BLACKROCK LIQUIDITY FUNDS
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FEBRUARY 28,
2024 |
Prospectus
BlackRock
Liquidity Funds | Capital Shares
Capital: TPCXX
Capital: TFCXX
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BlackRock Liquid Federal Trust Fund
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Capital: BECXX
Capital: BFCXX
Capital: BCHXX
Capital: BUCXX
Capital: MCPXX
This Prospectus contains information you should know
before investing, including information about risks. Please read it before you
invest and keep it for future reference.
The Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this
Prospectus. Any representation to the contrary is a criminal offense.
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Not FDIC Insured • May Lose Value • No Bank
Guarantee |
Table
of Contents
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Key facts and details about the Funds listed in
this prospectus, including investment objectives, principal investment
strategies, principal risk factors, fee and expense information, and
historical performance information |
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Key Facts About
TempCash |
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3 |
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Key Facts About TempFund
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8 |
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Key Facts About
BlackRock Liquid Federal Trust Fund |
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13 |
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Key Facts About
FedFund |
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17 |
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Key Facts About
T-Fund |
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21 |
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Key Facts About Treasury
Trust Fund |
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25 |
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Key Facts About
MuniCash |
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29 |
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Information about how each Fund invests,
including investment objectives, investment processes, principal
strategies and risk factors |
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How Each Fund
Invests |
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34 |
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Investment
Risks |
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38 |
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Information about account services, shareholder
transactions, and distribution and other payments |
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Valuation of Fund
Investments and Price of Fund Shares |
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46 |
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Purchase of
Shares |
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47 |
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Redemption of
Shares |
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49 |
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Additional Purchase and
Redemption Information |
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50 |
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Discretionary Liquidity
Fees |
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51 |
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Distribution and
Shareholder Servicing Payments |
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51 |
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Dividends and
Distributions |
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52 |
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Federal
Taxes |
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52 |
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State and Local
Taxes |
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53 |
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Information About BlackRock |
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BlackRock
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54 |
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Conflicts of
Interest |
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56 |
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Master/Feeder
Structure |
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57 |
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Financial Performance
of the Funds |
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58 |
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Certain Fund Policies
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65 |
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Glossary of Investment
Terms |
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66 |
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Funds and Service
Providers |
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67 |
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How to Contact BlackRock Liquidity
Funds |
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Inside Back Cover |
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Additional Information
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Back Cover |
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Fund
Overview
Key
Facts About TempCash
Investment Objective
The
investment objective of TempCash (the “Fund”), a series of BlackRock Liquidity
Funds (the “Trust”), is to seek as high a level of current income as is
consistent with liquidity and stability of principal.
Fees and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
Capital Shares of TempCash. You may pay other
fees, such as brokerage commissions and other fees to your financial
professional or your selected securities dealer, broker, investment adviser,
service provider or industry professional (including BlackRock Advisors, LLC
(“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are
not reflected in the table and example below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
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Capital Shares* |
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Management
Fee |
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0.21% |
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Distribution
(12b‑1) Fees |
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None |
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Other
Expenses |
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0.06% |
Shareholder
Servicing Fees |
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0.05% |
Miscellaneous/Other
Expenses |
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0.01% |
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Total
Annual Fund Operating Expenses |
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0.27% |
Fee
Waivers and/or Expense Reimbursements1 |
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(0.04)% |
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Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1 |
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0.23% |
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* |
Fund
currently active, but no assets in share class as of the fiscal year ended
October 31, 2023. |
1 |
As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 54, BlackRock, the Fund’s investment manager,
has contractually agreed to waive fees and/or reimburse ordinary operating
expenses in order to keep combined Management Fees and Miscellaneous/Other
Expenses (excluding Dividend Expense, Interest Expense, Acquired Fund Fees
and Expenses and certain other Fund expenses) from exceeding 0.18% of
average daily net assets through June 30,
2025. The agreement may be terminated upon 90 days’ notice
by a majority of the non‑interested trustees of the Trust or by a vote of
a majority of the outstanding voting securities of the Fund.
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Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
Year |
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3
Years |
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5
Years |
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10
Years |
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Capital
Shares |
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$24 |
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$83 |
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$148 |
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$339 |
Principal Investment Strategies of the Fund
TempCash
invests in a broad range of U.S. dollar-denominated money market instruments,
including government, U.S. and foreign bank, and commercial obligations and
repurchase agreements. Under normal market conditions, at
least 25% and normally a substantial portion of the Fund’s total assets will be
invested in obligations of issuers in the financial services industry and
repurchase agreements secured by such obligations. The Fund
invests in securities maturing in 397 days or less (with certain exceptions) and
the portfolio will have a dollar-weighted average maturity of 60 days or less
and a dollar-weighted average life of 120 days or less.
3
- TempCash
In
addition, the Fund may invest in mortgage‑ and asset-backed securities,
short-term obligations issued by or on behalf of states, territories and
possessions of the United States, the District of Columbia, and their respective
authorities, agencies, instrumentalities and political subdivisions and
derivative securities such as beneficial interests in municipal trust
certificates and partnership trusts. The Fund may also invest in variable and
floating rate instruments, and transact in securities on a when-issued, delayed
delivery or forward commitment basis.
The
securities purchased by the Fund are subject to the quality, diversification,
and other requirements of Rule 2a-7 under the Investment Company Act of 1940, as
amended (the “1940 Act”), and other rules of the Securities and Exchange
Commission.
Principal Risks of Investing in the Fund
Risk
is inherent in all investing. You could lose money by investing in the
Fund. Because the share price of the Fund will
fluctuate, when you sell your shares they may be worth more or less than what
you originally paid for them. The Fund may impose a fee upon the sale of
your shares. An investment in the Fund is not a bank
account and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor is not required to
reimburse the Fund for losses, and you should not expect that the sponsor will
provide financial support to the Fund at any time, including during periods of
market stress.
The
following is a summary description of principal risks of investing in the Fund.
The relative significance of each risk factor below may change over time and you
should review each risk factor carefully.
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Credit
Risk — Credit risk refers to the possibility that the issuer
of a debt security (i.e., the borrower) will be unable or unwilling to
make timely payments of interest and principal when due or otherwise honor
their obligations. Changes in an issuer’s credit rating or the market’s
perception of an issuer’s creditworthiness may also adversely affect the
value of the Fund’s investment in that issuer.
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Financial
Services Industry Risk — Because of its concentration in the
financial services industry, the Fund will be more susceptible to any
economic, business, political or other developments which generally affect
this industry sector. As a result, the Fund will be exposed to a large
extent to the risks associated with that industry, such as government
regulation, the availability and cost of capital funds (including the
availability and stability of deposits in the case of deposit-taking
institutions), consolidation and general economic conditions. Financial
services companies are also exposed to losses if borrowers and other
counterparties experience financial problems and/or cannot repay their
obligations. |
When
interest rates go up, the value of securities issued by many types of financial
services companies generally goes down. In many countries, financial services
and the companies that provide them are regulated by governmental entities,
which can increase costs for new services or products and make it difficult to
pass increased costs on to consumers. In certain areas, deregulation of
financial services companies has resulted in increased competition and reduced
profitability for certain companies.
The
profitability of many types of financial services companies may be adversely
affected in certain market cycles, including periods of rising interest rates,
which may restrict the availability and increase the cost of capital, and
declining economic conditions, which may cause credit losses due to financial
difficulties of borrowers. Because many types of financial services companies
are vulnerable to these economic cycles, a large portion of the Fund’s
investments may lose value during such periods.
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Interest Rate
Risk — Interest rate risk is the risk that the value of a
debt security may fall when interest rates rise. In general, the market
price of debt securities with longer maturities will go up or down more in
response to changes in interest rates than the market price of
shorter-term securities. Due to fluctuations in interest rates, the market
value of such securities may vary during the period shareholders own
shares of the Fund. Very low or negative interest rates may magnify
interest rate risk. During periods of very low or negative interest rates,
the Fund may be unable to maintain positive returns or pay dividends to
Fund shareholders. The Fund may be subject to a greater risk of rising
interest rates due to the recent period of historically low interest
rates. The Federal Reserve has recently begun to raise the federal funds
rate as part of its efforts to address rising inflation. There is a risk
that interest rates will continue to rise, which will likely drive down
the prices of bonds and other fixed-income securities. Changing interest
rates may have unpredictable effects on markets, may result in heightened
market volatility and may detract from the Fund’s ability to achieve its
investment objective. |
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Discretionary
Liquidity Fee Risk — The Board, or its delegate, has
discretion to impose a liquidity fee of up to 2% upon sale of your shares
if such fee is determined to be in the best interests of the Fund.
Accordingly, your redemptions may be subject to a liquidity fee when you
sell your shares at certain times.
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4
- TempCash
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Extension
Risk — When interest rates rise, certain obligations will be
paid off by the obligor more slowly than anticipated, causing the value of
these securities to fall. |
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Foreign
Exposure Risk — Securities issued or supported by foreign
entities, including foreign banks and corporations, may involve additional
risks and considerations. Extensive public information about the foreign
issuer may not be available, and unfavorable political, economic or
governmental developments in the foreign country involved could affect the
payment of principal and interest.
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Income
Risk — Income risk is the risk that the Fund’s yield will
vary as short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest rates.
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Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose money.
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An
outbreak of an infectious coronavirus (COVID-19) that was first detected in
December 2019 developed into a global pandemic that has resulted in numerous
disruptions in the market and has had significant economic impact leaving
general concern and uncertainty. Although vaccines have been developed and
approved for use by various governments, the duration of the pandemic and its
effects cannot be predicted with certainty. Because the Fund invests in
short-term instruments these events have caused some instruments to have
declining yields, which may impair the results of the Fund if these conditions
persisted. The impact of this coronavirus, and other epidemics and pandemics
that may arise in the future, could affect the economies of many nations,
individual companies and the market in general ways that cannot necessarily be
foreseen at the present time.
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Mortgage‑ and
Asset-Backed Securities Risks — Mortgage‑ and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage‑ and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
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Prepayment Risk
— When interest rates fall, certain obligations will be paid
off by the obligor more quickly than originally anticipated, and the Fund
may have to invest the proceeds in securities with lower yields.
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Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose money.
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Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
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Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial system.
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U.S. Government
Obligations Risk — Certain securities in which the Fund may
invest, including securities issued by certain U.S. Government agencies
and U.S. Government sponsored enterprises, are not guaranteed by the U.S.
Government or supported by the full faith and credit of the United States.
In addition, circumstances could arise that could prevent the timely
payment of interest or principal on U.S. Government obligations, such as
reaching the legislative “debt ceiling.” Such non‑payment could result in
losses to the Fund and substantial negative consequences for the U.S.
economy and the global financial system.
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Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given time.
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5
- TempCash
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When-Issued and
Delayed Delivery Securities and Forward Commitments Risk — When-issued and delayed
delivery securities and forward commitments involve the risk that the
security the Fund buys will lose value prior to its delivery. There also
is the risk that the security will not be issued or that the other party
to the transaction will not meet its obligation. If this occurs, the Fund
may lose both the investment opportunity for the assets it set aside to
pay for the security and any gain in the security’s price.
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Performance Information
There are currently no
Capital Shares of TempCash outstanding as of the date of this prospectus. As a
result, the chart, the table and the seven-day yield shown below give you a
picture of the performance for Institutional Shares of the Fund, which are not
offered in this prospectus. The performance of the Fund’s
Capital Shares would be substantially similar to Institutional Shares because
Capital Shares and Institutional Shares are invested in the same portfolio of
securities and performance would only differ to the extent that Capital Shares
and Institutional Shares have different expenses. The actual returns and
seven-day yields of Capital Shares would have been lower than those of the
Institutional Shares because Capital Shares have higher expenses than the
Institutional Shares.
The information
shows you how TempCash’s performance has varied year by year and provides some
indication of the risks of investing in the Fund. As with all such investments,
past performance is not an indication of future results. To the
extent that dividends and distributions have been paid by the Fund, the
performance information for the Fund in the chart and table assumes reinvestment
of the dividends and distributions. The table includes all applicable fees. If
BlackRock and its affiliates had not waived or reimbursed certain Fund expenses
during these periods, the Fund’s returns would have been lower. The Fund is a
money market fund managed pursuant to the requirements of Rule 2a-7 under the
1940 Act. Effective October 11, 2016, the Fund implemented additional
amendments to Rule 2a-7, including the adoption of a floating net asset value
(“NAV”) per Fund share. Fund performance shown prior to October 11, 2016 is
based on 1940 Act rules then in effect and is not an indication of future
returns. Between October 1, 2015 and February 28, 2017, the Fund
operated under a different investment policy such that it would invest only in
securities that, under normal circumstances, would mature (without reference to
interest rate adjustment dates), or were subject to an unconditional demand
feature that was exercisable and payable, within 5 business days or less.
Investors should note that the historical yield and performance information
shown for this period are based on the investment policy of the Fund relating to
maturity restrictions then in effect. Updated information on the Fund’s
performance can be obtained by visiting www.blackrock.com/cash
or can be obtained by phone at (800) 441‑7450.
TempCash
Institutional
Shares
ANNUAL
TOTAL RETURNS
As
of 12/31
During
the ten-year period shown in the bar chart, the highest return for a
quarter was 1.41% (quarter ended December 31,
2023) and the lowest return for a quarter
was -0.03% (quarter ended March 31,
2022).
6
- TempCash
For
the periods ended 12/31/23
Average
Annual Total Returns
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1 Year |
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5 Years |
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10 Years |
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TempCash—Institutional
Shares |
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5.22% |
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1.94% |
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1.31% |
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7‑Day Yield As of December 31, 2023 |
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TempCash—Institutional
Shares |
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5.43% |
Current
Yield: You may obtain the Fund’s current 7‑day yield by calling (800) 441‑7450 or
by visiting the Fund’s website at www.blackrock.com/cash.
Investment Manager
TempCash’s
investment manager is BlackRock Advisors, LLC (previously defined as
“BlackRock”). The Fund’s sub-adviser is BlackRock International Limited (the
“Sub-Adviser”). Where applicable, “BlackRock” refers also to the Sub-Adviser.
Purchase and Sale of Fund Shares
You
may purchase or sell shares without paying a sales charge. You may generally
purchase or redeem shares of the Fund each day on which the New York Stock
Exchange and the Federal Reserve Bank of Philadelphia are open for business. To
purchase or sell shares of the Fund, purchase orders and redemption orders must
be transmitted to the Fund’s office in Wilmington, Delaware by telephone
(800-441-7450; in Delaware 302-797-2350), through the Fund’s internet-based
order entry program, or by such other electronic means as the Fund agrees to in
its sole discretion. You have until the close of the federal funds wire
(normally 6:45 p.m. Eastern time) to get your purchase money in to the Fund or
your purchase order may be cancelled.
Purchase
orders must be placed in dollars.
The
Fund’s initial and subsequent investment minimums generally are as follows,
although the Fund’s officers may reduce or waive the minimums in some cases:
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Capital Shares |
Minimum
Initial Investment |
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$50,000 |
Minimum
Additional Investment |
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The
Fund’s officers reserve the right to vary or waive any minimum and
subsequent investment requirements. |
Tax Information
Dividends
and distributions paid by TempCash may be subject to federal income taxes and
may be taxed as ordinary income or capital gains, unless you are a tax-exempt
investor or are investing through a retirement plan, in which case you may be
subject to federal income tax when you withdraw or receive distributions from
such tax-deferred arrangements.
Payments to Broker/Dealers and Other Financial
Intermediaries
If
you purchase shares of TempCash through a broker-dealer or other Financial
Intermediary, the Fund and BlackRock Investments, LLC, the Fund’s distributor,
or its affiliates may pay the Financial Intermediary for the sale of Fund shares
and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other Financial Intermediary and your
individual financial professional to recommend the Fund over another investment.
Ask
your individual financial professional or visit your Financial Intermediary’s
website for more information.
7
- TempCash
Fund
Overview
Key
Facts About TempFund
Investment Objective
The
investment objective of TempFund (the “Fund”), a series of BlackRock Liquidity
Funds (the “Trust”), is to seek as high a level of current income as is
consistent with liquidity and stability of principal.
Fees and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
Capital Shares of TempFund. You may pay other
fees, such as brokerage commissions and other fees to your financial
professional or your selected securities dealer, broker, investment adviser,
service provider or industry professional (including BlackRock Advisors, LLC
(“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are
not reflected in the table and example below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
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Capital Shares |
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Management
Fee |
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0.25% |
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Distribution
(12b‑1) Fees |
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None |
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Other
Expenses |
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0.07% |
Shareholder
Servicing Fees |
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0.05% |
Miscellaneous/Other
Expenses |
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0.02% |
| |
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Total
Annual Fund Operating Expenses |
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0.32% |
Fee
Waivers and/or Expense Reimbursements1 |
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(0.09)% |
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Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1 |
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0.23% |
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1 |
As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 54, BlackRock, the Fund’s investment
manager, has contractually agreed to waive fees and/or reimburse ordinary
operating expenses in order to keep combined Management Fees and
Miscellaneous/Other Expenses (excluding Dividend Expense, Interest
Expense, Acquired Fund Fees and Expenses and certain other Fund expenses)
from exceeding 0.18% of average daily net assets through June 30,
2025. The agreement may be terminated upon 90 days’ notice
by a majority of the non‑interested trustees of the Trust or by a vote of
a majority of the outstanding voting securities of the Fund.
|
Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1 Year |
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3 Years |
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5 Years |
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10 Years |
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Capital
Shares |
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$24 |
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$94 |
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$171 |
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$397 |
Principal Investment Strategies of the Fund
TempFund
invests in a broad range of U.S. dollar-denominated money market instruments,
including government, U.S. and foreign bank, and commercial obligations and
repurchase agreements. The Fund invests in securities maturing in 397 days or
less (with certain exceptions) and the portfolio will have a dollar-weighted
average maturity of 60 days or less and a dollar-weighted average life of 120
days or less.
8
- TempFund
In
addition, the Fund may invest in mortgage‑ and asset-backed securities,
short-term obligations issued by or on behalf of states, territories and
possessions of the United States, the District of Columbia, and their respective
authorities, agencies, instrumentalities and political subdivisions and
derivative securities such as beneficial interests in municipal trust
certificates and partnership trusts. The Fund may also invest in variable and
floating rate instruments, and transact in securities on a when-issued, delayed
delivery or forward commitment basis.
The
securities purchased by the Fund are subject to the quality, diversification,
and other requirements of Rule 2a-7 under the Investment Company Act of 1940, as
amended (the “1940 Act”), and other rules of the Securities and Exchange
Commission.
Principal Risks of Investing in the Fund
Risk
is inherent in all investing. You could lose money by investing in the
Fund. Because the share price of the Fund will
fluctuate, when you sell your shares they may be worth more or less than what
you originally paid for them. The Fund may impose a fee upon the sale of
your shares. An investment in the Fund is not a bank
account and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor is not required to
reimburse the Fund for losses, and you should not expect that the sponsor will
provide financial support to the Fund at any time, including during periods of
market stress.
The
following is a summary description of principal risks of investing in the Fund.
The relative significance of each risk factor below may change over time and you
should review each risk factor carefully.
◾ |
|
Credit
Risk — Credit risk refers to the possibility that the issuer
of a debt security (i.e., the borrower) will be unable or unwilling to
make timely payments of interest and principal when due or otherwise honor
their obligations. Changes in an issuer’s credit rating or the market’s
perception of an issuer’s creditworthiness may also adversely affect the
value of the Fund’s investment in that issuer.
|
◾ |
|
Interest Rate
Risk — Interest rate risk is the risk that the value of a
debt security may fall when interest rates rise. In general, the market
price of debt securities with longer maturities will go up or down more in
response to changes in interest rates than the market price of
shorter-term securities. Due to fluctuations in interest rates, the market
value of such securities may vary during the period shareholders own
shares of the Fund. Very low or negative interest rates may magnify
interest rate risk. During periods of very low or negative interest rates,
the Fund may be unable to maintain positive returns or pay dividends to
Fund shareholders. The Fund may be subject to a greater risk of rising
interest rates due to the recent period of historically low interest
rates. The Federal Reserve has recently begun to raise the federal funds
rate as part of its efforts to address rising inflation. There is a risk
that interest rates will continue to rise, which will likely drive down
the prices of bonds and other fixed-income securities. Changing interest
rates may have unpredictable effects on markets, may result in heightened
market volatility and may detract from the Fund’s ability to achieve its
investment objective. |
◾ |
|
Discretionary
Liquidity Fee Risk — The Board, or its delegate, has
discretion to impose a liquidity fee of up to 2% upon sale of your shares
if such fee is determined to be in the best interests of the Fund.
Accordingly, your redemptions may be subject to a liquidity fee when you
sell your shares at certain times.
|
◾ |
|
Extension
Risk — When interest rates rise, certain obligations will be
paid off by the obligor more slowly than anticipated, causing the value of
these securities to fall. |
◾ |
|
Foreign
Exposure Risk — Securities issued or supported by foreign
entities, including foreign banks and corporations, may involve additional
risks and considerations. Extensive public information about the foreign
issuer may not be available, and unfavorable political, economic or
governmental developments in the foreign country involved could affect the
payment of principal and interest.
|
◾ |
|
Income
Risk — Income risk is the risk that the Fund’s yield will
vary as short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest rates.
|
◾ |
|
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
|
9
- TempFund
|
countries,
region, market, industry, group of industries, sector or asset class.
Local, regional or global events such as war, acts of terrorism, the
spread of infectious illness or other public health issues like pandemics
or epidemics, recessions, or other events could have a significant impact
on the Fund and its investments. Selection risk is the risk that the
securities selected by Fund management will underperform the markets, the
relevant indices or the securities selected by other funds with similar
investment objectives and investment strategies. This means you may lose
money. |
An
outbreak of an infectious coronavirus (COVID-19) that was first detected in
December 2019 developed into a global pandemic that has resulted in numerous
disruptions in the market and has had significant economic impact leaving
general concern and uncertainty. Although vaccines have been developed and
approved for use by various governments, the duration of the pandemic and its
effects cannot be predicted with certainty. Because the Fund invests in
short-term instruments these events have caused some instruments to have
declining yields, which may impair the results of the Fund if these conditions
persisted. The impact of this coronavirus, and other epidemics and pandemics
that may arise in the future, could affect the economies of many nations,
individual companies and the market in general ways that cannot necessarily be
foreseen at the present time.
◾ |
|
Mortgage‑ and
Asset-Backed Securities Risks — Mortgage‑ and asset-backed
securities represent interests in “pools” of mortgages or other assets,
including consumer loans or receivables held in trust. Mortgage‑ and
asset-backed securities are subject to credit, interest rate, prepayment
and extension risks. These securities also are subject to risk of default
on the underlying mortgage or asset, particularly during periods of
economic downturn. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. |
◾ |
|
Prepayment Risk
— When interest rates fall, certain obligations will be paid
off by the obligor more quickly than originally anticipated, and the Fund
may have to invest the proceeds in securities with lower yields.
|
◾ |
|
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose money.
|
◾ |
|
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
◾ |
|
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial system.
|
◾ |
|
U.S. Government
Obligations Risk — Certain securities in which the Fund may
invest, including securities issued by certain U.S. Government agencies
and U.S. Government sponsored enterprises, are not guaranteed by the U.S.
Government or supported by the full faith and credit of the United States.
In addition, circumstances could arise that could prevent the timely
payment of interest or principal on U.S. Government obligations, such as
reaching the legislative “debt ceiling.” Such non‑payment could result in
losses to the Fund and substantial negative consequences for the U.S.
economy and the global financial system.
|
◾ |
|
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given time.
|
◾ |
|
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
10
- TempFund
Performance Information
The information
shows you how TempFund’s performance has varied year by year and provides some
indication of the risks of investing in the Fund. As with all such investments,
past performance is not an indication of future results. To the
extent that dividends and distributions have been paid by the Fund, the
performance information for the Fund in the chart and table assumes reinvestment
of the dividends and distributions. The table includes all applicable fees. If
BlackRock and its affiliates had not waived or reimbursed certain Fund expenses
during these periods, the Fund’s returns would have been lower. The Fund is a
money market fund managed pursuant to the requirements of Rule 2a‑7 under
the 1940 Act. Updated information on the Fund’s performance can be obtained by
visiting www.blackrock.com/cash
or can be obtained by phone at (800) 441‑7450.
TempFund
Capital
Shares
ANNUAL
TOTAL RETURNS
As
of 12/31
During
the periods shown in the bar chart, the highest return for a
quarter was 1.40% (quarter ended December 31,
2023) and the lowest return for a quarter
was -0.03% (quarter ended March 31,
2022).
For
the periods ended 12/31/23
Average
Annual Total Returns
|
|
|
| |
|
|
1 Year |
|
Since Inception - July 07, 2020 |
|
| |
TempFund—Capital
Shares |
|
5.18% |
|
1.93% |
| |
|
|
7‑Day Yield As of December 31, 2023 |
| |
TempFund—Capital
Shares |
|
5.38% |
Current
Yield: You may obtain the Fund’s current 7‑day yield by calling (800) 441‑7450 or
by visiting the Fund’s website at www.blackrock.com/cash.
Investment Manager
TempFund’s
investment manager is BlackRock Advisors, LLC (previously defined as
“BlackRock”). The Fund’s sub-adviser is BlackRock International Limited (the
“Sub-Adviser”). Where applicable, “BlackRock” refers also to the Sub-Adviser.
11
- TempFund
Purchase and Sale of Fund Shares
You
may purchase or sell shares without paying a sales charge. You may generally
purchase or redeem shares of the Fund at multiple times each day on which the
New York Stock Exchange and the Federal Reserve Bank of Philadelphia are open
for business. To purchase or sell shares of the Fund, purchase orders and
redemption orders must be transmitted to the Fund’s office in Wilmington,
Delaware by telephone (800-441-7450; in Delaware
302-797-2350), through the
Fund’s internet-based order entry program, or by such other electronic means as
the Fund agrees to in its sole discretion. The Fund does not accept trades
through the NSCC Fund/SERV or DCC&S trading platforms. Orders must be
received by the Fund prior to the next NAV cut-off time to receive that NAV. You
have until the close of the federal funds wire (normally 6:45 p.m. Eastern time)
to get your purchase money in to the Fund or your purchase order may be
cancelled.
