UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09637
811-09739
Name of Fund: BlackRock Large Cap Series Funds, Inc.
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
Master Large Cap Series LLC
Master Large Cap Core Portfolio
Master Large Cap Growth Portfolio
Master Large Cap Value Portfolio
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock Large Cap Series Funds, Inc. and Master Large Cap
Series LLC, 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: 10/31/2007
Date of reporting period: 11/01/2006 - 10/31/2007
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock BLACKROCK
Large Cap Series Funds, Inc.
ANNUAL REPORTS | OCTOBER 31, 2007
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
================================================================================
Page
- --------------------------------------------------------------------------------
A Letter to Shareholders ................................................. 3
Annual Report:
Fund Summaries ........................................................... 4
About Fund Performance ................................................... 10
Disclosure of Expenses ................................................... 10
Fund Financial Statements:
Statements of Assets and Liabilities .................................. 12
Statements of Operations .............................................. 14
Statements of Changes in Net Assets ................................... 15
Fund Financial Highlights ................................................ 18
Fund Notes to Financial Statements ....................................... 29
Fund Report of Independent Registered Public Accounting Firm ............. 36
Important Tax Information ................................................ 37
Proxy Results ............................................................ 38
Master Portfolio Information ............................................. 39
Master Financial Statements:
Schedules of Investments .............................................. 41
Statements of Assets and Liabilities .................................. 50
Statements of Operations .............................................. 51
Statements of Changes in Net Assets ................................... 52
Master Financial Highlights .............................................. 54
Master Notes to Financial Statements ..................................... 55
Master Report of Independent Registered Public Accounting Firm ........... 58
Officers and Directors ................................................... 59
BlackRock Fund Information ............................................... 61
Mutual Fund Family ....................................................... 63
2 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
A Letter to Shareholders
Dear Shareholder
The October reporting period was fairly tumultuous for financial markets, but
culminated in positive performance for most major benchmarks:
Total Returns as of October 31, 2007 6-month 12-month
================================================================================================================
U.S. equities (S&P 500 Index) +5.49% +14.56%
- ----------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) +2.25% + 9.27%
- ----------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +8.19% +24.91%
- ----------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +2.68% + 5.38%
- ----------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.30% + 2.91%
- ----------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -0.07% + 6.89%
- ----------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
Subprime mortgage woes dominated headlines for much of 2007, but intensified in
the summer and fall, spawning a widespread liquidity and credit crisis with
ramifications across global markets. The Federal Reserve Board (the "Fed") and
other countries' central banks stepped in to inject liquidity into the markets
and bolster investor confidence. The Fed cut the federal funds rate by 0.50% in
September and another 0.25% on the final day of the reporting period, bringing
its target rate to 4.50%. In taking action, the central bankers, who had long
deemed themselves inflation fighters, were seeking to stem the fallout from the
credit crunch and forestall a wider economic unraveling. By period-end, the Fed
had cited the risks between slower economic growth and faster inflation as
equally balanced.
Amid the volatility throughout the past year, equity markets have displayed
surprising resilience. Most recently, the credit turmoil dampened corporate
merger-and-acquisition (M&A) activity, a key source of strength for equity
markets. Still, market fundamentals have held firm, dividend payouts and share
buybacks have continued to grow, and valuations remain attractive. These
tailwinds generally have prevailed over the headwinds created by the slowing
U.S. economy, troubled housing market and, recently, a more difficult corporate
earnings backdrop. International markets fared even better than U.S. equities,
benefiting from robust M&A activity and generally stronger economies.
In fixed income markets, mixed economic signals and the credit woes resulted in
a flight to quality. At the height of the uncertainty, investors shunned bonds
associated with the housing and credit markets in favor of higher-quality
Treasury issues. The yield on 10-year Treasury issues, which touched 5.30% in
June (its highest level in five years), fell to 4.48% by period-end, while
prices correspondingly rose. The tax-exempt bond market has been challenged by a
combination of record-setting supply year-to-date, economic uncertainty and
concerns around the credit worthiness of bond insurers. This has brought
municipal bond prices to relatively attractive levels and, as such, demand
generally has remained firm.
As you navigate market volatility, we encourage you to review your investment
goals with your financial professional and to make portfolio changes, as needed.
For more market insight and commentary from BlackRock investment professionals,
we invite you to visit www.blackrock.com/funds. As always, 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.
Vice Chairman, BlackRock, Inc.
3
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary BlackRock Large Cap Core Fund
Portfolio Management Commentary
How did the Fund perform?
o The Fund generated strong absolute returns for the fiscal year, but
slightly underperformed its benchmark, the Russell 1000 Index.
What factors influenced performance?
o At a very high level, strong performance generated by asset allocation
decisions was offset by disappointing stock selection results.
o The Fund's favorable asset allocation decisions, through its investment in
Master Large Cap Core Portfolio, included overweight positions in energy
and information technology, and an underweight in financials. The Fund's
weighting in financials is significantly below that of the benchmark,
particularly in commercial banks and mortgage companies.
o Stock selection within the health care sector enhanced performance,
particularly in biotechnology companies and service providers. Stock
selection within the industrials and materials sectors also contributed
positively to returns. The largest individual contributors to performance
were Southern Copper Corp., Tesoro Corp., EMC Corp., The Goodyear Tire &
Rubber Co. and Frontier Oil Corp.
o Stock selection in energy and information technology (IT) offset the
aforementioned gains stemming from allocation decisions in these sectors.
Within energy, recent underperformance is attributed largely to the
refiners, which came under pressure in the third quarter of 2007 as
margins were expected to compress. However, we believed that refiners were
oversold and added to some of our positions on price weakness. Within
technology, our lack of ownership of a few outperforming companies and
stock-specific disappointments in the semiconductor, software and IT
services areas hurt performance. The largest individual detractors were
Apple, Lexmark International, Inc., BEA Systems, Inc., RadioShack Corp.
and Electronic Data Systems Corp.
o The Fund's overweight position and stock selection in consumer
discretionary proved negative for the period. Given ongoing concerns about
consumer spending, we shifted the cyclical bias of the Fund away from the
domestic consumer and toward more global, industrial-based companies.
Describe recent portfolio activity.
o During the period, we increased the Fund's exposure to information
technology and telecommunication services. Among our largest purchases
were American International Group, Inc., ConocoPhillips, UnitedHealth
Group, Inc., Valero Energy Corp. and Applied Materials, Inc.
o We reduced exposure to the consumer discretionary, energy, financials,
industrials, consumer staples and materials sectors. Our largest sales
included JPMorgan Chase & Co., Biogen Idec, Inc., Morgan Stanley, CSX and
Goldman Sachs Group, Inc.
Describe the Fund's positioning at period-end.
o Relative to its benchmark, the Fund ended the fiscal year overweight in
information technology, health care, consumer discretionary and energy,
and underweight in financials, consumer staples, utilities and
telecommunication services.
o In our view, stocks are now more susceptible to economic and earnings
disappointments than they were during the initial stages of the Federal
Reserve Board's easing cycle. However, we believe more monetary relief
should be in the pipeline, as economic conditions warrant further
stimulus. Importantly, we do not believe inflation stands in the way of
more rate cuts. As the economic data worsens, reflation should strengthen
as the dominant market force, setting the stage for higher valuations.
4 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
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
and Investor A Shares compared to growth of an investment in the Russell 1000
Index. Values are from December 22, 1999 to October 2007:
Institutional Investor A Russell 1000
Shares*+ Shares*+ Index++
12/22/99** $10,000 $9,475 $10,000
10/00 $11,770 $11,124 $10,250
10/01 $9,104 $8,587 $7,581
10/02 $8,314 $7,819 $6,474
10/03 $10,335 $9,696 $7,919
10/04 $11,285 $10,568 $8,658
10/05 $13,310 $12,429 $9,564
10/06 $15,561 $14,494 $11,097
10/07 $17,668 $16,411 $12,765
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
** Commencement of operations.
+ The Fund invests all of its assets in Master Large Cap Core Portfolio of
Master Large Cap Series LLC. 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. Russell 1000 is a registered trademark of the Frank Russell
Company.
Performance Summary for the Period Ended October 31, 2007
Average Annual Total Returns*
---------------------------------------------------------------------------------------
1 Year 5 Years Since Inception**
----------------------- ----------------------- -----------------------
6-Month w/o sales w/sales w/o sales w/sales w/o sales w/sales
Total Returns charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ............. +3.74% +13.55% -- +16.27% -- +7.51% --
Service ................... +3.61 +13.26 -- +15.98 -- +7.24 --
Investor A ................ +3.58 +13.23 + 7.28% +15.98 +14.74% +7.24 +6.51%
Investor B ................ +3.15 +12.30 + 7.80 +15.08 +14.85 +6.40 +6.40
Investor C ................ +3.14 +12.40 +11.40 +15.08 +15.08 +6.41 +6.41
Class R ................... +3.36 +12.90 -- +15.78 -- +7.02 --
Russell 1000 Index ........ +5.44 +15.03 -- +14.54 -- +3.15 --
- ------------------------------------------------------------------------------------------------------------------------------------
* Assuming maximum sales charges. See "About Fund Performance" on page 10
for a detailed description of share classes, including any related sales
charges and fees.
** The Fund commenced operations on December 22, 1999.
Past performance is not indicative of future results.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 5
Fund Summary BlackRock Large Cap Growth Fund
Portfolio Management Commentary
How did the Fund perform?
o The Fund generated strong absolute returns for the fiscal year, but
modestly underperformed its benchmark, the Russell 1000 Growth Index.
What factors influenced performance?
o At a very high level, the Fund's favorable stock selection, through its
investment in Master Large Cap Growth Portfolio, in health care and
industrials provided the most significant positive contribution to
performance. Disappointing stock selection in the information technology
and consumer discretionary sectors accounted for the majority of the
underperformance.
o Stock selection and an underweighting of the consumer staples sector
benefited performance. Stock selection also was strong in health care,
where we took profits in service companies. We view these companies as
trading vehicles given the countervailing influences of positive
fundamentals and negative political pressures. Stock selection within the
industrials sector, particularly among machinery companies, also enhanced
Fund returns. The largest individual contributors to performance were
Southern Copper Corp., Cisco Systems, Inc., Juniper Networks, Inc.,
Raytheon Co. and Biogen Idec, Inc.
o Stock selection in the energy sector (particularly in oil equipment and
services companies) and in the consumer discretionary sector (notably in
specialty and multi-line retailers) detracted from results. The
performance-enhancing overweight in information technology (IT) was offset
by poor stock selection within the sector as semiconductors, IT services,
software and computers & peripherals did not perform as anticipated. The
largest individual detractors included RadioShack Corp., Compuware Corp.,
CH Richard Ellis Group, Inc., Convergys Corp. and Electronic Data Systems
Corp.
o Within information technology, we increased our weightings in companies
with global exposure, where we believe there is significant upside
potential. Within industrials and materials, we own a number of large,
globally exposed companies benefiting from the commodity boom and general
demand strength from both developing and emerging markets outside the
United States.
Describe recent portfolio activity.
o Over the course of the year, we increased the Fund's exposure to health
care and information technology. Among our largest purchases were CA Inc.,
UnitedHealth Group, Inc., Dell, Inc., Valero Energy Corp. and RadioShack
Corp.
o We reduced exposure to the consumer discretionary, industrials, financials
and materials sectors. Our largest sales included Biogen Idec, Inc.,
Emdeon Corp., The Goldman Sachs Group, Inc., AMR Corp. and Continental
Airlines, Inc.
Describe the Fund's positioning at period-end.
o Relative to its benchmark, the Fund ended the fiscal year overweight in
information technology, consumer discretionary and materials, and
underweight in consumer staples, financials and utilities.
o In our view, stocks are now more susceptible to economic and earnings
disappointments than they were during the initial stages of the Federal
Reserve Board's easing cycle. However, we believe more monetary relief
should be in the pipeline, as economic conditions warrant further
stimulus. Importantly, we do not believe inflation stands in the way of
more rate cuts. As the economic data worsens, reflation should strengthen
as the dominant market force, setting the stage for higher valuations.
6 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
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
and Investor A Shares compared to growth of an investment in the Russell 1000
Growth Index. Values are from December 22, 1999 to October 2007:
Russell
Institutional Investor A 1000 Growth
Shares*+ Shares*+ Index++
12/22/99** $10,000 $9,475 $10,000
10/00 $11,350 $10,726 $9,610
10/01 $7,504 $7,081 $5,771
10/02 $6,443 $6,057 $4,639
10/03 $7,974 $7,479 $5,651
10/04 $8,364 $7,830 $5,842
10/05 $9,365 $8,740 $6,357
10/06 $10,636 $9,896 $7,046
10/07 $12,451 $11,559 $8,401
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
** Commencement of operations.
+ The Fund invests all of its assets in Master Large Cap Growth Portfolio of
Master Large Cap Series LLC. 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. Russell 1000 is a registered trademark of the Frank
Russell Company.
Performance Summary for the Period Ended October 31, 2007
Average Annual Total Returns*
---------------------------------------------------------------------------------------
1 Year 5 Years Since Inception**
----------------------- ----------------------- -----------------------
6-Month w/o sales w/sales w/o sales w/sales w/o sales w/sales
Total Returns charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ............ +5.89% +17.07% -- +14.08% -- +2.83% --
Service .................. +5.82 +16.89 -- +13.80 -- +2.57 --
Investor A ............... +5.74 +16.80 +10.67% +13.80 +12.58% +2.56 +1.86%
Investor B ............... +5.35 +15.78 +11.28 +12.92 +12.67 +1.77 +1.77
Investor C ............... +5.35 +15.79 +14.79 +12.90 +12.90 +1.76 +1.76
Class R .................. +5.55 +16.36 -- +13.61 -- +2.37 --
Russell 1000 Growth Index +9.97 +19.23 -- +12.61 -- -2.19 --
- ------------------------------------------------------------------------------------------------------------------------------------
* Assuming maximum sales charges. See "About Fund Performance" on page 10
for a detailed description of share classes, including any related sales
charges and fees.
** The Fund commenced operations on December 22, 1999.
Past performance is not indicative of future results.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 7
Fund Summary BlackRock Large Cap Value Fund
Portfolio Management Commentary
How did the Fund perform?
o The Fund delivered strong absolute performance for the fiscal year,
outperforming its benchmark, the Russell 1000 Value Index.
What factors influenced performance?
o The Fund's outperformance is attributed to both asset allocation and stock
selection decisions. The Fund benefited, through its investment in Master
Large Cap Value Portfolio, from its underweight position in financials and
overweight in industrials, and from good stock selection in financials,
health care and industrials.
o Within financials, the Fund is significantly underweight the benchmark,
particularly in commercial banks, which have lagged recently. Stock
selection among capital markets players and diversified financial services
firms contributed positively.
o Stock selection and an overweight position in the industrials sector
enhanced performance, thanks primarily to stock selection in the aerospace
& defense and machinery areas. Within health care, service providers and
biotechnology contributed positively to performance. The largest
individual contributors included Tesoro Corp., EMC Corp., SPX Corp.,
Biogen Idec, Inc. and Frontier Oil Corp.
o Partially offsetting these positives was the combination of stock
selection and an underweighting of the telecommunication services and
utilities sectors. Stock selection was negative in consumer staples and
information technology, and gains achieved from overweighting the energy
sector were offset by poor stock performance. The biggest individual
detractors included King Pharmaceuticals, Inc., ConocoPhillips, Lexmark
International, Inc., BEA Systems, Inc. and Occidental Petroleum Corp.
o Stock selection and an overweight position in consumer discretionary
hindered the Fund's relative results. Given ongoing concerns about
consumer spending, we shifted the cyclical bias of the portfolio away from
the domestic consumer and toward more global, industrial-based companies.
Describe recent portfolio activity.
o Over the course of the year, we increased the Fund's exposure to health
care, utilities and telecommunication services. Among our largest
purchases were ConocoPhillips, American International Group, Inc., General
Electric Co., Valero Energy Corp. and Deere & Co.
o We reduced exposure to the consumer discretionary, financials, energy and
consumer staples sectors. Our largest sales included Citigroup, Inc.,
Biogen Idec, Inc., Prudential Financials, Inc., Lehman Brothers Holdings,
Inc. and Merck & Co., Inc.
Describe the Fund's positioning at period-end.
o Relative to its benchmark, the Fund ended the fiscal year overweight in
information technology, health care, energy, industrials and materials,
and underweight in financials, utilities, telecommunication services,
consumer staples and consumer discretionary.
o In our view, stocks are now more susceptible to economic and earnings
disappointments than they were during the initial stages of the Federal
Reserve Board's easing cycle. However, we believe more monetary relief
should be in the pipeline, as economic conditions warrant further
stimulus. Importantly, we do not believe inflation stands in the way of
more rate cuts. As the economic data worsens, reflation should strengthen
as the dominant market force, setting the stage for higher valuations.
8 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
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
and Investor A Shares compared to growth of an investment in the Russell 1000
Value Index. Values are from December 22, 1999 to October 2007:
Russell
Institutional Investor A 1000 Value
Shares*+ Shares*+ Index++
12/22/99** $10,000 $9,475 $10,000
10/00 $11,640 $11,000 $10,809
10/01 $10,684 $10,073 $9,527
10/02 $10,224 $9,617 $8,573
10/03 $12,907 $12,112 $10,533
10/04 $14,730 $13,781 $12,161
10/05 $17,895 $16,702 $13,604
10/06 $21,128 $19,671 $16,523
10/07 $23,736 $22,039 $18,313
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
** Commencement of operations.
+ The Fund invests all of its assets in Master Large Cap Value Portfolio of
the Master Large Cap Series LLC. 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. Russell 1000 is a registered trademark
of the Frank Russell Company.
Performance Summary for the Period Ended October 31, 2007
Average Annual Total Returns*
---------------------------------------------------------------------------------------
1 Year 5 Years Since Inception**
----------------------- ----------------------- -----------------------
6-Month w/o sales w/sales w/o sales w/sales w/o sales w/sales
Total Returns charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ............. +1.66% +12.35% -- +18.35% -- +11.62% --
Service ................... +1.51 +12.01 -- +18.04 -- +11.34 --
Investor A ................ +1.44 +12.04 + 6.15% +18.04 +16.77% +11.34 +10.58%
Investor B ................ +1.05 +11.11 + 6.61 +17.13 +16.91 +10.48 +10.48
Investor C ................ +1.10 +11.14 +10.14 +17.13 +17.13 +10.49 +10.49
Class R ................... +1.28 +11.71 -- +17.86 -- +11.13 --
Russell 1000(R) Value Index +0.95 +10.83 -- +16.39 -- + 8.00 --
- ------------------------------------------------------------------------------------------------------------------------------------
* Assuming maximum sales charges. See "About Fund Performance" on page 10
for a detailed description of share classes, including any related sales
charges and fees.
** The Fund commenced operations on December 22, 1999.
Past performance is not indicative of future results.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 9
About Fund Performance BlackRock Large Cap Series Funds, Inc.
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. For BlackRock Large Cap Growth
Fund and BlackRock Large Cap Value Fund, 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.
For BlackRock Large Cap Core Fund, prior to September 24, 2007, Service
Share performance results are those of Institutional Shares (which have no
distribution or service fees) restated to reflect the Service Share fees.
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 to reflect 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/funds 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. Performance data does not
reflect this potential fee. Figures shown in each of the performance
tables on page 11 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.
Disclosure of Expenses BlackRock Large Cap Series Funds, Inc.
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 expense examples on page 11
(which are based on a hypothetical investment of $1,000 invested on May 1, 2007
and held through October 31, 2007) are 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 tables provide information about actual account values and actual expenses.
In order to estimate the expenses a shareholder paid during the period covered
by this report, shareholders can divide their account value by $1,000 and then
multiply the result by the number corresponding to their Fund and share class
under the heading entitled "Expenses Paid During the Period."
The tables also provide information about hypothetical account values and
hypothetical expenses based on the Funds' 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 tables are intended to highlight shareholders' ongoing
costs only and do not reflect any transactional expenses, such as sales charges,
redemption fees or exchange fees. Therefore, the hypothetical tables are 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.
