N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT

COMPANIES

Investment Company Act file number 811-07899 and 811-07885

Name of Fund:   BlackRock Index Funds, Inc.

              BlackRock International Index Fund

              BlackRock S&P 500 Index Fund

              BlackRock Small Cap Index Fund

        Quantitative Master Series LLC:

              Master International Index Series

              Master S&P 500 Index Series

              Master Small Cap Index Series

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Index Funds, Inc.

      and Quantitative Master Series LLC, 55 East 52^nd Street, New York, NY 10055

Registrants’ telephone number, including area code: (800) 441-7762

Date of fiscal year end: 12/31/2012

Date of reporting period: 12/31/2012

Item 1 – Report to Stockholders

DECEMBER 31, 2012

  ANNUAL REPORT  

BlackRock International Index Fund  |  of BlackRock Index Funds, Inc.

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

	Page
Dear Shareholder		3
Annual Report:
Fund Summary		4
About Fund Performance		6
Disclosure of Expenses		6
Derivative Financial Instruments		6
Fund Financial Statements:
Statement of Assets and Liabilities		7
Statement of Operations		8
Statements of Changes in Net Assets		9
Fund Financial Highlights		10
Fund Notes to Financial Statements		12
Fund Report of Independent Registered Public Accounting Firm		15
Important Tax Information		15
Series Portfolio Information		16
Series Financial Statements:
Schedule of Investments		17
Statement of Assets and Liabilities		28
Statement of Operations		29
Statements of Changes in Net Assets		30
Series Financial Highlights		30
Series Notes to Financial Statements		31
Series Report of Independent Registered Public Accounting Firm		36
Officers and Directors		37
Additional Information		40
A World-Class Mutual Fund Family		42

2 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Dear Shareholder

Financial markets substantially improved in 2012 as compared to the prior year, due largely to central bank intervention and considerable relief from the global turmoil seen in 2011. Although 2012 brought its share of headwinds, the strongest returns came from higher-risk asset classes as investors reached for yield in an environment of extremely low interest rates.

The year opened with investor confidence on the rise as global liquidity had been restored and financial news headlines became less daunting. Equity markets moved higher through the first two months of 2012, while climbing US Treasury yields pressured higher-quality fixed income assets. However, markets reversed course in the spring when Europe’s debt crisis boiled over once again. Political instability in Greece and severe deficit and liquidity problems in Spain raised the prospect of a euro collapse. Government borrowing costs in peripheral European countries soared while the region’s finance leaders deliberated over the fiscal integration of the currency bloc. Alongside the drama in Europe, investors were discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, emerged as a particular concern. In the United States, disappointing jobs reports signaled that the recovery was losing steam. Risk assets sold off as investors retreated to safe-haven assets.

As the outlook for the global economy worsened, investors grew increasingly optimistic that the world’s largest central banks soon would intervene to stimulate growth. This theme, along with increased cooperation among finance ministers in Europe, fueled a powerful risk-asset rebound in June. In July, the European Central Bank (“ECB”) president stated that the bank would do “whatever it takes” to preserve the euro currency bloc. This assurance along with expectations for policy stimulus from central banks in Europe and the United States drove most asset classes higher through the summer. Early in September, the ECB announced its decision to support the eurozone’s troubled peripheral countries with unlimited purchases of short term sovereign debt. Days later, the US Federal Reserve announced an aggressive stimulus package involving open-ended monthly purchases of agency mortgage-backed securities.

Going into the fall, US stocks slid on lackluster corporate earnings reports and market volatility rose leading up to the US Presidential election. Global trade slowed as many European countries fell into recession and growth continued to decelerate in China, where a once-a-decade leadership change compounded uncertainty. In the United States, automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013 (known as the “fiscal cliff”) threatened to push the nation into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that bipartisan gridlock would preclude a budget deal prior to the deadline drove high levels of volatility in financial markets around the world in the months leading up to the last day of the year. Ultimately, the United States averted the worst of the fiscal cliff with a last-minute tax deal. Relief from US fiscal worries, however, was only partial as decisions relating to spending cuts and the debt ceiling remained pending as financial markets closed for the year.

All major asset classes generated positive returns for the 6- and 12-month periods ended December 31, 2012. Riskier assets outperformed higher quality investments as investors sought meaningful returns in a low interest rate environment. International and emerging market equities were the strongest performers. US Treasury yields were volatile, but declined overall, resulting in moderate gains for higher quality fixed income sectors. Tax-exempt municipal bonds benefited from a favorable supply-and-demand environment. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.

The New Year brings a host of unknowns, but we believe new opportunities abound. BlackRock was built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. With access to every asset class, geography and investment style, and extensive market intelligence, we help investors of all sizes build dynamic, diverse portfolios to achieve better, more consistent returns over time. We encourage you to visit www.blackrock.com/newworld for more information.

Sincerely,

Rob Kapito

President, BlackRock Advisors,LLC

“Although 2012 brought its share of headwinds, the strongest returns came from higher-risk asset classes as investors reached for yield in an environment of extremely low interest rates.”

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of December 31, 2012
	6-month			12-month
US large cap equities (S&P 500® Index)		5.95	%		16.00	%
US small cap equities (Russell 2000® Index)		7.20			16.35
International equities (MSCI Europe, Australasia, Far East Index)		13.95			17.32
Emerging market equities (MSCI Emerging Markets Index)		13.75			18.22
3-month Treasury bill (BofA Merrill Lynch 3-Month US Treasury Bill Index)		0.07			0.11
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)		0.71			4.18
US investment grade bonds (Barclays US Aggregate Bond Index)		1.80			4.21
Tax-exempt municipal bonds (S&P Municipal Bond Index)		3.15			7.42
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index)		7.97			15.78
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of December 31, 2012 BlackRock International Index Fund

Investment Objective

BlackRock International Index Fund’s (the “Fund”) investment objective is to match the performance of the MSCI EAFE Index (Europe, Australasia, Far East) (the “MSCI EAFE Index”) in U.S. dollars with net dividends as closely as possible before the deduction of Fund expenses.

Portfolio Management Commentary

How did the Fund perform?

_Ÿ The Fund invests all of its assets in Master International Index Series (the “Series”), a series of Quantitative Master Series LLC. For the 12 months ended December 31, 2012, the Fund’s Institutional, Investor A and Class K Shares returned 18.58%, 18.33% and 18.65%, respectively, while the benchmark MSCI EAFE Index returned 17.32%. The MSCI EAFE Index is a free float-adjusted, market capitalization-weighted index designed to measure equity performance of developed markets, excluding the United States and Canada.

Describe the market environment.

_Ÿ Following a tumultuous 2011, equity markets began the new year with a strong rally amid lower volatility. The debt situation in Europe had stabilized and global liquidity conditions improved as the European Central Bank (“ECB”) implemented its long-term refinancing operations. Positive economic indicators out of the United States brightened the outlook for the world economy and equities moved higher through the first two months of 2012.

_Ÿ A flare-up in the European debt crisis halted the rally in the spring. Political instability in Greece caused anxiety about whether the country would continue its membership in the eurozone. Spain faced severe deficit and policymaking issues and a liquidity crisis in the nation’s banks. Alongside the drama in Europe, investors became discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, was of particular concern. Many European countries fell into recession. In the United States, disappointing jobs reports signaled that the recovery was losing steam. International equities gave back all of their year-to-date gains by the end of May.

_Ÿ As the global economic picture dimmed, investors grew increasingly optimistic that the world’s central banks would intervene to stimulate growth. Meanwhile, European leaders took meaningful steps toward fiscal integration in the euro currency bloc. These positive themes drove a powerful equity rebound in June. In July, ECB president Mario Draghi boosted investor confidence by stating that the ECB was committed to do “whatever it takes” to hold the eurozone together. This assurance along with growing hopes for additional central bank stimulus overshadowed concerns about the dreary economic landscape and international stock markets continued their advance through the third quarter. In September, the ECB announced its decision to backstop eurozone governments with unlimited purchases of short-term sovereign debt. Days later, the US Federal Reserve announced an aggressive stimulus program involving purchases of agency mortgage-backed securities.

_Ÿ Concerns about the world economy resurfaced in the fall amid political uncertainty in key nations. Global trade slowed as Europe’s recession deepened, US growth remained lackluster and growth continued to decelerate in China, where a once-in-a-decade leadership change compounded uncertainty. In the United States, automatic tax increases and spending cuts set to take effect at the beginning of 2013, known as the “fiscal cliff,” threatened to push the nation into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that political gridlock would preclude a budget deal prior to the deadline drove high levels of volatility in equity markets around the world in the months leading up to the last day of the year. Ultimately, the United States averted the fiscal cliff with a last-minute tax deal, spurring relief rallies in stock markets globally. However, relief from US fiscal worries was only partial as decisions relating to spending cuts and the national debt ceiling remained pending as financial markets closed for the year. Despite a downtrodden economic environment and a suspenseful lead-up to the US fiscal cliff deadline, international stock prices moved higher through the final months of 2012 as investors took on more risk to achieve meaningful returns in the low interest rate environment.

_Ÿ For the 12 months ended December 31, 2012, stocks in all of the 22 developed nations represented in the MSCI EAFE Index posted gains (in USD) with the exception of Israel (-4.68%). Belgium led the index with a return of 39.55%. Stocks in Europe’s core economies, Germany (+30.90%) and France (+21.29%), staged a strong rebound and outperformed markets in the debt-laden peripheral countries, Italy (+12.48%), Ireland (+5.74%), Greece (+4.52%), Portugal (+3.53%) and Spain (+3.00%). Asian markets were pressured by slowing global trade and domestic economic weakness; however, Japanese equities (+8.18%) were buoyed by monetary easing as a weaker yen benefited the nation’s exporters.

Describe recent portfolio activity.

_Ÿ During the period, as changes were made to the composition of the MSCI EAFE Index, the Series purchased and sold securities to maintain its objective of replicating the risks and return of the benchmark index.

Describe portfolio positioning at period end.

_Ÿ The Series remains positioned to match the risk characteristics of its benchmark index, irrespective of the future direction of international markets.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

4 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Total Return Based on a $10,000 Investment

¹  Assuming transaction costs and other operating expenses, including administration fees, if any.

²  The Fund invests all of its assets in the Series. The Series may invest in a statistically selected sample of the equity securities included in the MSCI EAFE Index and in derivative instruments linked to the MSCI EAFE Index.

³  This unmanaged index is a free-float adjusted, market capitalization-weighted index designed to measure equity performance of developed markets, excluding the United States and Canada.

Performance Summary for the Period Ended December 31, 2012

	6-Month Total Returns			Average Annual Total Returns4
				1 Year			5 Years			10 Years
Institutional		14.30	%		18.58	%		(3.78	)%		7.96	%
Investor A		14.16			18.33			(4.04	)		7.68
Class K5		14.26			18.65			(3.74	)		8.01
MSCI EAFE Index		13.95			17.32			(3.69	)		8.21

⁴  Average annual total returns reflect reductions for service fees, if any. See “About Fund Performance” on page 6 for a detailed description of share classes, including any related fees.

⁵  Class K Shares commenced operations on March 31, 2011.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical7
	Beginning Account Value July 1,  2012		Ending Account Value December 31,  2012		Expenses Paid During the Period6		Beginning Account Value July 1,  2012		Ending Account Value December 31,  2012		Expenses Paid During the Period6		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,143.00	$	1.72	$	1,000.00	$	1,023.54	$	1.63		0.32	%
Investor A	$	1,000.00	$	1,141.60	$	3.23	$	1,000.00	$	1,022.14	$	3.05		0.60	%
Class K	$	1,000.00	$	1,142.60	$	1.56	$	1,000.00	$	1,023.64	$	1.48		0.29	%

⁶  For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Because the Fund invests significantly in the Series, the expense example reflects the net expenses of both the Fund and the Series in which it invests.

⁷  Hypothetical 5% return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 6 for further information on how expenses were calculated.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 5

About Fund Performance

_Ÿ Institutional and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to eligible investors. Prior to March 31, 2011, Class K Shares’ performance results are those of Institutional Shares restated to reflect Class K Shares’ fees.

_Ÿ Investor A Shares are not subject to any sales charge and bear no ongoing distribution fee. These shares are subject to an ongoing service fee of 0.25% per year.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in the performance table on the previous page assume reinvestment of all dividends and capital gain distributions, if any, at net asset value (“NAV”) on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of service and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Fund’s administrator waived and/or reimbursed a portion of the Fund’s fee. Without such waiver and/or reimbursement, the Fund’s performance would have been lower.

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) expenses related to transactions, including exchange fees; and (b) operating expenses, including administration fees, service fees, including 12b-1 fees, and other Fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on July 1, 2012 and held through December 31, 2012) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as sales charges or exchange fees, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Series may invest in various derivative financial instruments, including financial futures contracts and foreign currency exchange contracts, as specified in Note 2 of the Series’ Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities or to hedge market, equity and/or foreign currency exchange rate risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Series’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require the Series to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation the Series can realize on an investment, may result in lower dividends paid to shareholders or may cause the Series to hold an investment that it might otherwise sell. The Series’ investments in these instruments are discussed in detail in the Series’ Notes to Financial Statements.

6 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Statement of Assets and Liabilities BlackRock International Index Fund

December 31, 2012
Assets
Investments at value — Master International Index Series (the “Series”) (cost — $244,121,601)	$	277,176,858
Withdrawals receivable from the Series		935,201
Capital shares sold receivable		564,005
Total assets		278,676,064
Liabilities
Capital shares redeemed payable		1,499,206
Administration fees payable		54,990
Service fees payable		45,873
Officer’s fees payable		108
Other accrued expenses payable		23,270
Total liabilities		1,623,447
Net Assets	$	277,052,617
Net Assets Consist of
Paid-in capital	$	294,301,172
Distributions in excess of net investment income		(1,509,001	)
Accumulated net realized loss allocated from the Series		(48,794,811	)
Net unrealized appreciation/depreciation allocated from the Series		33,055,257
Net Assets	$	277,052,617
Net Asset Value
Institutional — Based on net assets of $52,588,815 and 4,754,839 shares outstanding, 125 million shares authorized, $0.0001 par value	$	11.06
Investor A — Based on net assets of $223,753,750 and 20,364,232 shares outstanding, 125 million shares authorized, $0.0001 par value	$	10.99
Class K — Based on net assets of $710,052 and 64,181 shares outstanding, 125 million shares authorized, $0.0001 par value	$	11.06

See Notes to Financial Statements.
	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2012	7

Statement of Operations BlackRock International Index Fund

Year Ended December 31, 2012
Investment Income
Net investment income allocated from the Series:
Dividends — unaffiliated	$	9,456,652
Foreign taxes withheld		(663,878	)
Dividends — affiliated		1,710
Expenses		(158,386	)
Fees waived		3,665
Total income		8,639,763
Fund Expenses
Administration		600,731
Service — Investor A		487,644
Transfer agent — Institutional		30,554
Transfer agent — Investor A		153,778
Transfer agent — Class K		36
Professional		67,144
Printing		43,404
Registration		28,395
Officer		145
Miscellaneous		12,217
Total expenses		1,424,048
Less fees waived by administrator		(167,255	)
Less transfer agent fees waived and/or reimbursed — class specific		(54,703	)
Total expenses after fees waived and/or reimbursed		1,202,090
Net investment income		7,437,673
Realized and Unrealized Gain (Loss) Allocated from the Series
Net realized loss from investments, financial futures contracts and foreign currency transactions		(20,249,413	)
Net change in unrealized appreciation/depreciation on investments, financial futures contracts and foreign currency translations		56,355,838
Total realized and unrealized gain		36,106,425
Net Increase in Net Assets Resulting from Operations	$	43,544,098

See Notes to Financial Statements.
8	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2012

Statements of Changes in Net Assets BlackRock International Index Fund

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2012			2011
Operations
Net investment income	$	7,437,673		$	8,027,957
Net realized loss		(20,249,413	)		(5,481,644	)
Net change in unrealized appreciation/depreciation		56,355,838			(37,431,256	)
Net increase (decrease) in net assets resulting from operations		43,544,098			(34,884,943	)
Dividends to Shareholders From1
Net investment income:
Institutional		(1,661,118	)		(3,165,026	)
Investor A		(6,510,024	)		(5,380,392	)
Class K		(21,576	)		(737	)
Decrease in net assets resulting from dividends to shareholders		(8,192,718	)		(8,546,155	)
Capital Share Transactions
Net increase in net assets derived from capital share transactions		3,246,488			6,705,760
Redemption Fee
Redemption fee		—			1,682
Net Assets
Total increase (decrease) in net assets		38,597,868			(36,723,656	)
Beginning of year		238,454,749			275,178,405
End of year	$	277,052,617		$	238,454,749
Distributions in excess of net investment income	$	(1,509,001	)	$	(978,961	)
1 Dividends are determined in accordance with federal income tax regulations.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 9

Financial Highlights BlackRock International Index Fund

	Institutional															Investor A
	Year Ended December 31,															Year Ended December 31,
	2012			2011			2010			2009			2008			2012			2011			2010			2009			2008
Per Share Operating Performance
Net asset value, beginning of year	$	9.63		$	11.42		$	10.97		$	8.75		$	15.73		$	9.57		$	11.36		$	10.91		$	8.71		$	15.65
Net investment income1		0.33			0.35			0.25			0.23			0.40			0.30			0.31			0.23			0.21			0.36
Net realized and unrealized gain (loss)		1.45			(1.79	)2		0.53	2		2.25	2		(7.03	)2		1.45			(1.77	)2		0.52	2		2.23	2		(6.98	)2
Net increase (decrease) from investment operations		1.78			(1.44	)		0.78			2.48			(6.63	)		1.75			(1.46	)		0.75			2.44			(6.62	)
Dividends and distributions from:3
Net investment income		(0.35	)		(0.35	)		(0.33	)		(0.26	)		(0.31	)		(0.33	)		(0.33	)		(0.30	)		(0.24	)		(0.28	)
Net realized gain		—			—			—			—			(0.04	)		—			—			—			—			(0.04	)
Total dividends and distributions		(0.35	)		(0.35	)		(0.33	)		(0.26	)		(0.35	)		(0.33	)		(0.33	)		(0.30	)		(0.24	)		(0.32	)
Net asset value, end of year	$	11.06		$	9.63		$	11.42		$	10.97		$	8.75		$	10.99		$	9.57		$	11.36		$	10.91		$	8.71
Total Investment Return4
Based on net asset value		18.58	%		(12.55	)%		7.26	%		28.38	%		(42.24	)%		18.33	%		(12.84	)%		7.02	%		28.00	%		(42.41	)%
Ratios to Average Net Assets5
Total expenses		0.42	%6		0.44	%6		0.47	%		0.54	%		0.54	%		0.69	%6		0.70	%6		0.74	%		0.79	%		0.79	%
Total expenses after fees waived and/or reimbursed		0.34	%6		0.35	%6		0.46	%		0.54	%		0.54	%		0.60	%6		0.60	%6		0.73	%		0.79	%		0.79	%
Net investment income		3.22	%6		3.14	%6		2.35	%		2.43	%		3.11	%		2.90	%6		2.84	%6		2.16	%		2.27	%		2.83	%
Supplemental Data
Net assets, end of year (000)	$	52,589		$	70,169		$	112,145		$	89,889		$	90,688		$	223,754		$	168,266		$	163,033		$	160,964		$	136,073
Portfolio turnover of the Series		21	%		6	%		8	%		30	%		30	%		21	%		6	%		8	%		30	%		30	%

¹  Based on average shares outstanding.

