BlackRock Mid Cap Value Opportunities
Funds (the Fund) investment objective is to seek capital appreciation and, secondarily, income, by investing in securities, primarily equity securities that Fund management believes are undervalued and therefore represent an
investment value.
The views expressed reflect the
opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
For Fund compliance purposes, the Funds sector classifications refer to any one or more of the sector
sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications
for reporting ease.
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.
Figures shown in the performance table on the previous page assume reinvestment of all dividends and capital gain distributions, if any, at net asset value (NAV) 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. The Funds investment advisor waived a portion of its investment advisory fee. Without such waiver, the Funds performance would have been lower.
Shareholders of the Fund may incur the following charges:
(a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, and other Fund expenses. The expense example shown on the previous page
(which is based on a hypothetical investment of $1,000 invested on August 1, 2012 and held through January 31, 2013) 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 expense example 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 expense example also provides information about hypothetical account values and hypothetical
expenses based on the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in 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 expense example are
intended to highlight shareholders ongoing costs only and do not reflect any transactional expenses, such as sales charges, if any. Therefore, the hypothetical example 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.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities
(Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair
value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level
input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned
level within the disclosure hierarchy. In accordance with the Funds policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization
of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Funds policy regarding
valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
|
|
|
Schedule of Investments (concluded)
|
|
|
The following table summarizes the Funds investments categorized in the disclosure hierarchy as of January 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments
1
|
|
$
|
458,926,842
|
|
|
|
|
|
|
|
|
|
|
$
|
458,926,842
|
|
Short-Term Securities
|
|
|
11,116,978
|
|
|
$
|
43,639,391
|
|
|
|
|
|
|
|
54,756,369
|
|
|
|
|
|
|
Total
|
|
$
|
470,043,820
|
|
|
$
|
43,639,391
|
|
|
|
|
|
|
$
|
513,683,211
|
|
|
|
|
|
|
|
1
|
|
See above Schedule of Investments for values in each industry.
|
Certain of the Funds assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of
January 31, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
12,142
|
|
|
|
|
|
|
|
|
|
|
$
|
12,142
|
|
Foreign currency at value
|
|
|
979
|
|
|
|
|
|
|
|
|
|
|
|
979
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateral on securities loaned at value
|
|
|
|
|
|
$
|
(43,639,391
|
)
|
|
|
|
|
|
|
(43,639,391
|
)
|
|
|
|
|
|
Total
|
|
$
|
13,121
|
|
|
$
|
(43,639,391
|
)
|
|
|
|
|
|
$
|
(43,626,270
|
)
|
|
|
|
|
|
There were no transfers between levels during the year ended January 31, 2013.
See Notes to
Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
|
|
|
|
Statement of Assets and Liabilities
|
|
|
|
|
|
|
|
January 31, 2013
|
|
|
|
|
|
|
|
|
Assets
|
|
Investments at value unaffiliated (including securities loaned at value of $42,600,790) (cost $369,803,112)
|
|
$
|
458,926,842
|
|
Investments at value affiliated (cost $54,756,369)
|
|
|
54,756,369
|
|
Cash
|
|
|
12,142
|
|
Investments sold receivable
|
|
|
10,880,045
|
|
Capital shares sold receivable
|
|
|
882,924
|
|
Dividends receivable
|
|
|
130,806
|
|
Securities lending income receivable affiliated
|
|
|
13,653
|
|
Foreign currency at value (cost $984)
|
|
|
979
|
|
Prepaid expenses
|
|
|
2,465
|
|
|
|
|
|
|
Total assets
|
|
|
525,606,225
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Collateral on securities loaned at value
|
|
|
43,639,391
|
|
Investments purchased payable
|
|
|
6,794,537
|
|
Capital shares redeemed payable
|
|
|
1,739,157
|
|
Investment advisory fees payable
|
|
|
252,683
|
|
Service and distribution fees payable
|
|
|
120,348
|
|
Officers and Directors fees payable
|
|
|
1,352
|
|
Other affiliates payable
|
|
|
1,010
|
|
Other accrued expenses payable
