UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-09637
811-09739
Name of Fund: BlackRock Large Cap Series Funds, Inc.
BlackRock Large Cap Core Retirement Portfolio
BlackRock Large Cap Growth Retirement Portfolio
BlackRock Large Cap Value Retirement Portfolio
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: 10/31/2008
Date of reporting period: 11/01/2007 - 04/30/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock BLACKROCK
Large Cap Series Funds, Inc.
SEMI-ANNUAL REPORT
APRIL 30, 2008 | (UNAUDITED)
BlackRock Large Cap Core Retirement Portfolio
BlackRock Large Cap Growth Retirement Portfolio
BlackRock Large Cap Value Retirement Portfolio
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
================================================================================
Page
- --------------------------------------------------------------------------------
A Letter to Shareholders ................................................. 3
Semi-Annual Report:
Fund Summaries ........................................................... 4
About Fund Performance ................................................... 7
Disclosure of Expenses ................................................... 7
Fund Financial Statements:
Statements of Assets and Liabilities ................................. 8
Statements of Operations ............................................. 9
Statements of Changes in Net Assets .................................. 10
Fund Financial Highlights ................................................ 11
Fund Notes to Financial Statements ....................................... 12
Master Portfolio Information ............................................. 14
Master Financial Statements:
Schedules of Investments ............................................. 16
Statements of Assets and Liabilities ................................. 25
Statements of Operations ............................................. 26
Statements of Changes in Net Assets .................................. 27
Master Financial Highlights .............................................. 29
Master Notes to Financial Statements ..................................... 31
Officers and Directors ................................................... 34
Additional Information ................................................... 35
Mutual Fund Family ....................................................... 38
2 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
A Letter to Shareholders
Dear Shareholder
Over the past several months, financial markets have been buffeted by the
housing recession, the credit market unraveling and related liquidity freeze and
steadily rising commodity prices. Counterbalancing these difficulties were
booming export activity, a robust non-financial corporate sector and, notably,
aggressive and timely monetary and fiscal policy actions.
Amid the market tumult, the Federal Reserve Board (the "Fed") intervened with a
series of moves to bolster liquidity and ensure financial market stability.
Since September 2007, the central bank slashed the target federal funds rate 325
basis points (3.25%), bringing the rate to 2.0% as of period-end. Of greater
magnitude, however, were the Fed's other policy decisions, which included
opening the discount window directly to broker dealers and investment banks and
backstopping the unprecedented rescue of Bear Stearns.
The Fed's response to the financial crisis helped to improve credit conditions
and investor mood. After hitting a low point on March 17 (coinciding with the
collapse of Bear Stearns), equity markets found a welcome respite in April, when
the S&P 500 Index of U.S. stocks posted positive monthly performance for the
first time since October 2007. International markets, which outpaced those of
the U.S. for much of 2007, saw a reversal in that trend, as effects of the
credit crisis and downward pressures on growth were far-reaching.
In contrast to equity markets, Treasury securities rallied (yields fell as
prices correspondingly rose), as a broad "flight-to-quality" theme persisted.
The yield on 10-year Treasury issues, which touched 5.30% in June 2007 (its
highest level in five years), fell to 4.04% by year-end and to 3.77% by April
30. Treasury issues relinquished some of their gains in April, however, as
investor appetite for risk returned and other high-quality fixed income sectors
outperformed.
Problems within the monoline insurance industry and the failure of auctions for
auction rate securities plagued the municipal bond market, driving yields higher
and prices lower across the curve. However, in conjunction with the more recent
shift in sentiment, the sector delivered strong performance in the final month
of the reporting period.
Overall, the major benchmark indexes generated results that generally reflected
heightened investor risk aversion:
Total Returns as of April 30, 2008 6-month 12-month
=========================================================================================================================
U.S. equities (S&P 500 Index) - 9.64% - 4.68%
- -------------------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) -12.92 -10.96
- -------------------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) - 9.21 - 1.78
- -------------------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Index) + 4.08 + 6.87
- -------------------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.47 + 2.79
- -------------------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) - 0.73 - 0.80
- -------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
As you navigate today's volatile markets, we encourage you to review your
investment goals with your financial professional and to make portfolio changes,
as needed. For more up-to-date commentary on the economy and financial markets,
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/ Rob Kapito
Rob Kapito
President, BlackRock Advisors, LLC
3
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary BlackRock Large Cap Core Retirement Portfolio
Portfolio Management Commentary
How did the Portfolio perform?
o The Portfolio underperformed the benchmark Russell 1000(R) Index for the
period from inception (January 3, 2008) through April 30, 2008.
What factors influenced performance?
o Security selection and overweight positions versus the benchmark in health
care and information technology (IT) had the greatest negative effect on
the Fund's comparative performance for the period. Selection decisions
proved most unfavorable among health care providers and semiconductor and
software names within the IT sector. Stock selection in financials
(particularly capital markets and diversified services) and materials also
detracted from results for the period.
o Meanwhile, overweight positions in the consumer discretionary and energy
sectors proved advantageous, but resultant gains were offset by
disappointing stock selection. Stock-specific disappointments in specialty
retailers and diversified services hampered results within consumer
discretionary. Within energy, oil and gas names were the weakest
performers, in particular oil refiners, whose profit margins were
compressed by higher oil prices.
o On the positive side, an underweight in telecommunication services
enhanced the Fund's relative return for the period.
Describe recent Portfolio activity.
o During the period, we increased the Portfolio's exposure to energy. We
reduced exposure to the consumer staples, industrials and consumer
discretionary sectors.
o Among our largest purchases were Occidental Petroleum Corp., Best Buy Co.,
Inc., Gap, Inc., MetLife, Inc. and Baxter International, Inc. Our largest
sales included Merck & Co., Southern Copper Corp., Apollo Group, Inc.,
eBay, Inc. and Applied Materials, Inc.
Describe Portfolio positioning at period-end.
o On April 30, 2008, the Portfolio was overweight versus the benchmark in
the IT, health care, energy and consumer discretionary sectors, and
underweight in financials, consumer staples, utilities and
telecommunication services.
o We continue to expect lackluster U.S. economic growth over the next
several quarters as counteracting forces prevent both an outright
recession and a return to its historical trend or above-trend growth.
While inflationary problems do exist in some emerging markets, we expect
inflationary pressures in the U.S. to diminish in the months ahead,
particularly since the credit squeeze and housing bust are both
deflationary forces and the economy continues to operate below its
potential. We recognize that economic risks remain and the rally in global
equity prices late in the semi-annual period may have advanced to the
point at which some additional corrective action could take place. In our
view, however, the broad economic, corporate earnings and inflationary
backdrop should benefit most market sectors and act as a foundation for
improved market conditions, which we believe has already begun to fall
into place.
Performance Summary for the Period Ended April 30, 2008
Aggregate
Total Returns*
-----------------
Since Inception**
- --------------------------------------------------------------------------------
Class K .................................................. -9.74%
Russell 1000 Index*** .................................... -3.56%
- --------------------------------------------------------------------------------
* Assuming maximum sales charges. See "About Fund Performance" on page 7 for
a detailed description of share classes, including any related sales
charges and fees.
** The Fund commenced operations on January 3, 2008.
*** 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.
Past performance is not indicative of future results.
4 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Fund Summary BlackRock Large Cap Growth Retirement Portfolio
Portfolio Management Commentary
How did the Portfolio perform?
o The Portfolio underperformed the benchmark Russell 1000 Growth Index for
the period from inception (January 3, 2008) through April 30, 2008.
What factors influenced performance?
o The Portfolio's underperformance for the period resulted primarily from
stock selection factors, while asset allocation effects were modestly
better.
o Stock selection and an overweight versus the benchmark in the health care
sector (mainly health care providers) had the greatest negative impact on
comparative performance. Selection decisions in consumer discretionary
(notably specialty retailers) and consumer staples (especially food and
beverage companies) also detracted from results.
o Elsewhere within the Portfolio, stock-specific weakness in information
technology (IT), particularly in software names, hampered performance for
the period. Within energy, underperformance was concentrated among oil
refiners, whose profit margins were compressed by higher oil prices. An
overweight in industrials proved advantageous, but the resultant gains
were offset by disappointing stock selection in the sector.
o On the positive side, an underweight in financials (mainly capital markets
and diversified services) benefited the Portfolio's comparative
performance, offsetting negative stock selection effects within the
sector. An overweight in materials also enhanced the relative return.
Describe recent Portfolio activity.
o During the period, we increased the Portfolio's exposure to the health
care, materials and IT sectors. We reduced exposure to the consumer
discretionary, consumer staples and financials sectors.
o Among our largest purchases were Microsoft Corp., Johnson & Johnson,
Baxter International, Inc., Lincare Holdings, Inc. and Amazon Corp. Our
largest sales included Merck & Co., Apollo Group, Inc., Honeywell
International, Inc., EMC Corp. and Southern Copper Corp.
Describe Portfolio positioning at period-end.
o On April 30, 2008, the Portfolio was overweight relative to the benchmark
in IT, health care, materials and industrials, and underweight in consumer
staples, financials and utilities.
o We continue to believe that U.S. economic growth will be flat or will
increase no more than 2% over the next several quarters as counteracting
forces prevent both an outright recession and a return to its historical
trend or above-trend growth. While inflationary problems do exist in some
emerging markets, we expect inflationary pressures in the U.S. to diminish
in the months ahead, particularly since the credit squeeze and housing
bust are both deflationary forces and the economy continues to operate
below its potential. We recognize that economic risk remains and the rally
in global equity prices late in the semi-annual period may have advanced
to the point at which some additional corrective action could take place.
In our view, however, the broad economic, corporate earnings and
inflationary backdrop should benefit most market sectors and act as a
foundation for improved market conditions, which we believe has already
begun to fall into place.
Performance Summary for the Period Ended April 30, 2008
Aggregate
Total Returns*
-----------------
Since Inception**
- --------------------------------------------------------------------------------
Class K .................................................. -9.29%
Russell 1000 Growth Index*** ............................. -4.12%
- --------------------------------------------------------------------------------
* Assuming maximum sales charges. See "About Fund Performance" on page 7 for
a detailed description of share classes, including any related sales
charges and fees.
** The Fund commenced operations on January 3, 2008.
*** 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.
Past performance is not indicative of future results.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 5
Fund Summary BlackRock Large Cap Value Retirement Portfolio
Portfolio Management Commentary
How did the Portfolio perform?
o The Portfolio underperformed the benchmark Russell 1000 Value Index for
the period from inception (January 3, 2008) through April 30, 2008.
What factors influenced performance?
o Stock selection and an overweight position versus the benchmark in the
health care sector (mainly health care providers) had the greatest
negative impact on Portfolio performance for the period. Stock selection
in consumer discretionary (particularly specialty retailers) and consumer
staples (notably food and beverage companies) also detracted from the
relative return.
o An overweight in the energy sector proved advantageous, but was
overshadowed by disappointing stock selection among oil and gas names. The
underperformance was concentrated among oil refiners, whose profit margins
were compressed by higher oil prices. Elsewhere within the Portfolio,
security selection in financials (particularly capital markets names) and
materials (primarily in metals and mining) hampered results.
o On the positive side, stock selection in industrials, particularly in the
machinery sub-sector, contributed positively to performance. The
Portfolio's significant underweight in both the telecommunication services
and utilities sectors also benefited the relative return.
