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 811-09375
811-09633
Name of Fund: BlackRock Global Financial Services Fund, Inc.
Global Financial Services Master LLC
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock Global Financial Services Fund, Inc. and Global
Financial Services Master 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: 09/30/2008
Date of reporting period: 10/01/2007 - 03/31/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES
BLACKROCK SOLUTIONS
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BlackRock Global Financial [BLACKROCK LOGO]
Services Fund, Inc.
SEMI-ANNUAL REPORT
MARCH 31, 2008 | (UNAUDITED)
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NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
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Table of Contents
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Page
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A Letter to Shareholders ............................................... 3
Semi-Annual Report:
Fund Summary ........................................................... 4
About Fund Performance ................................................. 6
Disclosure of Expenses ................................................. 6
Fund Financial Statements:
Statement of Assets and Liabilities ................................. 7
Statement of Operations ............................................. 8
Statements of Changes in Net Assets ................................. 9
Fund Financial Highlights .............................................. 10
Fund Notes to Financial Statements ..................................... 15
Master Portfolio Information ........................................... 18
Master Financial Statements:
Schedule of Investments ............................................. 19
Statement of Assets and Liabilities ................................. 22
Statement of Operations ............................................. 23
Statements of Changes in Net Assets ................................. 24
Master Financial Highlights ............................................ 24
Master Notes to Financial Statements ................................... 25
Officers and Directors ................................................. 28
Additional Information ................................................. 29
Mutual Fund Family ..................................................... 31
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2 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
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A Letter to Shareholders
Dear Shareholder
Financial markets endured severe bouts of volatility during the reporting
period, particularly as the calendar turned to 2008. It was then that
fears of an economic recession swelled and credit market strains
intensified, producing calamity in the financial system and, ultimately,
the demise of major Wall Street firm Bear Stearns.
The Federal Reserve Board (the "Fed"), after cutting the target federal
funds rate 100 basis points (1%) between September 2007 and year-end,
stepped up its efforts to support the ailing financial sector in the first
three months of 2008. The central bank cut interest rates 125 basis points
in January alone, and followed with another 75-basis-point cut on March
18, bringing the target rate to 2.25%. In an unprecedented move, the Fed
also extended its financing operations directly to broker/dealers and
assisted JPMorgan in its buyout of ill-fated Bear Stearns.
Against this backdrop, investor anxiety has been acute and equity markets
have struggled. The S&P 500 Index of U.S. stocks was down in March,
marking the fifth consecutive month of negative returns. International
markets outperformed the U.S. for much of 2007, but that trend changed in
more recent months as investors grew increasingly reluctant to take on the
risks of foreign investing.
In fixed income markets, an ongoing investor flight to quality continued
to drive Treasury yields lower and their prices higher. 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 3.45% by March 31.
Investors largely shunned bonds associated with the housing and credit
markets, and the riskier high yield sector landed in negative territory
year-to-date. Meanwhile, the municipal bond market has struggled with
concerns around the creditworthiness of monoline bond insurers and the
failure of auctions for auction rate securities, driving yields higher and
prices lower across the curve. At period-end, municipal bonds were trading
at higher yields than their Treasury counterparts, a very unusual
occurrence by historical standards.
Overall, the major benchmark indexes posted mixed results for the current
reporting period, generally reflecting heightened investor risk aversion:
Total Returns as of March 31, 2008 6-month 12-month
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U.S. equities (S&P 500 Index) -12.46% -5.08%
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Small cap U.S. equities (Russell 2000 Index) -14.02 -13.00
--------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) -10.50 -2.70
--------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Index) + 5.23 +7.67
--------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 0.75 +1.90
--------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) - 4.01 -3.47
--------------------------------------------------------------------------------------------------------
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
THIS PAGE NOT PART OF YOUR FUND REPORT
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3
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Fund Summary BlackRock Global Financial Services Fund, Inc.
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Portfolio Management Commentary
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How did the Fund perform?
o The Fund outperformed its benchmark, the MSCI World Financials Index, for
the six-month period.
What factors influenced performance?
o The Fund's cash position, which averaged 4% throughout the period, was the
primary contributor to performance relative to the benchmark. The cash
allocation proved advantageous during a time when world equity markets
were highly volatile and posted negative returns. The financial sector was
particularly hard hit amid continued fallout from the U.S. credit crisis.
o Stock selection in commercial banks and diversified financial services
also aided relative results. Individual contributors included Standard
Chartered Plc, Visa, Inc., JPMorgan Chase & Co., Infrastructure
Development Finance Co. Ltd. and Banco Santander SA.
o From a country standpoint, stock selection in the United Kingdom and the
United States, in addition to an overweight in Thailand and our avoidance
of Australia, contributed positively.
o Conversely, stock selection in the real estate management & development
and insurance subsectors, along with an underweight in real estate
investment trusts (REITs), hindered relative performance. Individual
detractors included Fannie Mae, American International Group, Inc.,
Sumitomo Real Estate Sales, Guangzhou R&F Properties Co. Ltd. and options
on The Bear Stearns Cos., Inc.
o An overweight in China, as well as stock selection in Italy, Hong Kong and
Japan, also hampered Fund results.
Describe recent portfolio activity.
o We increased the Fund's exposure to Europe and Japan, while reducing its
weighting in North America.
o We added positions in HDFC Bank Ltd., Millea Holdings, Inc., Ping An
Insurance Group Co. of China Ltd., ProLogis, Samsung Fire & Marine
Insurance Co. Ltd., Siam Commercial Bank PCL and Visa, and increased
holdings in Banco Santander, BNP Paribas SA, JPMorgan, The Travelers Cos.
Inc., KBC Bancassurance Holding and Standard Chartered Plc.
o Meanwhile, our options on Bear Stearns expired, and we exited positions in
Erste Bank, Fortis, UBS AG, Barclays Plc, Hopson Development Holdings Ltd.
and China Citic Bank. We also reduced exposure to Citigroup, Inc.,
Wachovia Corp., Korean Reinsurance Co. and Meritz Fire & Marine Insurance
Co. Ltd.
Describe Fund positioning at period-end.
o Compared to the benchmark, the Fund ended the period overweight in the
United States, China/Hong Kong, South Korea, Indonesia and India, and
underweight in Canada, Australia, the United Kingdom, Japan and
Switzerland.
o From a subsector standpoint, the Fund ended the period overweight in
insurance and IT services, and underweight in REITs, commercial banks and
real estate management & development.
o The U.S.economy is slowing and the possibility of a recession has been
increasing. This may be the harbinger of below-trend economic growth. We
continue to be vigilant in monitoring developments in the credit markets,
and believe we have positioned the Fund appropriately versus these risks.
The Fund continues to have a heavy concentration in emerging markets
stocks, especially in South Korea. We continue to believe the larger-cap
financial names are undervalued and more attractive than the small- to
mid-cap names. In general, we continue our efforts to diversify the
portfolio geographically.
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Expense Example
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Actual Hypothetical**
----------------------------------------------------- -----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
October 1, 2007 March 31, 2008 During the Period* October 1, 2007 March 31, 2008 During the Period*
- --------------------------------------------------------------------------------------------------------------------------------
Institutional .. $1,000 $822.30 $ 6.17 $1,000 $1,018.53 $ 6.84
Investor A ..... $1,000 $821.60 $ 7.09 $1,000 $1,017.52 $ 7.85
Investor B ..... $1,000 $817.60 $11.12 $1,000 $1,013.07 $12.31
Investor C ..... $1,000 $817.80 $10.70 $1,000 $1,013.52 $11.86
Class R ........ $1,000 $819.50 $ 9.33 $1,000 $1,015.04 $10.34
- --------------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.34% for Institutional, 1.54% for Investor A, 2.42%
for Investor B, 2.33% for Investor C and 2.03% for Class R), multiplied by
the average account value over the period, multiplied by 185/366 (to
reflect the one-half year period shown). Because the Fund is a feeder
fund, the expense table example reflects the expenses of both the feeder
fund and the master portfolio in which it invests.
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 366.
See "Disclosure of Expenses" on page 6 for further information on how
expenses were calculated.
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4 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
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Total Return Based on a $10,000 Investment
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A line graph depicting the growth of an investment in the Fund's Institutional
and Investor A Shares compared to growth of an investment in the MSCI World
Index and the MSCI World Financials Index. Values are from November 26, 1999 to
March 2008:
MSCI World
Institutional Investor A MSCI World Financials
Shares*+ Shares*+ Index++ Index+++
11/26/99** $10,000 $ 9,475 $10,000 $10,000
3/00 $10,250 $ 9,702 $10,705 $10,002
3/01 $11,498 $10,859 $ 8,018 $ 9,794
3/02 $12,678 $11,948 $ 7,678 $ 9,371
3/03 $ 9,787 $ 9,202 $ 5,820 $ 7,175
3/04 $17,882 $16,764 $ 8,373 $11,221
3/05 $20,250 $18,930 $ 9,257 $12,137
3/06 $27,865 $25,983 $10,926 $15,126
3/07 $27,933 $25,982 $12,612 $17,404
3/08 $23,502 $21,820 $12,202 $14,057
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
** Commencement of operations.
+ The Fund invests primarily in a portfolio of common stocks of financial
services companies that Fund management believes have the potential to
increase in value.
++ This unmanaged market capitalization-weighted Index is comprised of a
representative sampling of large-, medium- and small-capitalization
companies in 23 countries, including the United States.