²  Includes a redemption fee, which is less than $0.01 per share.

³  Dividends and distributions are determined in accordance with federal income tax regulations.

⁴  Where applicable, total investment returns include the reinvestment of dividends and distributions.

⁵  Includes the Fund’s share of the Series’ allocated expenses and/or net investment income.

⁶  Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

See Notes to Financial Statements.
10	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2012

Financial Highlights (concluded) BlackRock International Index Fund

	Class K
	Year Ended December 31, 2012			Period March 31, 20111 to December 31, 2011
Per Share Operating Performance
Net asset value, beginning of period	$	9.63		$	11.80
Net investment income2		0.22			0.26
Net realized and unrealized gain (loss)		1.57			(2.08	)
Net increase (decrease) from investment operations		1.79			(1.82	)
Dividends from net investment income3		(0.36	)		(0.35	)
Net asset value, end of period	$	11.06		$	9.63
Total Investment Return4
Based on net asset value		18.65	%		(15.38	)%5
Ratios to Average Net Assets6,7
Total expenses		0.33	%		0.48	%8
Total expenses after fees waived and/or reimbursed		0.29	%		0.30	%8
Net investment income		2.11	%		3.27	%8
Supplemental Data
Net assets, end of period (000)	$	710		$	20
Portfolio turnover of the Series		21	%		6	%

¹  Commencement of operations.

²  Based on average shares outstanding.

³  Dividends are determined in accordance with federal income tax regulations.

⁴  Where applicable, total investment returns include the reinvestment of dividends and distributions.

⁵  Aggregate total investment return.

⁶  Includes the Fund’s share of the Series’ allocated expenses and/or net investment income.

⁷  Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

⁸  Annualized.

See Notes to Financial Statements.
	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2012	11

Notes to Financial Statements BlackRock International Index Fund

1. Organization and Significant Accounting Policies:

BlackRock International Index Fund (the “Fund”), a series of BlackRock Index Funds, Inc. (the “Corporation”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Corporation is organized as a Maryland corporation. The Fund seeks to achieve its investment objective by investing all of its assets in Master International Index Series (the “Series”) of Quantitative Master Series LLC (the “Master LLC”), an affiliate of the Fund, which has the same investment objective and strategies as the Fund. The value of the Fund’s investment in the Series reflects the Fund’s proportionate interest in the net assets of the Series. The performance of the Fund is directly affected by the performance of the Series. The percentage of the Series owned by the Fund at December 31, 2012 was 36.6%. The financial statements of the Series, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements. The Fund’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund offers multiple classes of shares. Institutional Shares and Class K Shares are sold without a sales charge and only to certain eligible investors. Investor A Shares are generally sold without a front-end sales charge. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Investor A Shares bear certain expenses related to the shareholder servicing of such shares. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures.

The following is a summary of significant accounting policies followed by the Fund:

Valuation: US GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund’s policy is to fair value its financial instruments at market value. The Fund records its investment in the Series at fair value based on the Fund’s proportionate interest in the net assets of the Series. Valuation of securities held by the Series is discussed in Note 1 of the Series’ Notes to Financial Statements, which are included elsewhere in this report.

Investment Transactions and Investment Income: For financial reporting purposes, contributions to and withdrawals from the Series are accounted on a trade date basis. The Fund records daily its proportionate share of the Series’ income, expenses and realized and unrealized gains and losses. Realized and unrealized gains and losses are adjusted for utilizing partnership tax allocation rules. In addition, the Fund accrues its own expenses. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Dividends and Distributions: Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. The portion of distributions that exceeds a Fund’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. Distributions in excess of a Fund’s taxable income and net capital gains, but not in excess of a Fund’s earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. Capital losses carried forward from years beginning before 2011 do not reduce earnings and profits, even if such carried forward losses offset current year realized gains. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP.

Income Taxes: It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

The Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s US federal tax returns remains open for each of the four years ended December 31, 2012. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or class. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses pro rated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

2. Administration Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).

The Corporation, on behalf of the Fund, entered into an Administration Agreement with BlackRock Advisors, LLC (the “Administrator”), an indirect, wholly owned subsidiary of BlackRock, to provide administrative services (other than investment advice and related portfolio activities). For such services, the Fund pays the Administrator a monthly

12 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Notes to Financial Statements (continued) BlackRock International Index Fund

fee at an annual rate of 0.24% of the average daily value of the Fund’s net assets. The Fund does not pay an investment advisory fee or investment management fee.

The Administrator contractually agreed to waive and/or reimburse fees or expenses, excluding interest expense, dividend expense, acquired fund fees and expenses and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business, in order to limit expenses. The expense limitation as a percentage of average daily net assets is as follows: 0.35% for Institutional, 0.60% for Investor A and 0.30% for Class K Shares. The Administrator has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to May 1, 2013 unless approved by the Corporation’s Board of Directors (the “Board”), including a majority of the Independent Directors. These amounts are shown as fees waived by administrator and transfer agent fees reimbursed, respectively, in the Statement of Operations.

For the year ended December 31, 2012, the amounts shown as transfer agent fees waived and/or reimbursed – class specific were as follows:

Institutional	$	7,744
Investor A	$	46,926
Class K	$	33

In addition, the Administrator waived $167,255, which is shown as fees waived by administrator in the Statement of Operations.

The Corporation, on behalf of the Fund, entered into a Distribution Agreement and Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of BlackRock. Pursuant to the Distribution Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service fees with respect to its Investor A Shares. The fees are accrued daily and paid monthly at the annual rate of 0.25% based upon the average daily net assets attributable to Investor A Shares.

Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder servicing services to the Fund. The ongoing service fee compensates BRIL and each broker-dealer for providing shareholder servicing to Investor A shareholders.

Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended December 31, 2012, the Fund did not pay any amounts to affiliates in return for these services.

The Administrator maintains a call center, which is responsible for providing certain shareholder services to the Fund, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the year ended December 31, 2012, the Fund reimbursed the Administrator the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:

Institutional	$	3,812
Investor A	$	641
Class K	$	2

Certain officers and/or directors of the Corporation are officers and/or directors of BlackRock or its affiliates. The Fund reimburses the Administrator for a portion of the compensation paid to the Corporation’s Chief Compliance Officer.

3. Income Tax Information:

US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of December 31, 2012 attributable to foreign currency transactions and the sale of stock of passive foreign investment companies by the Fund were reclassified to the following accounts:

Distributions in excess of net investment income	$	225,005
Accumulated net realized loss allocated from the Series	$	(225,005	)

The tax character of distributions paid during the fiscal years ended December 31, 2012 and December 31, 2011 was as follows:

	12/31/12		12/31/11
Ordinary income	$	8,192,718	$	8,546,155

As of December 31, 2012, the tax components of accumulated net losses were as follows:

Undistributed ordinary income	$	280,642
Capital loss carryforwards		(36,696,961	)
Net unrealized gains1		20,064,843
Qualified late-year losses2		(897,079	)
Total	$	(17,248,555	)

¹  The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the timing and recognition of partnership income.

²  The Fund has elected to defer certain qualified late-year losses and recognize such losses in the year ending December 31, 2013.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 13

Notes to Financial Statements (concluded) BlackRock International Index Fund

As of December 31, 2012, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires December 31,
2016	$	4,270,741
2017		6,596,186
No expiration date1		25,830,034
Total	$	36,696,961

¹  Must be utilized prior to losses subject to expiration.

4. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Year Ended December 31, 2012						Year Ended December 31, 20112
	Shares			Amount			Shares			Amount
Institutional
Shares sold		2,586,365		$	27,014,746			2,419,978		$	27,001,665
Shares issued to shareholders in reinvestment of dividends		133,467			1,452,499			302,801			2,862,205
Shares redeemed		(5,251,574	)		(54,524,964	)		(5,253,420	)		(55,609,457	)
Net decrease		(2,531,742	)	$	(26,057,719	)		(2,530,641	)	$	(25,745,587	)
Investor A
Shares sold		6,287,982		$	64,635,262			5,442,480		$	57,248,032
Shares issued to shareholders in reinvestment of dividends		597,968			6,462,313			567,625			5,330,566
Shares redeemed		(4,100,677	)		(42,432,223	)		(2,785,511	)		(30,152,251	)
Net increase		2,785,273		$	28,665,352			3,224,594		$	32,426,347
Class K
Shares sold		72,801		$	753,833			2,119		$	25,000
Shares issued to shareholders in reinvestment of dividends		1,909			20,814			—			—
Shares redeemed		(12,648	)		(135,792	)		—			—
Net increase		62,062		$	638,855			2,119		$	25,000
Total Net Increase		315,593		$	3,246,488			696,072		$	6,705,760

²  For the period March 31, 2011 (commencement of operations) to December 31, 2011 for Class K.

At December 31, 2012, affiliates owned 2,119 shares of Class K.

Prior to April 1, 2011, there was a 2% redemption fee on shares redeemed or exchanged that have been held for 30 days or less. The redemption fees were collected and retained by the Fund for the benefit of the remaining shareholders. The redemption fees were recorded as a credit to paid-in-capital. Effective April 1, 2011, the redemption fee was terminated and is no longer charged by the Fund.

5. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

14 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Report of Independent Registered Public Accounting Firm BlackRock International Index Fund

To the Shareholders of BlackRock International Index Fund and Board of Directors of BlackRock Index Funds, Inc.:

We have audited the accompanying statement of assets and liabilities of BlackRock International Index Fund, one of the series constituting BlackRock Index Funds, Inc., (the “Fund”) as of December 31, 2012, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock International Index Fund, of BlackRock Index Funds, Inc., as of December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 15, 2013

Important Tax Information (Unaudited)

The following information is provided with respect to the ordinary income distributions paid by the Fund for the taxable year ended December 31, 2012.

	Payable Date	July 19, 2012		December 17, 2012
Qualified Dividend Income for Individuals1,2			100%		99.02%
Foreign Source Income2			93.43%		93.43%
Foreign Taxes Paid Per Share3			$0.002142		$0.026992

¹  The Fund hereby designates the percentage indicated or the maximum amount allowable by law.

²  Expressed as a percentage of the cash distribution grossed-up for foreign taxes.

³  The foreign taxes paid represent taxes incurred by the Fund on income received by the Fund from foreign sources. Foreign taxes paid may be included in taxable income with an offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments. You should consult your tax advisor regarding the appropriate treatment of foreign taxes paid.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 15

Series Portfolio Information Master International Index Series

As of December 31, 2012

Ten Largest Holdings Percent of
Long-Term Investments

Nestlé SA, Registered Shares	2	%
HSBC Holdings Plc	2
Novartis AG, Registered Shares	1
Roche Holding AG	1
BP Plc	1
Royal Dutch Shell Plc, Class A	1
Toyota Motor Corp.	1
BHP Billiton Ltd.	1
Vodafone Group Plc	1
Sanofi	1

Geographic Allocation Percent of
Long-Term Investments

United Kingdom	22	%
Japan	20
France	10
Australia	9
Germany	9
Switzerland	9
Hong Kong	3
Sweden	3
Spain	3
Netherlands	3
Italy	2
Singapore	2
Other1	5

¹  Other includes a 1% or less investment in each of the following countries: Belgium, Denmark, Norway, Finland, Israel, Ireland, Austria, Portugal, New Zealand and Greece.

16 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Schedule of Investments December 31, 2012 Master International Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Australia — 8.6%
AGL Energy Ltd.		36,321	$	583,899
ALS Ltd./Queensland		23,053		262,974
Alumina Ltd.		160,837		154,361
Amcor Ltd.		80,303		678,700
AMP Ltd.		192,688		977,385
APA Group		54,879		316,818
Asciano Ltd.		65,230		319,105
ASX Ltd.		11,837		386,291
Aurizon Holdings Ltd.		119,562		470,164
Australia & New Zealand Banking Group Ltd.		180,841		4,762,716
Bendigo and Adelaide Bank Ltd.		25,925		230,943
BGP Holdings Plc (a)		783,183		10
BHP Billiton Ltd.		214,704		8,382,135
Boral Ltd.		52,018		238,682
Brambles Ltd.		104,179		826,065
Caltex Australia Ltd.		8,911		179,732
Centro Retail Australia		91,777		217,267
CFS Retail Property Trust		133,352		266,766
Coca-Cola Amatil Ltd.		38,338		538,776
Cochlear Ltd.		3,730		309,215
Commonwealth Bank of Australia		106,014		6,904,306
Computershare Ltd.		29,768		280,819
Crown Ltd.		27,165		303,595
CSL Ltd.		33,658		1,900,239
Dexus Property Group		300,204		318,848
Echo Entertainment Group Ltd.		48,819		176,318
Flight Centre Ltd.		3,423		96,856
Fortescue Metals Group Ltd.		94,491		470,890
Goodman Group		113,434		516,867
GPT Group		94,248		362,778
Harvey Norman Holdings Ltd.		31,404		62,516
Iluka Resources Ltd.		28,027		270,852
Incitec Pivot Ltd.		110,317		376,112
Insurance Australia Group Ltd.		138,359		681,465
Leighton Holdings Ltd.		9,898		186,845
Lend Lease Group		35,581		347,476
Macquarie Group Ltd.		21,542		806,985
Metcash Ltd.		58,890		204,156
Mirvac Group		231,349		360,034
National Australia Bank Ltd.		151,351		3,980,996
Newcrest Mining Ltd.		50,924		1,191,249
Orica Ltd.		24,331		640,055
Origin Energy Ltd.		72,792		894,810
OZ Minerals Ltd.		19,462		138,211
Qantas Airways Ltd. (a)		77,541		121,422
QBE Insurance Group Ltd.		78,658		901,256
Ramsay Health Care Ltd.		8,478		241,812
Rio Tinto Ltd.		29,010		2,039,664
Santos Ltd.		64,222		752,466
Sims Metal Management Ltd.		11,568		114,307
Sonic Healthcare Ltd.		25,257		352,553
SP AusNet		112,082		130,251
Stockland		146,669		542,311
Suncorp Group Ltd.		85,700		915,176