Describe recent Portfolio activity.
o During the period, we increased the Portfolio's exposure to the
industrials, energy and materials sectors. We reduced exposure to the
consumer discretionary and consumer staples sectors.
o Among our largest purchases were Pfizer, Inc., Merck & Co., Allstate
Corp., Capital One Financial Corp. and Gap, Inc. Our largest sales
included American International Group, Inc., Goldman Sachs Group, Inc.,
JP Morgan Chase & Co., Janus Capital Group Inc. and Mosaic Co.
Describe Portfolio positioning at period-end.
o On April 30, 2008, the Portfolio was overweight relative to the benchmark
in information technology, health care, industrials and energy, and
underweight in the financials, consumer staples, utilities,
telecommunication services and consumer discretionary sectors.
o We continue to expect lackluster U.S. economic growth over the next
several quarters as counteracting forces prevent both an outright
recession and a return to its historical trend or above-trend growth.
While inflationary problems do exist in some emerging markets, we expect
inflationary pressures in the U.S. to diminish in the months ahead,
particularly since the credit squeeze and housing bust are both
deflationary forces and the economy continues to operate below its
potential. We recognize that economic risks remain and the rally in global
equity prices late in the semi-annual period may have advanced to the
point at which some additional corrective action could take place. In our
view, however, the broad economic, corporate earnings and inflationary
backdrop should benefit most market sectors and act as a foundation for
improved market conditions, which we believe has already begun to fall
into place.
Performance Summary for the Period Ended April 30, 2008
Aggregate
Total Returns*
-----------------
Since Inception**
- --------------------------------------------------------------------------------
Class K .................................................. -6.90%
Russell 1000 Growth Index*** ............................. -2.95%
- --------------------------------------------------------------------------------
* Assuming maximum sales charges. See "About Fund Performance" on page 7 for
a detailed description of share classes, including any related sales
charges and fees.
** The Fund commenced operations on January 3, 2008.
*** 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.
Past performance is not indicative of future results.
6 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
About Fund Performance BlackRock Large Cap Series Funds, Inc.
o Class K Shares are not subject to any sales charge. Class K Shares bear no
ongoing distribution or service fees and are available only to eligible
investors.
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 pages 4 - 6 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
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 below (which
are based on a hypothetical investment of $1,000 invested on January 3, 2008 and
held through April 30, 2008) 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.
Expense Example
Actual Hypothetical**
----------------------------------------------------- ----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
January 3, 2007 April 30, 2008 During the Period* January 3, 2007 April 30, 2008 During the Period*
- ------------------------------------------------------------------------------------------------------------------------------------
BlackRock Large Cap Core
Retirement Portfolio .... $1,000 $902.60 $1.82 $1,000 $1,014.38 $1.93
BlackRock Large Cap Growth
Retirement Portfolio .... $1,000 $907.10 $1.98 $1,000 $1,014.18 $2.10
BlackRock Large Cap Value
Retirement Portfolio .... $1,000 $931.00 $1.95 $1,000 $1,014.28 $2.03
- ------------------------------------------------------------------------------------------------------------------------------------
* For each Portfolio, expenses are equal to the annualized expense ratio for
the class (0.59% for BlackRock Large Cap Core Retirement Portfolio, 0.64%
for BlackRock Large Cap Growth Retirement Portfolio and 0.62% for
BlackRock Large Cap Value Retirement Portfolio), multiplied by the average
account value over the period, multiplied by 119/366 (to reflect the
period shown). Because the Fund is a feeder fund, the expense table
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 period divided by 366.
See "Disclosure of Expenses" for further information on how expenses were
calculated.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 7
Statements of Assets and Liabilities BlackRock Large Cap Series Funds, Inc.
BlackRock BlackRock BlackRock
Large Cap Core Large Cap Growth Large Cap Value
Retirement Retirement Retirement
April 30, 2008 (Unaudited) Portfolio Portfolio Portfolio
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investment at value -- Master Large Cap Core Portfolio,
Master Large Cap Growth Portfolio and Master Large Cap Value
Portfolio (the "Portfolios"), respectively 1 ............................... $ 147,619,797 $ 117,860,184 $ 108,531,586
Receivable from advisor ...................................................... 8,925 17,608 14,461
Other assets ................................................................. 33,491 33,949 33,191
-------------------------------------------------
Total assets ................................................................. 147,662,213 117,911,741 108,579,238
-------------------------------------------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Other affiliates payable ..................................................... 28,098 26,888 26,700
-------------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets ................................................................... $ 147,634,115 $ 117,884,853 $ 108,552,538
=================================================
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Shares of Common Stock, $0.10 par value, 2
200,000,000 shares authorized .............................................. $ 1,234,828 $ 1,160,727 $ 628,829
Paid-in capital in excess of par ............................................. 162,622,182 128,485,536 116,502,380
Undistributed net investment income .......................................... 266,358 60,371 284,769
Accumulated net realized losses allocated from the Portfolios ................ (6,918,973) (3,865,032) (2,327,318)
Net unrealized appreciation/depreciation allocated from the Portfolios ....... (9,570,280) (7,956,749) (6,536,122)
-------------------------------------------------
Net Assets ................................................................... $ 147,634,115 $ 117,884,853 $ 108,552,538
=================================================
Class K -- Net asset value per common share .................................. $ 11.96 $ 10.16 $ 17.26
=================================================
1 Cost ................................................................... $ 157,190,077 $ 125,816,933 $ 115,067,708
=================================================
2 Shares outstanding ..................................................... 12,348,278 11,607,269 6,288,292
=================================================
See Notes to Financial Statements.
8 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Statements of Operations BlackRock Large Cap Series Funds, Inc.
BlackRock BlackRock BlackRock
Large Cap Core Large Cap Growth Large Cap Value
Retirement Retirement Retirement
Period January 3, 2008 1 to April 30, 2008 (Unaudited) Portfolio Portfolio Portfolio
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income allocated from the Portfolios:
Dividends ................................................................ $ 520,916 $ 279,946 $ 488,397
Securities lending ....................................................... 36,969 24,481 19,864
Interest from affiliates ................................................. 226 1,198 1,958
Expenses ................................................................. (241,078) (210,986) (185,528)
-------------------------------------------------
Total income ................................................................. 317,033 94,639 324,691
-------------------------------------------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Transfer agent ............................................................... 39,723 38,006 37,387
Printing ..................................................................... 8,545 8,309 8,101
Offering ..................................................................... 7,492 7,502 7,339
Professional ................................................................. 5,933 5,581 6,996
Registration ................................................................. 2,234 1,748 1,717
Miscellaneous ................................................................ 813 815 796
-------------------------------------------------
Total expenses ............................................................... 64,740 61,961 62,336
Less fees waived by advisor .................................................. (14,065) (27,693) (22,414)
-------------------------------------------------
Total expenses after waiver .................................................. 50,675 34,268 39,922
-------------------------------------------------
Net investment income ........................................................ 266,358 60,371 284,769
-------------------------------------------------
===================================================================================================================================
Realized and Unrealized Loss Allocated from the Portfolios
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized loss from investments ........................................... (6,918,973) (3,865,032) (2,327,318)
Net change in unrealized appreciation/depreciation on investments ............ (9,570,280) (7,956,749) (6,536,122)
-------------------------------------------------
Total realized and unrealized loss ........................................... (16,489,253) (11,821,781) (8,863,440)
-------------------------------------------------
Net Decrease in Net Assets Resulting from Operations ......................... $ (16,222,895) $ (11,761,410) $ (8,578,671)
=================================================
1 Commencement of operations.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 9
Statements of Changes in Net Assets BlackRock Large Cap Series Funds, Inc.
Period January 3, 2008 1
to April 30, 2008 (Unaudited)
-------------------------------------------------
BlackRock BlackRock BlackRock
Large Cap Core Large Cap Growth Large Cap Value
Retirement Retirement Retirement
Increase (Decrease) in Net Assets: Portfolio Portfolio Portfolio
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ........................................................ $ 266,358 $ 60,371 $ 284,769
Net realized loss ............................................................ (6,918,973) (3,865,032) (2,327,318)
Net change in unrealized appreciation/depreciation ........................... (9,570,280) (7,956,749) (6,536,122)
-------------------------------------------------
Net decrease in net assets resulting from operations ......................... (16,222,895) (11,761,410) (8,578,671)
-------------------------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions ........... 163,857,010 129,646,263 117,131,209
-------------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ................................................. 147,634,115 117,884,853 108,552,538
Beginning of period .......................................................... -- -- --
-------------------------------------------------
End of period ................................................................ $ 147,634,115 $ 117,884,853 $ 108,552,538
=================================================
End of period undistributed net investment income ............................ $ 266,358 $ 60,371 $ 284,769
=================================================
1 Commencement of operations.
See Notes to Financial Statements.
10 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Financial Highlights BlackRock Large Cap Series Funds, Inc.
Class K
-------------------------------------------------
Period January 3, 2008 1
to April 30, 2008 (Unaudited)
-------------------------------------------------
BlackRock BlackRock BlackRock
Large Cap Core Large Cap Growth Large Cap Value
Retirement Retirement Retirement
Portfolio Portfolio Portfolio
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...................................... $ 13.25 $ 11.20 $ 18.54
-------------------------------------------------
Net investment income 2 ................................................... 0.02 0.01 0.04
Net realized and unrealized loss .......................................... (1.31) (1.05) (1.32)
-------------------------------------------------
Net decrease from investment operations ................................... (1.29) (1.04) (1.28)
-------------------------------------------------
Net asset value, end of period ............................................ $ 11.96 $ 10.16 $ 17.26
=================================================
================================================================================================================================
Total Investment Return
- --------------------------------------------------------------------------------------------------------------------------------
Total investment return ................................................... (9.74%) 3 (9.29%) 3 (6.90%) 3
=================================================
================================================================================================================================
Ratios to Average Net Assets 4,5
- --------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver ............................................... 0.59% 0.64% 0.62%
=================================================
Total expenses ............................................................ 0.62% 0.71% 0.68%
=================================================
Net investment income ..................................................... 0.54% 0.16% 0.78%
=================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ........................................... $ 147,634 $ 117,885 $ 108,553
=================================================
Portfolio turnover ........................................................ 52% 73% 45%
=================================================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Aggregate total investment return.
4 Includes the Portfolio's share of the Master LLC's allocated expenses
and/or net investment income.
5 Annualized.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 11
Notes to Financial Statements (Unaudited) BlackRock Large Cap Series Funds, Inc.
1. Significant Accounting Policies:
BlackRock Large Cap Core Retirement Portfolio, BlackRock Large Cap Growth
Retirement Portfolio and BlackRock Large Cap Value Retirement Portfolio (the
"Funds" or individually as the "Fund"), constituting three of the series of
BlackRock Large Cap Series Funds, Inc. are registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as diversified, open-end
management 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,
constituting Master Large Cap Series LLC (the "Master LLC"), which has the same
investment objective and strategies as the corresponding Fund. 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
accounting principles generally accepted in the United States of America, 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 Retirement Portfolio, BlackRock Large Cap Growth
Retirement Portfolio and BlackRock Large Cap Value Retirement Portfolio, were
3.3%, 11.6% and 2.2%, respectively.