+++ This Index is comprised of the constituents of the MSCI World Index that
are classified into the financial sector. This sector contains companies
involved in activities such as banking, mortgage finance, consumer
finance, specialized finance, investment banking and brokerage, asset
management and custody, corporate lending, insurance, financial investment
and real estate including REITs. The starting date for the Index in the
graph is 11/30/99.
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Performance Summary for the Period Ended March 31, 2008
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Average Annual Total Returns*
---------------------------------------------------------------
1 Year 5 Years Since Inception**
------------------- ------------------- -------------------
6-Month w/o sales w/sales w/o sales w/sales w/o sales w/sales
Total Returns charge charge charge charge charge charge
- ----------------------------------------------------------------------------------------------------------------
Institutional ................ -17.77% -15.87% -- +19.15% -- +10.78% --
Investor A ................... -17.84 -16.02 -20.43% +18.85 +17.57% +10.51 +9.80%
Investor B ................... -18.24 -16.76 -19.75 +17.94 +17.73 + 9.71 +9.71
Investor C ................... -18.22 -16.73 -17.38 +17.93 +17.93 + 9.65 +9.65
Class R ...................... -18.05 -16.41 -- +18.55 -- +10.28 --
MSCI World Index ............. -11.26 - 3.25 -- +15.96 -- + 2.41 --
MSCI World Financials Index .. -19.42 -19.23 -- +14.40 -- + 4.17+ --
- ----------------------------------------------------------------------------------------------------------------
* Assuming maximum sales charges. See "About Fund Performance" on page 6 for
a detailed description of share classes, including any related sales
charges and fees.
** The Fund commenced operations on 11/26/99.
+ Since inception total return is from 11/30/99.
Past performance is not indicative of future results.
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BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 5
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About Fund Performance BlackRock Global Financial Services Fund, Inc.
o Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available only
to eligible investors.
o Investor A Shares incur a maximum initial sales charge (front-end load) of
5.25% and a service fee of 0.25% per year (but no distribution fee).
o Investor B Shares are subject to a maximum contingent deferred sales
charge of 4.50% declining to 0% after six years. In addition, Investor B
Shares are subject to a distribution fee of 0.75% per year and a service
fee of 0.25% per year. These shares automatically convert to Investor A
Shares after approximately eight years. (There is no initial sales charge
for automatic share conversions.) All returns for periods greater than
eight years reflect this conversion.
o Investor C Shares are subject to a distribution fee of 0.75% per year and
a service fee of 0.25% per year. In addition, Investor C Shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase.
o Class R Shares do not incur a maximum initial sales charge (front-end
load) or deferred sales charge. These shares are subject to a distribution
fee of 0.25% per year and a service fee of 0.25% per year. Class R Shares
are available only to certain retirement plans. Prior to inception, Class
R Share performance results are those of Institutional Shares (which have
no distribution or service fees) restated to reflect Class R Share fees.
Performance information reflects past performance and does not guarantee
future results. Current performance may be lower or higher than the
performance data quoted. Refer to www.blackrock.com/funds to obtain
performance data current to the most recent month-end. Performance results
do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares. The Fund may charge a 2%
redemption fee for sales or exchanges of shares within 30 days of purchase
or exchange. Performance data does not reflect this potential fee. Figures
shown in the performance tables on page 5 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 this Fund may incur the following charges: (a) expenses
related to transactions, including sales charges, redemption fees and
exchange fees; and (b) operating expenses, including advisory fees,
distribution fees including 12b-1 fees, and other Fund expenses. The
expense example on page 4 (which is based on a hypothetical investment of
$1,000 invested on October 1, 2007 and held through March 31, 2008) is
intended to assist shareholders both in calculating expenses based on an
investment in the Fund and in comparing these expenses with similar costs
of investing in other mutual funds.
The table provides information about actual account values and actual
expenses. In order to estimate the expenses a shareholder paid during the
period covered by this report, shareholders can divide their account value
by $1,000 and then multiply the result by the number corresponding to
their share class under the heading entitled "Expenses Paid During the
Period."
The table also provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in this Fund
and other funds, compare the 5% hypothetical example with the 5%
hypothetical examples that appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders'
ongoing costs only and do not reflect any transactional expenses, such as
sales charges, redemption fees or exchange fees. Therefore, the
hypothetical information is useful in comparing ongoing expenses only, and
will not help shareholders determine the relative total expenses of owning
different funds. If these transactional expenses were included,
shareholder expenses would have been higher.
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6 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
BlackRock Global Financial Services Fund, Inc.
March 31, 2008 (Unaudited)
- ---------------------------------------------------------------------------------------------------------------------------
Assets
- ---------------------------------------------------------------------------------------------------------------------------
Investments at value -- Global Financial Services Portfolio (the "Portfolio"), (cost -- $128,307,719) ..... $ 125,759,528
Prepaid expenses and other assets ......................................................................... 58,518
-------------
Total assets .............................................................................................. 125,818,046
-------------
===========================================================================================================================
Liabilities
- ---------------------------------------------------------------------------------------------------------------------------
Distribution fees payable ................................................................................. 53,353
Administration fees payable ............................................................................... 35,314
Other affiliates payable .................................................................................. 28,627
Other accrued expenses payable ............................................................................ 12,069
-------------
Total liabilities ......................................................................................... 129,363
-------------
===========================================================================================================================
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets ................................................................................................ $ 125,688,683
=============
===========================================================================================================================
Net Assets Consist of
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized ...................... $ 154,377
Investor A Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized ......................... 479,100
Investor B Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized ......................... 87,260
Investor C Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized ......................... 390,128
Class R Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized ............................ 71,232
Paid-in capital in excess of par .......................................................................... 130,961,592
Undistributed net investment income ....................................................................... 408,098
Undistributed net realized capital loss allocated from the Portfolio ...................................... (4,314,913)
Net unrealized depreciation allocated from the Portfolio .................................................. (2,548,191)
-------------
Net Assets ................................................................................................ $ 125,688,683
=============
===========================================================================================================================
Net Asset Value
- ---------------------------------------------------------------------------------------------------------------------------
Institutional -- Based on net assets of $16,750,747 and 1,543,768 shares outstanding ...................... $ 10.85
=============
Investor A -- Based on net assets of $51,482,896 and 4,791,002 shares outstanding ......................... $ 10.75
=============
Investor B -- Based on net assets of $9,299,959 and 872,601 shares outstanding ............................ $ 10.66
=============
Investor C -- Based on net assets of $40,692,033 and 3,901,278 shares outstanding ......................... $ 10.43
=============
Class R -- Based on net assets of $7,463,048 and 712,315 shares outstanding ............................... $ 10.48
=============
See Notes to Financial Statements.
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BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 7
- --------------------------------------------------------------------------------
Statement of Operations BlackRock Global Financial Services Fund, Inc.
Six Months Ended March 31, 2008 (Unaudited)
- -----------------------------------------------------------------------------------------
Investment Income
- -----------------------------------------------------------------------------------------
Investment income allocated from the Portfolio:
Dividends ........................................................... $ 1,229,271
Interest from affiliates ............................................ 165,282
Securities lending .................................................. 3,561
Expenses ............................................................ (347,613)
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Total income ........................................................... 1,050,501
-------------
=========================================================================================
Expenses
- -----------------------------------------------------------------------------------------
Administration ......................................................... 183,817
Service -- Investor A .................................................. 48,613
Service and distribution -- Investor B ................................. 68,698
Service and distribution -- Investor C ................................. 134,369
Service and distribution -- Class R .................................... 20,501
Transfer agent -- Institutional ........................................ 12,256
Transfer agent -- Investor A ........................................... 23,129
Transfer agent -- Investor B ........................................... 15,160
Transfer agent -- Investor C ........................................... 24,506
Transfer agent -- Class R .............................................. 14,121
Registration ........................................................... 33,191
Printing ............................................................... 32,819
Professional fees ...................................................... 15,754
Miscellaneous .......................................................... 9,226
-------------
Total expenses ......................................................... 636,160
-------------
Net investment income .................................................. 414,341
-------------
=========================================================================================
Realized and Unrealized Gain (Loss) Allocated from the Portfolio
- -----------------------------------------------------------------------------------------
Realized loss from:
Investments ......................................................... (3,945,256)
Foreign currency .................................................... (14,273)
-------------
(3,959,529)
-------------
Net change in unrealized appreciation/depreciation on:
Investments ......................................................... (16,412,241)
Foreign currency .................................................... 2,969
-------------
(16,409,272)
-------------
Total realized and unrealized loss ..................................... (20,368,801)
-------------
Net Decrease in Net Assets Resulting from Operations ................... $ (19,954,460)
=============
See Notes to Financial Statements.
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8 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
BlackRock Global Financial Services Fund, Inc.