10 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Disclosure of Expenses (concluded) BlackRock Large Cap Series Funds, Inc.
BlackRock Large Cap Core Fund Expense Example
Actual Hypothetical**
---------------------------------------------------- -----------------------------------------------------
Ending Ending
Beginning Account Value Expenses Paid Beginning Account Value Expenses Paid
Account Value+ Oct. 31, 2007 During the Period*++ Account Value+ Oct. 31, 2007 During the Period*++
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ........ $ 1,000 $ 1,037.40 $ 4.52 $ 1,000 $ 1,020.76 $ 4.48
Service .............. $ 1,000 $ 1,036.10 $ 1.30 $ 1,000 $ 1,004.32 $ 1.28
Investor A ........... $ 1,000 $ 1,035.80 $ 5.95 $ 1,000 $ 1,019.35 $ 5.90
Investor B ........... $ 1,000 $ 1,031.50 $ 10.09 $ 1,000 $ 1,015.27 $ 10.01
Investor C ........... $ 1,000 $ 1,031.40 $ 10.09 $ 1,000 $ 1,015.27 $ 10.01
Class R .............. $ 1,000 $ 1,033.60 $ 7.74 $ 1,000 $ 1,017.59 $ 7.68
- ------------------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.88% for Institutional, 1.14% for Service, 1.16% for
Investor A, 1.97% for Investor B, 1.97% for Investor C and 1.51% for Class
R), multiplied by the average account value over the period, multiplied by
184/365 for Institutional, Investor A, Investor B, Investor C and Class R
and 41/365 for Service (to reflect the periods 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.
+ May 1, 2007 for Institutional, Investor A, Investor B, Investor C and
Class R Shares and September 24, 2007 (commencement of operations) for
Service Shares.
++ The period represents the six months ended for Institutional, Investor A,
Investor B, Investor C and Class R Shares and from September 24, 2007
(commencement of operations) for Service Shares.
See "Disclosure of Expenses" on page 10 for further information on how
expenses were calculated.
BlackRock Large Cap Growth Fund Expense Example
Actual Hypothetical**
---------------------------------------------------- ----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
May 1, 2007 Oct. 31, 2007 During the Period* May 1, 2007 Oct. 31, 2007 During the Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ......... $ 1,000 $ 1,058.90 $ 4.98 $ 1,000 $ 1,020.37 $ 4.89
Service ............... $ 1,000 $ 1,058.20 $ 6.07 $ 1,000 $ 1,019.31 $ 5.96
Investor A ............ $ 1,000 $ 1,057.40 $ 6.69 $ 1,000 $ 1,018.71 $ 6.56
Investor B ............ $ 1,000 $ 1,053.50 $ 10.71 $ 1,000 $ 1,014.77 $ 10.51
Investor C ............ $ 1,000 $ 1,053.50 $ 10.66 $ 1,000 $ 1,014.83 $ 10.46
Class R ............... $ 1,000 $ 1,055.50 $ 8.39 $ 1,000 $ 1,017.04 $ 8.24
- ------------------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.96% for Institutional, 1.17% for Service, 1.29% for
Investor A, 2.07% for Investor B, 2.06% for Investor C and 1.62% for Class
R), multiplied by the average account value over the period, multiplied by
184/365 (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.
See "Disclosure of Expenses" on page 10 for further information on how
expenses were calculated.
BlackRock Large Cap Value Fund Expense Example
Actual Hypothetical**
---------------------------------------------------- ----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
May 1, 2007 Oct. 31, 2007 During the Period* May 1, 2007 Oct. 31, 2007 During the Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ......... $ 1,000 $ 1,016.60 $ 4.42 $ 1,000 $ 1,020.81 $ 4.43
Service ............... $ 1,000 $ 1,015.10 $ 5.54 $ 1,000 $ 1,019.71 $ 5.55
Investor A ............ $ 1,000 $ 1,014.40 $ 6.30 $ 1,000 $ 1,018.95 $ 6.31
Investor B ............ $ 1,000 $ 1,010.50 $ 9.98 $ 1,000 $ 1,015.27 $ 10.01
Investor C ............ $ 1,000 $ 1,011.00 $ 10.14 $ 1,000 $ 1,015.12 $ 10.16
Class R ............... $ 1,000 $ 1,012.80 $ 7.97 $ 1,000 $ 1,017.29 $ 7.98
- ------------------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.87% for Institutional, 1.09% for Service, 1.24% for
Investor A, 1.97% for Investor B, 2.00% for Investor C and 1.57% for Class
R), multiplied by the average account value over the period, multiplied by
184/365 (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.
See "Disclosure of Expenses" on page 10 for further information on how
expenses were calculated.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 11
Statements of Assets and Liabilities BlackRock Large Cap Series Funds, Inc.
BlackRock BlackRock BlackRock
Large Cap Large Cap Large Cap
As of October 31, 2007 Core Fund Growth Fund Value Fund
====================================================================================================================================
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Investment in Master Large Cap Core Portfolio, Master Large Cap Growth Portfolio
and Master Large Cap Value Portfolio (the "Portfolios"), respectively* ....... $5,486,963,863 $1,189,019,871 $5,312,347,223
Prepaid expenses and other assets .............................................. 17,531 25,971 65,124
------------------------------------------------
Total assets ................................................................... 5,486,981,394 1,189,045,842 5,312,412,347
------------------------------------------------
====================================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Payables:
Distributor ................................................................ 2,096,264 459,087 1,784,308
Administrator .............................................................. 1,221,315 248,211 1,124,737
Other affiliates ........................................................... 1,539,346 325,080 1,038,172
Accrued expenses and other liabilities ......................................... 566,482 85,901 758,993
------------------------------------------------
Total liabilities .............................................................. 5,423,407 1,118,279 4,706,210
------------------------------------------------
====================================================================================================================================
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets ..................................................................... $5,481,557,987 $1,187,927,563 $5,307,706,137
================================================
====================================================================================================================================
Net Assets Consist of
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed investment income -- net ......................................... $ -- $ -- $ 4,460,258
Undistributed realized capital gains -- net .................................... 72,451,950 15,353,101 323,935,971
Unrealized appreciation -- net ................................................. 927,645,686 186,509,054 707,606,515
------------------------------------------------
Total accumulated earnings -- net .............................................. 1,000,097,636 201,862,155 1,036,002,744
Institutional Shares of Common Stock, $.10 par value+ .......................... 10,496,564 2,966,797 6,334,422
Service Shares of Common Stock, $.10 par value++ ............................... 4,468 90,025 161,746
Investor A Shares of Common Stock, $.10 par value+++ ........................... 12,881,054 2,695,924 12,167,142
Investor B Shares of Common Stock, $.10 par value++++ .......................... 3,643,249 923,072 1,427,327
Investor C Shares of Common Stock, $.10 par value+++++ ......................... 10,712,391 2,452,105 4,952,099
Class R Shares of Common Stock, $.10 par value++++++ ........................... 1,161,222 810,934 1,059,880
Paid-in capital in excess of par ............................................... 4,442,561,403 976,126,551 4,245,600,777
------------------------------------------------
Net Assets ..................................................................... $5,481,557,987 $1,187,927,563 $5,307,706,137
================================================
12 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Statements of Assets and Liabilities (concluded)
BlackRock Large Cap Series Funds, Inc.
BlackRock BlackRock BlackRock
Large Cap Large Cap Large Cap
As of October 31, 2007 Core Fund Growth Fund Value Fund
====================================================================================================================================
Net Asset Value
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional:
Net assets ............................................................... $1,532,235,458 $ 368,000,512 $1,327,045,680
==================================================
Shares outstanding ....................................................... 104,965,640 29,667,967 63,344,217
==================================================
Net asset value .......................................................... $ 14.60 $ 12.40 $ 20.95
==================================================
Service:
Net assets ............................................................... $ 640,361 $ 11,134,327 $ 33,789,712
==================================================
Shares outstanding ....................................................... 44,676 900,253 1,617,459
==================================================
Net asset value .......................................................... $ 14.33 $ 12.37 $ 20.89
==================================================
Investor A:
Net assets ............................................................... $1,846,006,907 $ 327,501,336 $2,499,603,934
==================================================
Shares outstanding ....................................................... 128,810,540 26,959,236 121,671,420
==================================================
Net asset value .......................................................... $ 14.33 $ 12.15 $ 20.54
==================================================
Investor B:
Net assets ............................................................... $ 494,478,093 $ 105,512,681 $ 277,112,904
==================================================
Shares outstanding ....................................................... 36,432,489 9,230,720 14,273,274
==================================================
Net asset value .......................................................... $ 13.57 $ 11.43 $ 19.41
==================================================
Investor C:
Net assets ............................................................... $1,447,335,926 $ 280,142,191 $ 959,038,528
==================================================
Shares outstanding ....................................................... 107,123,913 24,521,048 49,520,993
==================================================
Net asset value .......................................................... $ 13.51 $ 11.42 $ 19.37
==================================================
Class R:
Net assets ............................................................... $ 160,861,242 $ 95,636,516 $ 211,115,379
==================================================
Shares outstanding ....................................................... 11,612,219 8,109,338 10,598,803
==================================================
Net asset value .......................................................... $ 13.85 $ 11.79 $ 19.92
==================================================
* Identified cost of the Portfolios .................................... $4,559,318,177 $1,002,510,817 $4,604,740,708
==================================================
+ Authorized shares -- Institutional ................................... 400,000,000 100,000,000 400,000,000
==================================================
++ Authorized shares -- Service ......................................... 50,000,000 50,000,000 50,000,000
==================================================
+++ Authorized shares -- Investor A ...................................... 300,000,000 100,000,000 400,000,000
==================================================
++++ Authorized shares -- Investor B ...................................... 200,000,000 200,000,000 200,000,000
==================================================
+++++ Authorized shares -- Investor C ...................................... 400,000,000 100,000,000 400,000,000
==================================================
++++++ 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:
--------------------------------------------------------------------------
Purchase Sales Realized Interest
Affiliate Cost Cost Gain Income
--------------------------------------------------------------------------
Master S&P 500 Index Series -- $5,411,598 $13,103,860 --
--------------------------------------------------------------------------
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 13
Statements of Operations BlackRock Large Cap Series Funds, Inc.
BlackRock BlackRock BlackRock
Large Cap Large Cap Large Cap
For the Year Ended October 31, 2007 Core Fund Growth Fund Value Fund
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income allocated from the Portfolios:
Dividends ................................................................ $ 45,839,434 $ 7,282,031 $ 67,128,760
Securities lending -- net ................................................ 1,381,210 290,141 864,456
Interest from affiliates ................................................. 52,875 165,636 558,701
Expenses ................................................................. (20,677,334) (5,366,052) (23,945,743)
-------------------------------------------------
Total income ................................................................. 26,596,185 2,371,756 44,606,174
-------------------------------------------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Service and distribution fees -- Investor C .................................. 13,315,927 2,317,598 8,987,184
Administration fees .......................................................... 10,546,492 2,410,868 11,701,209
Service and distribution fees -- Investor B .................................. 4,097,523 1,088,281 3,043,392
Service fees -- Investor A ................................................... 3,222,588 675,672 5,224,258
Transfer agent fees -- Investor C ............................................ 2,219,837 467,501 1,659,805
Transfer agent fees -- Investor A ............................................ 1,976,169 487,376 2,936,598
Transfer agent fees -- Institutional ......................................... 1,194,867 340,282 1,216,944
Service and distribution fees -- Class R ..................................... 649,668 359,222 820,375
Transfer agent fees -- Investor B ............................................ 738,851 257,695 592,045
Printing and shareholder reports ............................................. 399,164 87,029 398,517
Registration fees ............................................................ 239,363 111,449 272,239
Transfer agent fees -- Class R ............................................... 257,828 177,212 355,499
Transfer agent fees -- Service ............................................... 103 7,592 40,968
Professional fees ............................................................ 73,033 31,611 90,743
Service fees -- Service ...................................................... 172 16,990 70,678
Custodian fees ............................................................... 2,368 2,009 10,211
Accounting services .......................................................... 105 -- --
Other ........................................................................ 32,318 16,763 25,045
-------------------------------------------------
Total expenses before reimbursement .......................................... 38,966,376 8,855,150 37,445,710
Reimbursement of expenses .................................................... (329,053) -- --
-------------------------------------------------
Total expenses ............................................................... 38,637,323 8,855,150 37,445,710
-------------------------------------------------
Investment income (loss) -- net. ............................................. (12,041,138) (6,483,394) 7,160,464
-------------------------------------------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain on:
Allocations from the Portfolio ........................................... 498,351,923 69,191,141 335,108,036
Allocations from the Master S&P 500 Index Series (the "Series") .......... 13,103,860 -- --
-------------------------------------------------
Total realized gain -- net ................................................... 511,455,783 69,191,141 335,108,036
-------------------------------------------------
Change in unrealized appreciation on:
Allocations from the Portfolio ........................................... 29,238,617 83,548,531 141,991,944
Allocations from the Series .............................................. (10,726,945) -- --
-------------------------------------------------
Total change in unrealized appreciation -- net ............................... 18,511,672 83,548,531 141,991,944
-------------------------------------------------
Total realized and unrealized gain -- net .................................... 529,967,455 152,739,672 477,099,980
-------------------------------------------------
Net Increase in Net Assets Resulting from Operations ......................... $ 517,926,317 $ 146,256,278 $ 484,260,444
==================================================
See Notes to Financial Statements.
14 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Statements of Changes in Net Assets BlackRock Large Cap Core Fund
For the Year Ended
October 31,
-----------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment loss -- net ..................................................................... $ (12,041,138) $ (11,265,929)
Realized gain -- net ....................................................................... 511,455,783 179,091,130
Change in unrealized appreciation -- net ................................................... 18,511,672 276,027,847
-----------------------------------
Net increase in net assets resulting from operations ....................................... 517,926,317 443,853,048
-----------------------------------
===================================================================================================================================
Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain -- net:
Institutional .......................................................................... (99,449,229) (57,857,569)
Investor A ............................................................................. (122,443,778) (62,093,983)
Investor B ............................................................................. (34,481,267) (35,312,162)
Investor C ............................................................................. (130,020,216) (70,619,981)
Class R ................................................................................ (13,745,990) (5,587,829)
-----------------------------------
Net decrease in net assets resulting from distributions to shareholders .................... (400,140,480) (231,471,524)
-----------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions ......................... 1,660,734,627 1,029,911,537
-----------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ............................................................... 1,778,520,464 1,242,293,061
Beginning of year .......................................................................... 3,703,037,523 2,460,744,462
-----------------------------------
End of year* ............................................................................... $ 5,481,557,987 $ 3,703,037,523
===================================
* Accumulated investment loss -- net ................................................... -- $ (45,543)
===================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 15
Statements of Changes In Net Assets BlackRock Large Cap Growth Fund
For the Year Ended
October 31,
-----------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment loss -- net ..................................................................... $ (6,483,394) $ (4,681,453)
Realized gain -- net ....................................................................... 69,191,141 24,740,475
Change in unrealized appreciation -- net ................................................... 83,548,531 44,967,618
-----------------------------------
Net increase in net assets resulting from operations ....................................... 146,256,278 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 ......................... 260,169,210 230,644,704
-----------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ............................................................... 403,392,826 295,671,344
Beginning of year .......................................................................... 784,534,737 488,863,393
-----------------------------------
End of year ................................................................................ $ 1,187,927,563 $ 784,534,737
===================================
See Notes to Financial Statements.
16 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Statements of Changes in Net Assets BlackRock Large Cap Value Fund
For the Year Ended
October 31,
-----------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net ............................................................ $ 7,160,464 $ (3,327,782)
Realized gain -- net ....................................................................... 335,108,036 116,307,468
Change in unrealized appreciation -- net ................................................... 141,991,944 272,889,139
-----------------------------------
Net increase in net assets resulting from operations ....................................... 484,260,444 385,868,825
-----------------------------------
===================================================================================================================================
Dividends & Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net:
Institutional .......................................................................... (1,176,425) --
Service ................................................................................ (12,439) --
Investor A ............................................................................. (1,464,394) --
Class R ................................................................................ (46,948) --
Realized gain -- net:
Institutional .......................................................................... (16,065,705) (37,978,492)
Service ................................................................................ (386,770) (336)
Investor A ............................................................................. (27,046,018) (41,836,619)
Investor B ............................................................................. (5,082,815) (15,641,418)
Investor C ............................................................................. (12,945,329) (31,948,254)
Class R ................................................................................ (2,059,378) (4,331,376)
-----------------------------------
Net decrease in net assets resulting from dividends and distributions to shareholders ...... (66,286,221) (131,736,495)
-----------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions ......................... 1,039,235,808 2,061,799,094
-----------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ............................................................... 1,457,210,031 2,315,931,424
Beginning of year .......................................................................... 3,850,496,106 1,534,564,682
-----------------------------------
End of year* ............................................................................... $ 5,307,706,137 $ 3,850,496,106
===================================
* Undistributed investment income -- net ............................................... $ 4,460,258 --
===================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 17
Financial Highlights Institutional
BlackRock Large Cap Core Fund
-------------------------------------------------------------------------
For the Year Ended October 31,
The following per share data and ratios have been derived -------------------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ................... $ 14.20 $ 13.20 $ 11.28 $ 10.33 $ 8.31
-------------------------------------------------------------------------
Investment income (loss) -- net** .................... .04 .03 .04 .02 .01
Realized and unrealized gain -- net .................. 1.83 2.10 1.97 .93 2.01
-------------------------------------------------------------------------
Total from investment operations ..................... 1.87 2.13 2.01 .95 2.02
-------------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ......................... -- -- -- -- --
Realized gain -- net ............................. (1.47) (1.13) (.09) -- --
-------------------------------------------------------------------------
Total dividends and distributions .................... (1.47) (1.13) (.09) -- --
-------------------------------------------------------------------------
Net asset value, end of year ......................... $ 14.60 $ 14.20 $ 13.20 $ 11.28 $ 10.33
=========================================================================
===================================================================================================================================
Total Investment Return***
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ................... 13.55% 16.91% 17.94% 9.20% 24.31%
=========================================================================
===================================================================================================================================
Ratios to Average Net Assets*
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ....................... .87% .89% .91% .93% .98%
=========================================================================
Expenses ............................................. .87% .89% .91% .93% .98%
=========================================================================
Investment income (loss) -- net ...................... .24% .19% .31% .17% .06%
=========================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ............... $1,532,235 $ 922,301 $ 601,378 $ 415,647 $ 307,277
=========================================================================
Portfolio turnover of the Fund ....................... 0% 0% -- -- --
=========================================================================
Portfolio turnover of the Portfolios ................. 96% 88% 94% 135% 139%
=========================================================================
* 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 effect of any sales charges.
See Notes to Financial Statements.