The following is a summary of significant accounting policies followed by the
Funds:
Valuation of Investments: Each Fund records its investment in the corresponding
Portfolio at fair value. Valuation of securities held by the Portfolios is
discussed in Note 1 of the Portfolios' Notes to Financial Statements, which are
included elsewhere in this report.
Financial Accounting Standards Board ("FASB") Statement of Financial Accounting
Standards No. 157, "Fair Value Measurements" ("FAS 157") clarifies the
definition of fair value, establishes a framework for measuring fair values and
requires additional disclosures about the use of fair value measurements.
Various inputs are used in determining the fair value of investments, which are
as follows:
o Level 1 -- price quotations in active markets/exchanges for identical
securities
o Level 2 -- other observable inputs (including, but not limited to: quoted
prices for similar assets or liabilities in markets that are not active,
inputs other than quoted prices that are observable for the assets or
liabilities (such as interest rates, yield curves, volatilities,
prepayment speeds, loss severities, credit risks, and default rates) or
other market-corroborated inputs)
o Level 3 -- unobservable inputs based on the best information available in
the circumstance, to the extent observable inputs are not available
(including the Fund's own assumptions used in determining the fair value
of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
The following table summarizes the inputs used as of April 30, 2008 in
determining the fair valuation of the Fund's investments:
Investments in Securities
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Large Cap Core Large Cap Growth Large Cap Value
Valuation Retirement Retirement Retirement
Inputs Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Level 1 -- -- --
Level 2 $147,619,797 $117,860,184 $108,531,586
Level 3 -- -- --
- --------------------------------------------------------------------------------
Total $147,619,797 $117,860,184 $108,531,586
================================================================================
Investment Transactions and Net Investment Income: Investment transactions in
the Portfolios are accounted for on a trade date basis. 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.
Dividends and Distributions to Shareholders: Dividends and distributions paid by
each Fund are recorded on the ex-dividend dates.
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 its shareholders.
Therefore, no federal income tax provision is required.
FASB Interpretation No. 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 investment companies, before being measured and recognized in
the financial statements. The administrator has evaluated the application of FIN
48 to each Fund and has determined that the adoption of FIN 48 does not have a
material impact on the Funds' financial statements. Each Fund files U.S. federal
and various state and local tax returns. No income tax returns are currently
under examination.
Recent Accounting Pronouncement: In March 2008, Statement of Financial
Accounting Standards No. 161, "Disclosures about Derivative Instruments and
Hedging Activities -- an amendment of FASB Statement No. 133" ("FAS 161"), was
issued and is effective for fiscal years beginning
12 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Notes to Financial Statements (concluded) BlackRock Large Cap Series Funds, Inc.
after November 15, 2008. FAS 161 is intended to improve financial reporting for
derivative instruments by requiring enhanced disclosure that enables investors
to understand how and why an entity uses derivatives, how derivatives are
accounted for, and how derivative instruments affect an entity's results of
operations and financial position. The administrator is currently evaluating the
implications of FAS 161 and the impact on each Fund's financial statement
disclosures, if any, is currently being assessed.
Other: Expenses directly related to each Fund are charged to that Fund. Other
operating expenses shared by several funds are pro-rated among those funds on
the basis of relative net assets or other appropriate methods. Offering costs
are amortized over a twelve month period beginning with the commencement of
operations.
2. Transactions with Affiliates:
Each Fund has entered into an Administration Agreement with BlackRock Advisors,
LLC (the "Administrator"), an indirect, wholly owned subsidiary of BlackRock,
Inc., to provide administrative services (other than investment advice and
related portfolio activities). The Administrator does not receive an
administration fee. The Administrator has contractually agreed to waive direct
expenses of each Fund to the extent necessary to limit the ordinary annual
operating expenses of each Fund to 0.65% of the average daily net assets of each
Fund. This arrangement has a one year term and is renewable. Merrill Lynch &
Co., Inc. ("Merrill Lynch") and The PNC Financial Services Group, Inc. ("PNC")
are principal owners of BlackRock, Inc.
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.
PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the
Administrator, serves as transfer agent. Transfer agency fees borne by each of
the Funds are comprised of those fees charged for all shareholder communications
including shareholder reports, dividend and distribution notices, and proxy
materials for shareholders meetings, as well as per account and per transaction
fees related to servicing and maintenance of shareholder accounts, including the
issuing, redeeming and transferring of shares of each class of the Fund, check
writing, anti-money laundering services, and customer identification services.
Certain officers and/or directors of the Funds are officers and/or directors of
BlackRock, Inc. or its affiliates.
3. Capital Share Transactions:
Transactions in capital shares for Class K were as follows:
Period January 3, 2008 1
to April 30, 2008
--------------------------
BlackRock Large Cap Core Retirement Portfolio Shares Amount
- -------------------------------------------------------------------------------
Class K
- -------------------------------------------------------------------------------
Shares sold .................................... 13,868,242 $ 182,293,516
Shares redeemed ................................ (1,519,964) (18,436,506)
--------------------------
Net increase ................................... 12,348,278 $ 163,857,010
==========================
BlackRock Large Cap Growth Retirement Portfolio
- -------------------------------------------------------------------------------
Class K
- -------------------------------------------------------------------------------
Shares sold .................................... 13,104,397 $ 145,040,817
Shares redeemed ................................ (1,497,128) (15,394,554)
--------------------------
Net increase ................................... 11,607,269 $ 129,646,263
==========================
BlackRock Large Cap Value Retirement Portfolio
- -------------------------------------------------------------------------------
Class K
- -------------------------------------------------------------------------------
Shares sold .................................... 7,309,388 $ 134,652,265
Shares redeemed ................................ (1,021,096) (17,521,056)
--------------------------
Net increase ................................... 6,288,292 $ 117,131,209
==========================
1 Commencement of operations.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 13
Portfolio Information as of April 30, 2008 Master Large Cap Series LLC
Sector Representation
Percent of
Master Large Cap Core Portfolio Long-Term Investments
- --------------------------------------------------------------------------------
Information Technology .................................................... 25%
Health Care ............................................................... 19
Energy .................................................................... 18
Industrials ............................................................... 13
Consumer Discretionary .................................................... 11
Financials ................................................................ 7
Materials ................................................................. 4
Consumer Staples .......................................................... 2
Telecommunication Services ................................................ 1
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Long-Term Investments
- --------------------------------------------------------------------------------
Information Technology .................................................... 37%
Health Care ............................................................... 21
Industrials ............................................................... 15
Consumer Discretionary .................................................... 11
Materials ................................................................. 6
Energy .................................................................... 6
Consumer Staples .......................................................... 2
Financials ................................................................ 2
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Long-Term Investments
- --------------------------------------------------------------------------------
Energy .................................................................... 23%
Financials ................................................................ 18
Industrials ............................................................... 17
Health Care ............................................................... 15
Information Technology .................................................... 13
Consumer Discretionary .................................................... 5
Materials ................................................................. 5
Consumer Staples .......................................................... 2
Telecommunication Services ................................................ 2
- --------------------------------------------------------------------------------
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 ............................................... 17%
Health Care Providers & Services .......................................... 8
Computers & Peripherals ................................................... 8
Software .................................................................. 7
Specialty Retail .......................................................... 6
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Net Assets
- --------------------------------------------------------------------------------
Software .................................................................. 12%
Computers & Peripherals ................................................... 10
Health Care Providers & Services .......................................... 7
Specialty Retail .......................................................... 6
Semiconductors & Semiconductor Equipment .................................. 6
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Net Assets
- --------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels ............................................... 21%
Insurance ................................................................. 13
Machinery ................................................................. 7
Health Care Providers & Services .......................................... 6
Pharmaceuticals ........................................................... 5
- --------------------------------------------------------------------------------
14 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Portfolio Information (concluded) Master Large Cap Series LLC
Ten Largest Equity Holdings
Percent of
Master Large Cap Core Portfolio Net Assets
- --------------------------------------------------------------------------------
Exxon Mobil Corp. .......................................................... 5%
Chevron Corp. .............................................................. 3
Microsoft Corp. ............................................................ 2
International Business Machines Corp. ...................................... 2
ConocoPhillips ............................................................. 2
Pfizer, Inc. ............................................................... 2
Hewlett-Packard Co. ........................................................ 2
Oracle Corp. ............................................................... 2
Occidental Petroleum Corp. ................................................. 2
Johnson & Johnson .......................................................... 2
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Growth Portfolio Net Assets
- --------------------------------------------------------------------------------
Microsoft Corp. ............................................................ 4%
International Business Machines Corp. ...................................... 3
Hewlett-Packard Co. ........................................................ 3
Exxon Mobil Corp. .......................................................... 3
Oracle Corp. ............................................................... 2
Johnson & Johnson .......................................................... 2
Monsanto Co. ............................................................... 2
Baxter International, Inc. ................................................. 2
Texas Instruments, Inc. .................................................... 2
Lockheed Martin Corp. ...................................................... 2
