2.11% 2.16% 2.27% 2.33%
=======================================================================
Expenses ................................... 2.02%* 2.06% 2.11% 2.16% 2.27% 2.35%
=======================================================================
Investment loss -- net ..................... (1.12%)* (1.25%) (1.19%) (1.48%) (1.62%) (1.67%)
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $ 229,969 $ 185,337 $ 125,150 $ 94,969 $ 68,337 $ 52,872
=======================================================================
Portfolio turnover of the Portfolio ........ 39.26% 116.77% 131.79% 164.94% 178.11% 177.46%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment loss.
*** Based on average shares outstanding.
+ Aggregate total investment return.
@ Total investment returns exclude the effects of sales charges.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 31
Financial Highlights (continued) BlackRock Large Cap Value Fund
Investor C
------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following per share data and ratios have been derived 2007 --------------------------------------------------------
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 17.72 $ 16.11 $ 14.01 $ 12.41 $ 9.93 $ 10.48
-----------------------------------------------------------------------
Investment loss -- net*** .................. (.03) (.12) (.10) (.07) (.05) (.03)
Realized and unrealized gain (loss) -- net . 1.77 2.76 2.86 1.67 2.53 (.52)
-----------------------------------------------------------------------
Total from investment operations ........... 1.74 2.64 2.76 1.60 2.48 (.55)
-----------------------------------------------------------------------
Less distributions from realized gain -- net (.30) (1.03) (.66) -- -- --
-----------------------------------------------------------------------
Net asset value, end of period ............. $ 19.16 $ 17.72 $ 16.11 $ 14.01 $ 12.41 $ 9.93
=======================================================================
==================================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 9.93%@ 16.89% 20.31% 12.89% 24.97% (5.25%)
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets**
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.93%* 1.96% 2.00% 2.03% 2.06% 2.05%
=======================================================================
Expenses ................................... 1.93%* 1.96% 2.00% 2.03% 2.06% 2.05%
=======================================================================
Investment loss -- net ..................... (.32%)* (.69%) (.65%) (.54%) (.51%) (.28%)
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $ 925,874 $ 754,266 $ 409,937 $219,806 $129,456 $ 95,895
=======================================================================
Portfolio turnover of the Portfolio ........ 27.50% 70.86% 94.95% 127.59% 157.04% 136.92%
=======================================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income (loss).
*** Based on average shares outstanding.
+ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
See Notes to Financial Statements.
32 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Financial Highlights (continued) BlackRock Large Cap Core Fund
Class R
----------------------------------------------------------------
For the
Six Months For the Period
Ended For the Year Ended January 3,
April 30, October 31, 2003@ to
The following per share data and ratios have been derived 2007 ---------------------------------- October 31,
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003
===============================================================================================================================
Per Share Operating Performance
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 13.56 $ 12.68 $ 10.89 $ 10.02 $ 8.12
---------------------------------------------------------------
Investment loss -- net*** .................. (.01) (.04) (.03) (.03) (.05)
Realized and unrealized gain -- net ........ 1.24 2.02 1.91 .90 1.95
---------------------------------------------------------------
Total from investment operations ........... 1.23 1.98 1.88 .87 1.90
---------------------------------------------------------------
Less distributions from realized gain -- net (.28) (1.10) (.09) -- --
---------------------------------------------------------------
Net asset value, end of period ............. $ 14.51 $ 13.56 $ 12.68 $ 10.89 $ 10.02
===============================================================
===============================================================================================================================
Total Investment Return
- -------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 9.23%+ 16.29% 17.39% 8.68% 23.40%+
===============================================================
===============================================================================================================================
Ratios to Average Net Assets**
- -------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.37%* 1.39% 1.42% 1.43% 1.48%*
===============================================================
Expenses ................................... 1.37%* 1.39% 1.42% 1.43% 1.48%*
===============================================================
Investment loss -- net ..................... (.12%)* (.32%) (.28%) (.32%) (.44%)*
===============================================================
===============================================================================================================================
Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $131,183 $108,762 $ 46,379 $ 15,160 $ 119
===============================================================
Portfolio turnover of the Fund ............. 0% 0% -- -- --
===============================================================
Portfolio turnover of the Portfolio ........ 36.05% 87.67% 93.95% 135.48% 138.73%
===============================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment loss.
*** Based on average shares outstanding.
+ Aggregate total investment return.
@ Commencement of operations.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 33
Financial Highlights (continued) BlackRock Large Cap Growth Fund
Class R
----------------------------------------------------------------
For the
Six Months For the Period
Ended For the Year Ended January 3,
April 30, October 31, 2003@ to
The following per share data and ratios have been derived 2007 ---------------------------------- October 31,
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003
===============================================================================================================================
Per Share Operating Performance
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.17 $ 9.00 $ 8.08 $ 7.74 $ 6.16
---------------------------------------------------------------
Investment loss -- net*** .................. (.03) (.07) (.07) (.06) (.05)
Realized and unrealized gain -- net ........ 1.07 1.24 .99 .40 1.63
---------------------------------------------------------------
Total from investment operations ........... 1.04 1.17 .92 .34 1.58
---------------------------------------------------------------
Less distributions from realized gain -- net (.04) -- -- -- --
---------------------------------------------------------------
Net asset value, end of period ............. $ 11.17 $ 10.17 $ 9.00 $ 8.08 $ 7.74
===============================================================
===============================================================================================================================
Total Investment Return
- -------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 10.24%+ 13.00% 11.39% 4.39% 25.65%+
===============================================================
===============================================================================================================================
Ratios to Average Net Assets**
- -------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.54%* 1.54% 1.58% 1.61% 1.72%*
===============================================================
Expenses ................................... 1.54%* 1.54% 1.58% 1.61% 1.72%*
===============================================================
Investment loss -- net ..................... (.65%)* (.73%) (.75%) (.95%) (.94%)*
===============================================================
===============================================================================================================================
Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $ 72,485 $ 53,356 $ 26,566 $ 11,304 $ 290
===============================================================
Portfolio turnover of the Portfolio ........ 39.26% 116.77% 131.79% 164.94% 178.11%
===============================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment loss.
*** Based on average shares outstanding.
+ Aggregate total investment return.
@ Commencement of operations.
See Notes to Financial Statements.
34 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Financial Highlights (concluded) BlackRock Large Cap Value Fund
Class R
----------------------------------------------------------------
For the
Six Months For the Period
Ended For the Year Ended January 3,
April 30, October 31, 2003@@ to
The following per share data and ratios have been derived 2007 ---------------------------------- October 31,
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003
===============================================================================================================================
Per Share Operating Performance
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 18.13 $ 16.46 $ 14.23 $ 12.54 $ 10.12
---------------------------------------------------------------
Investment income (loss) -- net*** ......... .02 (.03) (.03) --+ .01
Realized and unrealized gain -- net ........ 1.83 2.80 2.92 1.69 2.41
---------------------------------------------------------------
Total from investment operations ........... 1.85 2.77 2.89 1.69 2.42
---------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ................ (.01) -- -- -- --
Realized gain -- net .................... (.30) (1.10) (.66) -- --
---------------------------------------------------------------
Total dividends and distributions .......... (.31) (1.10) (.66) -- --
---------------------------------------------------------------
Net asset value, end of period ............. $ 19.67 $ 18.13 $ 16.46 $ 14.23 $ 12.54
===============================================================
===============================================================================================================================
Total Investment Return
- -------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 10.30%@ 17.41% 20.93% 13.48% 23.91%@
===============================================================
===============================================================================================================================
Ratios to Average Net Assets**
- -------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.41%* 1.45% 1.48% 1.53% 1.53%*
===============================================================
Expenses ................................... 1.41%* 1.45% 1.48% 1.53% 1.53%*
===============================================================
Investment income (loss) -- net ............ .17%* (.19%) (.19%) (.03%) .01%*
===============================================================
===============================================================================================================================
Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $166,969 $119,085 $ 45,894 $ 11,362 $ 12
===============================================================
Portfolio turnover of the Portfolio ........ 27.50% 70.86% 94.95% 127.59% 157.04%
===============================================================
* Annualized.
** Includes the Fund's share of the Portfolio's allocated expenses and/or
investment income (loss).
*** Based on average shares outstanding.
+ Amount is less than $(.01) per share.
@ Aggregate total investment return.
@@ Commencement of operations.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 35
Notes to Financial Statements (Unaudited)
BlackRock Large Cap Series Funds, Inc.
1. Significant Accounting Policies:
BlackRock Large Cap Core Fund, BlackRock Large Cap Growth Fund and BlackRock
Large Cap Value Fund (the "Funds" or individually as the "Fund"), constituting
BlackRock Large Cap Series Funds, Inc., are registered under the Investment
Company Act of 1940, as amended, as diversified, open-end investment companies.
Each Fund seeks to achieve its investment objective by investing all, or a
portion of, their assets in Master Large Cap Core Portfolio, Master Large Cap
Growth Portfolio and Master Large Cap Value Portfolio (the "Portfolios" or
individually as the "Portfolio"), respectively, constituting Master Large Cap
Series Trust (the "Trust"), which have the same investment objective and
strategies as the corresponding Funds. The value of the Funds' investment in the
Portfolios reflects the Funds' proportionate interest in the net assets of the
Portfolios. The performance of the Funds is directly affected by the performance
of the Portfolios. The financial statements of the Portfolios, including the
Schedules of Investments, are included elsewhere in this report and should be
read in conjunction with the Funds' financial statements. The Funds' 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 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. On April 30, 2007, the
percentage of Master S&P 500 Index Series (the "Series") owned by BlackRock
Large Cap Core Fund was 0.4% and the percentages of Master Large Cap Core
Portfolio, Master Large Cap Growth Portfolio and Master Large Cap Value
Portfolio owned by BlackRock Large Cap Core Fund, BlackRock Large Cap Growth
Fund and BlackRock Large Cap Value Fund, were 96.0%, 95.8% and 98.4%,
respectively. The Funds offer multiple classes of shares. Institutional and
Service 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 Service, 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 Funds.
(a) Valuation of investments -- Each Fund records its investment at fair value.
Valuation of securities held by the Portfolio is discussed in Note 1(a) of the
Portfolios' Notes to Financial Statements, which are included elsewhere in this
report.
(b) Investment income and expenses -- Each Fund records daily its proportionate
share of the Portfolio's income, expenses and realized and unrealized gains and
losses. In addition, each Fund accrues its own expenses.
(c) Income taxes -- It is each 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 shareholders. Therefore,
no federal income tax provision is required. Under the applicable foreign tax
law, withholding taxes may be imposed on interest, dividends and capital gains
at various rates.
(d) Prepaid registration fees -- Prepaid registration fees are charged to
expense as the related shares are issued.
(e) Dividends and distributions -- Dividends and distributions paid by each Fund
are recorded on the ex-dividend dates.
(f) Investment transactions -- Investment transactions in each Portfolio are
accounted for on a trade date basis.
(g) Recent accounting pronouncements -- In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109."
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 mutual funds, before being measured
and recognized in the financial statements. Adoption of FIN 48 is required for
the last net asset value calculation in the first required financial statement
reporting period for fiscal years beginning after December 15, 2006. The impact
on each Fund's financial statements, if any, is currently being assessed.
36 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Notes to Financial Statements (continued)
BlackRock Large Cap Series Funds, Inc.
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. At this time, management is evaluating the implications of FAS 157
and its impact on each Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, FASB issued "Statement of Financial Accounting
Standards No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which 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 each Fund's financial statements,
if any, has not been determined.
2. Transactions with Affiliates:
Each Fund has entered into an Administration Agreement with BlackRock Advisors,
LLC ("BlackRock"), an indirect, wholly owned subsidiary of BlackRock, Inc. Each
Fund pays a monthly fee at an annual rate of .25% of the Fund's average daily
net assets for the performance of administrative services (other than investment
advice and related portfolio activities) necessary for the operation of the
Fund. Prior to September 29, 2006, Fund Asset Management, L.P. acted as each
Fund's administrator and was compensated at the same fee rate. Each 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 and The PNC Financial Services Group, Inc. ("PNC") are the
principal owners of BlackRock, Inc.
