BBIF Money Fund. BBIF Treasury Fund. BIF Money Fund. BIF Treasury Fund. BlackRock Advantage Global Fund, Inc.

Transcription

1 BBIF Money Fund BBIF Treasury Fund BIF Money Fund BIF Treasury Fund BlackRock Advantage Global Fund, Inc. BlackRock Advantage U.S. Total Market Fund, Inc. BlackRock Allocation Target Shares BATS: Series A Portfolio BATS: Series C Portfolio BATS: Series E Portfolio BATS: Series M Portfolio BATS: Series P Portfolio BATS: Series S Portfolio BlackRock Asian Dragon Fund, Inc. BlackRock Balanced Capital Fund, Inc. BlackRock Basic Value Fund, Inc. BlackRock Bond Fund, Inc. BlackRock Total Return Fund BlackRock California Municipal Series Trust BlackRock California Municipal Opportunities Fund BlackRock Capital Appreciation Fund, Inc. BlackRock Emerging Markets Fund, Inc. BlackRock Equity Dividend Fund BlackRock EuroFund BlackRock Focus Growth Fund, Inc. BlackRock Financial Institutions Series Trust BlackRock Summit Cash Reserves Fund BlackRock Funds SM BlackRock Advantage Emerging Markets Fund BlackRock Advantage International Fund BlackRock Advantage Large Cap Growth Fund BlackRock Advantage Small Cap Core Fund BlackRock Advantage Small Cap Growth Fund BlackRock All-Cap Energy & Resources Portfolio BlackRock Alternative Capital Strategies Fund BlackRock Commodity Strategies Fund BlackRock Emerging Markets Dividend Fund BlackRock Emerging Markets Equity Strategies Fund BlackRock Energy & Resources Portfolio BlackRock Exchange Portfolio BlackRock Global Long/Short Credit Fund BlackRock Global Long/Short Equity Fund BlackRock Health Sciences Opportunities Portfolio BlackRock High Equity Income Fund BlackRock Impact Bond Fund BlackRock Impact U.S. Equity Fund BlackRock International Dividend Fund BlackRock Mid-Cap Growth Equity Portfolio BlackRock Money Market Portfolio BlackRock Multi-Manager Alternative Strategies Fund BlackRock Real Estate Securities Fund BlackRock Short Obligations Fund BlackRock Tactical Opportunities Fund BlackRock Technology Opportunities Fund BlackRock Total Emerging Markets Fund BlackRock Total Factor Fund ishares Developed Real Estate Index Fund ishares Edge MSCI Min Vol EAFE Index Fund ishares Edge MSCI Min Vol USA Index Fund ishares Edge MSCI Multifactor Intl Index Fund ishares Edge MSCI Multifactor USA Index Fund ishares Edge MSCI USA Momentum Factor Index Fund ishares Edge MSCI USA Quality Factor Index Fund ishares Edge MSCI USA Size Factor Index Fund ishares Edge MSCI USA Value Factor Index Fund ishares MSCI Asia ex Japan Index Fund ishares MSCI Developed World Index Fund ishares Russell Mid-Cap Index Fund ishares Russell Small/Mid-Cap Index Fund ishares Short-Term TIPS Bond Index Fund ishares Total U.S. Stock Market Index Fund BlackRock Funds II BlackRock 20/80 Target Allocation Fund BlackRock 40/60 Target Allocation Fund BlackRock 60/40 Target Allocation Fund BlackRock 80/20 Target Allocation Fund BlackRock Core Bond Portfolio BlackRock Credit Strategies Income Fund BlackRock Dynamic High Income Portfolio BlackRock Emerging Markets Bond Fund

2 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio BlackRock Emerging Markets Local Currency Bond Fund BlackRock Floating Rate Income Portfolio BlackRock Global Dividend Portfolio BlackRock GNMA Portfolio BlackRock High Yield Bond Portfolio BlackRock Inflation Protected Bond Portfolio BlackRock LifePath Smart Beta 2020 Fund BlackRock LifePath Smart Beta 2025 Fund BlackRock LifePath Smart Beta 2030 Fund BlackRock LifePath Smart Beta 2035 Fund BlackRock LifePath Smart Beta 2040 Fund BlackRock LifePath Smart Beta 2045 Fund BlackRock LifePath Smart Beta 2050 Fund BlackRock LifePath Smart Beta 2055 Fund BlackRock LifePath Smart Beta 2060 Fund BlackRock LifePath Smart Beta Retirement Fund BlackRock Low Duration Bond Portfolio BlackRock Managed Income Fund BlackRock Multi-Asset Income Portfolio BlackRock Strategic Income Opportunities Portfolio BlackRock U.S. Government Bond Portfolio BlackRock Funds III BlackRock Cash Funds: Institutional BlackRock Cash Funds: Treasury BlackRock CoreAlpha Bond Fund BlackRock LifePath Dynamic Retirement Fund BlackRock LifePath Dynamic 2020 Fund BlackRock LifePath Dynamic 2025 Fund BlackRock LifePath Dynamic 2030 Fund BlackRock LifePath Dynamic 2035 Fund BlackRock LifePath Dynamic 2040 Fund BlackRock LifePath Dynamic 2045 Fund BlackRock LifePath Dynamic 2050 Fund BlackRock LifePath Dynamic 2055 Fund BlackRock LifePath Dynamic 2060 Fund BlackRock LifePath Index Retirement Fund BlackRock LifePath Index 2020 Fund BlackRock LifePath Index 2025 Fund BlackRock LifePath Index 2030 Fund BlackRock LifePath Index 2035 Fund BlackRock LifePath Index 2040 Fund BlackRock LifePath Index 2045 Fund BlackRock LifePath Index 2050 Fund BlackRock LifePath Index 2055 Fund BlackRock LifePath Index 2060 Fund ishares MSCI Total International Index Fund ishares Russell 1000 Large-Cap Index Fund ishares S&P 500 Index Fund ishares U.S. Aggregate Bond Index Fund BlackRock Global Allocation Fund, Inc. BlackRock Index Funds, Inc. ishares MSCI EAFE International Index Fund ishares Russell 2000 Small-Cap Index Fund BlackRock Large Cap Series Funds, Inc. BlackRock Advantage Large Cap Core Fund BlackRock Advantage Large Cap Value Fund BlackRock Advantage Large Cap Value Retirement Fund BlackRock Event Driven Equity Fund BlackRock Large Cap Focus Growth Fund BlackRock Latin America Fund, Inc. BlackRock Liquidity Funds California Money Fund Federal Trust Fund FedFund MuniCash MuniFund New York Money Fund TempCash TempFund T-Fund Treasury Trust Fund BlackRock Long-Horizon Equity Fund BlackRock Mid Cap Dividend Series, Inc. BlackRock Mid Cap Dividend Fund BlackRock Multi-State Municipal Series Trust BlackRock New Jersey Municipal Bond Fund BlackRock New York Municipal Opportunities Fund BlackRock Pennsylvania Municipal Bond Fund BlackRock Municipal Bond Fund, Inc. BlackRock High Yield Municipal Fund BlackRock National Municipal Fund BlackRock Short-Term Municipal Fund BlackRock Municipal Series Trust BlackRock Strategic Municipal Opportunities Fund BlackRock Natural Resources Trust -2-