- --------------------------------------------------------------------------------
Percent of
Master Large Cap Value Portfolio Net Assets
- --------------------------------------------------------------------------------
Exxon Mobil Corp. .......................................................... 7%
Chevron Corp. .............................................................. 4
ConocoPhillips ............................................................. 3
Pfizer, Inc. ............................................................... 3
General Electric Co. ....................................................... 3
Occidental Petroleum Corp. ................................................. 2
AT&T Inc. .................................................................. 2
Walt Disney Co. ............................................................ 2
The Allstate Corp. ......................................................... 2
International Business Machines Corp. ...................................... 2
- --------------------------------------------------------------------------------
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 15
Schedule of Investments April 30, 2008 (Unaudited)
Master Large Cap Core Portfolio
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
Consumer Discretionary -- 11.2%
Household Durables -- 0.1%
NVR, Inc. (a) 10,000 $ 6,135,000
- -------------------------------------------------------------------------------
Internet & Catalog Retail -- 1.0%
Expedia, Inc. (a)(b) 1,830,000 46,225,800
- -------------------------------------------------------------------------------
Media -- 2.7%
Omnicom Group Inc. 1,050,000 50,127,000
Walt Disney Co. (b) 2,140,000 69,400,200
--------------
119,527,200
- -------------------------------------------------------------------------------
Specialty Retail -- 6.2%
AutoZone, Inc. (a) 360,000 43,470,000
Best Buy Co., Inc. (b) 1,120,000 48,182,400
GameStop Corp. Class A (a)(b) 840,000 46,233,600
The Gap, Inc. 2,680,000 49,901,600
RadioShack Corp. (b) 2,060,800 28,645,120
Ross Stores, Inc. 370,000 12,391,300
TJX Cos., Inc. 1,500,000 48,330,000
--------------
277,154,020
- -------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods -- 1.2%
Nike, Inc. Class B (b) 780,000 52,104,000
- -------------------------------------------------------------------------------
Total Consumer Discretionary 501,146,020
===============================================================================
Consumer Staples -- 1.9%
Beverages -- 0.3%
Coca-Cola Enterprises, Inc. 260,000 5,850,000
Pepsi Bottling Group, Inc. 240,000 8,090,400
--------------
13,940,400
- -------------------------------------------------------------------------------
Food & Staples Retailing -- 0.1%
BJ's Wholesale Club, Inc. (a)(b) 180,000 6,861,600
- -------------------------------------------------------------------------------
Household Products -- 0.7%
The Procter & Gamble Co. 440,000 29,502,000
- -------------------------------------------------------------------------------
Personal Products -- 0.8%
Herbalife Ltd. 840,000 36,775,200
- -------------------------------------------------------------------------------
Total Consumer Staples 87,079,200
===============================================================================
Energy -- 18.1%
Energy Equipment & Services -- 1.1%
ENSCO International, Inc. 760,000 48,434,800
- -------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 17.0%
Anadarko Petroleum Corp. 470,000 31,283,200
Apache Corp. 450,000 60,606,000
Chevron Corp. (b) 1,210,000 116,341,500
ConocoPhillips 1,100,000 94,765,000
Devon Energy Corp. 310,000 35,154,000
Exxon Mobil Corp. 2,260,000 210,338,200
Frontier Oil Corp. 1,210,000 30,068,500
Marathon Oil Corp. 480,000 21,873,600
Noble Energy, Inc. (b) 550,000 47,850,000
Occidental Petroleum Corp. (b) 850,000 70,728,500
Valero Energy Corp. 940,000 45,919,000
--------------
764,927,500
- -------------------------------------------------------------------------------
Total Energy 813,362,300
===============================================================================
Financials -- 7.2%
Consumer Finance -- 1.1%
Capital One Financial Corp. 890,000 47,170,000
- -------------------------------------------------------------------------------
Diversified Financial Services -- 0.4%
Bank of America Corp. 290,000 10,886,600
JPMorgan Chase & Co. 160,000 7,624,000
--------------
18,510,600
- -------------------------------------------------------------------------------
Insurance -- 5.7%
ACE Ltd. 330,000 19,895,700
The Allstate Corp. (b) 1,080,000 54,388,800
Chubb Corp. 980,000 51,910,600
MetLife, Inc. 950,000 57,807,500
The Travelers Cos., Inc. 1,110,000 55,944,000
UnumProvident Corp. (b) 750,000 17,407,500
--------------
257,354,100
- -------------------------------------------------------------------------------
Total Financials 323,034,700
===============================================================================
Health Care -- 19.1%
Biotechnology -- 1.1%
Biogen Idec, Inc. (a)(b) 840,000 50,979,600
- -------------------------------------------------------------------------------
Health Care Equipment & Supplies -- 3.1%
Baxter International, Inc. 930,000 57,957,600
C.R. Bard, Inc. 530,000 49,910,100
Kinetic Concepts, Inc. (a) 842,200 33,401,652
--------------
141,269,352
- -------------------------------------------------------------------------------
Health Care Providers & Services -- 8.4%
Aetna, Inc. 1,150,000 50,140,000
AmerisourceBergen Corp. 700,000 28,385,000
Cigna Corp. 490,000 20,927,900
Coventry Health Care, Inc. (a)(b) 810,000 36,231,300
Express Scripts, Inc. (a)(b) 710,000 49,714,200
Humana, Inc. (a) 1,000,000 47,790,000
Lincare Holdings, Inc. (a) 1,010,000 24,583,400
McKesson Corp. 150,000 7,818,000
Medco Health Solutions, Inc. (a) 1,070,000 53,007,800
UnitedHealth Group, Inc. 170,000 5,547,100
WellPoint, Inc. (a) 1,070,000 53,232,500
--------------
377,377,200
- -------------------------------------------------------------------------------
Life Sciences Tools & Services -- 1.4%
Applera Corp. -- Applied Biosystems Group 160,000 5,105,600
Invitrogen Corp. (a) 210,000 19,649,700
Waters Corp. (a) 590,000 36,261,400
--------------
61,016,700
- -------------------------------------------------------------------------------
Pharmaceuticals -- 5.1%
Eli Lilly & Co. 1,180,000 56,805,200
Forest Laboratories, Inc. (a) 320,000 11,107,200
Johnson & Johnson 1,040,000 69,773,600
Pfizer, Inc. 4,570,000 91,902,700
--------------
229,588,700
- -------------------------------------------------------------------------------
Total Health Care 860,231,552
===============================================================================
See Notes to Financial Statements.
16 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Schedule of Investments (continued) Master Large Cap Core Portfolio
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
Industrials -- 12.6%
Aerospace & Defense -- 3.9%
Honeywell International, Inc. 240,000 $ 14,256,000
L-3 Communications Holdings, Inc. 440,000 49,038,000
Lockheed Martin Corp. (b) 560,000 59,382,400
Raytheon Co. 850,000 54,374,500
--------------
177,050,900
- -------------------------------------------------------------------------------
Commercial Services & Supplies -- 1.1%
Allied Waste Industries, Inc. (a) 620,700 7,671,852
The Brink's Co. 30,000 2,182,500
Waste Management, Inc. 1,120,000 40,432,000
--------------
50,286,352
- -------------------------------------------------------------------------------
Electrical Equipment -- 1.0%
Rockwell Automation, Inc. (b) 790,000 42,841,700
- -------------------------------------------------------------------------------
Industrial Conglomerates -- 1.5%
General Electric Co. 2,040,000 66,708,000
- -------------------------------------------------------------------------------
Machinery -- 4.9%
AGCO Corp. (a) 700,000 42,091,000
Cummins, Inc. 590,000 36,963,500
Deere & Co. 650,000 54,645,500
Dover Corp. 410,000 20,282,700
Flowserve Corp. 90,000 11,168,100
Parker Hannifin Corp. 630,000 50,305,500
Toro Co. (b) 140,000 5,934,600
--------------
221,390,900
- -------------------------------------------------------------------------------
Road & Rail -- 0.2%
Ryder System, Inc. 130,000 8,901,100
- -------------------------------------------------------------------------------
Total Industrials 567,178,952
===============================================================================
Information Technology -- 24.8%
Communications Equipment -- 1.3%
Cisco Systems, Inc. (a) 290,000 7,435,600
Juniper Networks, Inc. (a)(b) 1,880,000 51,925,600
--------------
59,361,200
- -------------------------------------------------------------------------------
Computers & Peripherals -- 7.6%
Hewlett-Packard Co. 1,770,000 82,039,500
International Business Machines Corp. 820,000 98,974,000
Lexmark International, Inc. Class A (a)(b) 380,000 11,928,200
Seagate Technology 2,550,000 48,118,500
Sun Microsystems, Inc. (a) 3,250,000 50,895,000
Western Digital Corp. (a) 1,680,000 48,703,200
--------------
340,658,400
- -------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.7%
Avnet, Inc. (a) 760,000 19,904,400
Mettler Toledo International, Inc. (a) 130,000 12,383,800
--------------
32,288,200
- -------------------------------------------------------------------------------
IT Services -- 2.7%
Accenture Ltd. Class A 1,360,000 51,068,000
Computer Sciences Corp. (a) 792,900 34,562,511
Electronic Data Systems Corp. 1,770,000 32,851,200
--------------
118,481,711
- -------------------------------------------------------------------------------
Office Electronics -- 0.8%
Xerox Corp. 2,580,000 36,042,600
- -------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 4.5%
Integrated Device Technology, Inc. (a) 1,340,000 14,324,600
Intersil Corp. Class A 330,000 8,817,600
KLA-Tencor Corp. (b) 780,000 34,070,400
Novellus Systems, Inc. (a) 1,780,000 38,910,800
Texas Instruments, Inc. (b) 1,950,000 56,862,000
Xilinx, Inc. 2,030,000 50,283,100
--------------
203,268,500
- -------------------------------------------------------------------------------
Software -- 7.2%
BMC Software, Inc. (a) 1,390,000 48,316,400
CA, Inc. 890,000 19,704,600
Compuware Corp. (a) 1,620,000 12,214,800
McAfee, Inc. (a) 1,280,000 42,560,000
Microsoft Corp. 3,530,000 100,675,600
Oracle Corp. (a) 3,510,000 73,183,500
Symantec Corp. (a)(b) 400,000 6,888,000
Synopsys, Inc. (a) 930,000 21,492,300
--------------
325,035,200
- -------------------------------------------------------------------------------
Total Information Technology 1,115,135,811
===============================================================================
Materials -- 3.7%
Chemicals -- 0.5%
Eastman Chemical Co. 141,900 10,429,650
Monsanto Co. 90,000 10,261,800
--------------
20,691,450
- -------------------------------------------------------------------------------
Containers & Packaging -- 1.4%
Owens-Illinois, Inc. (a) 740,000 40,811,000
Packaging Corp. of America (b) 910,000 20,001,800
--------------
60,812,800
- -------------------------------------------------------------------------------
Metals & Mining -- 0.8%
Nucor Corp. 490,000 36,995,000
- -------------------------------------------------------------------------------
Paper & Forest Products -- 1.0%
International Paper Co. (b) 1,750,000 45,797,500
- -------------------------------------------------------------------------------
Total Materials 164,296,750
===============================================================================
Telecommunication Services -- 1.5%
Diversified Telecommunication Services -- 1.5%
AT&T Inc. 910,000 35,226,100
Qwest Communications International Inc. (b) 5,880,000 30,340,800
- -------------------------------------------------------------------------------
Total Telecommunication Services 65,566,900
===============================================================================
Total Common Stocks
(Cost -- $4,242,502,765) -- 100.1% 4,497,032,185
===============================================================================
Beneficial
Interest
Short-Term Securities (000)
===============================================================================
BlackRock Liquidity Series, LLC
Money Market Series, 2.85% (c)(d)(e) $496,650 496,650,100
- -------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $496,650,100) -- 11.0% 496,650,100
===============================================================================
Total Investments (Cost -- $4,739,152,865*) -- 111.1% 4,993,682,285
Liabilities in Excess of Other Assets -- (11.1%) (500,240,353)
--------------
Net Assets -- 100.0% $4,493,441,932
===============================================================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 17
Schedule of Investments (concluded) Master Large Cap Core Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ................................. $ 4,752,647,094
===============
Gross unrealized appreciation .................. $ 540,791,718
Gross unrealized depreciation .................. (299,756,527)
---------------
Net unrealized appreciation .................... $ 241,035,191
===============
(a) Non-income producing security.
(b) Security, or a portion of security, is on loan.
(c) Security was purchased with the cash proceeds from securities loans.
(d) 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
Activity Interest
Affiliate (000) Income
--------------------------------------------------------------------------
BlackRock Liquidity Series, LLC
Cash Sweep Series -- $ 6,973
BlackRock Liquidity Series, LLC
Money Market Series $ (385,790) $1,585,920
--------------------------------------------------------------------------
(e) Represents the current yield as of report date.
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
industry sub-classifications for reporting ease.
See Notes to Financial Statements.