18 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
BlackRock Large Cap Growth Fund
------------------------------------------------------------------------
For the Year Ended October 31,
The following per share data and ratios have been derived ------------------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ................... $ 10.63 $ 9.36 $ 8.36 $ 7.97 $ 6.44
------------------------------------------------------------------------
Investment income (loss) -- net** .................... (.02) (.02) (.02) (.04) (.04)
Realized and unrealized gain -- net .................. 1.83 1.29 1.02 .43 1.57
------------------------------------------------------------------------
Total from investment operations ..................... 1.81 1.27 1.00 .39 1.53
------------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ......................... -- -- -- -- --
Realized gain -- net ............................. (.04) -- -- -- --
------------------------------------------------------------------------
Total dividends and distributions .................... (.04) -- -- -- --
------------------------------------------------------------------------
Net asset value, end of year ......................... $ 12.40 $ 10.63 $ 9.36 $ 8.36 $ 7.97
========================================================================
==================================================================================================================================
Total Investment Return***
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ................... 17.07% 13.57% 11.96% 4.89% 23.76%
========================================================================
==================================================================================================================================
Ratios to Average Net Assets*
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ....................... .95% 1.04% 1.08% 1.13% 1.22%
========================================================================
Expenses ............................................. .95% 1.04% 1.08% 1.13% 1.22%
========================================================================
Investment income (loss) -- net ...................... (.16%) (.22%) (.20%) (.45%) (.57%)
========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ............... $ 368,001 $ 215,697 $ 128,667 $ 79,869 $ 53,163
========================================================================
Portfolio turnover of the Fund ....................... -- -- -- -- --
========================================================================
Portfolio turnover of the Portfolios ................. 87% 117% 132% 165% 178%
========================================================================
BlackRock Large Cap Value Fund
-----------------------------------------------------------------------
For the Year Ended October 31,
The following per share data and ratios have been derived -----------------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
=================================================================================================================================
Per Share Operating Performance
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ................... $ 18.96 $ 17.12 $ 14.71 $ 12.89 $ 10.21
-----------------------------------------------------------------------
Investment income (loss) -- net** .................... .12 .06 .06 .07 .06
Realized and unrealized gain -- net .................. 2.19 2.93 3.01 1.75 2.62
-----------------------------------------------------------------------
Total from investment operations ..................... 2.31 2.99 3.07 1.82 2.68
-----------------------------------------------------------------------
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 year ......................... $ 20.95 $ 18.96 $ 17.12 $ 14.71 $ 12.89
=======================================================================
=================================================================================================================================
Total Investment Return***
- ---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ................... 12.35% 18.06% 21.49% 14.12% 26.25%
=======================================================================
=================================================================================================================================
Ratios to Average Net Assets*
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ....................... .88% .94% .98% 1.01% 1.03%
=======================================================================
Expenses ............................................. .88% .94% .98% 1.01% 1.03%
=======================================================================
Investment income (loss) -- net ...................... .59% .32% .35% .49% .51%
=======================================================================
=================================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ............... $1,327,046 $ 990,081 $ 446,172 $ 194,625 $ 92,736
=======================================================================
Portfolio turnover of the Fund ....................... -- -- -- -- --
=======================================================================
Portfolio turnover of the Portfolios ................. 72% 71% 95% 128% 157%
=======================================================================
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 19
Financial Highlights (continued) Service
BlackRock BlackRock BlackRock
Large Cap Large Cap Large Cap
Core Fund Growth Fund Value Fund
---------------- -------------------------- ---------------------------
For the For the For the
Period For the Period For the Period
Sept. 24, 2007@@ Year Ended Oct. 2, 2006@@ Year Ended Oct. 2, 2006@@
The following per share data and ratios have been derived to Oct. 31, October 31, to Oct. 31, October 31, to Oct. 31,
from information provided in the financial statements. 2007 2007 2006 2007 2006
====================================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................. $ 14.02 $ 10.62 $ 10.18 $ 18.95 $ 18.62
---------------------------------------------------------------------
Investment income (loss) -- net*** ................... (.01) (.05) (.01) .06 (.01)
Realized and unrealized gain -- net .................. .32 1.84 .45 2.19 .65
---------------------------------------------------------------------
Total from investment operations ..................... .31 1.79 .44 2.25 .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 ....................... $ 14.33 $ 12.37 $ 10.62 $ 20.89 $ 18.95
=====================================================================
====================================================================================================================================
Total Investment Return
- ------------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ................... 2.21%@ 16.89% 4.32%@ 12.01% 3.49%@
=====================================================================
====================================================================================================================================
Ratios to Average Net Assets**
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ....................... 1.14%* 1.20% 1.36%* 1.18% 1.35%*
=====================================================================
Expenses ............................................. 1.14%* 1.20% 1.36%* 1.18% 1.35%*
=====================================================================
Investment income (loss) -- net ...................... (.52%)* (.42%) (1.14%)* .29% (1.14%)*
=====================================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............. $ 640 $ 11,134 $ 5,014 $ 33,790 $ 24,828
=====================================================================
Portfolio turnover of the Portfolios ................. 96% 87% 117% 72% 71%
=====================================================================
* 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.
@@ Commencement of operations.
See Notes to Financial Statements.
20 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Financial Highlights (continued) Investor A
BlackRock Large Cap Core Fund
------------------------------------------------------------------------
For the Year Ended October 31,
The following per share data and ratios have been derived ------------------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ................... $ 13.97 $ 13.01 $ 11.15 $ 10.23 $ 8.25
------------------------------------------------------------------------
Investment income (loss) -- net** .................... --@ (.01) .01 (.01) (.02)
Realized and unrealized gain -- net .................. 1.79 2.08 1.94 .93 2.00
------------------------------------------------------------------------
Total from investment operations ..................... 1.79 2.07 1.95 .92 1.98
------------------------------------------------------------------------
Less distributions from realized gain -- net ......... (1.43) (1.11) (.09) -- --
------------------------------------------------------------------------
Net asset value, end of year ......................... $ 14.33 $ 13.97 $ 13.01 $ 11.15 $ 10.23
========================================================================
==================================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ................... 13.23% 16.61% 17.61% 8.99% 24.00%
========================================================================
==================================================================================================================================
Ratios to Average Net Assets*
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ....................... 1.14% 1.14% 1.16% 1.18% 1.23%
========================================================================
Expenses ............................................. 1.16% 1.14% 1.16% 1.18% 1.23%
========================================================================
Investment income (loss) -- net ...................... (.03%) (.06%) .05% (.09%) (.21%)
========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ............... $1,846,007 $1,028,585 $ 629,682 $ 392,896 $ 293,144
========================================================================
Portfolio turnover of the Fund ....................... 0% 0% -- -- --
========================================================================
Portfolio turnover of the Portfolio .................. 96% 88% 94% 135% 139%
========================================================================
* 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 any sales charges.
@ Amount is less than $.01 per share.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 21
Financial Highlights (continued) Investor A
BlackRock Large Cap Growth Fund
The following per share data and --------------------------------------------------------------------------
ratios have been derived from For the Year Ended October 31,
information provided in the --------------------------------------------------------------------------
financial statements. 2007 2006 2005 2004 2003
====================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ... $ 10.44 $ 9.22 $ 8.26 $ 7.89 $ 6.39
--------------------------------------------------------------------------
Investment income (loss) -- net** .... (.05) (.06) (.04) (.06) (.05)
Realized and unrealized gain -- net .. 1.80 1.28 1.00 .43 1.55
--------------------------------------------------------------------------
Total from investment operations ..... 1.75 1.22 .96 .37 1.50
--------------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ......... -- -- -- -- --
Realized gain -- net ............. (.04) -- -- -- --
--------------------------------------------------------------------------
Total dividends and distributions .... (.04) -- -- -- --
--------------------------------------------------------------------------
Net asset value, end of year ......... $ 12.15 $ 10.44 $ 9.22 $ 8.26 $ 7.89
==========================================================================
====================================================================================================================
Total Investment Return+
- -------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ... 16.80% 13.23% 11.62% 4.69% 23.47%
==========================================================================
====================================================================================================================
Ratios to Average Net Assets*
- -------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ....... 1.27% 1.29% 1.33% 1.38% 1.46%
==========================================================================
Expenses ............................. 1.27% 1.29% 1.33% 1.38% 1.46%
==========================================================================
Investment income (loss) -- net ...... (.46%) (.48%) (.46%) (.69%) (.81%)
==========================================================================
====================================================================================================================
Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) $ 327,501 $ 218,017 $ 112,887 $ 64,539 $ 27,410
==========================================================================
Portfolio turnover of the Portfolios 87% 117% 132% 165% 178%
==========================================================================
BlackRock Large Cap Value Fund
The following per share data and -------------------------------------------------------------------------
ratios have been derived from For the Year Ended October 31,
information provided in the -------------------------------------------------------------------------
financial statements. 2007 2006 2005 2004 2003
===================================================================================================================
Per Share Operating Performance
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ... $ 18.64 $ 16.86 $ 14.53 $ 12.77 $ 10.14
-------------------------------------------------------------------------
Investment income (loss) -- net** .... .06 .01 .02 .03 .03
Realized and unrealized gain -- net .. 2.16 2.89 2.97 1.73 2.60
-------------------------------------------------------------------------
Total from investment operations ..... 2.22 2.90 2.99 1.76 2.63
-------------------------------------------------------------------------
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 year ......... $ 20.54 $ 18.64 $ 16.86 $ 14.53 $ 12.77
=========================================================================
===================================================================================================================
Total Investment Return+
- -------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ... 12.04% 17.78% 21.20% 13.78% 25.94%
=========================================================================
===================================================================================================================
Ratios to Average Net Assets*
- -------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ....... 1.17% 1.19% 1.23% 1.26% 1.28%
=========================================================================
Expenses ............................. 1.17% 1.19% 1.23% 1.26% 1.28%
=========================================================================
Investment income (loss) -- net ...... .28% .05% .10% .21% .24%
=========================================================================
===================================================================================================================
Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) $2,499,604 $1,652,442 $ 371,216 $ 161,867 $ 90,358
=========================================================================
Portfolio turnover of the Portfolios 72% 71% 95% 128% 157%
=========================================================================
* 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 any sales charges.
See Notes to Financial Statements.
22 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Financial Highlights (continued) Investor B
BlackRock Large Cap Core Fund
The following per share data and --------------------------------------------------------------------------
ratios have been derived from For the Year Ended October 31,
information provided in the --------------------------------------------------------------------------
financial statements. 2007 2006 2005 2004 2003
==========================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 13.30 $ 12.43 $ 10.74 $ 9.93 $ 8.07
--------------------------------------------------------------------------
Investment loss -- net** ................... (.10) (.11) (.08) (.09) (.08)
Realized and unrealized gain -- net ........ 1.69 1.99 1.86 .90 1.94
--------------------------------------------------------------------------
Total from investment operations ........... 1.59 1.88 1.78 .81 1.86
--------------------------------------------------------------------------
Less distributions from realized gain -- net (1.32) (1.01) (.09) -- --
--------------------------------------------------------------------------
Net asset value, end of year ............... $ 13.57 $ 13.30 $ 12.43 $ 10.74 $ 9.93
==========================================================================
==========================================================================================================================
Total Investment Return+
- --------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 12.30% 15.72% 16.69% 8.16% 23.05%
==========================================================================
==========================================================================================================================
Ratios to Average Net Assets*
- --------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.93% 1.91% 1.93% 1.95% 2.00%
==========================================================================
Expenses ................................... 1.94% 1.91% 1.93% 1.95% 2.00%
==========================================================================
Investment loss -- net ..................... (.78%) (.83%) (.66%) (.86%) (.96%)
==========================================================================
==========================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $ 494,478 $ 467,145 $ 446,242 $ 412,162 $ 389,598
==========================================================================
Portfolio turnover of the Fund ............. 0% 0% -- -- --
==========================================================================
Portfolio turnover of the Portfolio ........ 96% 88% 94% 135% 139%
==========================================================================
* 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 any sales charges.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 23
Financial Highlights (continued) Investor B
BlackRock Large Cap Growth Fund
The following per share data and ----------------------------------------------------------------
ratios have been derived from For the Year Ended October 31,
information provided in the ----------------------------------------------------------------
financial statements. 2007 2006 2005 2004 2003
================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 9.91 $ 8.82 $ 7.96 $ 7.66 $ 6.25
----------------------------------------------------------------
Investment loss -- net** ................... (.13) (.12) (.10) (.12) (.10)
Realized and unrealized gain -- net ........ 1.69 1.21 .96 .42 1.51
----------------------------------------------------------------
Total from investment operations ........... 1.56 1.09 .86 .30 1.41
----------------------------------------------------------------
Less distributions from realized gain -- net (.04) -- -- -- --
----------------------------------------------------------------
Net asset value, end of year ............... $ 11.43 $ 9.91 $ 8.82 $ 7.96 $ 7.66
================================================================
================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 15.78% 12.36% 10.80% 3.92% 22.56%
================================================================
================================================================================================================
Ratios to Average Net Assets*
- ----------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 2.08% 2.07% 2.11% 2.16% 2.27%
================================================================
Expenses ................................... 2.08% 2.07% 2.11% 2.16% 2.27%
================================================================
Investment loss -- net ..................... (1.26%) (1.25%) (1.15%) (1.48%) (1.61%)
================================================================
================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $105,513 $107,113 $ 95,593 $ 93,382 $100,683
================================================================
Portfolio turnover of the Portfolios ....... 87% 117% 132% 165% 178%
================================================================
BlackRock Large Cap Value Fund
The following per share data and ----------------------------------------------------------------
ratios have been derived from For the Year Ended October 31,
information provided in the ----------------------------------------------------------------
financial statements. 2007 2006 2005 2004 2003
================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 17.76 $ 16.12 $ 14.02 $ 12.41 $ 9.93
----------------------------------------------------------------
Investment loss -- net** ................... (.09) (.11) (.09) (.07) (.05)
Realized and unrealized gain -- net ........ 2.04 2.74 2.85 1.68 2.53
----------------------------------------------------------------
Total from investment operations ........... 1.95 2.63 2.76 1.61 2.48
----------------------------------------------------------------
Less distributions from realized gain -- net (.30) (.99) (.66) -- --
----------------------------------------------------------------
Net asset value, end of year ............... $ 19.41 $ 17.76 $ 16.12 $ 14.02 $ 12.41
================================================================
================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 11.11% 16.81% 20.29% 12.97% 24.97%
================================================================
================================================================================================================
Ratios to Average Net Assets*
- ----------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.98% 1.96% 2.00% 2.02% 2.05%
================================================================
Expenses ................................... 1.98% 1.96% 2.00% 2.02% 2.05%
================================================================
Investment loss -- net ..................... (.47%) (.67%) (.60%) (.53%) (.50%)
================================================================
================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $277,113 $309,795 $261,345 $222,055 $202,190
================================================================
Portfolio turnover of the Portfolios ....... 72% 71% 95% 128% 157%
================================================================
* 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 any sales charges.
See Notes to Financial Statements.
24 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Financial Highlights (continued) Investor C
BlackRock Large Cap Core Fund
The following per share data and --------------------------------------------------------------------------
ratios have been derived from For the Year Ended October 31,
information provided in the --------------------------------------------------------------------------
financial statements. 2007 2006 2005 2004 2003
==========================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 13.26 $ 12.43 $ 10.73 $ 9.93 $ 8.07
--------------------------------------------------------------------------
Investment loss -- net** ................... (.11) (.11) (.09) (.09) (.08)
Realized and unrealized gain -- net ........ 1.71 1.97 1.88 .89 1.94
--------------------------------------------------------------------------
Total from investment operations ........... 1.60 1.86 1.79 .80 1.86
--------------------------------------------------------------------------
Less distributions from realized gain -- net (1.35) (1.03) (.09) -- --
--------------------------------------------------------------------------
Net asset value, end of year ............... $ 13.51 $ 13.26 $ 12.43 $ 10.73 $ 9.93
==========================================================================
==========================================================================================================================
Total Investment Return+
- --------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 12.40% 15.64% 16.80% 8.06% 23.05%
==========================================================================
==========================================================================================================================
Ratios to Average Net Assets*
- --------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.93% 1.91% 1.94% 1.96% 2.01%
==========================================================================
Expenses ................................... 1.93% 1.91% 1.94% 1.96% 2.01%
==========================================================================
Investment loss -- net ..................... (.79%) (.84%) (.73%) (.86%) (.97%)
==========================================================================
==========================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $1,447,336 $1,176,244 $ 737,063 $ 430,689 $ 250,491
==========================================================================
Portfolio turnover of the Fund ............. 0% 0% -- -- --
==========================================================================
Portfolio turnover of the Portfolio ........ 96% 88% 94% 135% 139%
==========================================================================
* 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 any sales charges.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 25
Financial Highlights (continued) Investor C
BlackRock Large Cap Growth Fund
The following per share data and ----------------------------------------------------------------
ratios have been derived from For the Year Ended October 31,
information provided in the ----------------------------------------------------------------
financial statements. 2007 2006 2005 2004 2003
================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 9.90 $ 8.81 $ 7.95 $ 7.65 $ 6.25
----------------------------------------------------------------
Investment loss -- net** ................... (.13) (.12) (.10) (.12) (.10)
Realized and unrealized gain -- net ........ 1.69 1.21 .96 .42 1.50
----------------------------------------------------------------
Total from investment operations ........... 1.56 1.09 .86 .30 1.40
----------------------------------------------------------------
Less distributions from realized gain -- net (.04) -- -- -- --
----------------------------------------------------------------
Net asset value, end of year ............... $ 11.42 $ 9.90 $ 8.81 $ 7.95 $ 7.65
================================================================
================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 15.79% 12.37% 10.82% 3.92% 22.40%
================================================================
================================================================================================================
Ratios to Average Net Assets*
- ----------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 2.04% 2.06% 2.11% 2.16% 2.27%
================================================================
Expenses ................................... 2.04% 2.06% 2.11% 2.16% 2.27%
================================================================
Investment loss -- net ..................... (1.24%) (1.25%) (1.19%) (1.48%) (1.62%)
================================================================
================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $280,142 $185,337 $125,150 $ 94,969 $ 68,337
================================================================
Portfolio turnover of the Portfolios ....... 87% 117% 132% 165% 178%
================================================================
BlackRock Large Cap Value Fund
The following per share data and ----------------------------------------------------------------
ratios have been derived from For the Year Ended October 31,
information provided in the ----------------------------------------------------------------
financial statements. 2007 2006 2005 2004 2003
================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 17.72 $ 16.11 $ 14.01 $ 12.41 $ 9.93
----------------------------------------------------------------
Investment loss -- net** ................... (.09) (.12) (.10) (.07) (.05)
Realized and unrealized gain -- net ........ 2.04 2.76 2.86 1.67 2.53
----------------------------------------------------------------
Total from investment operations ........... 1.95 2.64 2.76 1.60 2.48
----------------------------------------------------------------
Less distributions from realized gain -- net (.30) (1.03) (.66) -- --
----------------------------------------------------------------
Net asset value, end of year ............... $ 19.37 $ 17.72 $ 16.11 $ 14.01 $ 12.41
================================================================
================================================================================================================
Total Investment Return+
- ----------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 11.14% 16.89% 20.31% 12.89% 24.97%
================================================================
================================================================================================================
Ratios to Average Net Assets*
- ----------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.97% 1.96% 2.00% 2.03% 2.06%
================================================================
Expenses ................................... 1.97% 1.96% 2.00% 2.03% 2.06%
================================================================
Investment loss -- net ..................... (.50%) (.69%) (.65%) (.54%) (.51%)
================================================================
================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $959,039 $754,266 $409,937 $219,806 $129,456
================================================================
Portfolio turnover of the Portfolios ....... 72% 71% 95% 128% 157%
================================================================
* 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 any sales charges.
See Notes to Financial Statements.
26 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Financial Highlights (continued) Class R
BlackRock Large Cap Core Fund
------------------------------------------------------------------
For the Period
The following per share data and January 3,
ratios have been derived from For the Year Ended October 31, 2003++ to
information provided in the -------------------------------------------------- October 31,
financial statements. 2007 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*** .................. (.05) (.04) (.03) (.03) (.05)
Realized and unrealized gain -- net ........ 1.75 2.02 1.91 .90 1.95
------------------------------------------------------------------
Total from investment operations ........... 1.70 1.98 1.88 .87 1.90
------------------------------------------------------------------
Less distributions from realized gain -- net (1.41) (1.10) (.09) -- --
------------------------------------------------------------------
Net asset value, end of period ............. $ 13.85 $ 13.56 $ 12.68 $ 10.89 $ 10.02
==================================================================
==================================================================================================================
Total Investment Return
- ------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 12.90% 16.29% 17.39% 8.68% 23.40%+
==================================================================
==================================================================================================================
Ratios to Average Net Assets**
- ------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ............. 1.45% 1.39% 1.42% 1.43% 1.48%*
==================================================================
Expenses ................................... 1.45% 1.39% 1.42% 1.43% 1.48%*
==================================================================
Investment loss -- net ..................... (.33%) (.32%) (.28%) (.32%) (.44%)*
==================================================================
==================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $160,861 $108,762 $ 46,379 $ 15,160 $ 119
==================================================================
Portfolio turnover of the Fund ............. 0% 0% -- -- --
==================================================================
Portfolio turnover of the Portfolio ........ 96% 88% 94% 135% 139%
==================================================================
* 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.