3 BlackRock Series Fund, Inc. BlackRock Advantage Large Cap Core Portfolio BlackRock Balanced Capital Portfolio BlackRock Capital Appreciation Portfolio BlackRock Global Allocation Portfolio BlackRock Government Money Market Portfolio BlackRock High Yield Portfolio BlackRock U.S. Government Bond Portfolio BlackRock Series, Inc. BlackRock International Fund BlackRock Strategic Global Bond Fund, Inc. BlackRock Variable Series Funds, Inc. BlackRock Advantage Large Cap Core V.I. Fund BlackRock Advantage Large Cap Value V.I. Fund BlackRock Advantage U.S. Total Market V.I. Fund BlackRock Basic Value V.I. Fund BlackRock Capital Appreciation V.I. Fund BlackRock Equity Dividend V.I. Fund BlackRock Global Allocation V.I. Fund BlackRock Global Opportunities V.I. Fund BlackRock Government Money Market V.I. Fund BlackRock High Yield V.I. Fund BlackRock International V.I. Fund BlackRock ishares Alternative Strategies V.I. Fund BlackRock ishares Dynamic Allocation V.I. Fund BlackRock Large Cap Focus Growth V.I. Fund BlackRock Managed Volatility V.I. Fund BlackRock S&P 500 Index V.I. Fund BlackRock Total Return V.I. Fund BlackRock U.S. Government Bond V.I. Fund FDP Series, Inc. FDP BlackRock Capital Appreciation Fund FDP BlackRock CoreAlpha Bond Fund FDP BlackRock Equity Dividend Fund FDP BlackRock International Fund Funds For Institutions Series BlackRock Premier Government Institutional Fund BlackRock Select Treasury Strategies Institutional Fund BlackRock Treasury Strategies Institutional Fund FFI Government Fund FFI Treasury Fund Managed Account Series Advantage Global SmallCap Fund BlackRock GA Disciplined Volatility Equity Fund BlackRock GA Enhanced Equity Fund BlackRock U.S. Mortgage Portfolio Mid Cap Dividend Fund Ready Assets Government Liquidity Fund Ready Assets U.S.A. Government Money Fund Ready Assets U.S. Treasury Money Fund Retirement Series Trust Retirement Reserves Money Fund (each, a Fund and collectively, the Funds ) Supplement dated April 5, 2018 to the Statement of Additional Information of each Fund Each Fund s Statement of Additional Information is amended as follows: The list in the section entitled Purchase of Shares Additional Payments by BlackRock C. Service Organizations Receiving Additional Payments, Miscellaneous Additional Payments by BlackRock C. Service Organizations Receiving Additional Payments, Investment Advisory Arrangements Additional Payments by BlackRock C. Service Organizations Receiving Additional Payments or Investment Adviser and Other Service Providers Additional Payments by BlackRock C. Service -3-

4 Organizations Receiving Additional Payments in Part II, as applicable, of each Fund s current Statement of Additional Information is deleted in its entirety and replaced with the following: ADP Broker-Dealer, Inc. Advisor Group, Inc. Allianz Life Financial Services, LLC Allianz Life Insurance Company of New York Allianz Life Insurance Company of North America American Enterprise Investment Services, Inc. American Fidelity Assurance Company American Fidelity Securities, Inc. American General Life Insurance Company American United Life Insurance Company Annuity Investors Life Insurance Company Aon Hewitt Ascensus Broker Dealer Services, Inc. Ascensus, Inc. AssetMark Trust Company AXA Advisors, LLC AXA Equitable Life Insurance Company Bank of America, N.A. Bank of New York Mellon, The Barclays Capital Inc. BB&T Retirement & Institutional Services Benefit Plans Administrative Services, Inc. Benefit Trust Company BlackRock Advisors, LLC BMO Capital Markets Corp. BNP Paribas BNP Paribas Investment Partners UK Limited BNY Mellon, N.A. BOKF, N.A. Broadridge Business Process Outsourcing, LLC Brown Brothers Harriman & Co. Capital One, N.A. Cetera Advisor Networks LLC Cetera Advisors LLC Cetera Financial Group Cetera Financial Specialists LLC Cetera Investment Services LLC Charles Schwab & Co., Inc. Chicago Mercantile Exchange Inc. Citco Securities, LLC CitiBank, National Association Citigroup Global Markets, Inc. Citizens Business Bank CME Shareholder Servicing LLC CMFG Life Insurance Company Comerica Bank Commonwealth Financial Network Companion Life Insurance Company Computershare Trust Company Conduent HR Services, LLC Credit Suisse Securities (USA) LLC CSC Trust Company of Delaware Delaware Life Insurance Company Delaware Life Insurance Company of New York Deutsche Bank AG Deutsche Bank Trust Company Americas Digital Retirement Solutions, Inc. Edward D. Jones & Co., L.P. Empire Fidelity Investments Life Insurance Company Federal Deposit Insurance Corporation Fidelity Brokerage Services LLC Fidelity Investments Institutional Operations Company, Inc. Fidelity Investments Life Insurance Company Fifth Third Securities, Inc. First Allied Securities, Inc. First Hawaiian Bank First Mercantile Trust Company First MetLife Investors Insurance Company First Republic Bank First Security Benefit Life Insurance and Annuity Company of New York First Symetra National Life Insurance Company of New York FIS Brokerage & Securities Services LLC Forethought Life Insurance Company FSC Securities Corporation Genworth Life and Annuity Insurance Company Genworth Life Insurance Company of New York Girard Securities, Inc. Global Atlantic Distributors, LLC Goldman Sachs & Co. Great-West Financial Retirement Plan Services, LLC Great-West Life & Annuity Insurance Company Great-West Life & Annuity Insurance Company of New York Guardian Insurance & Annuity Company, Inc., The GWFS Equities, Inc. Hartford Life and Annuity Insurance Company Hartford Life Insurance Company Hartford Securities Distribution Company, Inc. Hazeltree Fund Services, Inc. Hightower Securities, Inc. -4-