18 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Schedule of Investments April 30, 2008 (Unaudited)
Master Large Cap Growth Portfolio
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
Consumer Discretionary -- 11.2%
Leisure Equipment & Products -- 1.0%
Hasbro, Inc. 290,000 $ 10,312,400
- -------------------------------------------------------------------------------
Media -- 2.6%
Omnicom Group Inc. 234,000 11,171,160
Walt Disney Co. 460,000 14,917,800
--------------
26,088,960
- -------------------------------------------------------------------------------
Specialty Retail -- 6.3%
AutoZone, Inc. (a) 90,000 10,867,500
Best Buy Co., Inc. (b) 289,000 12,432,780
GameStop Corp. Class A (a)(b) 200,000 11,008,000
RadioShack Corp. (b) 540,000 7,506,000
Ross Stores, Inc. 320,000 10,716,800
TJX Cos., Inc. (b) 370,000 11,921,400
--------------
64,452,480
- -------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods -- 1.3%
Nike, Inc. Class B (b) 200,000 13,360,000
- -------------------------------------------------------------------------------
Total Consumer Discretionary 114,213,840
===============================================================================
Consumer Staples -- 2.1%
Beverages -- 1.0%
Pepsi Bottling Group, Inc. 293,000 9,877,030
- -------------------------------------------------------------------------------
Personal Products -- 1.1%
Herbalife Ltd. 260,000 11,382,800
- -------------------------------------------------------------------------------
Total Consumer Staples 21,259,830
===============================================================================
Energy -- 5.7%
Energy Equipment & Services -- 1.1%
ENSCO International, Inc. 180,000 11,471,400
- -------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 4.6%
Exxon Mobil Corp. 275,000 25,594,250
Noble Energy, Inc. 124,000 10,788,000
Valero Energy Corp. 220,000 10,747,000
--------------
47,129,250
- -------------------------------------------------------------------------------
Total Energy 58,600,650
===============================================================================
Financials -- 1.5%
Insurance -- 1.5%
PartnerRe Ltd. 140,000 10,357,200
Transatlantic Holdings, Inc. 70,000 4,539,500
- -------------------------------------------------------------------------------
Total Financials 14,896,700
===============================================================================
Health Care -- 21.3%
Biotechnology -- 1.1%
Biogen Idec, Inc. (a) 180,000 10,924,200
- -------------------------------------------------------------------------------
Health Care Equipment & Supplies -- 4.1%
Baxter International, Inc. 259,000 16,140,880
Becton Dickinson & Co. 10,000 894,000
C.R. Bard, Inc. 130,000 12,242,100
Kinetic Concepts, Inc. (a) 270,000 10,708,200
St. Jude Medical, Inc. (a) 40,000 1,751,200
--------------
41,736,380
- -------------------------------------------------------------------------------
Health Care Providers & Services -- 7.4%
Aetna, Inc. 290,000 12,644,000
AmerisourceBergen Corp. 265,000 10,745,750
Express Scripts, Inc. (a)(b) 170,000 11,903,400
Humana, Inc. (a) 60,000 2,867,400
Laboratory Corp. of America Holdings (a) 10,000 756,200
Lincare Holdings, Inc. (a) 430,000 10,466,200
Medco Health Solutions, Inc. (a) 290,000 14,366,600
WellPoint, Inc. (a) 240,000 11,940,000
--------------
75,689,550
- -------------------------------------------------------------------------------
Life Sciences Tools & Services -- 3.0%
Applera Corp. -- Applied Biosystems Group 350,000 11,168,500
Invitrogen Corp. (a) 110,000 10,292,700
Waters Corp. (a) 150,000 9,219,000
--------------
30,680,200
- -------------------------------------------------------------------------------
Pharmaceuticals -- 5.7%
Eli Lilly & Co. 220,000 10,590,800
Forest Laboratories, Inc. (a) 330,000 11,454,300
Johnson & Johnson 310,000 20,797,900
Pfizer, Inc. 177,600 3,571,536
Watson Pharmaceuticals, Inc. (a) 360,000 11,174,400
--------------
57,588,936
- -------------------------------------------------------------------------------
Total Health Care 216,619,266
===============================================================================
Industrials -- 15.4%
Aerospace & Defense -- 6.1%
DRS Technologies, Inc. 181,000 11,301,640
General Dynamics Corp. 130,000 11,754,600
L-3 Communications Holdings, Inc. 100,000 11,145,000
Lockheed Martin Corp. 151,000 16,012,040
Raytheon Co. 190,000 12,154,300
--------------
62,367,580
- -------------------------------------------------------------------------------
Commercial Services & Supplies -- 3.3%
Allied Waste Industries, Inc. (a) 670,000 8,281,200
The Brink's Co. 90,000 6,547,500
Steelcase, Inc. Class A (b) 550,000 6,094,000
Waste Management, Inc. 349,000 12,598,900
--------------
33,521,600
- -------------------------------------------------------------------------------
Electrical Equipment -- 1.2%
Hubbell, Inc. Class B 240,000 10,735,200
Rockwell Automation, Inc. 30,000 1,626,900
--------------
12,362,100
- -------------------------------------------------------------------------------
Machinery -- 4.8%
AGCO Corp. (a) 180,000 10,823,400
Deere & Co. 130,000 10,929,100
Dover Corp. 230,000 11,378,100
Flowserve Corp. 90,000 11,168,100
Toro Co. (b) 100,000 4,239,000
--------------
48,537,700
- -------------------------------------------------------------------------------
Total Industrials 156,788,980
===============================================================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 19
Schedule of Investments (continued) Master Large Cap Growth Portfolio
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
Information Technology -- 36.7%
Communications Equipment -- 1.4%
Cisco Systems, Inc. (a) 70,000 $ 1,794,800
Juniper Networks, Inc. (a)(b) 440,000 12,152,800
--------------
13,947,600
- -------------------------------------------------------------------------------
Computers & Peripherals -- 10.4%
Hewlett-Packard Co. 580,000 26,883,000
International Business Machines Corp. 241,000 29,088,700
Lexmark International, Inc. Class A (a) 201,000 6,309,390
QLogic Corp. (a) 690,000 11,012,400
Seagate Technology 570,000 10,755,900
Sun Microsystems, Inc. (a) 700,000 10,962,000
Western Digital Corp. (a) 370,000 10,726,300
--------------
105,737,690
- -------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 1.7%
Agilent Technologies, Inc. (a) 225,000 6,797,250
Mettler Toledo International, Inc. (a) 108,000 10,288,080
--------------
17,085,330
- -------------------------------------------------------------------------------
IT Services -- 4.4%
Accenture Ltd. Class A 370,000 13,893,500
Affiliated Computer Services, Inc. Class A (a) 210,000 11,123,700
Electronic Data Systems Corp. 420,000 7,795,200
Hewitt Associates, Inc. Class A (a) 280,000 11,480,000
--------------
44,292,400
- -------------------------------------------------------------------------------
Internet Software & Services -- 0.7%
eBay, Inc. (a) 240,000 7,509,600
- -------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 6.2%
Integrated Device Technology, Inc. (a) 690,000 7,376,100
Intersil Corp. Class A 380,000 10,153,600
KLA-Tencor Corp. 230,000 10,046,400
Novellus Systems, Inc. (a) 370,000 8,088,200
Texas Instruments, Inc. (b) 551,000 16,067,160
Xilinx, Inc. (b) 480,000 11,889,600
--------------
63,621,060
- -------------------------------------------------------------------------------
Software -- 11.9%
BMC Software, Inc. (a) 320,000 11,123,200
CA, Inc. 500,000 11,070,000
Compuware Corp. (a) 1,410,000 10,631,400
McAfee, Inc. (a) 310,000 10,307,500
Microsoft Corp. 1,500,000 42,780,000
Oracle Corp. (a) 1,020,000 21,267,000
Symantec Corp. (a) 189,000 3,254,580
Synopsys, Inc. (a) 480,000 11,092,800
--------------
121,526,480
- -------------------------------------------------------------------------------
Total Information Technology 373,720,160
===============================================================================
Materials -- 6.2%
Chemicals -- 2.6%
Monsanto Co. 161,000 18,357,220
The Mosaic Co. (a)(b) 70,000 8,575,700
--------------
26,932,920
- -------------------------------------------------------------------------------
Containers & Packaging -- 2.2%
Crown Holdings, Inc. (a) 130,000 3,489,200
Owens-Illinois, Inc. (a) 201,000 11,085,150
Packaging Corp. of America 360,000 7,912,800
--------------
22,487,150
- -------------------------------------------------------------------------------
Metals & Mining -- 1.4%
Carpenter Technology Corp. 50,000 2,564,000
Nucor Corp. 150,000 11,325,000
--------------
13,889,000
- -------------------------------------------------------------------------------
Total Materials 63,309,070
===============================================================================
Total Common Stocks
(Cost -- $1,001,752,394) -- 100.1% 1,019,408,496
===============================================================================
Beneficial
Interest
Short-Term Securities (000)
===============================================================================
BlackRock Liquidity Series, LLC
Cash Sweep Series, 3.03% (c)(d)(f) -- 194
BlackRock Liquidity Series, LLC
Money Market Series, 2.85% (c)(d)(e) $83,392 83,392,350
- -------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $83,392,544) -- 8.2% 83,392,544
===============================================================================
Total Investments (Cost -- $1,085,144,938*) -- 108.3% 1,102,801,040
Liabilities in Excess of Other Assets -- (8.3%) (84,896,315)
--------------
Net Assets -- 100.0% $1,017,904,725
==============
See Notes to Financial Statements.
20 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Schedule of Investments (concluded) Master Large Cap Growth Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ............................... $ 1,087,641,326
===============
Gross unrealized appreciation ................ $ 83,313,771
Gross unrealized depreciation ................ (68,154,057)
---------------
Net unrealized appreciation .................. $ 15,159,714
===============
(a) Non-income producing security.
(b) Security, or a portion of security, is on loan.
(c) 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
Activity Interest
Affiliate (000) Income
-------------------------------------------------------------------------
BlackRock Liquidity Series, LLC
Cash Sweep Series $ (1,956) $ 23,740
BlackRock Liquidity Series, LLC
Money Market Series $(112,515) $ 315,848
-------------------------------------------------------------------------
(d) Represents the current yield as of report date.
(e) Security was purchased with the cash proceeds from securities loans.
(f) Amount is less than $1,000.