Purchase
orders must be placed in dollars.
The
Fund’s initial and subsequent investment minimums generally are as follows,
although the Fund’s officers may reduce or waive the minimums in some cases:
|
| |
|
|
Capital Shares |
Minimum
Initial Investment |
|
$50,000 |
Minimum
Additional Investment |
|
The
Fund’s officers reserve the right to vary or waive any minimum and
subsequent investment requirements. |
Tax Information
Dividends
and distributions paid by TempFund may be subject to federal income taxes and
may be taxed as ordinary income or capital gains, unless you are a tax-exempt
investor or are investing through a retirement plan, in which case you may be
subject to federal income tax when you withdraw or receive distributions from
such tax-deferred arrangements.
Payments to Broker/Dealers and Other Financial
Intermediaries
If
you purchase shares of TempFund through a broker-dealer or other Financial
Intermediary, the Fund and BlackRock Investments, LLC, the Fund’s distributor,
or its affiliates may pay the Financial Intermediary for the sale of Fund shares
and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other Financial Intermediary and your
individual financial professional to recommend the Fund over another investment.
Ask
your individual financial professional or visit your Financial Intermediary’s
website for more information.
12
- TempFund
Fund
Overview
Key
Facts About BlackRock Liquid Federal Trust Fund
Investment Objective
The
investment objective of BlackRock Liquid Federal Trust Fund (the “Fund”), a
series of BlackRock Liquidity Funds (the “Trust”), is to seek current income as
is consistent with liquidity and stability of principal.
Fees and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
Capital Shares of BlackRock Liquid Federal Trust Fund. You may pay other fees, such as brokerage commissions
and other fees to your financial professional or your selected securities
dealer, broker, investment adviser, service provider or industry professional
(including BlackRock Advisors, LLC (“BlackRock”) and its affiliates) (each, a
“Financial Intermediary”), which are not reflected in the table and example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
|
| |
|
|
Capital Shares* |
| |
Management
Fee |
|
0.21% |
| |
Distribution
(12b‑1) Fees |
|
None |
| |
Other
Expenses |
|
0.07% |
Shareholder
Servicing Fees |
|
0.05% |
Miscellaneous/Other
Expenses |
|
0.02% |
| |
|
| |
Total
Annual Fund Operating Expenses |
|
0.28% |
Fee
Waivers and/or Expense Reimbursements1 |
|
(0.06)% |
| |
|
| |
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1 |
|
0.22% |
| |
|
* |
Fund
currently active, but no assets in share class as of the fiscal year ended
October 31, 2023. |
1 |
As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 54, BlackRock, the Fund’s investment
manager, has contractually agreed to waive fees and/or reimburse ordinary
operating expenses in order to keep combined Management Fees and
Miscellaneous/Other Expenses (excluding Dividend Expense, Interest
Expense, Acquired Fund Fees and Expenses and certain other Fund expenses)
from exceeding 0.17% of average daily net assets through June 30,
2025. The agreement may be terminated upon 90 days’ notice
by a majority of the non‑interested trustees of the Trust or by a vote of
a majority of the outstanding voting securities of the Fund.
|
Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
|
|
|
| |
Capital
Shares |
|
$23 |
|
$84 |
|
$151 |
|
$350 |
Principal Investment Strategies of the Fund
BlackRock
Liquid Federal Trust Fund invests 100% of its total assets in cash, U.S.
Treasury bills, notes and other obligations issued or guaranteed as to principal
and interest by the U.S. Government or by its agencies or instrumentalities, the
interest income on which, under current federal law, generally may not be
subject to state income tax. The Fund invests in securities maturing in
397 days or less (with certain exceptions) and the portfolio will have a
dollar-weighted average maturity of 60 days or less and a dollar-weighted
average life of 120 days or less. The Fund may invest in variable and floating
rate instruments, and transact in securities on a when-issued, delayed delivery
or forward commitment basis.
The
Fund will invest, under normal circumstances, at least 80% of its net assets,
plus the amount of any borrowings for investment purposes, in U.S. Treasury
bills, notes and other obligations issued or guaranteed as to principal and
interest by the U.S. Government
13
- BlackRock Liquid Federal Trust Fund
or
by its agencies or instrumentalities, the interest income on which, under
current federal law, generally may not be subject to state income tax. This
policy is a non-fundamental policy of the Fund and the Fund will not change the
policy without providing shareholders with at least 60 days’ prior notice of any
change in the policy.
The
securities purchased by the Fund are subject to the quality, diversification,
and other requirements of Rule 2a-7 under the Investment Company Act of 1940, as
amended (the “1940 Act”), and other rules of the Securities and Exchange
Commission.
Principal Risks of Investing in the Fund
Risk
is inherent in all investing. You could lose money by investing in the
Fund. Although the Fund seeks to preserve the
value of your investment at $1.00 per share, it cannot guarantee it will do
so. An investment in the Fund is not a bank
account and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor is not required to
reimburse the Fund for losses, and you should not expect that the sponsor will
provide financial support to the Fund at any time, including during periods of
market stress. The following is a summary description of
principal risks of investing in the Fund. The relative significance of each risk
factor below may change over time and you should review each risk factor
carefully.
◾ |
|
Interest Rate
Risk — Interest rate risk is the risk that the value of a
debt security may fall when interest rates rise. In general, the market
price of debt securities with longer maturities will go up or down more in
response to changes in interest rates than the market price of
shorter-term securities. Due to fluctuations in interest rates, the market
value of such securities may vary during the period shareholders own
shares of the Fund. Very low or negative interest rates may magnify
interest rate risk. During periods of very low or negative interest rates,
the Fund may be unable to maintain positive returns or pay dividends to
Fund shareholders. The Fund may be subject to a greater risk of rising
interest rates due to the recent period of historically low interest
rates. The Federal Reserve has recently begun to raise the federal funds
rate as part of its efforts to address rising inflation. There is a risk
that interest rates will continue to rise, which will likely drive down
the prices of bonds and other fixed-income securities. Changing interest
rates may have unpredictable effects on markets, may result in heightened
market volatility and may detract from the Fund’s ability to achieve its
investment objective. |
◾ |
|
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial system.
|
◾ |
|
U.S. Government
Obligations Risk — Certain securities in which the Fund may
invest, including securities issued by certain U.S. Government
agencies and U.S. Government sponsored enterprises, are not guaranteed by
the U.S. Government or supported by the full faith and credit of the
United States. In addition, circumstances could arise that could prevent
the timely payment of interest or principal on U.S. Government
obligations, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial system.
|
◾ |
|
Credit
Risk — Credit risk refers to the possibility that the issuer
of a debt security (i.e., the borrower) will be unable or unwilling to
make timely payments of interest and principal when due or otherwise honor
their obligations. Changes in an issuer’s credit rating or the market’s
perception of an issuer’s creditworthiness may also adversely affect the
value of the Fund’s investment in that issuer.
|
◾ |
|
Income
Risk — Income risk is the risk that the Fund’s yield will
vary as short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest rates.
|
◾ |
|
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose money.
|
An
outbreak of an infectious coronavirus (COVID-19) that was first detected in
December 2019 developed into a global pandemic that has resulted in numerous
disruptions in the market and has had significant economic impact leaving
general concern and uncertainty. Although vaccines have been developed and
approved for use by various governments, the duration of the pandemic and its
effects cannot be predicted with certainty. Because the Fund invests in
short-term instruments these events have caused some instruments to have
declining yields, which may impair the results of the Fund if these conditions
persisted. The impact of this coronavirus, and other epidemics and pandemics
that may arise in the future, could affect the economies of many nations,
individual companies and the market in general ways that cannot necessarily be
foreseen at the present time.
◾ |
|
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
◾ |
|
Stable Net
Asset Value Risk — The Fund may not be able to maintain a
stable net asset value (“NAV”) of $1.00 per share at all times. If the
Fund fails to maintain a stable NAV (or if there is a perceived threat of
such a failure), the Fund, along with other money market funds, could be
subject to increased redemption activity.
|
14
- BlackRock Liquid Federal Trust Fund
◾ |
|
Trading
Risk — In selling securities prior to maturity, the Fund may
realize a price higher or lower than that paid to acquire such securities,
depending upon whether interest rates have decreased or increased since
their acquisition. In addition, shareholders in a state that imposes an
income or franchise tax should determine through consultation with their
own tax advisors whether the Fund’s interest income, when distributed by
the Fund, will be considered by the state to have retained exempt status,
and whether the Fund’s capital gain and other income, if any, when
distributed, will be subject to the state’s income or franchise tax.
|
◾ |
|
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given time.
|
◾ |
|
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
Performance Information
There are currently no
Capital Shares of BlackRock Liquid Federal Trust Fund outstanding as of the date
of this prospectus. As a result, the chart, the table and the seven-day yield
shown below give you a picture of the performance for Institutional Shares of
the Fund, which are not offered in this prospectus. The
performance of the Fund’s Capital Shares would be substantially similar to
Institutional Shares because Capital Shares and Institutional Shares are
invested in the same portfolio of securities and performance would only differ
to the extent that Capital Shares and Institutional Shares have different
expenses. The actual returns and seven-day yields of Capital Shares would have
been lower than those of the Institutional Shares because Capital Shares have
higher expenses than the Institutional Shares.
The information
shows you how BlackRock Liquid Federal Trust Fund’s performance has varied year
by year and provides some indication of the risks of investing in the
Fund. As with all such investments,
past performance is not an indication of future results. To the
extent that dividends and distributions have been paid by the Fund, the
performance information for the Fund in the chart and table assumes reinvestment
of the dividends and distributions. The table includes all applicable fees. If
BlackRock and its affiliates had not waived or reimbursed certain Fund expenses
during these periods, the Fund’s returns would have been lower. The Fund is a
money market fund managed pursuant to the requirements of Rule 2a‑7 under the
1940 Act. Updated information on the Fund’s performance can be obtained by
visiting www.blackrock.com/cash
or can be obtained by phone at (800) 441‑7450.
BlackRock
Liquid Federal Trust Fund
Institutional
Shares
ANNUAL
TOTAL RETURNS
As
of 12/31
During
the ten-year period shown in the bar chart, the highest return for a
quarter was 1.33% (quarter ended December 31,
2023) and the lowest return for a quarter
was 0.00% (quarter ended September 30, 2021).
15
- BlackRock Liquid Federal Trust Fund
For
the periods ended 12/31/23
Average
Annual Total Returns
|
|
|
|
|
| |
|
|
1 Year |
|
5 Years |
|
10 Years |
|
|
| |
BlackRock
Liquid Federal Trust Fund—Institutional Shares |
|
4.96% |
|
1.76% |
|
1.14% |
| |
|
|
7‑Day Yield As of December 31, 2023 |
| |
BlackRock
Liquid Federal Trust Fund—Institutional Shares |
|
5.24% |
Current
Yield: You may obtain the Fund’s current 7‑day yield by calling (800) 441‑7450 or
by visiting the Fund’s website at www.blackrock.com/cash.
Investment Manager
BlackRock
Liquid Federal Trust Fund’s investment manager is BlackRock Advisors, LLC
(previously defined as “BlackRock”).
Purchase and Sale of Fund Shares
You
may purchase or sell shares without paying a sales charge. You may generally
purchase or redeem shares of BlackRock Liquid Federal Trust Fund each day on
which the New York Stock Exchange and the Federal Reserve Bank of Philadelphia
are open for business. Purchase orders and redemption orders must be transmitted
through a brokerage account (an “Account”) with your bank, savings and loan
association or other financial institution. The initial and subsequent
investment minimums generally are as follows, although the Fund’s officers may
reduce or waive the minimums in some cases:
|
| |
|
|
Capital Shares |
Minimum
Initial Investment |
|
$50,000 |
Minimum
Additional Investment |
|
The
Fund’s officers reserve the right to vary or waive any minimum and
subsequent investment requirements. |
Tax Information
Dividends
and distributions paid by BlackRock Liquid Federal Trust Fund may be subject to
federal income taxes and may be taxed as ordinary income or capital gains,
unless you are a tax-exempt investor or are investing through a retirement plan,
in which case you may be subject to federal income tax when you withdraw or
receive distributions from such tax-deferred arrangements.
Payments to Broker/Dealers and Other Financial
Intermediaries
If
you purchase shares of BlackRock Liquid Federal Trust Fund through a
broker-dealer or other Financial Intermediary, the Fund and BlackRock
Investments, LLC, the Fund’s distributor, or its affiliates may pay the
Financial Intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other Financial Intermediary and your individual financial professional to
recommend the Fund over another investment.
Ask
your individual financial professional or visit your Financial Intermediary’s
website for more information.
16
- BlackRock Liquid Federal Trust Fund
Fund
Overview
Key
Facts About FedFund
Investment Objective
The
investment objective of FedFund (the “Fund”), a series of BlackRock Liquidity
Funds (the “Trust”), is to seek current income as is consistent with liquidity
and stability of principal.
Fees and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
Capital Shares of FedFund. You may pay other
fees, such as brokerage commissions and other fees to your financial
professional or your selected securities dealer, broker, investment adviser,
service provider or industry professional (including BlackRock Advisors, LLC
(“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are
not reflected in the table and example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
| |
|
|
Capital Shares |
| |
Management
Fee |
|
0.18% |
| |
Distribution
(12b‑1) Fees |
|
None |
| |
Other
Expenses |
|
0.06% |
Shareholder
Servicing Fees |
|
0.05% |
Miscellaneous/Other
Expenses |
|
0.01% |
| |
|
| |
Total
Annual Fund Operating Expenses |
|
0.24% |
Fee
Waivers and/or Expense Reimbursements1 |
|
(0.02)% |
| |
|
| |
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1 |
|
0.22% |
| |
|
1 |
As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 54, BlackRock, the Fund’s investment manager,
has contractually agreed to waive fees and/or reimburse ordinary operating
expenses in order to keep combined Management Fees and Miscellaneous/Other
Expenses (excluding Dividend Expense, Interest Expense, Acquired Fund Fees
and Expenses and certain other Fund expenses) from exceeding 0.17% of
average daily net assets through June 30,
2025. The agreement may be terminated upon 90 days’ notice
by a majority of the non‑interested trustees of the Trust or by a vote of
a majority of the outstanding voting securities of the
Fund. |
Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
|
|
|
| |
Capital
Shares |
|
$23 |
|
$75 |
|
$133 |
|
$304 |
Principal Investment Strategies of the Fund
FedFund
invests at least 99.5% of its total assets in cash, U.S. Treasury bills, notes
and other obligations issued or guaranteed as to principal and interest by the
U.S. Government, its agencies or instrumentalities, and repurchase agreements
secured by such obligations or cash. The yield of the Fund is not directly tied
to the federal funds rate. The Fund invests in securities maturing in 397 days
or less (with certain exceptions) and the portfolio will have a dollar-weighted
average maturity of 60 days or less and a dollar-weighted average life of 120
days or less. The Fund may invest in variable and floating rate instruments, and
transact in securities on a when-issued, delayed delivery or forward commitment
basis.
17
- FedFund
The
Fund will invest, under normal circumstances, at least 80% of its net assets,
plus the amount of any borrowings for investment purposes, in U.S. Treasury
bills, notes and other obligations issued or guaranteed as to principal and
interest by the U.S. Government, its agencies or instrumentalities, and
repurchase agreements secured by such obligations. This policy is a
non-fundamental policy of the Fund and the Fund will not change the policy
without providing shareholders with at least 60 days’ prior notice of any
change in the policy.
The
securities purchased by the Fund are subject to the quality, diversification,
and other requirements of Rule 2a-7 under the Investment Company Act of 1940, as
amended (the “1940 Act”), and other rules of the Securities and Exchange
Commission.
Principal Risks of Investing in the Fund
Risk
is inherent in all investing. You could lose money by investing in the
Fund. Although the Fund seeks to preserve the
value of your investment at $1.00 per share, it cannot guarantee it will do
so. An investment in the Fund is not a bank
account and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor is not required to
reimburse the Fund for losses, and you should not expect that the sponsor will
provide financial support to the Fund at any time, including during periods of
market stress. The following is a summary description of
principal risks of investing in the Fund. The relative significance of each risk
factor below may change over time and you should review each risk factor
carefully.
◾ |
|
Interest Rate
Risk — Interest rate risk is the risk that the value of a
debt security may fall when interest rates rise. In general, the market
price of debt securities with longer maturities will go up or down more in
response to changes in interest rates than the market price of
shorter-term securities. Due to fluctuations in interest rates, the market
value of such securities may vary during the period shareholders own
shares of the Fund. Very low or negative interest rates may magnify
interest rate risk. During periods of very low or negative interest rates,
the Fund may be unable to maintain positive returns or pay dividends to
Fund shareholders. The Fund may be subject to a greater risk of rising
interest rates due to the recent period of historically low interest
rates. The Federal Reserve has recently begun to raise the federal funds
rate as part of its efforts to address rising inflation. There is a risk
that interest rates will continue to rise, which will likely drive down
the prices of bonds and other fixed-income securities. Changing interest
rates may have unpredictable effects on markets, may result in heightened
market volatility and may detract from the Fund’s ability to achieve its
investment objective. |
◾ |
|
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
◾ |
|
U.S. Government
Obligations Risk — Certain securities in which the Fund may
invest, including securities issued by certain U.S. Government agencies
and U.S. Government sponsored enterprises, are not guaranteed by the U.S.
Government or supported by the full faith and credit of the United States.
In addition, circumstances could arise that could prevent the timely
payment of interest or principal on U.S. Government obligations, such as
reaching the legislative “debt ceiling.” Such non-payment could result in
losses to the Fund and substantial negative consequences for the U.S.
economy and the global financial
system. |
◾ |
|
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
◾ |
|
Credit
Risk — Credit risk refers to the possibility that the issuer
of a debt security (i.e., the borrower) will be unable or unwilling to
make timely payments of interest and principal when due or otherwise honor
their obligations. Changes in an issuer’s credit rating or the market’s
perception of an issuer’s creditworthiness may also adversely affect the
value of the Fund’s investment in that
issuer. |
◾ |
|
Income
Risk — Income risk is the risk that the Fund’s yield will
vary as short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
◾ |
|
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose money. |
18
- FedFund
An
outbreak of an infectious coronavirus (COVID-19) that was first detected in
December 2019 developed into a global pandemic that has resulted in numerous
disruptions in the market and has had significant economic impact leaving
general concern and uncertainty. Although vaccines have been developed and
approved for use by various governments, the duration of the pandemic and its
effects cannot be predicted with certainty. Because the Fund invests in
short-term instruments these events have caused some instruments to have
declining yields, which may impair the results of the Fund if these conditions
persisted. The impact of this coronavirus, and other epidemics and pandemics
that may arise in the future, could affect the economies of many nations,
individual companies and the market in general ways that cannot necessarily be
foreseen at the present time.
◾ |
|
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
◾ |
|
Stable Net
Asset Value Risk — The Fund may not be able to maintain a
stable net asset value (“NAV”) of $1.00 per share at all times. If the
Fund fails to maintain a stable NAV (or if there is a perceived threat of
such a failure), the Fund, along with other money market funds, could be
subject to increased redemption
activity. |
◾ |
|
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
◾ |
|
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
Performance Information
The information
shows you how FedFund’s performance has varied year by year and provides some
indication of the risks of investing in the Fund. As with all such investments,
past performance is not an indication of future results. To the
extent that dividends and distributions have been paid by the Fund, the
performance information for the Fund in the chart and table assumes reinvestment
of the dividends and distributions. The table includes all applicable fees. If
BlackRock and its affiliates had not waived or reimbursed certain Fund expenses
during these periods, the Fund’s returns would have been lower. The Fund is a
money market fund managed pursuant to the requirements of Rule 2a‑7 under the
1940 Act. Updated information on the Fund’s performance can be obtained by
visiting www.blackrock.com/cash
or can be obtained by phone at (800) 441‑7450.
FedFund
Capital
Shares
ANNUAL
TOTAL RETURNS
As
of 12/31
During
the periods shown in the bar chart, the highest return for a
quarter was 1.32% (quarter ended December 31,
2023) and the lowest return for a quarter
was 0.01% (quarter ended March 31,
2022).
19
- FedFund
For
the periods ended 12/31/23
Average
Annual Total Returns
|
|
|
|
|
| |
|
|
1 Year |
|
5 Year |
|
Since Inception (November 10, 2017) |
|
|
| |
FedFund—Capital
Shares |
|
4.98% |
|
1.76% |
|
1.73% |
| |
|
|
7‑Day Yield As of December 31, 2023 |
| |
FedFund—Capital
Shares |
|
5.21% |
Current
Yield: You may obtain the Fund’s current 7‑day yield by calling (800) 441‑7450 or
by visiting the Fund’s website at www.blackrock.com/cash.
Investment Manager
FedFund’s
investment manager is BlackRock Advisors, LLC (previously defined as
“BlackRock”).
Purchase and Sale of Fund Shares
You
may purchase or sell shares without paying a sales charge. You may generally
purchase or redeem shares of FedFund each day on which the New York Stock
Exchange and the Federal Reserve Bank of Philadelphia are open for business.
Purchase orders and redemption orders must be transmitted through a brokerage
account (an “Account”) with your bank, savings and loan association or other
financial institution. The initial and subsequent investment minimums generally
are as follows, although the Fund’s officers may reduce or waive the minimums in
some cases:
|
| |
|
|
Capital Shares |
Minimum
Initial Investment |
|
$50,000 |
Minimum
Additional Investment |
|
The
Fund’s officers reserve the right to vary or waive any minimum and
subsequent investment requirements. |
Tax Information
Dividends
and distributions paid by FedFund may be subject to federal income taxes and may
be taxed as ordinary income or capital gains, unless you are a tax-exempt
investor or are investing through a retirement plan, in which case you may be
subject to federal income tax when you withdraw or receive distributions from
such tax-deferred arrangements.
Payments to Broker/Dealers and Other Financial
Intermediaries
If
you purchase shares of FedFund through a broker-dealer or other Financial
Intermediary, the Fund and BlackRock Investments, LLC, the Fund’s distributor,
or its affiliates may pay the Financial Intermediary for the sale of Fund shares
and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other Financial Intermediary and your
individual financial professional to recommend the Fund over another investment.
Ask
your individual financial professional or visit your Financial Intermediary’s
website for more information.
20
- FedFund
Fund
Overview
Key
Facts About T‑Fund
Investment Objective
The
investment objective of T‑Fund (the “Fund”), a series of BlackRock Liquidity
Funds (the “Trust”), is to seek current income as is consistent with liquidity
and stability of principal.
Fees and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
Capital Shares of T‑Fund. You may pay other
fees, such as brokerage commissions and other fees to your financial
professional or your selected securities dealer, broker, investment adviser,
service provider or industry professional (including BlackRock Advisors, LLC
(“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are
not reflected in the table and example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
| |
|
|
Capital Shares |
| |
Management
Fee |
|
0.18% |
| |
Distribution
(12b‑1) Fees |
|
None |
| |
Other
Expenses |
|
0.06% |
Shareholder
Servicing Fees |
|
0.05% |
Miscellaneous/Other
Expenses |
|
0.01% |
| |
|
| |
Total
Annual Fund Operating Expenses |
|
0.24% |
Fee
Waivers and/or Expense Reimbursements1 |
|
(0.02)% |
| |
|
| |
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1 |
|
0.22% |
| |
|
1 |
As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 54, BlackRock, the Fund’s investment manager,
has contractually agreed to waive fees and/or reimburse ordinary operating
expenses in order to keep combined Management Fees and Miscellaneous/Other
Expenses (excluding Dividend Expense, Interest Expense, Acquired Fund Fees
and Expenses and certain other Fund expenses) from exceeding 0.17% of
average daily net assets through June 30,
2025. The agreement may be terminated upon 90 days’ notice
by a majority of the non‑interested trustees of the Trust or by a vote of
a majority of the outstanding voting securities of the
Fund. |
Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
|
|
|
| |
Capital
Shares |
|
$23 |
|
$75 |
|
$133 |
|
$304 |
Principal Investment Strategies of the Fund
T-Fund
invests at least 99.5% of its total assets in cash, U.S. Treasury bills, notes
and other obligations issued or guaranteed as to principal and interest by the
U.S. Treasury, and repurchase agreements secured by such obligations or cash.
The Fund invests in securities maturing in 397 days or less (with certain
exceptions) and the portfolio will have a dollar-weighted average maturity of 60
days or less and a dollar-weighted average life of 120 days or less. The Fund
may invest in variable and floating rate instruments, and transact in securities
on a when-issued, delayed delivery or forward commitment
basis.
21
- T‑Fund
The
Fund will invest, under normal circumstances, at least 80% of its net assets,
plus the amount of any borrowings for investment purposes, in U.S. Treasury
bills, notes and other obligations of the U.S. Treasury, and repurchase
agreements secured by such obligations. This policy is a non-fundamental policy
of the Fund and the Fund will not change the policy without providing
shareholders with at least 60 days’ prior notice of any change in the
policy.
The
securities purchased by the Fund are subject to the quality, diversification,
and other requirements of Rule 2a-7 under the Investment Company Act of 1940, as
amended (the “1940 Act”), and other rules of the Securities and Exchange
Commission.
Principal Risks of Investing in the Fund
Risk
is inherent in all investing. You could lose money by investing in the
Fund. Although the Fund seeks to preserve the
value of your investment at $1.00 per share, it cannot guarantee it will do
so. An investment in the Fund is not a bank
account and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor is not required to
reimburse the Fund for losses, and you should not expect that the sponsor will
provide financial support to the Fund at any time, including during periods of
market stress. The following is a summary description of
principal risks of investing in the Fund. The relative significance of each risk
factor below may change over time and you should review each risk factor
carefully.