++ Commencement of operations.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 27
Financial Highlights (concluded) Class R
BlackRock Large Cap Growth Fund
------------------------------------------------------------------
For the Period
The following per share data and January 3,
ratios have been derived from For the Year Ended October 31, 2003@@ to
information provided in the -------------------------------------------------- October 31,
financial statements. 2007 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 income (loss) -- net*** ..... (.09) (.07) (.07) (.06) (.05)
Realized and unrealized gain -- net .... 1.75 1.24 .99 .40 1.63
------------------------------------------------------------------
Total from investment operations ....... 1.66 1.17 .92 .34 1.58
------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ........... -- -- -- -- --
Realized gain -- net ............... (.04) -- -- -- --
------------------------------------------------------------------
Total dividends and distributions ...... (.04) -- -- -- --
------------------------------------------------------------------
Net asset value, end of period ......... $ 11.79 $ 10.17 $ 9.00 $ 8.08 $ 7.74
==================================================================
==============================================================================================================
Total Investment Return
- --------------------------------------------------------------------------------------------------------------
Based on net asset value per share ..... 16.36% 13.00% 11.39% 4.39% 25.65%@
==================================================================
==============================================================================================================
Ratios to Average Net Assets**
- --------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ......... 1.58% 1.54% 1.58% 1.61% 1.72%*
==================================================================
Expenses ............................... 1.58% 1.54% 1.58% 1.61% 1.72%*
==================================================================
Investment income (loss) -- net ........ (.79%) (.73%) (.75%) (.95%) (.94%)*
==================================================================
==============================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 95,637 $ 53,356 $ 26,566 $ 11,304 $ 290
==================================================================
Portfolio turnover of the Portfolios ... 87% 117% 132% 165% 178%
==================================================================
BlackRock Large Cap Value Fund
------------------------------------------------------------------
For the Period
The following per share data and January 3,
ratios have been derived from For the Year Ended October 31, 2003@@ to
information provided in the -------------------------------------------------- October 31,
financial statements. 2007 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*** ..... (.01) (.03) (.03) --+ .01
Realized and unrealized gain -- net .... 2.11 2.80 2.92 1.69 2.41
------------------------------------------------------------------
Total from investment operations ....... 2.10 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 ......... $ 19.92 $ 18.13 $ 16.46 $ 14.23 $ 12.54
==================================================================
==============================================================================================================
Total Investment Return
- --------------------------------------------------------------------------------------------------------------
Based on net asset value per share ..... 11.71% 17.41% 20.93% 13.48% 23.91%@
==================================================================
==============================================================================================================
Ratios to Average Net Assets**
- --------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ......... 1.50% 1.45% 1.48% 1.53% 1.53%*
==================================================================
Expenses ............................... 1.50% 1.45% 1.48% 1.53% 1.53%*
==================================================================
Investment income (loss) -- net ........ (.06%) (.19%) (.19%) (.03%) .01%*
==================================================================
==============================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $211,115 $119,085 $ 45,894 $ 11,362 $ 12
==================================================================
Portfolio turnover of the Portfolios ... 72% 71% 95% 128% 157%
==================================================================
* 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.
28 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Notes to Financial Statements 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, its 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, of Master Large Cap Series LLC
(the "Master LLC"), 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. 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 97.1%, 96.4% and 98.5%,
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 Portfolios 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.
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, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 29
Notes to Financial Statements (continued)
BlackRock Large Cap Series Funds, Inc.
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.
(h) Reclassifications -- BlackRock Large Cap Core Fund
U.S. generally accepted accounting principles require that certain components of
net assets be adjusted to reflect permanent differences between financial and
tax reporting. Accordingly, during the current year, $12,086,681 has been
reclassified between undistributed net realized capital gains and accumulated
net investment loss as a result of permanent differences attributable to net
operating losses and classification of partnership income. This reclassification
has no effect on net assets or net asset values per share.
BlackRock Large Cap Growth Fund
U.S. generally accepted accounting principles require that certain components of
net assets be adjusted to reflect permanent differences between financial and
tax reporting. Accordingly, during the current year, $6,483,394 has been
reclassified between paid-in capital in excess of par and accumulated net
investment loss as a result of a permanent difference attributable to a net
operating loss. This reclassification has no effect on net assets or net asset
values per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
Each Fund has entered into an Administration Agreement with BlackRock Advisors,
LLC (the "Manager"), 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.
With respect to the BlackRock Large Cap Core Fund, effective September 24, 2007,
the Manager has contractually agreed to waive the Fund's administration fee in
the amount of the Fund's share of the administration fee paid by the Fund. For
the period September 24, 2007 to October 31, 2007, the Manager earned fees of
$1,487,784, of which $329,053 were waived. For the period September 24, 2007 to
October 31, 2007, the Manager contractually agreed to waive and/or reimburse
fees and/or expenses in order to limit expenses (excluding interest expense and
certain other fund expenses) as a percentage of average daily net assets
allocated to certain classes of the Fund as follows: 1.11% (for Investor A
Shares), and 1.91% (for Investor B Shares). The Manager has agreed not to reduce
or discontinue this contractual waiver or reimbursement until October 31, 2008,
unless approved by the Board of Directors of the Fund, including a majority of
the non-interested Directors.
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 & Co., 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 provide shareholder servicing and distribution
services to the Funds. The ongoing service fee compensates the Distributor and
the 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 the Distributor and the broker-dealers for
providing shareholder servicing and distribution-related services to Investor B,
Investor C and Class R shareholders.
For the year ended October 31, 2007, FAMD and BDI earned underwriting discounts
and direct commissions and MLPF&S and BDI earned dealer concessions on sales of
the Funds' Investor A Shares as follows:
- --------------------------------------------------------------------------------
Investor A
- --------------------------------------------------------------------------------
BlackRock Large Cap Core Fund .................................... $1,813,139
BlackRock Large Cap Growth Fund .................................. $ 350,936
BlackRock Large Cap Value Fund ................................... $ 739,097
- --------------------------------------------------------------------------------
For the year ended October 31, 2007, affiliates received 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 ................ $315,074 $175,462
BlackRock Large Cap Growth Fund .............. $ 87,043 $ 28,676
BlackRock Large Cap Value Fund ............... $188,448 $133,293
- --------------------------------------------------------------------------------
30 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Notes to Financial Statements (continued)
BlackRock Large Cap Series Funds, Inc.
In addition, affiliates received 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 ....................................... $22,449
BlackRock Large Cap Growth Fund ..................................... $ 384
BlackRock Large Cap Value Fund ...................................... $ 4,404
- --------------------------------------------------------------------------------
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 year ended
October 31, 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 .................................................. $ 6,864
Service ........................................................ $ 4
Investor A ..................................................... $16,408
Investor B ..................................................... $ 6,799
Investor C ..................................................... $18,840
Class R ........................................................ $ 1,260
- --------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund
- --------------------------------------------------------------------------------
Institutional .................................................. $ 1,853
Service ........................................................ $ 444
Investor A ..................................................... $ 5,510
Investor B ..................................................... $ 2,955
Investor C ..................................................... $ 3,523
Class R ........................................................ $ 669
- --------------------------------------------------------------------------------
BlackRock Large Cap Value Fund
- --------------------------------------------------------------------------------
Institutional .................................................. $13,956
Service ........................................................ $ 2,704
Investor A ..................................................... $98,086
Investor B ..................................................... $12,322
Investor C ..................................................... $15,009
Class R ........................................................ $ 1,671
- --------------------------------------------------------------------------------
PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the
Manager, 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, purchases and sales of
investments for the Series, excluding short-term securities, for the year ended
October 31, 2007 were $0 and $5,411,598, respectively.
4. Capital Share Transactions:
BlackRock Large Cap Core Fund
Net increase in net assets derived from capital share transactions was
$1,660,734,627 and $1,029,911,537 for the years ended October 31, 2007 and
October 31, 2006, respectively.
Transactions in capital shares for each class were as follows:
- --------------------------------------------------------------------------------
BlackRock Large Cap Core Fund
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 16,602,584 $ 246,470,220
Shares issued resulting from reorganization . 32,717,868 467,180,857
Shares issued to shareholders in reinvestment
of distributions .......................... 5,760,400 82,316,928
-------------------------------
Total issued ................................ 55,080,852 795,968,005
Shares redeemed ............................. (15,085,098) (222,976,522)
-------------------------------
Net increase ................................ 39,995,754 $ 572,991,483
===============================
- --------------------------------------------------------------------------------
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 to shareholders in 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
===============================
- --------------------------------------------------------------------------------
Service Shares for the Period Dollar
September 24, 2007+ to October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 72 $ 999
Shares issued resulting from reorganization . 45,010 631,258
-------------------------------
Total issued ................................ 45,082 632,257
Shares redeemed ............................. (406) (5,829)
-------------------------------
Net increase ................................ 44,676 $ 626,428
===============================
+ Commencement of operations.
- --------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold and automatic conversion of shares 28,436,081 $ 411,923,052
Shares issued resulting from reorganization . 35,734,228 501,049,717
Shares issued to shareholders in reinvestment
of distributions .......................... 7,931,899 111,313,482
-------------------------------
Total issued ................................ 72,102,208 1,024,286,251
Shares redeemed ............................. (16,932,248) (246,911,315)
-------------------------------
Net increase ................................ 55,169,960 $ 777,374,936
===============================
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 31
Notes to Financial Statements (continued)
BlackRock Large Cap Series Funds, Inc.
- --------------------------------------------------------------------------------
BlackRock Large Cap Core Fund (continued)
- --------------------------------------------------------------------------------
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
===============================
- --------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 3,250,818 $ 44,949,747
Shares issued resulting from reorganization . 11,051,520 146,904,698
Shares issued to shareholders in reinvestment
of distributions .......................... 2,318,297 30,856,830
-------------------------------
Total issued ................................ 16,620,635 222,711,275
Shares redeemed and automatic conversion
of shares ................................. (15,319,048) (210,781,327)
-------------------------------
Net increase ................................ 1,301,587 $ 11,929,948
===============================
- --------------------------------------------------------------------------------
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 25,010,048 $ 343,608,226
Shares issued resulting from reorganization . 1,351,067 17,877,463
Shares issued to shareholders in reinvestment
of distributions .......................... 9,176,419 121,646,342
-------------------------------
Total issued ................................ 35,537,534 483,132,031
Shares redeemed ............................. (17,089,724) (235,184,620)
-------------------------------
Net increase ................................ 18,447,810 $ 247,947,411
===============================
- --------------------------------------------------------------------------------
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 5,791,814 $ 81,305,003
Shares issued to shareholders in reinvestment
of distributions .......................... 1,010,724 13,725,638
-------------------------------
Total issued ................................ 6,802,538 95,030,641
Shares redeemed ............................. (3,210,183) (45,166,220)
-------------------------------
Net increase ................................ 3,592,355 $ 49,864,421
===============================
- --------------------------------------------------------------------------------
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 reinvestment
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 transactions was
$260,169,210 and $230,644,704 for the years ended October 31, 2007 and October
31, 2006, respectively.
Transactions in capital shares for each class were as follows:
- --------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 17,006,393 $ 196,644,985
Shares issued to shareholders in reinvestment
of distributions .......................... 62,922 683,337
-------------------------------
Total issued ................................ 17,069,315 197,328,322
Shares redeemed ............................. (7,700,131) (87,838,517)
-------------------------------
Net increase ................................ 9,369,184 $ 109,489,805
===============================
- --------------------------------------------------------------------------------
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 614,628 $ 7,183,206
Shares issued to shareholders in reinvestment
of distributions .......................... 1,438 15,600
-------------------------------
Total issued ................................ 616,066 7,198,806
Shares redeemed ............................. (187,853) (2,111,501)
-------------------------------
Net increase ................................ 428,213 $ 5,087,305
===============================
32 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold and automatic conversion of shares 13,520,166 $ 152,824,259
Shares issued to shareholders in reinvestment
of distributions .......................... 74,874 798,915
-------------------------------
Total issued ................................ 13,595,040 153,623,174
Shares redeemed ............................. (7,519,049) (84,391,960)
-------------------------------
Net increase ................................ 6,075,991 $ 69,231,214
===============================
- --------------------------------------------------------------------------------
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 2,624,001 $ 27,808,640
Shares issued to shareholders in reinvestment
of distributions .......................... 37,261 376,698
-------------------------------
Total issued ................................ 2,661,262 28,185,338
Shares redeemed and automatic conversion
of shares ................................. (4,244,218) (45,329,772)
-------------------------------
Net decrease ................................ (1,582,956) $ (17,144,434)
===============================
- --------------------------------------------------------------------------------
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 11,083,851 $ 118,787,413
Shares issued to shareholders in reinvestment
of distributions .......................... 69,949 706,480
-------------------------------
Total issued ................................ 11,153,800 119,493,893
Shares redeemed ............................. (5,360,747) (57,345,607)
-------------------------------
Net increase ................................ 5,793,053 $ 62,148,286
===============================
- --------------------------------------------------------------------------------
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 5,000,714 $ 54,802,359
Shares issued to shareholders in reinvestment
of distributions .......................... 20,340 211,332
-------------------------------
Total issued ................................ 5,021,054 55,013,691
Shares redeemed ............................. (2,159,077) (23,656,657)
-------------------------------
Net increase ................................ 2,861,977 $ 31,357,034
===============================
- --------------------------------------------------------------------------------
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
$1,039,235,808 and $2,061,799,094 for the years ended October 31, 2007 and
October 31, 2006, respectively.
Transactions in capital shares for each class were as follows:
- --------------------------------------------------------------------------------
BlackRock Large Cap Value Fund
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 30,936,573 $ 616,244,281
Shares issued to shareholders in reinvestment
of dividends and distributions ............ 788,152 15,077,111
-------------------------------
Total issued ................................ 31,724,725 631,321,392
Shares redeemed ............................. (20,606,763) (412,032,591)
-------------------------------
Net increase ................................ 11,117,962 $ 219,288,801
===============================
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 33
Notes to Financial Statements (continued)
BlackRock Large Cap Series Funds, Inc.
- --------------------------------------------------------------------------------
BlackRock Large Cap Value Fund (continued)
- --------------------------------------------------------------------------------
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 595,347 $ 12,076,181
Shares issued to shareholders in reinvestment of
dividends and distributions ............... 19,088 364,951
-------------------------------
Total issued ................................ 614,435 12,441,132
Shares redeemed ............................. (307,139) (6,097,755)
-------------------------------
Net increase ................................ 307,296 $ 6,343,377
===============================
- --------------------------------------------------------------------------------
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold and automatic conversion of shares 53,168,066 $1,066,141,467
Shares issued to shareholders in reinvestment of
dividends and distributions ............... 1,405,085 26,430,387
-------------------------------
Total issued ................................ 54,573,151 1,092,571,854
Shares redeemed ............................. (21,540,848) (424,585,851)
-------------------------------
Net increase ................................ 33,032,303 $ 667,986,003
===============================
- --------------------------------------------------------------------------------
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 2,551,487 $ 47,649,721
Shares issued to shareholders in reinvestment
of distributions .......................... 260,480 4,661,325
-------------------------------
Total issued ................................ 2,811,967 52,311,046
Shares redeemed and automatic conversion
of shares ................................. (5,980,285) (112,293,764)
-------------------------------
Net decrease ................................ (3,168,318) $ (59,982,718)
===============================
- --------------------------------------------------------------------------------
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 Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 17,217,899 $ 322,045,398
Shares issued to shareholders in reinvestment
of distributions .......................... 683,298 12,203,021
-------------------------------
Total issued ................................ 17,901,197 334,248,419
Shares redeemed ............................. (10,956,566) (205,519,795)
-------------------------------
Net increase ................................ 6,944,631 $ 128,728,624
===============================
- --------------------------------------------------------------------------------
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
===============================
- --------------------------------------------------------------------------------
Class R Shares for the Year Dollar
Ended October 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ................................. 6,549,560 $ 125,647,577
Shares issued to shareholders in reinvestment
of dividends and distributions ............ 115,104 2,105,311
-------------------------------
Total issued ................................ 6,664,664 127,752,888
Shares redeemed ............................. (2,632,867) (50,881,167)
-------------------------------
Net increase ................................ 4,031,797 $ 76,871,721
===============================
34 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Notes to Financial Statements (continued)
BlackRock Large Cap Series Funds, Inc.
- --------------------------------------------------------------------------------
BlackRock Large Cap Value Fund (concluded)
- --------------------------------------------------------------------------------
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. Distributions to Shareholders:
BlackRock Large Cap Core Fund
The tax character of distributions paid during the fiscal years ended October
31, 2007 and October 31, 2006 was as follows:
- --------------------------------------------------------------------------------
10/31/2007 10/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income ........................... $ 30,000,325 $ 31,667,962
Net long-term capital gains ............... 370,140,155 199,803,562
------------------------------
Total taxable distributions ................. $400,140,480 $ 231,471,524
==============================
As of October 31, 2007, the components of accumulated earnings on a tax basis
were as follows:
- -----------------------------------------------------------------------------
Undistributed ordinary income -- net ..................... $ 15,910,170
Undistributed long-term capital gains -- net ............. 130,870,245
---------------
Total undistributed earnings -- net ...................... 146,780,415
Capital loss carryforward ................................ (60,119,285)*
Unrealized gains -- net .................................. 913,436,506**
---------------
Total accumulated earnings -- net ........................ $ 1,000,097,636
===============
* On October 31, 2007, the Fund had a net capital loss carryforward of
$60,119,285, of which $13,526,871 expires in 2008, $17,134,577 expires in
2009, $26,458,063 expires in 2010 and $2,999,774 expires in 2011. This
amount will be available to offset like amounts of any future taxable
gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales.
BlackRock Large Cap Growth Fund
The tax character of distributions paid during the fiscal years ended October
31, 2007 and October 31, 2006 was as follows:
- --------------------------------------------------------------------------------
10/31/2007 10/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Net long-term capital gains ...................... $3,032,662 --
------------------------
Total taxable distributions ........................ $3,032,662 --
========================
As of October 31, 2007, the components of accumulated earnings on a tax basis
were as follows:
- -----------------------------------------------------------------------------
Undistributed ordinary income -- net ....................... --
Undistributed long-term capital gains -- net ............... $ 31,388,845
-------------
Total undistributed earnings -- net ........................ 31,388,845
Capital loss carryforward .................................. (13,580,346)*
Unrealized gains -- net .................................... 184,053,656**
-------------
Total accumulated earnings -- net .......................... $ 201,862,155
=============
* On October 31, 2007, the Fund had a net capital loss carryforward of
$13,580,346, of which $7,869,008 expires in 2008, $5,667,758 expires in
2009 and $43,580 expires in 2010. This amount will be available to offset
like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales.
BlackRock Large Cap Value Fund
The tax character of distributions paid during the fiscal years ended October
31, 2007 and October 31, 2006 was as follows:
- --------------------------------------------------------------------------------
10/31/2007 10/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income .............................. $ 2,700,206 $ 26,422,202
Net long-term capital gains .................. 63,586,015 105,314,293
----------------------------
Total taxable distributions .................... $ 66,286,221 $131,736,495
============================
As of October 31, 2007, the components of accumulated earnings on a tax basis
were as follows:
- -------------------------------------------------------------------------------
Undistributed ordinary income -- net ........................ $ 70,385,677
Undistributed long-term capital gains -- net ................ 267,330,238
--------------
Total undistributed earnings -- net ......................... 337,715,915
Capital loss carryforward ................................... --
Unrealized gains -- net ..................................... 698,286,829*
--------------
Total accumulated earnings -- net ........................... $1,036,002,744
==============
* The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales.
6. Acquisition of BlackRock Investment Trust of BlackRock Funds(SM):
On September 24, 2007, BlackRock Large Cap Core Fund ("Large Cap Core") acquired
substantially all of the assets and assumed substantially all of the liabilities
of BlackRock Investment Trust of BlackRock Funds ("Investment Trust"), pursuant
to a plan of reorganization. The acquisition was accomplished by a tax-free
exchange of 72,936,885 shares of beneficial interest of Investment Trust for
80,899,693 shares of common stock of Large Cap Core. Investment Trust's net
assets on that date of $1,133,643,993, including $18,270,415 of net realized
capital losses and $286,539,853 of net unrealized appreciation were combined
with those of Large Cap Core. The aggregate net assets immediately after the
acquisition amounted to $5,393,201,700.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 35
Notes to Financial Statements (concluded)
BlackRock Large Cap Series Funds, Inc.