Pursuant to the Distribution Plans adopted by the Funds in accordance with Rule
12b-1 under the Investment Company Act of 1940, the Funds pay each Distributor
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 as
follows:
- --------------------------------------------------------------------------------
Service Distribution
Fee Fee
- --------------------------------------------------------------------------------
Service ........................................ .25% --
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 & Co., Inc. and an affiliate of each Distributor,
provide shareholder servicing and distribution services to the Funds. The
ongoing service fee compensates the Distributor and each broker-dealer
(including MLPF&S) for providing shareholder servicing to Service, Investor A,
Investor B, Investor C and Class R shareholders. The ongoing distribution fee
compensates each Distributor and MLPF&S for providing shareholder servicing and
distribution-related services to Investor B, Investor C and Class R
shareholders.
For the six months ended April 30, 2007, FAMD and BDI earned underwriting
discounts and MLPF&S was paid dealer concessions on sales of the Funds'
Institutional and Investor A Shares as follows:
- --------------------------------------------------------------------------------
FAMD MLPF&S BDI
- --------------------------------------------------------------------------------
BlackRock Large Cap Core Fund
Investor A ................. $ 80,136 $1,002,122 $ 916
- --------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund
Investor A ................. $ 9,968 $ 120,135 $ 2,875
- --------------------------------------------------------------------------------
BlackRock Large Cap Value Fund
Investor A ................. $ 32,043 $ 403,011 $ 16,051
- --------------------------------------------------------------------------------
For the six months ended April 30, 2007, the Distributors paid MLPF&S contingent
deferred sales charges relating to transactions in Investor B and Investor C
Shares as follows:
- --------------------------------------------------------------------------------
Investor B Investor C
- --------------------------------------------------------------------------------
BlackRock Large Cap Core Fund ..................... $124,254 $ 76,603
BlackRock Large Cap Growth Fund ................... $ 28,238 $ 9,849
BlackRock Large Cap Value Fund .................... $ 54,806 $ 59,751
- --------------------------------------------------------------------------------
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 37
Notes to Financial Statements (continued)
BlackRock Large Cap Series Funds, Inc.
In addition, the Distributors paid MLPF&S contingent deferred sales charges
relating to transactions subject to front-end sales charge waivers for Investor
A Shares as follows:
- --------------------------------------------------------------------------------
Investor A
- --------------------------------------------------------------------------------
BlackRock Large Cap Core Fund .................................... $4,163
BlackRock Large Cap Growth Fund .................................. $ 176
BlackRock Large Cap Value Fund ................................... $ 900
- --------------------------------------------------------------------------------
Furthermore, the Distributors paid BDI contingent deferred sales charges
relating to transactions in Investor B and Investor C Shares as follows:
- --------------------------------------------------------------------------------
Investor B Investor C
- --------------------------------------------------------------------------------
BlackRock Large Cap Core Fund ....................... $179 $169
BlackRock Large Cap Growth Fund ..................... $907 $115
BlackRock Large Cap Value Fund ...................... $978 $ 24
- --------------------------------------------------------------------------------
The Manager maintains a call center, which is responsible for providing certain
shareholder services to each Fund, such as responding to shareholder inquiries
and processing transactions based upon instructions from shareholders with
respect to the subscription and redemption of Fund shares. During the six months
ended April 30, 2007, the following amounts have been accrued by each Fund to
reimburse the Manager for costs incurred running the call center, which are a
component of the transfer agent fees in the accompanying Statements of
Operations.
- --------------------------------------------------------------------------------
BlackRock Large Cap Core Fund Call Center Fees
- --------------------------------------------------------------------------------
Institutional ................................................ $ 3,633
Investor A ................................................... $ 9,317
Investor B ................................................... $ 6,447
Investor C ................................................... $11,041
Class R ...................................................... $ 778
- --------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund
- --------------------------------------------------------------------------------
Institutional ................................................ $ 1,111
Service ...................................................... $ 386
Investor A ................................................... $ 3,453
Investor B ................................................... $ 2,393
Investor C ................................................... $ 2,211
Class R ...................................................... $ 365
- --------------------------------------------------------------------------------
BlackRock Large Cap Value Fund
- --------------------------------------------------------------------------------
Institutional ................................................ $13,833
Service ...................................................... $ 2,302
Investor A ................................................... $43,102
Investor B ................................................... $10,021
Investor C ................................................... $ 5,777
Class R ...................................................... $ 840
- --------------------------------------------------------------------------------
PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of
BlackRock, is each Fund's transfer agent.
Certain officers and/or directors of the Funds are officers and/or directors of
BlackRock, Inc. or its affiliates.
3. Investments:
With respect to BlackRock Large Cap Core Fund, there were no purchases or sales
of investment in the Series for the six months ended April 30, 2007.
4. Capital Share Transactions:
BlackRock Large Cap Core Fund
Net increase in net assets derived from capital share transactions was
$241,208,581 and $1,029,911,537 for the six months ended April 30, 2007 and the
year ended October 31, 2006, respectively.
Transactions in capital shares for each class were as follows:
- -------------------------------------------------------------------------------
BlackRock Large Cap Core Fund
Institutional Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 9,061,281 $ 132,162,618
Shares issued to shareholders in
reinvestment of distributions ........ 1,053,027 15,047,596
---------------------------------
Total issued ........................... 10,114,308 147,210,214
Shares redeemed ........................ (7,308,805) (105,903,139)
---------------------------------
Net increase ........................... 2,805,503 $ 41,307,075
=================================
- -------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 26,968,302 $ 371,823,883
Shares issued resulting
from reorganization .................. 1,384,811 18,375,947
Shares issued resulting from
reinvestment of distributions ........ 3,426,399 45,621,028
---------------------------------
Total issued ........................... 31,779,512 435,820,858
Shares redeemed ........................ (12,354,857) (169,730,505)
---------------------------------
Net increase ........................... 19,424,655 $ 266,090,353
=================================
- -------------------------------------------------------------------------------
Investor A Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 18,097,528 $ 258,291,164
Shares issued to shareholders in
reinvestment of distributions ........ 1,389,359 19,520,763
---------------------------------
Total issued ........................... 19,486,884 277,811,927
Shares redeemed ........................ (7,162,040) (102,741,468)
---------------------------------
Net increase ........................... 12,324,844 $ 175,070,459
=================================
- -------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 30,806,771 $ 417,178,270
Shares issued resulting
from reorganization .................. 840,871 10,983,495
Automatic conversion of shares ......... 2,008,639 27,051,237
Shares issued to shareholders in
reinvestment of distributions ........ 4,384,870 57,558,522
---------------------------------
Total issued ........................... 38,041,151 512,771,524
Shares redeemed ........................ (12,782,750) (172,781,856)
---------------------------------
Net increase ........................... 25,258,401 $ 339,989,668
=================================
38 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Notes to Financial Statements (continued)
BlackRock Large Cap Series Funds, Inc.
- -------------------------------------------------------------------------------
BlackRock Large Cap Core Fund (continued)
- -------------------------------------------------------------------------------
Investor B Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 2,001,346 $ 27,207,745
Shares issued to shareholders in
reinvestment of distributions ........ 589,021 7,857,142
---------------------------------
Total issued ........................... 2,590,367 35,064,887
Shares redeemed ........................ (9,932,551) (134,832,732)
---------------------------------
Net decrease ........................... (7,342,184) $ (99,767,845)
=================================
- -------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 5,931,881 $ 76,856,340
Shares issued resulting
from reorganization .................. 1,421,696 17,703,160
Shares issued to shareholders in
reinvestment of distributions ........ 2,469,644 31,026,897
---------------------------------
Total issued ........................... 9,823,221 125,586,397
---------------------------------
Automatic conversion of shares ......... (2,100,430) (27,051,237)
Shares redeemed ........................ (8,481,854) (109,620,287)
---------------------------------
Total redeemed ......................... (10,582,284) (136,671,524)
---------------------------------
Net decrease ........................... (759,063) $ (11,085,127)
=================================
- -------------------------------------------------------------------------------
Investor C Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 13,788,047 $ 186,826,795
Shares issued to shareholders in
reinvestment of distributions ........ 1,781,719 23,732,239
---------------------------------
Total issued ........................... 15,569,766 210,559,034
Shares redeemed ........................ (7,370,233) (99,960,921)
---------------------------------
Net increase ........................... 8,199,533 $ 110,598,113
=================================
- -------------------------------------------------------------------------------
Investor C Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 34,794,418 $ 449,644,683
Shares issued resulting
from reorganization .................. 1,340,290 16,648,081
Shares issued to shareholders in
reinvestment of distributions ........ 5,198,202 65,153,921
---------------------------------
Total issued ........................... 41,332,910 531,446,685
Shares redeemed ........................ (11,945,575) (153,906,063)
---------------------------------
Net increase ........................... 29,387,335 $ 377,540,622
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 2,388,917 $ 32,925,996
Shares issued to shareholders in
reinvestment of distributions ........ 169,798 2,314,202
---------------------------------
Total issued ........................... 2,558,715 35,240,198
Shares redeemed ........................ (1,536,738) (21,239,419)
---------------------------------
Net increase ........................... 1,021,977 $ 14,000,779
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 6,430,000 $ 84,582,630
Shares issued resulting from
reorganization ....................... 175 2,220
Shares issued to shareholders in
of distributions ....................... 436,970 5,582,992
---------------------------------
Total issued ........................... 6,867,145 90,167,842
Shares redeemed ........................ (2,503,760) (32,791,821)
---------------------------------
Net increase ........................... 4,363,385 $ 57,376,021
=================================
BlackRock Large Cap Growth Fund
Net increase in net assets derived from capital share trans actions was
$91,542,533 and $230,644,704 for the six months ended April 30, 2007 and the
year ended October 31, 2006, respectively.
Transactions in capital shares for each class were as follows:
- -------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund
- -------------------------------------------------------------------------------
Institutional Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 7,031,432 $ 77,796,834
Shares issued to shareholders in
reinvestment of distributions ........ 62,923 683,337
---------------------------------
Total issued ........................... 7,094,355 78,480,171
Shares redeemed ........................ (4,043,082) (44,138,866)
---------------------------------
Net increase ........................... 3,051,273 $ 34,341,305
=================================
- -------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 11,925,860 $ 124,059,637
Shares issued resulting from
reorganization ....................... 1,465,913 15,537,208
---------------------------------
Total issued ........................... 13,391,773 139,596,845
Shares redeemed ........................ (6,839,045) (69,050,639)
---------------------------------
Net increase ........................... 6,552,728 $ 70,546,206
=================================
- -------------------------------------------------------------------------------
Service Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 145,027 $ 1,613,911
Shares issued to shareholders in
reinvestment of distributions ........ 1,438 15,600
---------------------------------
Total issued ........................... 146,465 1,629,511
Shares redeemed ........................ (109,541) (1,188,007)
---------------------------------
Net increase ........................... 36,924 $ 441,504
=================================
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 39
Notes to Financial Statements (continued)
BlackRock Large Cap Series Funds, Inc.
- -------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund (continued)
- -------------------------------------------------------------------------------
Service Shares for the Period
October 2, 2006+ to Dollar
October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 4,352 $ 45,215
Shares issued resulting from
reorganization ....................... 478,968 5,075,631
---------------------------------
Total issued ........................... 483,320 5,120,846
Shares redeemed ........................ (11,280) (119,891)
---------------------------------
Net increase ........................... 472,040 $ 5,000,955
=================================
+ Commencement of operations.