◾ |
|
Interest Rate
Risk — Interest rate risk is the risk that the value of a
debt security may fall when interest rates rise. In general, the market
price of debt securities with longer maturities will go up or down more in
response to changes in interest rates than the market price of
shorter-term securities. Due to fluctuations in interest rates, the market
value of such securities may vary during the period shareholders own
shares of the Fund. Very low or negative interest rates may magnify
interest rate risk. During periods of very low or negative interest rates,
the Fund may be unable to maintain positive returns or pay dividends to
Fund shareholders. The Fund may be subject to a greater risk of rising
interest rates due to the recent period of historically low interest
rates. The Federal Reserve has recently begun to raise the federal funds
rate as part of its efforts to address rising inflation. There is a risk
that interest rates will continue to rise, which will likely drive down
the prices of bonds and other fixed-income securities. Changing interest
rates may have unpredictable effects on markets, may result in heightened
market volatility and may detract from the Fund’s ability to achieve its
investment objective. |
◾ |
|
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
◾ |
|
Repurchase
Agreements Risk — If the other party to a repurchase
agreement defaults on its obligation under the agreement, the Fund may
suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the
market value of the security declines, the Fund may lose
money. |
◾ |
|
Credit
Risk — Credit risk refers to the possibility that the issuer
of a debt security (i.e., the borrower) will be unable or unwilling to
make timely payments of interest and principal when due or otherwise honor
their obligations. Changes in an issuer’s credit rating or the market’s
perception of an issuer’s creditworthiness may also adversely affect the
value of the Fund’s investment in that
issuer. |
◾ |
|
Income
Risk — Income risk is the risk that the Fund’s yield will
vary as short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
◾ |
|
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
An
outbreak of an infectious coronavirus (COVID-19) that was first detected in
December 2019 developed into a global pandemic that has resulted in numerous
disruptions in the market and has had significant economic impact leaving
general concern and uncertainty. Although vaccines have been developed and
approved for use by various governments, the duration of the pandemic and its
effects cannot be predicted with certainty. Because the Fund invests in
short-term instruments these events have caused some instruments to have
declining yields, which may impair the results of the Fund if these conditions
persisted. The impact of this coronavirus, and other epidemics and pandemics
that may arise in the future, could affect the economies of many nations,
individual companies and the market in general ways that cannot necessarily be
foreseen at the present time.
22
- T‑Fund
◾ |
|
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
◾ |
|
Stable Net
Asset Value Risk — The Fund may not be able to maintain a
stable net asset value (“NAV”) of $1.00 per share at all times. If the
Fund fails to maintain a stable NAV (or if there is a perceived threat of
such a failure), the Fund, along with other money market funds, could be
subject to increased redemption
activity. |
◾ |
|
U.S. Government
Obligations Risk — Certain securities in which the Fund may
invest, including securities issued by certain U.S. Government agencies
and U.S. Government sponsored enterprises, are not guaranteed by the U.S.
Government or supported by the full faith and credit of the United States.
In addition, circumstances could arise that could prevent the timely
payment of interest or principal on U.S. Government obligations, such as
reaching the legislative “debt ceiling.” Such non-payment could result in
losses to the Fund and substantial negative consequences for the U.S.
economy and the global financial
system. |
◾ |
|
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
◾ |
|
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
Performance Information
The information
shows you how T-Fund’s performance has varied year by year and provides some
indication of the risks of investing in the Fund. As with all such investments,
past performance is not an indication of future results. To the
extent that dividends and distributions have been paid by the Fund, the
performance information for the Fund in the chart and table assumes reinvestment
of the dividends and distributions. The table includes all applicable fees. If
BlackRock and its affiliates had not waived or reimbursed certain Fund expenses
during these periods, the Fund’s returns would have been lower. The Fund is a
money market fund managed pursuant to the requirements of Rule 2a‑7 under the
1940 Act. Updated information on the Fund’s performance can be obtained by
visiting www.blackrock.com/cash
or can be obtained by phone at (800) 441‑7450.
T‑Fund
Capital
Shares
ANNUAL
TOTAL RETURNS
As
of 12/31
During
the periods shown in the bar chart, the highest return for a
quarter was 1.31% (quarter ended December 31,
2023) and the lowest return for a quarter
was 0.00% (quarter ended December 31,
2021).
23
- T‑Fund
For
the periods ended 12/31/23
Average
Annual Total Returns
|
|
|
|
|
| |
|
|
1 Year |
|
5 Year |
|
Since Inception (November 10, 2017) |
|
|
| |
T‑Fund—Capital
Shares |
|
4.96% |
|
1.75% |
|
1.72% |
| |
|
|
7‑Day Yield As of December 31, 2023 |
| |
T‑Fund—Capital
Shares |
|
5.21% |
Current
Yield: You may obtain the Fund’s current 7‑day yield by calling (800) 441‑7450 or
by visiting the Fund’s website at www.blackrock.com/cash.
Investment Manager
T‑Fund’s
investment manager is BlackRock Advisors, LLC (previously defined as
“BlackRock”).
Purchase and Sale of Fund Shares
You
may purchase or sell shares without paying a sales charge. You may generally
purchase or redeem shares of T‑Fund each day on which the New York Stock
Exchange and the Federal Reserve Bank of Philadelphia are open for business.
Purchase orders and redemption orders must be transmitted through a brokerage
account (an “Account”) with your bank, savings and loan association or other
financial institution. The initial and subsequent investment minimums generally
are as follows, although the Fund’s officers may reduce or waive the minimums in
some cases:
|
| |
|
|
Capital Shares |
Minimum
Initial Investment |
|
$50,000 |
Minimum
Additional Investment |
|
The
Fund’s officers reserve the right to vary or waive any minimum and
subsequent investment requirements. |
Tax Information
Dividends
and distributions paid by T‑Fund may be subject to federal income taxes and may
be taxed as ordinary income or capital gains, unless you are a tax-exempt
investor or are investing through a retirement plan, in which case you may be
subject to federal income tax when you withdraw or receive distributions from
such tax-deferred arrangements.
Payments to Broker/Dealers and Other Financial
Intermediaries
If
you purchase shares of T‑Fund through a broker-dealer or other Financial
Intermediary, the Fund and BlackRock Investments, LLC, the Fund’s distributor,
or its affiliates may pay the Financial Intermediary for the sale of Fund shares
and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other Financial Intermediary and your
individual financial professional to recommend the Fund over another investment.
Ask
your individual financial professional or visit your Financial Intermediary’s
website for more information.
24
- T‑Fund
Fund
Overview
Key
Facts About Treasury Trust Fund
Investment Objective
The
investment objective of Treasury Trust Fund (the “Fund”), a series of BlackRock
Liquidity Funds (the “Trust”), is to seek current income as is consistent with
liquidity and stability of principal.
Fees and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
Capital Shares of Treasury Trust Fund. You may
pay other fees, such as brokerage commissions and other fees to your financial
professional or your selected securities dealer, broker, investment adviser,
service provider or industry professional (including BlackRock Advisors, LLC
(“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are
not reflected in the table and example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
| |
|
|
Capital Shares |
| |
Management
Fee |
|
0.18% |
| |
Distribution
(12b‑1) Fees |
|
None |
| |
Other
Expenses |
|
0.06% |
Shareholder
Servicing Fees |
|
0.05% |
Miscellaneous/Other
Expenses |
|
0.01% |
| |
|
| |
Total
Annual Fund Operating Expenses |
|
0.24% |
Fee
Waivers and/or Expense Reimbursements1 |
|
(0.02)% |
| |
|
| |
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1 |
|
0.22% |
| |
|
1 |
As
described in the “Management of the Funds” section of the Fund’s
prospectus beginning on page 54, BlackRock, the Fund’s investment manager,
has contractually agreed to waive fees and/or reimburse ordinary operating
expenses in order to keep combined Management Fees and Miscellaneous/Other
Expenses (excluding Dividend Expense, Interest Expense, Acquired Fund Fees
and Expenses and certain other Fund expenses) from exceeding 0.17% of
average daily net assets through June 30,
2025. The agreement may be terminated upon 90 days’ notice
by a majority of the non‑interested trustees of the Trust or by a vote of
a majority of the outstanding voting securities of the
Fund. |
Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
|
|
|
| |
Capital
Shares |
|
$23 |
|
$75 |
|
$133 |
|
$304 |
Principal Investment Strategies of the Fund
Treasury
Trust Fund invests 100% of its total assets in cash, U.S. Treasury bills, notes
and other obligations issued or guaranteed as to principal and interest by the
U.S. Treasury. The Fund invests in securities maturing in 397 days or less
(with certain exceptions) and the portfolio will have a dollar-weighted average
maturity of 60 days or less and a dollar-weighted average life of 120 days
or less. The Fund may invest in variable and floating rate instruments, and
transact in securities on a when-issued, delayed delivery or forward commitment
basis.
25
- Treasury Trust Fund
The
Fund will invest, under normal circumstances, at least 80% of its net assets,
plus the amount of any borrowings for investment purposes, in U.S. Treasury
bills, notes and other obligations of the U.S. Treasury. This policy is a
non-fundamental policy of the Fund and the Fund will not change the policy
without providing shareholders with at least 60 days’ prior notice of any change
in the policy.
The
securities purchased by the Fund are subject to the quality, diversification,
and other requirements of Rule 2a-7 under the Investment Company Act of 1940, as
amended (the “1940 Act”), and other rules of the Securities and Exchange
Commission.
Principal Risks of Investing in the Fund
Risk
is inherent in all investing. You could lose money by investing in the
Fund. Although the Fund seeks to preserve the
value of your investment at $1.00 per share, it cannot guarantee it will do
so. An investment in the Fund is not a bank
account and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor is not required to
reimburse the Fund for losses, and you should not expect that the sponsor will
provide financial support to the Fund at any time, including during periods of
market stress. The following is a summary description of
principal risks of investing in the Fund. The relative significance of each risk
factor below may change over time and you should review each risk factor
carefully.
◾ |
|
Interest Rate
Risk — Interest rate risk is the risk that the value of a
debt security may fall when interest rates rise. In general, the market
price of debt securities with longer maturities will go up or down more in
response to changes in interest rates than the market price of
shorter-term securities. Due to fluctuations in interest rates, the market
value of such securities may vary during the period shareholders own
shares of the Fund. Very low or negative interest rates may magnify
interest rate risk. During periods of very low or negative interest rates,
the Fund may be unable to maintain positive returns or pay dividends to
Fund shareholders. The Fund may be subject to a greater risk of rising
interest rates due to the recent period of historically low interest
rates. The Federal Reserve has recently begun to raise the federal funds
rate as part of its efforts to address rising inflation. There is a risk
that interest rates will continue to rise, which will likely drive down
the prices of bonds and other fixed-income securities. Changing interest
rates may have unpredictable effects on markets, may result in heightened
market volatility and may detract from the Fund’s ability to achieve its
investment objective. |
◾ |
|
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial
system. |
◾ |
|
Credit
Risk — Credit risk refers to the possibility that the issuer
of a debt security (i.e., the borrower) will be unable or unwilling to
make timely payments of interest and principal when due or otherwise honor
their obligations. Changes in an issuer’s credit rating or the market’s
perception of an issuer’s creditworthiness may also adversely affect the
value of the Fund’s investment in that
issuer. |
◾ |
|
Income
Risk — Income risk is the risk that the Fund’s yield will
vary as short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest
rates. |
◾ |
|
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose
money. |
An
outbreak of an infectious coronavirus (COVID-19) that was first detected in
December 2019 developed into a global pandemic that has resulted in numerous
disruptions in the market and has had significant economic impact leaving
general concern and uncertainty. Although vaccines have been developed and
approved for use by various governments, the duration of the pandemic and its
effects cannot be predicted with certainty. Because the Fund invests in
short-term instruments these events have caused some instruments to have
declining yields, which may impair the results of the Fund if these conditions
persisted. The impact of this coronavirus, and other epidemics and pandemics
that may arise in the future, could affect the economies of many nations,
individual companies and the market in general ways that cannot necessarily be
foreseen at the present time.
26
- Treasury Trust Fund
◾ |
|
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
◾ |
|
Stable Net
Asset Value Risk — The Fund may not be able to maintain a
stable net asset value (“NAV”) of $1.00 per share at all times. If the
Fund fails to maintain a stable NAV (or if there is a perceived threat of
such a failure), the Fund, along with other money market funds, could be
subject to increased redemption
activity. |
◾ |
|
Trading
Risk — In selling securities prior to maturity, the Fund may
realize a price higher or lower than that paid to acquire such securities,
depending upon whether interest rates have decreased or increased since
their acquisition. In addition, shareholders in a state that imposes an
income or franchise tax should determine through consultation with their
own tax advisors whether the Fund’s interest income, when distributed by
the Fund, will be considered by the state to have retained exempt status,
and whether the Fund’s capital gain and other income, if any, when
distributed, will be subject to the state’s income or franchise
tax. |
◾ |
|
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. These securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active
market for these securities could make it difficult for the Fund to
dispose of them at any given
time. |
◾ |
|
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
Performance Information
The information
shows you how Treasury Trust Fund’s performance has varied year by year and
provides some indication of the risks of investing in the Fund.
As with all such investments,
past performance is not an indication of future results. To the
extent that dividends and distributions have been paid by the Fund, the
performance information for the Fund in the chart and table assumes reinvestment
of the dividends and distributions. The table includes all applicable fees. If
BlackRock and its affiliates had not waived or reimbursed certain Fund expenses
during these periods, the Fund’s returns would have been lower. The Fund is a
money market fund managed pursuant to the requirements of Rule 2a‑7 under the
1940 Act. Updated information on the Fund’s performance can be obtained by
visiting
www.blackrock.com/cash or can be obtained by phone at
(800) 441‑7450.
Treasury
Trust Fund
Capital
Shares
ANNUAL
TOTAL RETURNS
As
of 12/31
During
the periods shown in the bar chart, the highest return for a
quarter was 1.32% (quarter ended December 31,
2023) and the lowest return for a quarter
was 0.00% (quarter ended December 31,
2021).
27
- Treasury Trust Fund
For
the periods ended 12/31/23
Average
Annual Total Returns
|
|
|
| |
|
|
1 Year |
|
Since Inception - October 22, 2020 |
|
| |
Treasury
Trust Fund—Capital Shares |
|
4.92% |
|
1.97% |
| |
|
|
7‑Day Yield As of December 31, 2023 |
| |
Treasury
Trust Fund—Capital Shares |
|
5.20% |
Current
Yield: You may obtain the Fund’s current 7‑day yield by calling (800) 441‑7450 or
by visiting the Fund’s website at www.blackrock.com/cash.
Investment Manager
Treasury
Trust Fund’s investment manager is BlackRock Advisors, LLC (previously defined
as “BlackRock”).
Purchase and Sale of Fund Shares
You
may purchase or sell shares without paying a sales charge. You may generally
purchase or redeem shares of Treasury Trust Fund each day on which the New York
Stock Exchange and the Federal Reserve Bank of Philadelphia are open for
business. Purchase orders and redemption orders must be transmitted through a
brokerage account (an “Account”) with your bank, savings and loan association or
other financial institution. The initial and subsequent investment minimums
generally are as follows, although the Fund’s officers may reduce or waive the
minimums in some cases:
|
| |
|
|
Capital Shares |
Minimum
Initial Investment |
|
$50,000 |
Minimum
Additional Investment |
|
The
Fund’s officers reserve the right to vary or waive any minimum and
subsequent investment requirements. |
Tax Information
Dividends
and distributions paid by Treasury Trust Fund may be subject to federal income
taxes and may be taxed as ordinary income or capital gains, unless you are a
tax-exempt investor or are investing through a retirement plan, in which case
you may be subject to federal income tax when you withdraw or receive
distributions from such tax-deferred arrangements.
Payments to Broker/Dealers and Other Financial
Intermediaries
If
you purchase shares of Treasury Trust Fund through a broker-dealer or other
Financial Intermediary, the Fund and BlackRock Investments, LLC, the Fund’s
distributor, or its affiliates may pay the Financial Intermediary for the sale
of Fund shares and related services. These payments may create a conflict of
interest by influencing the broker-dealer or other Financial Intermediary and
your individual financial professional to recommend the Fund over another
investment.
Ask
your individual financial professional or visit your Financial Intermediary’s
website for more information.
28
- Treasury Trust Fund
Fund
Overview
Key
Facts About MuniCash
Investment Objective
The
investment objective of MuniCash (the “Fund”), a series of BlackRock Liquidity
Funds (the “Trust”), is to seek as high a level of current income exempt from
federal income tax as is consistent with liquidity and stability of principal.
Fees and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
Capital Shares of MuniCash. You may pay other
fees, such as brokerage commissions and other fees to your financial
professional or your selected securities dealer, broker, investment adviser,
service provider or industry professional (including BlackRock Advisors, LLC
(“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are
not reflected in the table and example below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
|
| |
|
|
Capital Shares* |
| |
Management
Fee |
|
0.29% |
| |
Distribution
(12b‑1) Fees |
|
None |
| |
Other
Expenses |
|
0.06% |
Shareholder
Servicing Fees |
|
0.05% |
Miscellaneous/Other
Expenses |
|
0.01% |
| |
|
| |
Total
Annual Fund Operating Expenses |
|
0.35% |
Fee
Waivers and/or Expense Reimbursements1 |
|
(0.10)% |
| |
|
| |
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1 |
|
0.25% |
| |
|
* |
Fund
currently active, but no assets in share class as of the fiscal year ended
October 31, 2023. |
1 |
As described in the “Management of the
Funds” section of the Fund’s prospectus beginning on page 54, BlackRock,
the Fund’s investment manager, has contractually agreed to waive fees
and/or reimburse ordinary operating expenses in order to keep combined
Management Fees and Miscellaneous/Other Expenses (excluding Dividend
Expense, Interest Expense, Acquired Fund Fees and Expenses and certain
other Fund expenses) from exceeding 0.20% of average daily net assets
through June 30,
2025. The agreement may be terminated upon 90 days’ notice
by a majority of the non‑interested trustees of the Trust or by a vote of
a majority of the outstanding voting securities of the
Fund. |
Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
|
|
|
| |
Capital
Shares |
|
$26 |
|
$102 |
|
$186 |
|
$433 |
Principal Investment Strategies of the Fund
Under
normal circumstances, MuniCash invests: (i) at least 80% of its net assets, plus
the amount of any borrowings for investment purposes, in a broad range of
short-term obligations issued by or on behalf of states, territories and
possessions of the United States, the District of Columbia, and their respective
authorities, agencies, instrumentalities and political subdivisions and
derivative securities, such as beneficial interests in municipal trust
certificates and partnership trusts (“Municipal Obligations”), the interest on
which, in the opinion of counsel to the issuer of the obligation, is exempt from
regular federal income tax; or (ii) so that at least 80% of the income
distributed by the Fund will be exempt from regular federal income tax.
Municipal Obligations in which the Fund may invest will also not be subject to
the federal alternative minimum tax. The Fund intends to invest solely in
29
- MuniCash
securities
that are considered weekly liquid assets under Rule 2a-7 under the Investment
Company Act of 1940, as amended (the “1940 Act”) (typically maturing in five
business days or less). The Fund may invest in variable and floating rate
instruments, and transact in securities on a when-issued, delayed delivery or
forward commitment basis.
The
securities purchased by the Fund are subject to the quality, diversification,
and other requirements of Rule 2a-7 under the 1940 Act, and other rules of the
Securities and Exchange Commission.
Principal Risks of Investing in the Fund
Risk
is inherent in all investing. You could lose money by investing in the
Fund. Because the share price of the Fund will
fluctuate, when you sell your shares they may be worth more or less than what
you originally paid for them. The Fund may impose a fee upon the sale of
your shares. An investment in the Fund is not a bank
account and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor is not required to
reimburse the Fund for losses, and you should not expect that the sponsor will
provide financial support to the Fund at any time, including during periods of
market stress.
The
following is a summary description of principal risks of investing in the Fund.
The relative significance of each risk factor below may change over time and you
should review each risk factor carefully.
◾ |
|
Credit
Risk — Credit risk refers to the possibility that the issuer
of a debt security (i.e., the borrower) will be unable or unwilling to
make timely payments of interest and principal when due or otherwise honor
their obligations. Changes in an issuer’s credit rating or the market’s
perception of an issuer’s creditworthiness may also adversely affect the
value of the Fund’s investment in that issuer.
|
◾ |
|
Municipal
Securities Risks — Municipal securities risks include the
ability of the issuer to repay the obligation, the relative lack of
information about certain issuers of municipal securities, and the
possibility of future legislative changes which could affect the market
for and value of municipal securities. Budgetary constraints of local,
state, and federal governments upon which the issuers may be relying for
funding may also impact municipal securities. These risks include:
|
General Obligation Bonds Risks — Timely
payments depend on the issuer’s credit quality, ability to raise tax revenues
and ability to maintain an adequate tax base.
Revenue Bonds Risks — These payments depend on
the money earned by the particular facility or class of facilities, or the
amount of revenues derived from another source.
Private Activity Bonds Risks — Municipalities
and other public authorities issue private activity bonds to finance development
of industrial facilities for use by a private enterprise. The private enterprise
pays the principal and interest on the bond, and the issuer does not pledge its
full faith, credit and taxing power for repayment.
Moral Obligation Bonds Risks — Moral
obligation bonds are generally issued by special purpose public authorities of a
state or municipality. If the issuer is unable to meet its obligations,
repayment of these bonds becomes a moral commitment, but not a legal obligation,
of the state or municipality.
Municipal Notes Risks — Municipal notes are
shorter term municipal debt obligations. If there is a shortfall in the
anticipated proceeds, the notes may not be fully repaid and the Fund may lose
money.
Municipal Lease Obligations Risks — In a
municipal lease obligation, the issuer agrees to make payments when due on the
lease obligation. Although the issuer does not pledge its unlimited taxing power
for payment of the lease obligation, the lease obligation is secured by the
leased property.
Tax‑Exempt Status Risk — The Fund and its
investment manager will rely on the opinion of issuers’ bond counsel and, in the
case of derivative securities, sponsors’ counsel, on the tax‑exempt status of
interest on municipal bonds and payments under derivative securities. Neither
the Fund nor its investment manager will independently review the bases for
those tax opinions, which may ultimately be determined to be incorrect and
subject the Fund and its shareholders to substantial tax liabilities.
◾ |
|
Municipal
Securities Concentration Risk — From time to time the Fund
may invest a substantial amount of its assets in municipal securities
whose interest is paid solely from revenues of similar projects. If the
Fund concentrates its investments in this manner, it assumes the legal and
economic risks relating to such projects and this may have a significant
impact on the Fund’s investment performance.
|
◾ |
|
Interest Rate
Risk — Interest rate risk is the risk that the value of a
debt security may fall when interest rates rise. In general, the market
price of debt securities with longer maturities will go up or down more in
response to changes in interest rates than the market price of
shorter-term securities. Due to fluctuations in interest rates, the market
value of such securities may vary during the period shareholders own
shares of the Fund. Very low or negative interest rates may magnify
interest rate |
30
- MuniCash
|
risk.
During periods of very low or negative interest rates, the Fund may be
unable to maintain positive returns or pay dividends to Fund shareholders.
The Fund may be subject to a greater risk of rising interest rates due to
the recent period of historically low interest rates. The Federal Reserve
has recently begun to raise the federal funds rate as part of its efforts
to address rising inflation. There is a risk that interest rates will
continue to rise, which will likely drive down the prices of bonds and
other fixed-income securities. Changing interest rates may have
unpredictable effects on markets, may result in heightened market
volatility and may detract from the Fund’s ability to achieve its
investment objective. |
◾ |
|
Discretionary
Liquidity Fee Risk — The Board, or its delegate, has
discretion to impose a liquidity fee of up to 2% upon sale of your shares
if such fee is determined to be in the best interests of the Fund.
Accordingly, your redemptions may be subject to a liquidity fee when you
sell your shares at certain times.
|
◾ |
|
Foreign
Exposure Risk — Securities issued or supported by foreign
entities, including foreign banks and corporations, may involve additional
risks and considerations. Extensive public information about the foreign
issuer may not be available, and unfavorable political, economic or
governmental developments in the foreign country involved could affect the
payment of principal and interest.
|
◾ |
|
Income
Risk — Income risk is the risk that the Fund’s yield will
vary as short-term securities in its portfolio mature and the proceeds are
reinvested in securities with different interest rates.
|
◾ |
|
Market Risk and
Selection Risk — Market risk is the risk that one or more
markets in which the Fund invests will go down in value, including the
possibility that the markets will go down sharply and unpredictably. The
value of a security or other asset may decline due to changes in general
market conditions, economic trends or events that are not specifically
related to the issuer of the security or other asset, or factors that
affect a particular issuer or issuers, exchange, country, group of
countries, region, market, industry, group of industries, sector or asset
class. Local, regional or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues like
pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the
risk that the securities selected by Fund management will underperform the
markets, the relevant indices or the securities selected by other funds
with similar investment objectives and investment strategies. This means
you may lose money.
|
An
outbreak of an infectious coronavirus (COVID-19) that was first detected in
December 2019 developed into a global pandemic that has resulted in numerous
disruptions in the market and has had significant economic impact leaving
general concern and uncertainty. Although vaccines have been developed and
approved for use by various governments, the duration of the pandemic and its
effects cannot be predicted with certainty. Because the Fund invests in
short-term instruments these events have caused some instruments to have
declining yields, which may impair the results of the Fund if these conditions
persisted. The impact of this coronavirus, and other epidemics and pandemics
that may arise in the future, could affect the economies of many nations,
individual companies and the market in general ways that cannot necessarily be
foreseen at the present time.
◾ |
|
Risk of
Investing in the United States — Certain changes in the U.S.
economy, such as when the U.S. economy weakens or when its financial
markets decline, may have an adverse effect on the securities to which the
Fund has exposure. |
◾ |
|
Taxability
Risk — Future laws, regulations, rulings or court decisions
may cause interest on municipal securities to be subject, directly or
indirectly, to U.S. federal income taxation or currently exempt interest
on state municipal securities to be subject to state or local income
taxation, or the value of state municipal securities that are currently
exempt to be subject to state or local intangible personal property tax,
or may otherwise prevent the Fund from realizing the full current benefit
of the tax-exempt status of such securities. Any such change could also
affect the market price of such securities, and thus the value of an
investment in the Fund.
|
Legal Opinion Risk — The Fund will rely on
legal opinions of counsel to issuers of municipal securities as to the
tax-exempt status of investments and will not do its own analysis. The status of
a municipal security as tax-exempt may be affected by events that occur after
the municipal security is issued.