|
|
|
352,153
|
|
|
|
|
|
|
Total liabilities
|
|
|
52,900,631
|
|
|
|
|
|
|
Net Assets
|
|
$
|
472,705,594
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Consist of
|
|
|
|
|
Paid-in capital
|
|
$
|
394,445,794
|
|
Undistributed net investment income
|
|
|
341,115
|
|
Accumulated net realized loss
|
|
|
(11,205,040
|
)
|
Net unrealized appreciation/depreciation
|
|
|
89,123,725
|
|
|
|
|
|
|
Net Assets
|
|
$
|
472,705,594
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value
|
|
|
|
|
Institutional Based on net assets of $133,748,324 and 6,545,609 shares outstanding, 20 million shares authorized, $0.10 par
value
|
|
$
|
20.43
|
|
|
|
|
|
|
Investor A Based on net assets of $215,469,452 and 10,806,792 shares outstanding, 40 million shares authorized, $0.10 par
value
|
|
$
|
19.94
|
|
|
|
|
|
|
Investor B Based on net assets of $3,309,720 and 182,279 shares outstanding, 40 million shares authorized, $0.10 par
value
|
|
$
|
18.16
|
|
|
|
|
|
|
Investor C Based on net assets of $61,755,960 and 3,469,447 shares outstanding, 40 million shares authorized, $0.10 par
value
|
|
$
|
17.80
|
|
|
|
|
|
|
Class R Based on net assets of $58,422,138 and 3,149,954 shares outstanding, 40 million shares authorized, $0.10 par
value
|
|
$
|
18.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
11
|
|
|
|
|
|
Year Ended January 31, 2013
|
|
|
|
|
|
|
|
|
Investment Income
|
|
Dividends unaffiliated
|
|
$
|
6,976,543
|
|
Securities lending affiliated net
|
|
|
76,846
|
|
Dividends affiliated
|
|
|
8,936
|
|
|
|
|
|
|
Total income
|
|
|
7,062,325
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
Investment advisory
|
|
|
2,846,346
|
|
Service Investor A
|
|
|
478,638
|
|
Service and distribution Investor B
|
|
|
42,337
|
|
Service and distribution Investor C
|
|
|
596,143
|
|
Service and distribution Class R
|
|
|
284,023
|
|
Transfer agent Institutional
|
|
|
178,482
|
|
Transfer agent Investor A
|
|
|
490,661
|
|
Transfer agent Investor B
|
|
|
17,712
|
|
Transfer agent Investor C
|
|
|
245,979
|
|
Transfer agent Class R
|
|
|
197,432
|
|
Accounting services
|
|
|
107,275
|
|
Professional
|
|
|
106,602
|
|
Printing
|
|
|
63,606
|
|
Custodian
|
|
|
51,544
|
|
Registration
|
|
|
45,948
|
|
Officer and Directors
|
|
|
19,596
|
|
Miscellaneous
|
|
|
24,547
|
|
|
|
|
|
|
Total expenses
|
|
|
5,796,871
|
|
Less fees waived by Manager
|
|
|
(4,330
|
)
|
|
|
|
|
|
Total expenses after fees waived
|
|
|
5,792,541
|
|
|
|
|
|
|
Net investment income
|
|
|
1,269,784
|
|
|
|
|
|
|
|
|
|
|
|
Realized and Unrealized Gain
(Loss)
|
|
|
|
|
Net realized gain (loss) from:
|
|
|
|
|
Investments
|
|
|
44,227,044
|
|
Foreign currency transactions
|
|
|
(28,665
|
)
|
|
|
|
|
|
|
|
|
44,198,379
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation on:
|
|
|
|
|
Investments
|
|
|
15,892,625
|
|
Foreign currency translations
|
|
|
(5
|
)
|
|
|
|
|
|
|
|
|
15,892,620
|
|
|
|
|
|
|
Total realized and unrealized gain
|
|
|
60,090,999
|
|
|
|
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
$
|
61,360,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
|
|
|
|
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended January 31,
|
|
Increase (Decrease) in Net Assets:
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Operations
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
1,269,784
|
|
|
$
|
842,834
|
|
Net realized gain
|
|
|
44,198,379
|
|
|
|
27,452,774
|
|
Net change in unrealized appreciation/depreciation
|
|
|
15,892,620
|
|
|
|
(18,920,173
|
)
|
|
|
|
|
|
|
|
|
|
Net increase in net assets resulting from operations
|
|
|
61,360,783
|
|
|
|
9,375,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to Shareholders From
1
|
|
|
|
|
|
|
|
|
Net investment income:
|
|
|
|
|
|
|
|
|
Institutional
|
|
|
(1,200,172
|
)
|
|
|
(569,780
|
)
|
Investor A
|
|
|
(674,665
|
)
|
|
|
(706,649
|
)
|
|
|
|
|
|
|
|
|
|
Decrease in net assets resulting from dividends to shareholders
|
|
|
(1,874,837
|
)
|
|
|
(1,276,429
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Share Transactions
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets derived from capital share transactions
|
|
|
(16,441,923
|
)
|
|
|
34,879,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
|
|
Total increase in net assets
|
|
|
43,044,023
|
|
|
|
42,978,668
|
|
Beginning of year
|
|
|
429,661,571
|
|
|
|
386,682,903
|
|
|
|
|
|
|
|
|
|
|
End of year
|
|
$
|
472,705,594
|
|
|
$
|
429,661,571
|
|
|
|
|
|
|
|
|
|
|
Undistributed net investment income
|
|
$
|
341,115
|
|
|
$
|
974,833
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Dividends are determined in accordance with federal income tax regulations.