Six Months
Ended
March 31, Year Ended
2008 September 30,
Increase (Decrease) in Net Assets: (Unaudited) 2007
- ------------------------------------------------------------------------------------------------------------------------
Operations
- ------------------------------------------------------------------------------------------------------------------------
Net investment income ................................................................. $ 414,341 $ 538,684
Net realized gain (loss) .............................................................. (3,959,529) 22,294,403
Net change in unrealized appreciation/depreciation .................................... (16,409,272) (12,906,995)
------------------------------
Net increase (decrease) in net assets resulting from operations ....................... (19,954,460) 9,926,092
------------------------------
========================================================================================================================
Dividends and Distributions to Shareholders from
- ------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional ...................................................................... (113,030) (457,900)
Investor A ......................................................................... (275,651) (573,005)
Investor B ......................................................................... -- (464,138)
Investor C ......................................................................... (11,974) (403,911)
Class R ............................................................................ (30,173) (151,046)
Net realized gain:
Institutional ...................................................................... (3,048,636) (494,767)
Investor A ......................................................................... (8,162,775) (682,147)
Investor B ......................................................................... (2,299,693) (836,184)
Investor C ......................................................................... (4,787,102) (683,251)
Class R ............................................................................ (1,753,401) (189,041)
------------------------------
Decrease in net assets resulting from dividends and distributions to shareholders ..... (20,482,435) (4,935,390)
------------------------------
========================================================================================================================
Capital Share Transactions
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from capital share transactions ......... 70,962,512 (6,392,855)
------------------------------
========================================================================================================================
Redemption Fees
- ------------------------------------------------------------------------------------------------------------------------
Redemption fees ....................................................................... 14,512 3,592
------------------------------
========================================================================================================================
Net Assets
- ------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............................................... 30,540,129 (1,398,561)
Beginning of period ................................................................... 95,148,554 96,547,115
------------------------------
End of period ......................................................................... $ 125,688,683 $ 95,148,554
==============================
End of period undistributed net investment income ..................................... $ 408,098 $ 424,585
==============================
See Notes to Financial Statements.
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BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 9
- --------------------------------------------------------------------------------
Financial Highlights BlackRock Global Financial Services Fund, Inc.
Institutional
-------------------------------------------------------------------------
Six Months
Ended
March 31, Year Ended September 30,
2008 --------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................. $ 16.75 $ 15.93 $ 15.53 $ 14.12 $ 12.76 $ 9.45
--------------------------------------------------------------------------
Net investment income(1) ............................. 0.08 0.19 0.50 0.44 0.20 0.09
Net realized and unrealized gain (loss) .............. (2.73)(2) 1.59(2) 1.89(2) 3.17(2) 2.78(2) 3.53
--------------------------------------------------------------------------
Net increase (decrease) from investment operations ... (2.65) 1.78 2.39 3.61 2.98 3.62
--------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............................. (0.12) (0.46) (0.38) (0.18) -- --
Net realized gain ................................. (3.13) (0.50) (1.61) (2.02) (1.62) (0.31)
--------------------------------------------------------------------------
Total dividends and distributions .................... (3.25) (0.96) (1.99) (2.20) (1.62) (0.31)
--------------------------------------------------------------------------
Net asset value, end of period ....................... $ 10.85 $ 16.75 $ 15.93 $ 15.53 $ 14.12 $ 12.76
==========================================================================
==================================================================================================================================
Total Investment Return(3)
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................. (17.77%)(4) 11.20% 15.48% 27.37% 25.09% 39.10%
==========================================================================
==================================================================================================================================
Ratios to Average Net Assets(5)
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses ....................................... 1.34%(6) 1.42% 1.27% 1.32% 1.53% 1.60%
==========================================================================
Net investment income ................................ 1.23%(6) 1.18% 3.05% 2.93% 1.46% 0.81%
==========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................... $ 16,751 $ 16,249 $ 17,843 $ 49,612 $ 11,034 $ 11,325
==========================================================================
Portfolio turnover of the Portfolio .................. 11% 55% 79% 80% 115% 206%
==========================================================================
(1) Based on average shares outstanding.
(2) Includes redemption fees, which are less than $0.01 per share.
(3) Total investment returns exclude the effects of any sales charges.
(4) Aggregate total investment return.
(5) Includes the Fund's share of the Portfolio's allocated expenses and/or net
investment income.
(6) Annualized.
See Notes to Financial Statements.
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10 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Financial Highlights (continued) BlackRock Global Financial Services Fund, Inc.
Investor A
-------------------------------------------------------------------------
Six Months
Ended
March 31, Year Ended September 30,
2008 --------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................. $ 16.63 $ 15.82 $ 15.45 $ 14.06 $ 12.71 $ 9.43
--------------------------------------------------------------------------
Net investment income(1) ............................. 0.07 0.15 0.44 0.27 0.17 0.06
Net realized and unrealized gain (loss) .............. (2.71)(2) 1.58(2) 1.90(2) 3.29(2) 2.76(2) 3.53
--------------------------------------------------------------------------
Net increase (decrease) from investment operations ... (2.64) 1.73 2.34 3.56 2.93 3.59
--------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............................. (0.11) (0.42) (0.36) (0.15) -- --
Net realized gain ................................. (3.13) (0.50) (1.61) (2.02) (1.58) (0.31)
--------------------------------------------------------------------------
Total dividends and distributions .................... (3.24) (0.92) (1.97) (2.17) (1.58) (0.31)
--------------------------------------------------------------------------
Net asset value, end of period ....................... $ 10.75 $ 16.63 $ 15.82 $ 15.45 $ 14.06 $ 12.71
==========================================================================
==================================================================================================================================
Total Investment Return(3)
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................. (17.84%)(4) 10.93% 15.17% 27.08% 24.75% 38.83%
==========================================================================
==================================================================================================================================
Ratios to Average Net Assets(5)
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses ....................................... 1.54%(6) 1.67% 1.54% 1.62% 1.78% 1.86%
==========================================================================
Net investment income ................................ 1.18%(6) 0.94% 2.66% 1.87% 1.21% 0.59%
==========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................... $ 51,483 $ 26,777 $ 24,078 $ 10,040 $ 8,684 $ 7,800
==========================================================================
Portfolio turnover of the Portfolio .................. 11% 55% 79% 80% 115% 206%
==========================================================================
(1) Based on average shares outstanding.
(2) Includes redemption fees, which are less than $0.01 per share.
(3) Total investment returns exclude the effects of sales charges.
(4) Aggregate total investment return.
(5) Includes the Fund's share of the Portfolio's allocated expenses and/or net
investment income.
(6) Annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 11
- --------------------------------------------------------------------------------
Financial Highlights (continued) BlackRock Global Financial Services Fund, Inc.
Investor B
-------------------------------------------------------------------------
Six Months
Ended
March 31, Year Ended September 30,
2008 --------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................. $ 16.32 $ 15.52 $ 15.18 $ 13.86 $ 12.51 $ 9.36
--------------------------------------------------------------------------
Net investment income (loss)(1) ...................... (0.01) 0.03 0.33 0.16 0.06 (0.03)
Net realized and unrealized gain (loss) .............. (2.66)(2) 1.55(2) 1.84(2) 3.23(2) 2.74(2) 3.49
--------------------------------------------------------------------------
Net increase (decrease) from investment operations ... (2.67) 1.58 2.17 3.39 2.80 3.46
--------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............................. -- (0.28) (0.22) (0.05) -- --
Net realized gain ................................. (2.99) (0.50) (1.61) (2.02) (1.45) (0.31)
--------------------------------------------------------------------------
Total dividends and distributions .................... (2.99) (0.78) (1.83) (2.07) (1.45) (0.31)
--------------------------------------------------------------------------
Net asset value, end of period ....................... $ 10.66 $ 16.32 $ 15.52 $ 15.18 $ 13.86 $ 12.51
==========================================================================
==================================================================================================================================
Total Investment Return(3)
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................. (18.24%)(4) 10.13% 14.23% 26.08% 23.89% 37.71%
==========================================================================
==================================================================================================================================
Ratios to Average Net Assets(5)
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses ....................................... 2.42%(6) 2.42% 2.30% 2.39% 2.55% 2.64%
==========================================================================
Net investment income (loss) ......................... (0.13%)(6) 0.18% 2.08% 1.09% 0.46% (0.24%)
==========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................... $ 9,300 $ 22,592 $ 27,397 $ 31,126 $ 33,733 $ 37,202
==========================================================================
Portfolio turnover of the Portfolio .................. 11% 55% 79% 80% 115% 206%
==========================================================================
(1) Based on average shares outstanding.
(2) Includes redemption fees, which are less than $0.01 per share.
(3) Total investment returns exclude the effects of sales charges.
(4) Aggregate total investment return.
(5) Includes the Fund's share of the Portfolio's allocated expenses and/or net
investment income.
(6) Annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
12 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Financial Highlights (continued) BlackRock Global Financial Services Fund, Inc.
Investor C
------------------------------------------------------------------------
Six Months
Ended
March 31, Year Ended September 30,
2008 --------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................... $ 16.20 $ 15.44 $ 15.10 $ 13.82 $ 12.51 $ 9.36
-------------------------------------------------------------------------
Net investment income (loss)(1) ........................ 0.03 0.02 0.30 0.16 0.07 (0.02)
Net realized and unrealized gain (loss) ................ (2.66)(2) 1.53(2) 1.87(2) 3.21(2) 2.72(2) 3.48
-------------------------------------------------------------------------
Net increase (decrease) from investment operations ..... (2.63) 1.55 2.17 3.37 2.79 3.46
-------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............................... (0.01) (0.29) (0.22) (0.07) -- --
Net realized gain ................................... (3.13) (0.50) (1.61) (2.02) (1.48) (0.31)
-------------------------------------------------------------------------
Total dividends and distributions ...................... (3.14) (0.79) (1.83) (2.09) (1.48) (0.31)
-------------------------------------------------------------------------
Net asset value, end of period ......................... $ 10.43 $ 16.20 $ 15.44 $ 15.10 $ 13.82 $ 12.51
=========================================================================
====================================================================================================================================
Total Investment Return(3)
- ------------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................... (18.22%)(4) 10.04% 14.35% 26.02% 23.83% 37.71%
=========================================================================
====================================================================================================================================
Ratios to Average Net Assets(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses ......................................... 2.33%(6) 2.47% 2.31% 2.40% 2.56% 2.64%
=========================================================================
Net investment income (loss) ........................... 0.52%(6) 0.13% 1.91% 1.10% 0.48% (0.22%)
=========================================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ........................ $ 40,692 $ 20,535 $ 21,915 $ 15,087 $ 16,714 $13,762
=========================================================================
Portfolio turnover of the Portfolio .................... 11% 55% 79% 80% 115% 206%
=========================================================================
(1) Based on average shares outstanding.