◾ |
|
Treasury
Obligations Risk — Direct obligations of the U.S. Treasury
have historically involved little risk of loss of principal if held to
maturity. However, due to fluctuations in interest rates, the market value
of such securities may vary during the period shareholders own shares of
the Fund. In addition, notwithstanding that U.S. Treasury obligations are
backed by the full faith and credit of the United States, circumstances
could arise that could prevent the timely payment of interest or
principal, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial system.
|
◾ |
|
U.S. Government
Obligations Risk — Certain securities in which the Fund may
invest, including securities issued by certain U.S. Government
agencies and U.S. Government sponsored enterprises, are not guaranteed by
the U.S. Government or supported by the full faith and credit of the
United States. In addition, circumstances could arise that could prevent
the timely payment of interest or principal on U.S. Government
obligations, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative
consequences for the U.S. economy and the global financial system.
|
31
- MuniCash
◾ |
|
Variable and
Floating Rate Instrument Risk — Variable and floating rate
securities provide for periodic adjustment in the interest rate paid on
the securities. Certain of these securities may be subject to greater
illiquidity risk than other fixed income securities, meaning the absence
of an active market for these securities could make it difficult for the
Fund to dispose of them at any given time.
|
◾ |
|
When-Issued and
Delayed Delivery Securities and Forward Commitments Risk —
When-issued and delayed delivery securities and forward commitments
involve the risk that the security the Fund buys will lose value prior to
its delivery. There also is the risk that the security will not be issued
or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the
assets it set aside to pay for the security and any gain in the security’s
price. |
Performance Information
There are currently no
Capital Shares of MuniCash outstanding as of the date of this prospectus. As a
result, the chart, the table and the seven-day yield shown below give you a
picture of the performance for Institutional Shares of the Fund, which are not
offered in this prospectus. The performance of the Fund’s
Capital Shares would be substantially similar to Institutional Shares because
Capital Shares and Institutional Shares are invested in the same portfolio of
securities and performance would only differ to the extent that Capital Shares
and Institutional Shares have different expenses. The actual returns and
seven-day yields of Capital Shares would have been lower than those of the
Institutional Shares because Capital Shares have higher expenses than the
Institutional Shares.
The information
shows you how MuniCash’s performance has varied year by year and provides some
indication of the risks of investing in the Fund. As with all such investments,
past performance is not an indication of future results. To the
extent that dividends and distributions have been paid by the Fund, the
performance information for the Fund in the chart and table assumes reinvestment
of the dividends and distributions. The table includes all applicable fees. If
BlackRock and its affiliates had not waived or reimbursed certain Fund expenses
during these periods, the Fund’s returns would have been lower. The Fund is a
money market fund managed pursuant to the requirements of Rule 2a‑7 under
the 1940 Act. Prior to February 27, 2024, MuniCash did not have an
investment policy that it intends to invest solely in securities that are
considered weekly liquid assets under Rule 2a-7 under the 1940 Act. Fund
performance shown prior to February 27, 2024 is based on the investment policies
of MuniCash prior to the implementation of this change in the investment policy
relating to maturity. Effective October 11, 2016, the Fund implemented
additional amendments to Rule 2a‑7, including the adoption of a floating
net asset value (“NAV”) per Fund share. Fund performance shown prior to
October 11, 2016 is based on 1940 Act rules then in effect and is not an
indication of future returns. Updated information on the Fund’s performance can
be obtained by visiting www.blackrock.com/cash
or can be obtained by phone at (800) 441‑7450.
MuniCash
Institutional
Shares
ANNUAL
TOTAL RETURNS
As
of 12/31
During
the ten-year period shown in the bar chart, the highest return for a
quarter was 0.86% (quarter ended December 31,
2023) and the lowest return for a quarter
was -0.01% (quarter ended March 31,
2022).
32
- MuniCash
For
the periods ended 12/31/23
Average
Annual Total Returns
|
|
|
|
|
| |
|
|
1 Year |
|
5 Years |
|
10 Years |
|
|
| |
MuniCash—Institutional
Shares |
|
3.06% |
|
1.13% |
|
0.80% |
| |
|
|
7‑Day Yield As of December 31, 2023 |
| |
MuniCash—Institutional
Shares |
|
3.76% |
Current
Yield: You may obtain the Fund’s current 7‑day yield by calling
(800) 441‑7450 or by visiting the Fund’s website at www.blackrock.com/cash.
Investment Manager
MuniCash’s
investment manager is BlackRock Advisors, LLC (previously defined as
“BlackRock”).
Purchase and Sale of Fund Shares
You
may purchase or sell shares without paying a sales charge. You may generally
purchase or redeem shares of the Fund each day on which the New York Stock
Exchange and the Federal Reserve Bank of Philadelphia are open for business. To
purchase or sell shares of the Fund, purchase orders and redemption orders must
be transmitted to the Fund’s office in Wilmington, Delaware by telephone
(800-441-7450; in Delaware 302-797-2350), through the Fund’s internet-based
order entry program, or by such other electronic means as the Fund agrees to in
its sole discretion. You have until the close of the federal funds wire
(normally 6:45 p.m. Eastern time) to get your purchase money in to the Fund or
your purchase order may be cancelled.
Purchase
orders must be placed in dollars.
The
Fund’s initial and subsequent investment minimums generally are as follows,
although the Fund’s officers may reduce or waive the minimums in some cases:
|
| |
|
|
Capital Shares |
Minimum
Initial Investment |
|
$50,000 |
Minimum
Additional Investment |
|
The
Fund’s officers reserve the right to vary or waive any minimum and
subsequent investment requirements. |
Tax Information
MuniCash
anticipates that substantially all of its income dividends will be
“exempt-interest dividends,” which are generally exempt from regular federal
income taxes.
Payments to Broker/Dealers and Other Financial
Intermediaries
If
you purchase shares of MuniCash through a broker-dealer or other Financial
Intermediary, the Fund and BlackRock Investments, LLC, the Fund’s distributor,
or its affiliates may pay the Financial Intermediary for the sale of Fund shares
and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other Financial Intermediary and your
individual financial professional to recommend the Fund over another investment.
Ask
your individual financial professional or visit your Financial Intermediary’s
website for more information.
33
- MuniCash
Details
About the Funds
Included
in this prospectus are sections that tell you about your shareholder rights,
buying and selling shares, management information, and shareholder features of
TempCash, TempFund and MuniCash, each of which is a non-retail, non-government
money market fund under Rule 2a-7 under the Investment Company Act of 1940, as
amended (the “1940 Act”) (each an “Institutional Fund”); and BlackRock Liquid
Federal Trust Fund, FedFund, T-Fund and Treasury Trust Fund, each a government
money market fund under Rule 2a‑7 (each a “Government Fund,” and
collectively with the Institutional Funds, the “Funds”). Each Fund is a series
of BlackRock Liquidity Funds (the “Trust”).
How Each Fund Invests
◾ |
|
Each
Fund will maintain a dollar-weighted average maturity of 60 days or less
and a dollar-weighted average life of 120 days or less. For a discussion
of dollar-weighted average maturity and dollar-weighted average life,
please see the Glossary on page 66. |
◾ |
|
Pursuant
to Rule 2a-7, each Fund is subject to a “general liquidity requirement”
that requires that each Fund hold securities that are sufficiently liquid
to meet reasonably foreseeable shareholder redemptions in light of its
obligations under Section 22(e) of the 1940 Act regarding share
redemptions and any commitments the Fund has made to shareholders. To
comply with this general liquidity requirement, BlackRock Advisors, LLC
(“BlackRock”) must consider factors that could affect the Fund’s liquidity
needs, including characteristics of the Fund’s investors and their likely
redemptions. Depending upon the volatility of its cash flows (particularly
shareholder redemptions), this may require a Fund to maintain greater
liquidity than would be required by the daily and weekly minimum liquidity
requirements discussed below. |
◾ |
|
No
Fund will acquire any illiquid security (i.e., securities that cannot be sold or
disposed of in the ordinary course of business within seven days at
approximately the value ascribed to them by the Fund) if, immediately
following such purchase, more than 5% of the Fund’s total assets are
invested in illiquid securities. |
◾ |
|
No
Fund (other than MuniCash) will acquire any security other than a daily
liquid asset unless, immediately following such purchase, at least 10%
(25% after April 1, 2024) of its total assets would be invested in daily
liquid assets, and no Fund will acquire any security other than a weekly
liquid asset unless, immediately following such purchase, at least 30%
(50% after April 1, 2024) of its total assets would be invested in weekly
liquid assets. Due to its investment strategy, MuniCash intends to invest
100% of its total assets in weekly liquid assets. For a discussion of
daily liquid assets and weekly liquid assets, please see the Glossary on
page 66. |
◾ |
|
Each
Government Fund seeks to maintain a net asset value (“NAV”) of $1.00 per
share. |
◾ |
|
Each
Institutional Fund’s NAV per share, calculated as described in “Account
Information—Valuation of Fund Investments and Price of Fund Shares,” will
be quoted to the fourth decimal place (e.g., $1.0000), and is expected to
fluctuate from time to time. |
The
Trust’s Board of Trustees (the “Board”), or its delegate, may impose a
discretionary liquidity fee on redemptions from each Institutional Fund (up to
2%) under certain circumstances. Please see the section below titled “Account
Information—Discretionary Liquidity Fees” for additional information about
discretionary liquidity fees. The Board has chosen not to subject the Government
Funds to discretionary liquidity fees. If the Board changes this policy with
respect to discretionary liquidity fees, such change would become effective only
after shareholders are provided with advance notice of the change.
Investment
Objectives
|
| |
Fund |
|
Investment
Objective |
TempCash |
|
Each Fund seeks as high a level of current income as is
consistent with liquidity and stability of principal. |
TempFund |
BlackRock
Liquid Federal Trust Fund |
|
Each Fund seeks current income as is consistent with liquidity
and stability of principal. |
FedFund |
T‑Fund |
Treasury Trust Fund |
34
|
| |
Fund |
|
Investment
Objective |
MuniCash |
|
The Fund seeks as high a level of current income exempt from
federal income tax as is consistent with liquidity and stability of
principal. |
|
Except
for MuniCash, the investment objective of each Fund may be changed by the Board
without shareholder approval.
Investment
Process
Each
Fund invests in securities maturing within 397 days or less from the date of
purchase, with certain exceptions. For example, certain government securities
held by a Fund may have remaining maturities exceeding 397 days if such
securities provide for adjustments in their interest rates not less frequently
than every 397 days. MuniCash will invest only in securities that are considered
weekly liquid assets under Rule 2a-7.
The
securities purchased by a Fund are also subject to the quality, diversification,
and other requirements of Rule 2a-7 under the 1940 Act, and other rules of the
Securities and Exchange Commission (the “SEC”). Each Fund will purchase only
securities that are Eligible Securities. When required under Rule 2a-7,
BlackRock will determine whether an instrument presents minimal credit risk
pursuant to guidelines approved by the Board. For a discussion of Eligible
Securities, please see the Glossary.
Principal
Investment Strategies
Each
Fund’s principal investment strategies are described under the heading
“Principal Investment Strategies of the Fund” in each Fund’s “Key Facts” section
included in “Fund Overview.” The following is additional information concerning
the investment strategies of the Funds.
TempCash, TempFund and MuniCash
Pursuant
to Rule 2a-7 under the 1940 Act, each Fund will generally limit its purchases of
any one issuer’s securities (other than U.S. Government obligations and
repurchase agreements collateralized by such securities) to 5% of the Fund’s
total assets, except that up to 25% of its total assets may be invested in
securities of one issuer for a period of up to three business days; provided
that a Fund may not invest in the securities of more than one issuer in
accordance with the foregoing exception at any one time.
Additionally,
a security purchased by each Fund (or
the issuers of such securities) will be:
|
◾ |
|
a
security that has ratings at the time of purchase (or which are guaranteed
or in some cases otherwise supported by credit supports with such ratings)
in the highest rating category by at least two unaffiliated nationally
recognized statistical rating organizations (“NRSROs”), or one NRSRO, if
the security or guarantee was only rated by one NRSRO;
|
|
◾ |
|
a
security that is issued or guaranteed by a person with such ratings;
|
|
◾ |
|
a
security without such short-term ratings that has been determined to be of
comparable quality by BlackRock; |
|
◾ |
|
a
security issued by other open-end investment companies that invest in the
type of obligations in which the Fund may invest; or
|
|
◾ |
|
a
security issued or guaranteed as to principal or interest by the U.S.
Government or any of its agencies or instrumentalities.
|
Appendix
A to the Statement of Additional Information (the “SAI”) contains a description
of the relevant rating symbols used by several NRSROs for various types of debt
obligations.
TempCash, TempFund and MuniCash
During
periods of unusual market conditions or during temporary defensive periods, each
Fund may depart from its principal investment strategies. Each Fund may hold
uninvested cash reserves pending investment, during temporary defensive periods,
or if, in the opinion of BlackRock, suitable tax-exempt obligations are
unavailable. Uninvested cash reserves may not earn income.
35
Principal
Investments
The
section below describes the particular types of securities in which a Fund
principally invests. Each Fund may, from time to time, make other types of
investments and pursue other investment strategies in support of its overall
investment goal. These supplemental investment strategies are described in the
SAI. The SAI also describes the Funds’ policies and procedures concerning the
disclosure of portfolio holdings.
Bank
Obligations. TempCash
and TempFund. Each Fund may purchase obligations of issuers in
the banking industry, such as bank holding company obligations, bank commercial
paper, certificates of deposit, bank notes and time deposits issued or supported
by the credit of domestic banks or savings institutions and U.S.
dollar-denominated instruments issued or supported by the credit of foreign
banks or savings institutions having total assets at the time of purchase in
excess of $1 billion. Each Fund may also make interest-bearing savings deposits
in domestic commercial and savings banks. TempFund may also invest in
obligations of foreign banks or foreign branches of U.S. banks where BlackRock
deems the instrument to present minimal credit risk, while TempCash may invest
substantially in such obligations.
Commercial
Paper. TempCash and
TempFund. Each Fund may invest in commercial paper, short-term
notes and corporate bonds of domestic corporations that meet the Fund’s quality
and maturity requirements, which are short-term securities with maturities of 1
to 397 days, issued by banks, corporations and others. In addition, commercial
paper purchased by TempCash and TempFund may include instruments issued by
foreign issuers, except that TempFund may only invest up to 5% of its assets in
non-bank commercial paper issued by foreign issuers.
Funding
Agreements. TempCash
and TempFund. Each Fund may make investments in obligations,
such as guaranteed investment contracts and similar funding agreements, issued
by highly rated U.S. insurance companies. Funding agreement investments that do
not provide for payment within seven days after notice are subject to the Fund’s
policy regarding investments in illiquid securities.
Loan
Participations. TempCash and TempFund. Each Fund
may invest in loan participations. Loan participations are interests in loans
which are administered by the lending bank or agent for a syndicate of lending
banks, and sold by the lending bank or syndicate member.
Master Demand or Term
Notes. TempCash and
TempFund. Each Fund may invest in master demand or term notes
payable in U.S. dollars and issued or guaranteed by U.S. and foreign
corporations or other entities. A master demand or term note typically permits
the investment of varying amounts by a Fund under an agreement between the Fund
and an issuer. The principal amount of a master demand or term note may be
increased from time to time by the parties (subject to specified maximums) or
decreased by the issuer. In some instances, such notes may be supported by
collateral. Collateral, if any, for a master demand or term note may include
types of securities that a Fund could not hold directly.
Mortgage‑ and
Asset-Backed Obligations. TempCash and TempFund. Each Fund
may invest in debt securities that are backed by a pool of assets, usually loans
such as mortgages, installment sale contracts, credit card receivables or other
assets (“asset-backed securities”). TempCash may also invest in certain
mortgage-related securities, such as bonds that are backed by cash flows from
pools of mortgages and may have multiple classes with different payment rights
and protections (“collateralized mortgage obligations” or “CMOs”) issued or
guaranteed by U.S. Government agencies and instrumentalities or issued by
private companies. Purchasable mortgage-related securities also include
adjustable rate securities. TempCash currently intends to hold CMOs only as
collateral for repurchase agreements.
Municipal
Obligations. MuniCash. The Fund may purchase
Municipal Obligations which are classified as “general obligation” securities or
“revenue” securities. Revenue securities include private activity bonds which
are not payable from the unrestricted revenues of the issuer. Consequently, the
credit quality of private activity bonds is usually directly related to the
credit standing of the corporate user of the facility involved. Interest paid on
private activity bonds will be exempt from regular federal income tax. Other
Municipal Obligations in which the Fund may invest include custodial receipts,
tender option bonds and Rule 144A securities. The Fund may also invest in “moral
obligation” bonds, which are bonds that are supported by the moral commitment,
but not the legal obligation, of a state or community.
Repurchase
Agreements. TempCash,
TempFund, FedFund and T-Fund. Each Fund may enter into
repurchase agreements. Repurchase agreements are similar in certain respects to
collateralized loans, but are structured as a purchase of securities by a Fund,
subject to the seller’s agreement to repurchase the securities at a mutually
agreed upon date and price. Under a repurchase agreement, the seller is required
to furnish collateral at least equal in value or market price to the amount of
the seller’s repurchase obligation. Collateral for T-Fund repurchase agreements
may include cash, U.S. Treasury bills, notes and other
36
obligations
issued or guaranteed as to principal and interest by the U.S. Treasury.
Collateral for FedFund repurchase agreements may include cash and obligations
issued by the U.S. Government or its agencies or instrumentalities. Collateral
for TempCash and TempFund repurchase agreements may include cash, obligations
issued by the U.S. Government or its agencies or instrumentalities, and
obligations rated in the highest category by at least two nationally recognized
statistical rating organizations (“NRSROs”), or, if unrated, determined to be of
comparable quality by BlackRock pursuant to guidelines approved by the Board.
For TempCash and TempFund, however, collateral is not limited to the foregoing
and may include, for example, obligations rated in any category by NRSROs.
Additionally, collateral for a repurchase agreement may include other types of
securities that TempCash or TempFund could not hold directly without the
repurchase obligation.
The
Funds may transfer uninvested cash balances into a single joint account at the
Funds’ custodian bank, the daily aggregate balance of which will be invested in
one or more repurchase agreements.
Stand‑by
Commitments. MuniCash. The Fund may acquire
stand‑by commitments with respect to Municipal Obligations held in its
portfolio. The Fund will acquire stand‑by commitments solely to facilitate
portfolio liquidity and does not intend to exercise its rights thereunder for
trading purposes.
U.S. Government
Obligations. TempCash,
TempFund, FedFund, BlackRock Liquid Federal Trust Fund, T-Fund and
MuniCash. Each Fund may purchase obligations issued or
guaranteed by the U.S. Government or its agencies, authorities,
instrumentalities and sponsored enterprises, and related custodial receipts.
U.S. Treasury
Obligations. All
Funds. Each Fund may invest in direct obligations of the U.S.
Treasury. Each Fund may also invest in Treasury receipts where the principal and
interest components are traded separately under the Separate Trading of
Registered Interest and Principal of Securities (“STRIPS”) program.
Variable and Floating
Rate Instruments. All
Funds. Each Fund may purchase variable or floating rate notes,
which are instruments that provide for adjustments in the interest rate on
certain reset dates or whenever a specified interest rate index changes,
respectively.
Variable Rate Demand
Instruments. MuniCash. The Fund may purchase
variable rate demand instruments. Variable rate demand instruments are
tax-exempt securities that require the issuer or a third party, such as a dealer
or bank, to repurchase the security for its face value upon demand. The
instruments also pay interest at a variable rate intended to cause the
securities to trade at their face value.
When-Issued, Delayed
Delivery and Forward Commitment Transactions. All Funds. Each Fund may transact
in securities on a when-issued, delayed delivery or forward commitment basis.
Each Fund expects that commitments to purchase securities on a when-issued,
delayed delivery or forward commitment basis will not exceed 25% of the value of
its total assets absent unusual market conditions. No Fund intends to purchase
securities on a when-issued, delayed delivery or forward commitment basis for
speculative purposes but only in furtherance of its investment objective. No
Fund receives income from securities purchased on a when-issued, delayed
delivery or forward commitment basis prior to delivery of such securities.
Other
Investments
In
addition to the principal investments described above, each Fund (except as
noted below) may also invest or engage in the following investments/strategies:
Borrowing. All Funds. During periods of
unusual market conditions, each Fund is authorized to borrow money from banks or
other lenders on a temporary basis to the extent permitted by the 1940 Act, the
rules and regulations thereunder and any applicable exemptive relief. The Funds
will borrow money when BlackRock believes that the return from securities
purchased with borrowed funds will be greater than the cost of the borrowing.
Such borrowings may be secured or unsecured. No Fund will purchase portfolio
securities while borrowings in excess of 5% of such Fund’s total assets are
outstanding.
Illiquid
Investments. All
Funds. No Fund will invest more than 5% of the value of its
respective total assets in illiquid securities that it cannot sell in the
ordinary course within seven days at approximately current value.
37
Investment Company
Securities. TempCash,
TempFund, BlackRock Liquid Federal Trust Fund, FedFund, T-Fund and
MuniCash. Each Fund may invest in securities issued by other
open‑end or closed‑end investment companies, including affiliated investment
companies, as permitted by the 1940 Act. A pro
rata portion of the other investment companies’ expenses may be borne by
the Fund’s shareholders. These investments may include, as consistent with a
Fund’s investment objective and policies, certain variable rate demand
securities issued by closed‑end funds, which invest primarily in portfolios of
taxable or tax‑exempt securities. With respect to MuniCash, it is anticipated
that the payments made on variable rate demand securities issued by closed‑end
municipal bond funds will be exempt from federal income tax.
Municipal Obligations. TempCash and
TempFund. Each Fund may, when deemed appropriate by BlackRock
in light of its investment objective, invest in high quality, short-term
Municipal Obligations issued by state and local governmental issuers which carry
yields that are competitive with those of other types of money market
instruments of comparable quality.
Restricted
Securities. TempCash,
TempFund and MuniCash. Restricted securities are securities
that cannot be offered for public resale unless registered under the applicable
securities laws or that have a contractual restriction that prohibits or limits
their resale. They may include Rule 144A securities, which are privately placed
securities that can be resold to qualified institutional buyers but not to the
general public, and securities of U.S. and non-U.S. issuers that are offered
pursuant to Regulation S under the Securities Act of 1933, as amended.
Reverse Repurchase
Agreements. TempCash,
TempFund, FedFund and T‑Fund. Each Fund may enter into reverse
repurchase agreements. A Fund is permitted to invest up to one‑third of its
total assets in reverse repurchase agreements. Investments in reverse repurchase
agreements and securities lending transactions (described below) will be
aggregated for purposes of this investment limitation.
Securities
Lending. TempCash,
TempFund, FedFund and T‑Fund. Each Fund may lend its
securities with a value of up to one‑third of its total assets (including the
value of the collateral for the loan) to qualified brokers, dealers, banks and
other financial institutions for the purpose of realizing additional net
investment income through the receipt of interest on the loan. Investments in
reverse repurchase agreements (described above) and securities lending
transactions will be aggregated for purposes of this investment limitation.
Investment Risks
The
following paragraph is applicable to TempCash, TempFund and MuniCash:
Risk
is inherent in all investing. You could lose money by investing in a Fund.
Because the share price of a Fund will fluctuate, when you sell your shares they
may be worth more or less than what you originally paid for them. A Fund may
impose a fee upon the sale of your shares. An investment in a Fund is not a bank
account and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Funds’ sponsor is not required
to reimburse the Fund for losses, and you should not expect that the sponsor
will provide financial support to a Fund at any time, including during periods
of market stress.
The
following paragraph is applicable to BlackRock Liquid Federal Trust Fund,
FedFund, T-Fund and Treasury Trust Fund:
Risk
is inherent in all investing. You could lose money by investing in a Fund.
Although each Fund seeks to preserve the value of your investment at $1.00 per
share, it cannot guarantee it will do so. An investment in a Fund is not a bank
account and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Funds’ sponsor is not required
to reimburse a Fund for losses, and you should not expect that the sponsor will
provide financial support to a Fund at any time, including during periods of
market stress.
The
following is a description of certain risks of investing in the Funds. The order
of the below risk factors does not indicate the significance of any particular
risk factor.
38
Principal
Risks of Investing in the Funds
Credit
Risk. All Funds. Credit
risk refers to the possibility that the issuer of a debt security (i.e., the
borrower) will be unable or unwilling to make timely payments of interest and
principal when due or otherwise honor their obligations. Changes in an issuer’s
credit rating or the market’s perception of an issuer’s creditworthiness may
also adversely affect the value of the Fund’s investment in that issuer. The
degree of credit risk depends on both the financial condition of the issuer and
the terms of the obligation.
Discretionary
Liquidity Fee Risk. TempCash,
TempFund and MuniCash. The Board, or its delegate, has discretion to
impose a liquidity fee of up to 2% upon sale of your shares if such fee is
determined to be in the best interests of the Fund. Accordingly, your
redemptions may be subject to a liquidity fee when you sell your shares at
certain times.
Extension
Risk. TempCash and
TempFund. When interest rates rise, certain obligations will be paid off
by the obligor more slowly than anticipated, causing the value of these
securities to fall. Rising interest rates tend to extend the duration of
securities, making them more sensitive to changes in interest rates. The value
of longer-term securities generally changes more in response to changes in
interest rates than shorter-term securities. As a result, in a period of rising
interest rates, securities may exhibit additional volatility and may lose value.
Financial Services
Industry Risk. TempCash. Because of its concentration in the
financial services industry, the Fund will be more susceptible to any economic,
business, political or other developments which generally affect this industry
sector. As a result, the Fund will be exposed to a large extent to the risks
associated with that industry, such as government regulation, the availability
and cost of capital funds (including the availability and stability of deposits
in the case of deposit-taking institutions), consolidation and general economic
conditions. Financial services companies are also exposed to losses if borrowers
and other counterparties experience financial problems and/or cannot repay their
obligations.