5 Hilltop Securities Inc. HSBC Bank USA, N.A. Huntington Investment Company, The Institutional Cash Distributors, LLC Integrity Life Insurance Company INVEST Financial Corporation Investment Centers of America, Inc. J.P. Morgan Securities LLC Jefferies LLC Jefferson National Life Insurance Company Jefferson National Life Insurance Company of New York John Hancock Life Insurance Company John Hancock Life Insurance Company of New York JPMorgan Chase Bank, N.A. Kestra Investment Services, LLC Ladenburg Thalmann Advisor Network LLC Lincoln Financial Advisors Corporation Lincoln Financial Distributors, Inc. Lincoln Financial Securities Corporation Lincoln Life & Annuity Company of New York Lincoln National Life Insurance Company Lincoln Retirement Services LLC LPL Financial LLC M&T Securities Inc. Manufacturers and Traders Trust Company Massachusetts Mutual Life Insurance Company Members Life Insurance Company Mercer HR Services, LLC Merrill Lynch, Pierce, Fenner & Smith Incorporated Metavante Corporation MetLife Insurance Company USA Metropolitan Life Insurance Company Mid Atlantic Capital Corporation Midland Life Insurance Company Minnesota Life Insurance Company Mizuho Securities USA Inc. MML Distributors, LLC MML Investors Services, LLC Morgan Stanley & Co. LLC Morgan Stanley Distribution, Inc. Morgan Stanley Smith Barney LLC MUFG Union Bank, National Association National Financial Services LLC National Integrity Life Insurance Company National Life Insurance Company National Planning Corporation National Planning Holdings, Inc. Nationwide Financial Services, Inc. Nationwide Fund Distributors LLC Nationwide Retirement Solutions NCB Federal Savings Bank New England Pension Plan Systems, LLC New York Life Insurance and Annuity Corporation Newport Retirement Services, Inc. NEX Treasury Limited Northbrook Bank & Trust Company Northwestern Mutual Investment Services, LLC NYLife Distributors LLC Oppenheimer & Co., Inc. Pacific Life & Annuity Company Pacific Life Insurance Company Pacific Select Distributors, LLC Park Avenue Securities LLC Pershing LLC PFPC Inc. PFS Investments Inc. Piper Jaffray & Co. PNC Bank, National Association PNC Capital Markets LLC PNC Investments LLC Primerica Shareholder Services, Inc. Principal Life Insurance Company Pruco Life Insurance Company Pruco Life Insurance Company of New Jersey Prudential Annuities Distributors, Inc. Prudential Insurance Company of America Raymond James & Associates, Inc. Raymond James Financial Services, Inc. RBC Capital Markets, LLC Regions Bank Reliance Trust Company Reliastar Life Insurance Company Reliastar Lire Life Insurance Company of New York RiverSource Distributors, Inc. RiverSource Life Insurance Co. of New York RiverSource Life Insurance Company Robert W Baird & Co Incorporated Royal Alliance Associates, Inc. SagePoint Financial, Inc. Sammons Retirement Solutions, Inc. Saturna Trust Company Security Benefit Life Insurance Company Security Financial Resources, Inc. Security Life of Denver Insurance Company SEI Private Trust Company SG Americas Securities, LLC SII Investments, Inc. Silicon Valley Bank Standard Insurance Company -5-

6 State Street Global Markets, LLC Stifel, Nicolaus & Company, Incorporated Summit Brokerage Services, Inc. SunTrust Bank SVB Asset Management Symetra Life Insurance Company Syntal Capital Partners, LLC T. Rowe Price Retirement Plan Services, Inc. TD Ameritrade Clearing, Inc. TD Ameritrade Trust Company TD Ameritrade, Inc. Teachers Insurance and Annuity Association of America TIAA-CREF Tuition Financing, Inc. Transamerica Advisors Life Insurance Company Transamerica Financial Life Insurance Company Treasury Brokerage Trust Company of America U.S. Bancorp Investments, Inc. U.S. Bank, National Association UBATCO & Co. UBS Financial Services, Inc. UBS Securities LLC UMB Bank, National Association United of Omaha Life Insurance Company United States Life Insurance Company in the City of New York, The VALIC Retirement Services Company Vanguard Group, Inc., The Vanguard Marketing Corporation Voya Financial Advisors, Inc. Voya Financial Partners, LLC Voya Institutional Plan Services, LLC Voya Insurance and Annuity Company Voya Investments Distributor, LLC Voya Retirement Insurance and Annuity Company Wells Fargo Advisors, LLC Wells Fargo Advisors Financial Network, LLC Wells Fargo Bank, N.A. Wells Fargo Clearing Services, LLC Wells Fargo Investments, LLC Wells Fargo Securities, LLC Wilmington Trust, National Association Woodbury Financial Services, Inc. ZB, National Association SAI-GLOBAL-0418SUP Shareholders should retain this Supplement for future reference. -6-