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.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 21
Schedule of Investments April 30, 2008 (Unaudited)
Master Large Cap Value Portfolio
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
Consumer Discretionary -- 4.8%
Household Durables -- 0.1%
NVR, Inc. (a) 10,000 $ 6,135,000
- -------------------------------------------------------------------------------
Internet & Catalog Retail -- 1.1%
Expedia, Inc. (a)(b) 2,070,000 52,288,200
- -------------------------------------------------------------------------------
Leisure Equipment & Products -- 0.1%
Hasbro, Inc. 130,000 4,622,800
- -------------------------------------------------------------------------------
Media -- 1.6%
Walt Disney Co. 2,400,000 77,832,000
- -------------------------------------------------------------------------------
Specialty Retail -- 1.9%
The Gap, Inc. (b) 3,080,000 57,349,600
RadioShack Corp. (b) 2,700,000 37,530,000
--------------
94,879,600
- -------------------------------------------------------------------------------
Total Consumer Discretionary 235,757,600
===============================================================================
Consumer Staples -- 1.9%
Beverages -- 1.7%
Coca-Cola Enterprises, Inc. (b) 1,440,000 32,400,000
Pepsi Bottling Group, Inc. 1,440,000 48,542,400
--------------
80,942,400
- -------------------------------------------------------------------------------
Food & Staples Retailing -- 0.1%
BJ's Wholesale Club, Inc. (a)(b) 170,000 6,480,400
- -------------------------------------------------------------------------------
Household Products -- 0.1%
Colgate-Palmolive Co. 100,000 7,070,000
- -------------------------------------------------------------------------------
Total Consumer Staples 94,492,800
===============================================================================
Energy -- 23.3%
Energy Equipment & Services -- 1.8%
ENSCO International, Inc. (b) 790,000 50,346,700
Tidewater, Inc. (b) 600,000 39,132,000
--------------
89,478,700
- -------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 21.5%
Anadarko Petroleum Corp. 1,060,000 70,553,600
Apache Corp. 100,000 13,468,000
Chevron Corp. 2,150,000 206,722,500
ConocoPhillips 1,800,000 155,070,000
Exxon Mobil Corp. 3,710,000 345,289,700
Marathon Oil Corp. (b) 1,390,000 63,342,300
Noble Energy, Inc. 660,000 57,420,000
Occidental Petroleum Corp. 1,220,000 101,516,200
Valero Energy Corp. 810,000 39,568,500
--------------
1,052,950,800
- -------------------------------------------------------------------------------
Total Energy 1,142,429,500
===============================================================================
Financials -- 18.5%
Capital Markets -- 1.1%
Ameriprise Financial, Inc. 1,100,000 52,239,000
- -------------------------------------------------------------------------------
Commercial Banks -- 0.3%
Comerica, Inc. 430,000 14,933,900
- -------------------------------------------------------------------------------
Consumer Finance -- 1.3%
Capital One Financial Corp. (b) 1,210,000 64,130,000
- -------------------------------------------------------------------------------
Diversified Financial Services -- 1.9%
Bank of America Corp. 760,000 28,530,400
JPMorgan Chase & Co. 460,000 21,919,000
The NASDAQ Stock Market, Inc. (a) 1,190,000 43,375,500
--------------
93,824,900
- -------------------------------------------------------------------------------
Insurance -- 12.9%
ACE Ltd. 1,060,000 63,907,400
The Allstate Corp. 1,480,000 74,532,800
American Financial Group, Inc. (b) 860,000 23,581,200
Chubb Corp. 1,260,000 66,742,200
Everest Re Group Ltd. 550,000 49,692,500
HCC Insurance Holdings, Inc. 730,000 18,016,400
The Hanover Insurance Group, Inc. 390,000 17,503,200
Hartford Financial Services Group, Inc. 110,000 7,839,700
MetLife, Inc. (b) 1,160,000 70,586,000
PartnerRe Ltd. 510,000 37,729,800
RenaissanceRe Holdings Ltd. 690,000 35,493,600
The Travelers Cos., Inc. 1,460,000 73,584,000
UnumProvident Corp. (b) 2,460,000 57,096,600
W.R. Berkley Corp. 1,450,000 37,250,500
--------------
633,555,900
- -------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.0%
Hudson City Bancorp, Inc. 2,410,000 46,103,300
- -------------------------------------------------------------------------------
Total Financials 904,787,000
===============================================================================
Health Care -- 15.3%
Biotechnology -- 1.2%
Biogen Idec, Inc. (a)(b) 970,000 58,869,300
- -------------------------------------------------------------------------------
Health Care Equipment & Supplies -- 0.7%
Kinetic Concepts, Inc. (a) 910,000 36,090,600
- -------------------------------------------------------------------------------
Health Care Providers & Services -- 5.9%
Aetna, Inc. 1,130,000 49,268,000
AmerisourceBergen Corp. 1,260,000 51,093,000
Cigna Corp. 860,000 36,730,600
Coventry Health Care, Inc. (a) 630,000 28,179,900
Humana, Inc. (a) 360,000 17,204,400
Medco Health Solutions, Inc. (a) 960,000 47,558,400
WellPoint, Inc. (a) 1,200,000 59,700,000
--------------
289,734,300
- -------------------------------------------------------------------------------
Life Sciences Tools & Services -- 2.2%
Applera Corp. -- Applied Biosystems Group (b) 1,730,000 55,204,300
Invitrogen Corp. (a) 560,000 52,399,200
--------------
107,603,500
- -------------------------------------------------------------------------------
Pharmaceuticals -- 5.3%
Eli Lilly & Co. (b) 1,220,000 58,730,800
Johnson & Johnson 140,000 9,392,600
King Pharmaceuticals, Inc. (a)(b) 1,330,000 12,488,700
Pfizer, Inc. 7,600,000 152,836,000
Watson Pharmaceuticals, Inc. (a) 790,000 24,521,600
--------------
257,969,700
- -------------------------------------------------------------------------------
Total Health Care 750,267,400
===============================================================================
See Notes to Financial Statements.
22 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Schedule of Investments (continued) Master Large Cap Value Portfolio
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
Industrials -- 16.7%
Aerospace & Defense -- 4.8%
DRS Technologies, Inc. (b) 310,000 $ 19,356,400
General Dynamics Corp. 530,000 47,922,600
L-3 Communications Holdings, Inc. (b) 530,000 59,068,500
Northrop Grumman Corp. 700,000 51,499,000
Raytheon Co. 920,000 58,852,400
--------------
236,698,900
- -------------------------------------------------------------------------------
Commercial Services & Supplies -- 1.9%
R.R. Donnelley & Sons Co. 1,210,000 37,074,400
Waste Management, Inc. 1,560,000 56,316,000
--------------
93,390,400
- -------------------------------------------------------------------------------
Electrical Equipment -- 0.1%
Hubbell, Inc. Class B 110,000 4,920,300
- -------------------------------------------------------------------------------
Industrial Conglomerates -- 2.6%
General Electric Co. 3,860,000 126,222,000
- -------------------------------------------------------------------------------
Machinery -- 7.1%
AGCO Corp. (a)(b) 740,000 44,496,200
Deere & Co. 840,000 70,618,800
Dover Corp. 1,170,000 57,879,900
Flowserve Corp. 270,000 33,504,300
Gardner Denver, Inc. (a) 540,000 25,083,000
Parker Hannifin Corp. (b) 770,000 61,484,500
SPX Corp. 470,000 57,810,000
--------------
350,876,700
- -------------------------------------------------------------------------------
Road & Rail -- 0.2%
Ryder System, Inc. 120,000 8,216,400
- -------------------------------------------------------------------------------
Total Industrials 820,324,700
===============================================================================
Information Technology -- 13.0%
Communications Equipment -- 0.1%
Juniper Networks, Inc. (a) 90,000 2,485,800
- -------------------------------------------------------------------------------
Computers & Peripherals -- 4.5%
Hewlett-Packard Co. 990,000 45,886,500
International Business Machines Corp. 610,000 73,627,000
QLogic Corp. (a) 620,000 9,895,200
Seagate Technology 2,620,000 49,439,400
Western Digital Corp. (a)(b) 1,450,000 42,035,500
--------------
220,883,600
- -------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.4%
Tech Data Corp. (a) 560,000 18,821,600
- -------------------------------------------------------------------------------
IT Services -- 2.2%
Computer Sciences Corp. (a) 1,100,000 47,949,000
Electronic Data Systems Corp. 2,070,000 38,419,200
Hewitt Associates, Inc. Class A (a) 510,000 20,910,000
--------------
107,278,200
- -------------------------------------------------------------------------------
Office Electronics -- 1.0%
Xerox Corp. 3,490,000 48,755,300
- -------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 1.4%
Integrated Device Technology, Inc. (a) 900,000 9,621,000
KLA-Tencor Corp. (b) 480,000 20,966,400
Novellus Systems, Inc. (a) 1,810,000 39,566,600
--------------
70,154,000
- -------------------------------------------------------------------------------
Software -- 3.4%
BMC Software, Inc. (a) 1,050,000 36,498,000
CA, Inc. 1,670,000 36,973,800
Compuware Corp. (a) 3,490,000 26,314,600
McAfee, Inc. (a) 1,360,000 45,220,000
Synopsys, Inc. (a) 920,000 21,261,200
--------------
166,267,600
- -------------------------------------------------------------------------------
Total Information Technology 634,646,100
===============================================================================
Materials -- 4.6%
Chemicals -- 0.7%
FMC Corp. 580,000 36,412,400
- -------------------------------------------------------------------------------
Containers & Packaging -- 1.0%
Owens-Illinois, Inc. (a) 890,000 49,083,500
- -------------------------------------------------------------------------------
Metals & Mining -- 1.8%
Carpenter Technology Corp. 480,000 24,614,400
Nucor Corp. (b) 820,000 61,910,000
--------------
86,524,400
- -------------------------------------------------------------------------------
Paper & Forest Products -- 1.1%
International Paper Co. (b) 2,060,000 53,910,200
- -------------------------------------------------------------------------------
Total Materials 225,930,500
===============================================================================
Telecommunication Services -- 1.9%
Diversified Telecommunication
Services -- 1.9%
AT&T Inc. 2,130,000 82,452,300
Qwest Communications International Inc. (b) 1,660,000 8,565,600
- -------------------------------------------------------------------------------
Total Telecommunication Services 91,017,900
===============================================================================
Total Common Stocks
(Cost -- $4,667,746,904) -- 100.0% 4,899,653,500
===============================================================================
Beneficial
Interest
Short-Term Securities (000)
===============================================================================
BlackRock Liquidity Series, LLC
Cash Sweep Series, 3.03% (c)(d) $ 8,121 8,121,435
BlackRock Liquidity Series, LLC
Money Market Series, 2.85% (c)(d)(e) 457,634 457,633,600
- -------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $465,755,035) -- 9.5% 465,755,035
===============================================================================
Total Investments
(Cost -- $5,133,501,939*) -- 109.5% 5,365,408,535
Liabilities in Excess of Other Assets -- (9.5%) (466,375,162)
--------------
Net Assets -- 100.0% $4,899,033,373
==============
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 23
Schedule of Investments (concluded) Master Large Cap Value Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ................................... $5,142,842,955
==============
Gross unrealized appreciation .................... $ 571,236,911
Gross unrealized depreciation .................... (348,671,331)
--------------
Net unrealized appreciation ...................... $ 222,565,580
==============
(a) Non-income producing security.
(b) Security, or a portion of security, is on loan.
(c) 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
Activity Interest
Affiliate (000) Income
--------------------------------------------------------------------------
BlackRock Liquidity Series, LLC
Cash Sweep Series $ 8,111 $ 107,561
BlackRock Liquidity Series, LLC
Money Market Series $ (113,459) $1,137,422
--------------------------------------------------------------------------
(d) Represents the current yield as of report date.