Common Stocks	Shares		Value
Australia (concluded)
Sydney Airport		13,793	$	48,587
Tabcorp Holdings Ltd.		47,647		152,185
Tatts Group Ltd.		91,221		287,325
Telstra Corp. Ltd.		289,910		1,321,040
Toll Holdings Ltd.		46,738		224,012
Transurban Group		87,545		556,488
Treasury Wine Estates Ltd.		43,719		215,182
Wesfarmers Ltd.		67,017		2,585,591
Westfield Group		142,962		1,578,851
Westfield Retail Trust		193,076		609,146
Westpac Banking Corp.		205,085		5,619,281
Whitehaven Coal Ltd.		30,229		112,658
Woodside Petroleum Ltd.		43,879		1,563,629
Woolworths Ltd.		82,047		2,517,065
WorleyParsons Ltd.		13,599		334,983
				65,412,523
Austria — 0.3%
Andritz AG		4,889		314,161
Erste Group Bank AG (a)		14,254		453,200
Immoeast AG NPV (a)		30,711		—
IMMOFINANZ AG (a)		60,647		255,311
OMV AG		9,760		353,664
Raiffeisen Bank AG		3,286		136,694
Telekom Austria AG		13,873		105,341
Verbund AG		4,748		117,928
Vienna Insurance Group		2,605		139,039
Voestalpine AG		7,473		274,583
				2,149,921
Belgium — 1.1%
Ageas		15,325		452,811
Anheuser-Busch InBev NV		53,477		4,657,021
Belgacom SA		9,973		293,322
Colruyt SA		5,194		257,093
Delhaize Group		6,874		276,876
Groupe Bruxelles Lambert SA		5,350		426,696
KBC Group Holding		15,841		552,095
Solvay SA		3,985		579,866
Telenet Group Holding NV		3,836		180,508
UCB SA		7,394		423,590
Umicore SA		7,605		421,112
				8,520,990
Denmark — 1.1%
A.P. Moller - Maersk A/S, Class A		38		270,647
A.P. Moller - Maersk A/S, Class B		88		666,393
Carlsberg A/S, Class B		7,119		701,338
Coloplast A/S, Class B		7,715		378,345
Danske Bank A/S (a)		43,225		734,141
DSV A/S		12,590		325,734
Novo-Nordisk A/S, Class B		27,117		4,415,641
Novozymes A/S, Class B		16,127		457,791
TDC A/S		32,329		229,055
Tryg A/S		1,666		126,091

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:	AUD	Australian Dollar	NOK	Norwegian Krone
	EUR	Euro	SEK	Swedish Krona
	GBP	British Pound	SGD	Singapore Dollar
	HKD	Hong Kong Dollar	USD	US Dollar
	ILS	Israeli New Shekel

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 17

Schedule of Investments (continued) Master International Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Denmark (concluded)
William Demant Holding A/S (a)		1,739	$	149,400
				8,454,576
Finland — 0.8%
Elisa Oyj		9,184		203,607
Fortum Oyj		29,837		558,576
Kesko Oyj, Class B		4,450		146,093
Kone Oyj, Class B		10,442		772,287
Metso Oyj		8,429		359,849
Neste Oil Oyj		8,875		115,057
Nokia Oyj		249,824		987,232
Nokian Renkaat Oyj		7,335		293,819
Orion Oyj, Class B		6,361		187,286
Pohjola Bank Plc, Class A		9,274		138,865
Sampo Oyj, Class A		27,898		903,495
Stora Enso Oyj, Class R		35,753		250,250
UPM-Kymmene Oyj		35,010		411,884
Wartsila Oyj		11,026		480,026
				5,808,326
France — 9.2%
Accor SA		9,663		344,650
Aeroports de Paris		1,990		154,071
Air Liquide SA		20,769		2,623,907
Alstom SA		13,906		560,188
ArcelorMittal		62,338		1,086,890
Arkema		4,137		434,379
Atos Origin SA		3,685		258,786
AXA SA		117,705		2,113,485
BNP Paribas SA		66,780		3,801,788
Bouygues SA		12,430		369,881
Bureau Veritas SA		3,673		411,852
Cap Gemini SA		9,826		429,667
Carrefour SA		40,125		1,033,112
Casino Guichard-Perrachon SA		3,774		361,483
Christian Dior SA		3,653		622,668
Cie Generale de Geophysique-Veritas (a)		10,523		319,755
Cie Generale des Etablissements Michelin, Class B		12,115		1,160,846
CNP Assurances		11,119		171,151
Compagnie de Saint-Gobain		26,511		1,138,485
Credit Agricole SA (a)		67,413		549,016
Danone SA		38,538		2,538,581
Dassault Systemes SA		4,221		471,939
Edenred		11,514		356,109
EDF SA		15,751		291,874
Essilor International SA		13,475		1,359,051
Eurazeo		1,897		91,847
European Aeronautic Defence and Space Co. NV		27,521		1,084,912
Eutelsat Communications SA		8,836		293,887
Fonciere Des Regions		1,752		147,436
France Telecom SA		123,432		1,369,332
GDF Suez		85,018		1,751,036
Gecina SA		1,450		164,202
Groupe Eurotunnel SA		36,810		286,041
ICADE		1,573		140,441
Iliad SA		1,480		254,056
Imerys SA		2,274		145,851
JC Decaux SA		4,659		111,205
Klepierre		6,465		258,401
L’Oreal SA		16,058		2,234,349
Common Stocks	Shares		Value
France (concluded)
Lafarge SA		12,324	$	795,789
Lagardere S.C.A.		7,712		259,400
Legrand SA		15,775		669,429
LVMH Moet Hennessy Louis Vuitton SA		16,919		3,122,524
Natixis		60,061		205,295
Pernod Ricard SA		14,130		1,639,376
Peugeot SA (a)		16,412		119,766
PPR		5,031		944,875
Publicis Groupe SA		11,791		709,383
Remy Cointreau SA		1,488		162,489
Renault SA		12,792		694,708
Rexel SA		7,434		152,046
Safran SA		15,263		660,994
Sanofi		79,407		7,530,153
Schneider Electric SA		34,990		2,562,693
Scor SE		11,009		297,557
SES SA		20,384		587,074
Societe BIC SA		1,868		223,913
Societe Generale SA (a)		46,751		1,777,588
Sodexo		6,353		536,820
Suez Environnement Co.		18,139		218,807
Technip SA		6,775		783,434
Thales SA		5,907		205,815
Total SA		141,734		7,374,833
Unibail-Rodamco SE		6,122		1,484,604
Vallourec SA		6,829		358,468
Veolia Environnement SA		21,974		266,392
Vinci SA		30,641		1,475,276
Vivendi SA		86,622		1,959,038
Wendel SA		2,140		220,595
Zodiac Aerospace		2,220		245,779
				69,541,523
Germany — 8.4%
Adidas AG		13,927		1,242,974
Allianz SE, Registered Shares		30,315		4,225,819
Axel Springer AG		2,723		116,571
BASF SE		61,156		5,782,904
Bayer AG, Registered Shares		55,061		5,250,718
Bayerische Motoren Werke AG		22,043		2,145,026
Bayerische Motoren Werke AG, Preference Shares		3,394		219,860
Beiersdorf AG		6,773		554,577
Brenntag AG		3,405		448,593
Celesio AG		5,979		103,562
Commerzbank AG (a)		249,380		477,751
Continental AG		7,324		853,636
Daimler AG, Registered Shares		60,396		3,325,135
Deutsche Bank AG, Registered Shares		61,885		2,722,618
Deutsche Boerse AG		12,733		780,813
Deutsche Lufthansa AG, Registered Shares		15,510		293,205
Deutsche Post AG, Registered Shares		60,361		1,329,481
Deutsche Telekom AG, Registered Shares		187,001		2,128,614
E.ON AG		119,897		2,248,791
Fraport AG Frankfurt Airport Services Worldwide		2,480		144,674
Fresenius Medical Care AG & Co. KGaA		14,071		971,068
Fresenius SE & Co. KGaA		8,285		953,341
GEA Group AG		11,794		383,491
Hannover Rueckversicherung AG, Registered Shares		4,082		319,717
HeidelbergCement AG		9,491		580,771
Henkel AG & Co. KGaA		8,644		593,246

See Notes to Financial Statements.

18 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master International Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Germany (concluded)
Henkel AG & Co. KGaA, Preference Shares		11,859	$	975,652
Hochtief AG (a)		1,911		111,781
Hugo Boss AG		1,594		169,403
Infineon Technologies AG		73,039		595,008
K+S AG		11,603		538,887
Kabel Deutschland Holding AG		5,865		441,432
Lanxess AG		5,465		481,900
Linde AG		12,317		2,154,837
MAN SE		2,811		301,960
Merck KGaA		4,332		570,935
Metro AG		8,809		244,726
Muenchener Rueckversicherungs AG, Registered Shares		11,940		2,155,501
Porsche Automobil Holding SE, Preference Shares		10,092		830,721
ProSieben SAT.1 Media AG, Preference Shares		5,820		165,776
RWE AG		32,577		1,351,212
RWE AG, Non-Voting Preference Shares		2,740		103,605
Salzgitter AG		2,650		138,883
SAP AG		61,340		4,932,510
Siemens AG, Registered Shares		54,784		5,990,663
Suedzucker AG		5,533		227,113
ThyssenKrupp AG		25,925		612,156
United Internet AG		6,744		145,841
Volkswagen AG		1,966		426,498
Volkswagen AG, Preference Shares		9,629		2,209,363
				64,073,319
Greece — 0.1%
Coca-Cola Hellenic Bottling Co. SA (a)		13,339		311,641
OPAP SA		15,543		111,452
				423,093
Hong Kong — 3.1%
AIA Group Ltd.		721,600		2,862,108
ASM Pacific Technology Ltd.		13,304		163,334
Bank of East Asia Ltd.		92,732		360,107
BOC Hong Kong Holdings Ltd.		248,400		781,412
Cathay Pacific Airways Ltd.		79,263		147,223
Cheung Kong Holdings Ltd.		92,835		1,444,456
Cheung Kong Infrastructure Holdings Ltd.		34,500		213,107
CLP Holdings Ltd.		120,187		1,009,791
First Pacific Co. Ltd.		142,000		156,813
Galaxy Entertainment Group Ltd. (a)		142,000		569,389
Hang Lung Properties Ltd.		148,000		595,613
Hang Seng Bank Ltd.		51,253		791,190
Henderson Land Development Co. Ltd.		64,491		461,704
HKT Trust/HKT Ltd.		156,000		153,225
Hong Kong & China Gas Ltd.		347,295		954,196
Hong Kong Exchanges and Clearing Ltd.		72,727		1,258,625
Hopewell Holdings Ltd.		37,849		164,107
Hutchison Whampoa Ltd.		142,176		1,506,631
Hysan Development Co. Ltd.		41,791		203,223
Kerry Properties Ltd.		46,500		244,288
Li & Fung Ltd.		389,980		703,713
The Link REIT		151,914		760,801
MGM China Holdings Ltd.		59,600		109,773
MTR Corp.		95,000		376,442
New World Development Co. Ltd.		243,226		385,069
NWS Holdings Ltd.		91,500		155,516
Orient Overseas International Ltd.		15,057		99,401
Common Stocks	Shares		Value
Hong Kong (concluded)
PCCW Ltd.		276,000	$	121,991
Power Assets Holdings Ltd.		91,500		785,030
Sands China Ltd.		160,600		717,989
Shangri-La Asia Ltd.		107,905		217,367
Sino Land Co. Ltd.		201,263		368,541
SJM Holdings Ltd.		131,000		309,168
Sun Hung Kai Properties Ltd.		104,324		1,582,097
Swire Pacific Ltd., Class A		45,077		563,865
Swire Properties Ltd.		78,600		264,726
Wharf Holdings Ltd.		100,357		799,817
Wheelock & Co. Ltd.		62,000		316,267
Wing Hang Bank Ltd.		11,500		121,133
Wynn Macau Ltd. (a)		103,200		284,180
Yue Yuen Industrial Holdings Ltd.		49,285		166,692
				23,250,120
Ireland — 0.4%
CRH Plc		48,102		978,208
Elan Corp. Plc (a)		34,169		350,356
Experian Plc		67,203		1,083,105
Irish Bank Resolution Corp. Ltd. (a)		62,641		1
James Hardie Industries SE		29,405		284,694
Kerry Group Plc		10,046		530,639
Prothena Corp. Plc (a)		833		6,109
Ryanair Holdings Plc		10,891		68,519
				3,301,631
Israel — 0.5%
Bank Hapoalim BM (a)		70,522		302,570
Bank Leumi Le-Israel BM (a)		83,927		285,673
Bezeq The Israeli Telecommunication Corp. Ltd.		131,348		152,142
Delek Group Ltd.		296		69,653
Israel Chemicals Ltd.		30,115		362,679
The Israel Corp. Ltd.		157		103,272
Mellanox Technologies Ltd. (a)		2,298		142,342
Mizrahi Tefahot Bank Ltd. (a)		7,472		77,490
Nice Systems Ltd. (a)		4,090		136,987
Teva Pharmaceutical Industries Ltd.		62,794		2,333,391
				3,966,199
Italy — 2.2%
Assicurazioni Generali SpA		77,728		1,420,456
Atlantia SpA		22,405		406,843
Banca Monte dei Paschi di Siena SpA (a)		399,301		119,430
Banco Popolare SC (a)		115,161		191,762
Enel Green Power SpA		113,673		211,746
Enel SpA		438,202		1,822,693
Eni SpA		169,380		4,149,390
Exor SpA		4,458		112,350
Fiat Industrial SpA		56,948		623,898
Fiat SpA (a)		57,559		289,948
Finmeccanica SpA (a)		27,245		157,673
Intesa Sanpaolo SpA		670,677		1,159,809
Intesa Sanpaolo SpA, Non-Convertible Savings Shares		56,017		79,558
Luxottica Group SpA		10,836		447,254
Mediobanca SpA		33,549		207,233
Pirelli & C SpA		15,554		179,208
Prysmian SpA		13,841		276,280
Saipem SpA		17,813		693,869
Snam Rete Gas SpA		114,239		533,217

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 19

Schedule of Investments (continued) Master International Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Italy (concluded)
Telecom Italia SpA		630,665	$	572,055
Telecom Italia SpA, Non-Convertible Savings Shares		396,336		315,440
Tenaris SA		31,423		655,181
Terna SpA		85,205		340,969
UniCredit SpA (a)		269,658		1,327,918
Unione di Banche Italiane ScpA		56,556		263,726
				16,557,906
Japan — 19.4%
ABC-Mart, Inc.		1,600		69,657
Acom Co. Ltd. (a)		2,450		70,568
Advantest Corp.		10,100		159,510
Aeon Co. Ltd.		39,700		453,712
Aeon Credit Service Co. Ltd.		4,400		89,032
Aeon Mall Co. Ltd.		5,000		123,005
Air Water, Inc.		10,000		127,988
Aisin Seiki Co. Ltd.		13,000		405,953
Ajinomoto Co., Inc.		43,000		568,995
Alfresa Holdings Corp.		2,900		113,353
All Nippon Airways Co. Ltd.		80,000		168,072
Amada Co. Ltd.		24,000		156,169
Aozora Bank Ltd.		40,000		122,989
Asahi Glass Co. Ltd.		67,100		489,937
Asahi Group Holdings Ltd.		25,900		551,482
Asahi Kasei Corp.		84,000		496,701
Asics Corp.		10,000		152,765
Astellas Pharma, Inc.		29,500		1,326,367
The Bank of Kyoto Ltd.		21,000		177,850
The Bank of Yokohama Ltd.		83,000		385,918
Benesse Holdings, Inc.		4,300		178,950
Bridgestone Corp.		43,300		1,127,166
Brother Industries Ltd.		15,700		169,018
Calbee, Inc.		1,000		70,463
Canon, Inc.		75,500		2,926,360
Casio Computer Co. Ltd.		14,000		122,881
Central Japan Railway Co.		9,700		787,247
The Chiba Bank Ltd.		50,000		292,908
Chiyoda Corp.		10,000		143,252
Chubu Electric Power Co., Inc.		43,000		573,824
Chugai Pharmaceutical Co. Ltd.		15,100		289,317
The Chugoku Bank Ltd.		13,000		181,451
The Chugoku Electric Power Co., Inc.		19,300		303,709
Citizen Holdings Co. Ltd.		19,000		100,366
Coca-Cola West Co. Ltd.		3,900		60,217
Cosmo Oil Co. Ltd.		38,000		85,104
Credit Saison Co. Ltd.		10,200		255,129
Dai Nippon Printing Co. Ltd.		38,000		297,975
The Dai-ichi Life Insurance Co. Ltd.		566		796,395
Daicel Corp.		21,000		138,943
Daido Steel Co. Ltd.		21,000		106,486
Daihatsu Motor Co. Ltd.		12,000		239,074
Daiichi Sankyo Co. Ltd.		44,500		683,174
Daikin Industries Ltd.		15,400		528,976
Dainippon Sumitomo Pharma Co. Ltd.		10,800		129,748
Daito Trust Construction Co. Ltd.		4,900		463,099
Daiwa House Industry Co. Ltd.		33,000		567,361
Daiwa Securities Group Inc.		110,000		613,694
Dena Co. Ltd.		6,900		226,350
Denki Kagaku Kogyo KK		29,000		99,290
Denso Corp.		32,400		1,128,304
Common Stocks	Shares		Value
Japan (continued)
Dentsu, Inc.		12,113	$	324,455
Don Quijote Co. Ltd.		3,700		136,108
East Japan Railway Co.		22,649		1,464,577
Eisai Co. Ltd.		16,800		701,279
Electric Power Development Co. Ltd.		7,700		182,628
FamilyMart Co. Ltd.		4,000		164,792
FANUC Corp.		12,700		2,362,828
Fast Retailing Co. Ltd.		3,500		893,238
Fuji Electric Co. Ltd.		40,800		100,385
Fuji Heavy Industries Ltd.		40,000		504,413
FUJIFILM Holdings Corp.		31,100		625,727
Fujitsu Ltd.		125,000		524,246
Fukuoka Financial Group, Inc.		50,000		200,238
Furukawa Electric Co. Ltd. (a)		46,000		103,459
Gree, Inc.		6,400		99,325
GS Yuasa Corp.		25,000		100,795
The Gunma Bank Ltd.		26,000		127,206
The Hachijuni Bank Ltd.		28,000		140,477
Hakuhodo DY Holdings, Inc.		1,640		106,126
Hamamatsu Photonics KK		4,900		178,158
Hankyu Hanshin Holdings, Inc.		75,000		387,774
Hino Motors Ltd.		18,000		162,698
Hirose Electric Co. Ltd.		2,100		251,453
The Hiroshima Bank Ltd.		35,000		146,772
Hisamitsu Pharmaceutical Co., Inc.		4,000		199,081
Hitachi Chemical Co. Ltd.		7,400		111,542
Hitachi Construction Machinery Co. Ltd.		7,300		153,524
Hitachi High-Technologies Corp.		4,400		91,052
Hitachi Ltd.		309,000		1,818,312
Hitachi Metals Ltd.		12,000		102,335
Hokkaido Electric Power Co., Inc.		12,400		150,533
Hokuriku Electric Power Co.		11,400		135,290
Honda Motor Co. Ltd.		108,500		4,018,256
Hoya Corp.		29,000		571,414
Hulic Co. Ltd.		15,900		107,880
Ibiden Co. Ltd.		8,400		134,417
Idemitsu Kosan Co. Ltd.		1,500		130,708
IHI Corp.		87,000		225,600
Inpex Corp.		147		786,209
Isetan Mitsukoshi Holdings Ltd.		23,105		226,114
Isuzu Motors Ltd.		80,000		477,394
ITOCHU Corp.		100,200		1,059,023
Itochu Techno-Solutions Corp.		1,700		70,003
The Iyo Bank Ltd.		17,000		134,758
J. Front Retailing Co. Ltd.		31,600		175,138
Japan Airlines Co. Ltd. (a)		3,940		169,355
Japan Petroleum Exploration Co.		2,000		70,635
Japan Prime Realty Investment Corp.		52		150,291
Japan Real Estate Investment Corp.		40		394,085
Japan Retail Fund Investment Corp.		136		250,004
The Japan Steel Works Ltd.		21,000		136,813
Japan Tobacco, Inc.		59,900		1,692,137
JFE Holdings, Inc.		33,200		625,709
JGC Corp.		13,000		405,099
The Joyo Bank Ltd.		44,000		209,056
JS Group Corp.		17,900		399,269
JSR Corp.		11,600		221,416
JTEKT Corp.		15,100		143,955
Jupiter Telecommunications Co. Ltd.		143		178,100
JX Holdings, Inc.		150,560		850,027

See Notes to Financial Statements.