When
interest rates go up, the value of securities issued by many types of financial
services companies generally goes down. In many countries, financial services
and the companies that provide them are regulated by governmental entities,
which can increase costs for new services or products and make it difficult to
pass increased costs on to consumers. In certain areas, deregulation of
financial services companies has resulted in increased competition and reduced
profitability for certain companies.
The
profitability of many types of financial services companies may be adversely
affected in certain market cycles, including periods of rising interest rates,
which may restrict the availability and increase the cost of capital, and
declining economic conditions, which may cause credit losses due to financial
difficulties of borrowers. Because many types of financial services companies
are vulnerable to these economic cycles, a large portion of the Fund’s
investments may lose value during such periods.
Foreign Exposure
Risk. TempCash, TempFund and
MuniCash. Securities issued or supported by foreign entities, including
foreign banks and corporations, may involve additional risks and considerations.
Extensive public information about the foreign issuer may not be available, and
unfavorable political, economic or governmental developments in the foreign
country involved could affect the payment of principal and interest.
Income
Risk. All Funds. The
Fund’s yield will vary as the short-term securities in its portfolio mature and
the proceeds are reinvested in securities with different interest rates.
Interest Rate
Risk. All Funds. Interest
rate risk is the risk that the value of a debt security may fall when interest
rates rise. In general, the market price of debt securities with longer
maturities will go up or down more in response to changes in interest rates than
the market price of shorter-term securities. Due to fluctuations in interest
rates, the market value of such securities may vary during the period
shareholders own shares of the Fund. Very low or negative interest rates may
magnify interest rate risk. During periods of very low or negative interest
rates, the Fund may be unable to maintain positive returns or pay dividends to
Fund shareholders. The Fund may be subject to a greater risk of rising interest
rates due to the recent period of historically low interest rates. The Federal
Reserve has recently begun to raise the federal funds rate as part of its
efforts to address rising inflation. There is a risk that interest rates will
continue to rise, which will likely drive down the prices of bonds and other
fixed-income securities. Changing interest rates may have unpredictable effects
on markets, may result in heightened market volatility and may detract from the
Fund’s ability to achieve its investment objective.
Market Risk and
Selection Risk. All Funds.
Market risk is the risk that one or more markets in which the Fund invests will
go down in value, including the possibility that the markets will go down
sharply and unpredictably. The value of a security or other asset may decline
due to changes in general market conditions, economic trends or events that are
not specifically related to the
39
issuer
of the security or other asset, or factors that affect a particular issuer or
issuers, exchange, country, group of countries, region, market, industry, group
of industries, sector or asset class. Local, regional or global events such as
war, acts of terrorism, the spread of infectious illness or other public health
issues like pandemics or epidemics, recessions, or other events could have a
significant impact on the Fund and its investments. Selection risk is the risk
that the securities selected by Fund management will underperform the markets,
the relevant indices or the securities selected by other funds with similar
investment objectives and investment strategies. This means you may lose money.
An
outbreak of an infectious coronavirus (COVID-19) that was first detected in
December 2019 developed into a global pandemic that has resulted in numerous
disruptions in the market and has had significant economic impact leaving
general concern and uncertainty. Although vaccines have been developed and
approved for use by various governments, the duration of the pandemic and its
effects cannot be predicted with certainty. Because the Fund invests in
short-term instruments these events have caused some instruments to have
declining yields, which may impair the results of the Fund if these conditions
persisted. The impact of this coronavirus, and other epidemics and pandemics
that may arise in the future, could affect the economies of many nations,
individual companies and the market in general ways that cannot necessarily be
foreseen at the present time.
Mortgage‑ and
Asset-Backed Securities Risks. TempCash and
TempFund. Mortgage-backed securities (residential and
commercial) and asset-backed securities represent interests in “pools” of
mortgages or other assets, including consumer loans or receivables held in
trust. Although asset-backed and commercial mortgage-backed securities (“CMBS”)
generally experience less prepayment than residential mortgage-backed
securities, mortgage-backed and asset-backed securities, like traditional
fixed-income securities, are subject to credit, interest rate, prepayment and
extension risks.
Small
movements in interest rates (both increases and decreases) may quickly and
significantly reduce the value of certain mortgage-backed securities. The Fund’s
investments in asset-backed securities are subject to risks similar to those
associated with mortgage-related securities, as well as additional risks
associated with the nature of the assets and the servicing of those assets.
These securities also are subject to the risk of default on the underlying
mortgages or assets, particularly during periods of economic downturn. Certain
CMBS are issued in several classes with different levels of yield and credit
protection. The Fund’s investments in CMBS with several classes may be in the
lower classes that have greater risks than the higher classes, including greater
interest rate, credit and prepayment risks.
Mortgage-backed
securities may be either pass-through securities or CMOs. Pass-through
securities represent a right to receive principal and interest payments
collected on a pool of mortgages, which are passed through to security holders.
CMOs are created by dividing the principal and interest payments collected on a
pool of mortgages into several revenue streams (“tranches”) with different
priority rights to portions of the underlying mortgage payments. Certain CMO
tranches may represent a right to receive interest only (“IOs”), principal only
(“POs”) or an amount that remains after floating-rate tranches are paid (an
“inverse floater”). These securities are frequently referred to as “mortgage
derivatives” and may be extremely sensitive to changes in interest rates.
Interest rates on inverse floaters, for example, vary inversely with a
short-term floating rate (which may be reset periodically). Interest rates on
inverse floaters will decrease when short-term rates increase, and will increase
when short-term rates decrease. These securities have the effect of providing a
degree of investment leverage. In response to changes in market interest rates
or other market conditions, the value of an inverse floater may increase or
decrease at a multiple of the increase or decrease in the value of the
underlying securities. If the Fund invests in CMO tranches (including CMO
tranches issued by government agencies) and interest rates move in a manner not
anticipated by Fund management, it is possible that the Fund could lose all or
substantially all of its investment. Certain mortgage-backed securities in which
the Fund may invest may also provide a degree of investment leverage, which
could cause the Fund to lose all or substantially all of its investment.
The
mortgage market in the United States has experienced difficulties that may
adversely affect the performance and market value of certain of the Fund’s
mortgage-related investments. Delinquencies and losses on mortgage loans
(including subprime and second‑lien mortgage loans) and a decline in or
flattening of real estate values (in each case as has been experienced and may
continue to be experienced in many housing markets) may exacerbate such
delinquencies and losses. Also, a number of mortgage loan originators have
experienced serious financial difficulties or bankruptcy. Reduced investor
demand for mortgage loans and mortgage-related securities and increased investor
yield requirements have caused limited liquidity in the secondary market for
mortgage-related securities, which can adversely affect the market value of
mortgage-related securities. It is possible that such limited liquidity in such
secondary markets could continue or worsen.
Asset-backed
securities entail certain risks not presented by mortgage-backed securities,
including the risk that in certain states it may be difficult to perfect the
liens securing the collateral backing certain asset-backed securities. In
addition, certain asset-backed securities are based on loans that are unsecured,
which means that there is no collateral to seize if the underlying borrower
defaults.
40
Municipal Securities
Concentration Risk. MuniCash. From time to time the
Fund may invest a substantial amount of its assets in municipal securities whose
interest is paid solely from revenues of similar projects. If the Fund
concentrates its investments in this manner, it assumes the legal and economic
risks relating to such projects and this may have a significant impact on the
Fund’s investment performance.
Municipal Securities
Risks. MuniCash. Municipal securities
risks include the ability of the issuer to repay the obligation, the relative
lack of information about certain issuers of municipal securities, and the
possibility of future legislative changes which could affect the market for and
value of municipal securities. Budgetary constraints of local, state, and
federal governments upon which the issuers may be relying for funding may also
impact municipal securities. These risks include:
General Obligation Bonds Risks — The full
faith, credit and taxing power of the municipality that issues a general
obligation bond secures payment of interest and repayment of principal. Timely
payments depend on the issuer’s credit quality, ability to raise tax revenues
and ability to maintain an adequate tax base.
Revenue Bonds Risks — Payments of interest and
principal on revenue bonds are made only from the revenues generated by a
particular facility, class of facilities or the proceeds of a special tax or
other revenue source. These payments depend on the money earned by the
particular facility or class of facilities, or the amount of revenues derived
from another source.
Private Activity Bonds Risks — Municipalities
and other public authorities issue private activity bonds to finance development
of industrial facilities for use by a private enterprise. The private enterprise
pays the principal and interest on the bond, and the issuer does not pledge its
full faith, credit and taxing power for repayment. If the private enterprise
defaults on its payments, the Fund may not receive any income or get its money
back from the investment.
Moral Obligation Bonds Risks — Moral
obligation bonds are generally issued by special purpose public authorities of a
state or municipality. If the issuer is unable to meet its obligations,
repayment of these bonds becomes a moral commitment, but not a legal obligation,
of the state or municipality.
Municipal Notes Risks — Municipal notes are
shorter term municipal debt obligations. They may provide interim financing in
anticipation of, and are secured by, tax collection, bond sales or revenue
receipts. If there is a shortfall in the anticipated proceeds, the notes may not
be fully repaid and the Fund may lose money.
Municipal Lease Obligations Risks — In a
municipal lease obligation, the issuer agrees to make payments when due on the
lease obligation. The issuer will generally appropriate municipal funds for that
purpose, but is not obligated to do so. Although the issuer does not pledge its
unlimited taxing power for payment of the lease obligation, the lease obligation
is secured by the leased property. However, if the issuer does not fulfill its
payment obligation it may be difficult to sell the property and the proceeds of
a sale may not cover the Fund’s loss.
Tax‑Exempt Status Risk — In making
investments, the Fund and its investment manager will rely on the opinion of
issuers’ bond counsel and, in the case of derivative securities, sponsors’
counsel, on the tax‑exempt status of interest on municipal obligations and
payments under tax‑exempt derivative securities. Neither the Fund nor its
investment manager will independently review the bases for those tax opinions.
If any of those tax opinions are ultimately determined to be incorrect or if
events occur after the security is acquired that impact the security’s
tax‑exempt status, the Fund and its shareholders could be subject to substantial
tax liabilities. The Internal Revenue Service (the “IRS”) has generally not
ruled on the taxability of the securities. An assertion by the IRS that a
portfolio security is not exempt from U.S. federal income tax (contrary to
indications from the issuer) could affect the Fund’s and its shareholders’
income tax liability for the current or past years and could create liability
for information reporting penalties. In addition, an IRS assertion of taxability
may impair the liquidity and the fair market value of the securities.
Prepayment
Risk. TempCash and TempFund. When
interest rates fall, certain obligations will be paid off by the obligor more
quickly than originally anticipated, and the Fund may have to invest the
proceeds in securities with lower yields. In periods of falling interest rates,
the rate of prepayments tends to increase (as does price fluctuation) as
borrowers are motivated to pay off debt and refinance at new lower rates. During
such periods, reinvestment of the prepayment proceeds by the management team
will generally be at lower rates of return than the return on the assets that
were prepaid. Prepayment reduces the yield to maturity and the average life of
the security.
Repurchase Agreements
Risk. TempCash,
TempFund, FedFund and T‑Fund. If the other party to a
repurchase agreement defaults on its obligation under the agreement, the Fund
may suffer delays and incur costs or lose money in exercising its rights under
the agreement. If the seller fails to repurchase the security and the market
value of the security declines, the Fund may lose money.
41
Risk of Investing in
the United States. All
Funds. A decrease in imports or exports, changes in trade
regulations, inflation and/or an economic recession in the United States may
have a material adverse effect on the U.S. economy and the securities listed on
U.S. exchanges. Proposed and adopted policy and legislative changes in the
United States are changing many aspects of financial, commercial, public health,
environmental, and other regulation and may have a significant effect on U.S.
markets generally, as well as on the value of certain securities. Governmental
agencies project that the United States will continue to maintain elevated
public debt levels for the foreseeable future. Although elevated debt levels do
not necessarily indicate or cause economic problems, elevated public debt
service costs may constrain future economic growth.
The
United States has developed increasingly strained relations with a number of
foreign countries. If relations with certain countries deteriorate, it could
adversely affect U.S. issuers as well as non-U.S. issuers that rely on the
United States for trade. The United States has also experienced increased
internal political discord, as well as significant challenges in managing and
containing the outbreak of COVID-19. If these trends were to continue, it may
have an adverse impact on the U.S. economy and the issuers in which the Fund
invests.
Stable Net Asset
Value Risk. BlackRock
Liquid Federal Trust Fund, FedFund, T-Fund and Treasury Trust
Fund. The Fund may not be able to maintain a stable NAV of
$1.00 per share at all times. If the Fund fails to maintain a stable NAV (or if
there is a perceived threat of such a failure), the Fund, along with other money
market funds, could be subject to increased redemption activity.
Taxability
Risk. MuniCash. The Fund intends to
minimize the payment of taxable income to shareholders by investing in
tax-exempt or municipal securities in reliance at the time of purchase on an
opinion of bond counsel to the issuer of the obligation that the interest paid
on those securities will be excludable from gross income for federal income tax
purposes and taxable income for state and local personal income tax purposes.
Such securities, however, may be determined to pay, or have paid, taxable income
subsequent to the Fund’s acquisition of the securities. In that event, the
treatment of dividends previously paid or to be paid by the Fund as
“exempt-interest dividends” could be adversely affected, subjecting the Fund’s
shareholders to increased federal income tax liabilities. If the interest paid
on any tax-exempt or municipal security held by the Fund is subsequently
determined to be taxable, the Fund will dispose of that security as soon as
reasonably practicable. In addition, future laws, regulations, rulings or court
decisions may cause interest on municipal securities to be subject, directly or
indirectly, to federal income taxation or exempt interest on state municipal
securities that are currently exempt to be subject to state or local income
taxation, or the value of state municipal securities to be subject to state or
local intangible personal property tax, or may otherwise prevent the Fund from
realizing the full current benefit of the tax-exempt status of such securities.
Any such change could also affect the market price of such securities, and thus
the value of an investment in the Fund.
Legal Opinion Risk — The Fund will rely on
legal opinions of counsel to issuers of municipal securities as to the
tax-exempt status of investments and will not do its own analysis. The status of
a municipal security as tax-exempt may be affected by events that occur after
the municipal security is issued.
Trading
Risk. BlackRock Liquid Federal Trust Fund and Treasury
Trust Fund. In selling securities prior to maturity, the Fund
may realize a price higher or lower than that paid to acquire such securities,
depending upon whether interest rates have decreased or increased since their
acquisition. In addition, shareholders in a state that imposes an income or
franchise tax should determine through consultation with their own tax advisors
whether the Fund’s interest income, when distributed by the Fund, will be
considered by the state to have retained exempt status, and whether the Fund’s
capital gain and other income, if any, when distributed, will be subject to the
state’s income or franchise tax.
Treasury Obligations
Risk. All
Funds. Direct obligations of the U.S. Treasury have
historically involved little risk of loss of principal if held to maturity.
However, due to fluctuations in interest rates, the market value of such
securities may vary during the period shareholders own shares of the Fund. In
addition, notwithstanding that U.S. Treasury obligations are backed by the full
faith and credit of the United States, circumstances could arise that could
prevent the timely payment of interest or principal, such as reaching the
legislative “debt ceiling.” Such non-payment could result in losses to the Fund
and substantial negative consequences for the U.S. economy and the global
financial system.
U.S. Government
Obligations Risk. TempCash, TempFund, FedFund, BlackRock Liquid Federal
Trust Fund, T-Fund and MuniCash. Not all U.S. Government
securities are backed by the full faith and credit of the United States.
Obligations of certain agencies, authorities, instrumentalities and sponsored
enterprises of the U.S. Government are backed by the full faith and credit of
the United States (e.g., the Government
National Mortgage Association); other obligations are backed by the right of the
issuer to borrow from the U.S. Treasury (e.g., the Federal Home Loan Banks) and others
are supported by the discretionary authority of the U.S. Government to purchase
an agency’s obligations. Still others are backed only by the credit of the
agency, authority, instrumentality or sponsored enterprise issuing the
obligation. No assurance can be given that the U.S. Government would provide
financial support to any of these entities if it is not obligated to do so by
law. In addition, circumstances could arise that could
42
prevent
the timely payment of interest or principal on U.S. Government obligations, such
as reaching the legislative “debt ceiling.” Such non-payment could result in
losses to the Fund and substantial negative consequences for the U.S. economy
and the global financial system.
Variable and Floating
Rate Instrument Risk. All Funds. Variable and floating
rate securities provide for periodic adjustment in the interest rate paid on the
securities. Certain of these securities may be subject to greater illiquidity
risk than other fixed income securities, meaning the absence of an active market
for these securities could make it difficult for the Fund to dispose of them at
any given time.
When-Issued and
Delayed Delivery Securities and Forward Commitments
Risk. All
Funds. When-issued and delayed delivery securities and forward
commitments involve the risk that the security the Fund buys will lose value
prior to its delivery. There also is the risk that the security will not be
issued or that the other party to the transaction will not meet its obligation.
If this occurs, the Fund may lose both the investment opportunity for the assets
it set aside to pay for the security and any gain in the security’s price.
Other
Risks of Investing in the Funds
Each
Fund (except as noted below) may also be subject to certain other non-principal
risks associated with its investments and investment strategies, including:
Borrowing
Risk. All
Funds. Borrowing may exaggerate changes in the NAV of Fund
shares and in the return on the Fund’s portfolio. Borrowing will cost the Fund
interest expense and other fees. The costs of borrowing may reduce the Fund’s
return. Borrowing may cause the Fund to liquidate positions when it may not be
advantageous to do so to satisfy its obligations.
Cyber Security
Risk. All
Funds. Failures or breaches of the electronic systems of the
Fund, the Fund’s adviser, distributor, and other service providers, or the
issuers of securities in which the Fund invests have the ability to cause
disruptions and negatively impact the Fund’s business operations, potentially
resulting in financial losses to the Fund and its shareholders. While the Fund
has established business continuity plans and risk management systems seeking to
address system breaches or failures, there are inherent limitations in such
plans and systems. Furthermore, the Fund cannot control the cyber security plans
and systems of the Fund’s service providers or issuers of securities in which
the Fund invests.
Expense
Risk. All
Funds. Fund expenses are subject to a variety of factors,
including fluctuations in the Fund’s net assets. Accordingly, actual expenses
may be greater or less than those indicated. For example, to the extent that the
Fund’s net assets decrease due to market declines or redemptions, the Fund’s
expenses will increase as a percentage of Fund net assets. During periods of
high market volatility, these increases in the Fund’s expense ratio could be
significant.
Illiquid Investments
Risk. All
Funds. The Fund’s illiquid investments may reduce the returns
of the Fund because it may be difficult to sell the illiquid investments at an
advantageous time or price. The Fund may be unable to pay redemption proceeds
within the time period stated in this prospectus because of unusual market
conditions, an unusually high volume of redemption requests, or other reasons.
Investment in Other
Investment Companies Risk. TempCash,
TempFund, BlackRock Liquid Federal Trust Fund, FedFund, T-Fund and
MuniCash. As with other investments, investments in other
investment companies, including exchange-traded funds (“ETFs”), are subject to
market and selection risk. In addition, if the Fund acquires shares of
investment companies, including ones affiliated with the Fund, shareholders bear
both their proportionate share of expenses in the Fund (including management and
advisory fees) and, indirectly, the expenses of the investment companies (to the
extent not offset by BlackRock through waivers). To the extent the Fund is held
by an affiliated fund, the ability of the Fund itself to hold other investment
companies may be limited.
Large Shareholder and
Large-Scale Redemption Risk. All Funds. Certain shareholders, including a
third-party investor, the Fund’s adviser or an affiliate of the Fund’s adviser,
or another entity, may from time to time own or manage a substantial amount of
Fund shares or may invest in the Fund and hold its investment for a limited
period of time. There can be no assurance that any large shareholder or large
group of shareholders would not redeem their investment or that the size of the
Fund would be maintained. Redemptions of a large number of Fund shares by these
shareholders may adversely affect the Fund’s liquidity and net assets. These
redemptions may force the Fund to sell portfolio securities to meet redemption
requests when it might not otherwise do so, which may negatively impact the
Fund. In addition, large redemptions can result in the Fund’s current expenses
being allocated over a smaller asset base, which generally could result in an
increase in the Fund’s expense ratio.
43
Municipal Securities
Risks. TempCash and
TempFund. Municipal securities risks include the ability of
the issuer to repay the obligation, the relative lack of information about
certain issuers of municipal securities, and the possibility of future
legislative changes which could affect the market for and value of municipal
securities. Budgetary constraints of local, state, and federal governments upon
which the issuers may be relying for funding may also impact municipal
securities. These risks include:
General Obligation Bonds Risks — The full
faith, credit and taxing power of the municipality that issues a general
obligation bond secures payment of interest and repayment of principal. Timely
payments depend on the issuer’s credit quality, ability to raise tax revenues
and ability to maintain an adequate tax base.
Revenue Bonds Risks — Payments of
interest and principal on revenue bonds are made only from the revenues
generated by a particular facility, class of facilities or the proceeds of a
special tax or other revenue source. These payments depend on the money earned
by the particular facility or class of facilities, or the amount of revenues
derived from another source.
Private Activity Bonds Risks —
Municipalities and other public authorities issue private activity bonds to
finance development of industrial facilities for use by a private enterprise.
The private enterprise pays the principal and interest on the bond, and the
issuer does not pledge its full faith, credit and taxing power for repayment. If
the private enterprise defaults on its payments, the Fund may not receive any
income or get its money back from the investment.
Moral Obligation Bonds Risks — Moral
obligation bonds are generally issued by special purpose public authorities of a
state or municipality. If the issuer is unable to meet its obligations,
repayment of these bonds becomes a moral commitment, but not a legal obligation,
of the state or municipality.
Municipal Notes Risks — Municipal notes
are shorter term municipal debt obligations. They may provide interim financing
in anticipation of, and are secured by, tax collection, bond sales or revenue
receipts. If there is a shortfall in the anticipated proceeds, the notes may not
be fully repaid and the Fund may lose money.
Municipal Lease Obligations Risks — In a
municipal lease obligation, the issuer agrees to make payments when due on the
lease obligation. The issuer will generally appropriate municipal funds for that
purpose, but is not obligated to do so. Although the issuer does not pledge its
unlimited taxing power for payment of the lease obligation, the lease obligation
is secured by the leased property. However, if the issuer does not fulfill its
payment obligation it may be difficult to sell the property and the proceeds of
a sale may not cover the Fund’s loss.
Tax-Exempt Status Risk — In making
investments, the Fund and its investment manager will rely on the opinion of
issuers’ bond counsel and, in the case of derivative securities, sponsors’
counsel, on the tax-exempt status of interest on municipal obligations
and payments under tax-exempt derivative securities. Neither the Fund
nor its investment manager will independently review the bases for those tax
opinions. If any of those tax opinions are ultimately determined to be incorrect
or if events occur after the security is acquired that impact the security’s
tax-exempt status, the Fund and its shareholders could be subject to substantial
tax liabilities. The IRS has generally not ruled on the taxability of the
securities. An assertion by the IRS that a portfolio security is not exempt from
U.S. federal income tax (contrary to indications from the issuer) could affect
the Fund’s and its shareholders’ income tax liability for the current or past
years and could create liability for information reporting penalties. In
addition, an IRS assertion of taxability may impair the liquidity and the fair
market value of the securities.
Operational
Risk. All Funds. The Fund
is exposed to operational risks arising from a number of factors, including, but
not limited to, human errors, processing and communication errors, errors of the
Fund’s service providers, counterparties or other third parties, failed or
inadequate internal or external processes, and technology or systems failures.
The use of certain investment strategies that involve manual or additional
processing, such as over-the-counter derivatives, increases these risks. While
service providers are required to have appropriate operational risk management
policies and procedures, their methods of operational risk management may differ
from those of the Fund in the setting of priorities, the personnel and resources
available or the effectiveness of relevant controls. The Fund and BlackRock seek
to reduce these operational risks through controls, procedures and oversight.
However, it is not possible to identify all of the operational risks that may
affect the Fund or to develop processes and controls that completely eliminate
or mitigate the occurrence or effects of such failures. The Fund, including its
performance and continued operation, and its shareholders could be negatively
impacted as a result.
Reliance on Advisor
Risk. All Funds. The Fund
is dependent upon services and resources provided by BlackRock, and therefore
BlackRock’s parent, BlackRock, Inc. BlackRock is not required to devote its full
time to the business of the Fund and there is no guarantee or requirement that
any investment professional or other employee of BlackRock will allocate a
substantial portion of his or her time to the Fund. The loss of, or changes in,
BlackRock’s personnel could have a negative effect on the performance or the
continued operation of the Fund.
44
Restricted Securities
Risk. TempCash,
TempFund and MuniCash. Limitations on the resale of restricted
securities may have an adverse effect on their marketability, and may prevent
the Fund from disposing of them promptly at advantageous prices. Restricted
securities may not be listed on an exchange and may have no active trading
market. In order to sell such securities, the Fund may have to bear the expense
of registering the securities for resale and the risk of substantial delays in
effecting the registration. Other transaction costs may be higher for restricted
securities than unrestricted securities. Restricted securities may be difficult
to value because market quotations may not be readily available, and the
securities may have significant volatility. Also, the Fund may get only limited
information about the issuer of a given restricted security, and therefore may
be less able to predict a loss. Certain restricted securities may involve a high
degree of business and financial risk and may result in substantial losses to
the Fund.
Reverse Repurchase
Agreements Risk. TempCash, TempFund, FedFund and
T‑Fund. Reverse repurchase agreements involve the sale of
securities held by the Fund with an agreement to repurchase the securities at an
agreed-upon price, date and interest payment. Reverse repurchase agreements
involve the risk that the other party may fail to return the securities in a
timely manner or at all. The Fund could lose money if it is unable to recover
the securities and the value of the collateral held by the Fund, including the
value of the investments made with cash collateral, is less than the value of
the securities. These events could also trigger adverse tax consequences for the
Fund. In addition, reverse repurchase agreements involve the risk that the
interest income earned in the investment of the proceeds will be less than the
interest expense.