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional
|
|
|
|
Year Ended January 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Operating
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
$
|
17.92
|
|
|
$
|
17.48
|
|
|
$
|
13.08
|
|
|
$
|
9.37
|
|
|
$
|
14.80
|
|
|
|
|
|
|
Net investment income
1
|
|
|
0.13
|
|
|
|
0.12
|
|
|
|
0.14
|
|
|
|
0.06
|
|
|
|
0.11
|
|
Net realized and unrealized gain (loss)
|
|
|
2.56
|
|
|
|
0.43
|
|
|
|
4.26
|
|
|
|
3.73
|
|
|
|
(5.42
|
)
|
|
|
|
|
|
Net increase (decrease) from investment operations
|
|
|
2.69
|
|
|
|
0.55
|
|
|
|
4.40
|
|
|
|
3.79
|
|
|
|
(5.31
|
)
|
|
|
|
|
|
Dividends and distributions from:
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.18
|
)
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
|
|
Net realized gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.12
|
)
|
|
|
|
|
|
Total dividends and distributions
|
|
|
(0.18
|
)
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
(0.12
|
)
|
|
|
|
|
|
Net asset value, end of year
|
|
$
|
20.43
|
|
|
$
|
17.92
|
|
|
$
|
17.48
|
|
|
$
|
13.08
|
|
|
$
|
9.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value
|
|
|
15.12%
|
|
|
|
3.10%
|
|
|
|
33.64%
|
|
|
|
40.63%
|
4
|
|
|
(36.16)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
0.89%
|
|
|
|
0.89%
|
|
|
|
0.94%
|
|
|
|
1.04%
|
|
|
|
0.98%
|
|
|
|
|
|
|
Total expenses after fees waived
|
|
|
0.89%
|
|
|
|
0.88%
|
|
|
|
0.94%
|
|
|
|
1.04%
|
|
|
|
0.98%
|
|
|
|
|
|
|
Total expenses after fees waived and excluding excise tax
|
|
|
0.89%
|
|
|
|
0.88%
|
|
|
|
0.94%
|
|
|
|
1.04%
|
|
|
|
0.98%
|
|
|
|
|
|
|
Net investment income
|
|
|
0.73%
|
|
|
|
0.70%
|
|
|
|
0.93%
|
|
|
|
0.53%
|
|
|
|
0.84%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000)
|
|
$
|
133,748
|
|
|
$
|
120,322
|
|
|
$
|
83,905
|
|
|
$
|
60,549
|
|
|
$
|
46,590
|
|
|
|
|
|
|
Portfolio turnover
|
|
|
55%
|
|
|
|
68%
|
|
|
|
54%
|
|
|
|
106%
|
|
|
|
154%
|
|
|
|
|
|
|
|
1
|
|
Based on average shares outstanding.
|
|
2
|
|
Dividends and distributions are determined in accordance with federal income tax regulations.
|
|
3
|
|
Where applicable, total investment returns include the reinvestment of dividends and distributions.
|
|
4
|
|
Includes proceeds received from a settlement of litigation, which impacted the Funds total investment return. Not including these proceeds, the total
investment return would have been 40.20%.
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
14
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
|
|
|
|
Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor A
|
|
|
|
Year Ended January 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Operating
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
$
|
17.44
|
|
|
$
|
17.04
|
|
|
$
|
12.79
|
|
|
$
|
9.16
|
|
|
$
|
14.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
0.07
|
|
|
|
0.06
|
|
|
|
0.09
|
|
|
|
0.02
|
|
|
|
0.06
|
|
Net realized and unrealized gain (loss)
|
|
|
2.49
|
|
|
|
0.41
|
|
|
|
4.16
|
|
|
|
3.65
|
|
|
|
(5.30
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) from investment operations
|
|
|
2.56
|
|
|
|
0.47
|
|
|
|
4.25
|
|
|
|
3.67
|
|
|
|
(5.24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends and distributions from:
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.06
|
)
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
Net realized gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.12
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total dividends and distributions
|
|
|
(0.06
|
)
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
(0.12
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year
|
|
$
|
19.94
|
|
|
$
|
17.44
|
|
|
$
|
17.04
|
|
|
$
|
12.79
|
|
|
$
|
9.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value
|
|
|
14.74%
|
|
|
|
2.73%
|
|
|
|
33.23%
|
|
|
|
40.10%
|
4
|
|
|
(36.39)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
1.25%
|
|
|
|
1.22%
|
|
|
|
1.28%
|
|
|
|
1.42%
|
|
|
|
1.36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived
|
|
|
1.25%
|
|
|
|
1.21%
|
|
|
|
1.28%
|
|
|
|
1.42%
|
|
|
|
1.36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived and excluding excise tax
|
|
|
1.25%
|
|
|
|
1.21%
|
|
|
|
1.28%
|
|
|
|
1.42%
|
|
|
|
1.36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
0.37%
|
|
|
|
0.36%
|
|
|
|
0.59%
|
|
|
|
0.17%
|
|
|
|
0.46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000)
|
|
$
|
215,469
|
|
|
$
|
182,931
|
|
|
$
|
152,037
|
|
|
$
|
101,184
|
|
|
$
|
64,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover
|
|
|
55%
|
|
|
|
68%
|
|
|
|
54%
|
|
|
|
106%
|
|
|
|
154%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Based on average shares outstanding.
|
|
2
|
|
Dividends and distributions are determined in accordance with federal income tax regulations.
|
|
3
|
|
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
|
|
4
|
|
Includes proceeds received from a settlement of litigation, which impacted the Funds total investment return. Not including these proceeds, the total
investment return would have been 39.66%.
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
15
|
|
|
|
Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor B
|
|
|
|
Year Ended January 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Operating
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
$
|
15.97
|
|
|
$
|
15.69
|
|
|
$
|
11.88
|
|
|
$
|
8.55
|
|
|
$
|
13.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss
1
|
|
|
(0.10
|
)
|
|
|
(0.09
|
)
|
|
|
(0.04
|
)
|
|
|
(0.08
|
)
|
|
|
(0.04
|
)
|
Net realized and unrealized gain (loss)
|
|
|
2.29
|
|
|
|
0.37
|
|
|
|
3.85
|
|
|
|
3.41
|
|
|
|
(4.96
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) from investment operations
|
|
|
2.19
|
|
|
|
0.28
|
|
|
|
3.81
|
|
|
|
3.33
|
|
|
|
(5.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net realized gain
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year
|
|
$
|
18.16
|
|
|
$
|
15.97
|
|
|
$
|
15.69
|
|
|
$
|
11.88
|
|
|
$
|
8.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value
|
|
|
13.71%
|
|
|
|
1.78%
|
|
|
|
32.07%
|
|
|
|
38.95%
|
4
|
|
|
(36.91)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
2.16%
|
|
|
|
2.15%
|
|
|
|
2.17%
|
|
|
|
2.26%
|
|
|
|
2.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived
|
|
|
2.16%
|
|
|
|
2.15%
|
|
|
|
2.17%
|
|
|
|
2.26%
|
|
|
|
2.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived and excluding excise tax
|
|
|
2.16%
|
|
|
|
2.15%
|
|
|
|
2.17%
|
|
|
|
2.26%
|
|
|
|
2.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss
|
|
|
(0.60)%
|
|
|
|
(0.56)%
|
|
|
|
(0.27)%
|
|
|
|
(0.77)%
|
|
|
|
(0.34)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000)
|
|
$
|
3,310
|
|
|
$
|
5,893
|
|
|
$
|
8,551
|
|
|
$
|
12,708
|
|
|
$
|
20,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover
|
|
|
55%
|
|
|
|
68%
|
|
|
|
54%
|
|
|
|
106%
|
|
|
|
154%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Based on average shares outstanding.