7. Subsequent Event:
Each Fund paid an ordinary income dividend and/or long-term capital gain
distribution to holders of Common Stock on December 17, 2007 to shareholders of
record on December 13, 2007. The amounts of each distribution per share were as
follows:
- --------------------------------------------------------------------------------
Long-Term
BlackRock Large Cap Core Fund Ordinary Income Capital Gains
- --------------------------------------------------------------------------------
Institutional ............................ $.049768 $.339376
Investor A ............................... $.045746 $.339376
Investor B ............................... $.031999 $.339376
Investor C ............................... $.030924 $.339376
Class R .................................. $.038134 $.339376
- --------------------------------------------------------------------------------
Long-Term
BlackRock Large Cap Growth Fund Ordinary Income Capital Gains
- --------------------------------------------------------------------------------
Institutional ............................ -- $.314815
Investor A ............................... -- $.314815
Investor B ............................... -- $.314815
Investor C ............................... -- $.314815
Class R .................................. -- $.314815
- --------------------------------------------------------------------------------
Long-Term
BlackRock Large Cap Value Fund Ordinary Income Capital Gains
- --------------------------------------------------------------------------------
Institutional ............................ $.341566 $1.038525
Investor A ............................... $.296637 $1.038525
Investor B ............................... $.139629 $1.038525
Investor C ............................... $.168092 $1.038525
Class R .................................. $.260728 $1.038525
- --------------------------------------------------------------------------------
Report of Independent Registered Public Accounting Firm BlackRock Large Cap
Series Funds, Inc.
To the Shareholders and Board of Directors of
BlackRock Large Cap Series Funds, Inc.:
We have audited the accompanying statements of assets and liabilities of
BlackRock Large Cap Series Funds, Inc. (the "Fund"), comprising BlackRock Large
Cap Core Fund, BlackRock Large Cap Growth Fund and BlackRock Large Cap Value
Fund, as of October 31, 2007, and the related statements of operations for the
year then ended, the statements of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the five
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
BlackRock Large Cap Core Fund, BlackRock Large Cap Growth Fund and BlackRock
Large Cap Value Fund of BlackRock Large Cap Series Funds, Inc. as of October 31,
2007, the results of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended, and their
financial highlights for each of the five years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America.
Deloitte & Touche LLP
Princeton, New Jersey
December 26, 2007
36 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Important Tax Information
BlackRock Large Cap Core Fund
The following information is provided with respect to the ordinary income
distributions paid by BlackRock Large Cap Core Fund of BlackRock Large Cap
Series Funds, Inc. to shareholders of record on September 18, 2007:
- -----------------------------------------------------------------------------------------
Qualified Dividend Income for Individuals ........................................ 100%
Dividends Qualifying for the Dividends Received Deduction for Corporations ....... 100%
Short-Term Capital Gain Dividends for Non-U.S. Residents ......................... 100%*
- -----------------------------------------------------------------------------------------
* Represents the portion of the taxable ordinary income dividends eligible
for exemption from U.S. withholding tax for nonresident aliens and foreign
corporations.
Additionally, the Fund paid the following long-term capital gain distributions:
- --------------------------------------------------------------------------------
Record Date Rate Per Share
- --------------------------------------------------------------------------------
December 8, 2006 ............................................... $ .282948
July 18, 2007 .................................................. $ .000068
September 18, 2007 ............................................. $1.014142
- --------------------------------------------------------------------------------
BlackRock Large Cap Growth Fund
During the taxable year ended October 31, 2007, BlackRock Large Cap Growth Fund
of BlackRock Large Cap Series Funds, Inc. distributed long-term capital gains of
$.038564 per share to shareholders of record on December 8, 2006.
BlackRock Large Cap Value Fund
All of the ordinary income distributions paid by BlackRock Large Cap Value Fund
of BlackRock Large Cap Series Funds, Inc. during the fiscal year ended October
31, 2007 qualify for the dividends received deduction for corporations and
consist entirely of qualified dividend income for individuals. Additionally, the
Fund distributed long-term capital gains of $.297173 per share to shareholders
of record on December 8, 2006 and $.001216 per share to shareholders of record
on July 18, 2007.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 37
Proxy Results
During the six-month period ended October 31, 2007, the shareholders in each
Fund* of BlackRock Large Cap Series Funds, Inc. voted on the following proposal,
which was approved at a special shareholders' meeting on September 7, 2007. This
proposal was a part of the reorganization of BlackRock Large Cap Series Funds,
Inc.'s Board of Directors to take effect on or about November 1, 2007. A
description of the proposal and number of shares voted are as follows:
- ------------------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap BlackRock Large Cap BlackRock Large Cap
Core Fund Growth Fund Value Fund
------------------------------- ------------------------------- -------------------------------
Shares Voted Shares Withheld Shares Voted Shares Withheld Shares Voted Shares Withheld
For From Voting For From Voting For From Voting
- ------------------------------------------------------------------------------------------------------------------------------
To elect the BlackRock Large Cap Series Funds, Inc. Board of Directors:
David O. Beim 245,758,813 4,649,694 68,358,013 1,551,610 192,982,739 1,831,642
Richard S. Davis 245,757,280 4,651,227 68,349,341 1,560,282 192,940,925 1,873,456
Ronald W. Forbes 245,757,323 4,651,184 68,356,906 1,552,717 192,984,160 1,830,221
Henry Gabbay 245,744,829 4,663,678 68,346,832 1,562,791 192,988,189 1,826,192
Dr. Matina Horner 245,761,411 4,647,096 68,356,148 1,553,475 192,970,346 1,844,035
Rodney D. Johnson 245,759,181 4,649,326 68,353,308 1,556,315 192,987,016 1,827,365
Herbert I. London 245,758,537 4,649,970 68,358,013 1,551,610 192,987,285 1,827,096
Cynthia A. Montgomery 245,767,771 4,640,736 68,353,684 1,555,939 192,987,500 1,826,881
Joseph P. Platt, Jr. 245,756,469 4,652,038 68,358,013 1,551,610 192,988,805 1,825,576
Robert C. Robb, Jr. 245,754,755 4,653,752 68,349,687 1,559,936 192,986,517 1,827,864
Toby Rosenblatt 245,781,730 4,626,777 68,356,928 1,552,695 192,996,589 1,817,792
Kenneth L. Urish 245,781,772 4,626,735 68,350,780 1,558,843 193,004,576 1,809,805
Frederick W. Winter 245,781,253 4,627,254 68,357,726 1,551,897 193,004,423 1,809,958
- ------------------------------------------------------------------------------------------------------------------------------
* As feeder funds of Master Large Cap Series LLC, the shareholders of
BlackRock Large Cap Series Funds, Inc. also voted to elect the above-named
individuals as Directors of Master Large Cap Series LLC.
38 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Portfolio Information as of October 31, 2007 Master Large Cap Series LLC
Sector Representation
Percent of
Master Large Cap Core Portfolio Long-Term Investments
- --------------------------------------------------------------------------------
Information Technology .............................................. 26.7%
Health Care ......................................................... 15.9
Energy .............................................................. 14.3
Consumer Discretionary .............................................. 13.4
Industrials ......................................................... 12.5
Financials .......................................................... 8.8
Materials ........................................................... 4.0
Consumer Staples .................................................... 2.4
Telecommunication Services .......................................... 1.9
Utilities ........................................................... 0.1
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Long-Term Investments
- --------------------------------------------------------------------------------
Information Technology .............................................. 38.6%
Health Care ......................................................... 16.2
Consumer Discretionary .............................................. 13.6
Industrials ......................................................... 12.8
Energy .............................................................. 7.8
Materials ........................................................... 4.5
Financials .......................................................... 3.3
Consumer Staples .................................................... 3.2
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Long-Term Investments
- --------------------------------------------------------------------------------
Financials .......................................................... 21.2%
Energy .............................................................. 20.3
Information Technology .............................................. 14.0
Health Care ......................................................... 12.9
Industrials ......................................................... 12.8
Materials ........................................................... 5.7
Consumer Discretionary .............................................. 5.1
Consumer Staples .................................................... 4.2
Telecommunication Services .......................................... 2.5
Utilities ........................................................... 1.3
- --------------------------------------------------------------------------------
For Portfolio compliance purposes, 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.
Five Largest Industries
Percent of
Master Large Cap Core Portfolio Net Assets
- --------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels ......................................... 12.9%
Health Care Providers & Services .................................... 11.1
Computers & Peripherals ............................................. 7.3
Insurance ........................................................... 7.0
Software ............................................................ 6.6
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Net Assets
- --------------------------------------------------------------------------------
Health Care Providers & Services .................................... 10.4%
Software ............................................................ 10.0
Computers & Peripherals ............................................. 9.9
Semiconductors & Semiconductor Equipment ............................ 6.0
Oil, Gas & Consumable Fuels ......................................... 5.7
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Net Assets
- --------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels ......................................... 18.5%
Insurance ........................................................... 14.8
Health Care Providers & Services .................................... 8.2
Machinery ........................................................... 4.6
Software ............................................................ 4.5
- --------------------------------------------------------------------------------
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 39
Portfolio Information as of October 31, 2007 (concluded)
Master Large Cap Series LLC
Ten Largest Equity Holdings
Percent of
Master Large Cap Core Portfolio Net Assets
- --------------------------------------------------------------------------------
Exxon Mobil Corp. .................................................... 4.0%
Chevron Corp. ........................................................ 2.2
Cisco Systems, Inc. .................................................. 2.2
International Business Machines Corp. ................................ 2.1
ConocoPhillips ....................................................... 1.8
Hewlett-Packard Co. .................................................. 1.8
American International Group, Inc. ................................... 1.8
General Electric Co. ................................................. 1.7
Microsoft Corp. ...................................................... 1.6
Oracle Corp. ......................................................... 1.6
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Net Assets
- --------------------------------------------------------------------------------
Cisco Systems, Inc. .................................................. 3.1%
Hewlett-Packard Co. .................................................. 2.6
International Business Machines Corp. ................................ 2.5
Oracle Corp. ......................................................... 2.1
Dell, Inc. ........................................................... 1.9
UnitedHealth Group, Inc. ............................................. 1.8
EMC Corp. ............................................................ 1.7
Microsoft Corp. ...................................................... 1.7
Schering-Plough Corp. ................................................ 1.5
Honeywell International, Inc. ........................................ 1.5
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Net Assets
- --------------------------------------------------------------------------------
Exxon Mobil Corp. .................................................... 6.2%
Chevron Corp. ........................................................ 3.6
General Electric Co. ................................................. 3.0
ConocoPhillips ....................................................... 2.9
American International Group, Inc. ................................... 2.7
JPMorgan Chase & Co. ................................................. 2.3
Marathon Oil Corp. ................................................... 1.6
Walt Disney Co. ...................................................... 1.5
Deere & Co. .......................................................... 1.5
The Travelers Cos., Inc. ............................................. 1.5
- --------------------------------------------------------------------------------
40 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007 Master Large Cap Core Portfolio
Shares
Industry Common Stocks Held Value
===============================================================================
Consumer Discretionary -- 13.8%
Diversified Consumer Services -- 2.1%
Apollo Group, Inc. Class A (a)(c) 800,000 $ 63,408,000
ITT Educational Services, Inc. (a) 410,000 52,147,900
--------------
115,555,900
- -------------------------------------------------------------------------------
Hotels, Restaurants & Leisure -- 0.5%
Darden Restaurants, Inc. 640,000 27,520,000
- -------------------------------------------------------------------------------
Household Durables -- 0.2%
Whirlpool Corp. (c) 106,000 8,393,080
- -------------------------------------------------------------------------------
Internet & Catalog Retail -- 1.0%
Amazon.com, Inc. (a)(c) 550,000 49,032,500
Expedia, Inc. (a)(c) 208,000 6,793,280
--------------
55,825,780
- -------------------------------------------------------------------------------
Internet Software & Services -- 0.4%
eBay, Inc. (a)(c) 690,000 24,909,000
- -------------------------------------------------------------------------------
Media -- 2.2%
Omnicom Group Inc. 910,000 46,391,800
Walt Disney Co. (c) 2,324,400 80,493,972
--------------
126,885,772
- -------------------------------------------------------------------------------
Multiline Retail -- 2.4%
Big Lots, Inc. (a)(c) 2,100,000 50,358,000
Dollar Tree Stores, Inc. (a) 1,307,000 50,058,100
Family Dollar Stores, Inc. (c) 1,420,000 35,997,000
--------------
136,413,100
- -------------------------------------------------------------------------------
Specialty Retail -- 3.8%
AutoZone, Inc. (a)(c) 360,000 44,787,600
GameStop Corp. Class A (a) 1,070,000 63,365,400
RadioShack Corp. (c) 2,060,800 42,493,696
The Sherwin-Williams Co. (c) 920,000 58,806,400
TJX Cos., Inc. (c) 266,200 7,701,166
--------------
217,154,262
- -------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods -- 1.2%
Nike, Inc. Class B 1,020,000 67,585,200
- -------------------------------------------------------------------------------
Total Consumer Discretionary 780,242,094
===============================================================================
Consumer Staples -- 2.4%
Beverages -- 0.5%
The Coca-Cola Co. 310,500 19,176,480
Pepsi Bottling Group, Inc. 170,000 7,323,600
--------------
26,500,080
- -------------------------------------------------------------------------------
Food & Staples Retailing -- 1.2%
The Kroger Co. 2,270,000 66,715,300
- -------------------------------------------------------------------------------
Food Products -- 0.1%
Tyson Foods, Inc. Class A 470,000 7,426,000
- -------------------------------------------------------------------------------
Household Products -- 0.6%
Energizer Holdings, Inc. (a) 60,200 6,278,860
The Procter & Gamble Co. 360,000 25,027,200
--------------
31,306,060
- -------------------------------------------------------------------------------
Total Consumer Staples 131,947,440
===============================================================================
Energy -- 14.3%
Energy Equipment & Services -- 1.4%
ENSCO International, Inc. 420,000 23,305,800
Global Industries Ltd. (a) 850,000 20,927,000
Tidewater, Inc. 630,000 34,442,100
--------------
78,674,900
- -------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 12.9%
Chevron Corp. 1,384,500 126,695,595
ConocoPhillips 1,210,000 102,801,600
Exxon Mobil Corp. 2,442,900 224,722,371
Frontier Oil Corp. 1,210,000 55,405,900
Holly Corp. 670,000 42,076,000
Marathon Oil Corp. 970,000 57,356,100
Tesoro Corp. (c) 890,000 53,871,700
Valero Energy Corp. 960,000 67,612,800
--------------
730,542,066
- -------------------------------------------------------------------------------
Total Energy 809,216,966
===============================================================================
Financials -- 8.8%
Capital Markets -- 1.0%
The Goldman Sachs Group, Inc. (c) 90,000 22,312,800
Janus Capital Group, Inc. (c) 1,050,000 36,235,500
--------------
58,548,300
- -------------------------------------------------------------------------------
Diversified Financial Services -- 0.8%
Bank of America Corp. 510,000 24,622,800
Citigroup, Inc. 470,000 19,693,000
--------------
44,315,800
- -------------------------------------------------------------------------------
Insurance -- 7.0%
ACE Ltd. 95,300 5,776,133
AON Corp. (c) 720,000 32,630,400
American International Group, Inc. 1,620,000 102,254,400
Chubb Corp. 1,030,000 54,950,500
MetLife, Inc. 970,000 66,784,500
The Travelers Cos., Inc. 1,300,000 67,873,000
UnumProvident Corp. (c) 262,700 6,131,418
XL Capital Ltd. Class A 830,000 59,718,500
--------------
396,118,851
- -------------------------------------------------------------------------------
Total Financials 498,982,951
===============================================================================
Health Care -- 15.9%
Health Care Equipment & Supplies -- 1.0%
Baxter International, Inc. 103,900 6,235,039
Kinetic Concepts, Inc. (a)(c) 842,200 50,616,220
--------------
56,851,259
- -------------------------------------------------------------------------------
Health Care Providers & Services -- 11.1%
Aetna, Inc. 1,260,000 70,774,200