20 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master International Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Japan (continued)
Kajima Corp.		57,800	$	191,242
Kamigumi Co. Ltd.		15,000		119,682
Kaneka Corp.		20,000		101,193
The Kansai Electric Power Co., Inc.		49,500		519,856
Kansai Paint Co. Ltd.		15,000		161,653
Kao Corp.		35,000		912,014
Kawasaki Heavy Industries Ltd.		92,000		250,197
KDDI Corp.		17,900		1,265,481
Keikyu Corp.		32,000		284,084
Keio Corp.		38,000		283,294
Keisei Electric Railway Co. Ltd.		18,000		151,898
Keyence Corp.		2,992		829,755
Kikkoman Corp.		12,000		171,350
Kinden Corp.		10,000		65,168
Kintetsu Corp.		108,000		442,553
Kirin Holdings Co. Ltd.		58,000		682,428
Kobe Steel Ltd. (a)		166,000		212,103
Koito Manufacturing Co. Ltd.		6,000		87,505
Komatsu Ltd.		62,200		1,596,076
Konami Corp.		6,700		150,879
Konica Minolta Holdings, Inc.		31,000		223,086
Kubota Corp.		74,000		850,807
Kuraray Co. Ltd.		23,100		302,822
Kurita Water Industries Ltd.		7,500		164,708
Kyocera Corp.		10,300		933,852
Kyowa Hakko Kirin Co. Ltd.		17,000		167,709
Kyushu Electric Power Co., Inc.		28,000		319,234
Lawson, Inc.		4,100		278,124
M3, Inc.		39		62,247
Mabuchi Motor Co. Ltd.		1,800		76,759
Makita Corp.		7,600		353,053
Marubeni Corp.		111,000		796,451
Marui Group Co. Ltd.		15,700		125,422
Maruichi Steel Tube Ltd.		3,400		78,360
Mazda Motor Corp. (a)		175,400		359,976
McDonald’s Holdings Co. Japan Ltd.		4,500		118,746
Medipal Holdings Corp.		9,900		109,765
Meiji Holdings Co. Ltd.		3,993		173,167
Miraca Holdings, Inc.		3,700		149,187
Mitsubishi Chemical Holdings Corp.		90,500		450,833
Mitsubishi Corp.		93,600		1,802,076
Mitsubishi Electric Corp.		129,000		1,098,352
Mitsubishi Estate Co. Ltd.		83,000		1,987,078
Mitsubishi Gas Chemical Co., Inc.		27,000		165,614
Mitsubishi Heavy Industries Ltd.		203,200		982,925
Mitsubishi Logistics Corp.		9,000		129,143
Mitsubishi Materials Corp.		73,000		249,563
Mitsubishi Motors Corp. (a)		262,000		270,880
Mitsubishi Tanabe Pharma Corp.		14,800		193,017
Mitsubishi UFJ Financial Group, Inc.		848,474		4,591,189
Mitsubishi UFJ Lease & Finance Co. Ltd.		3,840		165,182
Mitsui & Co. Ltd.		115,700		1,734,212
Mitsui Chemicals, Inc.		57,000		148,545
Mitsui Fudosan Co. Ltd.		55,000		1,345,469
Mitsui OSK Lines Ltd.		76,000		226,400
Mizuho Financial Group, Inc.		1,521,364		2,789,398
MS&AD Insurance Group Holdings		33,670		671,951
Murata Manufacturing Co. Ltd.		13,400		790,484
Nabtesco Corp.		6,600		147,419
Namco Bandai Holdings, Inc.		11,800		152,954
Common Stocks	Shares		Value
Japan (continued)
NEC Corp. (a)		157,000	$	331,166
Nexon Co. Ltd. (a)		7,300		73,935
NGK Insulators Ltd.		19,000		225,391
NGK Spark Plug Co. Ltd.		13,000		173,177
NHK Spring Co. Ltd.		10,700		88,168
Nidec Corp.		7,300		426,311
Nikon Corp.		22,700		670,204
Nintendo Co. Ltd.		7,200		768,796
Nippon Building Fund, Inc.		41		424,136
Nippon Electric Glass Co. Ltd.		23,500		133,809
Nippon Express Co. Ltd.		59,000		243,802
Nippon Meat Packers, Inc.		11,000		152,482
Nippon Paper Group, Inc.		7,094		98,566
Nippon Steel Corp.		506,265		1,246,511
Nippon Telegraph & Telephone Corp.		29,076		1,224,186
Nippon Yusen KK		104,000		244,798
The Nishi-Nippon City Bank Ltd.		48,000		119,104
Nissan Motor Co. Ltd.		165,500		1,570,409
Nisshin Seifun Group, Inc.		12,500		156,427
Nissin Foods Holdings Co. Ltd.		3,900		147,959
Nitori Holdings Co. Ltd.		2,300		168,513
Nitto Denko Corp.		11,010		542,228
NKSJ Holdings, Inc.		24,575		527,110
NOK Corp.		7,100		111,180
Nomura Holdings, Inc.		241,700		1,430,692
Nomura Real Estate Holdings, Inc.		6,500		124,296
Nomura Real Estate Office Fund, Inc.		19		109,450
Nomura Research Institute Ltd.		6,800		141,649
NSK Ltd.		29,000		206,354
NTT Data Corp.		86		269,199
NTT DoCoMo, Inc.		1,017		1,466,026
NTT Urban Development Corp.		84		81,474
Obayashi Corp.		43,000		242,439
Odakyu Electric Railway Co. Ltd.		42,000		436,977
OJI Paper Co. Ltd.		52,000		179,366
Olympus Corp. (a)		14,800		287,131
Omron Corp.		13,600		326,445
Ono Pharmaceutical Co. Ltd.		5,500		280,963
Oracle Corp. Japan		2,600		108,310
Oriental Land Co. Ltd.		3,400		411,755
ORIX Corp.		6,910		780,543
Osaka Gas Co. Ltd.		123,000		446,776
Otsuka Corp.		1,100		83,227
Otsuka Holdings Co. Ltd.		24,000		676,111
Panasonic Corp.		145,700		890,434
Park24 Co. Ltd.		7,000		110,550
Rakuten, Inc.		48,400		377,445
Resona Holdings, Inc.		126,756		579,575
Ricoh Co. Ltd.		43,000		456,421
Rinnai Corp.		2,300		156,271
Rohm Co. Ltd.		6,400		209,215
Sankyo Co. Ltd.		3,200		126,976
Sanrio Co. Ltd.		3,200		102,092
Santen Pharmaceutical Co. Ltd.		4,800		184,382
SBI Holdings, Inc.		15,240		136,235
Secom Co. Ltd.		14,100		710,389
Sega Sammy Holdings, Inc.		13,432		226,723
Sekisui Chemical Co. Ltd.		29,000		252,987
Sekisui House Ltd.		36,000		394,188
Seven & I Holdings Co. Ltd.		50,200		1,415,176

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 21

Schedule of Investments (continued) Master International Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Japan (continued)
Seven Bank Ltd.		33,800	$	89,157
Sharp Corp.		64,000		223,836
Shikoku Electric Power Co., Inc.		11,200		178,677
Shimadzu Corp.		16,000		109,180
Shimamura Co. Ltd.		1,600		155,481
Shimano, Inc.		5,100		326,569
Shimizu Corp.		41,000		154,124
Shin-Etsu Chemical Co. Ltd.		27,300		1,666,120
Shinsei Bank Ltd.		102,000		204,157
Shionogi & Co. Ltd.		19,700		328,277
Shiseido Co. Ltd.		23,800		335,948
The Shizuoka Bank Ltd.		36,000		351,652
Showa Denko KK		91,000		139,087
Showa Shell Sekiyu KK		13,200		74,768
SMC Corp.		3,500		635,791
Softbank Corp.		59,000		2,161,831
Sojitz Corp.		87,100		128,781
Sony Corp.		66,900		750,314
Sony Financial Holdings, Inc.		11,400		204,952
Square Enix Holdings Co. Ltd.		4,600		58,516
Stanley Electric Co. Ltd.		9,600		136,446
Sumco Corp. (a)		7,000		68,855
Sumitomo Chemical Co. Ltd.		101,000		318,295
Sumitomo Corp.		74,900		960,952
Sumitomo Electric Industries Ltd.		50,600		584,876
Sumitomo Heavy Industries Ltd.		38,000		182,116
Sumitomo Metal Mining Co. Ltd.		36,000		508,171
Sumitomo Mitsui Financial Group, Inc.		89,450		3,250,773
Sumitomo Mitsui Trust Holdings, Inc.		206,820		728,690
Sumitomo Realty & Development Co. Ltd.		23,000		766,219
Sumitomo Rubber Industries Ltd.		11,500		139,061
Suruga Bank Ltd.		12,000		147,589
Suzuken Co. Ltd.		4,900		138,048
Suzuki Motor Corp.		24,500		641,123
Sysmex Corp.		4,700		216,429
T&D Holdings, Inc.		38,400		467,530
Taiheiyo Cement Corp.		76,000		208,947
Taisei Corp.		68,000		226,119
Taisho Pharmaceutical Holdings Co. Ltd.		2,400		164,839
Taiyo Nippon Sanso Corp.		15,000		86,298
Takashimaya Co. Ltd.		19,000		135,205
Takeda Pharmaceutical Co. Ltd.		52,600		2,350,957
TDK Corp.		8,400		305,901
Teijin Ltd.		63,000		156,892
Terumo Corp.		10,100		401,070
THK Co. Ltd.		8,100		145,684
Tobu Railway Co. Ltd.		69,000		365,917
Toho Co. Ltd.		7,700		135,524
Toho Gas Co. Ltd.		27,000		144,787
Tohoku Electric Power Co., Inc. (a)		30,700		286,263
Tokio Marine Holdings, Inc.		46,100		1,284,311
The Tokyo Electric Power Co., Inc. (a)		95,000		228,955
Tokyo Electron Ltd.		11,300		521,170
Tokyo Gas Co. Ltd.		162,000		740,187
Tokyu Corp.		77,000		433,797
Tokyu Land Corp.		28,000		205,159
TonenGeneral Sekiyu KK		19,000		164,307
Toppan Printing Co. Ltd.		36,000		223,168
Toray Industries, Inc.		96,700		594,030
Toshiba Corp.		269,000		1,064,761
Common Stocks	Shares		Value
Japan (concluded)
Toto Ltd.		20,000	$	150,361
Toyo Seikan Kaisha Ltd.		10,300		138,798
Toyo Suisan Kaisha Ltd.		6,000		159,863
Toyoda Gosei Co. Ltd.		4,100		83,340
Toyota Boshoku Corp.		3,600		41,740
Toyota Industries Corp.		10,600		338,415
Toyota Motor Corp.		183,700		8,578,078
Toyota Tsusho Corp.		14,200		350,495
Trend Micro, Inc.		6,900		208,484
Tsumura & Co.		4,100		123,945
Ube Industries Ltd.		68,000		163,352
Uni-charm Corp.		7,700		400,127
Ushio, Inc.		6,300		69,084
USS Co. Ltd.		1,460		152,029
West Japan Railway Co.		11,300		445,182
Yahoo Japan Corp.		962		311,491
Yakult Honsha Co. Ltd.		6,300		275,953
Yamada Denki Co. Ltd.		5,960		230,360
Yamaguchi Financial Group, Inc.		14,000		123,639
Yamaha Corp.		10,800		114,543
Yamaha Motor Co. Ltd.		18,200		201,615
Yamato Holdings Co. Ltd.		25,400		386,004
Yamato Kogyo Co. Ltd.		2,900		84,933
Yamazaki Baking Co. Ltd.		8,000		89,142
Yaskawa Electric Corp.		15,000		144,750
Yokogawa Electric Corp.		13,900		152,417
				146,785,904
Netherlands — 2.6%
Aegon NV		116,809		754,565
Akzo Nobel NV		15,857		1,049,682
ASML Holding NV		20,962		1,344,369
Corio NV		4,309		197,594
DE Master Blenders 1753 NV (a)		38,966		447,669
Delta Lloyd NV		9,644		158,872
Fugro NV		4,564		270,818
Gemalto NV		5,200		469,377
Heineken Holding NV		6,580		362,312
Heineken NV		15,336		1,028,179
ING Groep NV (a)		255,006		2,422,042
Koninklijke Ahold NV		67,086		899,556
Koninklijke Boskalis Westminster NV		4,972		225,067
Koninklijke DSM NV		10,262		625,424
Koninklijke KPN NV		66,783		330,264
Koninklijke Philips Electronics NV		69,203		1,832,509
Koninklijke Vopak NV		4,783		338,099
QIAGEN NV (a)		15,859		288,018
Randstad Holding NV		8,087		300,166
Reed Elsevier NV		45,782		678,841
STMicroelectronics NV		42,937		311,703
TNT Express NV		22,393		249,171
Unilever NV CVA		108,462		4,150,147
Wolters Kluwer NV		20,149		413,894
Ziggo NV		8,074		263,874
				19,412,212
New Zealand — 0.1%
Auckland International Airport Ltd.		62,385		138,086
Contact Energy Ltd. (a)		25,128		108,502
Fletcher Building Ltd.		45,486		319,280

See Notes to Financial Statements.