- -------------------------------------------------------------------------------
Investor A Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 6,193,546 $ 67,103,264
Shares issued to shareholders in
reinvestment of distributions ........ 74,875 798,915
---------------------------------
Total issued ........................... 6,268,421 67,902,179
Shares redeemed ........................ (4,101,583) (44,485,890)
---------------------------------
Net increase ........................... 2,166,838 $ 23,416,289
=================================
- -------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 9,836,838 $ 99,767,111
Shares issued resulting from
reorganization ....................... 1,545,391 16,095,245
Automatic conversion of shares ......... 1,109,567 11,105,497
---------------------------------
Total issued ........................... 12,491,796 126,967,853
Shares redeemed ........................ (3,852,495) (38,671,848)
---------------------------------
Net increase ........................... 8,639,301 $ 88,296,005
=================================
- -------------------------------------------------------------------------------
Investor B Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 1,570,106 $ 16,169,888
Shares issued to shareholders in
reinvestment of distributions ........ 37,261 376,698
---------------------------------
Total issued ........................... 1,607,367 16,546,586
Shares redeemed ........................ (2,120,279) (21,847,951)
---------------------------------
Net decrease ........................... (512,912) $ (5,301,365)
=================================
- -------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 3,316,837 $ 32,021,170
Shares issued resulting from
reorganization ....................... 831,350 8,218,730
---------------------------------
Total issued ........................... 4,148,187 40,239,900
---------------------------------
Automatic conversion of shares ......... (1,164,369) (11,105,497)
Shares redeemed ........................ (3,013,347) (28,784,814)
---------------------------------
Total redeemed ......................... (4,177,716) (39,890,311)
---------------------------------
Net increase (decrease) ................ (29,529) $ 349,589
=================================
- -------------------------------------------------------------------------------
Investor C Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 4,620,383 $ 47,681,823
Shares issued to shareholders in
reinvestment of distributions ........ 69,949 706,480
---------------------------------
Total issued ........................... 4,690,332 48,388,303
Shares redeemed ........................ (2,212,898) (22,861,903)
---------------------------------
Net increase ........................... 2,477,434 $ 25,526,400
=================================
- -------------------------------------------------------------------------------
Investor C Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 7,848,897 $ 75,488,161
Shares issued resulting
from reorganization .................. 253,461 2,503,179
---------------------------------
Total issued ........................... 8,102,358 77,991,340
Shares redeemed ........................ (3,584,176) (34,288,057)
---------------------------------
Net increase ........................... 4,518,182 $ 43,703,283
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 2,248,624 $ 23,745,757
Shares issued to shareholders in
reinvestment of distributions ........ 20,340 211,332
---------------------------------
Total issued ........................... 2,268,964 23,957,089
Shares redeemed ........................ (1,027,120) (10,838,689)
---------------------------------
Net increase ........................... 1,241,844 $ 13,118,400
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 3,772,105 $ 37,223,992
Shares redeemed ........................ (1,475,670) (14,475,326)
---------------------------------
Net increase ........................... 2,296,435 $ 22,748,666
=================================
BlackRock Large Cap Value Fund
Net increase in net assets derived from capital share transactions was
$596,698,107 and $2,061,799,094 for the six months ended April 30, 2007 and the
year ended October 31, 2006, respectively.
40 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Notes to Financial Statements (continued)
BlackRock Large Cap Series Funds, Inc.
Transcations in capital shares for each class were as follows:
- -------------------------------------------------------------------------------
BlackRock Large Cap Value Fund
- -------------------------------------------------------------------------------
Institutional Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 19,675,163 $ 384,220,442
Shares issued to shareholders
in reinvestment of dividends
and distributions ...................... 1,401,216 26,402,672
---------------------------------
Total issued ........................... 21,076,379 410,623,114
Shares redeemed ........................ (10,705,235) (207,227,217)
---------------------------------
Net increase ........................... 10,371,144 $ 203,395,897
=================================
- -------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 33,588,560 $ 609,452,743
Shares issued resulting from
reorganization ....................... 5,326,567 100,150,108
Shares issued to shareholders in
reinvestment of distributions ........ 1,393,347 24,275,076
---------------------------------
Total issued ........................... 40,308,474 733,877,927
Shares redeemed ........................ (14,144,837) (258,308,351)
---------------------------------
Net increase ........................... 26,163,637 $ 475,569,576
=================================
- -------------------------------------------------------------------------------
Service Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 207,183 $ 4,063,325
Shares issued to shareholders
in reinvestment of dividends
and distributions ...................... 19,010 363,282
---------------------------------
Total issued ........................... 226,193 4,426,607
Shares redeemed ........................ (174,343) (3,379,821)
---------------------------------
Net increase ........................... 51,850 $ 1,046,786
=================================
- -------------------------------------------------------------------------------
Service Shares for the Period
October 2, 2006+ to Dollar
October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 4,292 $ 79,918
Shares issued resulting from
reorganization ....................... 1,323,427 24,877,778
---------------------------------
Total issued ........................... 1,327,719 24,957,696
Shares redeemed ........................ (17,556) (333,427)
---------------------------------
Net increase ........................... 1,310,163 $ 24,624,269
=================================
+ Commencement of operations.
- -------------------------------------------------------------------------------
Investor A Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 21,959,010 $ 426,634,083
Shares issued to shareholders
in reinvestment of dividends
and distributions ...................... 1,792,473 33,458,687
---------------------------------
Total issued ........................... 23,751,483 460,092,770
Shares redeemed ........................ (9,836,518) (188,243,512)
---------------------------------
Net increase ........................... 13,914,965 $ 271,849,258
=================================
- -------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 63,546,739 $1,124,469,647
Shares issued resulting from
reorganization ....................... 9,040,105 167,160,591
Automatic conversion of shares ......... 1,328,996 23,420,477
Shares issued to shareholders in
reinvestment of distributions ........ 1,729,174 30,341,226
---------------------------------
Total issued ........................... 75,645,014 1,345,391,941
Shares redeemed ........................ (9,018,321) (161,753,348)
---------------------------------
Net increase ........................... 66,626,693 $1,183,638,593
=================================
- -------------------------------------------------------------------------------
Investor B Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 1,321,385 $ 24,398,255
Shares issued to shareholders in
reinvestment of distributions ........ 499,665 8,806,469
---------------------------------
Total issued ........................... 1,821,050 33,204,724
Shares redeemed ........................ (2,902,332) (52,956,131)
---------------------------------
Net decrease ........................... (1,081,280) $ (19,751,407)
=================================
- -------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 4,117,800 $ 70,080,431
Shares issued resulting from
reorganization ....................... 2,302,755 40,586,052
Shares issued to shareholders in
reinvestment of distributions ........ 614,319 10,065,944
---------------------------------
Total issued ........................... 7,034,874 120,732,427
---------------------------------
Automatic conversion of shares ......... (1,388,752) (23,420,477)
Shares redeemed ........................ (4,421,507) (75,511,208)
---------------------------------
Total redeemed ......................... (5,810,259) (98,931,685)
---------------------------------
Net increase ........................... 1,224,615 $ 21,800,742
=================================
- -------------------------------------------------------------------------------
Investor C Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 8,420,219 $ 154,226,035
Shares issued to shareholders in
reinvestment of distributions ........ 1,353,409 23,781,315
---------------------------------
Total issued ........................... 9,773,628 178,007,350
Shares redeemed ........................ (4,036,716) (73,662,419)
---------------------------------
Net increase ........................... 5,736,912 $ 104,344,931
=================================
- -------------------------------------------------------------------------------
Investor C Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 21,100,602 $ 358,619,070
Shares issued resulting from
reorganization ....................... 629,971 11,074,264
Shares issued to shareholders in
reinvestment of distributions ........ 1,122,091 18,345,447
---------------------------------
Total issued ........................... 22,852,664 388,038,781
Shares redeemed ........................ (5,721,171) (97,483,736)
---------------------------------
Net increase ........................... 17,131,493 $ 290,555,045
=================================
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 41
Notes to Financial Statements (concluded)
BlackRock Large Cap Series Funds, Inc.
- -------------------------------------------------------------------------------
BlackRock Large Cap Value Fund (concluded)
- -------------------------------------------------------------------------------
Class R Shares for the Six Dollar
Months Ended April 30, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 2,760,366 $ 51,610,350
Shares issued to shareholders
in reinvestment of dividends
and distributions ...................... 219,465 3,950,056
---------------------------------
Total issued ........................... 2,979,831 55,560,406
Shares redeemed ........................ (1,057,131) (19,747,764)
---------------------------------
Net increase ........................... 1,922,700 $ 35,812,642
=================================
- -------------------------------------------------------------------------------
Class R Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 5,076,346 $ 88,344,587
Shares issued to shareholders in
reinvestment of distributions ........ 148,464 2,474,052
---------------------------------
Total issued ........................... 5,224,810 90,818,639
Shares redeemed ........................ (1,446,630) (25,207,770)
---------------------------------
Net increase ........................... 3,778,180 $ 65,610,869
=================================
5. Capital Loss Carryforward:
BlackRock Large Cap Core Fund
On October 31, 2006, the Fund had a net capital loss carryforward of
$70,935,568, of which $27,053,742 expires in 2008, $26,081,669 expires in 2009,
$14,800,383 expires in 2010 and $2,999,774 expires in 2011. This amount will be
available to offset like amounts of any future taxable gains.
BlackRock Large Cap Growth Fund
On October 31, 2006, the Fund had a net capital loss carryforward of
$51,746,631, of which $2,612,498 expires in 2007, $16,739,229 expires in 2008,
$6,082,996 expires in 2009 and $26,311,908 expires in 2010. This amount will be
available to offset like amounts of any future taxable gains.
BlackRock Large Cap Value Fund
On October 31, 2006, the Fund had a net capital loss carryforward of $67,982,
all of which expires in 2010. This amount will be available to offset like
amounts of any future taxable gains.
42 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Portfolio Information as of April 30, 2007 Master Large Cap Series Trust
Sector Representation
Percent of
Master Large Cap Core Portfolio Total Investments
- --------------------------------------------------------------------------------
Health Care ..................................................... 17.7%
Information Technology .......................................... 16.2
Consumer Discretionary .......................................... 15.1
Financial ....................................................... 9.7
Energy .......................................................... 9.0
Industrials ..................................................... 8.5
Materials ....................................................... 4.3
Consumer Staples ................................................ 2.6
Telecommunication Services ...................................... 1.5
Other* .......................................................... 15.4
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Total Investments
- --------------------------------------------------------------------------------
Information Technology .......................................... 25.4%
Health Care ..................................................... 17.4
Consumer Discretionary .......................................... 17.1
Industrials ..................................................... 10.9
Materials ....................................................... 6.0
Financials ...................................................... 5.1
Energy .......................................................... 4.0
Consumer Staples ................................................ 2.0
Other* .......................................................... 12.1
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Total Investments
- --------------------------------------------------------------------------------
Financials ...................................................... 20.8%
Energy .......................................................... 12.8
Information Technology .......................................... 11.2
Health Care ..................................................... 10.0
Consumer Discretionary .......................................... 9.1
Industrials ..................................................... 7.9
Materials ....................................................... 4.7
Consumer Staples ................................................ 4.1
Telecommunication Services ...................................... 2.0
Utilities ....................................................... 1.2
Other* .......................................................... 16.2
- --------------------------------------------------------------------------------
* Includes portfolio holdings in short-term investments.
For Portfolio compliance purposes, the Portfolio's sector and industry
classifications refer to any one or more of the sector and industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by Portfolio management. This
definition may not apply for purposes of this report, which may combine
such sector and industry sub-classifications for reporting ease.