7 BlackRock Funds SM BlackRock Advantage Large Cap Growth Fund BlackRock Advantage Small Cap Growth Fund BlackRock Health Sciences Opportunities Portfolio BlackRock High Equity Income Fund BlackRock Mid-Cap Growth Equity Portfolio BlackRock Large Cap Series Funds, Inc. BlackRock Advantage Large Cap Core Fund BlackRock Advantage Large Cap Value Fund BlackRock Advantage Large Cap Value Retirement Fund BlackRock Large Cap Focus Growth Fund (each, a Fund and collectively, the Funds ) Supplement dated February 26, 2018 to the Statement of Additional Information ( SAI ) of each Fund Effective February 26, 2018, the securities lending agreement between each Fund and BlackRock Investment Management, LLC ( BIM ) is amended to permit the Fund to engage in a full lending program and to reflect new fee arrangements between the Fund and BIM. Accordingly, effective February 26, 2018, each Fund s SAI is amended as follows: The first through fourth paragraphs of the section of the SAI of BlackRock Advantage Large Cap Core Fund, BlackRock Advantage Large Cap Growth Fund, BlackRock Advantage Large Cap Value Fund, BlackRock Advantage Large Cap Value Retirement Fund and BlackRock Large Cap Focus Growth Fund and the first through fifth paragraphs of the section of the SAI of BlackRock Advantage Small Cap Growth Fund, BlackRock Health Sciences Opportunities Portfolio, BlackRock High Equity Income Fund and BlackRock Mid-Cap Growth Equity Portfolio entitled VII. Portfolio Transactions and Brokerage Securities Lending are deleted in their entirety and replaced with the following: The Fund conducts its securities lending pursuant to an exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund and to retain an affiliate of the Fund as lending agent. To the extent that the Fund engages in securities lending, BlackRock Investment Management, LLC ( BIM ), an affiliate of the Manager, acts as securities lending agent for the Fund, subject to the overall supervision of the Manager. BIM administers the lending program in accordance with guidelines approved by the [Trust s] [Corporation s] Board. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (and excludes collateral investment expenses as defined below), and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the collateral investment expenses ). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. In addition, in accordance with the exemptive order, the investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. Such shares also will not be subject to a sales load, distribution fee or service fee. If the private investment company s weekly liquid assets fall below 30% of its total assets, BIM, as managing member of the private investment company, is permitted at any time, if it determines it to be in the best interests of the private investment company, to impose a liquidity fee of up to 2% of the value of units withdrawn or impose a redemption gate that temporarily suspends the right of withdrawal out of the private investment company. In addition, if the private investment company s weekly liquid assets fall below 10% of its total assets at the end of any business day, the private investment company will impose a liquidity fee in the default amount of 1% of the amount withdrawn, generally effective as

8 of the next business day, unless BIM determines that a higher (not to exceed 2%) or lower fee level or not imposing a liquidity fee is in the best interests of the private investment company. The shares of the private investment company purchased by the Fund would be subject to any such liquidity fee or redemption gate imposed. Pursuant to the current securities lending agreement: (i) the Fund retains 71.5% of securities lending income (which excludes collateral investment expenses); and (ii) this amount can never be less than 65% of the sum of securities lending income plus collateral investment expenses. Under the securities lending program, the Fund is categorized into a specific asset class. The determination of the Fund s asset class category (fixed-income, domestic equity, international equity or fund of funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to between the [Trust] [Corporation] and BIM. In addition, commencing the business day following the date that the aggregate securities lending income earned across certain funds in the Equity-Liquidity Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities lending income as follows: (i) 75% of securities lending income; and (ii) this amount can never be less than 65% of the sum of securities lending income plus collateral investment expenses. Prior to February 26, 2018, the Fund had a different securities lending arrangement. Shareholders should retain this Supplement for future reference. SAI-9FUNDS-0218SUP 2

9 BBIF Money Fund BBIF Treasury Fund BIF Money Fund BIF Treasury Fund BlackRock Advantage Global Fund, Inc. BlackRock Advantage U.S. Total Market Fund, Inc. BlackRock Allocation Target Shares BATS: Series A Portfolio BATS: Series C Portfolio BATS: Series E Portfolio BATS: Series M Portfolio BATS: Series P Portfolio BATS: Series S Portfolio BlackRock Asian Dragon Fund, Inc. BlackRock Balanced Capital Fund, Inc. BlackRock Basic Value Fund, Inc. BlackRock Bond Fund, Inc. BlackRock Total Return Fund BlackRock California Municipal Series Trust BlackRock California Municipal Opportunities Fund BlackRock Capital Appreciation Fund, Inc. BlackRock Emerging Markets Fund, Inc. BlackRock Equity Dividend Fund BlackRock EuroFund BlackRock Financial Institutions Series Trust BlackRock Summit Cash Reserves Fund BlackRock Funds SM BlackRock Advantage Emerging Markets Fund BlackRock Advantage International Fund BlackRock Advantage Large Cap Growth Fund BlackRock Advantage Small Cap Core Fund BlackRock Advantage Small Cap Growth Fund BlackRock All-Cap Energy & Resources Portfolio BlackRock Alternative Capital Strategies Fund BlackRock Commodity Strategies Fund BlackRock Emerging Markets Dividend Fund BlackRock Emerging Markets Equity Strategies Fund BlackRock Energy & Resources Portfolio BlackRock Exchange Portfolio BlackRock Global Long/Short Credit Fund BlackRock Global Long/Short Equity Fund BlackRock Health Sciences Opportunities Portfolio BlackRock High Equity Income Fund BlackRock Impact Bond Fund BlackRock Impact U.S. Equity Fund BlackRock International Dividend Fund BlackRock Mid-Cap Growth Equity Portfolio BlackRock Money Market Portfolio BlackRock Real Estate Securities Fund BlackRock Short Obligations Fund BlackRock Tactical Opportunities Fund BlackRock Total Emerging Markets Fund BlackRock Total Factor Fund ishares Developed Real Estate Index Fund ishares Edge MSCI Min Vol EAFE Index Fund ishares Edge MSCI Min Vol USA Index Fund ishares Edge MSCI Multifactor Intl Index Fund ishares Edge MSCI Multifactor USA Index Fund ishares Edge MSCI USA Momentum Factor Index Fund ishares Edge MSCI USA Quality Factor Index Fund ishares Edge MSCI USA Size Factor Index Fund ishares Edge MSCI USA Value Factor Index Fund ishares MSCI Asia ex Japan Index Fund ishares MSCI Developed World Index Fund ishares Russell Mid-Cap Index Fund ishares Russell Small/Mid-Cap Index Fund ishares Short-Term TIPS Bond Index Fund ishares Total U.S. Stock Market Index Fund BlackRock Funds II BlackRock 20/80 Target Allocation Fund BlackRock 40/60 Target Allocation Fund BlackRock 60/40 Target Allocation Fund BlackRock 80/20 Target Allocation Fund BlackRock Core Bond Portfolio BlackRock Credit Strategies Income Fund BlackRock Dynamic High Income Portfolio BlackRock Emerging Markets Bond Fund BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