(2) Includes redemption fees, which are less than $0.01 per share.
(3) Total investment returns exclude the effects of sales charges.
(4) Aggregate total investment return.
(5) Includes the Fund's share of the Portfolio's allocated expenses and/or net
investment income.
(6) Annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 13
- --------------------------------------------------------------------------------
Financial Highlights (concluded) BlackRock Global Financial Services Fund, Inc.
Class R
-----------------------------------------------------------------------------
Six Months
Ended Period
March 31, Year Ended September 30, Jan. 3,2003(1)
2008 ---------------------------------------------- to Sept. 30,
(Unaudited) 2007 2006 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............... $ 16.28 $ 15.54 $ 15.21 $ 13.91 $ 12.62 $ 10.16
-----------------------------------------------------------------------------
Net investment income(2) ........................... 0.03 0.10 0.36 0.29 0.14 0.04
Net realized and unrealized gain (loss) ............ (2.65)(3) 1.54(3) 1.90(3) 3.18(3) 2.74(3) 2.42
-----------------------------------------------------------------------------
Net increase (decrease) from investment operations . (2.62) 1.64 2.26 3.47 2.88 2.46
-----------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ........................... (0.05) (0.40) (0.32) (0.15) -- --
Net realized gain ............................... (3.13) (0.50) (1.61) (2.02) (1.59) --
-----------------------------------------------------------------------------
Total dividends and distributions .................. (3.18) (0.90) (1.93) (2.17) (1.59) --
-----------------------------------------------------------------------------
Net asset value, end of period ..................... $ 10.48 $ 16.28 $ 15.54 $ 15.21 $ 13.91 $ 12.62
=============================================================================
===================================================================================================================================
Total Investment Return
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ........................... (18.05%)(4) 10.53% 14.90% 26.74% 24.51% 24.21%(4)
=============================================================================
===================================================================================================================================
Ratios to Average Net Assets(5)
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses ..................................... 2.03%(6) 2.02% 1.80% 1.83% 2.11% 2.17%(6)
=============================================================================
Net investment income .............................. 0.42%(6) 0.61% 2.22% 2.02% 0.99% 0.45%(6)
=============================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) .................... $ 7,463 $ 8,996 $ 5,314 $ 2,040 $ 555 $ 49
=============================================================================
Portfolio turnover of the Portfolio ................ 11% 55% 79% 80% 115% 206%
=============================================================================
(1) Commencement of operations.
(2) Based on average shares outstanding.
(3) Includes redemption fees, which are less than $0.01 per share.
(4) Aggregate total investment return.
(5) Includes the Fund's share of the Portfolio's allocated expenses and/or net
investment income.
(6) Annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
14 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
BlackRock Global Financial Services Fund, Inc.
1. Significant Accounting Policies:
BlackRock Global Financial Services Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940, as amended, (the "1940 Act"), as a
diversified, open-end management investment company. The Fund seeks to achieve
its investment objective by investing all of its assets in Global Financial
Services Portfolio (the "Portfolio") of Global Financial Services Master LLC,
which has the same investment objective and strategies as the Fund. The value of
the Fund's investment in the Portfolio reflects the Fund's proportionate
interest in the net assets of the Portfolio. The performance of the Fund is
directly affected by the performance of the Portfolio. The financial statements
of the Portfolio, including the Schedule of Investments, are included elsewhere
in this report and should be read in conjunction with the Fund's financial
statements. The Fund's 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 percentage of the Portfolio owned by the Fund
at March 31, 2008 was 100%. The Fund offers multiple classes of shares.
Institutional Shares are sold without a sales charge and only to certain
eligible investors. Investor A Shares are generally sold with a front-end sales
charge. Investor B and Investor C Shares may be subject to a contingent deferred
sales charge. Class R Shares are sold only to certain retirement plans. All
classes of shares have identical voting, dividend, liquidation and other rights
and the same terms and conditions, except that Investor A, Investor B, Investor
C and Class R Shares bear certain expenses related to the shareholder servicing
of such shares, and Investor B, Investor C and Class R Shares also bear certain
expenses related to the distribution of such shares. Each class has exclusive
voting rights with respect to matters relating to its shareholder servicing and
distribution expenditures (except that Investor B shareholders may vote on
material changes to the Investor A distribution plan).
The following is a summary of significant accounting policies followed by the
Fund:
Valuation of Investments: The Fund records its investment in the Portfolio at
fair value. Valuation of securities held by the Portfolio is discussed in Note 1
of the Portfolio's Notes to Financial Statements, which are included elsewhere
in this report.
Investment Transactions and Net Investment Income: The Fund records daily its
proportionate share of the Portfolio's income, expenses and realized and
unrealized gains and losses. In addition, the Fund accrues its own expenses.
Income and realized and unrealized gains and losses are allocated daily to each
class based on its relative net assets.
Dividends and Distributions to Shareholders: Dividends and distributions paid by
the Fund are recorded on the ex-dividend dates.
Income Taxes: It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
Effective March 31, 2008, the Fund implemented Financial Accounting Standards
Board ("FASB") Interpretation No. 48,"Accounting for Uncertainty in Income Taxes
- -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 prescribes
the minimum recognition threshold a tax position must meet in connection with
accounting for uncertainties in income tax positions taken or expected to be
taken by an entity, including investment companies, before being measured and
recognized in the financial statements. The administrator has evaluated the
application of FIN 48 to the Fund, and has determined that the adoption of FIN
48 did not have a material impact on the Fund's financial statements. The Fund
files U.S. federal and various state and local tax returns. No income tax
returns are currently under examination. The statute of limitations on the
Fund's U.S. federal tax returns remains open for the years ended Septem-ber 30,
2004 through September 30, 2006. The statutes of limitations on the Fund's state
and local tax returns may remain open for an additional year depending upon the
jurisdiction.
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 Fund's 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 Fund's financial statement
disclosures, if any, is currently being assessed.
- --------------------------------------------------------------------------------
BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 15
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
BlackRock Global Financial Services Fund, Inc.
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 administrator is currently
evaluating the implications of FAS 161 and the impact on the Fund's financial
statement disclosures, if any, is currently being assessed.
Other: Expenses directly related to the Fund are charged to the 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. Other expenses of
the Fund are allocated daily to each class based on its relative net assets.
2. Transactions with Affiliates:
The 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). For such services, the Fund pays a monthly fee at
an annual rate of 0.35% of the Fund's average daily net assets. Merrill Lynch &
Co., Inc. ("Merrill Lynch") and The PNC Financial Services Group, Inc. ("PNC")
are principal owners of BlackRock, Inc.
The Fund has also entered into separate Distribution Agreements and Distribution
Plans with FAM Distributors, Inc. ("FAMD") and BlackRock Distributors, Inc. and
its affiliates ("BDI") (collectively, the "Distributor"). FAMD is a wholly owned
subsidiary of Merrill Lynch Group, Inc., and BDI is an affiliate of BlackRock,
Inc.
Pursuant to the Distribution Plans adopted by the Fund in accordance with Rule
12b-1 under the 1940 Act, the Fund pays the Distributor ongoing service and
distribution fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares as follows:
- --------------------------------------------------------------------------------
Distribution
Service Fee Fee
- --------------------------------------------------------------------------------
Investor A ........................................ 0.25% --
Investor B ........................................ 0.25% 0.75%
Investor C ........................................ 0.25% 0.75%
Class R ........................................... 0.25% 0.25%
- --------------------------------------------------------------------------------
Pursuant to sub-agreements with each Distributor, broker-dealers, including
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned
subsidiary of Merrill Lynch, and each Distributor provide shareholder servicing
and distribution services to the Fund. The ongoing service fee compensates each
Distributor and each broker-dealer for providing shareholder servicing to
Investor A, Investor B, Investor C and Class R shareholders. The ongoing
distribution fee compensates each Distributor and each broker-dealer for
providing distribution-related services to Investor B, Investor C and Class R
shareholders.
For the six months ended March 31, 2008, FAMD and BDI earned underwriting
discounts and direct commissions and MLPF&S and BDI earned dealer concessions on
sales of the Fund's Investor A Shares which totaled $79,400.
For the six months ended March 31, 2008, affiliates received contingent deferred
sales charges of $6,018 and $7,722 relating to transactions in Investor B and
Investor C Shares, respectively.
Furthermore, affiliates received contingent deferred sales charges of $126
relating to transactions subject to front-end sales charge waivers in Investor
A.