22 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master International Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
New Zealand (concluded)
SKYCITY Entertainment Group Ltd.		39,154	$	122,958
Telecom Corp. of New Zealand Ltd.		125,692		237,911
				926,737
Norway — 0.9%
Aker Solutions ASA		10,661		220,775
DnB NOR ASA		65,362		835,435
Gjensidige Forsikring ASA		13,051		187,550
Norsk Hydro ASA		61,657		312,942
Orkla ASA		51,153		448,281
Seadrill Ltd.		23,427		863,095
Statoil ASA		74,298		1,872,651
Subsea 7 SA		18,626		447,626
Telenor ASA		46,723		951,365
Yara International ASA		12,442		620,341
				6,760,061
Portugal — 0.2%
Banco Espirito Santo SA, Registered Shares (a)		140,243		166,799
EDP—Energias de Portugal SA		124,913		379,958
Galp Energia SGPS SA		18,070		280,494
Jeronimo Martins SGPS SA		14,755		285,308
Portugal Telecom SGPS SA, Registered Shares		41,589		207,105
				1,319,664
Singapore — 1.8%
Ascendas Real Estate Investment Trust		129,962		254,325
CapitaCommercial Trust		137,000		190,118
CapitaLand Ltd.		169,749		522,506
CapitaMall Trust		157,700		277,122
CapitaMalls Asia Ltd.		91,000		146,560
City Developments Ltd.		33,535		358,656
ComfortDelGro Corp. Ltd.		124,816		183,620
DBS Group Holdings Ltd.		121,407		1,490,454
Fraser and Neave Ltd.		61,096		488,192
Genting Singapore Plc		405,227		465,548
Global Logistic Properties Ltd.		136,000		314,529
Golden Agri-Resources Ltd.		456,251		245,531
Hutchison Port Holdings Trust		351,000		280,929
Jardine Cycle & Carriage Ltd.		6,721		267,696
Keppel Corp. Ltd.		96,577		881,899
Keppel Land Ltd.		51,000		170,812
Noble Group Ltd.		265,840		256,834
Olam International Ltd.		108,900		139,885
Oversea-Chinese Banking Corp.		171,914		1,385,280
SembCorp Industries Ltd.		66,590		290,354
Sembcorp Marine Ltd.		55,197		210,863
Singapore Airlines Ltd.		36,009		319,383
Singapore Exchange Ltd.		57,000		331,232
Singapore Press Holdings Ltd.		84,316		279,212
Singapore Technologies Engineering Ltd.		102,213		322,605
Singapore Telecommunications Ltd.		531,132		1,445,225
StarHub Ltd.		39,157		122,648
United Overseas Bank Ltd.		84,572		1,387,322
UOL Group Ltd.		32,457		160,074
Wilmar International Ltd.		125,670		346,948
Yangzijiang Shipbuilding Holdings Ltd.		135,183		108,306
				13,644,668
Common Stocks	Shares		Value
Spain — 2.9%
Abertis Infraestructuras SA		24,845	$	410,349
Acciona SA		1,687		125,983
ACS Actividades de Construccion y Servicios SA		9,222		233,718
Amadeus IT Holding SA, Class A		20,550		519,327
Banco Bilbao Vizcaya Argentaria SA		362,784		3,370,566
Banco de Sabadell SA (a)		189,193		494,792
Banco Popular Espanol SA		363,656		284,244
Banco Santander SA		687,221		5,585,050
Bankia SA (a)		64,874		33,482
Caixa Bank		54,079		189,442
Distribuidora Internacional de Alimentacion SA		39,673		253,477
Enagas SA		12,424		266,172
Ferrovial SA		26,864		399,907
Gas Natural SDG SA		23,527		424,129
Grifols SA (a)		9,819		343,352
Iberdrola SA		265,625		1,483,437
Inditex SA		14,524		2,040,713
International Consolidated Airlines Group SA (a)		61,141		181,505
Mapfre SA		51,574		158,906
Red Electrica Corp. SA		7,069		349,180
Repsol YPF SA		54,351		1,109,452
Telefonica SA		272,711		3,692,246
Zardoya Otis SA		10,398		148,228
				22,097,657
Sweden — 3.0%
Alfa Laval AB		22,201		464,218
Assa Abloy AB, Class B		22,252		837,625
Atlas Copco AB, Class A		44,700		1,239,543
Atlas Copco AB, Class B		25,967		637,399
Boliden AB		17,900		340,118
Electrolux AB, Class B		15,948		421,257
Elekta AB, B Shares		24,237		377,914
Getinge AB, Class B		13,246		450,269
Hennes & Mauritz AB, Class B		63,209		2,190,636
Hexagon AB, Class B		15,935		402,968
Husqvarna AB, Class B		27,598		167,493
Industrivarden AB, Class C		7,998		133,252
Investor AB, Class B		30,313		796,327
Kinnevik Investment AB, Class B		13,966		292,133
Lundin Petroleum AB (a)		15,138		350,327
Millicom International Cellular SA		4,298		373,070
Nordea Bank AB		175,249		1,685,706
Ratos AB, Class B		12,958		124,796
Sandvik AB		66,796		1,073,528
Scania AB, Class B		21,133		439,384
Securitas AB, Class B		20,839		182,689
Skandinaviska Enskilda Banken AB, Class A		94,711		810,316
Skanska AB, Class B		25,589		419,938
SKF AB, Class B		26,090		660,797
Svenska Cellulosa AB, B Shares		38,818		844,004
Svenska Handelsbanken AB, Class A		33,004		1,186,556
Swedbank AB, Class A		53,331		1,047,707
Swedish Match AB		13,535		454,369
Tele2 AB, Class B		21,497		388,555
Telefonaktiebolaget LM Ericsson, Class B		202,608		2,046,594
TeliaSonera AB		144,106		978,334
Volvo AB, Class B		92,868		1,280,568
				23,098,390

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 23

Schedule of Investments (continued) Master International Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Switzerland — 8.4%
ABB Ltd., Registered Shares (a)		146,409	$	3,036,160
Actelion Ltd., Registered Shares (a)		7,187		343,904
Adecco SA, Registered Shares (a)		8,765		464,179
Aryzta AG (a)		5,754		296,074
Baloise Holding AG, Registered Shares		3,186		275,184
Banque Cantonale Vaudoise		189		100,656
Barry Callebaut AG (a)		122		118,028
Cie Financiere Richemont SA, Class A Shares		34,754		2,728,033
Credit Suisse Group AG (a)		83,491		2,037,712
EMS-Chemie Holding AG		575		135,559
Geberit AG, Registered Shares (a)		2,480		549,754
Givaudan SA, Registered Shares (a)		557		588,631
Holcim Ltd., Registered Shares (a)		15,240		1,122,503
Julius Baer Group Ltd. (a)		14,587		519,338
Kuehne & Nagel International AG, Registered Shares		3,569		430,275
Lindt & Spruengli AG (a)		56		182,622
Lindt & Spruengli AG, Registered Shares (a)		6		227,098
Lonza Group AG, Registered Shares (a)		3,610		195,612
Nestle SA, Registered Shares		214,730		14,009,725
Novartis AG, Registered Shares		153,166		9,675,997
Pargesa Holding SA		1,833		126,329
Partners Group Holding AG		1,166		269,555
Roche Holding AG		46,781		9,458,235
Schindler Holding AG, Participation Certificates		3,207		463,911
Schindler Holding AG, Registered Shares		1,408		199,683
SGS SA, Registered Shares		367		815,130
Sika AG		143		330,751
Sonova Holding AG, Registered Shares (a)		3,206		355,424
Sulzer AG		1,637		259,086
The Swatch Group AG, Bearer Shares		2,053		1,041,085
The Swatch Group AG, Registered Shares		2,804		242,560
Swiss Life Holding, Registered Shares (a)		2,072		276,563
Swiss Prime Site AG (a)		3,698		308,689
Swiss Re AG (a)		23,445		1,699,734
Swisscom AG, Registered Shares		1,551		672,069
Syngenta AG, Registered Shares		6,200		2,504,715
Transocean Ltd.		23,922		1,072,511
UBS AG, Registered Shares (a)		242,452		3,794,100
Zurich Insurance Group AG (a)		9,813		2,629,471
				63,556,645
United Kingdom — 21.7%
3i Group Plc		62,540		223,201
Aberdeen Asset Management Plc		57,655		346,934
Admiral Group Plc		13,656		260,127
Aggreko Plc		17,856		509,584
AMEC Plc		20,890		345,332
Anglo American Plc		92,571		2,918,127
Antofagasta Plc		26,454		579,738
ARM Holdings Plc		91,789		1,159,179
Associated British Foods Plc		23,897		610,528
AstraZeneca Plc		83,028		3,934,672
Aviva Plc		194,259		1,202,064
Babcock International Group Plc		24,207		382,108
BAE Systems Plc		216,291		1,202,185
Balfour Beatty Plc		45,076		202,884
Barclays Plc		774,166		3,362,961
BG Group Plc		226,211		3,773,153
BHP Billiton Plc		140,628		4,960,439
Common Stocks	Shares		Value
United Kingdom (continued)
BP Plc		1,267,884	$	8,815,480
British American Tobacco Plc		129,400		6,578,043
British Land Co. Plc		55,373		511,570
British Sky Broadcasting Group Plc		71,959		907,575
BT Group Plc		524,175		1,999,833
Bunzl Plc		21,616		357,782
Burberry Group Plc		29,213		587,224
The Capita Group Plc		43,969		543,320
Capital Shopping Centres Group Plc		36,294		208,801
Carnival Plc		12,294		477,404
Centrica Plc		345,962		1,888,155
Cobham Plc		72,474		263,336
Compass Group Plc		123,909		1,470,893
Croda International Plc		8,808		344,261
Diageo Plc		166,882		4,860,705
Eurasian Natural Resources Corp. Plc		15,477		73,198
Evraz Plc		22,376		96,031
Fresnillo Plc		12,128		371,984
G4S Plc		94,373		395,423
GKN Plc		107,702		406,336
GlaxoSmithKline Plc		331,182		7,210,596
Glencore International Plc		253,463		1,464,212
Hammerson Plc		48,213		386,607
Hargreaves Lansdown Plc		16,256		181,814
HSBC Holdings Plc		1,219,277		12,920,391
ICAP Plc		36,602		185,083
IMI Plc		21,278		385,116
Imperial Tobacco Group Plc		66,025		2,559,891
Inmarsat Plc		30,104		290,173
InterContinental Hotels Group Plc		17,841		500,268
Intertek Group Plc		10,804		548,807
Invensys Plc		52,741		282,246
Investec Plc		37,184		258,861
ITV Plc		243,198		421,891
J Sainsbury Plc		80,871		457,539
Johnson Matthey Plc		13,776		541,164
Kazakhmys Plc		14,031		181,346
Kingfisher Plc		156,502		731,266
Land Securities Group Plc		51,934		692,852
Legal & General Group Plc		393,269		943,007
Lloyds Banking Group Plc (a)		2,809,886		2,239,180
London Stock Exchange Group Plc		11,712		208,920
Marks & Spencer Group Plc		106,980		672,008
Meggitt Plc		51,057		319,706
Melrose Industries Plc		79,012		290,229
National Grid Plc		242,212		2,778,029
Next Plc		11,023		669,123
Old Mutual Plc		325,287		955,379
Pearson Plc		54,336		1,059,093
Petrofac Ltd.		17,115		457,414
Prudential Plc		170,209		2,428,430
Randgold Resources Ltd.		5,806		574,371
Reckitt Benckiser Group Plc		43,332		2,750,697
Reed Elsevier Plc		81,338		858,737
Resolution Ltd.		94,233		383,381
Rexam Plc		58,249		416,783
Rio Tinto Plc		89,254		5,205,795
Rolls-Royce Holdings Plc (a)		124,643		1,787,802
Royal Bank of Scotland Group Plc (a)		141,210		754,758

See Notes to Financial Statements.

24 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master International Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
United Kingdom (continued)
Royal Dutch Shell Plc, Class A		247,420	$	8,587,996
Royal Dutch Shell Plc, Class B		175,162		6,249,133
RSA Insurance Group Plc		234,527		484,338
SABMiller Plc		63,696		2,956,202
The Sage Group Plc		80,883		388,926
Schroders Plc		7,376		204,939
Scottish & Southern Energy Plc		62,890		1,463,079
Segro Plc		48,415		196,518
Serco Group Plc		32,671		286,190
Severn Trent Plc		15,833		407,413
Shire Plc		37,445		1,151,850
Smith & Nephew Plc		59,839		661,454
Smiths Group Plc		25,887		507,064
Standard Chartered Plc		159,299		4,122,617
Standard Life Plc		157,759		862,382
Tate & Lyle Plc		31,359		387,980
Tesco Plc		535,376		2,949,158
Tui Travel Plc		28,239		131,036
Tullow Oil Plc		60,387		1,258,912
Unilever Plc		85,454		3,321,675
United Utilities Group Plc		44,694		492,023
Vedanta Resources Plc		6,701		129,379
Vodafone Group Plc		3,274,276		8,242,217
The Weir Group Plc		14,092		435,768
Whitbread Plc		11,733		471,484
WM Morrison Supermarkets Plc		151,269		649,497
Common Stocks	Shares		Value
United Kingdom (concluded)
Wolseley Plc		17,897	$	855,811
WPP Plc (a)		84,080		1,228,340
Xstrata Plc		139,938		2,442,728
				164,609,644
Total Common Stocks — 96.8%				733,671,709
Rights
Singapore — 0.0%
Olam International Ltd. (a)		34,085		—
Spain — 0.0%
Repsol SA (a)		54,351		33,144
Total Rights — 0.0%				33,144
Total Long-Term Investments (Cost — $586,314,295) — 96.8%				733,704,853
Total Investments (Cost — $586,314,295*) — 96.8%				733,704,853
Other Assets Less Liabilities — 3.2%				24,438,776
Net Assets — 100.0%			$	758,143,629

Notes to Schedule of Investments

* As of December 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	628,318,296
Gross unrealized appreciation	$	167,219,681
Gross unrealized depreciation		(61,833,124	)
Net unrealized appreciation	$	105,386,557

(a) Non-income producing security.

Ÿ Investments in issuers considered to be an affiliate of the Series during the year ended December 31, 2012, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at December 31, 2011		Net Activity		Shares Held at December 31, 2012	Income
BlackRock Liquidity Funds, TempCash, Institutional Class		1,969,251		(1,969,251)	—		$4,682

Ÿ Financial futures contracts as of December 31, 2012 were as follows:

Contracts Purchased	Issue	Exchange	Expiration		Notional Value		Unrealized Appreciation (Depreciation)
71	DJ Euro Stoxx 50 Index	Eurex		March 2013	$	2,450,687	$	(6,714	)
8	E-Mini MSCI EAFE Index	Chicago Mercantile		March 2013	$	648,120		6,235
29	FTSE 100 Index	Euronext LIFFE		March 2013	$	2,754,937		(9,089	)
28	Nikkei 225 Index	Singapore Exchange		March 2013	$	1,676,574		115,977
9	SPI 200 Index	Australian Securities Exchange		March 2013	$	1,078,534		12,693
Total							$	119,102

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 25

Schedule of Investments (continued) Master International Index Series

Ÿ Foreign currency exchange contracts as of December 31, 2012 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation
USD	96,374	EUR	73,000	HSBC Holdings Plc		1/02/13	$	18
USD	491,052	GBP	302,000	HSBC Holdings Plc		1/02/13		468
SEK	50,000	USD	7,689	HSBC Holdings Plc		1/03/13		—
USD	290,021	AUD	279,000	HSBC Holdings Plc		1/03/13		293
USD	22,578	HKD	175,000	HSBC Holdings Plc		1/03/13		—
USD	5,091	ILS	19,000	HSBC Holdings Plc		1/03/13		4
USD	36,347	NOK	202,000	HSBC Holdings Plc		1/03/13		2
USD	4,093	SGD	5,000	HSBC Holdings Plc		1/03/13		—
Total							$	785

Ÿ Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

Ÿ Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Series has the ability to access

Ÿ Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

Ÿ Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Series’ own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Series’ policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in the securities. For information about the Series’ policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

26 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Schedule of Investments (concluded) Master International Index Series

The following tables summarize the Series’ investments and derivative financial instruments categorized in the disclosure hierarchy as of December 31, 2012:

	Level 1			Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Australia		—		$	65,412,513	$	10	$	65,412,523
Austria		—			2,149,921		—		2,149,921
Belgium	$	437,601			8,083,389		—		8,520,990
Denmark		—			8,454,576		—		8,454,576
Finland		—			5,808,326		—		5,808,326
France		2,955,126			66,586,397		—		69,541,523
Germany		—			64,073,319		—		64,073,319
Greece		311,641			111,452		—		423,093
Hong Kong		—			23,250,120		—		23,250,120
Ireland		6,109			3,295,521		1		3,301,631
Israel		—			3,966,199		—		3,966,199
Italy		—			16,557,906		—		16,557,906
Japan		628,286			146,157,618		—		146,785,904
Netherlands		513,045			18,899,167		—		19,412,212
New Zealand		—			926,737		—		926,737
Norway		—			6,760,061		—		6,760,061
Portugal		280,494			1,039,170		—		1,319,664
Singapore		—			13,644,668		—		13,644,668
Spain		181,710			21,915,947		—		22,097,657
Sweden		377,914			22,720,476		—		23,098,390
Switzerland		664,113			62,892,532		—		63,556,645
United Kingdom		—			164,609,644		—		164,609,644
Rights		33,144			—		—		33,144
Total	$	6,389,183		$	727,315,659	$	11	$	733,704,853
	Level 1			Level 2		Level 3		Total
Derivative Financial Instruments1
Assets:
Equity contracts	$	134,905			—		—	$	134,905
Foreign currency exchange contracts		—		$	785		—		785
Liabilities:
Equity contracts		(15,803	)		—		—		(15,803	)
Total	$	119,102		$	785		—	$	119,887

¹ Derivative financial instruments are financial futures contracts and foreign currency exchange contracts. Financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Series’ assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of December 31, 2012, such assets and liabilities are categorized within the disclosure hierarchy as follows:

	Level 1		Level 2			Level 3		Total
Assets:
Cash pledged as collateral for financial futures contracts	$	504,000		—			—	$	504,000
Foreign currency at value		7,681,374		—			—		7,681,374
Liabilities:
Bank overdraft		—	$	(258,219	)		—		(258,219	)
Total	$	8,185,374	$	(258,219	)		—	$	7,927,155

There were no transfers between levels during the year ended December 31, 2012.

Certain of the Series’ investments are categorized as Level 3 and were valued utilizing transaction prices or third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in the unobservable inputs could result in a significantly lower or higher value in such Level 3 investments.