|
|
2
|
|
Distributions are determined in accordance with federal income tax regulations.
|
|
3
|
|
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
|
|
4
|
|
Includes proceeds received from a settlement of litigation, which impacted the Funds total investment return. Not including these proceeds, the total
investment return would have been 38.60%
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
|
|
|
|
Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor C
|
|
|
|
Year Ended January 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Operating
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
$
|
15.65
|
|
|
$
|
15.39
|
|
|
$
|
11.67
|
|
|
$
|
8.41
|
|
|
$
|
13.47
|
|
|
|
|
|
|
Net investment loss
1
|
|
|
(0.09
|
)
|
|
|
(0.09
|
)
|
|
|
(0.05
|
)
|
|
|
(0.09
|
)
|
|
|
(0.06
|
)
|
Net realized and unrealized gain (loss)
|
|
|
2.24
|
|
|
|
0.35
|
|
|
|
3.77
|
|
|
|
3.35
|
|
|
|
(4.90
|
)
|
|
|
|
|
|
Net increase (decrease) from investment operations
|
|
|
2.15
|
|
|
|
0.26
|
|
|
|
3.72
|
|
|
|
3.26
|
|
|
|
(4.96
|
)
|
|
|
|
|
|
Distributions from net realized gain
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
Net asset value, end of year
|
|
$
|
17.80
|
|
|
$
|
15.65
|
|
|
$
|
15.39
|
|
|
$
|
11.67
|
|
|
$
|
8.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value
|
|
|
13.74%
|
|
|
|
1.69%
|
|
|
|
31.88%
|
|
|
|
38.76%
|
4
|
|
|
(37.06)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
2.16%
|
|
|
|
2.17%
|
|
|
|
2.27%
|
|
|
|
2.48%
|
|
|
|
2.35%
|
|
|
|
|
|
|
Total expenses after fees waived
|
|
|
2.16%
|
|
|
|
2.16%
|
|
|
|
2.27%
|
|
|
|
2.47%
|
|
|
|
2.35%
|
|
|
|
|
|
|
Total expenses after fees waived and excluding excise tax
|
|
|
2.16%
|
|
|
|
2.16%
|
|
|
|
2.27%
|
|
|
|
2.47%
|
|
|
|
2.35%
|
|
|
|
|
|
|
Net investment loss
|
|
|
(0.55)%
|
|
|
|
(0.58)%
|
|
|
|
(0.39)%
|
|
|
|
(0.92)%
|
|
|
|
(0.54)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000)
|
|
$
|
61,756
|
|
|
$
|
63,272
|
|
|
$
|
70,795
|
|
|
$
|
57,113
|
|
|
$
|
47,034
|
|
|
|
|
|
|
Portfolio turnover
|
|
|
55%
|
|
|
|
68%
|
|
|
|
54%
|
|
|
|
106%
|
|
|
|
154%
|
|
|
|
|
|
|
|
1
|
|
Based on average shares outstanding.
|
|
2
|
|
Distributions are determined in accordance with federal income tax regulations.