The Administrator maintains a call center, which is responsible for providing
certain shareholder services to the Fund, such as responding to shareholder
inquiries and processing transactions based upon instructions from shareholders
with respect to the subscription and redemption of Fund shares. During the six
months ended March 31, 2008, the following amounts have been accrued by the Fund
to reimburse the Administrator for costs incurred running the call center, which
are a component of the transfer agent fees in the accompanying Statement of
Operations.
- --------------------------------------------------------------------------------
Call Center
Fees
- --------------------------------------------------------------------------------
Institutional .................................................... $ 96
Investor A ....................................................... $864
Investor B ....................................................... $360
Investor C ....................................................... $420
Class R .......................................................... $ 57
- --------------------------------------------------------------------------------
PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the
Administrator, serves as transfer agent. Each class of the Fund bears the costs
of transfer agent fees associated with such respective classes. Transfer agency
fees borne by each class of the Fund 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, 12b-1 fee calculation, check writing,
anti-money laundering services, and customer identification services.
Certain officers and/or directors of the Fund are officers and/or directors of
BlackRock, Inc. or its affiliates.
- --------------------------------------------------------------------------------
16 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Notes to Financial Statements (concluded)
BlackRock Global Financial Services Fund, Inc.
3. Capital Share Transactions:
Transactions in capital shares for each class were as follows:
- --------------------------------------------------------------------------------
Institutional Shares Six Months
Ended March 31, 2008 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ..................................... 596,252 $ 7,345,145
Shares issued to shareholders in reinvestment of
dividends and distributions .................. 234,928 2,833,141
----------------------------
Total issued .................................... 831,180 10,178,286
Shares redeemed ................................. (257,209) (3,437,377)
----------------------------
Net increase .................................... 573,971 $ 6,740,909
============================
- --------------------------------------------------------------------------------
Institutional Shares Year Ended
September 30, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ..................................... 283,669 $ 4,712,330
Shares issued to shareholders in reinvestment of
dividends and distributions .................. 50,016 828,755
----------------------------
Total issued .................................... 333,685 5,541,085
Shares redeemed ................................. (483,819) (8,031,720)
----------------------------
Net decrease .................................... (150,134) $ (2,490,635)
============================
- --------------------------------------------------------------------------------
Investor A Shares Six Months
Ended March 31, 2008 Shares Amount
- --------------------------------------------------------------------------------
Shares sold and automatic conversion of shares .. 3,463,114 $ 44,387,630
Shares issued to shareholders in reinvestment of
dividends and distributions .................. 635,581 7,594,996
----------------------------
Total issued .................................... 4,098,695 51,982,626
Shares redeemed ................................. (917,531) (11,413,287)
----------------------------
Net increase .................................... 3,181,164 $ 40,569,339
============================
- --------------------------------------------------------------------------------
Investor A Shares Year Ended
September 30, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold and automatic conversion of shares .. 811,607 $ 13,332,012
Shares issued to shareholders in reinvestment of
dividends and distributions .................. 70,448 1,161,692
----------------------------
Total issued .................................... 882,055 14,493,704
Shares redeemed ................................. (794,059) (13,109,942)
----------------------------
Net increase .................................... 87,996 $ 1,383,762
============================
- --------------------------------------------------------------------------------
Investor B Shares Six Months
Ended March 31, 2008 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ..................................... 210,995 $ 2,753,125
Shares issued to shareholders in reinvestment
of distributions ............................. 169,298 2,011,212
----------------------------
Total issued .................................... 380,293 4,764,337
Shares redeemed and automatic conversion
of shares .................................... (891,888) (12,906,860)
----------------------------
Net decrease .................................... (511,595) $ (8,142,523)
============================
- --------------------------------------------------------------------------------
Investor B Shares Year Ended
September 30, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ..................................... 149,244 $ 2,420,721
Shares issued to shareholders in reinvestment of
dividends and distributions .................. 68,311 1,111,411
----------------------------
Total issued .................................... 217,555 3,532,132
Shares redeemed and automatic conversion
of shares .................................... (598,252) (9,714,361)
----------------------------
Net decrease .................................... (380,697) $ (6,182,229)
============================
- --------------------------------------------------------------------------------
Investor C Shares Six Months
Ended March 31, 2008 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ..................................... 2,697,062 $ 31,119,418
Shares issued to shareholders in reinvestment of
dividends and distributions .................. 387,068 4,497,683
----------------------------
Total issued .................................... 3,084,130 35,617,101
Shares redeemed ................................. (450,420) (5,695,527)
----------------------------
Net increase .................................... 2,633,710 $ 29,921,574
============================
- --------------------------------------------------------------------------------
Investor C Shares Year Ended
September 30, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ..................................... 504,395 $ 8,083,175
Shares issued to shareholders in reinvestment of
dividends and distributions .................. 60,728 981,357
----------------------------
Total issued .................................... 565,123 9,064,532
Shares redeemed ................................. (717,194) (11,576,636)
----------------------------
Net decrease .................................... (152,071) $ (2,512,104)
============================
- --------------------------------------------------------------------------------
Class R Shares Six Months
Ended March 31, 2008 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ..................................... 179,300 $ 2,251,742
Shares issued to shareholders in reinvestment of
dividends and distributions .................. 152,841 1,783,651
----------------------------
Total issued .................................... 332,141 4,035,393
Shares redeemed ................................. (172,371) (2,162,180)
----------------------------
Net increase .................................... 159,770 $ 1,873,213
============================
- --------------------------------------------------------------------------------
Class R Shares Year Ended
September 30, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ..................................... 408,902 $ 6,625,640
Shares issued to shareholders in reinvestment of
dividends and distributions .................. 21,019 340,088
----------------------------
Total issued .................................... 429,921 6,965,728
Shares redeemed ................................. (219,414) (3,557,377)
----------------------------
Net increase .................................... 210,507 $ 3,408,351
============================
The Fund charges a 2% redemption fee on the proceeds (calculated at market
value) of a redemption (either by sale or exchange) of Fund shares made within
30 days of purchase or exchange. The redemption fee is paid to the Fund and is
intended to offset the trading costs, market impact and other costs associated
with short-term trading into and out of the Fund.
- --------------------------------------------------------------------------------
BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 17
- --------------------------------------------------------------------------------
Portfolio Information Global Financial Services Portfolio
- --------------------------------------------------------------------------------
March 31, 2008
- --------------------------------------------------------------------------------
Percent of
Ten Largest Equity Holdings Net Assets
- --------------------------------------------------------------------------------
JPMorgan Chase & Co. .............................................. 5%
Bank of America Corp. ............................................. 4
Banco Santander SA ................................................ 4
American International Group, Inc. ................................ 4
BNP Paribas SA .................................................... 3
Unicredit SpA ..................................................... 3
The Bank of New York Mellon Corp. ................................. 3
AXA SA ............................................................ 3
HSBC Holdings Plc ................................................. 3
Standard Chartered Plc ............................................ 2
- --------------------------------------------------------------------------------
Industries Represented in Percent of
the Portfolio Net Assets*
- --------------------------------------------------------------------------------
Commercial Banks .................................................. 36%
Insurance ......................................................... 24
Diversified Financial Services .................................... 13
Capital Markets ................................................... 12
Real Estate Management & Development .............................. 2
Consumer Finance .................................................. 2
IT Services ....................................................... 2
Real Estate Investment Trusts (REITs) ............................. 1
Thrifts & Mortgage Finance ........................................ 1
- --------------------------------------------------------------------------------
* Total may not equal 100%.
For Portfolio compliance purposes, the Portfolio's industry
classifications refer to any one or more of the industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by Portfolio management. This
definition may not apply for purposes of this report, which may combine
industry sub-classifications for reporting ease.