(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.
See Notes to Financial Statements.
24 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Statements of Assets and Liabilities Master Large Cap Series LLC
Master Large Master Large Master Large
Cap Core Cap Growth Cap Value
April 30, 2008 (Unaudited) Portfolio Portfolio Portfolio
==================================================================================================================================
Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Investments at value -- unaffiliated 1,2 ................... $4,497,032,185 $1,019,408,496 $4,899,653,500
Investments at value -- affiliated 3 ....................... 496,650,100 83,392,544 465,755,035
Cash ....................................................... -- -- 74,016
Investments sold receivable ................................ 95,320,232 61,262,685 56,456,602
Contributions receivable ................................... 5,788,883 1,489,507 11,712,406
Dividends receivable ....................................... 1,554,484 213,860 2,276,000
Securities lending income receivable ....................... 186,700 25,301 219,582
Other receivables .......................................... 290,456 10,421 181,175
Interest receivable -- affiliated .......................... 115 -- --
Prepaid expenses ........................................... 8,550 1,955 6,174
------------------------------------------------------------
Total assets ............................................... 5,096,831,705 1,165,804,769 5,436,334,490
------------------------------------------------------------
==================================================================================================================================
Liabilities
- ----------------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned at value ................... 496,650,100 83,392,350 457,633,600
Bank overdraft ............................................. 11,087,813 1,507,603 --
Investments purchased payable .............................. 80,619,075 58,305,059 63,032,797
Withdrawals payable ........................................ 13,234,536 4,173,539 14,553,377
Investment advisory fees payable ........................... 1,709,571 419,243 1,907,854
Other affiliates payable ................................... 49,693 6,085 42,514
Officer payable ............................................ 647 172 630
Other accrued expenses payable ............................. 38,338 95,993 130,345
------------------------------------------------------------
Total liabilities .......................................... 603,389,773 147,900,044 537,301,117
------------------------------------------------------------
==================================================================================================================================
Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets ................................................. $4,493,441,932 $1,017,904,725 $4,899,033,373
============================================================
==================================================================================================================================
Net Assets Consist of
- ----------------------------------------------------------------------------------------------------------------------------------
Investors' capital ......................................... $4,238,912,512 $1,000,248,623 $4,667,126,777
Net unrealized appreciation/depreciation ................... 254,529,420 17,656,102 231,906,596
------------------------------------------------------------
Net Assets ................................................. $4,493,441,932 $1,017,904,725 $4,899,033,373
============================================================
1 Cost -- unaffiliated .................................. $4,242,502,765 $1,001,752,394 $4,667,746,904
============================================================
2 Securities loaned at value ............................ $ 476,946,809 $ 79,959,881 $ 440,198,588
============================================================
3 Cost -- affiliated .................................... $ 496,650,100 $ 83,392,544 $ 465,755,035
============================================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 25
Statements of Operations Master Large Cap Series LLC
Master Large Master Large Master Large
Cap Core Cap Growth Cap Value
Six Months Ended April 30, 2008 (Unaudited) Portfolio Portfolio Portfolio
==============================================================================================================================
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------
Dividends ......................................................... $ 30,168,153 $ 5,826,725 $ 38,507,505
Securities lending ................................................ 1,585,920 315,848 1,137,422
Interest from affiliates .......................................... 6,973 23,740 107,561
-------------------------------------------------------
Total income ...................................................... 31,761,046 6,166,313 39,752,488
-------------------------------------------------------
==============================================================================================================================
Expenses
- ------------------------------------------------------------------------------------------------------------------------------
Investment advisory ............................................... 11,134,291 2,698,199 11,770,230
Accounting services ............................................... 356,414 168,395 355,243
Custodian ......................................................... 208,514 50,785 178,614
Professional ...................................................... 46,228 25,452 41,944
Officer and Directors ............................................. 34,414 14,280 36,949
Printing .......................................................... 2,875 663 2,792
Miscellaneous ..................................................... 38,269 10,503 40,891
-------------------------------------------------------
Total expenses .................................................... 11,821,005 2,968,277 12,426,663
-------------------------------------------------------
Net investment income ............................................. 19,940,041 3,198,036 27,325,825
-------------------------------------------------------
==============================================================================================================================
Realized and Unrealized Loss
- ------------------------------------------------------------------------------------------------------------------------------
Realized loss from investments .................................... (186,163,412) (24,453,582) (159,505,085)
Net change in unrealized appreciation/depreciation on investments . (994,381,427) (174,501,487) (484,286,844)
-------------------------------------------------------
Total realized and unrealized loss ................................ (1,180,544,839) (198,955,069) (643,791,929)
-------------------------------------------------------
Net Decrease in Net Assets Resulting from Operations .............. $(1,160,604,798) $ (195,757,033) $ (616,466,104)
=======================================================
See Notes to Financial Statements.
26 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Statements of Changes in Net Assets Master Large Cap Series LLC
Master Large Cap Core Portfolio
----------------------------------------
Six Months
Ended
April 30, Year Ended
2008 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ............................................................ $ 19,940,041 $ 27,760,104
Net realized gain (loss) ......................................................... (186,163,412) 527,140,752
Net change in unrealized appreciation/depreciation ............................... (994,381,427) 308,789,197
----------------------------------------
Net increase (decrease) in net assets resulting from operations .................. (1,160,604,798) 863,690,053
----------------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ...................................................... 650,312,857 1,128,729,030
Fair value of withdrawals ........................................................ (645,997,116) (219,326,884)
----------------------------------------
Net increase in net assets derived from capital transactions ..................... 4,315,741 909,402,146
----------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets .......................................... (1,156,289,057) 1,773,092,199
Beginning of period .............................................................. 5,649,730,989 3,876,638,790
----------------------------------------
End of period .................................................................... $ 4,493,441,932 $ 5,649,730,989
========================================
Statements of Changes in Net Assets Master Large Cap Series LLC
Master Large Cap Growth Portfolio
----------------------------------------
Six Months
Ended
April 30, Year Ended
2008 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ................................................................ $ 3,198,036 $ 2,458,062
Net realized gain (loss) ............................................................. (24,453,582) 69,759,009
Net change in unrealized appreciation/depreciation ................................... (174,501,487) 89,197,066
--------------------------------------
Net increase (decrease) in net assets resulting from operations ...................... (195,757,033) 161,414,137
--------------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions .......................................................... 361,089,024 596,750,862
Fair value of withdrawals ............................................................ (381,422,494) (309,546,572)
--------------------------------------
Net increase (decrease) in net assets derived from capital transactions .............. (20,333,470) 287,204,290
--------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets .............................................. (216,090,503) 448,618,427
Beginning of period .................................................................. 1,233,995,228 785,376,801
--------------------------------------
End of period ........................................................................ $ 1,017,904,725 $ 1,233,995,228
======================================
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 27
Statements of Changes in Net Assets Master Large Cap Series LLC
Master Large Cap Value Portfolio
----------------------------------------
Six Months
Ended
April 30, Year Ended
2008 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ............................................................ $ 27,325,825 $ 45,367,286
Net realized gain (loss) ......................................................... (159,505,085) 338,339,351
Net change in unrealized appreciation/depreciation ............................... (484,286,844) 147,211,110
----------------------------------------
Net increase (decrease) in net assets resulting from operations .................. (616,466,104) 530,917,747
----------------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ...................................................... 1,382,831,256 2,162,748,781
Fair value of withdrawals ........................................................ (1,259,486,330) (1,229,437,681)
----------------------------------------
Net increase in net assets derived from capital transactions ..................... 123,344,926 933,311,100
----------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets .......................................... (493,121,178) 1,464,228,847
Beginning of period .............................................................. 5,392,154,551 3,927,925,704
----------------------------------------
End of period .................................................................... $ 4,899,033,373 $ 5,392,154,551
========================================
See Notes to Financial Statements.
28 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Financial Highlights Master Large Cap Series LLC
Master Large Cap Core Portfolio
------------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2008 --------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
====================================================================================================================
Total Investment Return
- --------------------------------------------------------------------------------------------------------------------
Total investment return ............ (15.66%) 1 13.94% 17.32% 18.35% 9.61% 25.11%
==============================================================================
====================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------
Total expenses ..................... 0.49% 2 0.49% 0.49% 0.51% 0.52% 0.54%
==============================================================================
Net investment income .............. 0.82% 2 0.63% 0.58% 0.72% 0.57% 0.48%
==============================================================================
====================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) .... $4,493,442 $5,649,731 $3,876,639 $2,666,699 $1,831,300 $1,454,109
==============================================================================
Portfolio turnover ................. 52% 96% 88% 94% 136% 139%
==============================================================================
1 Aggregate total investment return.
2 Annualized.
Financial Highlights Master Large Cap Series LLC
Master Large Cap Growth Portfolio
------------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2008 --------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
====================================================================================================================
Total Investment Return
- --------------------------------------------------------------------------------------------------------------------
Total investment return ............. (15.76%) 1 17.47% 14.05% 12.47% 5.42% 25.01%
==============================================================================
====================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------
Total expenses ...................... 0.55% 2 0.56% 0.56% 0.57% 0.59% 0.61%
==============================================================================
Net investment income ............... 0.59% 2 0.25% 0.26% 0.33% 0.09% 0.04%
==============================================================================
====================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ..... $1,017,905 $1,233,995 $ 785,377 $ 489,398 $ 344,400 $ 250,166
==============================================================================
Portfolio turnover .................. 73% 87% 117% 132% 165% 178%
==============================================================================
1 Aggregate total investment return.
2 Annualized.
See Notes to Financial Statements.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 29
Financial Highlights (concluded) Master Large Cap Series LLC
Master Large Cap Value Portfolio
------------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2008 --------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
====================================================================================================================
Total Investment Return
- --------------------------------------------------------------------------------------------------------------------
Total investment return ....... (11.39%) 1 12.72% 18.48% 21.93% 14.57% 27.05%
==============================================================================
====================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------
Total expenses ................ 0.51% 2 0.51% 0.53% 0.55% 0.56% 0.57%
==============================================================================
Net investment income ......... 1.11% 2 0.95% 0.73% 0.80% 0.93% 0.97%
==============================================================================
====================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $4,899,033 $5,392,155 $3,927,926 $1,535,988 $ 810,489 $ 515,257
==============================================================================
Portfolio turnover ............ 45% 72% 71% 95% 128% 157%
==============================================================================
1 Aggregate total investment return.
2 Annualized.
See Notes to Financial Statements.
30 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Notes to Financial Statements (Unaudited) 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, a "Portfolio")
constitute Master Large Cap Series LLC (the "Master LLC"). The Master LLC is
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), and is organized as a Delaware limited liability company. The Limited
Liability Company Agreement permits the Directors to issue non-transferable
interests in the Master LLC, subject to certain limitations. The Portfolios'
financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America, 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:
Valuation of Investments: Equity investments traded on a recognized securities
exchange or the NASDAQ Global Market System are valued at the last reported sale
price that day or the NASDAQ official closing price, if applicable. Equity
investments traded on a recognized exchange for which there were no sales on
that day are valued at the last available bid price. Investments in open-end
investment companies are valued at net asset value each business day.