|
|
3
|
|
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
|
|
4
|
|
Includes proceeds received from a settlement of litigation, which impacted the Funds total investment return. Not including these proceeds, the total
investment return would have been 38.29%
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
17
|
|
|
|
Financial Highlights (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R
|
|
|
|
Year Ended January 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Operating
Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
$
|
16.22
|
|
|
$
|
15.85
|
|
|
$
|
11.94
|
|
|
$
|
8.56
|
|
|
$
|
13.63
|
|
|
|
|
|
|
Net investment income (loss)
1
|
|
|
(0.00
|
)
2
|
|
|
(0.00
|
)
2
|
|
|
0.03
|
|
|
|
(0.02
|
)
|
|
|
0.01
|
|
Net realized and unrealized gain (loss)
|
|
|
2.33
|
|
|
|
0.37
|
|
|
|
3.88
|
|
|
|
3.40
|
|
|
|
(4.97
|
)
|
|
|
|
|
|
Net increase (decrease) from investment operations
|
|
|
2.33
|
|
|
|
0.37
|
|
|
|
3.91
|
|
|
|
3.38
|
|
|
|
(4.96
|
)
|
|
|
|
|
|
Dividends and distributions from:
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.00
|
)
2
|
|
|
|
|
Net realized gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.11
|
)
|
|
|
|
|
|
Total dividends and distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.00
|
)
2
|
|
|
(0.11
|
)
|
|
|
|
|
|
Net asset value, end of year
|
|
$
|
18.55
|
|
|
$
|
16.22
|
|
|
$
|
15.85
|
|
|
$
|
11.94
|
|
|
$
|
8.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value
|
|
|
14.37%
|
|
|
|
2.33%
|
|
|
|
32.75%
|
|
|
|
39.50%
|
5
|
|
|
(36.66)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
1.59%
|
|
|
|
1.60%
|
|
|
|
1.65%
|
|
|
|
1.81%
|
|
|
|
1.78%
|
|
|
|
|
|
|
Total expenses after fees waived
|
|
|
1.59%
|
|
|
|
1.60%
|
|
|
|
1.65%
|
|
|
|
1.80%
|
|
|
|
1.78%
|
|
|
|
|
|
|
Total expenses after fees waived and excluding excise tax
|
|
|
1.59%
|
|
|
|
1.60%
|
|
|
|
1.65%
|
|
|
|
1.80%
|
|
|
|
1.78%
|
|
|
|
|
|
|
Net investment income (loss)
|
|
|
0.01%
|
|
|
|
(0.02)%
|
|
|
|
0.22%
|
|
|
|
(0.22)%
|
|
|
|
0.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000)
|
|
$
|
58,422
|
|
|
$
|
57,244
|
|
|
$
|
71,394
|
|
|
$
|
50,310
|
|
|
$
|
33,540
|
|
|
|
|
|
|
Portfolio turnover
|
|
|
55%
|
|
|
|
68%
|
|
|
|
54%
|
|
|
|
106%
|
|
|
|
154%
|
|
|
|
|
|
|
|
1
|
|
Based on average shares outstanding.
|
|
2
|
|
Amount is greater than $(0.01) per share.
|
|
3
|
|
Dividends and distributions are determined in accordance with federal income tax regulations.
|
|
4
|
|
Where applicable, total investment returns include the reinvestment of dividends and distributions.
|
|
5
|
|
Includes proceeds received from a settlement of litigation, which impacted the Funds total investment return. Not including these proceeds, the total
investment return would have been 39.15%.
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
|
|
|
|
Notes to Financial Statements
|
|
|
1. Organization and Significant Accounting Policies:
BlackRock Mid Cap Value Opportunities Fund (the Fund) of BlackRock Mid Cap Value Opportunities Series, Inc. (the Corporation) is
registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, open-end management investment company. The Corporation is organized as a Maryland corporation. The Funds financial statements are
prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in
the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 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 CDSC. Class R Shares are sold without a sales
charge and only to certain retirement and other similar 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. Investor B Shares automatically convert to Investor A
Shares after approximately eight years. Investor B Shares are only available through exchanges and dividend reinvestments by existing shareholders and for purchase by certain qualified employee benefit plans. 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 and service plan).
The following is a summary of significant accounting policies followed by the Fund:
Valuation: US GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between
market participants at the measurement date. The Fund determines the fair values of its financial instruments at market value using independent dealers or pricing services under policies approved by the Board of Directors of the Fund (the
Board). The BlackRock Global Valuation Methodologies Committee (the Global Valuation Committee) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing
function for the Fund for all financial instruments.
Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System
(NASDAQ) are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is
primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. If no bid or ask price is available, the
prior days price will be used, unless it is determined that such prior days price no longer reflects the fair value of the security. Investments in open-end registered investment companies are valued at NAV each business day. Short-term
securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.
The Fund values its investments in
BlackRock Liquidity Series, LLC Money Market Series (the Money Market Series) at fair value, which is ordinarily based upon its pro rata ownership in the underlying funds net assets. The Money Market Series seeks current income
consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments will follow the parameters of investments by a money market fund that is subject to Rule 2a-7
under the 1940 Act. The Fund may withdraw up to 25% of its investment daily, although the manager of the Money Market Series, in its sole discretion, may permit an investor to withdraw more than 25% on any one day.
In the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of
such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (Fair Value Assets). When
determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive from the current sale of that asset in an arms-length transaction. Fair
value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurements, which include the market approach, income approach and/or
in the case of recent investments, the cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for
liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal
market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such
as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair
values may differ from the values that would have
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
19
|
|
|
|
Notes to Financial Statements (continued)
|
|
|
been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does
not exist, including regular due diligence of the Funds pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses,
reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the New York Stock Exchange
(NYSE). Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of the Funds net assets. If events
(for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to affect the value of such instruments materially, those instruments may be Fair Value Assets and valued at their fair value,
as determined in good faith by the Global Valuation Committee using a pricing service and/or policies approved by the Board. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity
securities and foreign exchange-traded and over-the-counter options (the Systematic Fair Value Price). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair
value as of the close of business on the NYSE, which follows the close of the local markets.
Foreign Currency: The Funds books and records are
maintained in US dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the US dollar rises in value against a foreign currency, the
Funds investments denominated in that currency will lose value because that currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.
The Fund does not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market
prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices
of those investments but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss)
for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.
Investment Transactions and
Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost
basis. Dividend income is recorded on the ex-dividend dates. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or
realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis. Income and realized and unrealized gains and losses are allocated daily to each class based on its
relative net assets.
Dividends and Distributions: Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. The portion of
distributions that exceeds a Funds current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. Distributions in excess of a Funds taxable income and net capital gains,
but not in excess of a Funds earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. Capital losses carried forward from years beginning before 2011 do not reduce
earnings and profits, even if such carried forward losses offset current year realized gains. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP.