Five Largest Industries
Percent of
Master Large Cap Core Portfolio Net Assets
- --------------------------------------------------------------------------------
Health Care Providers & Services ................................ 11.7%
Oil, Gas & Consumable Fuels ..................................... 10.6
Specialty Retail ................................................ 6.6
Software ........................................................ 5.7
Computer & Peripherals .......................................... 5.6
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Net Assets
- --------------------------------------------------------------------------------
Health Care Providers & Services ................................ 10.7%
Software ........................................................ 9.5
Specialty Retail ................................................ 6.9
Computers & Peripherals ......................................... 6.8
Multiline Retail ................................................ 5.2
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Net Assets
- --------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels ..................................... 15.2%
Insurance ....................................................... 9.2
Diversified Financial Services .................................. 8.8
Health Care Providers & Services ................................ 7.8
Capital Markets ................................................. 5.8
- --------------------------------------------------------------------------------
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 43
Portfolio Information as of April 30, 2007 (concluded)
Master Large Cap Series Trust
Ten Largest Equity Holdings
Percent of
Master Large Cap Core Portfolio Net Assets
- --------------------------------------------------------------------------------
Exxon Mobil Corp. ............................................... 4.0%
JPMorgan Chase & Co. ............................................ 2.2
Chevron Corp. ................................................... 2.1
International Business Machines Corp. ........................... 2.1
Cisco Systems, Inc. ............................................. 2.1
Hewlett-Packard Co. ............................................. 1.8
Morgan Stanley .................................................. 1.6
The Goldman Sachs Group, Inc. ................................... 1.6
General Electric Co. ............................................ 1.6
UnitedHealth Group, Inc. ........................................ 1.5
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Net Assets
- --------------------------------------------------------------------------------
Cisco Systems, Inc. ............................................. 3.2%
International Business Machines Corp. ........................... 3.0
Oracle Corp. .................................................... 2.0
UnitedHealth Group, Inc. ........................................ 2.0
Hewlett-Packard Co. ............................................. 1.9
The Goldman Sachs Group, Inc. ................................... 1.9
Microsoft Corp. ................................................. 1.9
Schering-Plough Corp. ........................................... 1.6
Exxon Mobil Corp. ............................................... 1.4
Lockheed Martin Corp. ........................................... 1.4
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Net Assets
- --------------------------------------------------------------------------------
Exxon Mobil Corp. ............................................... 6.5%
Citigroup, Inc. ................................................. 4.1
JPMorgan Chase & Co. ............................................ 3.4
Chevron ......................................................... 3.2
Morgan Stanley .................................................. 2.0
Merck & Co., Inc. ............................................... 1.7
Valero Energy Corp. ............................................. 1.6
The Travelers Cos., Inc. ........................................ 1.5
Walt Disney Co. ................................................. 1.5
Marathon Oil Corp. .............................................. 1.5
- --------------------------------------------------------------------------------
44 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Schedule of Investments as of April 30, 2007 (Unaudited)
Master Large Cap Core Portfolio
Shares
Sector Industry Common Stocks Held Value
===============================================================================
Consumer Discretionary -- 17.8%
Auto Components -- 0.2%
The Goodyear Tire & Rubber Co. (a)(c) 310,000 $ 10,310,600
----------------------------------------------------------------------
Automobiles -- 1.0%
General Motors Corp. (c) 1,450,000 45,283,500
----------------------------------------------------------------------
Diversified Consumer
Services -- 0.5%
ITT Educational Services, Inc. (a) 220,000 21,386,200
----------------------------------------------------------------------
Leisure Equipment &
Products -- 1.4%
Hasbro, Inc. 420,000 13,276,200
Mattel, Inc. (c) 1,670,000 47,261,000
--------------
60,537,200
----------------------------------------------------------------------
Media -- 3.8%
The DIRECTV Group, Inc. (a)(c) 1,980,000 47,203,200
Meredith Corp. 110,000 6,371,200
Omnicom Group (c) 460,000 48,166,600
Walt Disney Co. (c) 1,820,000 63,663,600
--------------
165,404,600
----------------------------------------------------------------------
Multiline Retail -- 3.2%
Dollar Tree Stores, Inc. (a) 90,000 3,538,800
JC Penney Co., Inc. 490,000 38,754,100
Kohl's Corp. (a)(c) 680,000 50,347,200
Nordstrom, Inc. (c) 880,000 48,329,600
--------------
140,969,700
----------------------------------------------------------------------
Specialty Retail -- 6.6%
Abercrombie & Fitch Co. Class A (c) 490,000 40,013,400
American Eagle Outfitters, Inc. 1,410,000 41,552,700
AutoZone, Inc. (a) 340,000 45,233,600
OfficeMax, Inc. 430,000 21,164,600
RadioShack Corp. 1,310,000 38,081,700
Ross Stores, Inc. 1,120,000 37,128,000
The Sherwin-Williams Co. 400,000 25,508,000
TJX Cos., Inc. 1,490,000 41,556,100
--------------
290,238,100
----------------------------------------------------------------------
Textiles, Apparel & Luxury
Goods -- 1.1%
Coach, Inc. (a)(c) 970,000 47,365,100
----------------------------------------------------------------------
Total Consumer Discretionary 781,495,000
===============================================================================
Consumer Staples -- 3.1%
Food & Staples Retailing -- 2.3%
The Kroger Co. 1,740,000 51,347,400
Safeway, Inc. 1,360,000 49,368,000
--------------
100,715,400
----------------------------------------------------------------------
Food Products -- 0.3%
HJ Heinz Co. 330,000 15,546,300
----------------------------------------------------------------------
Household Products -- 0.5%
The Procter & Gamble Co. 320,000 20,579,200
----------------------------------------------------------------------
Total Consumer Staples 136,840,900
===============================================================================
Energy -- 10.6%
Oil, Gas & Consumable
Fuels -- 10.6%
Chevron Corp. 1,210,000 94,125,900
Exxon Mobil Corp. 2,230,000 177,017,400
Frontier Oil Corp. 1,250,000 44,162,500
Holly Corp. 720,000 45,792,000
Marathon Oil Corp. 540,000 54,837,000
Tesoro Corp. 390,000 47,268,000
----------------------------------------------------------------------
Total Energy 463,202,800
===============================================================================
Financials -- 11.5%
Capital Markets -- 3.5%
The Goldman Sachs Group, Inc. 320,000 69,955,200
Lehman Brothers Holdings, Inc. (c) 170,000 12,797,600
Morgan Stanley 840,000 70,568,400
--------------
153,321,200
----------------------------------------------------------------------
Diversified Financial
Services -- 3.9%
Bank of America Corp. 490,000 24,941,000
Citigroup, Inc. 700,000 37,534,000
Moody's Corp. (c) 180,000 11,901,600
JPMorgan Chase & Co. 1,830,000 95,343,000
--------------
169,719,600
----------------------------------------------------------------------
Insurance -- 3.8%
AMBAC Financial Group, Inc. 260,000 23,868,000
The Allstate Corp. 770,000 47,986,400
American International Group, Inc. 170,000 11,884,700
Prudential Financial, Inc. 250,000 23,750,000
Safeco Corp. 80,000 5,339,200
The Travelers Cos., Inc. 1,020,000 55,182,000
--------------
168,010,300
----------------------------------------------------------------------
Real Estate Management &
Development -- 0.3%
CB Richard Ellis Group, Inc. (a) 360,000 12,186,000
----------------------------------------------------------------------
Total Financials 503,237,100
===============================================================================
Health Care -- 20.9%
Biotechnology -- 0.9%
Biogen Idec, Inc. (a) 850,000 40,128,500
----------------------------------------------------------------------
Health Care Equipment &
Supplies -- 2.0%
Kinetic Concepts, Inc. (a) 760,000 38,000,000
Zimmer Holdings, Inc. (a) 560,000 50,668,800
--------------
88,668,800
----------------------------------------------------------------------
Health Care Providers &
Services -- 11.7%
Aetna, Inc. 1,140,000 53,443,200
AmerisourceBergen Corp. (c) 876,000 43,791,240
Cigna Corp. 330,000 51,344,700
Express Scripts, Inc. (a)(c) 480,000 45,864,000
Humana, Inc. (a)(c) 730,000 46,165,200
Laboratory Corp. of America
Holdings (a)(c) 550,000 43,417,000
McKesson Corp. 830,000 48,828,900
Medco Health Solutions, Inc. (a) 690,000 53,833,800
UnitedHealth Group, Inc. 1,210,000 64,202,600
WellPoint, Inc. (a)(c) 750,000 59,227,500
--------------
510,118,140
----------------------------------------------------------------------
Health Care Technology -- 1.0%
Emdeon Corp. (a) 2,770,000 44,707,800
----------------------------------------------------------------------
Life Sciences Tools &
Services -- 0.7%
Waters Corp. (a) 530,000 31,497,900
----------------------------------------------------------------------
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 45
Schedule of Investments (continued) Master Large Cap Core Portfolio
Shares
Sector Industry Common Stocks Held Value
===============================================================================
Health Care (concluded)
Pharmaceuticals -- 4.6%
Forest Laboratories, Inc. (a)(c) 910,000 $ 48,421,100
Johnson & Johnson 210,000 13,486,200
King Pharmaceuticals, Inc. (a)(c) 1,211,000 24,764,950
Pfizer, Inc. 2,038,000 53,925,480
Schering-Plough Corp. 1,840,000 58,383,200
--------------
198,980,930
----------------------------------------------------------------------
Total Health Care 914,102,070
===============================================================================
Industrials -- 10.1%
Aerospace & Defense -- 3.6%
Honeywell International, Inc. 1,070,000 57,972,600
Lockheed Martin Corp. (c) 550,000 52,877,000
Raytheon Co. 867,200 46,429,888
--------------
157,279,488
----------------------------------------------------------------------
Airlines -- 2.0%
AMR Corp. (a) 1,580,000 41,222,200
Continental Airlines, Inc. Class B (a)(c) 1,250,000 45,700,000
--------------
86,922,200
----------------------------------------------------------------------
Commercial Services &
Supplies -- 1.1%
Avery Dennison Corp. 270,000 16,794,000
Manpower, Inc. 390,000 31,297,500
--------------
48,091,500
----------------------------------------------------------------------
Industrial Conglomerates -- 1.6%
General Electric Co. 1,890,000 69,665,400
----------------------------------------------------------------------
Machinery -- 1.8%
Cummins, Inc. 490,000 45,158,400
Manitowoc Co. 176,000 12,008,480
Terex Corp. (a) 150,000 11,677,500
Toro Co. 210,000 10,552,500
--------------
79,396,880
----------------------------------------------------------------------
Total Industrials 441,355,468
===============================================================================
Information Technology -- 19.2%
Communications
Equipment -- 2.1%
Cisco Systems, Inc. (a) 3,450,000 92,253,000
----------------------------------------------------------------------
Computers & Peripherals -- 5.6%
Hewlett-Packard Co. 1,870,000 78,801,800
International Business Machines Corp. 910,000 93,011,100
Lexmark International, Inc. Class A (a) 710,000 38,695,000
NCR Corp. (a) 653,000 32,911,200
--------------
243,419,100
----------------------------------------------------------------------
Electronic Equipment &
Instruments -- 0.9%
Avnet, Inc. (a)(c) 680,000 27,812,000
Mettler Toledo International, Inc. (a) 130,000 12,690,600
--------------
40,502,600
----------------------------------------------------------------------
IT Services -- 1.1%
Electronic Data Systems Corp. 1,660,000 48,538,400
----------------------------------------------------------------------
Office Electronics -- 1.1%
Xerox Corp. (a) 2,580,000 47,730,000
----------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 2.7%
Applied Materials, Inc. (c) 2,730,000 52,470,600
Integrated Device Technology, Inc. (a) 1,340,000 20,073,200
Novellus Systems, Inc. (a) 1,450,000 46,936,500
--------------
119,480,300
----------------------------------------------------------------------
Software -- 5.7%
BEA Systems, Inc. (a) 2,960,000 34,898,400
BMC Software, Inc. (a)(c) 1,480,000 47,907,600
Cadence Design Systems, Inc. (a) 1,510,000 33,522,000
Compuware Corp. (a) 1,110,000 10,955,700
McAfee, Inc. (a) 170,000 5,523,300
Microsoft Corp. 1,810,000 54,191,400
Oracle Corp. (a) 3,230,000 60,724,000
--------------
247,722,400
----------------------------------------------------------------------
Total Information Technology 839,645,800
===============================================================================
Materials -- 5.1%
Chemicals -- 0.9%
Lyondell Chemical Co. 1,330,000 41,389,600
----------------------------------------------------------------------
Containers & Packaging -- 1.3%
Crown Holdings, Inc. (a) 640,000 15,468,800
Pactiv Corp. (a) 1,180,000 40,804,400
--------------
56,273,200
----------------------------------------------------------------------
Metals & Mining -- 2.1%
Nucor Corp. 730,000 46,325,800
Southern Copper Corp. (c) 580,000 46,574,000
--------------
92,899,800
----------------------------------------------------------------------
Paper & Forest Products -- 0.8%
International Paper Co. (c) 870,000 32,816,400
----------------------------------------------------------------------
Total Materials 223,379,000
===============================================================================
Telecommunication Services -- 1.7%
Diversified Telecommunication
Services -- 1.7%
AT&T Inc. 790,000 30,588,800
Qwest Communications
International Inc. (a)(c) 5,070,000 45,021,600
----------------------------------------------------------------------
Total Telecommunication Services 75,610,400
===============================================================================
Total Common Stocks
(Cost -- $3,560,516,210) -- 100.0% 4,378,868,538
===============================================================================
===============================================================================
Short-Term Beneficial
Securities Interest
===============================================================================
BlackRock Liquidity Series, LLC Money
Market Series, 5.33% (b)(d)(e) $799,478,410 799,478,410
----------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $799,478,410) -- 18.3% 799,478,410
===============================================================================
Total Investments
(Cost -- $4,359,994,620*) -- 118.3% 5,178,346,948
Liabilities in Excess of Other Assets -- (18.3%) (800,795,644)
--------------
Net Assets -- 100.0% $4,377,551,304
==============
46 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Schedule of Investments (concluded) Master Large Cap Core Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ...................................... $ 4,371,963,500
===============
Gross unrealized appreciation ....................... $ 836,369,956
Gross unrealized depreciation ....................... (29,986,508)
---------------
Net unrealized appreciation ......................... $ 806,383,448
===============
(a) Non-income producing security.