Geographic Allocation Percent of
by Country Long-Term Investments
- --------------------------------------------------------------------------------
United States .......................................... 39%
United Kingdom ......................................... 7
France ................................................. 6
Japan .................................................. 5
Spain .................................................. 5
South Korea ............................................ 4
Germany ................................................ 4
Italy .................................................. 3
Indonesia .............................................. 3
India .................................................. 3
Hong Kong .............................................. 3
Cayman Islands ......................................... 2
Switzerland ............................................ 2
Netherlands ............................................ 2
Malaysia ............................................... 2
China .................................................. 1
Thailand ............................................... 1
Singapore .............................................. 1
Belgium ................................................ 1
Denmark ................................................ 1
Bermuda ................................................ 1
Taiwan ................................................. 1
Ireland ................................................ 1
Egypt .................................................. 1
Turkey ................................................. 1
- --------------------------------------------------------------------------------
18 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Schedule of Investments March 31, 2008 (Unaudited)
Global Financial Services Portfolio
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
- --------------------------------------------------------------------------------
Belgium -- 1.1%
Commercial Banks -- 1.1%
KBC Bancassurance Holding 10,600 $ 1,374,598
- --------------------------------------------------------------------------------
Total Common Stocks in Belgium 1,374,598
================================================================================
Bermuda -- 1.1%
Insurance -- 1.1%
RenaissanceRe Holdings Ltd. 25,800 1,339,278
- --------------------------------------------------------------------------------
Total Common Stocks in Bermuda 1,339,278
================================================================================
Cayman Islands -- 2.3%
Insurance -- 2.3%
ACE Ltd. 52,600 2,896,156
- --------------------------------------------------------------------------------
Total Common Stocks in the Cayman Islands 2,896,156
================================================================================
China -- 1.5%
Commercial Banks -- 0.8%
China Merchants Bank Co. Ltd. 297,100 1,028,807
- --------------------------------------------------------------------------------
Real Estate Management & Development -- 0.7%
Guangzhou R&F Properties Co. Ltd. 332,700 882,766
- --------------------------------------------------------------------------------
Total Common Stocks in China 1,911,573
================================================================================
Denmark -- 1.1%
Commercial Banks -- 1.1%
Danske Bank A/S 36,900 1,361,270
- --------------------------------------------------------------------------------
Total Common Stocks in Denmark 1,361,270
================================================================================
Egypt -- 0.6%
Commercial Banks -- 0.6%
Commercial International Bank 46,100 777,436
- --------------------------------------------------------------------------------
Total Common Stocks in Egypt 777,436
================================================================================
France -- 5.9%
Commercial Banks -- 3.1%
BNP Paribas SA 38,400 3,873,283
- --------------------------------------------------------------------------------
Insurance -- 2.8%
AXA SA 96,600 3,506,156
- --------------------------------------------------------------------------------
Total Common Stocks in France 7,379,439
================================================================================
Germany -- 3.4%
Insurance -- 3.4%
Allianz AG Registered Shares 14,000 2,773,433
Hannover Rueckversicherungs AG Registered Shares 28,800 1,501,359
- --------------------------------------------------------------------------------
Total Common Stocks in Germany 4,274,792
================================================================================
Hong Kong -- 2.4%
Commercial Banks -- 0.9%
Industrial & Commercial Bank of China 1,745,400 1,215,533
- --------------------------------------------------------------------------------
Insurance -- 0.5%
Ping An Insurance Group Co. of China Ltd. 84,300 597,373
- --------------------------------------------------------------------------------
Real Estate Management & Development -- 1.0%
China Resources Land Ltd. 728,000 1,262,809
- --------------------------------------------------------------------------------
Total Common Stocks in Hong Kong 3,075,715
================================================================================
Common Stocks Shares Value
- --------------------------------------------------------------------------------
India -- 2.5%
Commercial Banks -- 1.7%
HDFC Bank Ltd. 34,800 $ 1,154,723
ICICI Bank Ltd. 48,900 937,778
--------------
2,092,501
- --------------------------------------------------------------------------------
Diversified Financial Services -- 0.8%
Infrastructure Development Finance Co.Ltd. 263,700 992,490
- --------------------------------------------------------------------------------
Total Common Stocks in India 3,084,991
================================================================================
Indonesia -- 2.5%
Commercial Banks -- 2.5%
Bank Central Asia Tbk PT 3,306,600 1,167,458
Bank Danamon Indonesia Tbk PT 1,339,400 1,004,004
Bank Mandiri Persero Tbk PT 2,932,300 1,003,449
- --------------------------------------------------------------------------------
Total Common Stocks in Indonesia 3,174,911
================================================================================
Ireland -- 0.7%
Commercial Banks -- 0.7%
Allied Irish Banks Plc 39,300 837,609
- --------------------------------------------------------------------------------
Total Common Stocks in Ireland 837,609
================================================================================
Italy -- 3.0%
Commercial Banks -- 3.0%
Unicredit SpA 573,900 3,838,926
- --------------------------------------------------------------------------------
Total Common Stocks in Italy 3,838,926
================================================================================
Japan -- 4.4%
Capital Markets -- 0.7%
Nomura Holdings, Inc. 60,500 904,344
- --------------------------------------------------------------------------------
Commercial Banks -- 2.7%
Mitsubishi UFJ Financial Group, Inc. 149,600 1,290,690
Sumitomo Mitsui Financial Group, Inc. 320 2,105,939
--------------
3,396,629
- --------------------------------------------------------------------------------
Insurance -- 0.6%
Millea Holdings, Inc. 19,400 716,212
- --------------------------------------------------------------------------------
Real Estate Management & Development -- 0.4%
Sumitomo Real Estate Sales 16,000 542,536
- --------------------------------------------------------------------------------
Total Common Stocks in Japan 5,559,721
================================================================================
Malaysia -- 1.6%
Commercial Banks -- 1.0%
Public Bank BHD 387,800 1,273,066
- --------------------------------------------------------------------------------
Diversified Financial Services -- 0.6%
AMMB Holdings BHD 714,050 767,964
================================================================================
Total Common Stocks in Malaysia 2,041,030
================================================================================
Netherlands -- 1.8%
Diversified Financial Services -- 1.8%
ING Groep NV CVA 60,200 2,254,376
- --------------------------------------------------------------------------------
Total Common Stocks in the Netherlands 2,254,376
================================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 19
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
Global Financial Services Portfolio
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
- --------------------------------------------------------------------------------
Singapore -- 1.2%
Commercial Banks -- 1.2%
DBS Group Holdings Ltd. 37,000 $ 483,853
United Overseas Bank Ltd. 71,600 995,622
- --------------------------------------------------------------------------------
Total Common Stocks in Singapore 1,479,475
================================================================================
South Korea -- 3.9%
Commercial Banks -- 2.0%
Daegu Bank 63,300 850,093
Kookmin Bank 12,900 721,624
Shinhan Financial Group Co. Ltd. 17,900 945,292
--------------
2,517,009
- --------------------------------------------------------------------------------
Insurance -- 1.9%
Dongbu Insurance Co., Ltd. 18,600 713,687
Korean Reinsurance Co. 52,245 532,820
Meritz Fire & Marine Insurance Co. Ltd. 76,877 699,411
Samsung Fire & Marine Insurance Co.Ltd. 2,000 412,985
--------------
2,358,903
- --------------------------------------------------------------------------------
Total Common Stocks in South Korea 4,875,912
================================================================================
Spain -- 4.2%
Commercial Banks -- 4.2%
Banco Santander SA 262,800 5,236,002
- --------------------------------------------------------------------------------
Total Common Stocks in Spain 5,236,002
================================================================================
Switzerland -- 1.9%
Capital Markets -- 1.9%
Julius Baer Holding AG Class B 32,400 2,388,158
- --------------------------------------------------------------------------------
Total Common Stocks in Switzerland 2,388,158
================================================================================
Taiwan -- 1.0%
Commercial Banks -- 0.5%
SinoPac Financial Holdings Co., Ltd. 1,444,000 684,462
- --------------------------------------------------------------------------------
Insurance -- 0.5%
Cathay Financial Holding Co., Ltd. 237,000 604,602
- --------------------------------------------------------------------------------
Total Common Stocks in Taiwan 1,289,064
================================================================================
Thailand -- 1.5%
Commercial Banks -- 1.5%
Bangkok Bank PCL Foreign Shares 272,400 1,202,592
Siam Commercial Bank PCL 234,200 673,181
- --------------------------------------------------------------------------------
Total Common Stocks in Thailand 1,875,773
================================================================================
Turkey -- 0.5%
Commercial Banks -- 0.5%
Akbank T.A.S. 148,883 624,856
- --------------------------------------------------------------------------------
Total Common Stocks in Turkey 624,856
================================================================================
United Kingdom -- 6.0%
Commercial Banks -- 6.0%
HSBC Holdings Plc 189,300 3,118,245
Lloyds TSB Group Plc 162,900 1,458,072
Standard Chartered Plc 89,000 3,041,618
- --------------------------------------------------------------------------------
Total Common Stocks in the United Kingdom 7,617,935
================================================================================
Common Stocks Shares Value
- --------------------------------------------------------------------------------
United States -- 35.9%
Capital Markets -- 9.0%
Affiliated Managers Group, Inc. (a) 19,100 $ 1,733,134
The Bank of New York Mellon Corp. 86,700 3,617,991
Franklin Resources, Inc. 16,500 1,600,335
The Goldman Sachs Group, Inc. 17,200 2,844,708
Lehman Brothers Holdings, Inc. 38,000 1,430,320
---------------
11,226,488
- --------------------------------------------------------------------------------
Commercial Banks -- 1.1%
Wachovia Corp. 51,556 1,392,012
- --------------------------------------------------------------------------------
Consumer Finance -- 1.6%
American Express Co. 46,265 2,022,706
- --------------------------------------------------------------------------------
Diversified Financial Services -- 9.4%
Bank of America Corp. 140,568 5,328,933
Citigroup, Inc. 28,519 610,877
JPMorgan Chase & Co. 137,675 5,913,141
---------------
11,852,951
- --------------------------------------------------------------------------------
IT Services -- 1.5%
Visa, Inc. Class A (a) 31,200 1,945,632
- --------------------------------------------------------------------------------
Insurance -- 10.6%
American International Group, Inc. 114,732 4,962,159
Hartford Financial Services Group, Inc. 25,411 1,925,391
MetLife, Inc. 33,000 1,988,580
Prudential Financial, Inc. 26,324 2,059,853
The Travelers Cos., Inc. 50,300 2,406,855
---------------
13,342,838
- --------------------------------------------------------------------------------
Real Estate Investment Trusts (REITs) -- 1.4%
ProLogis 29,000 1,706,940
- --------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.3%
Fannie Mae 62,000 1,631,840
- --------------------------------------------------------------------------------
Total Common Stocks in the United States 45,121,407
================================================================================
Total Common Stocks (Cost -- $118,249,363) -- 92.0% 115,690,403
================================================================================
- --------------------------------------------------------------------------------
Par
Short-Term Securities (000)
- --------------------------------------------------------------------------------
United States -- 0.0%
Time Deposits -- 0.0%
Brown Brothers Harriman & Co., 1.70% due 4/01/08 --(b) 85
================================================================================
Beneficial
Interest
(000)
- --------------------------------------------------------------------------------
BlackRock Liquidity Series, LLC
Cash Sweep Series, 2.92% (c)(d) $ 10,374 10,373,857
- --------------------------------------------------------------------------------
Total Short-Term Securities (Cost -- $10,373,942)
-- 8.2% 10,373,942
================================================================================
Total Investments (Cost -- $128,623,305*) -- 100.2% 126,064,345
Liabilities in Excess of Other Assets -- (0.2%) (304,817)
--------------
Net Assets -- 100.0% $ 125,759,528
==============
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
20 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Schedule of Investments (concluded) Global Financial Services Portfolio
* The cost and unrealized appreciation (depreciation) of investments as of
March 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost .......................................... $ 128,978,681
==============
Gross unrealized appreciation ........................... $ 9,505,537
Gross unrealized depreciation ........................... (12,419,873)
--------------
Net unrealized depreciation ............................. $ (2,914,336)
==============
(a) Non-income producing security.