10 BlackRock Emerging Markets Local Currency Bond Fund BlackRock Global Dividend Portfolio BlackRock GNMA Portfolio BlackRock High Yield Bond Portfolio BlackRock Inflation Protected Bond Portfolio BlackRock LifePath Smart Beta 2020 Fund BlackRock LifePath Smart Beta 2025 Fund BlackRock LifePath Smart Beta 2030 Fund BlackRock LifePath Smart Beta 2035 Fund BlackRock LifePath Smart Beta 2040 Fund BlackRock LifePath Smart Beta 2045 Fund BlackRock LifePath Smart Beta 2050 Fund BlackRock LifePath Smart Beta 2055 Fund BlackRock LifePath Smart Beta 2060 Fund BlackRock LifePath Smart Beta Retirement Fund BlackRock Low Duration Bond Portfolio BlackRock Managed Income Fund BlackRock Multi-Asset Income Portfolio BlackRock Strategic Income Opportunities Portfolio BlackRock U.S. Government Bond Portfolio BlackRock Funds III BlackRock Cash Funds: Institutional BlackRock Cash Funds: Treasury BlackRock CoreAlpha Bond Fund BlackRock LifePath Dynamic Retirement Fund BlackRock LifePath Dynamic 2020 Fund BlackRock LifePath Dynamic 2025 Fund BlackRock LifePath Dynamic 2030 Fund BlackRock LifePath Dynamic 2035 Fund BlackRock LifePath Dynamic 2040 Fund BlackRock LifePath Dynamic 2045 Fund BlackRock LifePath Dynamic 2050 Fund BlackRock LifePath Dynamic 2055 Fund BlackRock LifePath Dynamic 2060 Fund BlackRock LifePath Index Retirement Fund BlackRock LifePath Index 2020 Fund BlackRock LifePath Index 2025 Fund BlackRock LifePath Index 2030 Fund BlackRock LifePath Index 2035 Fund BlackRock LifePath Index 2040 Fund BlackRock LifePath Index 2045 Fund BlackRock LifePath Index 2050 Fund BlackRock LifePath Index 2055 Fund BlackRock LifePath Index 2060 Fund ishares MSCI Total International Index Fund ishares Russell 1000 Large-Cap Index Fund ishares S&P 500 Index Fund ishares U.S. Aggregate Bond Index Fund BlackRock Global Allocation Fund, Inc. BlackRock Index Funds, Inc. ishares MSCI EAFE International Index Fund ishares Russell 2000 Small-Cap Index Fund BlackRock Large Cap Series Funds, Inc. BlackRock Advantage Large Cap Core Fund BlackRock Advantage Large Cap Value Fund BlackRock Advantage Large Cap Value Retirement Fund BlackRock Event Driven Equity Fund BlackRock Large Cap Focus Growth Fund BlackRock Latin America Fund, Inc. BlackRock Liquidity Funds California Money Fund Federal Trust Fund FedFund MuniCash MuniFund New York Money Fund TempCash TempFund T-Fund Treasury Trust Fund BlackRock Long-Horizon Equity Fund BlackRock Mid Cap Dividend Series, Inc. BlackRock Mid Cap Dividend Fund BlackRock Multi-State Municipal Series Trust BlackRock New Jersey Municipal Bond Fund BlackRock New York Municipal Opportunities Fund BlackRock Pennsylvania Municipal Bond Fund BlackRock Municipal Bond Fund, Inc. BlackRock High Yield Municipal Fund BlackRock National Municipal Fund BlackRock Short-Term Municipal Fund BlackRock Municipal Series Trust BlackRock Strategic Municipal Opportunities Fund BlackRock Natural Resources Trust -2-

11 BlackRock Series Fund, Inc. BlackRock Advantage Large Cap Core Portfolio BlackRock Balanced Capital Portfolio BlackRock Capital Appreciation Portfolio BlackRock Global Allocation Portfolio BlackRock Government Money Market Portfolio BlackRock High Yield Portfolio BlackRock Total Return Portfolio BlackRock U.S. Government Bond Portfolio BlackRock Series, Inc. BlackRock International Fund BlackRock Small Cap Growth Fund II BlackRock Strategic Global Bond Fund, Inc. BlackRock Variable Series Funds, Inc. BlackRock Advantage Large Cap Core V.I. Fund BlackRock Advantage Large Cap Value V.I. Fund BlackRock Advantage U.S. Total Market V.I. Fund BlackRock Basic Value V.I. Fund BlackRock Capital Appreciation V.I. Fund BlackRock Equity Dividend V.I. Fund BlackRock Global Allocation V.I. Fund BlackRock Global Opportunities V.I. Fund BlackRock Government Money Market V.I. Fund BlackRock High Yield V.I. Fund BlackRock International V.I. Fund BlackRock ishares Alternative Strategies V.I. Fund BlackRock ishares Dynamic Allocation V.I. Fund BlackRock ishares Dynamic Fixed Income V.I. Fund BlackRock ishares Equity Appreciation V.I. Fund BlackRock Large Cap Focus Growth V.I. Fund BlackRock Managed Volatility V.I. Fund BlackRock S&P 500 Index V.I. Fund BlackRock Total Return V.I. Fund BlackRock U.S. Government Bond V.I. Fund FDP Series, Inc. FDP BlackRock Capital Appreciation Fund FDP BlackRock CoreAlpha Bond Fund FDP BlackRock Equity Dividend Fund FDP BlackRock International Fund Funds For Institutions Series BlackRock Premier Government Institutional Fund BlackRock Select Treasury Strategies Institutional Fund BlackRock Treasury Strategies Institutional Fund FFI Government Fund FFI Treasury Fund Managed Account Series BlackRock GA Disciplined Volatility Equity Fund BlackRock GA Enhanced Equity Fund BlackRock U.S. Mortgage Portfolio Ready Assets Government Liquidity Fund Ready Assets U.S.A. Government Money Fund Ready Assets U.S. Treasury Money Fund Retirement Series Trust Retirement Reserves Money Fund (each, a Fund and collectively, the Funds ) Supplement dated January 4, 2018 to the Statement of Additional Information of each Fund Each Fund s Statement of Additional Information is amended as follows: The list in the section entitled Purchase of Shares Additional Payments by BlackRock C. Service Organizations Receiving Additional Payments, Miscellaneous Additional Payments by BlackRock C. Service Organizations Receiving Additional Payments, Investment Advisory Arrangements Additional Payments by BlackRock C. Service Organizations Receiving Additional Payments or Investment Adviser and Other Service Providers Additional Payments by BlackRock C. Service Organizations Receiving Additional Payments in Part II, as applicable, of each Fund s current Statement of Additional Information is deleted in its entirety and replaced with the following: -3-