AmerisourceBergen Corp. 876,000 41,268,360
Cigna Corp. 490,000 25,720,100
Coventry Health Care, Inc. (a) 810,000 48,851,100
Express Scripts, Inc. (a) 1,050,000 66,255,000
Humana, Inc. (a) 820,000 61,459,000
Laboratory Corp. of America Holdings (a)(c) 510,000 35,062,500
McKesson Corp. (c) 800,000 52,880,000
Medco Health Solutions, Inc. (a) 740,000 69,841,200
UnitedHealth Group, Inc. 1,650,000 81,097,500
WellPoint, Inc. (a) 940,000 74,476,200
--------------
627,685,160
- -------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.8%
Invitrogen Corp. (a) 69,600 6,324,552
Waters Corp. (a)(c) 530,000 40,799,400
--------------
47,123,952
- -------------------------------------------------------------------------------
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 41
Schedule of Investments (continued) Master Large Cap Core Portfolio
Shares
Industry Common Stocks Held Value
===============================================================================
Health Care (concluded)
Pharmaceuticals -- 3.0%
Eli Lilly & Co. 196,200 $ 10,624,230
Johnson & Johnson 220,000 14,337,400
Merck & Co., Inc. 372,900 21,725,154
Pfizer, Inc. 2,632,700 64,790,747
Schering-Plough Corp. 1,790,000 54,630,800
--------------
166,108,331
- -------------------------------------------------------------------------------
Total Health Care 897,768,702
===============================================================================
Industrials -- 12.6%
Aerospace & Defense -- 4.2%
Honeywell International, Inc. 1,230,000 74,304,300
L-3 Communications Holdings, Inc. 220,000 24,120,800
Lockheed Martin Corp. 610,800 67,212,432
Raytheon Co. 1,087,000 69,144,070
--------------
234,781,602
- -------------------------------------------------------------------------------
Airlines -- 0.7%
Continental Airlines, Inc. Class B (a)(c) 1,200,000 41,220,000
- -------------------------------------------------------------------------------
Commercial Services & Supplies -- 0.2%
Allied Waste Industries, Inc. (a) 620,700 7,845,648
- -------------------------------------------------------------------------------
Construction & Engineering -- 1.1%
Fluor Corp. (c) 390,000 61,620,000
- -------------------------------------------------------------------------------
Electrical Equipment -- 1.5%
Rockwell Automation, Inc. (c) 890,000 61,303,200
Thomas & Betts Corp. (a) 440,000 24,644,400
--------------
85,947,600
- -------------------------------------------------------------------------------
Industrial Conglomerates -- 1.7%
General Electric Co. 2,340,000 96,314,400
- -------------------------------------------------------------------------------
Machinery -- 3.2%
Deere & Co. 460,000 71,254,000
Eaton Corp. 83,900 7,767,462
Manitowoc Co. 1,040,000 51,230,400
Parker Hannifin Corp. 550,000 44,203,500
Toro Co. (c) 140,000 7,792,400
--------------
182,247,762
- -------------------------------------------------------------------------------
Total Industrials 709,977,012
===============================================================================
Information Technology -- 26.3%
Communications Equipment -- 3.3%
Cisco Systems, Inc. (a) 3,826,000 126,487,560
Juniper Networks, Inc. (a) 1,730,000 62,280,000
--------------
188,767,560
- -------------------------------------------------------------------------------
Computers & Peripherals -- 7.3%
Dell, Inc. (a)(c) 2,160,000 66,096,000
EMC Corp. (a)(c) 2,970,000 75,408,300
Hewlett-Packard Co. 1,984,000 102,533,120
International Business Machines Corp. 1,002,900 116,456,748
Seagate Technology 1,810,000 50,390,400
Western Digital Corp. (a) 60,000 1,555,200
--------------
412,439,768
- -------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.8%
Avnet, Inc. (a) 800,000 33,376,000
Mettler Toledo International, Inc. (a) 130,000 13,825,500
--------------
47,201,500
- -------------------------------------------------------------------------------
IT Services -- 3.4%
Accenture Ltd. Class A (c) 1,640,000 64,042,000
Computer Sciences Corp. (a)(c) 792,900 46,297,431
DST Systems, Inc. (a)(c) 540,000 45,743,400
Electronic Data Systems Corp. 1,770,000 38,214,300
--------------
194,297,131
- -------------------------------------------------------------------------------
Office Electronics -- 0.8%
Xerox Corp. (a) 2,580,000 44,995,200
- -------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 4.1%
Applied Materials, Inc. 3,330,000 64,668,600
Integrated Device Technology, Inc. (a) 1,340,000 17,996,200
Intersil Corp. Class A 330,000 10,012,200
KLA-Tencor Corp. (c) 780,000 41,067,000
Novellus Systems, Inc. (a) 1,420,000 40,342,200
Nvidia Corp. (a) 1,610,000 56,961,800
--------------
231,048,000
- -------------------------------------------------------------------------------
Software -- 6.6%
BMC Software, Inc. (a) 1,730,000 58,543,200
CA, Inc. (c) 590,000 15,605,500
Cadence Design Systems, Inc. (a)(c) 1,782,600 34,938,960
Compuware Corp. (a) 1,110,000 11,100,000
McAfee, Inc. (a) 1,280,000 52,928,000
Microsoft Corp. 2,400,700 88,369,767
Oracle Corp. (a) 3,980,000 88,236,600
Synopsys, Inc. (a) 700,000 19,782,000
--------------
369,504,027
- -------------------------------------------------------------------------------
Total Information Technology 1,488,253,186
===============================================================================
Materials -- 4.0%
Chemicals -- 1.3%
Eastman Chemical Co. 141,900 9,449,121
Lubrizol Corp. 86,200 5,851,256
The Mosaic Co. (a) 830,000 57,934,000
--------------
73,234,377
- -------------------------------------------------------------------------------
Containers & Packaging -- 0.5%
Packaging Corp. of America (c) 830,000 26,427,200
- -------------------------------------------------------------------------------
Metals & Mining -- 1.1%
Southern Copper Corp. (c) 450,000 62,865,000
- -------------------------------------------------------------------------------
Paper & Forest Products -- 1.1%
International Paper Co. (c) 1,730,000 63,940,800
- -------------------------------------------------------------------------------
Total Materials 226,467,377
===============================================================================
42 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Schedule of Investments (concluded) Master Large Cap Core Portfolio
Shares
Industry Common Stocks Held Value
===============================================================================
Telecommunication Services -- 1.9%
Diversified Telecommunication Services -- 1.9%
AT&T Inc. 910,000 $ 38,028,900
Qwest Communications International Inc. (a)(c) 7,450,000 53,491,000
Verizon Communications, Inc. 317,491 14,626,810
- -------------------------------------------------------------------------------
Total Telecommunication Services 106,146,710
===============================================================================
Utilities -- 0.1%
Electric Utilities -- 0.1%
Edison International 128,600 7,478,090
- -------------------------------------------------------------------------------
Total Utilities 7,478,090
===============================================================================
Total Common Stocks (Cost -- $4,694,109,534) -- 100.1% 5,656,480,528
===============================================================================
Beneficial
Short-Term Securities Interest Value
===============================================================================
BlackRock Liquidity Series, LLC
Money Market Series, 5.04% (b)(d)(e) $882,440,300 $ 882,440,300
- -------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $882,440,300) -- 15.6% 882,440,300
===============================================================================
Total Investments
(Cost -- $5,576,549,834*) -- 115.7% 6,538,920,828
Liabilities in Excess of Other Assets -- (15.7%) (889,189,839)
--------------
Net Assets -- 100.0% $5,649,730,989
==============
* The cost and unrealized appreciation (depreciation) of investments as of
October 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ....................................... $ 5,590,044,063
===============
Gross unrealized appreciation ........................ $ 1,061,508,790
Gross unrealized depreciation ........................ (112,632,025)
---------------
Net unrealized appreciation .......................... $ 948,876,765
===============
(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 October 31, 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 -- $ 55,193
BlackRock Liquidity Series, LLC
Money Market Series $233,561,500 $ 1,434,000
- --------------------------------------------------------------------------------
o For Portfolio compliance purposes, the Portfolio's sector and industry
classifications refer to any one or more of the industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by 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. These sector and industry
classifications are unaudited.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 43
Schedule of Investments as of October 31, 2007
Master Large Cap Growth Portfolio
Shares
Industry Common Stocks Held Value
===============================================================================
Consumer Discretionary -- 13.6%
Diversified Consumer Services -- 2.3%
Apollo Group, Inc. Class A (b)(d) 180,000 $ 14,266,800
ITT Educational Services, Inc. (b)(d) 110,000 13,990,900
--------------
28,257,700
- -------------------------------------------------------------------------------
Hotels, Restaurants & Leisure -- 0.8%
Darden Restaurants, Inc. 220,000 9,460,000
- -------------------------------------------------------------------------------
Media -- 2.2%
Omnicom Group Inc. 234,000 11,929,320
Walt Disney Co. (d) 460,000 15,929,800
--------------
27,859,120
- -------------------------------------------------------------------------------
Multiline Retail -- 2.7%
Big Lots, Inc. (b)(d) 450,000 10,791,000
Dollar Tree Stores, Inc. (b)(d) 330,000 12,639,000
Family Dollar Stores, Inc. (d) 380,000 9,633,000
--------------
33,063,000
- -------------------------------------------------------------------------------
Specialty Retail -- 4.6%
AutoZone, Inc. (b)(d) 90,000 11,196,900
GameStop Corp. Class A (b) 240,000 14,212,800
Men's Wearhouse, Inc. 177,000 7,480,020
RadioShack Corp. (d) 540,000 11,134,800
The Sherwin-Williams Co. 200,000 12,784,000
--------------
56,808,520
- -------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods -- 1.0%
Nike, Inc. Class B 190,000 12,589,400
- -------------------------------------------------------------------------------
Total Consumer Discretionary 168,037,740
===============================================================================
Consumer Staples -- 3.3%
Beverages -- 1.1%
Pepsi Bottling Group, Inc. 310,000 13,354,800
- -------------------------------------------------------------------------------
Food & Staples Retailing -- 1.2%
The Kroger Co. 480,000 14,107,200
- -------------------------------------------------------------------------------
Household Products -- 1.0%
Energizer Holdings, Inc. (b)(d) 120,000 12,516,000
- -------------------------------------------------------------------------------
Total Consumer Staples 39,978,000
===============================================================================
Energy -- 7.8%
Energy Equipment & Services -- 2.1%
ENSCO International, Inc. 230,000 12,762,700
Global Industries Ltd. (b) 90,000 2,215,800
Tidewater, Inc. 210,000 11,480,700
--------------
26,459,200
- -------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 5.7%
Exxon Mobil Corp. 173,000 15,914,270
Frontier Oil Corp. 290,000 13,279,100
Holly Corp. (d) 190,000 11,932,000
Tesoro Corp. 210,000 12,711,300
Valero Energy Corp. 230,000 16,198,900
--------------
70,035,570
- -------------------------------------------------------------------------------
Total Energy 96,494,770
===============================================================================
Financials -- 3.3%
Capital Markets -- 1.1%
Janus Capital Group, Inc. (d) 390,000 13,458,900
- -------------------------------------------------------------------------------
Insurance -- 2.2%
CNA Financial Corp. (d) 200,000 7,926,000
PartnerRe Ltd. 150,000 12,487,500
Transatlantic Holdings, Inc. 70,000 5,217,100
XL Capital Ltd. Class A 20,000 1,439,000
--------------
27,069,600
- -------------------------------------------------------------------------------
Total Financials 40,528,500
===============================================================================
Health Care -- 16.2%
Health Care Equipment & Supplies -- 1.0%
Kinetic Concepts, Inc. (b)(d) 210,000 12,621,000
- -------------------------------------------------------------------------------
Health Care Providers & Services -- 10.4%
Aetna, Inc. 290,000 16,289,300
AmerisourceBergen Corp. 100,000 4,711,000
Coventry Health Care, Inc. (b) 230,000 13,871,300
Express Scripts, Inc. (b) 230,000 14,513,000
Humana, Inc. (b) 180,000 13,491,000
McKesson Corp. 151,900 10,040,590
Medco Health Solutions, Inc. (b) 180,000 16,988,400
UnitedHealth Group, Inc. 460,000 22,609,000
WellPoint, Inc. (b) 200,000 15,846,000
--------------
128,359,590
- -------------------------------------------------------------------------------
Life Sciences Tools & Services -- 2.7%
Invitrogen Corp. (b)(d) 150,000 13,630,500
PerkinElmer, Inc. 200,000 5,504,000
Waters Corp. (b) 186,000 14,318,280
--------------
33,452,780
- -------------------------------------------------------------------------------
Pharmaceuticals -- 2.1%
Eli Lilly & Co. 50,000 2,707,500
Pfizer, Inc. 177,600 4,370,736
Schering-Plough Corp. (d) 600,000 18,312,000
--------------
25,390,236
- -------------------------------------------------------------------------------
Total Healthcare 199,823,606
===============================================================================
Industrials -- 12.8%
Aerospace & Defense -- 5.0%
Honeywell International, Inc. 300,000 18,123,000
L-3 Communications Holdings, Inc. 120,000 13,156,800
Lockheed Martin Corp. (d) 142,000 15,625,680
Raytheon Co. 230,000 14,630,300
--------------
61,535,780
- -------------------------------------------------------------------------------
Commercial Services & Supplies -- 1.7%
Allied Waste Industries, Inc. (b)(d) 890,000 11,249,600
Steelcase, Inc. Class A 550,000 9,828,500
--------------
21,078,100
- -------------------------------------------------------------------------------
44 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Schedule of Investments (continued) Master Large Cap Growth Portfolio
Shares
Industry Common Stocks Held Value
===============================================================================
Industrials (concluded)
Construction & Engineering -- 1.2%
Fluor Corp. (d) 90,000 $ 14,220,000
- -------------------------------------------------------------------------------
Electrical Equipment -- 2.1%
Rockwell Automation, Inc. (d) 200,000 13,776,000
Thomas & Betts Corp. (b) 220,000 12,322,200
--------------
26,098,200
- -------------------------------------------------------------------------------
Industrial Conglomerates -- 0.8%
Textron, Inc. 150,000 10,381,500
- -------------------------------------------------------------------------------
Machinery -- 2.0%
Manitowoc Co. 270,000 13,300,200
Toro Co. 210,000 11,688,600
--------------
24,988,800
- -------------------------------------------------------------------------------
Total Industrials 158,302,380
===============================================================================
Information Technology -- 38.7%
Communications Equipment -- 4.3%
Cisco Systems, Inc. (b) 1,170,000 38,680,200
Juniper Networks, Inc. (b) 410,000 14,760,000
--------------
53,440,200
- -------------------------------------------------------------------------------
Computers & Peripherals -- 9.9%
Dell, Inc. (b) 750,000 22,950,000
EMC Corp. (b) 840,000 21,327,600
Hewlett-Packard Co. 620,000 32,041,600
International Business Machines Corp. 270,000 31,352,400
Seagate Technology 490,000 13,641,600
Western Digital Corp. (b) 30,000 777,600
--------------
122,090,800
- -------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 2.9%
Agilent Technologies, Inc. (b) 225,000 8,291,250
Avnet, Inc. (b)(d) 310,000 12,933,200
Mettler Toledo International, Inc. (b) 130,000 13,825,500
--------------
35,049,950
- -------------------------------------------------------------------------------
IT Services -- 4.4%
Accenture Ltd. Class A 400,000 15,620,000
DST Systems, Inc. (b)(d) 160,000 13,553,600
Electronic Data Systems Corp. 560,000 12,090,400
Hewitt Associates, Inc. Class A (b) 360,000 12,700,800
--------------
53,964,800
- -------------------------------------------------------------------------------
Internet Software & Services -- 1.2%
eBay, Inc. (b) 410,000 14,801,000
- -------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 6.0%
Applied Materials, Inc. 760,000 14,759,200
Integrated Device Technology, Inc. (b)(d) 690,000 9,266,700
Intersil Corp. Class A 390,000 11,832,600
KLA-Tencor Corp. (d) 230,000 12,109,500
Novellus Systems, Inc. (b) 370,000 10,511,700
Nvidia Corp. (b) 440,000 15,567,200
--------------
74,046,900
- -------------------------------------------------------------------------------
Software -- 10.0%
BMC Software, Inc. (b) 400,000 13,536,000
CA, Inc. (d) 500,000 13,225,000
Cadence Design Systems, Inc. (b)(d) 570,000 11,172,000
Compuware Corp. (b)(d) 1,180,000 11,800,000
McAfee, Inc. (b)(d) 360,000 14,886,000
Microsoft Corp. 560,000 20,613,600
Oracle Corp. (b) 1,160,000 25,717,200
Synopsys, Inc. (b)(d) 460,000 12,999,600
--------------
123,949,400
- -------------------------------------------------------------------------------
Total Information Technology 477,343,050
===============================================================================
Materials -- 4.5%
Chemicals -- 1.1%
The Mosaic Co. (b) 200,000 13,960,000
- -------------------------------------------------------------------------------
Containers & Packaging -- 2.3%
Owens-Illinois, Inc. (b) 320,000 14,214,400
Packaging Corp. of America (d) 430,000 13,691,200
--------------
27,905,600
- -------------------------------------------------------------------------------
Metals & Mining -- 1.1%
Southern Copper Corp. (d) 100,000 13,970,000
- -------------------------------------------------------------------------------
Total Materials 55,835,600
===============================================================================
Total Common Stocks (Cost -- $1,044,186,057) -- 100.2% 1,236,343,646
===============================================================================
===============================================================================
Short-Term Beneficial
Securities Interest
===============================================================================
BlackRock Liquidity Series, LLC Cash Sweep
Series, 4.96% (a)(c) $ 1,956,307 1,956,307
BlackRock Liquidity Series, LLC Money Market
Series, 5.04% (a)(c)(e) 195,907,400 195,907,400
- -------------------------------------------------------------------------------
Total Short-Term Securities (Cost -- $197,863,707) -- 16.0% 197,863,707
===============================================================================
Total Investments (Cost -- $1,242,049,764*) -- 116.2% 1,434,207,353
Liabilities in Excess of Other Assets -- (16.2%) (200,212,125)
--------------
Net Assets -- 100.0% $1,233,995,228
==============
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 45
Schedule of Investments (concluded) Master Large Cap Growth Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
October 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ....................................... $ 1,244,546,152
===============
Gross unrealized appreciation ........................ $ 210,961,051
Gross unrealized depreciation ........................ (21,299,850)
---------------
Net unrealized appreciation .......................... $ 189,661,201
===============
(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 $ 1,651,651 $ 172,168
BlackRock Liquidity Series, LLC
Money Market Series $97,946,550 $ 301,799
--------------------------------------------------------------------------
(b) Non-income producing security.
(c) Represents the current yield as of October 31, 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
sector and industry sub-classifications for reporting ease. Sectors and
industries are shown as a percent of net assets. These sector and industry
classifications are unaudited.
See Notes to Financial Statements.