Securities Lending: The Fund may lend securities to approved borrowers, such as banks, brokers and other financial institutions. The borrower pledges cash,
securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral. The initial collateral received by the Fund has a value of at least 102% of the current value of the loaned securities for
securities traded on US exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter 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 Fund and any additional required collateral is delivered to the Fund on the next business day. Securities lending income, as disclosed in the Statement of Operations, represents the income
earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, the Fund earns dividend or interest income on the securities
loaned but does not receive interest income on the securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for
settlement of securities transactions. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate this risk the Fund benefits from a
borrower default indemnity provided by BlackRock, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
|
(BlackRock). BlackRocks indemnity allows for full replacement of securities lent. The Fund also could suffer a loss if the value of an investment purchased with cash collateral
falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the year ended January 31, 2013, any securities on loan
were collateralized by cash.
Income Taxes: It is the Funds policy to comply with the requirements of the Internal Revenue Code of 1986, as amended,
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.
The Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the
Funds US federal tax returns remains open for each of the four years ended January 31, 2013. The statutes of limitations on the Funds state and local tax returns may remain open for an additional year depending upon the
jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
Recent Accounting Standards: In
December 2011, the Financial Accounting Standards Board (the FASB) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments
and derivative financial instruments subject to master netting or similar agreements, which are eligible for offset in the Statement of Assets and Liabilities and will require an entity to disclose both gross and net information about such
investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for
offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial statements with fiscal years
beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds financial statement disclosures.
Other: Expenses directly related to the Fund or its classes are charged to the Fund or class. Other operating expenses shared by several funds are pro-rated
among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses pro-rated to the Fund are allocated daily to each class based on its relative net assets or other
appropriate methods.
The Fund has an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if
applicable, are shown as fees paid indirectly in the Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.
2. Derivative Financial Instruments:
The Fund engages in
various portfolio investment strategies using derivative contracts both to increase the return of the Fund and/or to economically hedge, or protect, its exposure to certain risks such as equity risk. These contracts may be transacted on an exchange.
Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the
counterparty does not perform under the contract.
Foreign Currency Exchange Contracts: The Fund enters into foreign currency exchange contracts as an
economic hedge against either specific transactions or portfolio instruments or to obtain exposure to foreign currencies (foreign currency exchange rate risk). A foreign currency exchange contract is an agreement between two parties to buy and sell
a currency at a set exchange rate on a future date. Foreign currency exchange contracts, when used by the Fund, help to manage the overall exposure to the currencies in which some of the investments held by the Fund are denominated. The contract is
marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. When the contract is closed, the Fund 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. The use of foreign currency exchange contracts involves the risk that the value of a foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies
and the risk that the counterparty to the contract does not perform its obligations under the agreement.
|
Derivative Financial Instruments Categorized by Risk Exposure:
|
|
|
|
|
|
|
|
|
|
The Effect of Derivative Financial Instruments in the
Statement of Operations
Year Ended January 31, 2013
|
|
|
|
Net Realized Loss From
|
|
|
|
Foreign Currency
Exchange Contracts
|
|
Foreign currency transactions
|
|
|
|
|
|
$
|
(36,935
|
)
|
For the year ended January 31, 2013, the actual contract amounts of derivative financial instruments were as follows:
|
|
|
|
|
Foreign currency contracts:
|
|
Average number of contracts US dollars purchased
|
|
|
1
|
|
Average number of contracts US dollars sold
|
|
|
13
|
|
Average US dollar amounts purchased
|
|
$
|
586,462
|
|
Average US dollar amounts sold
|
|
$
|
1,772,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
21
|
|
|
|
Notes to Financial Statements (continued)
|
|
|
3. Investment Advisory Agreement and Other Transactions with Affiliates:
The PNC Financial Services Group, Inc. (PNC) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock.
The Corporation, on behalf of the Fund, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the Manager), the Funds
investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of the Funds portfolio and provides the necessary personnel,
facilities, equipment and certain other services necessary to the operations of the Fund. For such services, the Fund pays the Manager a monthly fee based on a percentage of the Funds average daily net assets at the following annual rates:
|
|
|
|
|
Average Daily Net Assets
|
|
Investment Advisory
Fee
|
|
First $1 Billion
|
|
|
0.65
|
%
|
$1 Billion $3 Billion
|
|
|
0.61
|
%
|
$3 Billion $5 Billion
|
|
|
0.59
|
%
|
$5 Billion $10 Billion
|
|
|
0.57
|
%
|
Greater than $10 Billion
|
|
|
0.55
|
%
|
The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to
the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Funds investment in other
affiliated investment companies, if any. This amount is shown as fees waived by Manager in the Statement of Operations.
The Manager entered into a
sub-advisory agreement with BlackRock Investment Management, LLC (BIM), an affiliate of the Manager. The Manager pays BIM for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by the Fund to
the Manager.
For the year ended January 31, 2013, the Fund reimbursed the Manager $4,299 for certain accounting services, which is included in
accounting services in the Statement of Operations.
The Corporation, on behalf of the Fund, entered into a Distribution Agreement and Distribution and
Service Plan with BlackRock Investments, LLC (BRIL), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL 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 of the Fund as follows:
|
|
|
|
|
|
|
|
|
|
|
Service
Fee
|
|
|
Distribution
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 written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with
sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an asset based fee or an annual fee per shareholder account, which will vary
depending on share class and/or net assets. For the year ended January 31, 2013, the Fund paid $5,298 to affiliates in return for services to Institutional shareholders, which is included in transfer agent class specific in the Statement
of Operations.