12 Access Control Advantage ADP Broker-Dealer, Inc. Advisor Group, Inc. Allianz Life Financial Services, LLC Allianz Life Insurance Company of New York Allianz Life Insurance Company of North America American Enterprise Investment Services, Inc. American Fidelity Assurance Company American Fidelity Securities, Inc. American General Life Insurance Company American United Life Insurance Company Annuity Investors Life Insurance Company Aon Hewitt Ascensus Broker Dealer Services, Inc. Ascensus, Inc. AssetMark Trust Company AXA Advisors, LLC AXA Equitable Life Insurance Company Bank of America, N.A. Bank of New York Mellon, The Barclays Capital Inc. BB&T Retirement & Institutional Services Benefit Plans Administrative Services, Inc. Benefit Trust Company BlackRock Advisors, LLC BMO Capital Markets Corp. BMO Harris Bank BNP Paribas Investment Partners UK Limited BNY Mellon, N.A. BOKF, N.A. Broadridge Business Process Outsourcing, LLC Brown Brothers Harriman & Co. Capital One, N.A. Cetera Advisor Networks LLC Cetera Advisors LLC Cetera Financial Group Cetera Financial Specialists LLC Cetera Investment Services LLC Charles Schwab & Co., Inc. Chicago Mercantile Exchange Inc. Citco Securities, LLC CitiBank, National Association Citigroup Global Markets, Inc. Citizens Business Bank CME Shareholder Servicing LLC CMFG Life Insurance Company Comerica Bank Commonwealth Financial Network Companion Life Insurance Company Computershare Trust Company Conduent HR Services, LLC Credit Suisse Securities (USA) LLC CSC Trust Company of Delaware Delaware Life Insurance Company Delaware Life Insurance Company of New York Deutsche Bank AG Deutsche Bank Trust Company Americas Digital Retirement Solutions, Inc. Edward D. Jones & Co., L.P. Empire Fidelity Investments Life Insurance Company Federal Deposit Insurance Corporation Fidelity Brokerage Services LLC Fidelity Investments Institutional Operations Company, Inc. Fidelity Investments Life Insurance Company Fifth Third Securities, Inc. First Allied Securities, Inc. First Clearing, LLC First Hawaiian Bank First Mercantile Trust Company First MetLife Investors Insurance Company First Republic Bank First Security Benefit Life Insurance and Annuity Company of New York First Symetra National Life Insurance Company of New York FIS Brokerage & Securities Services LLC Forethought Life Insurance Company FSC Securities Corporation Genworth Life and Annuity Insurance Company Genworth Life Insurance Company of New York Girard Securities, Inc. Global Atlantic Distributors, LLC Goldman Sachs & Co. Great-West Financial Retirement Plan Services, LLC Great-West Life & Annuity Insurance Company Great-West Life & Annuity Insurance Company of New York Guardian Insurance & Annuity Company, Inc., The GWFS Equities, Inc. Hartford Life and Annuity Insurance Company Hartford Life Insurance Company Hartford Securities Distribution Company, Inc. Hazeltree Fund Services, Inc. Hightower Securities, Inc. Hilltop Securities Inc. HSBC Bank USA, N.A. Huntington Investment Company, The Institutional Cash Distributors, LLC Integrity Life Insurance Company INVEST Financial Corporation Investment Centers of America, Inc. J.P. Morgan Securities LLC -4-

13 Jefferies LLC Jefferson National Life Insurance Company Jefferson National Life Insurance Company of New York John Hancock Life Insurance Company John Hancock Life Insurance Company of New York JPMorgan Chase Bank, N.A. Kestra Investment Services, LLC Ladenburg Thalmann Advisor Network LLC Lincoln Financial Advisors Corporation Lincoln Financial Distributors, Inc. Lincoln Financial Securities Corporation Lincoln Life & Annuity Company of New York Lincoln National Life Insurance Company Lincoln Retirement Services LLC LPL Financial LLC M&T Securities Inc. Manufacturers and Traders Trust Company Massachusetts Mutual Life Insurance Company Members Life Insurance Company Mercer HR Services, LLC Merrill Lynch, Pierce, Fenner & Smith Incorporated Metavante Corporation MetLife Insurance Company USA Metropolitan Life Insurance Company Mid Atlantic Capital Corporation Midland Life Insurance Company Minnesota Life Insurance Company Mizuho Securities USA Inc. MML Distributors, LLC MML Investors Services, LLC Morgan Stanley & Co. LLC Morgan Stanley Smith Barney LLC MUFG Union Bank, National Association National Financial Services LLC National Integrity Life Insurance Company National Life Insurance Company National Planning Corporation National Planning Holdings, Inc. Nationwide Financial Services, Inc. Nationwide Fund Distributors LLC Nationwide Retirement Solutions NCB Federal Savings Bank New England Pension Plan Systems, LLC New York Life Insurance and Annuity Corporation Newport Retirement Services, Inc. NEX Treasury Limited Northbrook Bank & Trust Company Northwestern Mutual Investment Services, LLC NYLife Distributors LLC Oppenheimer & Co., Inc. Pacific Life & Annuity Company Pacific Life Insurance Company Pacific Select Distributors, LLC Park Avenue Securities LLC Pershing LLC PFPC Inc. PFS Investments Inc. Piper Jaffray & Co. PNC Bank, National Association PNC Capital Markets LLC PNC Investments LLC Primerica Shareholder Services, Inc. Principal Life Insurance Company Pruco Life Insurance Company Pruco Life Insurance Company of New Jersey Prudential Annuities Distributors, Inc. Prudential Insurance Company of America Raymond James & Associates, Inc. Raymond James Financial Services, Inc. RBC Capital Markets, LLC Regions Bank Reliance Trust Company Reliastar Life Insurance Company Reliastar Lire Life Insurance Company of New York RiverSource Distributors, Inc. RiverSource Life Insurance Co. of New York RiverSource Life Insurance Company Robert W Baird & Co Incorporated Royal Alliance Associates, Inc. SagePoint Financial, Inc. Sammons Retirement Solutions, Inc. Saturna Trust Company Security Benefit Life Insurance Company Security Financial Resources, Inc. Security Life of Denver Insurance Company SEI Private Trust Company SG Americas Securities, LLC SII Investments, Inc. Silicon Valley Bank Standard Insurance Company State Street Global Markets, LLC Stifel, Nicolaus & Company, Incorporated Summit Brokerage Services, Inc. SunTrust Bank SVB Asset Management Symetra Life Insurance Company Syntal Capital Partners, LLC T. Rowe Price Retirement Plan Services, Inc. TD Ameritrade Clearing, Inc. TD Ameritrade Trust Company TD Ameritrade, Inc. Teachers Insurance and Annuity Association of America -5-