46 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
Master Large Cap Value Portfolio
Shares
Industry Common Stocks Held Value
===============================================================================
Consumer Discretionary -- 5.1%
Diversified Consumer Services -- 0.1%
Service Corp. International 470,000 $ 6,800,900
- -------------------------------------------------------------------------------
Media -- 1.5%
Walt Disney Co. (d) 2,360,000 81,726,800
- -------------------------------------------------------------------------------
Multiline Retail -- 1.6%
Dollar Tree Stores, Inc. (c)(d) 1,190,000 45,577,000
Family Dollar Stores, Inc. (d) 1,510,000 38,278,500
--------------
83,855,500
- -------------------------------------------------------------------------------
Specialty Retail -- 1.9%
RadioShack Corp. (d) 2,700,000 55,674,000
The Sherwin-Williams Co. (d) 760,000 48,579,200
--------------
104,253,200
- -------------------------------------------------------------------------------
Total Consumer Discretionary 276,636,400
===============================================================================
Consumer Staples -- 4.2%
Beverages -- 1.4%
Pepsi Bottling Group, Inc. 1,180,000 50,834,400
PepsiAmericas, Inc. (d) 630,000 22,503,600
--------------
73,338,000
- -------------------------------------------------------------------------------
Food & Staples Retailing -- 1.1%
The Kroger Co. 2,100,000 61,719,000
- -------------------------------------------------------------------------------
Food Products -- 0.9%
The J.M. Smucker Co. 290,000 15,494,700
Tyson Foods, Inc. Class A 2,160,000 34,128,000
--------------
49,622,700
- -------------------------------------------------------------------------------
Household Products -- 0.8%
Energizer Holdings, Inc. (c)(d) 400,000 41,720,000
- -------------------------------------------------------------------------------
Total Consumer Staples 226,399,700
===============================================================================
Energy -- 20.4%
Energy Equipment & Services -- 1.9%
ENSCO International, Inc. 960,000 53,270,400
Tidewater, Inc. 940,000 51,389,800
--------------
104,660,200
- -------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 18.5%
Chevron Corp. 2,120,000 194,001,200
ConocoPhillips 1,810,000 153,777,600
Exxon Mobil Corp. 3,630,000 333,923,700
Frontier Oil Corp. 1,230,000 56,321,700
Marathon Oil Corp. 1,480,000 87,512,400
Occidental Petroleum Corp. 820,000 56,621,000
Sunoco, Inc. 70,000 5,152,000
Tesoro Corp. (d) 840,000 50,845,200
Valero Energy Corp. 810,000 57,048,300
--------------
995,203,100
- -------------------------------------------------------------------------------
Total Energy 1,099,863,300
===============================================================================
Financials -- 21.2%
Capital Markets -- 2.4%
The Goldman Sachs Group, Inc. 300,000 $ 74,376,000
Janus Capital Group, Inc. (d) 1,610,000 55,561,100
--------------
129,937,100
- -------------------------------------------------------------------------------
Diversified Financial Services -- 4.0%
Bank of America Corp. 950,000 45,866,000
Citigroup, Inc. 1,100,000 46,090,000
JPMorgan Chase & Co. 2,630,000 123,610,000
--------------
215,566,000
- -------------------------------------------------------------------------------
Insurance -- 14.8%
ACE Ltd. 380,000 23,031,800
AON Corp. (d) 1,420,000 64,354,400
American Financial Group, Inc. (d) 540,000 16,146,000
American International Group, Inc. 2,320,000 146,438,400
CNA Financial Corp. (d) 440,000 17,437,200
Chubb Corp. 1,290,000 68,821,500
Everest Re Group Ltd. 530,000 56,466,200
Loews Corp. 340,000 16,690,600
MetLife, Inc. (d) 1,110,000 76,423,500
PartnerRe Ltd. 510,000 42,457,500
RenaissanceRe Holdings Ltd. 530,000 30,920,200
Safeco Corp. (d) 660,000 38,214,000
The Travelers Cos., Inc. 1,510,000 78,837,100
UnumProvident Corp. 2,160,000 50,414,400
W.R. Berkley Corp. 370,000 11,133,300
XL Capital Ltd. Class A 850,000 61,157,500
--------------
798,943,600
- -------------------------------------------------------------------------------
Total Financials 1,144,446,700
===============================================================================
Health Care -- 12.9%
Health Care Equipment & Supplies -- 1.0%
Kinetic Concepts, Inc. (c)(d) 860,000 51,686,000
- -------------------------------------------------------------------------------
Health Care Providers & Services -- 8.2%
Aetna, Inc. 1,100,000 61,787,000
AmerisourceBergen Corp. 1,130,000 53,234,300
Cigna Corp. (d) 950,000 49,865,500
Coventry Health Care, Inc. (c) 940,000 56,691,400
Health Net, Inc. (c) 110,000 5,897,100
Humana, Inc. (c) 360,000 26,982,000
McKesson Corp. (d) 890,000 58,829,000
Medco Health Solutions, Inc. (c) 600,000 56,628,000
WellPoint, Inc. (c) 940,000 74,476,200
--------------
444,390,500
- -------------------------------------------------------------------------------
Life Sciences Tools & Services -- 1.4%
Invitrogen Corp. (c) 680,000 61,791,600
PerkinElmer, Inc. 480,000 13,209,600
--------------
75,001,200
- -------------------------------------------------------------------------------
Pharmaceuticals -- 2.3%
Eli Lilly & Co. 1,140,000 61,731,000
King Pharmaceuticals, Inc. (c)(d) 2,190,000 23,214,000
Pfizer, Inc. 1,697,100 41,765,631
--------------
126,710,631
- -------------------------------------------------------------------------------
Total Healthcare 697,788,331
===============================================================================
Industrials -- 12.8%
Aerospace & Defense -- 4.5%
Honeywell International, Inc. 1,020,000 61,618,200
L-3 Communications Holdings, Inc. (d) 550,000 60,302,000
Northrop Grumman Corp. 670,000 56,025,400
Raytheon Co. 1,010,000 64,246,100
--------------
242,191,700
- -------------------------------------------------------------------------------
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 47
Schedule of Investments (continued) Master Large Cap Value Portfolio
Shares
Industry Common Stocks Held Value
===============================================================================
Industrials (concluded)
Commercial Services & Supplies -- 0.7%
Manpower, Inc. 490,000 $ 36,622,600
Waste Management, Inc. 70,000 2,547,300
--------------
39,169,900
- -------------------------------------------------------------------------------
Industrial Conglomerates -- 3.0%
General Electric Co. 3,920,000 161,347,200
Teleflex, Inc. 20,000 1,464,200
--------------
162,811,400
- -------------------------------------------------------------------------------
Machinery -- 4.6%
AGCO Corp. (c)(d) 310,000 18,500,800
Deere & Co. 520,000 80,548,000
Gardner Denver, Inc. (c) 540,000 19,510,200
Parker Hannifin Corp. 790,000 63,492,300
SPX Corp. (d) 630,000 63,819,000
--------------
245,870,300
- -------------------------------------------------------------------------------
Total Industrials 690,043,300
===============================================================================
Information Technology -- 14.0%
Communications Equipment -- 0.0%
Juniper Networks, Inc. (c) 10,000 360,000
- -------------------------------------------------------------------------------
Computers & Peripherals -- 3.5%
EMC Corp. (c) 2,270,000 57,635,300
Hewlett-Packard Co. 1,030,000 53,230,400
International Business Machines Corp. 650,000 75,478,000
--------------
186,343,700
- -------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 1.1%
Avnet, Inc. (c)(d) 1,390,000 57,990,800
- -------------------------------------------------------------------------------
IT Services -- 2.1%
Computer Sciences Corp. (c)(d) 1,100,000 64,229,000
Electronic Data Systems Corp. 2,070,000 44,691,300
Hewitt Associates, Inc. Class A (c) 150,000 5,292,000
--------------
114,212,300
- -------------------------------------------------------------------------------
Office Electronics -- 1.1%
Xerox Corp. (c) 3,490,000 60,865,600
- -------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 1.7%
Integrated Device Technology, Inc. (c) 900,000 12,087,000
Intersil Corp. Class A 140,000 4,247,600
KLA-Tencor Corp. (d) 480,000 25,272,000
Novellus Systems, Inc. (c) 1,810,000 51,422,100
--------------
93,028,700
- -------------------------------------------------------------------------------
Software -- 4.5%
BMC Software, Inc. (c)(d) 1,050,000 35,532,000
CA, Inc. (d) 1,370,000 36,236,500
Cadence Design Systems, Inc. (c)(d) 2,660,000 52,136,000
Compuware Corp. (c) 3,490,000 34,900,000
McAfee, Inc. (c) 1,360,000 56,236,000
Novell, Inc. (c) 150,000 1,134,000
Synopsys, Inc. (c) 920,000 25,999,200
--------------
242,173,700
- -------------------------------------------------------------------------------
Total Information Technology 754,974,800
===============================================================================
Materials -- 5.7%
Chemicals -- 2.0%
E.I. du Pont de Nemours & Co. 280,000 13,862,800
FMC Corp. 580,000 33,350,000
Lubrizol Corp. 52,800 3,584,064
The Mosaic Co. (c) 850,000 59,330,000
--------------
110,126,864
- -------------------------------------------------------------------------------
Containers & Packaging -- 1.0%
Owens-Illinois, Inc. (c) 1,240,000 55,080,800
- -------------------------------------------------------------------------------
Metals & Mining -- 1.4%
Commercial Metals Co. 450,000 14,121,000
United States Steel Corp. 560,000 60,424,000
--------------
74,545,000
- -------------------------------------------------------------------------------
Paper & Forest Products -- 1.3%
International Paper Co. (d) 1,840,000 68,006,400
- -------------------------------------------------------------------------------
Total Materials 307,759,064
===============================================================================
Telecommunication Services -- 2.5%
Diversified Telecommunication Services -- 2.5%
AT&T Inc. 1,870,000 78,147,300
Qwest Communications International Inc. (c)(d) 7,630,000 54,783,400
- -------------------------------------------------------------------------------
Total Telecommunication Services 132,930,700
===============================================================================
Utilities -- 1.4%
Multi-Utilities -- 1.4%
CMS Energy Corp. (d) 2,280,000 38,691,600
NiSource, Inc. 1,620,000 33,129,000
- -------------------------------------------------------------------------------
Total Utilities 71,820,600
===============================================================================
Total Common Stocks
(Cost -- $4,686,469,455) -- 100.2% 5,402,662,895
===============================================================================
===============================================================================
Short-Term Beneficial
Securities Interest
===============================================================================
BlackRock Liquidity Series, LLC
Cash Sweep Series, 4.96% (a)(e) $ 10,615 10,615
BlackRock Liquidity Series, LLC
Money Market Series, 5.04% (a)(b)(e) 571,092,250 571,092,250
- -------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $571,102,865) -- 10.6% 571,102,865
===============================================================================
Total Investments
(Cost -- $5,257,572,320*) -- 110.8% 5,973,765,760
Liabilities in Excess of Other Assets -- (10.8%) (581,611,209)
--------------
Net Assets -- 100.0% $5,392,154,551
==============
48 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Schedule of Investments (concluded) Master Large Cap Value Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
October 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ........................................ $5,266,913,336
==============
Gross unrealized appreciation ......................... $ 845,886,315
Gross unrealized depreciation ......................... (139,033,891)
--------------
Net unrealized appreciation ........................... $ 706,852,424
==============
(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 $(45,088,561) $ 568,062
BlackRock Liquidity Series, LLC
Money Market Series $ (4,105,650) $ 878,510
--------------------------------------------------------------------------
(b) Security was purchased with the cash proceeds from securities loans.
(c) Non-income producing security.
(d) Security, or a portion of security, is on loan.
(e) Represents the current yield as of October 31, 2007.
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. These sector and industry
classifica tions are unaudited.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 49
Statements of Assets and Liabilities Master Large Cap Series LLC
Master Large Master Large Master Large
Cap Core Cap Growth Cap Value
As of October 31, 2007 Portfolio Portfolio Portfolio
====================================================================================================================================
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value*+ ........................... $5,656,480,528 $1,236,343,646 $5,402,662,895
Investments in affiliated securities, at value** ............................. 882,440,300 197,863,707 571,102,865
Receivables:
Securities sold .......................................................... 34,659,347 14,177,288 43,856,481
Contributions ............................................................ 5,717,545 4,085,117 10,413,759
Dividends ................................................................ 2,781,152 328,650 2,635,450
Securities lending ....................................................... 234,396 43,484 132,084
Prepaid expenses and other assets ............................................ 944,428 3,457 12,740
--------------------------------------------------
Total assets ................................................................. 6,583,257,696 1,452,845,349 6,030,816,274
--------------------------------------------------
====================================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned, at value .................................... 882,440,300 195,907,400 571,092,250
Bank overdraft ............................................................... 4,334,105 -- 2,851,915
Payables:
Securities purchased ..................................................... 29,810,803 15,650,233 39,263,065
Withdrawals .............................................................. 14,518,072 6,687,249 23,019,366
Investment adviser ....................................................... 2,158,393 512,780 2,183,456
Other affiliates ......................................................... 26,785 6,249 29,746
Accrued expenses and other liabilities ....................................... 238,249 86,210 221,925
--------------------------------------------------
Total liabilities ............................................................ 933,526,707 218,850,121 638,661,723
--------------------------------------------------
====================================================================================================================================
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets ................................................................... $5,649,730,989 $1,233,995,228 $5,392,154,551
==================================================
====================================================================================================================================
Net Assets Consist of
- ------------------------------------------------------------------------------------------------------------------------------------
Investors' capital ........................................................... $4,400,820,142 $1,041,837,639 $4,675,961,111
Unrealized appreciation -- net ............................................... 1,248,910,847 192,157,589 716,193,440
--------------------------------------------------
Net assets ................................................................... $5,649,730,989 $1,233,995,228 $5,392,154,551
==================================================
* Identified cost for unaffiliated securities ........................... $4,694,109,534 $1,044,186,057 $4,686,469,455
==================================================
** Identified cost for affiliated securities ............................. $ 882,440,300 $ 197,863,707 $ 571,102,865
==================================================
+ Securities loaned, at value ........................................... $ 869,986,977 $ 193,890,139 $ 563,032,106
==================================================
See Notes to Financial Statements.
50 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Statements of Operations Master Large Cap Series LLC
Master Large Master Large Master Large
Cap Core Cap Growth Cap Value
For the Year Ended October 31, 2007 Portfolio Portfolio Portfolio
==================================================================================================================================
Investment Income
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends ...................................................................... $ 47,804,061 $ 7,561,421 $ 68,263,982
Securities lending -- net ...................................................... 1,434,000 301,799 878,510
Interest from affiliates ....................................................... 55,193 172,168 568,062
----------------------------------------------
Total income ................................................................... 49,293,254 8,035,388 69,710,554
----------------------------------------------
==================================================================================================================================
Expenses
- ----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ....................................................... 20,167,935 5,015,080 22,924,455
Accounting services ............................................................ 703,218 318,680 753,395
Custodian fees ................................................................. 369,952 140,305 380,889
Directors' fees and expenses ................................................... 118,998 34,753 124,301
Professional fees .............................................................. 91,920 46,322 82,897
Pricing fees ................................................................... 1,136 1,135 1,135
Printing and shareholder reports ............................................... 725 184 805
Other .......................................................................... 79,266 20,867 75,391
----------------------------------------------
Total expenses ................................................................. 21,533,150 5,577,326 24,343,268
----------------------------------------------
Investment income -- net ....................................................... 27,760,104 2,458,062 45,367,286
----------------------------------------------
==================================================================================================================================
Realized & Unrealized Gain -- Net
- ----------------------------------------------------------------------------------------------------------------------------------
Realized gain on investments -- net ............................................ 527,140,752 69,759,009 338,339,351
Change in unrealized appreciation on investments -- net ........................ 308,789,197 89,197,066 147,211,110
----------------------------------------------
Total realized and unrealized gain -- net ...................................... 835,929,949 158,956,075 485,550,461
----------------------------------------------
Net Increase in Net Assets Resulting from Operations ........................... $863,690,053 $161,414,137 $530,917,747
==============================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 51
Statements of Changes in Net Assets Master Large Cap Series LLC
Master Large Cap Core Portfolio
-----------------------------------
For the Year Ended
October 31,
-----------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................................... $ 27,760,104 $ 19,476,807
Realized gain -- net ....................................................................... 527,140,752 195,731,487
Change in unrealized appreciation -- net ................................................... 308,789,197 289,376,493
-----------------------------------
Net increase in net assets resulting from operations ....................................... 863,690,053 504,584,787
-----------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ................................................................ 1,128,729,030 1,448,673,363
Fair value of withdrawals .................................................................. (219,326,884) (743,318,106)
-----------------------------------
Net increase in net assets derived from capital transactions ............................... 909,402,146 705,355,257
-----------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ............................................................... 1,773,092,199 1,209,940,044
Beginning of year .......................................................................... 3,876,638,790 2,666,698,746
-----------------------------------
End of year ................................................................................ $ 5,649,730,989 $ 3,876,638,790
===================================
See Notes to Financial Statements.
Statements of Changes in Net Assets Master Large Cap Series LLC
Master Large Cap Growth Portfolio
-----------------------------------
For the Year Ended
October 31,
-----------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................................... $ 2,458,062 $ 1,639,313
Realized gain -- net ....................................................................... 69,759,009 24,740,475
Change in unrealized appreciation -- net ................................................... 89,197,066 44,967,618
-----------------------------------
Net increase in net assets resulting from operations ....................................... 161,414,137 71,347,406
-----------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ................................................................ 596,750,862 416,035,279
Fair value of withdrawals .................................................................. (309,546,572) (191,404,006)
-----------------------------------
Net increase in net assets derived from capital transactions ............................... 287,204,290 224,631,273
-----------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ............................................................... 448,618,427 295,978,679
Beginning of year .......................................................................... 785,376,801 489,398,122
-----------------------------------
End of year ................................................................................ $ 1,233,995,228 $ 785,376,801
===================================
See Notes to Financial Statements.
52 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Statements of Changes in Net Assets Master Large Cap Series LLC
Master Large Cap Value Portfolio
-----------------------------------
For the Year Ended
October 31,
-----------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................................... $ 45,367,286 $ 17,996,957
Realized gain -- net ....................................................................... 338,339,351 116,615,372
Change in unrealized appreciation -- net ................................................... 147,211,110 276,256,898
-----------------------------------
Net increase in net assets resulting from operations ....................................... 530,917,747 410,869,227
-----------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ................................................................ 2,162,748,781 2,669,357,535
Fair value of withdrawals .................................................................. (1,229,437,681) (688,289,120)
-----------------------------------
Net increase in net assets derived from capital transactions ............................... 933,311,100 1,981,068,415
-----------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ............................................................... 1,464,228,847 2,391,937,642
Beginning of year .......................................................................... 3,927,925,704 1,535,988,062
-----------------------------------
End of year ................................................................................ $ 5,392,154,551 $ 3,927,925,704
===================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 53
Financial Highlights Master Large Cap Series LLC
Master Large Cap Core Portfolio
The following ratios have ----------------------------------------------------------------------
been derived from information For the Year Ended October 31,
information provided in the ----------------------------------------------------------------------
financial statements. 2007 2006 2005 2004 2003
======================================================================================================
Total Investment Return
- ------------------------------------------------------------------------------------------------------
Total investment return .... 13.94% 17.32% 18.35% 9.61% 25.11%
======================================================================
======================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------
Expenses ................... .49% .49% .51% .52% .54%
======================================================================
Investment income -- net ... .63% .58% .72% .57% .48%
======================================================================
======================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------
Net assets, end of year
(in thousands) ........... $5,649,731 $3,876,639 $2,666,699 $1,831,300 $1,454,109
======================================================================
Portfolio turnover ......... 96% 88% 94% 136% 139%
======================================================================
Master Large Cap Growth Portfolio
The following ratios have ----------------------------------------------------------------------
been derived from information For the Year Ended October 31,
information provided in the ----------------------------------------------------------------------
financial statements. 2007 2006 2005 2004 2003
======================================================================================================
Total Investment Return
- ------------------------------------------------------------------------------------------------------
Total investment return .... 17.47% 14.05% 12.47% 5.42% 25.01%
======================================================================
======================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------
Expenses ................... .56% .56% .57% .59% .61%
======================================================================
Investment income -- net ... .25% .26% .33% .09% .04%
======================================================================
======================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------
Net assets, end of year
(in thousands) ........... $1,233,995 $ 785,377 $ 489,398 $ 344,400 $ 250,166
======================================================================
Portfolio turnover ......... 87% 117% 132% 165% 178%
======================================================================
See Notes to Financial Statements.
Financial Highlights Master Large Cap Series LLC
Master Large Cap Value Portfolio
----------------------------------------------------------------------
For the Year Ended October 31,
The following ratios have been derived from ----------------------------------------------------------------------
information provided in the financial statements. 2007 2006 2005 2004 2003
===========================================================================================================================
Total Investment Return
- ---------------------------------------------------------------------------------------------------------------------------
Total investment return ......................... 12.72% 18.48% 21.93% 14.57% 27.05%
======================================================================
===========================================================================================================================
Ratios to Average Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
Expenses ........................................ .51% .53% .55% .56% .57%
======================================================================
Investment income -- net ........................ .95% .73% .80% .93% .97%
======================================================================
===========================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) .......... $5,392,155 $3,927,926 $1,535,988 $ 810,489 $ 515,257
======================================================================
Portfolio turnover .............................. 72% 71% 95% 128% 157%
======================================================================
See Notes to Financial Statements.
54 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Notes to Financial Statements Master Large Cap Series LLC
1. Significant Accounting Policies:
Master Large Cap Core Portfolio, Master Large Cap Growth Portfolio and Master
Large Cap Value Portfolio (the "Portfolios" or individually the "Portfolio")
constitute the Master Large Cap Series LLC (the "Master LLC"). The Master LLC is
registered under the Investment Company Act of 1940, as amended, and is
organized as a Delaware limited liability company. Prior to June 15, 2007, the
Master LLC was organized as a Delaware statutory trust (the "Trust"). The
Limited Liability Company Agreement (the "LLC Agreement") permits the Directors
(and prior to June 15, 2007, the Declaration of Trust permitted the Trustees) to
issue nontransferable interests in the Master LLC/Trust, subject to certain
limitations. Throughout this report the Trust and the Master LLC are referred to
as the Master LLC and the Board of Directors of the Master LLC and the Board of
Trustees of the Trust are referred to as the Board of Directors. 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. 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 Directors of the Master
LLC. Long positions traded in the over-the-counter ("OTC") markets, NASDAQ
Capital Market or Bulletin Board are valued at the last available bid price or
yield equivalent obtained from one or more dealers or pricing services approved
by the Board of Directors of the Master LLC. 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.
Effective September 4, 2007, exchange-traded options are valued at the mean
price between the last bid and ask prices at the close of the options market in
which the options trade and previously were valued at the last sales price as of
the close of options trading on applicable exchanges. 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 Directors of the Master LLC, 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 Master LLC under the general supervision of the Master
LLC's Board of Directors. Such valuations and procedures are reviewed
periodically by the Board of Directors of the Master LLC.
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 Master
LLC's Board of Directors or by BlackRock Advisors, LLC (the "Manager"), an
indirect, wholly owned subsidiary of BlackRock, Inc., using a pricing service
and/or procedures approved by the Master LLC's Board of Directors.
(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 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
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 55
Notes to Financial Statements (continued) Master Large Cap Series LLC
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 and Master Large Cap Value
Portfolio each recorded a bank overdraft, which resulted from management
estimates of available cash.
(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, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is evaluating
the implications of FAS 159 and its impact on the Portfolios' financial
statements, if any, has not been determined.
56 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Notes to Financial Statements (concluded) Master Large Cap Series LLC
2. Investment Advisory Agreement and Transactions with Affiliates:
The Master LLC, on behalf of each Portfolio, has entered into an Investment
Advisor Agreement with the Manager. Merrill Lynch & Co., Inc. ("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 Portfolios. 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 the sub-adviser for services it provides a monthly fee at
an annual rate equal to a percentage of the management fee paid by the
Portfolios 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 October 31, 2007, Master Large Cap Core
Portfolio, Master Large Cap Growth Portfolio and Master Large Cap Value
Portfolio lent securities with values of $176,250,285, $29,537,387 and
$80,567,856, 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 investment of cash collateral. 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 year ended October 31, 2007, BIM received $464,185, $94,115
and $286,229 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 commissions on the execution of portfolio security
transactions for the year ended October 31, 2007. The commissions were as
follows:
- --------------------------------------------------------------------------------
Commissions
- --------------------------------------------------------------------------------
Master Large Cap Core Portfolio ................................... $ 100
Master Large Cap Value Portfolio .................................. $2,750
- --------------------------------------------------------------------------------
For the year ended October 31, 2007, the Portfolios reimbursed the Manager for
certain accounting services. The reimbursements were as follows:
- --------------------------------------------------------------------------------
Reimbursement
to the Manager
- --------------------------------------------------------------------------------
Master Large Cap Core Portfolio ................................... $ 224
Master Large Cap Growth Portfolio ................................. $18,327
Master Large Cap Value Portfolio .................................. $92,721
- --------------------------------------------------------------------------------
Certain officers and/or directors of the Master LLC are officers and/or
directors of BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended October 31, 2007 were as follows:
- --------------------------------------------------------------------------------
Total Purchases Total Sales
- --------------------------------------------------------------------------------
Master Large Cap Core Portfolio ............ $4,306,839,166 $4,216,123,520
Master Large Cap Growth Portfolio .......... $1,165,507,376 $ 872,239,984
Master Large Cap Value Portfolio ........... $4,413,973,841 $3,427,541,117
- --------------------------------------------------------------------------------
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,
which expires November 2007 and was subsequently renewed. Each Portfolio may
borrow under the credit agreement to fund shareholder redemptions and for other
lawful purposes other than for leverage. Each 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. The Portfolios pay 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 year ended October 31, 2007.