In the event that application of these methods of valuation results in a price
for an investment which is deemed not to be representative of the market value
of such investment, the investment will be valued by a method approved by the
Board of Directors (the "Board") as reflecting fair value ("Fair Value Assets").
When determining the price for Fair Value Assets, the investment advisor and/or
sub-advisor seeks to determine the price that a Portfolio might reasonably
expect to receive from the current sale of that asset in an arm's-length
transaction. Fair value determinations shall be based upon all available factors
that the investment advisor and/or sub-advisor deems relevant. The pricing of
all Fair Value Assets is subsequently reported to the Board or a committee
thereof.
Investment Transactions and Investment Income: Investment transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Dividends from foreign securities where the ex-dividend date may have passed are
subsequently recorded when a Portfolio has determined the ex-dividend date.
Interest income is recognized on the accrual basis.
Securities Lending: The Portfolios 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. A Portfolio typically receives the income on the loaned securities
but does not receive the income on the collateral. Where a 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. A Portfolio may
receive a flat fee for its loans. Loans of securities are terminable at any time
and the borrower, after notice, is required to return borrowed securities within
the standard time period for settlement of securities transactions. A Portfolio
may pay reasonable 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, a Portfolio could experience delays and costs in gaining access to the
collateral. A 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.
Income Taxes: It is each Portfolio's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax laws, a withholding tax may be imposed on interest, dividends and
capital gains at various rates.
Effective April 30, 2008, each Portfolio implemented Financial Accounting
Standards Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in
Income Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48
prescribes the minimum recognition threshold a tax position must meet in
connection with accounting for uncertainties in income tax positions taken or
expected to be taken by an entity, including investment companies, before being
measured and recognized in the financial statements. The investment advisor has
evaluated the application of FIN 48 to the Portfolios, and has determined that
the adoption of FIN 48 does not have a material impact on any Portfolios'
financial statements. The Portfolios file U.S. federal and various state and
local tax returns. No income tax returns are currently under examination. The
statutes of limitations on the Portfolios' U.S. federal tax returns remains open
for the years ended October 31, 2004 through October 31, 2006. The statutes of
limitations on the Portfolios' state and local tax returns may remain open for
an additional year depending upon the jurisdiction.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 31
Notes to Financial Statements (continued) Master Large Cap Series LLC
Recent Accounting Pronouncements: 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. The impact on the Portfolios'
financial statement disclosures, if any, is currently being assessed.
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 at 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. The impact on the Portfolios' financial statement
disclosures, if any, is currently being assessed.
In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures
about Derivative Instruments and Hedging Activities -- an amendment of FASB
Statement No. 133" ("FAS 161"), was issued and is effective for fiscal years
beginning after November 15, 2008. FAS 161 is intended to improve financial
reporting for derivative instruments by requiring enhanced disclosure that
enables investors to understand how and why an entity uses derivatives, how
derivatives are accounted for, and how derivative instruments affect an entity's
results of operations and financial position. The investment advisor is
currently evaluating the implications of FAS 161 and the impact on the
Portfolios' financial statement disclosures, if any, is currently being
assessed.
Bank Overdraft: Master Large Cap Core Portfolio and Master Large Cap Growth
Portfolio recorded a bank overdraft, which resulted from management estimates of
available cash.
Other: Expenses directly related to one of the Portfolios are charged to that
Portfolio. Other operating expenses shared by several Portfolios are pro-rated
among those Portfolios on the basis of relative net assets or other appropriate
methods.
2. Investment Advisory Agreement and Other Transactions with Affiliates:
The Master LLC, on behalf of each Portfolio, has entered into an Investment
Advisory Agreement with BlackRock Advisors, LLC (the "Advisor"), an indirect,
wholly owned subsidiary of BlackRock, Inc., to provide investment advisory and
administration services. Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC
Financial Services Group, Inc. are principal owners of BlackRock, Inc.
The Advisor is responsible for the management of each Portfolio's investments
and provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Portfolio. Master Large Cap Core
Portfolio pays a monthly fee at an annual rate of 0.50% of the average daily net
assets not exceeding $1 billion, 0.45% of average daily net assets in excess of
$1 billion but not exceeding $5 billion and 0.40% of average daily net assets in
excess of $5 billion; Master Large Cap Growth Portfolio pays a monthly fee at an
annual rate of 0.50% of the average daily net assets not exceeding $5 billion
and 0.45% 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 0.50% of the average
daily net assets not exceeding $3 billion and 0.45% of average daily net assets
in excess of $3 billion. For the six months ended April 30, 2008, each Portfolio
reimbursed the Advisor for certain accounting services, which are included in
accounting services expenses in the Statements of Operations. The reimbursements
were as follows:
- --------------------------------------------------------------------------------
Accounting
Services
- --------------------------------------------------------------------------------
Master Large Cap Core Portfolio .............................. $39,010
Master Large Cap Growth Portfolio ............................ $ 9,096
Master Large Cap Value Portfolio ............................. $40,149
- --------------------------------------------------------------------------------
In addition, the Advisor has entered into a separate sub-advisory agreement,
with respect to each Portfolio, with BlackRock Investment Management, LLC
("BIM"), an affiliate of the Advisor, under which the Advisor pays BIM, for
services it provides, a monthly fee that is a percentage of the investment
advisory fee paid by a Portfolio to the Advisor.
The Master LLC has received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to Merrill Lynch, Pierce,
Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, or its
affiliates. As of April 30, 2008, Master Large Cap Core Portfolio, Master Large
Cap Growth Portfolio and Master Large Cap Value Portfolio lent securities with
values of $237,892,898, $24,365,614 and $98,941,104, respectively. Pursuant to
that order each Portfolio has
32 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Notes to Financial Statements (concluded) Master Large Cap Series LLC
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 a Portfolio,
invest cash collateral received by the Portfolio for such loans, among other
things, in a private investment company managed by the Advisor or in registered
money market funds advised by the Advisor or its affiliates. For the six months
ended April 30, 2008, BIM received $392,006, $78,061 and $282,595 in securities
lending agent fees for Master Large Cap Core Portfolio, Master Large Cap Growth
Portfolio and Master Large Cap Value Portfolio, respectively.
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 six
months ended April 30, 2008 were as follows:
- --------------------------------------------------------------------------------
Purchases Sales
- --------------------------------------------------------------------------------
Master Large Cap Core Portfolio .......... $2,560,109,067 $2,824,750,819
Master Large Cap Growth Portfolio ........ $ 752,717,410 $ 770,612,277
Master Large Cap Value Portfolio ......... $2,395,446,162 $2,254,389,962
- --------------------------------------------------------------------------------
4. Short-Term Borrowings:
The Master LLC, along with certain other funds managed by the Advisor and its
affiliates, is a party to a $500,000,000 credit agreement with a group of
lenders. A Portfolio may borrow under the credit agreement to fund shareholder
redemptions and for other lawful purposes other than for leverage. A Portfolio
may borrow up to the maximum amount allowable under the Portfolio's current
prospectus and statement of additional information, subject to various other
legal, regulatory or contractual limits. On November 21, 2007, the credit
agreement was renewed for one year under substantially the same terms. Each
Portfolio pays a commitment fee of 0.06% per annum based on the Portfolio's pro
rata share of the unused portion of the credit agreement, which is included in
miscellaneous expenses in the Statements of Operations. Amounts borrowed under
the credit agreement bear interest at a rate equal to, at each fund's election,
the federal funds rate plus 0.35% or a base rate as defined in the credit
agreement. The Portfolios did not borrow under the credit agreement during the
six months ended April 30, 2008.
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. APRIL 30, 2008 33
Officers and Directors
David O. Beim, Director
Richard S. Davis, Director
Ronald W. Forbes, Director
Henry Gabbay, Director
Dr. Matina Horner, Director
Rodney D. Johnson, Director
Herbert I. London, Director
Cynthia A. Montgomery, Director
Joseph P. Platt, Jr., Director
Robert C. Robb, Jr., Director
Toby Rosenblatt, Director
Kenneth L. Urish, Director
Frederick W. Winter, Director
Donald C. Burke, Fund President and Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance Officer of the Funds
Howard Surloff, Secretary
Custodian
Brown Brothers Harriman & Co.
Boston, MA 02109
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
34 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Additional 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 websites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or 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. APRIL 30, 2008 35
Additional Information (continued)
Availability of Additional Information
Electronic copies of most financial reports and prospectuses are available on
the Funds' website 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 Advisors, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment
advisors, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock website at http://www.blackrock.com/edelivery
2) Click on the applicable link and follow the steps to sign up
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
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free (800) 441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's (the
"SEC") website at http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Funds vote proxies relating to securities held in the
Funds' portfolios during the most recent 12-month period ended June 30 is
available upon request and without charge (1) at www.blackrock.com or by calling
(800) 441-7762 and (2) on the SEC's website at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Funds file their complete schedule of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms
N-Q are available on the SEC's website at http://www.sec.gov and may also be
reviewed and copied at the SEC's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling (800) SEC-0330. The Funds' Forms N-Q may also be obtained upon request
and without charge by calling (800) 441-7762.
36 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
Additional Information (concluded)
Shareholder Privileges
Account Information
Call us at (800) 441-7762 from 8:00 AM to 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.
BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008 37
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 Asset Allocation Portfolio+
BlackRock Aurora Portfolio
BlackRock Balanced Capital Fund+
BlackRock Basic Value Fund
BlackRock Capital Appreciation Portfolio
BlackRock Equity Dividend Fund
BlackRock EuroFund
BlackRock Focus Growth Fund
BlackRock Focus Value Fund
BlackRock Fundamental Growth Fund
BlackRock Global Allocation Fund+
BlackRock Global Dynamic Equity Fund
BlackRock Global Emerging Markets 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 Health Sciences Opportunities Portfolio*
BlackRock Healthcare Fund
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 Emerging Market Debt Portfolio
BlackRock Enhanced Income Portfolio
BlackRock GNMA Portfolio
BlackRock Government Income Portfolio
BlackRock High Income Fund
BlackRock High Yield Bond Portfolio
BlackRock Income Portfolio
BlackRock Income Builder Portfolio
BlackRock Inflation Protected Bond Portfolio
BlackRock Intermediate Bond Portfolio II
BlackRock Intermediate Government Bond Portfolio
BlackRock International Bond Portfolio
BlackRock Long Duration Bond Portfolio
BlackRock Low Duration Bond Portfolio
BlackRock Managed Income Portfolio
BlackRock Short-Term Bond Fund
BlackRock Strategic Income Portfolio
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.
38 BLACKROCK LARGE CAP SERIES FUNDS, INC. APRIL 30, 2008
These 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.
100 Bellevue Parkway
Wilmington, DE 19809
BLACKROCK
#LCSRP-4/08
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this
semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Investments
(a) The registrant's Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual
period covered since the previous Form N-CSR filing.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the Board 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 Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Large Cap Series Funds, Inc. and Master Large Cap Series LLC
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock Large Cap Series Funds, Inc. and Master Large Cap Series LLC
Date: June 23, 2008
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: June 23, 2008
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: June 23, 2008