(b) Par is less than $1,000.
(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 $ 5,806 $ 165,282
BlackRock Liquidity Series, LLC
Money Market Series $(1,275) $ 3,561
--------------------------------------------------------------------------
(d) Represents the current yield as of report date.
o For Portfolio compliance purposes, the Portfolio's industry
classifications refer to any one or more of the industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by 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.
- --------------------------------------------------------------------------------
BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 21
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities Global Financial Services Portfolio
March 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------------------
Investments at value -- unaffiliated (cost -- $118,249,448) ............... $ 115,690,488
Investments at value -- affiliated (cost -- $10,373,857) .................. 10,373,857
Foreign currency at value (cost -- $6,893) ................................ 7,062
Receivable for contributions .............................................. 815,709
Dividends receivable ...................................................... 540,100
Receivable for securities lending ......................................... 340
Prepaid expenses and other assets ......................................... 12,847
--------------
Total assets .............................................................. 127,440,403
--------------
============================================================================================
Liabilities
- --------------------------------------------------------------------------------------------
Investments purchased payable ............................................. 1,254,397
Receivable for withdrawals ................................................ 327,953
Investment advisory fees payable .......................................... 40,373
Trustees fees payable ..................................................... 6,954
Other affiliates payable .................................................. 889
Other accrued expenses payable ............................................ 50,309
--------------
Total liabilities ......................................................... 1,680,875
--------------
============================================================================================
Net Assets
- --------------------------------------------------------------------------------------------
Net Assets ................................................................ $ 125,759,528
==============
============================================================================================
Net Assets Consist of
- --------------------------------------------------------------------------------------------
Investor's capital ........................................................ $ 128,307,719
Net unrealized depreciation ............................................... (2,548,191)
--------------
Net Assets ................................................................ $ 125,759,528
==============
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
22 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Statement of Operations Global Financial Services Portfolio
Six Months Ended March 31, 2008 (Unaudited)
- --------------------------------------------------------------------------------------------
Investment Income
- --------------------------------------------------------------------------------------------
Dividends (net of $42,728 foreign withholding tax) ......................... $ 1,229,271
Interest from affiliates ................................................... 165,282
Securities lending ......................................................... 3,561
-------------
Total income ............................................................... 1,398,114
-------------
============================================================================================
Expenses
- --------------------------------------------------------------------------------------------
Investment advisory ........................................................ 210,330
Accounting services ........................................................ 51,499
Custodian .................................................................. 47,158
Professional fees .......................................................... 19,245
Trustees ................................................................... 8,593
Printing ................................................................... 3,299
Miscellaneous .............................................................. 7,489
-------------
Total expenses ............................................................. 347,613
-------------
Net investment income ...................................................... 1,050,501
-------------
============================================================================================
Realized and Unrealized Gain (Loss)
- --------------------------------------------------------------------------------------------
Net realized loss from:
Investments ............................................................. (3,945,256)
Foreign currency ........................................................ (14,273)
-------------
(3,959,529)
-------------
Net change in unrealized appreciation/depreciation on:
Investments (including $27,994 from deferred capital gain tax credit) ... (16,412,241)
Foreign currency ........................................................ 2,969
-------------
(16,409,272)
-------------
Total net realized and unrealized loss ..................................... (20,368,801)
-------------
Net Decrease in Net Assets Resulting from Operations ....................... $(19,318,300)
=============
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 23
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets Global Financial Services Portfolio
Six Months
Ended
March 31, Year Ended
2008 September 30,
Increase (Decrease) in Net Assets: (Unaudited) 2007
- --------------------------------------------------------------------------------------------------------------------------------
Operations
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income ........................................................................ $ 1,050,501 $ 1,803,324
Net realized gain (loss) ..................................................................... (3,959,529) 22,294,403
Net change in unrealized appreciation/depreciation ........................................... (16,409,272) (12,906,995)
-------------------------------
Net increase (decrease) in net assets resulting from operations .............................. (19,318,300) 11,190,732
-------------------------------
================================================================================================================================
Capital Transactions
- --------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions .................................................................. 100,168,559 35,173,878
Fair value of withdrawals .................................................................... (50,296,468) (47,759,892)
-------------------------------
Net increase (decrease) in net assets derived from capital transactions ...................... 49,872,091 (12,586,014)
-------------------------------
================================================================================================================================
Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ...................................................... 30,553,791 (1,395,282)
Beginning of period .......................................................................... 95,205,737 96,601,019
-------------------------------
End of period ................................................................................ $ 125,759,528 $ 95,205,737
===============================
- --------------------------------------------------------------------------------
Financial Highlights Global Financial Services Portfolio
Six Months
Ended
March 31, Year Ended September 30,
2008 ------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Return
- --------------------------------------------------------------------------------------------------------------------------------
Total investment return .............................. (17.42%)(1) 11.91% 16.07% 28.02% 25.86% 40.92%
=======================================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Total expenses ....................................... 0.66%(2) 0.71% 0.66% 0.70% 0.78% 0.76%
=======================================================================
Net investment income ................................ 1.99%(2) 1.89% 3.62% 3.05% 2.23% 1.64%
=======================================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................... $ 125,760 $ 95,206 $ 96,601 $ 107,953 $ 70,762 $ 70,172
=======================================================================
Portfolio turnover ................................... 11% 55% 79% 80% 115% 206%
=======================================================================
(1) Aggregate total investment return.
(2) Annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
24 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) Global Financial Services Portfolio
1. Significant Accounting Policies:
Global Financial Services Portfolio (the "Portfolio") is part of Global
Financial Services Master 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 Portfolio's 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
Portfolio:
Valuation of Investments: Equity investments traded on a national 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 national exchange for which there were no sales on that
day and equity investments traded on over-the-counter ("OTC") markets for which
market quotations are readily available are valued at the last available bid
price. Short-term securities may be valued at amortized cost. Investments in
open-end investment companies are valued at their net asset value each business
day.
Exchange-traded options are valued at the mean between the last bid and ask
prices at the close of the options market in which the options trade. OTC
options quotations are provided by dealers or pricing services selected under
the supervision of the Board of Directors (the "Board"). Considerations utilized
by dealers or pricing services in valuing OTC options include, but are not
limited to, volatility factors of the underlying security, price movement of the
underlying security in relation to the strike price and the time left until
expiration of the option.
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, under the direction of, or
in accordance with, a method approved by the Board as reflecting fair value
("Fair Value Assets"). When determining the price for Fair Value Assets, the
investment advisor and/or the sub-advisor seeks to determine the price that the
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.
Generally, trading in foreign securities, is substantially completed each day at
various times prior to the close of business on the New York Stock Exchange
("NYSE"). The values of such securities used in computing the net assets of the
Portfolio are determined as of such times. Foreign currency exchange rates will
be determined as of the close of business on the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of business on the
NYSE that may not be reflected in the computation of the Portfolio's net assets.
If events (for example, a company announcement, market volatility or a natural
disaster) occur during such periods that are expected to materially affect the
value of such securities, those securities will be valued at their fair value as
determined in good faith by the Board or by the investment advisor using a
pricing service and/or procedures approved by the Board.
Derivative Financial Instruments: The Portfolio may engage in various portfolio
investment strategies to increase the return of the Portfolio and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise if the value of the contract decreases due to an
unfavorable change in the price of the underlying security, or if the
counterparty does not perform under the contract.
o Forward foreign exchange contracts -- The Portfolio may enter into forward
foreign exchange contracts as a hedge against either specific transactions
or portfolio positions. Forward currency contracts, when used by the
Portfolio, help to manage the overall exposure to the foreign currency
backing some of the investments held by the Portfolio. The contract is
marked-to-market daily and the change in market value is recorded by the
Portfolio as an unrealized gain or loss. When the contract is closed, the
Portfolio records a realized gain or loss equal to the difference between
the value at the time it was opened and the value at the time it was
closed.
o Options -- The Portfolio may purchase and write call and put options. When
the Portfolio writes an option, an amount equal to the premium received by
the Portfolio is reflected as an asset and an equivalent liability. The
amount of the liability is subsequently marked-to-market to reflect the
current value of the option written. When a security is purchased or sold
through an exercise of an option, the related premium paid (or received)
is added to (or deducted from) the basis of the security acquired or
deducted from (or added to) the proceeds of the security sold. When an
option expires (or the Portfolio enters into a closing transaction), the
Portfolio realizes a gain or loss on the option to the extent of the
premiums received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium received or paid). If an option is
exercised, the premium paid or received is added to the cost of the
purchase or the proceeds from the sale in determining whether the
Portfolio has realized a gain or a loss on investment transactions.