See Notes to Financial Statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 27

Statement of Assets and Liabilities Master International Index Series

December 31, 2012
Assets
Investments at value — (cost — $586,314,295)	$	733,704,853
Cash pledged as collateral for financial futures contracts		504,000
Contributions receivable from investors		13,072,800
Foreign currency at value (cost — $7,716,155)		7,681,374
Dividends receivable		3,674,849
Investments sold receivable		13,662
Unrealized appreciation on foreign currency exchange contracts		785
Prepaid expenses		4,723
Total assets		758,657,046
Liabilities
Bank overdraft		258,219
Variation margin payable		54,492
Investment advisory fees payable		5,936
Other affiliates payable		4,545
Directors’ fees payable		1,418
Other accrued expenses payable		188,807
Total liabilities		513,417
Net Assets	$	758,143,629
Net Assets Consist of
Investors’ capital	$	610,445,186
Net unrealized appreciation/depreciation		147,698,443
Net Assets	$	758,143,629

See Notes to Financial Statements.
28	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2012

Statement of Operations Master International Index Series

Year Ended December 31, 2012
Investment Income
Dividends — unaffiliated	$	25,030,521
Foreign taxes withheld		(1,630,575	)
Dividends — affiliated		4,682
Total income		23,404,628
Expenses
Investment advisory		68,180
Accounting services		121,777
Custodian		104,462
Professional		84,325
Directors		21,397
Printing		13,476
Miscellaneous		28,518
Total expenses		442,135
Less fees waived and/or reimbursed by Manager		(9,147	)
Total expenses after fees waived and/or reimbursed		432,988
Net investment income		22,971,640
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		(62,826,904	)
Financial futures contracts		1,868,337
Foreign currency transactions		(346,091	)
		(61,304,658	)
Net change in unrealized appreciation/depreciation on:
Investments		182,459,563
Financial futures contracts		62,492
Foreign currency translations		51,260
		182,573,315
Total realized and unrealized gain		121,268,657
Net Increase in Net Assets Resulting from Operations	$	144,240,297

See Notes to Financial Statements.
	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2012	29

Statements of Changes in Net Assets Master International Index Series

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2012			2011
Operations
Net investment income	$	22,971,640		$	31,591,898
Net realized loss		(61,304,658	)		(26,277,530	)
Net change in unrealized appreciation/depreciation		182,573,315			(123,722,751	)
Net increase (decrease) in net assets resulting from operations		144,240,297			(118,408,383	)
Capital Transactions
Proceeds from contributions		279,030,661			277,608,631
Value of withdrawals		(520,908,247	)		(226,119,685	)
Net increase (decrease) in net assets derived from capital transactions		(241,877,586	)		51,488,946
Net Assets
Total decrease in net assets		(97,637,289	)		(66,919,437	)
Beginning of year		855,780,918			922,700,355
End of year	$	758,143,629		$	855,780,918

Financial Highlights Master International Index Series

	Year Ended December 31,
	2012		2011			2010		2009		2008
Total Investment Return
Total investment return		19.01%		(12.34	)%		7.66%		28.99%		(41.94	)%
Ratios to Average Net Assets
Total expenses		0.06%		0.08%			0.11%		0.09%		0.11%
Total expenses after fees waived and/or reimbursed		0.06%		0.08%			0.10%		0.09%		0.10%
Net investment income		3.36%		3.38%			2.73%		2.98%		3.54%
Supplemental Data
Net assets, end of year (000)	$	758,144	$	855,781		$	922,700	$	749,280	$	706,119
Portfolio turnover		21%		6%			8%		30%		30%

See Notes to Financial Statements.
30	BLACKROCK INTERNATIONAL INDEX FUND	DECEMBER 31, 2012

Notes to Financial Statements Master International Index Series

1. Organization and Significant Accounting Policies:

Master International Index Series (the “Series”), a non-diversified open-end management investment company, is a series of Quantitative Master Series LLC (the “Master LLC”). The Master LLC is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and is organized as a Delaware limited liability company. The Master LLC’s Limited Liability Company Agreement permits the Board of Directors of the Master LLC (the “Board”) to issue non-transferable interests in the Master LLC, subject to certain limitations. The Series’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

The following is a summary of significant accounting policies followed by the Series:

Valuation: US GAAP defines fair value as the price the Series would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Series determines the fair values of its financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Series for all financial instruments.

Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System (“NASDAQ”) are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid price. If no bid price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

Securities and other assets and liabilities denominated in foreign currencies are translated into US dollars using exchange rates determined as of the close of business on the New York Stock Exchange (“NYSE”). Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of business on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

In the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that the Series might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deem relevant consistent with the principles of fair value measurement which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Series’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of the Series’ net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to affect the value of such instruments materially, those instruments may be Fair Value Assets and valued at their fair value, as determined in good faith

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 31

Notes to Financial Statements (continued) Master International Index Series

by the Global Valuation Committee using a pricing service and/or policies approved by the Board. Each business day, the Series uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and over-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of business on the NYSE, which follows the close of the local markets.

Foreign Currency: The Series’ books and records are maintained in US dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the US dollar rises in value against a foreign currency, the Series’ investments denominated in that currency will lose value because that currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.

The Series does not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments but are included as a component of net realized and unrealized gain (loss) from investments. The Series reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Series either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts and foreign currency exchange contracts), the Series will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, a Series engaging in such transactions may have requirements to deliver/deposit securities to/with an exchange or broker-dealer as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Series is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Income Taxes: The Series is classified as a partnership for federal income tax purposes. As such, each investor in the Series is treated as the owner of its proportionate share of net assets, income, expenses and realized and unrealized gains and losses of the Series. Therefore, no federal income tax provision is required. It is intended that the Series’ assets will be managed so an investor in the Series can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

The Series files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Series’ US federal tax returns remains open for each of the four years ended December 31, 2012. The statutes of limitations on the Series’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In December 2011, the Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or similar agreements, which are eligible for offset in the Statement of Assets and Liabilities and will require an entity to disclose both gross and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

Other: Expenses directly related to the Series are charged to the Series. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Series has an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

32 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Notes to Financial Statements (continued) Master International Index Series

2. Derivative Financial Instruments:

The Series engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Series and/or to economically hedge, or protect, its exposure to certain risks such as equity risk or foreign currency exchange rate risk. These contracts may be transacted on an exchange or OTC.

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. The Series’ maximum risk of loss from counterparty credit risk on OTC derivatives is generally the aggregate unrealized gain netted against any collateral pledged by/posted to the counterparty. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

The Series may mitigate counterparty risk by procuring collateral and through netting provisions included within an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) implemented between the Series and each of its respective counterparties. An ISDA Master Agreement allows the Series to offset with each separate counterparty certain derivative financial instrument’s payables and/or receivables with collateral held. The amount of collateral moved to/from applicable counterparties is generally based upon minimum transfer amounts of up to $500,000. To the extent amounts due to the Series from its counterparties are not fully collateralized, contractually or otherwise, the Series bears the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. In addition, the Series manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Series’ net assets decline by a stated percentage or the Series fails to meet the terms of its ISDA Master Agreements, which would cause the Series to accelerate payment of any net liability owed to the counterparty.

Financial Futures Contracts: The Series purchases or sells financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk). Financial futures contracts are agreements between the Series and counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Series agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Series as unrealized appreciation or depreciation. When the contract is closed, the Series records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest or foreign currency exchange rates and the underlying assets.

Foreign Currency Exchange Contracts: The Series enters into foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to foreign currencies (foreign currency exchange rate risk). A foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. Foreign currency exchange contracts, when used by the Series, help to manage the overall exposure to the currencies in which some of the investments held by the Series are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Series as an unrealized gain or loss. When the contract is closed, the Series records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The use of foreign currency exchange contracts involves the risk that the value of a foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies and the risk that the counterparty to the contract does not perform its obligations under the agreement.

Derivative Financial Instruments Categorized by Risk Exposure:
Fair Values of Derivative Financial Instruments as of December 31, 2012
	Asset Derivatives
	Statement of Assets and Liabilities Location	Value
Equity contracts	Net unrealized appreciation1	$	134,905
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts		785
Total		$	135,690
	Liability Derivatives
	Statement of Assets and Liabilities Location	Value
Equity contracts	Net unrealized depreciation1	$	(15,803	)

¹  Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 33

Notes to Financial Statements (continued) Master International Index Series

The Effect of Derivative Financial Instruments in the Statement of Operations Year Ended December 31, 2012
	Net Realized Gain (Loss) From
Equity contracts:
Financial futures contracts	$	1,868,337
Foreign currency exchange contracts:
Foreign currency transactions		(1,711,983)
Total	$	156,354
	Net Change in Unrealized Appreciation/ Depreciation on
Equity contracts:
Financial futures contracts	$	62,492
Foreign currency exchange contracts:
Foreign currency translations		(32,584)
Total	$	29,908

For the year ended December 31, 2012, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average number of contracts purchased		167
Average number of contracts sold		18
Average notional value of contracts purchased	$	8,814,626
Average notional value of contracts sold	$	562,254
Foreign currency exchange contracts:
Average number of contracts – US dollars purchased		5
Average number of contracts – US dollars sold		2
Average US dollar amounts purchased	$	1,827,447
Average US dollar amounts sold	$	240,358

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).

The Master LLC, on behalf of the Series, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Series’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of the Series’ portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Series. For such services, the Series pays the Manager a monthly fee at an annual rate of 0.01% of the Series’ average daily net assets.

The Manager contractually agreed to waive and/or reimburse fees or expenses, excluding interest expense, dividend expense, acquired fund fees and expenses and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Series’ business, in order to limit expenses. The expense limitation as a percentage of average daily net assets is 0.12%. The Manager has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to May 1, 2013 unless approved by the Board, including a majority of the Independent Directors. For the year ended December 31, 2012, the Series waived $8,275, which is included in fees waived and/or reimbursed by Manager in the Statement of Operations.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Series pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Series’ investment in other affiliated investment companies, if any. This amount is included in fees waived by Manager in the Statement of Operations. For the year ended December 31, 2012, the amount waived was $872.

The Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by the Series to the Manager.

For the year ended December 31, 2012, the Series reimbursed the Manager $9,957 for certain accounting services, which is included in accounting services in the Statement of Operations.

Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock or its affiliates.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the year ended December 31, 2012, were $141,674,787 and $369,185,448, respectively.

5. Borrowings:

The Master LLC, on behalf of the Series, along with certain other funds managed by the Manager and its affiliates, is a party to a $500 million credit agreement with a group of lenders. The Series may borrow under the credit agreement to fund shareholder redemptions. Effective November 2011 to November 2012, the credit agreement had the following terms: a commitment fee of 0.065% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month London Interbank Offered Rate (“LIBOR”) plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2011. The

34 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Notes to Financial Statements (concluded) Master International Index Series

credit agreement, which expired in November 2012, was renewed with the same terms until November 2013. Effective November 2012 to November 2013, the credit agreement has the following terms: a commitment fee of 0.065% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2012. The Series did not borrow under the credit agreement during the year ended December 31, 2012.

6. Concentration, Market and Credit Risk:

In the normal course of business, the Series invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Series may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Series; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Series may be exposed to counterparty credit risk, or the risk that an entity with which the Series has unsettled or open transactions may fail to or be unable to perform on its commitments. The Series manages counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Series to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Series’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Series.

The Series invests a substantial amount of its assets in issuers located in a single country or a limited number of countries. When the Series concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in those countries may have a significant impact on its investment performance. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the US. Foreign securities markets may also be less liquid, more volatile, and less subject to governmental supervision not typically associated with investing in US securities. Please see the Schedule of Investments for concentrations in specific countries.

The Series invests a significant portion of its assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of several European countries, including Greece, Ireland, Italy, Portugal and Spain. As of December 31, 2012, these events have adversely affected the exchange rate of the euro and may continue to spread to other countries in Europe, including countries that do not use the euro. These events may affect the value and liquidity of certain of the Series’ investments.

As of December 31, 2012, the Series had the following industry classifications:

Industry	Percent of Long-Term Investments
Commercial Banks		13	%
Pharmaceuticals		8	%
Oil, Gas & Consumable Fuels		7	%
Metals and Mining		5	%
Insurance		5	%
Other1		62	%

¹  All other industries held were less than 5% of long-term investments.

7. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Series through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 35

Report of Independent Registered Public Accounting Firm Master International Index Series

To the Investors of Master International Index Series and Board of Directors of Quantitative Master Series LLC:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Master International Index Series, one of the series constituting Quantitative Master Series LLC, (the “Series”) as of December 31, 2012, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Series’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Series is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Series’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2012, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Master International Index Series, of Quantitative Master Series LLC, as of December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 15, 2013

36 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Officers and Directors

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1
Ronald W. Forbes 55 East 52nd Street New York, NY 10055 1940	Co-Chairman of the Board and Director	Since 2007	Professor Emeritus of Finance, School of Business, State University of New York at Albany since 2000.	33 RICs consisting of 106 Portfolios	None
Rodney D. Johnson 55 East 52nd Street New York, NY 10055 1941	Co-Chairman of the Board and Director	Since 2007	President, Fairmount Capital Advisors, Inc. since 1987; Member of the Archdiocesan Investment Committee of the Archdiocese of Philadelphia since 2004; Director, The Committee of Seventy (civic) since 2006; Director, Fox Chase Cancer Center from 2004 to 2011.	33 RICs consisting of 106 Portfolios	None
David O. Beim 55 East 52nd Street New York, NY 10055 1940	Director	Since 2007	Professor of Professional Practice at the Columbia University Graduate School of Business since 1991; Trustee, Phillips Exeter Academy since 2002; Chairman, Wave Hill, Inc. (public garden and cultural center) from 1990 to 2006.	33 RICs consisting of 106 Portfolios	None
Dr. Matina S. Horner 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Executive Vice President of Teachers Insurance and Annuity Association and College Retirement Equities Fund from 1989 to 2003.	33 RICs consisting of 106 Portfolios	NSTAR (electric and gas utility)
Herbert I. London 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Professor Emeritus, New York University since 2005; John M. Olin Professor of Humanities, New York University from 1993 to 2005 and Professor thereof from 1980 to 2005; President Emeritus, Hudson Institute (policy research organization) since 2011, President thereof from 1997 to 2011 and Trustee since 1980; Chairman of the Board of Trustees for Grantham University since 2006; Director, InnoCentive, Inc. (strategic solutions company) since 2005; Director, Cerego, LLC (software development and design) since 2005; Director, Cybersettle (dispute resolution technology) since 2009.	33 RICs consisting of 106 Portfolios	AIMS Worldwide, Inc. (marketing)
Ian A. MacKinnon 55 East 52nd Street New York, NY 10055 1948	Director	Since 2012	Director, Kennett Capital, Inc. (investments) since 2006; Director, Free Library of Philadelphia from 1999 to 2008.	33 RICs consisting of 106 Portfolios	None
Cynthia A. Montgomery 55 East 52nd Street New York, NY 10055 1952	Director	Since 2007	Professor, Harvard Business School since 1989; Director, McLean Hospital since 2005; Director, Harvard Business School Publishing from 2005 to 2010.	33 RICs consisting of 106 Portfolios	Newell Rubbermaid, Inc. (manufacturing)
Joseph P. Platt 55 East 52nd Street New York, NY 10055 1947	Director	Since 2007	Director, The West Penn Allegheny Health System (a not-for-profit health system) since 2008; Director, Jones and Brown (Canadian insurance broker) since 1998; General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Partner, Amarna Corporation, LLC (private investment company) from 2002 to 2008.	33 RICs consisting of 106 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company)
Robert C. Robb, Jr. 55 East 52nd Street New York, NY 10055 1945	Director	Since 2007	Partner, Lewis, Eckert, Robb and Company (management and financial consulting firm) since 1981.	33 RICs consisting of 106 Portfolios	None

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 37

Officers and Directors (continued)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1 (concluded)
Toby Rosenblatt 55 East 52nd Street New York, NY 10055 1938	Director	Since 2007	President, Founders Investments Ltd. (private investments) since 1999; Director, Forward Management, LLC since 2007; Director, College Access Foundation of California (philanthropic foundation) since 2009; Director, A.P. Pharma, Inc. (specialty pharmaceuticals) from 1983 to 2011; Director, The James Irvine Foundation (philanthropic foundation) from 1998 to 2008.	33 RICs consisting of 106 Portfolios	None
Kennath L. Urish 55 East 52nd Street New York, NY 10055 1941	Director	Since 2007	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Chairman Elect of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.	33 RICs consisting of 106 Portfolios	None
Frederick W. Winter 55 East 52nd Street New York, NY 10055 1945	Director	Since 2007	Professor and Dean Emeritus of the Joseph M. Katz School of Business, University of Pittsburgh since 2005 and Dean thereof from 1997 to 2005; Director, Alkon Corporation (pneumatics) since 1992; Director, Tippman Sports (recreation) since 2005; Director, Indotronix International (IT services) from 2004 to 2008.	33 RICs consisting of 106 Portfolios	None
	1   Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The Board has approved one-year extensions in terms of Directors who turn 72 prior to December 31, 2013.
	2   Date shown is the earliest date a person has served for the Corporation/Master LLC covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows certain Directors as joining the Corporation’s/Master LLC’s board in 2007, each Director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: David O. Beim, 1998; Ronald W. Forbes, 1977; Dr. Matina S.Horner, 2004; Rodney D. Johnson, 1995; Herbert I. London, 1987; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Robert C. Robb, Jr., 1998; Toby Rosenblatt, 2005; Kenneth L. Urish, 1999; and Frederick W. Winter, 1999.
Interested Directors3
Paul L. Audet 55 East 52nd Street New York, NY 10055 1953	Director	Since 2011	Senior Managing Director of BlackRock and Head of U.S. Mutual Funds since 2011; Chair of the U.S. Mutual Funds Committee reporting to the Global Executive Committee since 2011; Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005.	155 RICs consisting of 278 Portfolios	None
Henry Gabbay 55 East 52nd Street New York, NY 10055 1947	Director	Since 2007	Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	155 RICs consisting of 278 Portfolios	None
	3   Mr.Audet is an “interested person,” as defined in the 1940 Act, of the Corporation/Master LLC based on his position with BlackRock and its affiliates. Mr. Gabbay is an “interested person” of the Corporation/Master LLC based on his former positions with BlackRock and its affiliates as well as his owner-ship of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of the BlackRock registered closed-end funds and Directors of other BlackRock registered open-end funds. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