Securities Lending
Risk. TempCash,
TempFund, FedFund and T‑Fund. Securities lending involves the
risk that the borrower may fail to return the securities in a timely manner or
at all. As a result, the Fund may lose money and there may be a delay in
recovering the loaned securities. The Fund could also lose money if it does not
recover the securities and/or the value of the collateral falls, including the
value of investments made with cash collateral. These events could trigger
adverse tax consequences for the Fund.
Valuation
Risk. TempCash,
TempFund and MuniCash. The price the Fund could receive
upon the sale of any particular portfolio investment may differ from the Fund’s
valuation of the investment. As a result, the price received upon the sale of an
investment may be less than the value ascribed by the Fund, and the Fund could
realize a greater than expected loss or lesser than expected gain upon the sale
of the investment. Pricing services that value fixed-income securities generally
utilize a range of market-based and security-specific inputs and assumptions, as
well as considerations about general market conditions, to establish a price.
Pricing services generally value fixed-income securities assuming orderly
transactions of an institutional round lot size, but may be held or transactions
may be conducted in such securities in smaller, odd lot sizes. Odd lots may
trade at lower prices than institutional round lots. The Fund’s ability to value
its investments may also be impacted by technological issues and/or errors by
pricing services or other third-party service providers.
45
Account
Information
Valuation of Fund Investments and Price of Fund
Shares
The
price you pay when you purchase or redeem a Fund’s shares is the NAV next
determined after confirmation of your order. The Funds calculate the NAV as
follows:
|
| |
NAV = |
|
(Value of Assets of a Share Class)
–
(Liabilities of the Share Class)
|
|
Number of Outstanding
Shares
of
the Share Class |
Each
Fund’s NAV per share is calculated by JPMorgan Chase Bank, N.A. (“JPM”) on each
day on which the New York Stock Exchange (“NYSE”) and the Federal Reserve Bank
of Philadelphia are open for business (a “Business Day”). Generally, trading in
non-U.S. securities, U.S. Government securities, money market instruments and
certain fixed-income securities is substantially completed each day at various
times prior to the close of business on the NYSE. The values of such securities
used in computing the NAV of a Fund’s shares are determined as of such times.
In
computing the NAV, each Government Fund uses the amortized cost method of
valuation as described in the SAI under “Additional Purchase and Redemption
Information.”
The
value of the securities and other assets and liabilities held by each
Institutional Fund are determined pursuant to BlackRock’s valuation policies and
procedures. BlackRock has been designated by the Board as the valuation designee
for each Institutional Fund pursuant to Rule 2a-5 under the Investment Company
Act.
Shares
of underlying open‑end funds (including money market funds) are valued by each
Institutional Fund at net asset value. Shares of underlying exchange-traded
closed‑end funds or other ETFs are valued by each Institutional Fund at their
most recent closing price.
Each
Institutional Fund values fixed-income portfolio securities using last available
bid prices or current market quotations provided by dealers or prices (including
evaluated prices) supplied by the Institutional Fund’s approved independent
third-party pricing services, each in accordance with BlackRock’s valuation
policies and procedures. Pricing services may use matrix pricing or valuation
models that utilize certain inputs and assumptions to derive values. Pricing
services generally value fixed-income securities assuming orderly transactions
of an institutional round lot size, but an Institutional Fund may hold or
transact in such securities in smaller odd lot sizes. Odd lots may trade at
lower prices than institutional round lots. An amortized cost method of
valuation may be used with respect to debt obligations with 60 days or less
remaining to maturity unless BlackRock determines in good faith that such method
does not represent fair value.
When
market quotations are not readily available or are believed by BlackRock to be
unreliable, BlackRock will fair value an Institutional Fund’s investments in
accordance with its policies and procedures. BlackRock may conclude that a
market quotation is not readily available or is unreliable if a security or
other asset or liability does not have a price source due to its lack of trading
or other reasons, if a market quotation differs significantly from recent price
quotations or otherwise no longer appears to reflect fair value, where the
security or other asset or liability is thinly traded, when there is a
significant event subsequent to the most recent market quotation, or if the
trading market on which a security is listed is suspended or closed and no
appropriate alternative trading market is available. A “significant event” is
deemed to occur if BlackRock determines, in its reasonable business judgment
prior to or at the time of pricing an Institutional Fund’s assets or
liabilities, that the event is likely to cause a material change to the closing
market price of one or more assets held by, or liabilities of, the Institutional
Fund.
Fair
value represents a good faith approximation of the value of an asset or
liability. The fair value of an asset or liability held by an Institutional Fund
is the amount the Institutional Fund might reasonably expect to receive from the
current sale of that asset or the cost to extinguish that liability in an
arm’s‑length transaction. Valuing an Institutional Fund’s investments using fair
value pricing will result in prices that may differ from current market
valuations and that may not be the prices at which those investments could have
been sold during the period in which the particular fair values were used.
46
The
NAV of TempFund is determined on each Business Day as of 8:00 a.m. (Eastern
time), 12:00 p.m. (Eastern time) and 3:00 p.m. (Eastern time).
The
NAV of BlackRock Liquid Federal Trust Fund and Treasury Trust Fund is determined
on each Business Day as of the close of regular trading on the NYSE (normally
4:00 p.m. Eastern time).
The
NAV of TempCash and MuniCash normally is determined on each Business Day as of
3:00 p.m. (Eastern time).
The
NAV of FedFund and T-Fund normally is determined on each Business Day as of 6:00
p.m. (Eastern time).
The
Funds reserve the right to advance the time for accepting purchase or redemption
orders on any day when the NYSE, bond markets (as recommended by The Securities
Industry and Financial Markets Association (“SIFMA”)) or the Federal Reserve
Bank of Philadelphia closes early1, trading on the NYSE is
restricted, an emergency arises or as otherwise permitted by the SEC. See
“Purchase of Shares” and “Redemption of Shares” for further information. In
addition, the Board may, for any Business Day, decide to change the time as of
which a Fund’s NAV is calculated in response to new developments such as altered
trading hours, or as otherwise permitted by the SEC.
In
the event the NYSE does not open for business because of an emergency or other
unanticipated event, the Funds may, but are not required to, open for purchase
or redemption transactions if the Federal Reserve wire payment system is open.
To learn whether a Fund is open for business during an emergency or an
unanticipated NYSE closing, please call (800) 441-7450.
Purchase of Shares
Purchase
orders for shares are accepted only on Business Days and must be transmitted to
the Funds’ office in Wilmington, Delaware by telephone (800-441-7450; in
Delaware 302-797-2350), through the Funds’ internet-based order entry program,
or by such other electronic means as the Funds agree to in their sole discretion
with you or your financial professional or your selected securities dealer,
broker, investment adviser, service provider or industry professional (including
BlackRock and its affiliates) (each, a “Financial Intermediary”). For the
Institutional Funds, purchase orders must be placed in dollars.
Your
purchase order must be received in proper form by the Funds or BNY Mellon
Investment Servicing (US) Inc. (“BNY Mellon”), the Funds’ transfer agent, prior
to the deadlines noted below to receive that NAV. However, a Fund (other than
TempFund) may also honor a purchase order if the Fund can verify that the
purchase order was submitted to a Financial Intermediary that is an authorized
agent of the Fund before the applicable deadline.
Your
Financial Intermediary may charge you a fee and may offer additional account
services than those described in this prospectus. Additionally, your Financial
Intermediary may have procedures for placing orders for Capital Shares that
differ from those of the Funds, such as different investment minimums or earlier
trading deadlines. Please contact your Financial Intermediary directly for more
information and details.
Please
note that TempFund does not accept trades through the NSCC Fund/SERV or
DCC&S trading platforms.
In
order to invest, a completed account application form must be submitted to, and
processed by, your Financial Intermediary or the Funds’ transfer agent and an
account number assigned. You may be asked to provide information to verify your
identity when opening an account.
Payment
for Capital Shares of a Fund may be made only in federal funds or other
immediately available funds. You may be charged
for any costs incurred by a Fund or its service providers, including any costs
incurred to recompute a Fund’s NAV, in connection with a purchase order that has
been placed but for which the Fund has not received full payment by the close of
the federal funds wire (normally 6:45 p.m. Eastern time) on the day the purchase
order was placed. This payment deadline may be extended by one Business
Day where a purchase order is processed through certain electronic platforms
where same-day cash settlement is impracticable. The Funds will notify a
shareholder or Financial Intermediary if its purchase order or payment was not
received by an applicable deadline.
1 |
SIFMA
currently recommends an early close for the bond markets on the following
dates: March 28, May 24, July 3, November 29, December 24 and
December 31, 2024. The NYSE will close early on July 3, November
29 and December 24, 2024. |
47
Each Fund reserves the right to suspend or discontinue
the offer and sale of its shares and reject or cancel any purchase order for any
reason.
Each
Fund will open for business and begin accepting purchase orders at 7:30 a.m.
(Eastern time) on any Business Day. The chart below outlines the deadlines for
receipt of purchase orders for the Funds’ Capital Shares.
|
|
|
| |
Fund |
|
Deadline (Eastern time) |
|
| |
TempCash1 |
|
|
3:00 p.m. |
|
| |
TempFund2 |
|
|
8:00 a.m., 12:00 p.m. and 3:00 p.m. |
|
| |
BlackRock
Liquid Federal Trust Fund3 |
|
|
2:30 p.m. |
|
| |
FedFund4 |
|
|
5:00 p.m. |
|
| |
T-Fund4 |
|
|
5:00 p.m. |
|
| |
Treasury
Trust Fund3 |
|
|
2:30 p.m. |
|
| |
MuniCash3 |
|
|
2:30 p.m. |
|
1 |
Purchase
orders for Shares of TempCash placed after 2:55 p.m. Eastern time will not
be transmitted by the Fund’s internet-based order entry program. Account
holders may transmit their trades during the next time window when
internet-based trading resumes. The Fund also reserves the right to limit
the amount of such orders or to reject an order for any reason.
|
2 |
Purchase
orders for Shares of TempFund transmitted by the Fund’s internet-based
order entry program will not be accepted until the time they are received
by the Fund. Due to potential time delays between the time an order is
placed and the time it is received by the Fund, purchase orders for Shares
of TempFund placed through the Fund’s internet-based order entry program
after 7:55 a.m. and 11:55 a.m. Eastern time (but prior to the
corresponding deadlines listed for TempFund in the chart above,
respectively) may not be received by the Fund in time for an account
holder to receive the NAV calculated in connection with each such
deadline, respectively. Transmitted orders will receive the NAV next
calculated after they are received by the Fund. Purchase orders for Shares
of TempFund placed after 2:55 p.m. Eastern time (but prior to 3:00 p.m.)
will not be transmitted by the Fund’s internet-based order entry program.
Account holders may transmit their trades during the next time window when
internet-based trading resumes. The Fund also reserves the right to limit
the amount of such orders or to reject an order for any reason.
|
3 |
Purchase
orders for Shares of BlackRock Liquid Federal Trust Fund, Treasury Trust
Fund and MuniCash placed after 2:25 p.m. Eastern time will not be
transmitted by the Funds’ internet-based order entry program. Account
holders may transmit their trades during the next time window when
internet-based trading resumes. The Funds also reserve the right to limit
the amount of such orders or to reject an order for any reason.
|
4 |
Purchase
orders for Shares of FedFund and T-Fund placed after 4:55 p.m. Eastern
time will not be transmitted by the Funds’ internet-based order entry
program. Account holders may transmit their trades during the next time
window when internet-based trading resumes. The Funds also reserve the
right to limit the amount of such orders or to reject an order for any
reason. |
Orders
received after the applicable deadline for any Fund (other than TempFund) on any
Business Day (or, if the Fund closes early, at such closing time) will generally
be executed on the next Business Day. Orders received for TempFund after 3:00
p.m. on any Business Day (or, if TempFund closes early, at such closing time)
will be considered received at the open of the Fund’s next Business Day and will
generally be executed at 8:00 a.m. on the next Business Day. See “Discretionary
Liquidity Fees” below for additional information.
Notwithstanding
the foregoing, on any day that the principal bond markets close early (as
recommended by SIFMA) or the Federal Reserve Bank of Philadelphia or the NYSE
closes early, a Fund may advance the time on that day by which a purchase order
must be placed so that it will be effected and begin to earn dividends that day.
Typically,
the deadline for purchases of BlackRock Liquid Federal Trust Fund and Treasury
Trust Fund is advanced to 2:00 p.m. on days before and sometimes after holiday
closings. Contact the Funds’ office at (800) 441-7450 for specific
information.
Purchases
of Capital Shares of each Fund may be effected through an Account at your
Financial Intermediary through procedures and requirements established by the
Financial Intermediary. Beneficial ownership of Capital Shares will be recorded
by the Financial Intermediary and will be reflected in Account statements. The
minimum initial investment is $50,000. Even if the Financial Intermediary does
not impose a sales charge for purchases of Shares, depending on the terms of an
Account, the Financial Intermediary may charge an Account certain fees for
automatic investment and other services provided to an Account. Information
concerning Account requirements, services and charges should be obtained from
your Financial Intermediary, and should be read in conjunction with this
prospectus. The Funds’ officers reserve the right to vary or waive any minimum
and subsequent investment requirements.
48
Certain
Accounts may be eligible for an automatic investment or redemption privilege,
commonly called a “sweep,” under which amounts necessary to decrease or increase
an Account balance to a predetermined dollar amount at the end of each day are
invested in or redeemed from a selected Fund as of the end of the day. The
frequency of investments and the minimum investment requirement will be
established by your Financial Intermediary and the Funds. In addition, your
Financial Intermediary may require a minimum amount of cash and/or securities to
be deposited in an Account to participate in the sweep program. Each investor
desiring to use this privilege should consult his/her Financial Intermediary for
details.
Shares
of the Funds are only registered for sale in the United States and certain of
its territories. Consequently, the Funds generally do not accept investments
from non-U.S. residents.
Redemption of Shares
Capital
Shares may be redeemed on a Business Day through your Financial Intermediary. If
the shares are owned beneficially through an Account, they may be redeemed in
accordance with instructions and limitations pertaining to such Account.
Each
Fund will open for business and begin accepting redemption orders at 7:30 a.m.
(Eastern time) on any Business Day. Redemption orders are accepted on Business
Days in accordance with the deadlines outlined in the chart below. If redemption
orders are received by BNY Mellon on a Business Day by the established
deadlines, payment for redeemed Fund shares will typically be wired in federal
funds on that same day. Redemption orders may be placed either in number of
shares or in dollars for the Institutional Funds.
Orders
received after the applicable deadline for any Fund (other than TempFund) on any
Business Day (or, if the Fund closes early, at such closing time) will generally
be executed on the next Business Day. Orders received for TempFund after 3:00
p.m. on any Business Day (or, if TempFund closes early, at such closing time)
will be considered received at the open of the Fund’s next Business Day and will
generally be executed at 8:00 a.m. on the next Business Day. See “Discretionary
Liquidity Fees” below for additional information.
If
you purchased shares through a Financial Intermediary, that entity may have its
own earlier deadlines for the receipt of the redemption order.
Where
a redemption order is processed through certain electronic platforms where
same-day cash settlement is impracticable, payment for redeemed shares will
generally be delayed by one Business Day.
A Fund may suspend the right of redemption or postpone
the date of payment under the conditions described under “Additional Purchase
and Redemption Information” below.
|
| |
Fund |
|
Deadline (Eastern time) |
| |
TempCash1 |
|
3:00 p.m. |
| |
TempFund2 |
|
8:00 a.m., 12:00 p.m. and 3:00 p.m. |
| |
BlackRock
Liquid Federal Trust Fund3 |
|
2:30 p.m. |
| |
FedFund4 |
|
5:00 p.m. |
| |
T-Fund4 |
|
5:00 p.m. |
| |
Treasury
Trust Fund3 |
|
2:30 p.m. |
| |
MuniCash5,6 |
|
1:00
p.m. |
1 |
Redemption
orders for Shares of TempCash placed after 2:55 p.m. Eastern time will not
be transmitted by the Fund’s internet-based order entry program. Account
holders may transmit their trades during the next time window when
internet-based trading resumes. Shareholders placing orders through a
Financial Intermediary are responsible for making certain that their
Financial Intermediary communicates the order to the Fund’s office no
later than the stated deadline. The Fund reserves the right to limit the
amount of such orders that will be paid on the same day.
|
49
2 |
Redemption
orders for Shares of TempFund transmitted by the Fund’s internet-based
order entry program will not be accepted until the time they are received
by the Fund. Due to potential time delays between the time an order is
placed and the time it is received by the Fund, redemption orders for
Shares of TempFund placed through the Fund’s internet-based order entry
program after 7:55 a.m. and 11:55 a.m. Eastern time (but prior to the
corresponding deadlines listed for TempFund in the chart above,
respectively) may not be received by the Fund in time for an account
holder to receive the NAV calculated in connection with each such
deadline, respectively. Transmitted orders will receive the NAV next
calculated after they are received by the Fund. Redemption orders for
Shares of TempFund placed after 2:55 p.m. Eastern time (but prior to 3:00
p.m.) will not be transmitted by the Fund’s internet-based order entry
program. Account holders may transmit their trades during the next time
window when internet-based trading resumes. Shareholders placing orders
through a Financial Intermediary are responsible for making certain that
their Financial Intermediary communicates the order to the Fund’s office
no later than the stated deadline. The Fund reserves the right to limit
the amount of such orders that will be paid on the same day.
|
3 |
Redemption
orders for Shares of BlackRock Liquid Federal Trust Fund and Treasury
Trust Fund placed after 2:25 p.m. Eastern time will not be transmitted by
the Fund’s internet-based order entry program. Account holders may
transmit their trades during the next time window when internet-based
trading resumes. Shareholders placing orders through a Financial
Intermediary are responsible for making certain that their Financial
Intermediary communicates the order to the Fund’s office no later than the
stated deadline. The Funds reserve the right to limit the amount of such
orders that will be paid on the same day. |
4 |
Redemption
orders for Shares of FedFund and T-Fund placed after 4:55 p.m. Eastern
time will not be transmitted by the Funds’ internet-based order entry
program. Account holders may transmit their trades during the next time
window when internet-based trading resumes. Shareholders placing orders
through a Financial Intermediary are responsible for making certain that
their Financial Intermediary communicates the order to the Funds’ office
no later than the stated deadline. The Funds reserve the right to limit
the amount of such orders that will be paid on the same day.
|
5 |
Redemption
orders for Shares of MuniCash placed after 12:55 p.m. Eastern time will
not be transmitted by the Fund’s internet-based order entry program.
Account holders may transmit their trades during the next time window when
internet-based trading resumes. Shareholders placing orders through a
Financial Intermediary are responsible for making certain that their
Financial Intermediary communicates the order to the Fund’s office no
later than the stated deadline. The Fund reserves the right to limit the
amount of such orders that will be paid on the same day.
|
6 |
MuniCash
reserves the right to limit the amount of redemption orders that will be
paid on the same day for redemption orders received after 12:00 p.m.
Eastern time. |
Notwithstanding
the foregoing, on any day that the principal bond markets close early (as
recommended by SIFMA) or the Federal Reserve Bank of Philadelphia or the NYSE
closes early, a Fund may advance the time on that day by which a redemption
order must be placed so that it will be effected that day.
Typically,
the deadline for redemption of BlackRock Liquid Federal Trust Fund and Treasury
Trust Fund is advanced to 2:00 p.m. on days before and sometimes after holiday
closings. Contact the Funds’ office at (800) 441-7450 for specific
information.
The
Funds shall have the right to redeem Capital Shares held by any Account if the
value of such shares is less than $500 (other than due to market fluctuations),
after 60 days’ prior written notice to the shareholder. If during the 60‑day
period the shareholder increases the value of its Capital Shares to $500 or
more, no such redemption shall take place. If the value of a shareholder’s
Capital Shares falls below an average of $500 in any particular calendar month,
the Account may be charged a service fee with respect to that month. Any such
redemption shall be effected at the NAV next determined after the redemption
order is entered.
In
addition, a Fund may redeem Capital Shares involuntarily under certain special
circumstances described in the SAI under “Additional Purchase and Redemption
Information”. A Financial Intermediary redeeming shares of a Fund on behalf of
its customers is responsible for transmitting orders to such Fund in accordance
with its customer agreements.
Under
normal and stressed market conditions, each Fund typically expects to meet
redemption requests by using cash or cash equivalents in its portfolio or by
selling portfolio assets to generate additional cash.
Additional Purchase and Redemption Information
Upon
receipt of a proper redemption request submitted in a timely manner and
otherwise in accordance with the redemption procedures set forth in this
prospectus, the Funds will redeem the requested shares and make a payment to you
in satisfaction thereof no later than the Business Day following the redemption
request.
A
Fund may postpone and/or suspend redemption and payment beyond one Business Day
only as follows:
|
a. |
For
any period during which there is a non-routine closure of the Federal
Reserve wire system or applicable Federal Reserve Banks;
|
|
b. |
For
any period (1) during which the NYSE is closed other than customary
week-end and holiday closings or (2) during which trading on the NYSE is
restricted; |
|
c. |
For
any period during which an emergency exists as a result of which (1)
disposal of securities owned by the Fund is not reasonably practicable or
(2) it is not reasonably practicable for the Fund to fairly determine the
NAV of shares of the Fund; |
|
d. |
For
any period during which the SEC has, by rule or regulation, deemed that
(1) trading shall be restricted or (2) an emergency exists;
|
|
e. |
For
any period that the SEC may by order permit for your protection; or
|
|
f. |
For
any period during which the Fund, as part of a necessary liquidation of
the Fund, has properly postponed and/or suspended redemption of shares and
payment in accordance with federal securities laws (as discussed below).
|
50
If
the Board, including a majority of the non-interested Trustees, determines
either that (1) a Fund has invested, at the end of a business day, less than 10%
of its total assets in weekly liquid assets, or (2) in the case of a Government
Fund, such Government Fund’s calculated NAV per share has deviated from $1.00 or
such deviation is likely to occur; then the Board, subject to certain
conditions, may in the case of a Fund that the Board has determined to liquidate
irrevocably, suspend redemptions and payment of redemption proceeds in order to
facilitate the permanent liquidation of the Fund in an orderly manner. A Fund,
prior to suspending redemptions, will notify the SEC of its decision to
liquidate and suspend redemptions. If this were to occur, it would likely result
in a delay in your receipt of your redemption proceeds.
Market
timing is an investment technique involving frequent short-term trading of
mutual fund shares designed to exploit market movements or inefficiencies in the
way a mutual fund prices its shares. The Board has not adopted a market timing
policy for BlackRock Liquid Federal Trust Fund, FedFund, T-Fund and Treasury
Trust Fund because the Funds seek to maintain a stable NAV of $1.00 per share
and generally the Funds’ shares are used by investors for short-term investment
or cash management purposes. The Board has not adopted a market timing policy
for TempCash, TempFund and MuniCash because the Funds’ shares are generally used
by investors for short-term investment or cash management purposes. There can be
no assurances, however, that the Funds may not, on occasion, serve as a
temporary or short-term investment vehicle for those who seek to market time
funds offered by other investment companies.
Under certain circumstances, if no activity
occurs in an account within a time period specified by state law, a
shareholder’s shares in the Fund may be transferred to that state.
Discretionary Liquidity Fees
Under
Rule 2a-7, the Board, or its delegate, is permitted to impose a discretionary
liquidity fee up to 2% on the value of shares redeemed, if such fee is
determined to be in the best interests of an Institutional Fund.
Discretionary
liquidity fees, if imposed, may be terminated at any time at the discretion of
the Board, or its delegate, if the Board, or its delegate, determines that it is
no longer in the best interests of the Institutional Fund.
Under
certain circumstances, an Institutional Fund may pay redemptions without adding
a discretionary liquidity fee to the redemption amount if the Institutional Fund
can verify that the redemption order was submitted to the Fund’s authorized
agent before the Board, or its delegate, imposed a discretionary liquidity fee.
The
Board generally expects that a discretionary liquidity fee would be imposed, if
at all, during periods of market stress.
Financial
Intermediaries will be required promptly to take such actions reasonably
requested by an Institutional Fund or its agent to implement, modify or remove,
or to assist the Institutional Fund in implementing, modifying or removing, a
discretionary liquidity fee established by the Board, or its delegate.
Distribution and Shareholder Servicing Payments
Capital Shares Shareholder Services Plan
Financial
Intermediaries may purchase Capital Shares. Pursuant to a Shareholder Services
Plan adopted by the Board, the Funds will enter into an agreement with each
Financial Intermediary that purchases Capital Shares. The agreement will require
the Financial Intermediary to provide services to its customers who are the
beneficial owners of such shares in consideration of the payment of up to 0.05%
(on an annualized basis) of the average daily NAV of the Capital Shares held by
the Financial Intermediary. Such services are described more fully in the SAI
under “Management of the Funds—Service Organizations.” Under the terms of the
agreements, Financial Intermediaries are required to provide to their customers
a schedule of any fees that they may charge customers in connection with their
investments in Capital Shares.
The
Funds also offer other share classes which may have higher or lower levels of
expenses depending on, among other things, the services provided to
shareholders.
Other Payments by BlackRock
From
time to time, BlackRock, the Funds’ distributor or their affiliates also may pay
a portion of the fees for administrative, networking, recordkeeping,
sub-transfer agency, sub-accounting and shareholder services at its or their own
expense and out of its or their profits. BlackRock, the Funds’ distributor and
their affiliates may also compensate affiliated and unaffiliated Financial
51
Intermediaries
for the sale and distribution of shares of the Funds. These payments would be in
addition to the Fund payments described in this prospectus and may be a fixed
dollar amount, may be based on the number of customer accounts maintained by the
Financial Intermediary, may be based on a percentage of the value of shares sold
to, or held by, customers of the Financial Intermediary or may be calculated on
another basis. The aggregate amount of these payments by BlackRock, the Funds’
distributor and their affiliates may be substantial and, in some circumstances,
may create an incentive for a Financial Intermediary, its employees or
associated persons to recommend or sell shares of the Funds to you.