(b) Security was purchased with the cash proceeds from securities loans.
(c) Security, or a portion of security, is on loan.
(d) Represents the current yield as of April 30, 2007.
(e) Investments in companies considered to be an affiliate of the Portfolio,
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 -- $ 42,714
BlackRock Liquidity Series, LLC
Money Market Series $150,599,610 $ 429,213
--------------------------------------------------------------------------
o For Portfolio compliance purposes, the Portfolio's sector and industry
classifications refer to any one or more of the sector and industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by Portfolio management. This
definition may not apply for purposes of this report, which may combine
sector and industry sub-classifications for reporting ease. Sectors and
industries are shown as a percent of net assets.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 47
Schedule of Investments as of April 30, 2007 (Unaudited)
Master Large Cap Growth Portfolio
Shares
Sector Industry Common Stocks Held Value
===============================================================================
Consumer Discretionary -- 19.5%
Automobiles -- 0.8%
Harley-Davidson, Inc. (d) 117,000 $ 7,408,440
----------------------------------------------------------------------
Diversified Consumer
Services -- 1.1%
ITT Educational Services, Inc. (b)(d) 110,000 10,693,100
----------------------------------------------------------------------
Media -- 4.6%
The DIRECTV Group, Inc. (b) 485,000 11,562,400
Meredith Corp. 160,000 9,267,200
Omnicom Group (d) 117,000 12,251,070
Walt Disney Co. (d) 370,000 12,942,600
--------------
46,023,270
----------------------------------------------------------------------
Multiline Retail -- 5.2%
Dollar Tree Stores, Inc. (b) 268,000 10,537,760
Family Dollar Stores, Inc. 329,000 10,475,360
JC Penney Co., Inc. 80,000 6,327,200
Kohl's Corp. (b) 180,000 13,327,200
Nordstrom, Inc. (d) 213,000 11,697,960
--------------
52,365,480
----------------------------------------------------------------------
Specialty Retail -- 6.9%
American Eagle Outfitters, Inc. 335,000 9,872,450
AutoZone, Inc. (b) 81,000 10,776,240
Men's Wearhouse, Inc. 177,000 7,658,790
RadioShack Corp. 390,000 11,337,300
Ross Stores, Inc. 309,000 10,243,350
The Sherwin-Williams Co. 150,000 9,565,500
TJX Cos., Inc. 356,000 9,928,840
--------------
69,382,470
----------------------------------------------------------------------
Textiles, Apparel & Luxury
Goods -- 0.9%
Coach, Inc. (b) 182,000 8,887,060
----------------------------------------------------------------------
Total Consumer Discretionary 194,759,820
===============================================================================
Consumer Staples -- 2.2%
Food & Staples Retailing -- 1.1%
The Kroger Co. 368,000 10,859,680
----------------------------------------------------------------------
Household Products -- 1.1%
Energizer Holdings, Inc. (b) 116,000 11,272,880
----------------------------------------------------------------------
Total Consumer Staples 22,132,560
===============================================================================
Energy -- 4.5%
Oil, Gas & Consumable
Fuels -- 4.5%
Exxon Mobil Corp. 173,000 13,732,740
Frontier Oil Corp. (d) 277,000 9,786,410
Holly Corp. (d) 175,000 11,130,000
Tesoro Corp. 89,000 10,786,800
----------------------------------------------------------------------
Total Energy 45,435,950
===============================================================================
Financials -- 5.8%
Capital Markets -- 3.0%
The Goldman Sachs Group, Inc. (d) 86,000 18,800,460
Morgan Stanley 135,000 11,341,350
--------------
30,141,810
----------------------------------------------------------------------
Insurance -- 1.8%
AMBAC Financial Group, Inc. 75,000 6,885,000
CNA Financial Corp. (d) 230,000 10,734,100
--------------
17,619,100
----------------------------------------------------------------------
Real Estate Management &
Development -- 1.0%
CB Richard Ellis Group, Inc. (b) 303,000 10,256,550
----------------------------------------------------------------------
Total Financials 58,017,460
===============================================================================
Health Care -- 19.8%
Biotechnology -- 1.0%
Biogen Idec, Inc. (b) 211,000 9,961,310
----------------------------------------------------------------------
Health Care Equipment &
Supplies -- 2.4%
Kinetic Concepts, Inc. (b) 210,000 10,500,000
Zimmer Holdings, Inc. (b) 144,000 13,029,120
--------------
23,529,120
----------------------------------------------------------------------
Health Care Providers &
Services -- 10.7%
Aetna, Inc. 253,000 11,860,640
AmerisourceBergen Corp. 128,000 6,398,720
Express Scripts, Inc. (b) 120,000 11,466,000
Humana, Inc. (b) 180,000 11,383,200
Laboratory Corp. of America
Holdings (b)(d) 148,000 11,683,120
McKesson Corp. 151,900 8,936,277
Medco Health Solutions, Inc. (b) 160,000 12,483,200
UnitedHealth Group, Inc. 370,000 19,632,200
WellPoint, Inc. (b) 170,000 13,424,900
--------------
107,268,257
----------------------------------------------------------------------
Health Care Technology -- 1.0%
Emdeon Corp. (b) 648,000 10,458,720
----------------------------------------------------------------------
Life Sciences Tools &
Services -- 1.1%
Waters Corp. (b) 186,000 11,053,980
----------------------------------------------------------------------
Pharmaceuticals -- 3.6%
Forest Laboratories, Inc. (b)(d) 227,000 12,078,670
Johnson & Johnson 45,000 2,889,900
Pfizer, Inc. 177,600 4,699,296
Schering-Plough Corp. 510,000 16,182,300
--------------
35,850,166
----------------------------------------------------------------------
Total Health Care 198,121,553
===============================================================================
Industrials -- 12.3%
Aerospace & Defense -- 3.8%
Honeywell International, Inc. 249,000 13,490,820
Lockheed Martin Corp. 142,000 13,651,880
Raytheon Co. 208,000 11,136,320
--------------
38,279,020
----------------------------------------------------------------------
Airlines -- 1.9%
AMR Corp. (b) 366,000 9,548,940
Continental Airlines, Inc. Class B (b)(d) 276,000 10,090,560
--------------
19,639,500
----------------------------------------------------------------------
48 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Schedule of Investments (continued) Master Large Cap Growth Portfolio
Shares
Sector Industry Common Stocks Held Value
===============================================================================
Industrials (concluded)
Commercial Services &
Supplies -- 2.5%
Avery Dennison Corp. 91,000 $ 5,660,200
Manpower, Inc. 117,000 9,389,250
Steelcase, Inc. Class A 520,000 10,150,400
--------------
25,199,850
----------------------------------------------------------------------
Construction & Engineering -- 0.6%
Quanta Services, Inc. (b)(d) 216,000 5,937,840
----------------------------------------------------------------------
Industrial Conglomerates -- 0.5%
General Electric Co. 130,000 4,791,800
----------------------------------------------------------------------
Machinery -- 3.0%
Cummins, Inc. 90,000 8,294,400
Manitowoc Co. 143,000 9,756,890
Terex Corp. (b) 91,900 7,154,415
Toro Co. 100,000 5,025,000
--------------
30,230,705
----------------------------------------------------------------------
Total Industrials 124,078,715
===============================================================================
Information Technology -- 28.9%
Communications
Equipment -- 3.2%
Cisco Systems, Inc. (b) 1,186,000 31,713,640
----------------------------------------------------------------------
Computers & Peripherals -- 6.8%
EMC Corp. (b) 230,000 3,491,400
Hewlett-Packard Co. (d) 455,000 19,173,700
International Business Machines Corp. 290,000 29,640,900
Lexmark International, Inc. Class A (b) 162,000 8,829,000
NCR Corp. (b) 140,000 7,056,000
--------------
68,191,000
----------------------------------------------------------------------
Electronic Equipment &
Instruments -- 3.0%
Agilent Technologies, Inc. (b) 225,000 7,733,250
Avnet, Inc. (b)(d) 269,000 11,002,100
Mettler Toledo International, Inc. (b) 119,000 11,616,780
--------------
30,352,130
----------------------------------------------------------------------
IT Services -- 3.0%
Convergys Corp. (b) 374,000 9,447,240
Electronic Data Systems Corp. 390,000 11,403,600
Total System Services, Inc. 281,000 8,727,860
--------------
29,578,700
----------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 3.4%
Applied Materials, Inc. 705,000 13,550,100
Integrated Device Technology, Inc. (b) 642,000 9,617,160
Novellus Systems, Inc. (b)(d) 327,000 10,584,990
Verigy Ltd. (b) 1 25
--------------
33,752,275
----------------------------------------------------------------------
Software -- 9.5%
BEA Systems, Inc. (b) 665,000 7,840,350
BMC Software, Inc. (b)(d) 350,000 11,329,500
Cadence Design Systems, Inc. (b) 470,000 10,434,000
Compuware Corp. (b) 585,000 5,773,950
McAfee, Inc. (b) 360,000 11,696,400
Microsoft Corp. 621,000 18,592,740
Oracle Corp. (b) 1,048,000 19,702,400
Synopsys, Inc. (b) 369,000 10,206,540
--------------
95,575,880
----------------------------------------------------------------------
Total Information Technology 289,163,625
===============================================================================
Materials -- 6.8%
Chemicals -- 1.9%
Cabot Corp. 207,000 9,377,100
International Flavors & Fragrances, Inc. 200,000 9,734,000
--------------
19,111,100
----------------------------------------------------------------------
Containers & Packaging -- 3.1%
Crown Holdings, Inc. (b) 430,000 10,393,100
Pactiv Corp. (b) 298,000 10,304,840
Sealed Air Corp. 298,000 9,804,200
--------------
30,502,140
----------------------------------------------------------------------
Metals & Mining -- 1.8%
Nucor Corp. 125,300 7,951,538
Southern Copper Corp. (d) 129,000 10,358,700
--------------
18,310,238
----------------------------------------------------------------------
Total Materials 67,923,478
===============================================================================
Total Common Stocks
(Cost -- $830,669,980) -- 99.8% 999,633,161
===============================================================================
===============================================================================
Short-Term Beneficial
Securities Interest
===============================================================================
BlackRock Liquidity Series, LLC
Cash Sweep Series, 5.26% (a)(c) $ 2,777,826 2,777,826
BlackRock Liquidity Series, LLC
Money Market Series,
5.33% (a)(c)(e) 134,891,850 134,891,850
----------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $137,669,676) -- 13.8% 137,669,676
===============================================================================
Total Investments
(Cost -- $968,339,656*) -- 113.6% 1,137,302,837
Liabilities in Excess of Other Assets -- (13.6%) (135,887,037)
--------------
Net Assets -- 100.0% $1,001,415,800
==============
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 49
Schedule of Investments (concluded) Master Large Cap Growth Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 970,430,989
=============
Gross unrealized appreciation .......................... $ 172,720,191
Gross unrealized depreciation .......................... (5,848,343)
-------------
Net unrealized appreciation ............................ $ 166,871,848
=============
(a) Investments in companies considered to be an affiliate of the Portfolio,
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 $ 2,473,170 $ 62,426
BlackRock Liquidity Series, LLC
Money Market Series $36,931,000 $ 63,749
--------------------------------------------------------------------------
(b) Non-income producing security.