- --------------------------------------------------------------------------------
BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 25
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued) Global Financial Services Portfolio
A call option gives the purchaser of the option the right (but not the
obligation) to buy, and obligates the seller to sell (when the option is
exercised), the underlying position at the exercise price at any time or
at a specified time during the option period. A put option gives the
holder the right to sell and obligates the writer to buy the underlying
position at the exercise price at any time or at a specified time during
the option period.
Foreign Currency Transactions: Foreign currency amounts are translated into
United States dollars on the following basis: (i) market value of investment
securities, assets and liabilities at the current rate of exchange; and (ii)
purchases and sales of investment securities, income and expenses at the rates
of exchange prevailing on the respective dates of such transactions.
The Portfolio reports foreign currency related transactions as components of
realized gains for financial reporting purposes, whereas such components are
treated as ordinary income for federal income tax purposes.
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 the Portfolio has determined the ex-dividend date.
Interest income is recognized on the accrual basis. The Portfolio amortizes all
premiums and discounts on debt securities.
Securities Lending: The Portfolio may lend securities to financial institutions
that provide cash or securities issued or guaranteed by the U.S. government as
collateral, which will be maintained at all times in an amount equal to at least
100% of the current market value of the loaned securities. The market value of
the loaned securities is determined at the close of business of the Portfolio
and any additional required collateral is delivered to the Portfolio on the next
business day. Where the Portfolio receives securities as collateral for the
loaned securities, it collects a fee from the borrower. The Portfolio typically
receives the income on the loaned securities but does not receive the income on
the collateral. Where the Portfolio receives cash collateral, it may invest such
collateral and retain the amount earned on such investment, net of any amount
rebated to the borrower. Loans of securities are terminable at any time and the
borrower, after notice, is required to return borrowed securities within five
business days. The Portfolio may pay reasonable finder's, lending agent,
administrative and custodial fees in connection with its loans. In the event
that the borrower defaults on its obligation to return borrowed securities
because of insolvency or for any other reason, the Portfolio could experience
delays and costs in gaining access to the collateral. The Portfolio also could
suffer a loss where the value of the collateral falls below the market value of
the borrowed securities, in the event of borrower default or in the event of
losses on investments made with cash collateral.
Income Taxes: It is the 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 March 31, 2008, the 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 Portfolio and has determined that the
adoption of FIN 48 did not have a material impact on the Portfolio's financial
statements. The Portfolio files U.S. federal and various state and local tax
returns. No income tax returns are currently under examination. The statute of
limitations on the Portfolio's U.S. federal tax returns remains open for the
years ended September 30, 2004 through September 30, 2006. The statutes of
limitations on the Portfolio's state and local tax returns may remain open for
an additional year depending upon the jurisdiction.
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 Portfolio's
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 as of the beginning of a fiscal year that
begins on or before November 15, 2007, provided the entity also elects to apply
the provisions of FAS 157. FAS 159 permits entities to choose to measure many
financial instruments and certain other items at fair value that are not
currently required to be measured at fair value. FAS 159 also establishes
presentation and disclosure requirements designed to facilitate comparisons
between entities that choose different measurement attributes for similar types
of assets and liabilities. The impact on the Portfolio's 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
- --------------------------------------------------------------------------------
26 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
Notes to Financial Statements (concluded) Global Financial Services Portfolio
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 Portfolio's financial statement disclosures, if any,
is currently being assessed.
Other: Expenses directly related to the Portfolio are charged to the Portfolio.
Other operating expenses shared by several funds are pro-rated among those funds
on the basis of relative net assets or other appropriate methods.
2. Investment Advisory Agreement and Other Transactions with Affiliates:
The Master LLC 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 the Portfolio's investments and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Portfolio. For such services, the
Portfolio pays the Advisor a monthly fee at an annual rate of 0.40% of the
average daily value of the Portfolio's net assets.
In addition, the Advisor has entered into a separate sub-advisory agreement 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 the Portfolio to the Advisor.
For the six months ended March 31, 2008, the Portfolio reimbursed the Advisor
$1,040 for certain accounting services, which are included in accounting
services expenses in the Statement of Operations.
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 ("MLPF&S"), a wholly owned subsidiary of Merrill
Lynch, or its affiliates. Pursuant to that order, the Portfolio has retained BIM
as the securities lending agent for a fee based on a share of the returns on
investment of cash collateral. BIM may, on behalf of the 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 March
31, 2008, BIM received $861 in securities lending agent fees.
In addition, MLPF&S received $11,361 in commissions on the execution of
portfolio security transactions for the Portfolio for the six months ended March
31, 2008.
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 March 31, 2008 were $54,797,408 and $10,672,313, respectively.
4. Short-Term Borrowings:
The Portfolio, 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. The Portfolio may borrow under the credit agreement to fund shareholder
redemptions and for other lawful purposes other than for leverage. The Portfolio
may borrow up to the maximum amount allowable under the Portfolio's current
prospectus and statement of additional information, subject to various other
legal, regulatory or contractual limits. On November 21, 2007, the credit
agreement was renewed for one year under substantially the same terms. The
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 Statement 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 Portfolio did not borrow under the credit agreement during the
six months ended March 31, 2008.
5. Commitments:
At March 31, 2008, the Portfolio had entered into foreign exchange contracts
under which it had purchased various foreign currencies with approximate values
of $1,251,000.
- --------------------------------------------------------------------------------
BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 27
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
28 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 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.
- --------------------------------------------------------------------------------
Availability of Additional Information
- --------------------------------------------------------------------------------
Electronic copies of most financial reports and prospectuses are available on
the Fund's website or shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Fund's 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 Fund will mail only one copy of shareholder documents, including
prospectuses, annual and semi-annual reports and proxy statements, to
shareholders with multiple accounts at the same address. This practice is
commonly called "householding" and it is intended to reduce expenses and
eliminate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you instruct us
otherwise. If you do not want the mailing of these documents to be combined with
those for other members of your household, please contact the Fund at (800)
441-7762.
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BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 29
- --------------------------------------------------------------------------------
Additional Information (concluded)
- --------------------------------------------------------------------------------
Availability of Additional Information (concluded)
- --------------------------------------------------------------------------------
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund uses 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 Fund votes proxies relating to securities held in the
Fund's 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 Fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q
are available on the SEC's website at http://www.sec.gov and may also be
reviewed and copied at the SEC's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling (800) SEC-0330. The Fund's Forms N-Q may also be obtained upon request
and without charge by calling (800) 441-7762.
- --------------------------------------------------------------------------------
Shareholder Privileges
- --------------------------------------------------------------------------------
Account Information
Call us at (800) 441-7762 8:00 AM - 6:00 PM EST to get information about your
account balances, recent transactions and share prices. You can also reach us on
the Web at www.blackrock.com/funds.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have $50
or more automatically deducted from their checking or savings account and
invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as long as
their account is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
- --------------------------------------------------------------------------------
30 BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008
- --------------------------------------------------------------------------------
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 Healthcare Fund
BlackRock Health Sciences Opportunities Portfolio*
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio
BlackRock International Value Fund
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
BlackRock Latin America Fund
BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Mid-Cap Value Equity Portfolio
BlackRock Mid Cap Value Opportunities Fund
BlackRock Natural Resources Trust
BlackRock Pacific Fund
BlackRock Small Cap Core Equity Portfolio
BlackRock Small Cap Growth Equity Portfolio
BlackRock Small Cap Growth Fund II
BlackRock Small Cap Index Fund
BlackRock Small Cap Value Equity Portfolio*
BlackRock Small/Mid-Cap Growth Portfolio
BlackRock S&P 500 Index Fund
BlackRock Technology Fund
BlackRock U.S. Opportunities Portfolio
BlackRock Utilities and Telecommunications Fund
BlackRock Value Opportunities Fund
- --------------------------------------------------------------------------------
Fixed Income Funds
- --------------------------------------------------------------------------------
BlackRock Commodity Strategies Fund
BlackRock 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 Fund 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.
- --------------------------------------------------------------------------------
BLACKROCK GLOBAL FINANCIAL SERVICES FUND, INC. MARCH 31, 2008 31
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[LOGO]
PAPERLESS...
It's Fast, Convenient, & Timely!
To sign up today, go to www.blackrock.com/edelivery.
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. Past performance results shown in this report should not be
considered a representation of future performance. Investment 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.
Investment in foreign securities involves special risks including fluctuating
foreign exchange rates, foreign government regulations, differing degrees of
liquidity and the possibility of substantial volatility due to adverse
political, economic or other developments.
BlackRock Global Financial Services Fund, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
[BLACKROCK LOGO]
# MLGFSF-3/08
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 Global Financial Services Fund, Inc. and Global Financial
Services Master LLC
By: /s/ Donald C. Burke
-------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock Global Financial Services Fund, Inc. and Global
Financial Services Master LLC
Date: May 22, 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 Global Financial Services Fund, Inc. and Global
Financial Services Master LLC
Date: May 22, 2008
By: /s/ Neal J. Andrews
-------------------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Global Financial Services Fund, Inc. and Global
Financial Services Master LLC
Date: May 22, 2008