The Manager 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. For the year ended January 31, 2013, the Fund reimbursed the Manager the following
amounts for costs incurred in running the call center, which are included in transfer agent class specific in the Statement of Operations:
|
|
|
|
|
Institutional
|
|
$
|
1,819
|
|
Investor A
|
|
$
|
6,054
|
|
Investor B
|
|
$
|
300
|
|
Investor C
|
|
$
|
2,107
|
|
Class R
|
|
$
|
1,351
|
|
Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder servicing and distribution services to the
Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to Investor A, Investor B, Investor C and Class R shareholders.
For the year ended January 31, 2013, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Funds
Investor A Shares, which totaled $10,568.
For the year ended January 31, 2013, affiliates received CDSC as follows.
|
|
|
|
|
Investor A
|
|
$
|
2,883
|
|
Investor B
|
|
$
|
3,453
|
|
Investor C
|
|
$
|
3,537
|
|
The Corporation, on behalf of the Fund, received an exemptive order from the SEC permitting it, among other things, to pay an
affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and has retained BIM as the securities lending agent. BIM may, on behalf of the Fund, invest cash collateral received by the Fund
for such loans in a private investment company managed by the Manager or in registered money market funds advised by the Manager or its affiliates. The market value of securities on loan and the value of the related collateral, if applicable, is
shown in the Statement of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
|
invested by BIM, if any, is disclosed in the Schedule of Investments. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of rebates
paid to, or fees paid by, borrowers of securities. The Fund retains 65% of securities lending income and pays a fee to BIM equal to 35% of such income. The Fund benefits from a borrower default indemnity provided by BlackRock. As securities lending
agent, BIM bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BIM does not receive any fees for managing the cash collateral. The share of income earned by the Fund is shown as
securities lending affiliated net in the Statement of Operations. For the year ended January 31, 2013, BIM received $41,527 in securities lending agent fees related to securities lending activities for the Fund.
Certain officers and/or directors of the Corporation are officers and/or directors of BlackRock or its affiliates. The Fund reimburses the Manager for a portion
of the compensation paid to the Corporations Chief Compliance Officer, which is included in officer and directors in the Statement of Operations.
4. Investments:
Purchases and sales of investments,
excluding short-term securities for the year ended January 31, 2013, were $237,711,112 and $266,274,369, respectively.
5. Income Tax Information:
US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These
reclassifications have no effect on net assets or net asset values per share. The following permanent difference as of January 31, 2013 attributable to foreign currency transactions was reclassified to the following accounts:
|
|
|
|
|
Undistributed net investment income
|
|
$
|
(28,665
|
)
|
Accumulated net realized loss
|
|
$
|
28,665
|
|
The tax character of distributions paid during the fiscal years ended January 31, 2013 and January 31, 2012 was as
follows:
|
|
|
|
|
|
|
|
|
|
|
1/31/13
|
|
|
1/31/12
|
|
Ordinary income
|
|
$
|
1,874,837
|
|
|
$
|
1,276,429
|
|
As of January 31, 2013, the tax components of accumulated net earnings were as follows:
|
|
|
|
|
Undistributed ordinary income
|
|
$
|
376,479
|
|
Capital loss carryforwards
|
|
|
(7,578,786
|
)
|
Net unrealized gains
1
|
|
|
85,462,107
|
|
|
|
|
|
|
Total
|
|
$
|
78,259,800
|
|
|
|
|
|
|
1
|
|
The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales and the realization for
tax purposes of unrealized gains on investments in passive foreign investment companies.
|
As of January 31, 2013, the Fund had a
capital loss carryforward of $7,578,786 available to offset future realized capital gains, all of which expires January 31, 2018.
During the year ended
January 31, 2013, the Fund utilized $43,698,566 of its capital loss carryforward.
As of January 31, 2013, gross unrealized appreciation and gross
unrealized depreciation based on cost for federal income tax purposes were as follows:
|
|
|
|
|
Tax cost
|
|
$
|
428,221,100
|
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
97,993,060
|
|
Gross unrealized depreciation
|
|
|
(12,530,949
|
)
|
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
85,462,111
|
|
|
|
|
|
|
6. Borrowings:
The
Corporation, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates, is a party to a $500 million credit agreement with a group of lenders. The Fund may borrow under the credit agreement to fund shareholder
redemptions. Effective November 2011 to November 2012, the credit agreement had the following terms: a commitment fee of 0.065% per annum based on the Funds pro rata share of the unused portion of the credit agreement and interest at a
rate equal to the higher of (a) the one-month London Interbank Offered Rate (LIBOR) plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Fund paid administration
and arrangement fees which were allocated to the Fund based on its net assets as of October 31, 2011. The credit agreement, which expired in November 2012, was renewed with the same terms until November 2013. Effective November 2012 to November
2013, the credit agreement has the following terms: a commitment fee of 0.065% per annum based on the Funds pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month
LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Fund paid administration and arrangement fees, which were allocated to the Fund based on its net assets as of
October 31, 2012. The Fund did not borrow under the credit agreement during the year ended January 31, 2013.
7. Concentration, Market and
Credit Risk:
In the normal course of business, the Fund invests in securities and enters into transactions where risks exist due to fluctuations in the
market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Fund may decline in response to certain events, including those directly involving the issuers whose
securities are owned by the Fund; conditions affecting the general economy; overall market changes; local, regional
or global political, social or economic
instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31, 2013
|
|
23
|
|
|
|
Notes to Financial Statements (concluded)
|
|
|
may be exposed to counterparty credit risk, or the risk that an entity with which the Fund has unsettled or open transactions may fail to or be unable to perform on its commitments. The Fund
manages counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets,
which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds exposure to market, issuer and counterparty credit
risks with respect to these financial assets is generally approximated by their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.