(c) Represents the current yield as of April 30, 2007.
(d) Security, or a portion of security, is on loan.
(e) Security was purchased with the cash proceeds from securities loans.
o For Portfolio compliance purposes, the Portfolio's sector and industry
classifications refer to any one or more of the sector and industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by Portfolio management. This
definition may not apply for purposes of this report, which may combine
such sector and industry sub-classifications for reporting ease. Sectors
and industries are shown as a percent of net assets.
See Notes to Financial Statements.
50 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Schedule of Investments as of April 30, 2007 (Unaudited)
Master Large Cap Value Portfolio
Shares
Sector Industry Common Stocks Held Value
===============================================================================
Consumer Discretionary -- 10.9%
Automobiles -- 1.0%
General Motors Corp. (e) 1,610,000 $ 50,280,300
----------------------------------------------------------------------
Leisure Equipment &
Products -- 2.2%
Hasbro, Inc. (e) 1,660,000 52,472,600
Mattel, Inc. 1,990,000 56,317,000
--------------
108,789,600
----------------------------------------------------------------------
Media -- 1.6%
The DIRECTV Group, Inc. (b) 167,900 4,002,736
Walt Disney Co. (e) 2,110,000 73,807,800
--------------
77,810,536
----------------------------------------------------------------------
Multiline Retail -- 3.1%
Dillard's, Inc. Class A 90,000 3,116,700
Dollar Tree Stores, Inc. (b) 1,080,000 42,465,600
Family Dollar Stores, Inc. 1,510,000 48,078,400
JC Penney Co., Inc. 475,600 37,615,204
Nordstrom, Inc. (e) 320,000 17,574,400
--------------
148,850,304
----------------------------------------------------------------------
Specialty Retail -- 3.0%
OfficeMax, Inc. 900,000 44,298,000
RadioShack Corp. (e) 1,840,000 53,488,800
The Sherwin-Williams Co. (e) 760,000 48,465,200
--------------
146,252,000
----------------------------------------------------------------------
Total Consumer Discretionary 531,982,740
===============================================================================
Consumer Staples -- 4.9%
Food & Staples Retailing -- 2.5%
The Kroger Co. 2,090,000 61,675,900
Safeway, Inc. (e) 1,640,000 59,532,000
--------------
121,207,900
----------------------------------------------------------------------
Food Products -- 1.4%
ConAgra Foods, Inc. (e) 490,000 12,044,200
HJ Heinz Co. 1,140,000 53,705,400
--------------
65,749,600
----------------------------------------------------------------------
Household Products -- 1.0%
Energizer Holdings, Inc. (b)(e) 390,000 37,900,200
The Procter & Gamble Co. 200,000 12,862,000
--------------
50,762,200
----------------------------------------------------------------------
Total Consumer Staples 237,719,700
===============================================================================
Energy -- 15.3%
Energy Equipment &
Services -- 0.1%
Tidewater, Inc. (e) 80,000 5,056,800
----------------------------------------------------------------------
Oil, Gas & Consumable
Fuels -- 15.2%
Chevron Corp. 2,000,000 155,580,000
Exxon Mobil Corp. 3,980,000 315,932,400
Frontier Oil Corp. (e) 1,380,000 48,755,400
Marathon Oil Corp. (e) 710,000 72,100,500
Overseas Shipholding Group, Inc. 150,000 10,620,000
Tesoro Corp. 500,000 60,600,000
Valero Energy Corp. 1,090,000 76,550,700
--------------
740,139,000
----------------------------------------------------------------------
Total Energy 745,195,800
===============================================================================
Financials -- 24.7%
Capital Markets -- 5.8%
The Bear Stearns Cos., Inc. (e) 330,000 51,381,000
The Goldman Sachs Group, Inc. (e) 290,000 63,396,900
Janus Capital Group, Inc. 190,000 4,753,800
Lehman Brothers Holdings, Inc. (e) 880,000 66,246,400
Morgan Stanley 1,190,000 99,971,900
--------------
285,750,000
----------------------------------------------------------------------
Diversified Financial Services -- 8.8%
Bank of America Corp. 1,160,000 59,044,000
Citigroup, Inc. 3,780,000 202,683,600
JPMorgan Chase & Co. 3,210,000 167,241,000
--------------
428,968,600
----------------------------------------------------------------------
Insurance -- 9.2%
AMBAC Financial Group, Inc. (e) 520,000 47,736,000
Alleghany Corp. (b)(e) 6,000 2,146,800
The Allstate Corp. (e) 1,100,000 68,552,000
American Financial Group, Inc. 540,000 19,045,800
American International Group, Inc. 10,000 699,100
CNA Financial Corp. (e) 440,000 20,534,800
Chubb Corp. 354,500 19,082,735
The Hanover Insurance Group, Inc. 260,000 11,949,600
Markel Corp. (b) 10,000 4,589,100
MetLife, Inc. 680,000 44,676,000
Nationwide Financial Services, Inc.
Class A (e) 290,000 16,567,700
Prudential Financial, Inc. (e) 750,000 71,250,000
Safeco Corp. 710,000 47,385,400
The Travelers Cos., Inc. 1,380,000 74,658,000
--------------
448,873,035
----------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.9%
The PMI Group, Inc. (e) 920,000 44,592,400
Total Financials 1,208,184,035
===============================================================================
Health Care -- 11.9%
Biotechnology -- 1.0%
Biogen Idec, Inc. (b) 1,050,000 49,570,500
----------------------------------------------------------------------
Health Care Providers &
Services -- 7.8%
Aetna, Inc. 1,250,000 58,600,000
AmerisourceBergen Corp. (e) 1,070,000 53,489,300
Cigna Corp. 380,000 59,124,200
Humana, Inc. (b) 360,000 22,766,400
McKesson Corp. (e) 890,000 52,358,700
Medco Health Solutions, Inc. (b) 730,000 56,954,600
Service Corp. International 670,000 8,140,500
WellPoint, Inc. (b) 850,000 67,124,500
--------------
378,558,200
----------------------------------------------------------------------
Pharmaceuticals -- 3.1%
King Pharmaceuticals, Inc. (b)(e) 1,010,000 20,654,500
Merck & Co., Inc. 1,647,100 84,726,824
Pfizer, Inc. 1,697,100 44,905,266
--------------
150,286,590
----------------------------------------------------------------------
Total Health Care 578,415,290
===============================================================================
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 51
Schedule of Investments (continued) Master Large Cap Value Portfolio
Shares
Sector Industry Common Stocks Held Value
===============================================================================
Industrials -- 9.4%
Aerospace & Defense -- 3.9%
Honeywell International, Inc. 1,220,000 $ 66,099,600
L-3 Communications Holdings, Inc. 190,000 17,086,700
Lockheed Martin Corp. 23,000 2,211,220
Northrop Grumman Corp. 670,000 49,338,800
Raytheon Co. 1,070,000 57,287,800
--------------
192,024,120
----------------------------------------------------------------------
Airlines -- 1.0%
AMR Corp. (b)(e) 1,900,000 49,571,000
----------------------------------------------------------------------
Commercial Services &
Supplies -- 1.6%
Manpower, Inc. 500,000 40,125,000
RR Donnelley & Sons Co. (e) 1,000,000 40,200,000
--------------
80,325,000
----------------------------------------------------------------------
Construction & Engineering -- 0.4%
Quanta Services, Inc. (b) 690,000 18,968,100
----------------------------------------------------------------------
Industrial Conglomerates -- 0.7%
General Electric Co. 880,000 32,436,800
----------------------------------------------------------------------
Machinery -- 1.8%
Cummins, Inc. (e) 520,000 47,923,200
SPX Corp. (e) 560,000 39,692,800
--------------
87,616,000
----------------------------------------------------------------------
Total Industrials 460,941,020
===============================================================================
Information Technology -- 13.3%
Computers & Peripherals -- 3.8%
EMC Corp. (b) 380,000 5,768,400
Hewlett-Packard Co. 1,710,000 72,059,400
International Business Machines Corp. 540,000 55,193,400
Lexmark International, Inc. Class A (b)(e) 730,000 39,785,000
NCR Corp. (b) 300,000 15,120,000
--------------
187,926,200
----------------------------------------------------------------------
Electronic Equipment &
Instruments -- 1.1%
Avnet, Inc. (b)(e) 1,290,000 52,761,000
----------------------------------------------------------------------
IT Services -- 1.4%
Convergys Corp. (b) 610,000 15,408,600
Electronic Data Systems Corp. 1,820,000 53,216,800
--------------
68,625,400
----------------------------------------------------------------------
Office Electronics -- 1.3%
Xerox Corp. (b) 3,310,000 61,235,000
----------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 1.3%
Integrated Device Technology, Inc. (b) 900,000 13,482,000
Novellus Systems, Inc. (b)(e) 1,590,000 51,468,300
--------------
64,950,300
----------------------------------------------------------------------
Software -- 4.4%
BEA Systems, Inc. (b) 2,040,000 24,051,600
BMC Software, Inc. (b)(e) 1,050,000 33,988,500
Cadence Design Systems, Inc. (b) 2,190,000 48,618,000
Compuware Corp. (b) 1,980,000 19,542,600
McAfee, Inc. (b) 1,500,000 48,735,000
Sybase, Inc. (b)(e) 640,000 15,481,600
Synopsys, Inc. (b) 920,000 25,447,200
--------------
215,864,500
----------------------------------------------------------------------
Total Information Technology 651,362,400
===============================================================================
Materials -- 5.7%
Chemicals -- 3.1%
Albemarle Corp. 780,000 33,111,000
Cabot Corp. (e) 180,000 8,154,000
E.I. du Pont de Nemours & Co. 360,000 17,701,200
FMC Corp. 260,000 20,001,800
International Flavors & Fragrances, Inc. 380,000 18,494,600
Lubrizol Corp. (e) 52,800 3,164,832
Lyondell Chemical Co. (e) 1,680,000 52,281,600
--------------
152,909,032
----------------------------------------------------------------------
Containers & Packaging -- 0.2%
Sealed Air Corp. 300,000 9,870,000
----------------------------------------------------------------------
Metals & Mining -- 1.2%
Nucor Corp. (e) 890,000 56,479,400
----------------------------------------------------------------------
Paper & Forest Products -- 1.2%
International Paper Co. (e) 1,500,000 56,580,000
----------------------------------------------------------------------
Total Materials 275,838,432
===============================================================================
Telecommunication Services -- 2.4%
Diversified Telecommunication
Services -- 2.4%
AT&T Inc. 1,710,000 66,211,200
Qwest Communications
International Inc. (b)(e) 5,890,000 52,303,200
----------------------------------------------------------------------
Total Telecommunication Services 118,514,400
===============================================================================
Utilities -- 1.4%
Multi-Utilities -- 1.4%
CMS Energy Corp. (e) 1,980,000 36,669,600
NiSource, Inc. 1,320,000 32,458,800
----------------------------------------------------------------------
Total Utilities 69,128,400
----------------------------------------------------------------------
Total Common Stocks
(Cost -- $3,993,062,598) -- 99.9% 4,877,282,217
===============================================================================
===============================================================================
Short-Term Beneficial
Securities Interest
===============================================================================
BlackRock Liquidity Series, LLC
Cash Sweep Series, 5.26% (a)(c) $ 75,432,924 75,432,924
BlackRock Liquidity Series, LLC
Money Market Series,
5.33% (a)(c)(d) 863,794,434 863,794,434
----------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $939,227,358) -- 19.2% 939,227,358
===============================================================================
Total Investments
(Cost -- $4,932,289,956*) -- 119.1% 5,816,509,575
Liabilities in Excess of Other Assets -- (19.1%) (931,971,053)
--------------
Net Assets -- 100.0% $4,884,538,522
==============
52 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ....................................... $ 4,943,097,806
===============
Gross unrealized appreciation ........................ $ 893,320,776
Gross unrealized depreciation ........................ (19,909,007)
---------------
Net unrealized appreciation .......................... $ 873,411,769
===============
(a) Investments in companies considered to be an affiliate of the Portfolio,
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 $ 30,333,748 $ 266,659
BlackRock Liquidity Series, LLC
Money Market Series $288,596,534 $ 302,602
--------------------------------------------------------------------------
(b) Non-income producing security.