5. Acquisitions:
Master Large Cap Core
On September 24, 2007, an investor of Master Large Cap Core Portfolio ("Master
Large Cap Core") acquired all of the net assets of BlackRock Investment Trust
Portfolio of BlackRock Funds ("Investment Trust"), pursuant to a plan of
reorganization. As a result of the reorganization, which included $286,539,853
of net unrealized appreciation, the Master Large Cap Core Portfolio received an
in-kind contribution of portfolio securities.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 57
Report of Independent Registered Public Accounting Firm
Master Large Cap Series LLC
To the Investors and Board of Directors of
Master Large Cap Series LLC:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments of Master Large Cap Series LLC (formerly Master
Large Cap Series Trust) (the "Master LLC"), comprising Master Large Cap Core
Portfolio, Master Large Cap Growth Portfolio and Master Large Cap Value
Portfolio, as of October 31, 2007, the related statements of operations for the
year then ended, the statements of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the five
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Master LLC's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The
Master LLC is not required to have, nor were we engaged to perform, an audit of
its internal control over financial reporting. Our audits included consideration
of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Master LLC's internal control
over financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2007, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Master
Large Cap Core Portfolio, Master Large Cap Growth Portfolio and Master Large Cap
Value Portfolio of Master Large Cap Series LLC, as of October 31, 2007, the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended, and their financial
highlights for each of the five years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
December 26, 2007
58 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Officers and Directors as of October 31, 2007
Number of
Funds and
Portfolios in
Position(s) Length of Fund Complex Other Public
Name, Address Held with Time Overseen by Directorships
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Director Held by Director
====================================================================================================================================
Interested Director
- ------------------------------------------------------------------------------------------------------------------------------------
Robert C. Doll, Jr.* Fund 2005 to Vice Chairman and Director of BlackRock, 120 Funds None
P.O. Box 9011 President 2007 Inc., Global Chief Investment Officer for 161 Portfolios
Princeton, NJ 08543-9011 and Equities, Chairman of the BlackRock Retail
1954 Director Operating Committee, and member of the
BlackRock Executive Committee since 2006;
President of the funds advised by Merrill
Lynch Investment Managers, L.P. ("MLIM") and
its affiliates ("MLIM/FAM-advised funds")
from 2005 to 2006 and Chief Investment
Officer thereof from 2001 to 2006; President
of MLIM and Fund Asset Management, L.P.
("FAM") from 2001 to 2006; Co-Head (Americas
Region) thereof from 2000 to 2001 and Senior
Vice President from 1999 to 2001; President
and Director of Princeton Services, Inc.
("Princeton Services") and President of
Princeton Administrators, L.P. ("Princeton
Administrators") from 2001 to 2006; Chief
Investment Officer of OppenheimerFunds, Inc.
in 1999 and Executive Vice President thereof
from 1991 to 1999.
----------------------------------------------------------------------------------------------------------
* Mr. Doll is a director, trustee or member of an advisory board of certain other investment companies
for which BlackRock Advisors, LLC and its affiliates act as investment adviser. Mr. Doll is an
"interested person," as defined in the Investment Company Act, of the Fund based on his positions
with BlackRock, Inc. and its affiliates. Directors serve until their resignation, removal or death,
or until December 31 of the year in which they turn 72. As Fund President, Mr. Doll serves at the
pleasure of the Board of Directors.
====================================================================================================================================
Independent Directors*
- ------------------------------------------------------------------------------------------------------------------------------------
James H. Bodurtha** Director 1999 to Director, The China Business Group, Inc. 37 Funds None
P.O. Box 9095 2007 since 1996 and Executive Vice President 57 Portfolios
Princeton, NJ 08543-9095 thereof from 1996 to 2003; Chairman of the
1944 Board, Berkshire Holding Corporation since
1980; Partner, Squire, Sanders & Dempsey (a
law firm) from 1980 to 1993.
- ------------------------------------------------------------------------------------------------------------------------------------
Kenneth A. Froot Director 2005 to Professor, Harvard University since 1992; 37 Funds None
P.O. Box 9095 2007 Professor, Massachusetts Institute of 57 Portfolios
Princeton, NJ 08543-9095 Technology from 1986 to 1992.
1957
- ------------------------------------------------------------------------------------------------------------------------------------
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 59
Officers and Directors (continued)
Number of
Funds and
Portfolios in
Position(s) Length of Fund Complex Other Public
Name, Address Held with Time Overseen by Directorships
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Director Held by Director
====================================================================================================================================
Independent Directors* (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Joe Grills** Director 2002 to Member of the Committee of Investment of 37 Funds Kimco Realty
P.O. Box 9095 2007 Employee Benefit Assets of the Association 57 Portfolios Corporation
Princeton, NJ 08543-9095 of Financial Professionals ("CIEBA") since
1935 1986; Member of CIEBA's Executive Committee
since 1988 and its Chairman from 1991 to
1992; Assistant Treasurer of International
Business Machines Corporation ("IBM") and
Chief Investment Officer of IBM Retirement
Funds from 1986 to 1993; Member of the
Investment Advisory Committee of the State
of New York Common Retirement Fund from 1989
to 2006; Member of the Investment Advisory
Committee of the Howard Hughes Medical
Institute from 1997 to 2000; Director, Duke
University Management Company from 1992 to
2004, Vice Chairman thereof from 1998 to
2004, and Director Emeritus thereof since
2004; Director, LaSalle Street Fund from
1995 to 2001; Director, Kimco Realty
Corporation since 1997; Member of the
Investment Advisory Committee of the
Virginia Retirement System since 1998, Vice
Chairman thereof from 2002 to 2005, and
Chairman thereof since 2005; Director,
Montpelier Foundation since 1998, its Vice
Chairman from 2000 to 2006, and Chairman,
thereof, since 2006; Member of the
Investment Committee of the Woodberry Forest
School since 2000; Member of the Investment
Committee of the National Trust for Historic
Preservation since 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Herbert I. London Director 1999 to Professor Emeritus, New York University 37 Funds AIMS Worldwide, Inc.
P.O. Box 9095 present since 2005; John M. Olin Professor of 57 Portfolios
Princeton, NJ 08543-9095 Humanities, New York University from 1993 to
1939 2005; and Professor thereof from 1980 to
2005; President, Hudson Institute since 1997
and Trustee thereof since 1980; Dean,
Gallatin Division of New York University
from 1976 to 1993; Distinguished Fellow,
Herman Kahn Chair, Hudson Institute from
1984 to 1985; Chairman of the Board of
Directors of Vigilant Research, Inc. since
2006; Member of the Board of Directors for
Grantham University since 2006; Director of
AIMS Worldwide, Inc. since 2006; Director of
Reflex Security since 2006; Director of
InnoCentive, Inc. since 2006; Director of
Cerego, LLC since 2005; Director, Damon
Corp. from 1991 to 1995; Overseer, Center
for Naval Analyses from 1983 to 1993.
- ------------------------------------------------------------------------------------------------------------------------------------
Roberta Cooper Ramo Director 1999 to Shareholder, Modrall, Sperling, Roehl, 37 Funds None
P.O. Box 9095 2007 Harris & Sisk, P.A. since 1993; President, 57 Portfolios
Princeton, NJ 08543-9095 American Bar Association from 1995 to 1996
1942 and Member of the Board of Governors thereof
from 1994 to 1997; Shareholder, Poole, Kelly
and Ramo, Attorneys at Law P.C. from 1977 to
1993; Director of ECMC Group (service
provider to students, schools and lenders)
since 2001; Director, United New Mexico Bank
(now Wells Fargo) from 1983 to 1988;
Director, First National Bank of New Mexico
(now Wells Fargo) from 1975 to 1976; Vice
President, American Law Institute from 2004
to 2007 and President elect thereof since
2007.
- ------------------------------------------------------------------------------------------------------------------------------------
Robert S. Salomon, Jr. Director 2002 to Principal of STI Management (investment 37 Funds None
P.O. Box 9095 2007 adviser) from 1994 to 2005; Chairman and CEO 57 Portfolios
Princeton, NJ 08543-9095 of Salomon Brothers Asset Management Inc.
1936 from 1992 to 1995; Chairman of Salomon
Brothers Equity Mutual Funds from 1992 to
1995; regular columnist with Forbes Magazine
from 1992 to 2002; Director of Stock
Research and U.S. Equity Strategist at
Salomon Brothers Inc. from 1975 to 1991;
Trustee, Commonfund from 1980 to 2001.
----------------------------------------------------------------------------------------------------------
* Directors serve until their resignation, removal or death, or until December 31 of the year in which
they turn 72.
** Co-Chairman of the Board of Directors and the Audit Committee.
60 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
Officers and Directors (concluded)
Position(s) Length of
Name, Address Held with Time
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Fund Officers*
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. Burke Vice 1999 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
P.O. Box 9011 President 2007 Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P. ("FAM")
Princeton, NJ 08543-9011 and in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and Treasurer
1960 Treasurer thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990 to 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Clark Chief 2007 Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
P.O. Box 9011 Compliance BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to
Princeton, NJ 08543-9011 Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors,
1965 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998
to 2001; Branch Chief, Division of Investment Management and Office of
Compliance Inspections and Examinations, U.S. Securities and Exchange
Commission, from 1993 to 1998.
- ------------------------------------------------------------------------------------------------------------------------------------
Howard Surloff Secretary 2007 Managing Director of BlackRock Inc. and General Counsel of U.S. Funds at
P.O. Box 9011 BlackRock, Inc. since 2006; General Counsel (U.S.) of Goldman Sachs Asset
Princeton, NJ 08543-9011 Management from 1993 to 2006.
1965
----------------------------------------------------------------------------------------------------------
* Officers of the Funds serve at the pleasure of the Board of Directors.
- ------------------------------------------------------------------------------------------------------------------------------------
Further information about the Funds' Officers and Directors is available in the Funds' Statement of
Additional Information, which can be obtained without charge by calling 1-800-441-7762.
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3661
Transfer Agent
PFPC Inc.
Wilmington, DE 19809
Accounting Agent
State Street Bank and
Trust Company
Princeton, NJ 08540
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Sidley Austin LLP
New York, NY 10019
BlackRock Fund Information
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.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 61
BlackRock Fund Information (concluded)
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 Funds at (800)
441-7762.
Availability of Proxy Voting Policies and Procedures
The Funds have delegated proxy voting responsibilities to BlackRock and its
affiliates, subject to the general oversight of the Funds' Board of Directors. A
description of the policies and procedures that BlackRock and its affiliates use
to determine how to vote proxies relating to portfolio securities is available
without charge, upon request, on our Web site at www.blackrock.com, by calling
(800) 441-7762, or on the Web site of the Securities and Exchange Commission
(the"Commission") at http://www.sec.gov.
Availability of Proxy Voting Record
Information on how proxies relating to the Funds' voting securities were voted
(if any) by Funds' 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 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'
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' 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/funds.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have $50
or more automatically deducted from their checking or savings account and
invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as long as
their account 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.
62 BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007
A World-Class Mutual Fund Family
BlackRock offers a diverse lineup of open-end mutual funds crossing all
investment styles and managed by experts in equity, fixed income and tax-exempt
investing.
Equity Funds
BlackRock All-Cap Global Resources Portfolio
BlackRock Aurora Portfolio
BlackRock Asset Allocation Portfolio+
BlackRock Balanced Capital Fund+
BlackRock Basic Value Fund
BlackRock Capital Appreciation Portfolio
BlackRock Developing Capital Markets Fund
BlackRock Equity Dividend Fund
BlackRock EuroFund
BlackRock Focus Twenty Fund
BlackRock Focus Value Fund
BlackRock Fundamental Growth Fund
BlackRock Global Allocation Fund+
BlackRock Global Dynamic Equity Fund
BlackRock Global Financial Services Fund
BlackRock Global Growth Fund
BlackRock Global Opportunities Portfolio
BlackRock Global Resources Portfolio
BlackRock Global Science & Technology Opportunities Portfolio
BlackRock Global SmallCap Fund
BlackRock Healthcare Fund
BlackRock Health Sciences Opportunities Portfolio*
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio*
BlackRock International Value Fund
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
BlackRock Latin America Fund
BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Mid-Cap Value Equity Portfolio
BlackRock Mid Cap Value Opportunities Fund
BlackRock Natural Resources Trust
BlackRock Pacific Fund
BlackRock Small Cap Core Equity Portfolio
BlackRock Small Cap Growth Equity Portfolio
BlackRock Small Cap Growth Fund II
BlackRock Small Cap Index Fund
BlackRock Small Cap Value Equity Portfolio*
BlackRock Small/Mid-Cap Growth Portfolio
BlackRock S&P 500 Index Fund
BlackRock Technology Fund
BlackRock U.S. Opportunities Portfolio
BlackRock Utilities and Telecommunications Fund
BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock 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 Fund
BlackRock Total Return Portfolio II
BlackRock World Income Fund
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio
BlackRock California Insured Municipal Bond Fund
BlackRock Delaware Municipal Bond Portfolio
BlackRock Florida Municipal Bond Fund
BlackRock High Yield Municipal Fund
BlackRock Intermediate Municipal Fund
BlackRock Kentucky Municipal Bond Portfolio
BlackRock Municipal Insured Fund
BlackRock National Municipal Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock New York Municipal Bond Fund
BlackRock Ohio Municipal Bond Portfolio
BlackRock Pennsylvania Municipal Bond Fund
BlackRock Short-Term Municipal Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios
Conservative Prepared Portfolio
Moderate Prepared Portfolio
Growth Prepared Portfolio
Aggressive Growth Prepared Portfolio
BlackRock Lifecycle Prepared Portfolios
Prepared Portfolio 2010
Prepared Portfolio 2015
Prepared Portfolio 2020
Prepared Portfolio 2025
Prepared Portfolio 2030
Prepared Portfolio 2035
Prepared Portfolio 2040
Prepared Portfolio 2045
Prepared Portfolio 2050
* See the prospectus for information on specific limitations on investments
in the fund.
+ Mixed asset fund.
BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and
certain funds are also distributed by FAM Distributors, Inc. You should consider
the investment objectives, risks, charges and expenses of the funds under
consideration carefully before investing. Each fund's prospectus contains this
and other information and is available at www.blackrock.com or by calling
800-882-0052 or from your financial advisor. The prospectus should be read
carefully before investing.
BLACKROCK LARGE CAP SERIES FUNDS, INC. OCTOBER 31, 2007 63
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 Large Cap Series Funds, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
BLACKROCK
#CAPSERIES-10/07
Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code
of ethics, as of the end of the period covered by this report,
applicable to the registrant's principal executive officer,
principal financial officer and principal accounting officer, or
persons performing similar functions. During the period covered by
this report, there have been no amendments to or waivers granted
under the code of ethics. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors or trustees, as applicable (the "board of directors") has
determined that (i) the registrant has the following audit committee
financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent: Kenneth L. Urish (term
began, effective November 1, 2007) Joe Grills (term ended, effective
November 1, 2007) Robert S. Salomon, Jr. (term ended, effective
November 1, 2007)
Under applicable securities laws, a person determined to be an audit
committee financial expert will not be deemed an "expert" for any
purpose, including without limitation for the purposes of Section 11
of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation
or identification as an audit committee financial expert does not
impose on such person any duties, obligations, or liabilities
greater than the duties, obligations, and liabilities imposed on
such person as a member of the audit committee and board of
directors in the absence of such designation or identification.
Item 4 - Principal Accountant Fees and Services
- ----------------------------------------------------------------------------------------------------------------------------------
(a) Audit Fees (b) Audit-Related Fees(1) (c) Tax Fees(2) (d) All Other Fees(3)
- ----------------------------------------------------------------------------------------------------------------------------------
Current Previous Current Previous Current Previous Current Previous
Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal
Entity Name End Year End End Year End End Year End End Year End
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Master Large Cap
Core Portfolio $44,200 $36,000 $0 $10,400(4) $9,200 $9,200 $0 $0
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap
Core Fund $19,900 $ 6,600 $0 $0 $6,100 $6,000 $1,042 $0
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Master Large Cap
Growth Portfolio $37,900 $33,500 $0 $7,700(4) $9,200 $0 $0 $0
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap
Growth Fund $12,700 $ 6,600 $0 $0 $6,100 $6,000 $1,042 $0
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Master Large Cap
Value Portfolio $37,900 $33,500 $0 $10,200(4) $9,200 $0 $0 $0
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap
Value Fund $12,700 $ 6,600 $0 $0 $6,100 $6,000 $1,042 $0
- ----------------------------------------------------------------------------------------------------------------------------------
1 The nature of the services include assurance and related services reasonably
related to the performance of the audit of financial statements not included in
Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax
planning.
3 The nature of the services include a review of compliance procedures and
attestation thereto.
4 Paid by the Adviser.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to
the registrant's affiliated service providers that relate directly
to the operations and the financial reporting of the registrant.
Certain of these non-audit services that the Committee believes are
a) consistent with the SEC's auditor independence rules and b)
routine and recurring services that will not impair the independence
of the independent accountants may be approved by the Committee
without consideration on a specific case-by-case basis ("general
pre-approval"). However, such services will only be deemed
pre-approved provided that any individual project does not exceed
$5,000 attributable to the registrant or $50,000 for all of the
registrants the Committee oversees. Any proposed services exceeding
the pre-approved cost levels will require specific pre-approval by
the Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) None of the services described in each of Items 4(b) through
(d) were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
--------------------------------------------------------------------
Current Fiscal Previous Fiscal
Entity Name Year End Year End
--------------------------------------------------------------------
--------------------------------------------------------------------
Master Large Cap Core Portfolio $293,700 $2,938,183
--------------------------------------------------------------------
BlackRock Large Cap Core Fund $291,642 $2,924,583
--------------------------------------------------------------------
--------------------------------------------------------------------
Master Large Cap Growth Portfolio $284,500 $2,926,283
--------------------------------------------------------------------
BlackRock Large Cap Growth Fund $291,642 $2,924,583
--------------------------------------------------------------------
--------------------------------------------------------------------
Master Large Cap Value Portfolio $293,700 $2,928,783
--------------------------------------------------------------------
BlackRock Large Cap Value Fund $291,642 $2,924,583
--------------------------------------------------------------------
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant's investment
adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services
to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $284,500, 0%
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 and Governance Committee will consider
nominees to the Board recommended by shareholders when a vacancy
becomes available. Shareholders who wish to recommend a nominee
should send nominations which include biographical information and
set forth the qualifications of the proposed nominee to the
registrant's Secretary. There have been no material changes to these
procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
15d-15(b) under the Securities and Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
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 - See Item 2
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 Master Large Cap Series LLC
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock Large Cap Series Funds, Inc. and Master Large Cap Series LLC
Date: December 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/ Donald C. Burke
-----------------------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock Large Cap Series Funds, Inc. and Master Large Cap Series LLC
Date: December 19, 2007
By: /s/ Neal J. Andrews
-----------------------------------
Neal J. Andrews,
Chief Financial Officer (principal financial officer) of
BlackRock Large Cap Series Funds, Inc. and Master Large Cap Series LLC
Date: December 19, 2007