As of January 31, 2013, the Fund invested a significant portion of its assets in securities in the financials sector. Changes in economic conditions
affecting the financials sector would have a greater impact on the Fund and could affect the value, income and/or liquidity of positions in such securities.
8. Capital Share Transactions:
Transactions in capital shares
for each class were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
January 31, 2013
|
|
|
|
|
Year Ended
January 31, 2012
|
|
|
|
Shares
|
|
|
Amount
|
|
|
|
|
Shares
|
|
|
Amount
|
|
Institutional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
1,888,571
|
|
|
$
|
34,730,587
|
|
|
|
|
|
4,109,012
|
|
|
$
|
70,370,880
|
|
Shares issued to shareholders in reinvestment of dividends
|
|
|
49,590
|
|
|
|
896,458
|
|
|
|
|
|
28,586
|
|
|
|
530,557
|
|
Shares redeemed
|
|
|
(2,108,196
|
)
|
|
|
(38,891,473
|
)
|
|
|
|
|
(2,221,075
|
)
|
|
|
(37,522,051
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
|
|
|
(170,035
|
)
|
|
$
|
(3,264,428
|
)
|
|
|
|
|
1,916,523
|
|
|
$
|
33,379,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold and automatic conversion of shares
|
|
|
3,866,900
|
|
|
$
|
69,098,382
|
|
|
|
|
|
5,469,175
|
|
|
$
|
94,004,870
|
|
Shares issued to shareholders in reinvestment of dividends
|
|
|
36,713
|
|
|
|
646,934
|
|
|
|
|
|
37,113
|
|
|
|
671,759
|
|
Shares redeemed
|
|
|
(3,587,308
|
)
|
|
|
(64,488,246
|
)
|
|
|
|
|
(3,939,272
|
)
|
|
|
(66,582,858
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
|
|
|
316,305
|
|
|
$
|
5,257,070
|
|
|
|
|
|
1,567,016
|
|
|
$
|
28,093,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
15,377
|
|
|
$
|
250,230
|
|
|
|
|
|
30,429
|
|
|
$
|
474,758
|
|
Shares redeemed and automatic conversion of shares
|
|
|
(202,139
|
)
|
|
|
(3,271,140
|
)
|
|
|
|
|
(206,367
|
)
|
|
|
(3,218,072
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease
|
|
|
(186,762
|
)
|
|
$
|
(3,020,910
|
)
|
|
|
|
|
(175,938
|
)
|
|
$
|
(2,743,314
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
484,576
|
|
|
$
|
7,786,792
|
|
|
|
|
|
737,500
|
|
|
$
|
11,284,800
|
|
Shares redeemed
|
|
|
(1,057,026
|
)
|
|
|
(16,909,232
|
)
|
|
|
|
|
(1,297,082
|
)
|
|
|
(19,790,286
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease
|
|
|
(572,450
|
)
|
|
$
|
(9,122,440
|
)
|
|
|
|
|
(559,582
|
)
|
|
$
|
(8,505,486
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
1,137,552
|
|
|
$
|
18,985,817
|
|
|
|
|
|
1,722,287
|
|
|
$
|
27,355,609
|
|
Shares redeemed
|
|
|
(1,516,976
|
)
|
|
|
(25,277,032
|
)
|
|
|
|
|
(2,696,984
|
)
|
|
|
(42,700,304
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease
|
|
|
(379,424
|
)
|
|
$
|
(6,291,215
|
)
|
|
|
|
|
(974,697
|
)
|
|
$
|
(15,344,695
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Increase (Decrease)
|
|
|
(992,366
|
)
|
|
$
|
(16,441,923
|
)
|
|
|
|
|
1,773,322
|
|
|
$
|
34,879,662
|
|
|
|
|
|
|
|
|
|
|
|
|
9. Subsequent Events:
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were
no subsequent events requiring adjustment or additional disclosure in the financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
|
|
JANUARY 31,2013
|
|
|
|
|
|
Report of Independent Registered Public Accounting Firm
|
|
|
To the Shareholders of BlackRock Mid Cap Value Opportunities Fund and Board of Directors of BlackRock Mid Cap Value Opportunities Series, Inc.:
We have audited the accompanying statement of assets and liabilities of BlackRock Mid Cap Value Opportunities Fund (the Fund) of BlackRock Mid Cap
Value Opportunities Series, Inc., including the schedule of investments, as of January 31, 2013, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not
required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our
procedures included confirmation of securities owned as of January 31, 2013, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all
material respects, the financial position of BlackRock Mid Cap Value Opportunities Fund of BlackRock Mid Cap Value Opportunities Series, Inc. as of January 31, 2013, the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Boston, Massachusetts
March 27, 2013
Important Tax Information
(Unaudited)
All of the ordinary income distributions paid by BlackRock
Mid Cap Value Opportunities Fund of BlackRock Mid Cap Value Opportunities Series, Inc. during the fiscal year ended January 31, 2013 qualify for the dividends received deduction for corporations and consist entirely of qualified dividend income for
individuals.
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BLACKROCK MID CAP VALUE OPPORTUNITIES FUND
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JANUARY 31, 2013
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25
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