(c) Represents the current yield as of April 30, 2007.
(d) Security was purchased with the cash proceeds from securities loans.
(e) Security, or a portion of security, is on loan.
o For Portfolio compliance purposes, the Portfolio's sector and industry
classifications refer to any one or more of the sector and industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by Portfolio management. This
definition may not apply for purposes of this report, which may combine
sector and industry sub-classifications for reporting ease. Sectors and
industries are shown as a percent of net assets.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 53
Statements of Assets and Liabilities Master Large Cap Series Trust
Master Large Master Large Master Large
Cap Core Cap Growth Cap Value
As of April 30, 2007 (Unaudited) Portfolio Portfolio Portfolio
=========================================================================================================================
Assets
- -------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value*+ .... $4,378,868,538 $ 999,633,161 $4,877,282,217
Investments in affiliated securities, at value** ...... 799,478,410 137,669,676 939,227,358
Receivables:
Securities sold ................................... 16,001,101 3,484,521 18,616,450
Contributions ..................................... 13,128,826 3,961,228 14,173,707
Dividends ......................................... 1,399,416 186,553 2,376,282
Securities lending ................................ 172,562 31,617 80,709
Interest from affiliates .......................... 2,360 -- --
Prepaid expenses and other assets ..................... 58,616 19,468 45,046
--------------------------------------------------
Total assets .......................................... 5,209,109,829 1,144,986,224 5,851,801,769
--------------------------------------------------
=========================================================================================================================
Liabilities
- -------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned, at value ............. 799,478,410 134,891,850 863,794,434
Bank overdraft ........................................ 127,015 -- 12,655
Payables:
Securities purchased .............................. 16,482,128 6,403,150 94,086,063
Withdrawals ....................................... 13,489,472 1,730,568 7,261,742
Investment adviser ................................ 1,639,639 398,653 1,860,266
Other affiliates .................................. 41,713 7,798 37,079
Accrued expenses and other liabilities ................ 300,148 138,405 211,008
--------------------------------------------------
Total liabilities ..................................... 831,558,525 143,570,424 967,263,247
--------------------------------------------------
=========================================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Net assets ............................................ $4,377,551,304 $1,001,415,800 $4,884,538,522
==================================================
=========================================================================================================================
Net Assets Consist of
- -------------------------------------------------------------------------------------------------------------------------
Investors' capital .................................... $3,559,198,976 $ 832,452,619 $4,000,318,903
Unrealized appreciation -- net ........................ 818,352,328 168,963,181 884,219,619
--------------------------------------------------
Net Assets ............................................ $4,377,551,304 $1,001,415,800 $4,884,538,522
==================================================
* Identified cost for unaffiliated securities ....... $3,560,516,210 $ 830,669,980 $3,993,062,598
==================================================
** Identified cost for affiliated securities ......... $ 799,478,410 $ 137,669,676 $ 939,227,358
==================================================
+ Securities loaned, at value ....................... $ 767,285,481 $ 130,286,111 $ 834,561,938
==================================================
See Notes to Financial Statements.
54 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Statements of Operations Master Large Cap Series Trust
Master Large Master Large Master Large
Cap Core Cap Growth Cap Value
For the Six Months Ended April 30, 2007 (Unaudited) Portfolio Portfolio Portfolio
=========================================================================================================================
Investment Income
- -------------------------------------------------------------------------------------------------------------------------
Dividends ............................................. $ 25,306,109 $ 3,872,092 $ 33,835,386
Securities lending -- net ............................. 429,213 63,749 302,602
Interest from affiliates .............................. 42,714 62,426 266,659
--------------------------------------------------
Total income .......................................... 25,778,036 3,998,267 34,404,647
--------------------------------------------------
=========================================================================================================================
Expenses
- -------------------------------------------------------------------------------------------------------------------------
Investment advisory fees .............................. 9,392,454 2,227,035 10,345,447
Accounting services ................................... 298,971 123,436 289,929
Custodian fees ........................................ 128,991 64,535 141,792
Trustees' fees and expenses ........................... 50,322 15,062 47,561
Professional fees ..................................... 34,426 18,348 23,440
Printing and shareholder reports ...................... 651 136 367
Pricing fees .......................................... 500 493 472
Other ................................................. 30,865 8,470 20,818
--------------------------------------------------
Total expenses ........................................ 9,937,180 2,457,515 10,869,826
--------------------------------------------------
Investment income -- net .............................. 15,840,856 1,540,752 23,534,821
--------------------------------------------------
=========================================================================================================================
Realized & Unrealized Gain -- Net
- -------------------------------------------------------------------------------------------------------------------------
Realized gain on investments -- net ................... 200,873,842 25,459,019 106,173,538
Change in unrealized appreciation on investments -- net 164,770,531 66,002,658 315,237,289
--------------------------------------------------
Total realized and unrealized gain -- net ............. 365,644,373 91,461,677 421,410,827
--------------------------------------------------
Net Increase in Net Assets Resulting from Operations .. $ 381,485,229 $ 93,002,429 $ 444,945,648
==================================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 55
Statements of Changes in Net Assets Master Large Cap Series Trust
Master Large Cap Core Portfolio
-----------------------------------
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
=======================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................... $ 15,840,856 $ 19,476,807
Realized gain -- net ....................................... 200,873,842 195,731,487
Change in unrealized appreciation -- net ................... 164,770,531 289,376,493
-----------------------------------
Net increase in net assets resulting from operations ....... 381,485,229 504,584,787
-----------------------------------
=======================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ................................ 647,217,166 1,448,673,363
Fair value of withdrawals .................................. (527,789,881) (743,318,106)
-----------------------------------
Net increase in net assets derived from capital transactions 119,427,285 705,355,257
-----------------------------------
=======================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------
Total increase in net assets ............................... 500,912,514 1,209,940,044
Beginning of period ........................................ 3,876,638,790 2,666,698,746
-----------------------------------
End of period .............................................. $ 4,377,551,304 $ 3,876,638,790
===================================
See Notes to Financial Statements.
Statements of Changes in Net Assets Master Large Cap Series Trust
Master Large Cap Growth
-----------------------------------
Portfolio
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
=======================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................... $ 1,540,752 $ 1,639,313
Realized gain -- net ....................................... 25,459,019 24,740,475
Change in unrealized appreciation -- net ................... 66,002,658 44,967,618
-----------------------------------
Net increase in net assets resulting from operations ....... 93,002,429 71,347,406
-----------------------------------
=======================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ................................ 272,811,385 416,035,279
Fair value of withdrawals .................................. (149,774,815) (191,404,006)
-----------------------------------
Net increase in net assets derived from capital transactions 123,036,570 224,631,273
-----------------------------------
=======================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------
Total increase in net assets ............................... 216,038,999 295,978,679
Beginning of period ........................................ 785,376,801 489,398,122
-----------------------------------
End of period .............................................. $ 1,001,415,800 $ 785,376,801
===================================
See Notes to Financial Statements.
56 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Statements of Changes in Net Assets Master Large Cap Series Trust
Master Large Cap Value Portfolio
-----------------------------------
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
=======================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................... $ 23,534,821 $ 17,996,957
Realized gain -- net ....................................... 106,173,538 116,615,372
Change in unrealized appreciation -- net ................... 315,237,289 276,256,898
-----------------------------------
Net increase in net assets resulting from operations ....... 444,945,648 410,869,227
-----------------------------------
=======================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ................................ 1,049,559,598 2,669,357,535
Fair value of withdrawals .................................. (537,892,428) (688,289,120)
-----------------------------------
Net increase in net assets derived from capital transactions 511,667,170 1,981,068,415
-----------------------------------
=======================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------
Total increase in net assets ............................... 956,612,818 2,391,937,642
Beginning of period ........................................ 3,927,925,704 1,535,988,062
-----------------------------------
End of period .............................................. $ 4,884,538,522 $ 3,927,925,704
===================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 57
Financial Highlights Master Large Cap Series Trust
Master Large Cap Core Portfolio
---------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following ratios have been derived from 2007 -------------------------------------------------------------
information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Total Investment Return
- ----------------------------------------------------------------------------------------------------------------------------------
Total investment return ................ 9.64%+ 17.32% 18.35% 9.61% 25.11% (8.13%)
===========================================================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses ............................... .49%* .49% .51% .52% .54% .57%
===========================================================================
Investment income -- net ............... .78%* .58% .72% .57% .48% .83%
===========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $4,377,551 $3,876,639 $2,666,699 $1,831,300 $1,454,109 $ 873,704
===========================================================================
Portfolio turnover ..................... 36.05% 87.67% 93.95% 135.48% 138.73% 150.18%
===========================================================================
* Annualized.
+ Aggregate total investment return.
See Notes to Financial Statements.
Financial Highlights Master Large Cap Series Trust
Master Large Cap Growth Portfolio
---------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following ratios have been derived from 2007 -------------------------------------------------------------
information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Total Investment Return
- ----------------------------------------------------------------------------------------------------------------------------------
Total investment return ................ 10.75%+ 14.05% 12.47% 5.42% 25.01% (13.56%)
===========================================================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses ............................... .55%* .56% .57% .59% .61% .67%
===========================================================================
Investment income -- net ............... .35%* .26% .33% .09% .04% (.01%)
===========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,001,416 $ 785,377 $ 489,398 $ 344,400 $ 250,166 $ 185,676
===========================================================================
Portfolio turnover ..................... 39.26% 116.77% 131.79% 164.94% 178.11% 177.46%
===========================================================================
* Annualized.
+ Aggregate total investment return.
See Notes to Financial Statements.