Please
contact your Financial Intermediary for details about payments it may receive
from the Funds or from BlackRock, the Funds’ distributor or their affiliates.
For more information, see the SAI.
Dividends and Distributions
Each
Fund declares dividends daily and distributes substantially all of its net
investment income to shareholders monthly. Shares begin accruing dividends on
the day the purchase order for the shares is effected and continue to accrue
dividends through the day before such shares are redeemed. Unless they are
reinvested, dividends are paid monthly generally by wire transfer.
Shareholders’
dividends are automatically reinvested in additional full and fractional shares
of the same class of shares with respect to which such dividends are declared.
Reinvested dividends are available for redemption on the following Business Day.
Reinvested dividends receive the same tax treatment as dividends paid in cash.
Federal Taxes
Distributions
paid by TempCash, TempFund, BlackRock Liquid Federal Trust Fund, FedFund, T‑Fund
and Treasury Trust Fund will generally be taxable to shareholders. Each of these
Funds expects that all, or virtually all, of its distributions will consist of
ordinary income that is not eligible for the reduced rates applicable to
qualified dividend income. You will be subject to income tax on these
distributions regardless of whether they are paid in cash or reinvested in
additional shares. The one major exception to these tax principles is that
distributions on shares held in an individual retirement account (“IRA”) (or
other tax‑qualified plan) will not be taxable until you withdraw or receive
distributions from the plan.
MuniCash
anticipates that substantially all of its income dividends will be
“exempt-interest dividends,” which are generally exempt from regular federal
income taxes. Interest on indebtedness incurred by a shareholder to purchase or
carry shares of the Fund generally will not be deductible for federal income tax
purposes. Exempt-interest dividends will also be considered along with other
adjusted gross income in determining whether any Social Security or railroad
retirement payments received by you are subject to federal income taxes.
MuniCash
generally will only purchase a tax‑exempt or municipal security if it is
accompanied by an opinion of counsel to the issuer, which is delivered on the
date of issuance of the security, that the interest paid on such security is
excludable from gross income for relevant income tax purposes (i.e., “tax-exempt”). There is a possibility
that events occurring after the date of issuance of a security, or after the
Fund’s acquisition of a security, may result in a determination that the
interest on that security is, in fact, includable in gross income for federal or
state income tax purposes retroactively to its date of issue. Such a
determination may cause a portion of prior distributions received by
shareholders to be taxable to those shareholders in the year of receipt.
Investors
that are generally exempt from U.S. tax on interest income, such as IRAs, other
tax advantaged accounts, tax‑exempt entities and non‑U.S. persons, will not gain
additional benefit from the tax‑exempt status of exempt-interest dividends paid
by MuniCash. Because the Fund’s pre‑tax returns will tend to be lower than those
of funds that own taxable debt instruments of comparable quality, shares of the
Fund will normally not be suitable investments for those kinds of investors.
Distributions
derived from taxable interest income or capital gains on portfolio securities,
if any, will be subject to federal income taxes and will generally be subject to
state and local income taxes. If you redeem shares of a Fund, you generally will
be treated as having sold your shares and any gain on the transaction may be
subject to tax.
Each
Fund will be required in certain cases to withhold and remit to the United
States Treasury a percentage of taxable ordinary income or capital gain
dividends paid to any non‑corporate shareholder who (1) has failed to
provide a correct tax identification number, (2) is subject to back‑up
withholding by the IRS for failure to properly include on his or her return
payments of taxable interest or dividends, or (3) has failed to certify to
the Funds that he or she is not subject to back‑up withholding or that he or she
is an “exempt recipient.” Backup withholding is not an additional tax. Any
amount withheld generally may be allowed as a refund or a credit against a
shareholder’s federal income tax liability provided the required information is
timely provided to the IRS.
A
3.8% Medicare tax is imposed on the net investment income (which includes, but
is not limited to, interest, dividends and net gain from investments) of U.S.
individuals with income exceeding $200,000, or $250,000 if married filing
jointly, and of trusts and estates. Net investment income does not include
exempt-interest dividends received from a Fund.
52
The
discussion above relates solely to U.S. federal income tax law as it applies to
U.S. persons. Nonresident aliens, foreign corporations and other foreign
investors in a Fund whose investment is not connected to a U.S. trade or
business of the investor may be eligible for an exemption from U.S. federal
income tax on Fund distributions properly reported by the Fund as attributable
to U.S.-source interest income and capital gains of a Fund. Tax may apply to
such distributions, however, if the recipient’s investment in a Fund is
connected to a trade or business of the recipient in the United States or if the
recipient is present in the United States for 183 days or more in a year and
certain other conditions are met.
Separately,
a 30% withholding tax is currently imposed on U.S.-source dividends, interest
and other income items paid to (i) certain foreign financial institutions
and investment funds, and (ii) certain other foreign entities. To avoid
withholding, foreign financial institutions and investment funds will generally
either need to (a) collect and report to the IRS detailed information
identifying their U.S. accounts and U.S. account holders, comply with due
diligence procedures for identifying U.S. accounts and withhold tax on certain
payments made to noncomplying foreign entities and account holders or (b) if an
intergovernmental agreement is entered into and implementing legislation is
adopted, comply with the agreement and legislation. Other foreign entities will
generally either need to provide detailed information identifying each
substantial U.S. owner or certify there are no such owners.
All
foreign investors should consult their own tax advisors regarding the tax
consequences in their country of residence of an investment in a Fund.
Because
each of TempCash, TempFund and MuniCash offers and redeems its shares using a
floating NAV, a redeeming shareholder may realize gains and losses because of
differences between the NAV at which shares are acquired and the NAV at which
shares are redeemed. Ordinarily, any gains and losses realized would have to be
accounted for separately. In addition, because of the so-called “wash sale”
rules, any loss realized by a shareholder on a redemption of Fund shares would
ordinarily be disallowed to the extent such shareholder acquired new shares of
the same Fund within 30 days before or after such a redemption.
The
Treasury Department and IRS have determined not to apply the wash sale rules to
the redemption of investment company shares if the investment company is
regulated as, and holds itself out as, a money market fund under Rule 2a-7 of
the 1940 Act and has a floating rate NAV at the time of redemption or has a
fixed NAV and the shareholder has adopted the simplified, aggregate accounting
method described in the following sentence. In addition, a shareholder in a
money market fund (whether or not it has a floating NAV) may elect to adopt a
simplified, aggregate accounting method under which gains and losses can be
netted based on the shareholder’s taxable year rather than reported separately.
Shareholders are urged to consult their tax advisors before deciding to adopt
such accounting method.
If
any of TempCash, TempFund and/or MuniCash imposes a discretionary liquidity fee
on share redemptions, the amount that would ordinarily be payable to a redeeming
shareholder of the Fund will be reduced, consequently reducing the amount of
gain, or increasing the amount of loss, that would otherwise be reportable for
income tax purposes. The discretionary liquidity fee cannot be separately
claimed as a deduction.
Any
such discretionary liquidity fee will constitute an asset of the imposing Fund
and will serve to benefit non-redeeming shareholders. However, the Funds do not
intend to distribute such fees to non-redeeming shareholders. Such fees may,
however, raise an Institutional Fund’s NAV, increasing the taxable income or
reducing the deductible losses of shareholders that redeem their shares at a
later time when such fees are not being charged. If a Fund receives
discretionary liquidity fees, it will consider the appropriate tax treatment of
such fees to the Fund at such time. However, due to a lack of guidance, the tax
consequences of liquidity fees to the Fund and the shareholders is unclear and
may differ from that described in this section.
State and Local Taxes
Shareholders
may also be subject to state and local taxes on distributions. State income
taxes may not apply, however, to the portions of a Fund’s distributions, if any,
that are attributable to interest on certain U.S. government securities and
interest on securities of that state or localities within that state.
The
Funds are generally required to report to each shareholder and to the IRS the
amount of Fund distributions to that shareholder, including both taxable and
exempt-interest dividends. This is not required, however, for distributions paid
to certain types of shareholders that are “exempt recipients,” including foreign
and domestic corporations, IRAs, tax‑exempt organizations, and the U.S. federal
and state governments and their agencies and instrumentalities. As a result,
some shareholders may not receive Forms 1099‑DIV or 1099‑INT with respect to all
distributions received from a Fund. BNY Mellon, as transfer agent, will send
each Fund’s shareholders, or their authorized representatives, an annual
statement reporting the amount, if any, of dividends and distributions made
during each year and their federal tax treatment. Shareholders are encouraged to
retain and use this annual statement for year-end and/or tax reporting purposes.
The
foregoing is only a summary of certain tax considerations under current law,
which may be subject to change in the future. You should consult your tax
advisor for further information regarding federal, state, local and/or foreign
tax consequences relevant to your specific situation. More information about
taxes is included in the SAI.
53
Management
of the Funds
BlackRock
BlackRock,
each Fund’s investment manager, manages the Fund’s investments and its business
operations subject to the oversight of the Board. While BlackRock is ultimately
responsible for the management of the Funds, it is able to draw upon the
trading, research and expertise of its asset management affiliates for portfolio
decisions and management with respect to certain portfolio securities. BlackRock
is an indirect, wholly-owned subsidiary of BlackRock, Inc.
BlackRock,
a registered investment adviser, was organized in 1994 to perform advisory
services for investment companies and has its principal offices at 100 Bellevue
Parkway, Wilmington, Delaware 19809. BlackRock International Limited (the
“Sub-Adviser”), a registered investment adviser organized in 1995, is an
affiliate of BlackRock and acts as sub-adviser for TempCash and TempFund.
BlackRock and its affiliates had approximately $10.009 trillion in
investment company and other portfolio assets under management as of December
31, 2023.
The
Trust has entered into a management agreement (the “Management Agreement”) with
BlackRock under which BlackRock provides certain investment advisory,
administrative and accounting services to the Funds. Each of TempCash, TempFund,
and MuniCash pays BlackRock a management fee, computed daily and payable
monthly, which is based on such Fund’s average daily net assets and calculated
as follows:
|
|
|
| |
Fund |
|
TempFund |
|
TempCash
and MuniCash
|
Management
Fee |
|
.350% of the first $1 billion |
|
.350% of the first $1 billion |
| |
.300% of the next $1 billion |
|
.300% of the next $1 billion |
| |
.250% of the next $1 billion |
|
.250% of the next $1 billion |
| |
.200% of the next $1 billion |
|
.200% of the next $1 billion |
| |
.195% of the next $1 billion |
|
.195% of the next $1 billion |
| |
.190% of the next $1 billion |
|
.190% of the next $1 billion |
| |
.180% of the next $1 billion |
|
.185% of the next $1 billion |
| |
.175% of the next $1 billion |
|
.180% of amounts in excess |
| |
.170%
of amounts in excess
of $8
billion. |
|
of $7 billion. |
The
management fee for BlackRock Liquid Federal Trust Fund, FedFund, T‑Fund and
Treasury Trust Fund is equal to Calculation A plus Calculation B as follows:
|
| |
BlackRock
Liquid Federal Trust Fund, FedFund, T‑Fund and Treasury Trust
Fund |
| |
Calculation
A |
|
Calculation
B |
.175%
of the first $1 billion* |
|
.175% of the first $1 billion** |
.150%
of the next $1 billion* |
|
.150% of the next $1 billion** |
.125%
of the next $1 billion* |
|
.125% of the next $1 billion** |
.100%
of the next $1 billion* |
|
.100% of amounts in excess of $3
billion.** |
.095%
of the next $1 billion* |
|
|
.090%
of the next $1 billion* |
|
|
.085%
of the next $1 billion* |
|
|
.080%
of amounts in excess of $7 billion.* |
|
|
* |
Based
on the combined average daily net assets of BlackRock Liquid Federal Trust
Fund, FedFund, T‑Fund and Treasury Trust Fund. |
** |
Based
on the average daily net assets of the Fund whose management fee is being
calculated. |
Under
the Management Agreement, BlackRock is authorized to engage sub‑contractors to
provide any or all of the services provided for under the Management Agreement.
BlackRock has engaged JPM to provide certain administrative services with
respect to the Trust. Any fees payable to JPM do not affect the fees payable by
the Funds to BlackRock.
54
BlackRock
has agreed to cap each Fund’s combined management fees plus miscellaneous/other
expenses (excluding: (i) interest, taxes, dividends tied to short sales,
brokerage commissions, and other expenditures which are capitalized in
accordance with generally accepted accounting principles; (ii) the Fund’s
pro rata share of the fees and expenses incurred indirectly by the Fund as a
result of investing in other investment companies; (iii) other expenses
attributable to, and incurred as a result of, the Fund’s investments; and
(iv) extraordinary expenses (including litigation expenses) not incurred in
the ordinary course of the Fund’s business, if any), of each share class of the
Funds at the levels shown below and in a Fund’s fees and expenses table in the
“Fund Overview” section of this prospectus. Items (i), (ii), (iii) and (iv) in
the preceding sentence are referred to in this prospectus as “Dividend Expense,
Interest Expense, Acquired Fund Fees and Expenses and certain other Fund
expenses.” To achieve these expense caps, BlackRock has agreed to waive or
reimburse fees or expenses for Capital Shares if these expenses exceed a certain
limit as indicated in the table below.
|
| |
Fund |
|
Contractual Caps1 on Combined Management Fees and Miscellaneous/Other Expenses2 (excluding certain Fund
expenses) |
| |
TempCash |
|
0.18% |
| |
TempFund |
|
0.18% |
| |
BlackRock
Liquid Federal Trust Fund |
|
0.17% |
| |
FedFund |
|
0.17% |
| |
T‑Fund |
|
0.17% |
| |
Treasury
Trust Fund |
|
0.17% |
| |
MuniCash |
|
0.20% |
1 |
The
contractual caps are in effect through June 30, 2025. The contractual
agreement may be terminated upon 90 days’ notice by a majority of the
non‑interested trustees of the Trust or by a vote of a majority of the
outstanding voting securities of the Fund. |
2 |
As
a percentage of average daily net assets. |
BlackRock
and BlackRock Investments, LLC, the Funds’ distributor, have voluntarily agreed
to waive a portion of their respective fees and/or reimburse operating expenses
to enable the Funds to maintain minimum levels of daily net investment income.
BlackRock and BlackRock Investments, LLC may discontinue this waiver and/or
reimbursement at any time without notice.
For
the fiscal year ended October 31, 2023, the aggregate management fee rates,
net of any applicable waivers and/or reimbursements, paid by the Funds to
BlackRock, as a percentage of each Fund’s average daily net assets, were as
follows:
|
| |
Fund |
|
Management Fee Rates (Net of Applicable Waivers) |
| |
TempCash |
|
0.17% |
| |
TempFund |
|
0.16% |
| |
BlackRock
Liquid Federal Trust Fund |
|
0.15% |
| |
FedFund |
|
0.17% |
| |
T-Fund |
|
0.17% |
| |
Treasury
Trust Fund |
|
0.17% |
| |
MuniCash |
|
0.19% |
The
services provided by BlackRock are described further in the SAI under
“Management of the Funds.”
BlackRock
has entered into a sub-advisory agreement with the Sub-Adviser, with respect to
TempCash and TempFund, under which BlackRock pays the Sub-Adviser for services
it provides for that portion of each Fund for which it acts as sub-adviser a fee
equal to a percentage of the management fee paid to BlackRock under the
Management Agreement.
A
discussion regarding the basis for the Board’s approval of the Management
Agreement is available in the Trust’s annual report to shareholders for the
fiscal year ended October 31, 2023. A discussion of the basis for the
Board’s approval of the sub-advisory agreement with the Sub-Adviser with respect
to TempCash and TempFund is available in the Trust’s annual report to
shareholders for the fiscal year ended October 31, 2023.
55
From
time to time, a manager, analyst, or other employee of BlackRock or its
affiliates may express views regarding a particular asset class, company,
security, industry, or market sector. The views expressed by any such person are
the views of only that individual as of the time expressed and do not
necessarily represent the views of BlackRock or any other person within the
BlackRock organization. Any such views are subject to change at any time based
upon market or other conditions and BlackRock disclaims any responsibility to
update such views. These views may not be relied on as investment advice and,
because investment decisions for the Funds are based on numerous factors, may
not be relied on as an indication of trading intent on behalf of the Funds.
BlackRock,
BlackRock Investments, LLC, the Funds’ distributor, and/or their affiliates may
make payments for subaccounting, administrative and/or shareholder processing
services that are in addition to any shareholder servicing and processing fees
paid by the Funds.
BlackRock
or its affiliates will use at least 5% of BlackRock’s net revenue from its
management fee from BlackRock Liquid Federal Trust Fund to further educational
initiatives. BlackRock will make a contribution to an educational initiative at
least annually, with BlackRock maintaining the option to increase, decrease or
terminate this contribution in its sole discretion at any time.
Additionally,
BlackRock may at its discretion enter into a license or other agreement (an
“Agreement”) with one or more educational organizations from time to time.
Pursuant to the relevant Agreement, the organization would grant BlackRock a
license permitting BlackRock to use the organization’s name and logo. No
organization will provide any investment advisory services to BlackRock or
BlackRock Liquid Federal Trust Fund or participate in, or have any influence on,
the day-to-day operations of, BlackRock Liquid Federal Trust Fund.
Conflicts of Interest
The
investment activities of BlackRock and its affiliates (including BlackRock, Inc.
and its subsidiaries (collectively, the “Affiliates”)), and their respective
directors, officers or employees, in the management of, or their interest in,
their own accounts and other accounts they manage, may present conflicts of
interest that could disadvantage the Funds and their shareholders.
BlackRock
and its Affiliates provide investment management services to other funds and
discretionary managed accounts that may follow investment programs similar to
that of the Funds. BlackRock and its Affiliates are involved worldwide with a
broad spectrum of financial services and asset management activities and may
engage in the ordinary course of business in activities in which their interests
or the interests of their clients may conflict with those of the Funds.
BlackRock or one or more Affiliates act or may act as an investor, research
provider, investment manager, commodity pool operator, commodity trading
advisor, financier, underwriter, adviser, trader, lender, index provider, agent
and/or principal, and have other direct and indirect interests in securities,
currencies, commodities, derivatives and other instruments in which the Funds
may directly or indirectly invest. The Funds may invest in securities of, or
engage in other transactions with, companies with which an Affiliate has
significant debt or equity investments or other interests. The Funds may also
invest in issuances (such as structured notes) by entities for which an
Affiliate provides and is compensated for cash management services relating to
the proceeds from the sale of such issuances. The Funds also may invest in
securities of, or engage in other transactions with, companies for which an
Affiliate provides or may in the future provide research coverage. An Affiliate
may have business relationships with, and purchase, or distribute or sell
services or products from or to, distributors, consultants or others who
recommend the Funds or who engage in transactions with or for the Funds, and may
receive compensation for such services. BlackRock or one or more Affiliates may
engage in proprietary trading and advise accounts and funds that have investment
objectives similar to those of the Funds and/or that engage in and compete for
transactions in the same types of securities, currencies and other instruments
as the Funds. This may include transactions in securities issued by other
open-end and closed-end investment companies (which may include investment
companies that are affiliated with the Funds and BlackRock, to the extent
permitted under the 1940 Act). The trading activities of BlackRock and these
Affiliates are carried out without reference to positions held directly or
indirectly by the Funds and may result in BlackRock or an Affiliate having
positions in certain securities that are senior or junior to, or have interests
different from or adverse to, the securities that are owned by the Funds.
Neither
BlackRock nor any Affiliate is under any obligation to share any investment
opportunity, idea or strategy with the Funds. As a result, an Affiliate may
compete with the Funds for appropriate investment opportunities. The results of
a Fund’s investment activities, therefore, may differ from those of an Affiliate
and of other accounts managed by BlackRock or an Affiliate, and it is possible
that a Fund could sustain losses during periods in which one or more Affiliates
and other accounts achieve profits on their trading for proprietary or other
accounts. The opposite result is also possible.
In
addition, the Funds may, from time to time, enter into transactions in which
BlackRock or an Affiliate or their directors, officers or employees or other
clients have an adverse interest.
56
Furthermore,
transactions undertaken by clients advised or managed by BlackRock or its
Affiliates may adversely impact the Funds. Transactions by one or more clients
or BlackRock or its Affiliates or their directors, officers or employees, may
have the effect of diluting or otherwise disadvantaging the values, prices or
investment strategies of the Funds. The Funds’ activities may be limited because
of regulatory restrictions applicable to BlackRock or one or more Affiliates
and/or their internal policies designed to comply with such restrictions.
Under
a securities lending program approved by the Board, the Trust, on behalf of each
Fund, has retained BlackRock Investment Management, LLC, an Affiliate of
BlackRock, to serve as the securities lending agent for the Funds to the extent
that the Funds participate in the securities lending program. For these
services, the securities lending agent will receive a fee from the Funds,
including a fee based on the returns earned on the Funds’ investment of the cash
received as collateral for the loaned securities. In addition, one or more
Affiliates may be among the entities to which the Funds may lend their portfolio
securities under the securities lending program.
The
activities of BlackRock and its Affiliates and their respective directors,
officers or employees, may give rise to other conflicts of interest that could
disadvantage the Funds and their shareholders. BlackRock has adopted policies
and procedures designed to address these potential conflicts of interest. See
the SAI for further information.
Master/Feeder Structure
None
of the Funds are currently organized in a master feeder structure but may in the
future determine to convert to or reorganize as a feeder fund. A fund that
invests all of its assets in a corresponding “master” fund may be known as a
feeder fund. Investors in a feeder fund will acquire an indirect interest in the
corresponding master fund. A master fund may accept investments from multiple
feeder funds, and all the feeder funds of a given master fund bear the master
fund’s expenses in proportion to their assets. This structure may enable the
feeder funds to reduce costs through economies of scale. A larger investment
portfolio may also reduce certain transaction costs to the extent that
contributions to and redemptions from a master fund from different feeders may
offset each other and produce a lower net cash flow. However, each feeder fund
can set its own transaction minimums, fund‑specific expenses, and other
conditions. This means that one feeder fund could offer access to the same
master fund on more attractive terms, or could experience better performance,
than another feeder fund. In addition, large purchases or redemptions by one
feeder fund could negatively affect the performance of other feeder funds that
invest in the same master fund. Whenever a master fund holds a vote of its
feeder funds, a fund that is a feeder fund investing in that master fund will
pass the vote through to its own shareholders. Smaller feeder funds may be
harmed by the actions of larger feeder funds. For example, a larger feeder fund
could have more voting power than a smaller feeder fund over the operations of
its master fund.
57
Financial
Highlights
Financial Performance of the Funds
The
Financial Highlights tables are intended to help you understand the financial
performance of the Capital Shares of each Fund for the periods shown. Certain
information reflects financial results for a single Fund share. The total
returns in the table represent the rate that an investor would have earned or
lost on an investment in the indicated Fund (assuming reinvestment of all
dividends and/or distributions). The information has been audited by Deloitte
& Touche LLP, whose report, along with each Fund’s financial statements, is
included in the Trust’s Annual Report, which is available upon request.