38 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Officers and Directors (concluded) BlackRock International Index Fund

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served	Principal Occupation(s) During Past Five Years
Officers1
John M. Perlowski 55 East 52nd Street New York, NY 10055 1964	President and Chief Executive Officer	Since 2010	Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Administration since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.
Brendan Kyne 55 East 52nd Street New York, NY 10055 1977	Vice President	Since 2009	Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009; Vice President of BlackRock from 2005 to 2008.
Neal Andrews 55 East 52nd Street New York, NY 10055 1966	Chief Financial Officer	Since 2007	Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
Jay Fife 55 East 52nd Street New York, NY 10055 1970	Treasurer	Since 2007	Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
Brian Kindelan 55 East 52nd Street New York, NY 10055 1959	Chief Compliance Officer and Anti-Money Laundering Officer	Since 2007	Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005.
Benjamin Archibald 55 East 52nd Street New York, NY 10055 1975	Secretary	Since 2012	Director of BlackRock since 2010; Assistant Secretary to the funds from 2010 to 2012; General Counsel and Chief Operating Officer of Uhuru Capital Management from 2009 to 2010; Executive Director and Counsel of Goldman Sachs Asset Management from 2005 to 2009.
	1  Officers of the Corporation/Master LLC serve at the pleasure of the Board.
	Further information about the Officers and Directors is available in the Corporation’s/Master LLC’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Investment Advisor BlackRock Advisors, LLC Wilmington, DE 19809	Custodian JPMorgan Chase Bank, N.A. Brooklyn, NY 11245	Distributor BlackRock Investments, LLC New York, NY 10022	Accounting Agent State Street Bank and Trust Company Boston, MA 02110	Address of the Fund 100 Bellevue Parkway Wilmington, DE 19809
Sub-Advisor BlackRock Investment Management, LLC Princeton, NJ 08540	Transfer Agent BNY Mellon Investment Servicing (US) Inc. Wilmington, DE 19809	Legal Counsel Sidley Austin LLP New York, NY 10019	Independent Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 39

Additional Information

General Information

Electronic Delivery

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1) Access the BlackRock website at

http://www.blackrock.com/edelivery

2) Select “eDelivery” under the “More Information” section

3) Log into your account

Householding

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Fund/Series file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s/Series’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330.The Fund’s/Series’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund/Series use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Fund/Series voted proxies relating to securities held in the Fund’s/Series’ portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

40 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

Additional Information (concluded)

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012 41

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds

BlackRock ACWI ex-US Index Fund

BlackRock All-Cap Energy & Resources Portfolio

BlackRock Basic Value Fund

BlackRock Capital Appreciation Fund

BlackRock China Fund

BlackRock Commodity Strategies Fund

BlackRock Emerging Markets Fund

BlackRock Emerging Markets Long/Short Equity Fund

BlackRock Energy & Resources Portfolio

BlackRock Equity Dividend Fund

BlackRock EuroFund

BlackRock Flexible Equity Fund

BlackRock Focus Growth Fund

BlackRock Global Dividend Income Portfolio

BlackRock Global Long/Short Equity Fund

BlackRock Global Opportunities Portfolio

BlackRock Global SmallCap Fund

BlackRock Health Sciences Opportunities Portfolio

BlackRock Index Equity Portfolio

BlackRock India Fund

BlackRock International Fund

BlackRock International Index Fund

BlackRock International Opportunities Portfolio

BlackRock Large Cap Core Fund

BlackRock Large Cap Core Plus Fund

BlackRock Large Cap Growth Fund

BlackRock Large Cap Value Fund

BlackRock Latin America Fund

BlackRock Long-Horizon Equity Fund

BlackRock Mid-Cap Growth Equity Portfolio

BlackRock Mid Cap Value Opportunities Fund

BlackRock Natural Resources Trust

BlackRock Pacific Fund

BlackRock Real Estate Securities Fund

BlackRock Russell 1000 Index Fund

BlackRock Science & Technology Opportunities Portfolio

BlackRock Small Cap Growth Equity Portfolio

BlackRock Small Cap Growth Fund II

BlackRock Small Cap Index Fund

BlackRock S&P 500 Index Fund

BlackRock S&P 500 Stock Fund

BlackRock U.S. Opportunities Portfolio

BlackRock Value Opportunities Fund

BlackRock World Gold Fund

Taxable Fixed Income Funds

BlackRock Bond Index Fund

BlackRock Core Bond Portfolio

BlackRock CoreAlpha Bond Fund

BlackRock Emerging Market Local Debt Portfolio

BlackRock Floating Rate Income Portfolio

BlackRock Global Long/Short Credit Fund

BlackRock GNMA Portfolio

BlackRock High Yield Bond Portfolio

BlackRock Inflation Protected Bond Portfolio

BlackRock International Bond Portfolio

BlackRock Long Duration Bond Portfolio

BlackRock Low Duration Bond Portfolio

BlackRock Secured Credit Portfolio

BlackRock Strategic Income Opportunities Portfolio

BlackRock Total Return Fund

BlackRock U.S. Government Bond Portfolio

BlackRock U.S. Mortgage Portfolio

BlackRock World Income Fund

Municipal Fixed Income Funds

BlackRock California Municipal Bond Fund

BlackRock High Yield Municipal Fund

BlackRock Intermediate Municipal Fund

BlackRock National Municipal Fund

BlackRock New Jersey Municipal Bond Fund

BlackRock New York Municipal Bond Fund

BlackRock Pennsylvania Municipal Bond Fund

BlackRock Short-Term Municipal Fund

Mixed Asset Funds

BlackRock Balanced Capital Fund	LifePath Active Portfolios			LifePath Index Portfolios
BlackRock Global Allocation Fund		2015	2035		Retirement	2040
BlackRock Managed Volatility Portfolio		2020	2040		2020	2045
BlackRock Multi-Asset Income Portfolio		2025	2045		2025	2050
BlackRock Multi-Asset Real Return Fund		2030	2050		2030	2055
BlackRock Strategic Risk Allocation Fund					2035
BlackRock Prepared Portfolios	LifePath Portfolios
Conservative Prepared Portfolio		Retirement	2040
Moderate Prepared Portfolio		2020	2045
Growth Prepared Portfolio		2025	2050
Aggressive Growth Prepared Portfolio		2030	2055
		2035

BlackRock mutual funds are currently distributed by BlackRock Investments, LLC. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing.

42 BLACKROCK INTERNATIONAL INDEX FUND DECEMBER 31, 2012

This report is transmitted to shareholders only. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change. Please see the Fund’s prospectus for a description of risks associated with global investments.

#IntlIndex-12/12-AR

DECEMBER 31, 2012

  ANNUAL REPORT  

BlackRock S&P 500 Index Fund  |  of BlackRock Index Funds, Inc.

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

	Page
Dear Shareholder		3
Annual Report:
Fund Summary		4
About Fund Performance		6
Disclosure of Expenses		6
Derivative Financial Instruments		6
Fund Financial Statements:
Statement of Assets and Liabilities		7
Statement of Operations		8
Statements of Changes in Net Assets		9
Fund Financial Highlights		10
Fund Notes to Financial Statements		11
Fund Report of Independent Registered Public Accounting Firm		14
Important Tax Information		14
Series Portfolio Information		15
Series Financial Statements:
Schedule of Investments		16
Statement of Assets and Liabilities		24
Statement of Operations		25
Statements of Changes in Net Assets		26
Series Financial Highlights		27
Series Notes to Financial Statements		28
Series Report of Independent Registered Public Accounting Firm		32
Officers and Directors		33
Additional Information		36
A World-Class Mutual Fund Family		38

2 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Dear Shareholder

Financial markets substantially improved in 2012 as compared to the prior year, due largely to central bank intervention and considerable relief from the global turmoil seen in 2011. Although 2012 brought its share of headwinds, the strongest returns came from higher-risk asset classes as investors reached for yield in an environment of extremely low interest rates.

The year opened with investor confidence on the rise as global liquidity had been restored and financial news headlines became less daunting. Equity markets moved higher through the first two months of 2012, while climbing US Treasury yields pressured higher-quality fixed income assets. However, markets reversed course in the spring when Europe’s debt crisis boiled over once again. Political instability in Greece and severe deficit and liquidity problems in Spain raised the prospect of a euro collapse. Government borrowing costs in peripheral European countries soared while the region’s finance leaders deliberated over the fiscal integration of the currency bloc. Alongside the drama in Europe, investors were discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, emerged as a particular concern. In the United States, disappointing jobs reports signaled that the recovery was losing steam. Risk assets sold off as investors retreated to safe-haven assets.

As the outlook for the global economy worsened, investors grew increasingly optimistic that the world’s largest central banks soon would intervene to stimulate growth. This theme, along with increased cooperation among finance ministers in Europe, fueled a powerful risk-asset rebound in June. In July, the European Central Bank (“ECB”) president stated that the bank would do “whatever it takes” to preserve the euro currency bloc. This assurance along with expectations for policy stimulus from central banks in Europe and the United States drove most asset classes higher through the summer. Early in September, the ECB announced its decision to support the eurozone’s troubled peripheral countries with unlimited purchases of short term sovereign debt. Days later, the US Federal Reserve announced an aggressive stimulus package involving open-ended monthly purchases of agency mortgage-backed securities.

Going into the fall, US stocks slid on lackluster corporate earnings reports and market volatility rose leading up to the US Presidential election. Global trade slowed as many European countries fell into recession and growth continued to decelerate in China, where a once-a-decade leadership change compounded uncertainty. In the United States, automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013 (known as the “fiscal cliff”) threatened to push the nation into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that bipartisan gridlock would preclude a budget deal prior to the deadline drove high levels of volatility in financial markets around the world in the months leading up to the last day of the year. Ultimately, the United States averted the worst of the fiscal cliff with a last-minute tax deal. Relief from US fiscal worries, however, was only partial as decisions relating to spending cuts and the debt ceiling remained pending as financial markets closed for the year.

All major asset classes generated positive returns for the 6- and 12-month periods ended December 31, 2012. Riskier assets outperformed higher quality investments as investors sought meaningful returns in a low interest rate environment. International and emerging market equities were the strongest performers. US Treasury yields were volatile, but declined overall, resulting in moderate gains for higher quality fixed income sectors. Tax-exempt municipal bonds benefited from a favorable supply-and-demand environment. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.

The New Year brings a host of unknowns, but we believe new opportunities abound. BlackRock was built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. With access to every asset class, geography and investment style, and extensive market intelligence, we help investors of all sizes build dynamic, diverse portfolios to achieve better, more consistent returns over time. We encourage you to visit www.blackrock.com/newworld for more information.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

“Although 2012 brought its share of headwinds, the strongest returns came from higher-risk asset classes as investors reached for yield in an environment of extremely low interest rates.”

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of December 31, 2012
	6-month			12-month
US large cap equities (S&P 500® Index)		5.95	%		16.00	%
US small cap equities (Russell 2000® Index)		7.20			16.35
International equities (MSCI Europe, Australasia, Far East Index)		13.95			17.32
Emerging market equities (MSCI Emerging Markets Index)		13.75			18.22
3-month Treasury bill (BofA Merrill Lynch 3-Month US Treasury Bill Index)		0.07			0.11
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)		0.71			4.18
US investment grade bonds (Barclays US Aggregate Bond Index)		1.80			4.21
Tax-exempt municipal bonds (S&P Municipal Bond Index)		3.15			7.42
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index)		7.97			15.78
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of December 31, 2012 BlackRock S&P 500 Index Fund

Investment Objective

BlackRock S&P 500 Index Fund’s (the “Fund”), a series of BlackRock Index Funds, Inc. (the “Corporation”), investment objective is to match the performance of the Standard & Poor’s (“S&P”) 500^® Index as closely as possible before the deduction of Fund expenses.

Portfolio Management Commentary

Ÿ On May 16, 2012, the Board of Directors of the Corporation approved a plan of reorganization whereby BlackRock S&P 500 Stock Fund, a series of BlackRock Funds III (the “Acquiring Fund”) will acquire substantially all of the assets and assume certain stated liabilities of the Fund in exchange for newly issued shares of the Acquiring Fund (the “Reorganization”). The Reorganization is subject to shareholder approval by the Fund’s shareholders and certain other conditions. The Reorganization is contingent on the completion of the reorganization of Master S&P 500 Index Series (the “Series”), a series of Quantitative Master Series LLC, with the S&P 500 Stock Master Portfolio, a series of Master Investment Portfolio. If the Reorganization is approved by shareholders, each reorganization is expected to contemporaneously close in 2013.

How did the Fund perform?

Ÿ For the 12 months ended December 31, 2012, the Fund’s Institutional and Investor A Shares returned 15.65% and 15.31%, respectively, while the benchmark S&P 500^® Index returned 16.00%. The S&P 500^® Index is an unmanaged index that covers 500 industrial, utility, transportation and financial companies of the US markets (mostly New York Stock Exchange (“NYSE”) issues), representing 75% of NYSE market capitalization and 30% of NYSE issues.

Ÿ Returns for the Fund’s respective share classes differ from the benchmark index based on individual share-class expenses. The Fund invests all of its assets in the Series.

Describe the market environment.

Ÿ Following a tumultuous 2011, equity markets began the new year with a strong rally amid lower volatility. The debt situation in Europe had stabilized and global liquidity conditions improved as the ECB implemented its long-term refinancing operations. Positive economic indicators out of the United States brightened the outlook for the world economy and equities moved boldly higher through the first two months of 2012.

Ÿ A flare-up in the European debt crisis halted the rally in the spring. Political instability in Greece caused anxiety about whether the country would continue its membership in the eurozone. Spain faced severe deficit and policymaking issues and a liquidity crisis in the nation’s banks. Alongside the drama in Europe, investors became discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, was of particular concern. Many European countries fell into recession. In the United States, disappointing jobs reports signaled that the recovery was losing steam. US equities gave back half of their year-to-date gains by the end of May.

Ÿ As the global economic picture dimmed, investors grew increasingly optimistic that the world’s central banks would intervene to stimulate growth. Meanwhile, European leaders took meaningful steps toward fiscal integration in the euro currency bloc. These positive themes drove a powerful equity rebound in June. In July, ECB president Mario Draghi boosted investor confidence by stating that the ECB was committed to do “whatever it takes” to hold the eurozone together. This assurance, along with growing hopes for additional central bank stimulus, overshadowed concerns about the dreary economic landscape and US stocks continued their advance through the third quarter. In September, the ECB announced its decision to backstop eurozone governments with unlimited purchases of short-term sovereign debt. Days later, the US Federal Reserve announced an aggressive stimulus program involving purchases of agency mortgage-backed securities.

Ÿ Concerns about the world economy resurfaced in the fall amid political uncertainty in key nations. Global trade slowed as Europe’s recession deepened, US growth remained lackluster and growth continued to decelerate in China, where a once-in-a-decade leadership change compounded uncertainty. In the United States, automatic tax increases and spending cuts set to take effect at the beginning of 2013, known as the “fiscal cliff,” threatened to push the nation into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that political gridlock would preclude a budget deal prior to the deadline drove high levels of volatility in equity markets around the world in the months leading up to the last day of the year. Ultimately, the United States averted the fiscal cliff with a last-minute tax deal, spurring relief rallies in stock markets globally. However, relief from US fiscal worries was only partial as decisions relating to spending cuts and the national debt ceiling remained pending as financial markets closed for the year. Despite a downtrodden economic environment and a suspenseful lead-up to the US fiscal cliff deadline, US stock prices moved higher through the final months of 2012 as investors took on more risk to achieve meaningful returns in the low interest rate environment.

Describe recent portfolio activity.

Ÿ During the period, as changes were made to the composition of the S&P 500^® Index, the Series purchased and sold securities to maintain its objective of replicating the risks and return of the benchmark index.

Describe portfolio positioning at period end.

Ÿ The Series remains positioned to match the risk characteristics of its benchmark index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

4 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Total Return Based on a $10,000 Investment

¹  Assuming transaction costs and other operating expenses, including investment advisory fees and administration fees, if any.

²  The Fund invests all of its assets in the Series. The Series’ investments are allocated among common stocks in approximately the same weightings as the S&P 500^® Index.

³  This unmanaged index covers 500 industrial, utility, transportation and financial companies of the US markets (mostly NYSE), representing about 75% of NYSE market capitalization and 30% of NYSE issues.