58 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Financial Highlights Master Large Cap Series Trust
Master Large Cap Value Portfolio
---------------------------------------------------------------------------
For the Six
Months Ended
April 30, For the Year Ended October 31,
The following ratios have been derived from 2007 -------------------------------------------------------------
information provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Total Investment Return
- ----------------------------------------------------------------------------------------------------------------------------------
Total investment return ................ 10.71%+ 18.48% 21.93% 14.57% 27.05% (3.40%)
===========================================================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses ............................... .51%* .53% .55% .56% .57% .60%
===========================================================================
Investment income -- net ............... 1.10%* .73% .80% .93% .97% 1.17%
===========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $4,884,539 $3,927,926 $1,535,988 $ 810,489 $ 515,257 $ 386,918
===========================================================================
Portfolio turnover ..................... 27.50% 70.86% 94.95% 127.59% 157.04% 136.92%
===========================================================================
* Annualized.
+ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 59
Notes to Financial Statements (Unaudited) Master Large Cap Series Trust
1. Significant Accounting Policies:
Master Large Cap Core Portfolio, Master Large Cap Growth Portfolio and Master
Large Cap Value Portfolio (the "Portfolios" or individually as the "Portfolio")
constitute the Master Large Cap Series Trust (the "Trust"). The Trust is
registered under the Investment Company Act of 1940, as amended, and is
organized as a Delaware statutory trust. The Declaration of Trust permits the
Trustees to issue nontransferable interests in the Portfolios, subject to
certain limitations. The Portfolios' 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 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 following is a summary of significant accounting policies
followed by the Portfolios.
(a) Valuation of investments -- Equity securities held by each Portfolio 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 Trustees of the Trust.
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 Trustees of the Trust. 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
Portfolios 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. Each Portfolio
employs pricing services to provide certain securities prices for the Portfolio.
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 Trustees of the Trust, including valuations furnished by the
pricing services retained by each Portfolio, which may use a matrix system for
valuations. The procedures of a pricing service and its valuations are reviewed
by the officers of the Trust under the general supervision of the Trust's Board
of Trustees. Such valuations and procedures will be reviewed periodically by the
Board of Trustees of the Trust.
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 assets of each Portfolio 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 each Portfolio's net assets. If events (for example, a company announcement,
market volatility or a natural disaster) occur during such periods that are
expected to materially affect the value of such securities, those securities
will be valued at their fair value as determined in good faith by the Trust's
Board of Trustees 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 Trust's Board of Trustees.
(b) Derivative financial instruments -- Each Portfolio may engage in various
portfolio investment strategies both to increase the return of the Portfolio 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.
o Financial futures contracts -- Each Portfolio may purchase or sell
financial futures contracts and options on
60 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Notes to Financial Statements (continued) Master Large Cap Series Trust
such financial futures contracts. Financial futures contracts are
contracts for delayed delivery of securities at a specific date and at a
specific price or yield. Upon entering into a contract, the Portfolio
deposits, and maintains as collateral, such initial margin as required by
the exchange on which the transaction is effected. Pursuant to the
contract, the Portfolio agrees to receive from or pay to the broker an
amount of cash equal to the daily fluctuation in value of the contract.
Such receipts or payments are known as variation margin and are recorded
by the Portfolio as unrealized gains or losses. When the contract is
closed, the Portfolio records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed.
o Options -- Each Portfolio may purchase and write call and put options.
When the Portfolio writes an option, an amount equal to the premium
received by the Portfolio is reflected as an asset and an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current market 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 Portfolio enters into a
closing transaction), the Portfolio realizes a gain or loss on the option
to the extent of the premiums received or paid (or a gain or loss to the
extent that the cost of the closing transaction exceeds the premium paid
or received).
Written and purchased options are non-income producing investments.
(c) Income taxes -- Master Large Cap Core Portfolio and Master Large Cap Value
Portfolio are classified as partnerships for federal income tax purposes. Master
Large Cap Growth Portfolio is considered as a "pass-through" entity for federal
income tax purposes. As such, each investor in the Portfolio is treated as owner
of its proportionate share of the net assets, income, expenses and realized and
unrealized gains and losses of the Portfolio. Therefore, no federal income tax
provision is required. It is intended that the Portfolio's assets will be
managed so an investor in the Portfolio can satisfy the requirements of
Subchapter M of the Internal Revenue Code.
(d) Security transactions and investment income -- Security transactions are
accounted for on the date the securities are purchased or sold (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 Portfolio has determined the ex-dividend date.
Interest income is recognized on the accrual basis.
(e) Securities lending -- Each Portfolio 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 Portfolio and any additional required collateral is delivered to the
Portfolio on the next business day. Where the Portfolio receives securities as
collateral for the loaned securities, it receives a fee from the borrower. The
Portfolio typically receives the income on the loaned securities, but does not
receive the income on the collateral. Where the Portfolio 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 Portfolio 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 Portfolio
could experience delays and costs in gaining access to the collateral. The
Portfolio 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.
(f) Bank overdraft
Master Large Cap Core Portfolio
The Portfolio recorded a bank overdraft, which resulted from management
estimates of available cash.
Master Large Cap Value Portfolio
The Portfolio recorded a bank overdraft, which resulted from management
estimates of available cash.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 61
Notes to Financial Statements (continued) Master Large Cap Series Trust
(g) Recent accounting pronouncements -- In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109."
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 mutual funds, before being measured
and recognized in the financial statements. Adoption of FIN 48 is required for
the last net asset value calculation in the first required financial statement
reporting period for fiscal years beginning after December 15, 2006. The impact
on the Portfolios' financial statements, if any, is currently being assessed.
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. At this time, management is evaluating the implications of FAS 157
and its impact on the Portfolios' financial statements, if any, has not been
determined.
In addition, in February 2007, FASB issued "Statement of Financial Accounting
Standards No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which 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 Portfolios' financial
statements, if any, has not been determined.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Investment Advisory Agreement between the Trust, on behalf of each
Portfolio, and the Manager became effective on September 29, 2006. Prior to
September 29, 2006, Fund Asset Management, L.P. ("FAM") was the Portfolio's
manager. The general partner of FAM is Princeton Services, Inc. ("PSI"), an
indirect, wholly owned subsidiary of Merrill Lynch & Co., Inc. ("Merrill
Lynch"), which is the limited partner. Merrill Lynch and The PNC Financial
Services Group, Inc. are the principal owners of BlackRock, Inc.
The Manager is responsible for the management of each Portfolio's investments
and provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Portfolio. Master Large Cap Core
Portfolio pays a monthly fee at an annual rate of .50% of the average daily net
assets not exceeding $1 billion, .45% of average daily net assets in excess of
$1 billion but not exceeding $5 billion and .40% of average daily net assets in
excess of $5 billion; Master Large Cap Growth Portfolio pays a monthly fee at an
annual rate of .50% of the average daily net assets not exceeding $5 billion and
..45% of average daily net assets in excess of $5 billion; and Master Large Cap
Value Portfolio pays a monthly fee at an annual rate of .50% of the average
daily net assets not exceeding $3 billion and .45% of average daily net assets
in excess of $3 billion.
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 to each Portfolio a monthly
fee at an annual rate equal to a percentage of the management fee paid by the
Portfolio to the Manager.
The Portfolios have received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S"), a wholly owned subsidiary of Merrill
Lynch, or its affiliates. As of April 30, 2007, Master Large Cap Core Portfolio,
Master Large Cap Growth Portfolio and Master Large Cap Value Portfolio lent
securities with values of $275,443,584, $46,057,217 and $372,108,635,
respectively, to MLPF&S or its affiliates. Pursuant to that order, the
Portfolios have retained BIM as the securities lending agent for a fee based on
a share of the returns on
62 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Notes to Financial Statements (concluded) Master Large Cap Series Trust
investment of cash collateral. Prior to September 29, 2006, BIM was organized as
Merrill Lynch Investment Managers, LLC ("MLIM, LLC"), an affiliate of FAM, and
MLIM, LLC was the securities lending agent. BIM may, on behalf of the
Portfolios, invest cash collateral received by the Portfolios 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 April 30, 2007, BIM received $195,547, $30,132 and $136,926 in
securities lending agent fees for Master Large Cap Core Portfolio, Master Large
Cap Growth Portfolio and Master Large Cap Value Portfolio, respectively.
In addition, MLPF&S received $2,750 in commissions on the execution of portfolio
security transactions for the Master Large Cap Value Portfolio for the six
months ended April 30, 2007.
The Portfolios reimbursed the Manager for certain accounting services. The
reimbursements were as follows:
- --------------------------------------------------------------------------------
For the Six
Months Ended
April 30, 2007
- --------------------------------------------------------------------------------
Master Large Cap Core Portfolio ................................. $21,161
Master Large Cap Growth Portfolio ............................... $ 6,104
Master Large Cap Value Portfolio ................................ $28,159
- --------------------------------------------------------------------------------
Certain officers and/or trustees of the Trust are officers and/or directors of
BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended April 30, 2007 were as follows:
- --------------------------------------------------------------------------------
Total Purchases Total Sales
- --------------------------------------------------------------------------------
Master Large Cap
Core Portfolio ........................... $1,610,219,797 $1,473,584,141
Master Large Cap
Growth Portfolio ......................... $ 472,602,379 $ 349,621,917
Master Large Cap
Value Portfolio .......................... $1,708,677,248 $1,183,782,579
- --------------------------------------------------------------------------------
4. Short-Term Borrowings:
Each Portfolio, along with certain other funds managed by the Manager and its
affiliates, is party to a $500,000,000 credit agreement with a group of lenders.
The Portfolio may borrow under the credit agreement to fund shareholder
redemptions and for other lawful purposes other than for leverage. The Portfolio
may borrow up to the maximum amount allowable under the Portfolio's current
prospectus and statement of additional information, subject to various other
legal, regulatory or contractual limits. On November 22, 2006, the credit
agreement was renewed for one year under substantially the same terms. The
Portfolio pays a commitment fee of .06% per annum based on the Portfolio'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. None of the Portfolios borrowed under the credit agreement during the
six months ended April 30, 2007.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 63
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 non-public personal information. The following information is provided to
help you understand what personal information BlackRock collects, how we protect
that information and why in certain cases we share such information with select
parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you
from different sources, including the following: (i) information we receive from
you or, if applicable, your financial intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that may
be of interest to you. In addition, BlackRock restricts access to non-public
personal information about its Clients to those BlackRock employees with a
legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public
personal information of its Clients, including procedures relating to the proper
storage and disposal of such information.
Availability of Additional Information
Electronic copies of most financial reports and prospectuses are available on
the Funds' 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 Funds' 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 Funds 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.
64 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
Availability of Additional Information (concluded)
Availability of Proxy Voting Policies and Procedures
The Funds/Trusts have delegated proxy voting responsibilities to BlackRock and
its affiliates, subject to the general oversight of the Funds'/Trusts' Board of
Directors/Trustees. 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 Funds' voting securities were voted
(if any) by Funds'/Trusts' previous manager 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 Funds/Trusts file their complete schedules of portfolio holdings for the
first and third quarters of their fiscal year with the Commission on Form N-Q.
The Funds'/Trusts' 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 (800) SEC-0330. The
Funds'/Trusts' 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 portfolios.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock portfolios, 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 LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007 65
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 Global Technology 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 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.
66 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2007
These reports are transmitted to shareholders only. The reports are not
authorized for use as an offer of sale or a solicitation of an offer to buy
shares of the Funds unless accompanied or preceded by the Funds' current
prospectus. Past performance results shown in these reports should not be
considered a representation of future performance. Investment returns and
principal value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Statements and other information
herein are as dated and are subject to change.
BLACKROCK
#CAPSERIES-4/07
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 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 Large Cap Series Funds, Inc. and BlackRock Large Cap Series Trust
By: /s/ Robert C. Doll, Jr.
--------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock Large Cap Series Funds, Inc. and BlackRock Large Cap Series Trust
Date: June 19, 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 of
BlackRock Large Cap Series Funds, Inc. and BlackRock Large Cap Series Trust
Date: June 19, 2007
By: /s/ Donald C. Burke
--------------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock Large Cap Series Funds, Inc. and BlackRock Large Cap Series Trust
Date: June 19, 2007