TempCash
There
were no Capital Shares of TempCash outstanding as of October 31, 2023; as a
result, the table below sets forth selected financial data for an Institutional
Share of TempCash outstanding throughout each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional |
|
(For a
share outstanding throughout each period) |
|
Year Ended 10/31/23 |
|
|
Year Ended 10/31/22 |
|
|
Year Ended 10/31/21 |
|
|
Year Ended 10/31/20 |
|
|
Year Ended 10/31/19 |
|
Net
asset value, beginning of year |
|
$ |
1.0000 |
|
|
$ |
1.0006 |
|
|
$ |
1.0009 |
|
|
$ |
1.0006 |
|
|
$ |
1.0003 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
0.0488 |
|
|
|
0.0119 |
|
|
|
0.0005 |
|
|
|
0.0084 |
|
|
|
0.0233 |
|
Net
realized and unrealized gain (loss) |
|
|
(0.0002 |
)(a) |
|
|
(0.0026 |
) |
|
|
(0.0003 |
) |
|
|
0.0004 |
|
|
|
0.0005 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase from investment operations |
|
|
0.0486 |
|
|
|
0.0093 |
|
|
|
0.0002 |
|
|
|
0.0088 |
|
|
|
0.0238 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Distributions(b) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.0482 |
) |
|
|
(0.0099 |
) |
|
|
(0.0005 |
) |
|
|
(0.0085 |
) |
|
|
(0.0235 |
) |
From
net realized gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.0000 |
)(c) |
|
|
(0.0000 |
)(c) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
(0.0482 |
) |
|
|
(0.0099 |
) |
|
|
(0.0005 |
) |
|
|
(0.0085 |
) |
|
|
(0.0235 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
1.0004 |
|
|
$ |
1.0000 |
|
|
$ |
1.0006 |
|
|
$ |
1.0009 |
|
|
$ |
1.0006 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Total
Return(d) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Based
on net asset value |
|
|
4.97 |
% |
|
|
0.94 |
% |
|
|
0.02 |
% |
|
|
0.88 |
% |
|
|
2.41 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Ratios
to Average Net Assets |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Total
expenses |
|
|
0.22 |
% |
|
|
0.26 |
% |
|
|
0.24 |
% |
|
|
0.23 |
% |
|
|
0.26 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses after fees waived and/or reimbursed |
|
|
0.18 |
% |
|
|
0.17 |
% |
|
|
0.17 |
% |
|
|
0.18 |
% |
|
|
0.18 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
4.88 |
% |
|
|
1.19 |
% |
|
|
0.05 |
% |
|
|
0.84 |
% |
|
|
2.33 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Supplemental
Data |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000) |
|
$ |
13,151,148 |
|
|
$ |
8,658,551 |
|
|
$ |
5,786,777 |
|
|
$ |
10,638,146 |
|
|
$ |
10,035,653 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The
amounts reported for a share outstanding may not accord with the change in
aggregate gains and losses in securities for the fiscal period due to the
timing of capital share transactions in relation to the fluctuating market
values of the Fund’s underlying securities. |
(b) |
Distributions
for annual periods determined in accordance with U.S. federal income tax
regulations. |
(c) |
Amount
is greater than $(0.00005) per share. |
(d) |
Where
applicable, assumes the reinvestment of distributions.
|
58
TempFund
The
table below sets forth selected financial data for a Capital Share of TempFund
outstanding throughout each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Capital |
|
(For a
share outstanding throughout each period) |
|
Year Ended 10/31/23 |
|
|
Year Ended 10/31/22 |
|
|
Year Ended 10/31/21 |
|
|
Period from 07/07/20(a) to 10/31/20 |
|
Net
asset value, beginning of period |
|
$ |
1.0000 |
|
|
$ |
1.0005 |
|
|
$ |
1.0008 |
|
|
$ |
1.0010 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
0.0496 |
|
|
|
0.0196 |
|
|
|
0.0002 |
|
|
|
0.0002 |
|
Net
realized and unrealized (loss) |
|
|
(0.0012 |
)(b) |
|
|
(0.0106 |
) |
|
|
(0.0002 |
) |
|
|
(0.0001 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase from investment operations |
|
|
0.0484 |
|
|
|
0.0090 |
|
|
|
0.0000 |
|
|
|
0.0001 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
Distributions(c) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.0479 |
) |
|
|
(0.0095 |
) |
|
|
(0.0003 |
) |
|
|
(0.0002 |
) |
From
net realized gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.0001 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
(0.0479 |
) |
|
|
(0.0095 |
) |
|
|
(0.0003 |
) |
|
|
(0.0003 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of period |
|
$ |
1.0005 |
|
|
$ |
1.0000 |
|
|
$ |
1.0005 |
|
|
$ |
1.0008 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
Total
Return(d) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Based
on net asset value |
|
|
4.94 |
% |
|
|
0.90 |
% |
|
|
0.00 |
%(e) |
|
|
0.01 |
%(f)(g) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
Ratios
to Average Net Assets |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Total
expenses |
|
|
0.32 |
% |
|
|
0.30 |
% |
|
|
0.28 |
% |
|
|
0.27 |
%(h) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses after fees waived and/or reimbursed |
|
|
0.23 |
% |
|
|
0.22 |
% |
|
|
0.19 |
% |
|
|
0.23 |
%(h) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
4.96 |
% |
|
|
1.96 |
% |
|
|
0.02 |
% |
|
|
0.05 |
%(h) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
Supplemental
Data |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of period (000) |
|
$ |
190,670 |
|
|
$ |
31,255 |
|
|
$ |
1,149 |
|
|
$ |
3,223 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Recommencement
of operations. |
(b) |
The
amounts reported for a share outstanding may not accord with the change in
aggregate gains and losses in securities for the fiscal period due to the
timing of capital share transactions in relation to the fluctuating market
values of the Fund’s underlying securities. |
(c) |
Distributions
for annual periods determined in accordance with U.S. federal income tax
regulations. |
(d) |
Where
applicable, assumes the reinvestment of distributions.
|
(e) |
Amount
is less than 0.005%. |
(g) |
Includes
payment from an affiliate, which had no impact on the Fund’s total return.
|
59
BlackRock
Liquid Federal Trust Fund
There
were no Capital Shares of BlackRock Liquid Federal Trust Fund outstanding as of
October 31, 2023; as a result, the table below sets forth selected
financial data for an Institutional Share of BlackRock Liquid Federal Trust Fund
outstanding throughout each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional |
|
(For a
share outstanding throughout each period) |
|
Year Ended 10/31/23 |
|
|
Year Ended 10/31/22 |
|
|
Year Ended 10/31/21 |
|
|
Year Ended 10/31/20 |
|
|
Year Ended 10/31/19 |
|
Net
asset value, beginning of year |
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
0.0456 |
|
|
|
0.0077 |
|
|
|
0.0000 |
(a) |
|
|
0.0051 |
|
|
|
0.0214 |
|
Net
realized and unrealized gain |
|
|
0.0000 |
(a) |
|
|
0.0007 |
(b) |
|
|
0.0001 |
|
|
|
0.0014 |
|
|
|
0.0000 |
(a) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase from investment operations |
|
|
0.0456 |
|
|
|
0.0084 |
|
|
|
0.0001 |
|
|
|
0.0065 |
|
|
|
0.0214 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Distributions(c) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.0456 |
) |
|
|
(0.0084 |
) |
|
|
(0.0000 |
)(d) |
|
|
(0.0064 |
) |
|
|
(0.0214 |
) |
From
net realized gain |
|
|
— |
|
|
|
(0.0000 |
)(d) |
|
|
(0.0001 |
) |
|
|
(0.0001 |
) |
|
|
(0.0000 |
)(d) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
(0.0456 |
) |
|
|
(0.0084 |
) |
|
|
(0.0001 |
) |
|
|
(0.0065 |
) |
|
|
(0.0214 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
1.00 |
|
|
$ |
1.00 $ |
|
|
|
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Total
Return(e) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Based
on net asset value |
|
|
4.66 |
% |
|
|
0.85 |
% |
|
|
0.02 |
% |
|
|
0.65 |
% |
|
|
2.16 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Ratios
to Average Net Assets |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Total
expenses |
|
|
0.23 |
% |
|
|
0.22 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
|
|
0.25 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses after fees waived and/or reimbursed |
|
|
0.17 |
% |
|
|
0.13 |
% |
|
|
0.09 |
% |
|
|
0.17 |
% |
|
|
0.17 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
4.56 |
% |
|
|
0.77 |
% |
|
|
0.00 |
%(f) |
|
|
0.51 |
% |
|
|
2.14 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Supplemental
Data |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000) |
|
$ |
5,944,451 |
|
|
$ |
5,117,999 |
|
|
$ |
4,912,973 |
|
|
$ |
4,488,126 |
|
|
$ |
3,442,530 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Amount
is less than $0.00005 per share. |
(b) |
The
amounts reported for a share outstanding may not accord with the change in
aggregate gains and losses in securities for the fiscal period due to the
timing of capital share transactions in relation to the fluctuating market
values of the Fund’s underlying securities. |
(c) |
Distributions
for annual periods determined in accordance with U.S. federal income tax
regulations. |
(d) |
Amount
is greater than $(0.00005) per share. |
(e) |
Where
applicable, assumes the reinvestment of distributions.
|
(f) |
Amount
is less than 0.005%. |
60
FedFund
The
table below sets forth selected financial data for a Capital Share of FedFund
outstanding throughout each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Capital |
|
(For a
share outstanding throughout each period) |
|
Year Ended 10/31/23 |
|
|
Year Ended 10/31/22 |
|
|
Year Ended 10/31/21 |
|
|
Year Ended 10/31/20 |
|
|
Year Ended 10/31/19 |
|
Net
asset value, beginning of year |
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
0.0448 |
|
|
|
0.0003 |
|
|
|
0.0002 |
|
|
|
0.0051 |
|
|
|
0.0213 |
|
Net
realized and unrealized gain |
|
|
0.0012 |
(a) |
|
|
0.0085 |
(a) |
|
|
0.0001 |
|
|
|
0.0009 |
|
|
|
0.0001 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase from investment operations |
|
|
0.0460 |
|
|
|
0.0088 |
|
|
|
0.0003 |
|
|
|
0.0060 |
|
|
|
0.0214 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Distributions(b) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.0460 |
) |
|
|
(0.0088 |
) |
|
|
(0.0002 |
) |
|
|
(0.0059 |
) |
|
|
(0.0214 |
) |
From
net realized gain |
|
|
— |
|
|
|
(0.0000 |
)(c) |
|
|
(0.0001 |
) |
|
|
(0.0001 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
(0.0460 |
) |
|
|
(0.0088 |
) |
|
|
(0.0003 |
) |
|
|
(0.0060 |
) |
|
|
(0.0214 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Total
Return(d) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Based
on net asset value |
|
|
4.70 |
% |
|
|
0.88 |
% |
|
|
0.03 |
% |
|
|
0.60 |
% |
|
|
2.16 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Ratios
to Average Net Assets |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Total
expenses |
|
|
0.24 |
% |
|
|
0.24 |
% |
|
|
0.24 |
% |
|
|
0.24 |
% |
|
|
0.24 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses after fees waived and/or reimbursed |
|
|
0.21 |
% |
|
|
0.07 |
% |
|
|
0.07 |
% |
|
|
0.21 |
% |
|
|
0.21 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
4.48 |
% |
|
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.51 |
% |
|
|
2.13 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Supplemental
Data |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000) |
|
$ |
2,588 |
|
|
$ |
1,252 |
|
|
$ |
25,722,827 |
|
|
$ |
11,247,218 |
|
|
$ |
8,078,893 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The
amounts reported for a share outstanding may not accord with the change in
aggregate gains and losses in securities for the fiscal period due to the
timing of capital share transactions in relation to the fluctuating market
values of the Fund’s underlying securities. |
(b) |
Distributions
for annual periods determined in accordance with U.S. federal income tax
regulations. |
(c) |
Amount
is greater than $(0.00005) per share. |
(d) |
Where
applicable, assumes the reinvestment of distributions.
|
61
T‑Fund
The
table below sets forth selected financial data for a Capital Share of T-Fund
outstanding throughout each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Capital |
|
(For a
share outstanding throughout each period) |
|
Year Ended 10/31/23 |
|
|
Year Ended 10/31/22 |
|
|
Year Ended 10/31/21 |
|
|
Year Ended 10/31/20 |
|
|
Year Ended 10/31/19 |
|
Net
asset value, beginning of year |
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
0.0480 |
|
|
|
0.0001 |
|
|
|
0.0001 |
|
|
|
0.0048 |
|
|
|
0.0212 |
|
Net
realized gain (loss) |
|
|
(0.0022 |
) |
|
|
0.0086 |
(a) |
|
|
0.0001 |
|
|
|
0.0010 |
|
|
|
0.0000 |
(b) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase from investment operations |
|
|
0.0458 |
|
|
|
0.0087 |
|
|
|
0.0002 |
|
|
|
0.0058 |
|
|
|
0.0212 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Distributions(c) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.0458 |
) |
|
|
(0.0087 |
) |
|
|
(0.0001 |
) |
|
|
(0.0057 |
) |
|
|
(0.0212 |
) |
From
net realized gain |
|
|
— |
|
|
|
(0.0000 |
)(d) |
|
|
(0.0001 |
) |
|
|
(0.0001 |
) |
|
|
(0.0000 |
)(d) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
(0.0458 |
) |
|
|
(0.0087 |
) |
|
|
(0.0002 |
) |
|
|
(0.0058 |
) |
|
|
(0.0212 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Total
Return(e) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Based
on net asset value |
|
|
4.68 |
% |
|
|
0.87 |
% |
|
|
0.01 |
% |
|
|
0.57 |
%(f) |
|
|
2.14 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Ratios
to Average Net Assets |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Total
expenses |
|
|
0.24 |
% |
|
|
0.24 |
% |
|
|
0.24 |
% |
|
|
0.24 |
% |
|
|
0.24 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses after fees waived and/or reimbursed |
|
|
0.22 |
% |
|
|
0.09 |
% |
|
|
0.08 |
% |
|
|
0.21 |
% |
|
|
0.21 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
4.80 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.48 |
% |
|
|
2.13 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Supplemental
Data |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000) |
|
$ |
202,286 |
|
|
$ |
55,006 |
|
|
$ |
27,304,259 |
|
|
$ |
15,842,877 |
|
|
$ |
10,347,984 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The
amounts reported for a share outstanding may not accord with the change in
aggregate gains and losses in securities for the fiscal period due to the
timing of capital share transactions in relation to the fluctuating market
values of the Fund’s underlying securities. |
(b) |
Amount
is less than $0.00005 per share. |
(c) |
Distributions
for annual periods determined in accordance with U.S. federal income tax
regulations. |
(d) |
Amount
is greater than $(0.00005) per share. |
(e) |
Where
applicable, assumes the reinvestment of distributions.
|
(f) |
Includes
payment from an affiliate, which had no impact on the Fund’s total return.
|
62
Treasury
Trust Fund
The
table below sets forth selected financial data for a Capital Share of Treasury
Trust Fund outstanding throughout each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Capital |
|
(For a
share outstanding throughout each period) |
|
Year Ended 10/31/23 |
|
|
Year Ended 10/31/22 |
|
|
Year Ended 10/31/21 |
|
|
Period from 10/22/20(a) to 10/31/20 |
|
Net
asset value, beginning of period |
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
0.0489 |
|
|
|
0.0163 |
|
|
|
0.0001 |
|
|
|
0.0000 |
(b) |
Net
realized gain (loss) |
|
|
(0.0035 |
)(c) |
|
|
(0.0083 |
)(c) |
|
|
0.0001 |
|
|
|
0.0000 |
(b) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase from investment operations |
|
|
0.0454 |
|
|
|
0.0080 |
|
|
|
0.0002 |
|
|
|
0.0000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
Distributions(d) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.0454 |
) |
|
|
(0.0080 |
) |
|
|
(0.0001 |
) |
|
|
— |
|
From
net realized gain |
|
|
(0.0000 |
)(e) |
|
|
(0.0000 |
)(e) |
|
|
(0.0001 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
(0.0454 |
) |
|
|
(0.0080 |
) |
|
|
(0.0002 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of period |
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
Total
Return(f) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Based
on net asset value |
|
|
4.63 |
% |
|
|
0.80 |
% |
|
|
0.01 |
% |
|
|
0.00 |
%(g) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
Ratios
to Average Net Assets |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Total
expenses |
|
|
0.24 |
% |
|
|
0.24 |
% |
|
|
0.24 |
% |
|
|
0.24 |
%(h) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses after fees waived and/or reimbursed |
|
|
0.22 |
% |
|
|
0.20 |
% |
|
|
0.06 |
% |
|
|
0.17 |
%(h) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss) |
|
|
4.89 |
% |
|
|
1.63 |
% |
|
|
0.01 |
% |
|
|
(0.03 |
)%(h) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
Supplemental
Data |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of period (000) |
|
$ |
500,685 |
|
|
$ |
27,524 |
|
|
$ |
3,299 |
|
|
$ |
250 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Recommencement
of operations. |
(b) |
Amount
is less than $0.00005 per share. |
(c) |
The
amounts reported for a share outstanding may not accord with the change in
aggregate gains and losses in securities for the fiscal period due to the
timing of capital share transactions in relation to the fluctuating market
values of the Fund’s underlying securities. |
(d) |
Distributions
for annual periods determined in accordance with U.S. federal income tax
regulations. |
(e) |
Amount
is greater than $(0.00005) per share. |
(f) |
Where
applicable, assumes the reinvestment of distributions.
|
63
MuniCash
There
were no Capital Shares of MuniCash outstanding as of October 31, 2023; as a
result, the table below sets forth selected financial data for an Institutional
Share of MuniCash outstanding throughout each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional |
|
(For a
share outstanding throughout each period) |
|
Year Ended 10/31/23 |
|
|
Year Ended 10/31/22 |
|
|
Year Ended 10/31/21 |
|
|
Year Ended 10/31/20 |
|
|
Year Ended 10/31/19 |
|
Net
asset value, beginning of year |
|
$ |
0.9999 |
|
|
$ |
1.0001 |
|
|
$ |
1.0001 |
|
|
$ |
1.0001 |
|
|
$ |
1.0001 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
0.0282 |
|
|
|
0.0048 |
|
|
|
0.0001 |
|
|
|
0.0051 |
|
|
|
0.0137 |
|
Net
realized and unrealized gain (loss) |
|
|
(0.0000 |
)(a)(b) |
|
|
0.0007 |
(b) |
|
|
0.0000 |
(c) |
|
|
0.0004 |
|
|
|
0.0000 |
(c) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase from investment operations |
|
|
0.0282 |
|
|
|
0.0055 |
|
|
|
0.0001 |
|
|
|
0.0055 |
|
|
|
0.0137 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Distributions(d) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.0281 |
) |
|
|
(0.0057 |
) |
|
|
(0.0001 |
) |
|
|
(0.0055 |
) |
|
|
(0.0137 |
) |
From
net realized gain |
|
|
— |
|
|
|
(0.0000 |
)(a) |
|
|
— |
|
|
|
— |
|
|
|
(0.0000 |
)(a) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
(0.0281 |
) |
|
|
(0.0057 |
) |
|
|
(0.0001 |
) |
|
|
(0.0055 |
) |
|
|
(0.0137 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
1.0000 |
|
|
$ |
0.9999 |
|
|
$ |
1.0001 |
|
|
$ |
1.0001 |
|
|
$ |
1.0001 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Total
Return(e) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Based
on net asset value |
|
|
2.86 |
% |
|
|
0.56 |
% |
|
|
0.01 |
% |
|
|
0.55 |
% |
|
|
1.38 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Ratios
to Average Net Assets |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Total
expenses |
|
|
0.30 |
% |
|
|
0.28 |
% |
|
|
0.26 |
% |
|
|
0.26 |
% |
|
|
0.28 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses after fees waived and/or reimbursed |
|
|
0.20 |
% |
|
|
0.16 |
% |
|
|
0.08 |
% |
|
|
0.19 |
% |
|
|
0.20 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
2.82 |
% |
|
|
0.48 |
% |
|
|
0.01 |
% |
|
|
0.51 |
% |
|
|
1.36 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Supplemental
Data |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000) |
|
$ |
4,540,657 |
|
|
$ |
3,592,640 |
|
|
$ |
5,368,797 |
|
|
$ |
5,160,531 |
|
|
$ |
5,182,923 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Amount
is greater than $(0.00005) per share. |
(b) |
The
amounts reported for a share outstanding may not accord with the change in
aggregate gains and losses in securities for the fiscal period due to the
timing of capital share transactions in relation to the fluctuating market
values of the Fund’s underlying securities. |
(c) |
Amount
is less than $0.00005 per share. |
(d) |
Distributions
for annual periods determined in accordance with U.S. federal income tax
regulations. |
(e) |
Where
applicable, assumes the reinvestment of distributions.
|
64
General
Information
Certain Fund Policies
Anti-Money
Laundering Requirements
The
Funds are subject to the USA PATRIOT Act (the “Patriot Act”). The Patriot Act is
intended to prevent the use of the U.S. financial system in furtherance of money
laundering, terrorism or other illicit activities. Pursuant to requirements
under the Patriot Act, a Fund is required to obtain sufficient information from
shareholders to enable it to form a reasonable belief that it knows the true
identity of its shareholders. This information will be used to verify the
identity of investors or, in some cases, the status of Financial Intermediaries.
Such information may be verified using third-party sources. This information
will be used only for compliance with the requirements of the Patriot Act or
other applicable laws, regulations and rules in connection with money
laundering, terrorism or economic sanctions.
The
Funds reserve the right to reject purchase orders from persons who have not
submitted information sufficient to allow a Fund to verify their identity. Each
Fund also reserves the right to redeem any amounts in a Fund from persons whose
identity it is unable to verify on a timely basis. It is the Funds’ policy to
cooperate fully with appropriate regulators in any investigations conducted with
respect to potential money laundering, terrorism or other illicit activities.
BlackRock
Privacy Principles
BlackRock
is committed to maintaining the privacy of its current and former fund investors
and individual clients (collectively, “Clients”) and to safeguarding their
non-public personal information. The following information is provided to help
you understand what personal information BlackRock collects, how we protect that
information and why in certain cases we share such information with select
parties.
If
you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock
obtains or verifies personal non-public information from and about you from
different sources, including the following: (i) information we receive from
you or, if applicable, your Financial Intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer
reporting agency; and (iv) from visits to our websites.
BlackRock
does not sell or disclose to non-affiliated third parties any non‑public
personal information about its Clients, except as permitted by law or as is
necessary to respond to regulatory requests or to service Client accounts. These
non-affiliated third parties are required to protect the confidentiality and
security of this information and to use it only for its intended purpose.
We
may share information with our affiliates to service your account or to provide
you with information about other BlackRock products or services that may be of
interest to you. In addition, BlackRock restricts access to non-public personal
information about its Clients to those BlackRock employees with a legitimate
business need for the information. BlackRock maintains physical, electronic and
procedural safeguards that are designed to protect the non-public personal
information of its Clients, including procedures relating to the proper storage
and disposal of such information.
65
Glossary
Glossary of Investment Terms
This
glossary contains an explanation of some of the common terms used in this
prospectus. For additional information about the Funds, please see the SAI.
Acquired Fund Fees
and Expenses — the Fund’s pro rata share of the fees and expenses
incurred indirectly by the Fund as a result of investing in other investment
companies.
Annual Fund Operating
Expenses — expenses that cover the costs of operating a Fund.
Daily Liquid
Assets — include (i) cash; (ii) direct obligations of
the U.S. Government; (iii) securities that will mature, as determined
without reference to the maturity shortening provisions of Rule 2a-7 regarding
interest rate readjustments, or are subject to a demand feature that is
exercisable and payable within one business day; and (iv) amounts receivable and
due unconditionally within one business day on pending sales of portfolio
securities.
Distribution
Fees — fees used to support a Fund’s marketing and distribution
efforts, such as compensating financial professionals and other Financial
Intermediaries, advertising and promotion.
Dollar-Weighted
Average Life — the dollar-weighted average maturity of a Fund’s
portfolio calculated without reference to the exceptions used for variable or
floating rate securities regarding the use of the interest rate reset dates in
lieu of the security’s actual maturity date. “Dollar-weighted” means the larger
the dollar value of a debt security based on its market value in the Fund, the
more weight it gets in calculating this average.
Dollar-Weighted
Average Maturity — the average maturity of a Fund is the average
amount of time until the organizations that issued the debt securities in the
Fund’s portfolio must pay off the principal amount of the debt.
“Dollar-weighted” means the larger the dollar value of a debt security based on
its market value in the Fund, the more weight it gets in calculating this
average. To calculate the dollar-weighted average maturity, the Fund may treat a
variable or floating rate security as having a maturity equal to the time
remaining to the security’s next interest rate reset date or the period
remaining until the principal amount can be recovered through demand rather than
the security’s actual maturity.
Eligible Securities
— Applicable Eligible Securities include:
|
◾ |
|
securities
with a remaining maturity of 397 calendar days or less (with certain
exceptions) that BlackRock determines present minimal credit risks to the
fund after considering certain factors; |
|
◾ |
|
securities
issued by other registered investment companies that are money market
funds; or |
|
◾ |
|
securities
issued or guaranteed as to principal or interest by the U.S. Government or
any of its agencies or instrumentalities. |
Management
Fee — a fee paid to BlackRock for managing a Fund.
Other
Expenses — include accounting, transfer agency, custody,
professional and registration fees.
Shareholder Servicing
Fees — fees used to compensate securities dealers and other
Financial Intermediaries for certain shareholder servicing activities.
Weekly Liquid
Assets — include (i) cash; (ii) direct obligations of
the U.S. Government; (iii) U.S. Government securities issued by a person
controlled or supervised by and acting as an instrumentality of the U.S.
Government pursuant to authority granted by the U.S. Congress, that are issued
at a discount to the principal amount to be repaid at maturity without provision
for the payment of interest and have a remaining maturity of 60 days or
less; (iv) securities that will mature, as determined without reference to
the maturity shortening provisions of Rule 2a-7 regarding interest rate
readjustments, or are subject to a demand feature that is exercisable and
payable within five business days; and (v) amounts receivable and due
unconditionally within five business days on pending sales of portfolio
securities.
66
For
More Information
Funds and Service Providers
FUNDS
BlackRock
Liquidity Funds
TempCash
TempFund
BlackRock
Liquid Federal Trust Fund
FedFund
T‑Fund
Treasury
Trust Fund
MuniCash
100
Bellevue Parkway
Wilmington,
Delaware 19809
(800)
441‑7450
MANAGER
AND ADMINISTRATOR
BlackRock
Advisors, LLC
100
Bellevue Parkway
Wilmington,
Delaware 19809
SUB-ADVISER
To TempCash and TempFund: BlackRock
International Limited
Exchange
Place One
1
Semple Street
Edinburgh,
EH3 8BL
United
Kingdom
TRANSFER
AGENT
BNY
Mellon Investment Servicing (US) Inc.
301
Bellevue Parkway
Wilmington,
Delaware 19809
INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte
& Touche LLP
200
Berkeley Street
Boston,
Massachusetts 02116
ACCOUNTING
SERVICES PROVIDER
JPMorgan
Chase Bank, N.A.
383
Madison Avenue, Floor 11
New
York, New York 10179
DISTRIBUTOR
BlackRock
Investments, LLC
50
Hudson Yards
New
York, New York 10001
CUSTODIANS
JPMorgan
Chase Bank, N.A.
383
Madison Avenue, Floor 11
New
York, New York 10179
The
Bank of New York Mellon
240
Greenwich Street
New
York, New York 10286
COUNSEL
Sidley
Austin LLP
787
Seventh Avenue
New
York, New York 10019-6018
67
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How to Contact BlackRock Liquidity Funds
For
purchase and redemption orders, please call your investment professional.
Written
correspondence may be sent to your investment professional.
|
| |
Capital Shares |
|
Fund Code |
TempCash |
|
0007 |
TempFund |
|
0022 |
BlackRock
Liquid Federal Trust Fund |
|
0105 |
FedFund |
|
0084 |
T‑Fund |
|
0039 |
Treasury
Trust Fund |
|
0016 |
MuniCash |
|
0056 |
For
other information call: (800) 441-7450 or visit our website at
www.blackrock.com/cash.
Additional Information
The
Statement of Additional Information (“SAI”) includes additional information
about the Funds’ investment policies, organization and management. The SAI, as
amended and/or supplemented from time to time, is incorporated by reference into
this prospectus. The Annual and Semi-Annual Reports provide additional
information about each Fund’s investments, performance and portfolio holdings.
Investors
can get free copies of the above named documents, and make shareholder
inquiries, by calling their Financial Intermediary. The above named documents
and other information are available on the Funds’ website at
www.blackrock.com/prospectus/cash.
Information
about the Funds (including the SAI) is available on the EDGAR Database on the
SEC’s website at http://www.sec.gov; copies of this information may be obtained,
after paying a duplicating fee, by electronic request at the following e‑mail
address:
[email protected].
BlackRock
Liquidity Funds 1940 Act File No. is 811‑2354.
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| |
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PRO-LIQ-CAP-0224 |