14 TIAA-CREF Tuition Financing, Inc. Transamerica Advisors Life Insurance Company Transamerica Financial Life Insurance Company Treasury Brokerage Trust Company of America U.S. Bancorp Investments, Inc. U.S. Bank, National Association UBATCO & Co. UBS AG UBS Financial Services, Inc. UBS Securities LLC UMB Bank, National Association United of Omaha Life Insurance Company United States Life Insurance Company in the City of New York, The VALIC Retirement Services Company Vanguard Group, Inc., The Vanguard Marketing Corporation Voya Financial Advisors, Inc. Voya Financial Partners, LLC Voya Institutional Plan Services, LLC Voya Insurance and Annuity Company Voya Investments Distributor, LLC Voya Retirement Insurance and Annuity Company Wells Fargo Advisors, LLC Wells Fargo Bank, N.A. Wells Fargo Investments, LLC Wells Fargo Securities, LLC Wilmington Trust, National Association Woodbury Financial Services, Inc. ZB, National Association SAI-GLOBAL-0118SUP Shareholders should retain this Supplement for future reference. -6-

15 STATEMENT OF ADDITIONAL INFORMATION BLACKROCK LARGE CAP SERIES FUNDS, INC. BLACKROCK LARGE CAP FOCUS GROWTH FUND 100 Bellevue Parkway, Wilmington, DE Phone No. (800) This Statement of Additional Information of BlackRock Large Cap Focus Growth Fund (formerly known as BlackRock Large Cap Growth Fund) (the Fund ), a series of BlackRock Large Cap Series Funds, Inc. (the Corporation ), is not a prospectus and should be read in conjunction with the Prospectuses of the Fund, each dated October 27, 2017, as they may be amended or supplemented from time to time (each a Prospectus and together the Prospectuses ), which have been filed with the Securities and Exchange Commission (the Commission or the SEC ) and can be obtained, without charge, by calling (800) or by writing to the Fund at the above address. The Prospectuses are incorporated by reference into this Statement of Additional Information, and Part I of this Statement of Additional Information and the portions of Part II of this Statement of Additional Information that relate to the Fund have been incorporated by reference into the Prospectuses. The portions of Part II of this Statement of Additional Information that do not relate to the Fund do not form a part of the Fund s Statement of Additional Information, have not been incorporated by reference into the Fund s Prospectuses and should not be relied upon by investors in the Fund. The audited financial statements of the Fund and the corresponding master portfolio of Master Large Cap Series LLC are incorporated into this Statement of Additional Information by reference to the Corporation s 2017 Annual Report to Shareholders for the fiscal year ended June 30, 2017 (the Annual Report ). You may request a copy of the Annual Report at no charge by calling (800) between 8:00 a.m. and 6:00 p.m. Eastern time, on any business day. References to the Investment Company Act of 1940, as amended (the Investment Company Act ), or other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or modifications by the Commission, Commission staff or other authority with appropriate jurisdiction, including court interpretations, and exemptive, no-action or other relief or permission from the Commission, Commission staff or other authority. Class Investor A Shares Investor B Shares Investor C Shares Institutional Shares Class R Shares Service Shares MDLHX MBLHX MCLHX MALHX MRLHX MSLHX BLACKROCK ADVISORS, LLC MANAGER BLACKROCK INVESTMENTS, LLC DISTRIBUTOR The date of this Statement of Additional Information is October 27, Effective on or about the close of business on December 27, 2017, all of the issued and outstanding Investor B Shares of the Fund will be converted into Investor A Shares of the Fund.

16 TABLE OF CONTENTS Page PART I Investment Objective and Policies... I-2 Investment Restrictions... I-5 Information on Directors and Officers... I-7 Management, Advisory and Other Service Arrangements... I-16 Information on Sales Charges and Distribution Related Expenses... I-21 Computation of Offering Price Per Share... I-23 Portfolio Transactions and Brokerage... I-23 Additional Information... I-25 Financial Statements... I-26 PART II Investment Risks and Considerations... II-1 Management and Other Service Arrangements... II-62 Selective Disclosure of Portfolio Holdings... II-65 Purchase of Shares... II-77 Redemption of Shares... II-92 Shareholder Services... II-95 Pricing of Shares... II-99 Portfolio Transactions and Brokerage... II-102 Dividends and Taxes... II-106 Performance Data... II-113 Proxy Voting Policies and Procedures... II-114 General Information... II-115 Appendix A Description of Bond Ratings... A-1 Appendix B Proxy Voting Policies... B-1

17 PART I: INFORMATION ABOUT BLACKROCK LARGE CAP FOCUS GROWTH FUND Part I of this Statement of Additional Information ( SAI ) sets forth information about BlackRock Large Cap Focus Growth Fund (formerly known as BlackRock Large Cap Growth Fund) (the Fund ), a series of BlackRock Large Cap Series Funds, Inc. (the Corporation ). This SAI includes information about the Corporation s Board of Directors, the advisory and management services provided to and the management fees paid by the Fund and information about other fees applicable to and services provided to the Fund. This Part I of this SAI should be read in conjunction with the Prospectuses of the Fund and those portions of Part II of this SAI that pertain to the Fund. On June 29, 2017, the Board of Directors of each of the Corporation and the Master LLC (as defined below) approved a change of the fiscal year of the Fund and the Master Portfolio (as defined below), respectively, from September 30 to June 30. I. Investment Objective and Policies The investment objective of the Fund is to seek long-term capital growth. This is a fundamental policy of the Fund. To change a fundamental policy requires the approval of a majority of the Fund s shareholders, as defined in the Investment Company Act of 1940, as amended (the Investment Company Act ). The Fund is a feeder fund that invests all of its assets in a corresponding master portfolio (the Master Portfolio ) of Master Large Cap Series LLC (the Master LLC ) that has the same investment objective and strategies as the Fund. The Fund invests all of its assets in Master Large Cap Focus Growth Portfolio (the Master Portfolio ). All investments for the Fund will be made at the Master LLC level. This structure is sometimes called a master/feeder structure. The Fund s investment results will correspond directly to the investment results of the Master Portfolio in which it invests. For simplicity, however, this SAI, like the Prospectuses, uses the term Fund, as applicable, to include the underlying Master Portfolio in which the Fund invests. Reference is made to the discussion under Details About the Fund How the Fund Invests and Details About the Fund Investment Risks, as applicable, in the Prospectuses for information with respect to the Fund s and Master Portfolio s investment objective and policies. The Fund is subject to Rule 35d-1 under the Investment Company Act and will not change its investment policies required by that Rule without giving shareholders 60 days prior written notice. In implementing the Fund s investment strategy, from time to time, BlackRock Advisors, LLC ( BlackRock or the Manager ), the Master Portfolio s investment manager, may consider and employ techniques and strategies designed to minimize and defer the U.S. federal income taxes which may be incurred by shareholders in connection with their investment in the Fund. Set forth below is a listing of some of the types of investments and investment strategies that the Fund may use, and the risks and considerations associated with those investments and investment strategies. Please see Part II of this SAI for further information on these investments and investment strategies. Only information that is clearly identified as applicable to the Fund is considered to form a part of the Fund s SAI. 144A Securities Asset-Backed Securities Asset-Based Securities Precious Metal-Related Securities Bank Loans Borrowing and Leverage Cash Flows; Expenses Cash Management X X X X X I-2

18 Collateralized Debt Obligations Collateralized Bond Obligations Collateralized Loan Obligations Commercial Paper Commodity-Linked Derivative Instruments and Hybrid Instruments Qualifying Hybrid Instruments Hybrid Instruments Without Principal Protection Limitations on Leverage Counterparty Risk Convertible Securities Cyber Security Issues Debt Securities Depositary Receipts (ADRs, EDRs and GDRs) Derivatives Hedging Indexed and Inverse Securities Swap Agreements Credit Default Swap Agreements and Similar Instruments Contracts for Difference Credit Linked Securities Interest Rate Transactions and Swaptions Total Return Swap Agreements Types of Options Options on Securities and Securities Indices Call Options Put Options Options on Government National Mortgage Association ( GNMA ) Certificates Risks Associated with Options Futures Risks Associated with Futures Foreign Exchange Transactions Forward Foreign Exchange Transactions Currency Futures Currency Options Currency Swaps Limitations on Currency Transactions Risk Factors in Hedging Foreign Currency Risk Factors in Derivatives Credit Risk Currency Risk Leverage Risk Liquidity Risk Correlation Risk Index Risk Additional Risk Factors of OTC Transactions; Limitations on the Use of OTC Derivatives X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X I-3

19 Distressed Securities Dollar Rolls Equity Securities Exchange Traded Notes ( ETNs ) Foreign Investment Risks Foreign Market Risk Foreign Economy Risk Currency Risk and Exchange Risk Governmental Supervision and Regulation/Accounting Standards Certain Risks of Holding Fund Assets Outside the United States Publicly Available Information Settlement Risk Funding Agreements Guarantees Illiquid or Restricted Securities Inflation-Indexed Bonds Inflation Risk Information Concerning the Indexes S&P 500 Index ( S&P 500 ) Russell Indexes MSCI Indexes FTSE ( Financial Times Stock Exchange ) Indexes Initial Public Offering ( IPO ) Risk Interfund Lending Program Borrowing, to the extent permitted by the Fund s investment policies and restrictions Lending, to the extent permitted by the Fund s investment policies and restrictions Investment Grade Debt Obligations Investment in Emerging Markets Brady Bonds Investment in Other Investment Companies Exchange Traded Funds Junk Bonds Lease Obligations Liquidity Management Master Limited Partnerships Merger Transaction Risk Mezzanine Investments Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks Mortgage-Related Securities Mortgage-Backed Securities Collateralized Mortgage Obligations ( CMOs ) Adjustable Rate Mortgage Securities CMO Residuals Stripped Mortgage-Backed Securities Tiered Index Bonds X X X X X X X X X X X X X X X X X X X X X X I-4

20 TBA Commitments Municipal Bonds Risk Factors and Special Considerations Relating to Municipal Bonds General Obligation Bonds Revenue Bonds PABs Tender Option Bonds Participation Notes Pay-in-Kind Bonds Portfolio Turnover Rates X Preferred Stock X Real Estate Related Securities X Real Estate Investment Trusts ( REITs ) X Repurchase Agreements and Purchase and Sale Contracts X Reverse Repurchase Agreements X Rights Offerings and Warrants to Purchase X Risks of Investing in China Securities Lending X Securities of Smaller or Emerging Growth Companies X Short Sales See note 1 below. Sovereign Debt Standby Commitment Agreements X Stripped Securities Structured Notes Supranational Entities Trust Preferred Securities U.S. Government Obligations X U.S. Treasury Obligations X Utility Industries X When-Issued Securities, Delayed Delivery Securities and Forward Commitments X Yields and Ratings Zero Coupon Securities 1 The Fund may only make short sales against the box. Regulation Regarding Derivatives. The Commodity Futures Trading Commission ( CFTC ) subjects advisers to registered investment companies to regulation by the CFTC if the fund that is advised by the investment adviser either (i) invests, directly or indirectly, more than a prescribed level of its liquidation value in CFTC-regulated futures, options and swaps ( CFTC Derivatives ), or (ii) markets itself as providing investment exposure to such instruments. To the extent the Fund uses CFTC Derivatives, it intends to do so below such prescribed levels and will not market itself as a commodity pool or a vehicle for trading such instruments. Accordingly, BlackRock has claimed an exclusion from the definition of the term commodity pool operator under the Commodity Exchange Act ( CEA ) pursuant to Rule 4.5 under the CEA. BlackRock is not, therefore, subject to registration or regulation as a commodity pool operator under the CEA in respect of the Fund. II. Investment Restrictions The Corporation, on behalf of the Fund, has adopted restrictions and policies relating to investment of the Fund s assets and its activities. Certain of the restrictions are fundamental policies of the Fund and may not be I-5