Performance Summary for the Period Ended December 31, 2012

				Average Annual Total Returns4
	6-Month Total Returns			1 Year			5 Years			10 Years
Institutional		5.80	%		15.65	%		1.37	%		6.81	%
Investor A		5.61			15.31			1.12			6.53
S&P 500® Index		5.95			16.00			1.66			7.10

⁴  Average annual total returns reflect reductions for service fees. See “About Fund Performance” on page 6 for a detailed description of share classes, including any related fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical6
	Beginning Account Value July 1, 2012		Ending Account Value December 31,  2012		Expenses Paid During the Period5		Beginning Account Value July 1, 2012		Ending Account Value December 31,  2012		Expenses Paid During the Period5		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,058.00	$	1.81	$	1,000.00	$	1,023.38	$	1.78		0.35	%
Investor A	$	1,000.00	$	1,056.10	$	3.10	$	1,000.00	$	1,022.12	$	3.05		0.60	%

⁵  For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Because the Fund invests significantly in the Series, the expense example reflects the net expenses of both the Fund and the Series in which it invests.

⁶  Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 6 for further information on how expenses were calculated.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 5

About Fund Performance

_Ÿ Institutional Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to eligible investors.

_Ÿ Investor A Shares are not subject to any sales charge and bear no ongoing distribution fee. These shares are subject to an ongoing service fee of 0.25% per year.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in the performance table on the previous page assume reinvestment of all dividends and capital gain distributions, if any, at net asset value (“NAV”) on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of service and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Fund’s administrator waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) expenses related to transactions, including exchange fees; and (b) operating expenses, including administration fees, service fees, including 12b-1 fees, and other Fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on July 1, 2012 and held through December 31, 2012) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as sales charges or exchange fees, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Series may invest in various derivative financial instruments, including financial futures contracts, as specified in Note 2 of the Series’ Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to an index and/or market without owning or taking physical custody of securities or to hedge market and/or equity risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Series’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require the Series to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation the Series can realize on an investment, may result in lower dividends paid to shareholders or may cause the Series to hold an investment that it might otherwise sell. The Series’ investments in these instruments are discussed in detail in the Series’ Notes to Financial Statements.

6 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Statement of Assets and Liabilities BlackRock S&P 500 Index Fund

December 31, 2012
Assets
Investments at value — Master S&P 500 Index Series (cost — $1,349,585,234)	$	1,932,353,093
Capital shares sold receivable		9,453,724
Total assets		1,941,806,817
Liabilities
Capital shares redeemed payable		9,176,586
Administration fees payable		317,294
Service fees payable		161,522
Contributions payable to Master		277,138
Reorganization expense payable		216,671
Officer’s fees payable		263
Other accrued expenses payable		205,970
Total liabilities		10,355,444
Net Assets	$	1,931,451,373
Net Assets Consist of
Paid-in capital	$	1,500,541,062
Undistributed net investment income		913,001
Accumulated net realized loss allocated from the Series		(152,770,549	)
Net unrealized appreciation/depreciation allocated from the Series		582,767,859
Net Assets	$	1,931,451,373
Net Asset Value
Institutional — Based on net assets of $1,153,272,621 and 66,213,585 shares outstanding, 250 million shares authorized, $0.0001 par value	$	17.42
Investor A — Based on net assets of $778,178,752 and 44,751,182 shares outstanding, 250 million shares authorized, $0.0001 par value	$	17.39

See Notes to Financial Statements.
	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2012	7

Statement of Operations BlackRock S&P 500 Index Fund

Year Ended December 31, 2012
Investment Income
Net investment income allocated from the Series:
Dividends — unaffiliated	$	43,330,651
Foreign taxes withheld		(94,297	)
Dividends — affiliated		275,516
Securities lending — affiliated — net		110,300
Expenses		(971,197	)
Fees waived		234,424
Total income		42,885,397
Fund Expenses
Administration		3,708,018
Service — Investor A		1,923,596
Transfer agent — Institutional		626,255
Transfer agent — Investor A		456,397
Reorganization costs		489,854
Registration		123,582
Printing		64,400
Professional		61,187
Officer		1,080
Miscellaneous		10,990
Total expenses		7,465,359
Less fees waived by administrator — class specific		(3,133	)
Total expenses after fees waived		7,462,226
Net investment income		35,423,171
Realized and Unrealized Gain Allocated from the Series
Net realized gain from investments and financial futures contracts		23,738,601
Net change in unrealized appreciation/depreciation on investments and financial futures contracts		213,732,978
Total realized and unrealized gain		237,471,579
Net Increase in Net Assets Resulting from Operations	$	272,894,750

See Notes to Financial Statements.
8	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2012

Statements of Changes in Net Assets BlackRock S&P 500 Index Fund

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2012			2011
Operations
Net investment income	$	35,423,171		$	30,463,163
Net realized gain		23,738,601			10,124,645
Net change in unrealized appreciation/depreciation		213,732,978			(7,501,223	)
Net increase in net assets resulting from operations		272,894,750			33,086,585
Dividends to Shareholders From1
Net investment income:
Institutional		(22,290,574	)		(19,464,643	)
Investor A		(13,172,560	)		(11,312,293	)
Decrease in net assets resulting from dividends to shareholders		(35,463,134	)		(30,776,936	)
Capital Share Transactions
Net increase (decrease) in net assets derived from capital share transactions		(78,484,222	)		9,550,070
Net Assets
Total increase in net assets		158,947,394			11,859,719
Beginning of year		1,772,503,979			1,760,644,260
End of year	$	1,931,451,373		$	1,772,503,979
Undistributed net investment income	$	913,001		$	463,110

¹  Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.
	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2012	9

Financial Highlights BlackRock S&P 500 Index Fund

	Institutional															Investor A
	Year Ended December 31,															Year Ended December 31,
	2012			2011			2010			2009			2008			2012			2011			2010			2009			2008
Per Share Operating Performance
Net asset value, beginning of year	$	15.36		$	15.38		$	13.63		$	11.00		$	18.01		$	15.34		$	15.35		$	13.61		$	10.98		$	17.96
Net investment income1		0.33			0.28			0.24			0.23			0.31			0.29			0.24			0.21			0.20			0.27
Net realized and unrealized gain (loss)		2.07			(0.01	)		1.77			2.64			(7.01	)		2.06			(0.01	)		1.75			2.64			(6.98	)
Net increase (decrease) from investment operations		2.40			0.27			2.01			2.87			(6.70	)		2.35			0.23			1.96			2.84			(6.71	)
Dividends from net investment income2		(0.34	)		(0.29	)		(0.26	)		(0.24	)		(0.31	)		(0.30	)		(0.24	)		(0.22	)		(0.21	)		(0.27	)
Net asset value, end of year	$	17.42		$	15.36		$	15.38		$	13.63		$	11.00		$	17.39		$	15.34		$	15.35		$	13.61		$	10.98
Total Investment Return3
Based on net asset value		15.65%			1.80%			14.75%			26.15%			(37.20)%			15.31%			1.58%			14.42%			25.92%			(37.36)%
Ratios to Average Net Assets4
Total expenses		0.33%	5		0.30%	6		0.33%			0.35%			0.35%			0.58%	5		0.56%	6		0.58%			0.61%			0.60%
Total expenses after fees waived		0.33%	5		0.30%	6		0.33%			0.35%			0.35%			0.58%	5		0.56%	6		0.58%			0.61%			0.60%
Net investment income		1.97%	5		1.80%	6		1.74%			2.02%			2.00%			1.71%	5		1.53%	6		1.49%			1.76%			1.75%
Supplemental Data
Net assets, end of year (000)	$	1,153,273		$	1,059,689		$	1,018,080		$	951,380		$	813,527		$	778,179		$	712,815		$	742,564		$	705,608		$	579,920
Portfolio turnover of the Series		6%			6%			5%			7%			8%			6%			6%			5%			7%			8%

¹  Based on average shares outstanding.

²  Dividends are determined in accordance with federal income tax regulations.

³  Where applicable, total investment returns include the reinvestment of dividends and distributions.

⁴  Includes the Fund’s share of the Series’ allocated net expenses and/or net investment income.

⁵  Includes the Fund’s share of the Series’ allocated fees waived of 0.01%.

⁶  Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

See Notes to Financial Statements.
10	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2012

Notes to Financial Statements BlackRock S&P 500 Index Fund

1. Organization and Significant Accounting Policies:

BlackRock S&P 500 Index Fund (the “Fund”), a series of BlackRock Index Funds, Inc. (the “Corporation”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Corporation is organized as a Maryland corporation. The Fund seeks to achieve its investment objective by investing all of its assets in Master S&P 500 Index Series (the “Series”), a series of Quantitative Master Series LLC (the “Master LLC”), an affiliate of the Fund, which has the same investment objective and strategies as the Fund. The value of the Fund’s investment in the Series reflects the Fund’s proportionate interest in the net assets of the Series. The percentage of the Series owned by the Fund at December 31, 2012 was 78.5%. The performance of the Fund is directly affected by the performance of the Series. The financial statements of the Series, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements. The Fund’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund offers two classes of shares. Institutional Shares are sold without a sales charge and only to certain eligible investors. Investor A Shares are sold without a sales charge. Both classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Investor A Shares bear certain expenses related to the shareholder servicing of such shares and have exclusive voting rights with respect to matters relating to its shareholder servicing expenditures.

Reorganization: On May 16, 2012, the Board of Directors of the Corporation (the “Board”) approved a plan of reorganization whereby BlackRock S&P 500 Stock Fund, a series of BlackRock Funds III (the “Acquiring Fund”), will acquire substantially all of the assets and assume certain stated liabilities of the Fund in exchange for newly issued shares of the Acquiring Fund (the “Reorganization”). The Reorganization is subject to shareholder approval by the Fund’s shareholders and certain other conditions. The Reorganization is contingent on the completion of the reorganization of the Series with the S&P 500 Stock Master Portfolio, a series of Master Investment Portfolio. If the Reorganization is approved by shareholders, each reorganization is expected to contemporaneously close in 2013.

The following is a summary of significant accounting policies followed by the Fund:

Valuation: US GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund’s policy is to fair value its financial instruments at market value. The Fund records its investment in the Series at fair value based on the Fund’s proportionate interest in the net assets of the Series. Valuation of securities held by the Series is discussed in Note 1 of the Series’ Notes to Financial Statements, which are included elsewhere in this report.

Investment Transactions and Investment Income: For financial reporting purposes, contributions to and withdrawals from the Series are accounted for on a trade date basis. The Fund records daily its proportionate share of the Series’ income, expenses and realized and unrealized gains and losses. Realized and unrealized gains and losses are adjusted for utilizing partnership tax allocation rules. In addition, the Fund accrues its own expenses. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Dividends and Distributions: Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. The portion of distributions that exceeds a Fund’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. Distributions in excess of a Fund’s taxable income and net capital gains, but not in excess of a Fund’s earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. Capital losses carried forward from years beginning before 2011 do not reduce earnings and profits, even if such carried forward losses offset current year realized gains. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP.

Income Taxes: It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

The Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s US federal tax returns remains open for each of the four years ended December 31, 2012. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or class. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses pro rated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 11

Notes to Financial Statements (continued) BlackRock S&P 500 Index Fund

2. Administration Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).

The Corporation, on behalf of the Fund, entered into an Administration Agreement with BlackRock Advisors, LLC (the “Administrator”), an indirect, wholly owned subsidiary of BlackRock, to provide administrative services (other than investment advice and related portfolio activities). For such services, the Fund pays the Administrator a monthly fee at an annual rate of 0.195% of the average daily value of the Fund’s average net assets. The Fund does not pay an investment advisory fee or investment management fee.

The Administrator voluntarily agreed to waive and/or reimburse fees or expenses, excluding interest expense, dividend expense, acquired fund fees and expenses and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business, in order to limit expenses. The expense limitation as a percentage of average daily net assets is as follows: 0.40% for Institutional Shares and 0.65% for Investor A Shares. The Administrator may reduce or discontinue this waiver and/or reimbursement at any time without notice. This amount is shown as fees waived by administrator — class specific in the Statement of Operations.

The Corporation, on behalf of the Fund, entered into a Distribution Agreement and Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of BlackRock. Pursuant to the Distribution Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service fees with respect to its Investor A Shares. The fees are accrued daily and paid monthly at the annual rate of 0.25% based upon the average daily net assets attributable to Investor A Shares.

Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder servicing related services to the Fund. The ongoing service fee compensates BRIL and each broker-dealer for providing shareholder servicing related services to Investor A shareholders.

Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended December 31, 2012, the Fund paid the following to affiliates in return for these services, which is included in transfer agent — class specific in the Statement of Operations:

Investor A $ 3,558

The Administrator maintains a call center, which is responsible for providing certain shareholder services to the Fund, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the year ended December 31, 2012, the Fund reimbursed the Administrator the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:

Institutional	$	4,374
Investor A	$	9,173

Certain officers and/or directors of the Corporation are officers and/or directors of BlackRock or its affiliates. The Fund reimburses the Administrator for a portion of the compensation paid to the Corporation’s Chief Compliance Officer.

3. Income Tax Information:

US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of December 31, 2012 attributable to non-deductible expenses was reclassified to the following accounts:

Paid-in capital	$	(489,854	)
Undistributed net investment income	$	489,854

The tax character of distributions paid during the fiscal years ended December 31, 2012 and December 31, 2011 was as follows:

	12/31/12		12/31/11
Ordinary income	$	35,463,134	$	30,776,936

As of December 31, 2012, the tax components of accumulated net earnings were as follows:

Undistributed ordinary income	$	913,001
Capital loss carryforwards		(45,924,676	)
Net unrealized gains1		476,198,291
Qualified late-year losses2		(276,305	)
Total	$	430,910,311

¹ The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the timing and recognition of partnership income.

² The Fund has elected to defer certain qualified late-year losses and recognize such losses in the year ending December 31, 2013.

As of December 31, 2012, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires December 31,
2013	$	4,458,464
2014		26,517,609
2017		14,948,603
Total	$	45,924,676

During the year ended December 31, 2012, the Fund utilized $37,140,520 of its capital loss carryforward.

12 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Notes to Financial Statements (concluded) BlackRock S&P 500 Index Fund

4. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Year Ended December 31, 2012						Year Ended December 31, 2011
	Shares			Amount			Shares			Amount
Institutional
Shares sold		33,715,786		$	572,417,368			32,311,858		$	503,490,398
Shares issued to shareholders in reinvestment of dividends		1,227,560			21,425,669			1,252,755			18,576,495
Shares redeemed		(37,722,243	)		(643,199,513	)		(30,773,695	)		(480,523,283	)
Net increase (decrease)		(2,778,897	)	$	(49,356,476	)		2,790,918		$	41,543,610
Investor A
Shares sold		8,235,943		$	139,409,780			11,381,733		$	176,069,705
Shares issued to shareholders in reinvestment of dividends		698,547			12,170,498			706,429			10,464,979
Shares redeemed		(10,665,030	)		(180,708,024	)		(13,975,275	)		(218,528,224	)
Net decrease		(1,730,540	)	$	(29,127,746	)		(1,887,113	)	$	(31,993,540	)
Total Net Increase (Decrease)		(4,509,437	)	$	(78,484,222	)		903,805		$	9,550,070

5. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 13

Report of Independent Registered Public Accounting Firm BlackRock S&P 500 Index Fund

To the Shareholders of BlackRock S&P 500 Index Fund and Board of Directors of BlackRock Index Funds, Inc.:

We have audited the accompanying statement of assets and liabilities of BlackRock S&P 500 Index Fund, one of the series constituting BlackRock Index Funds, Inc., (the “Fund”) as of December 31, 2012, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock S&P 500 Index Fund of BlackRock Index Funds, Inc. as of December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 22, 2013

Important Tax Information (Unaudited)

All of the ordinary income distributions paid by BlackRock S&P 500 Index Fund of BlackRock Index Funds, Inc. during the fiscal year ended December 31, 2012 qualify for the dividends received deduction for corporations and consist entirely of qualified dividend income for individuals.

14 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Series Portfolio Information Master S&P 500 Index Series

As of December 31, 2012

Ten Largest Holdings Percent of
Long-Term Investments

Apple, Inc.	4	%
Exxon Mobil Corp.	3
General Electric Co.	2
Chevron Corp.	2
International Business Machines Corp.	2
Microsoft Corp.	2
Johnson & Johnson	2
AT&T, Inc.	2
Google, Inc., Class A	1
The Procter & Gamble Co.	1

Sector Allocation Percent of
Long-Term Investments

Information Technology	19	%
Financials	16
Health Care	12
Consumer Discretionary	11
Energy	11
Consumer Staples	11
Industrials	10
Materials	4
Utilities	3
Telecommunication Services	3

For Series compliance purposes, the Series’ sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Series management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 15

Schedule of Investments December 31, 2012 Master S&P 500 Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Aerospace & Defense — 2.4%
The Boeing Co.		130,245	$	9,815,263
General Dynamics Corp.		63,697		4,412,291
Honeywell International, Inc.		150,339		9,542,016
L-3 Communications Holdings, Inc.		17,973		1,377,091
Lockheed Martin Corp.		51,546		4,757,180
Northrop Grumman Corp.		47,109		3,183,626
Precision Castparts Corp.		27,932		5,290,880
Raytheon Co.		63,312		3,644,239
Rockwell Collins, Inc.		26,840		1,561,283
Textron, Inc.		54,298		1,346,048
United Technologies Corp.		161,822		13,271,022
				58,200,939
Air Freight & Logistics — 0.8%
C.H. Robinson Worldwide, Inc.		30,942		1,956,153
Expeditors International of Washington, Inc.		40,070		1,584,769
FedEx Corp.		56,061		5,141,915
United Parcel Service, Inc., Class B		137,315		10,124,235
				18,807,072
Airlines — 0.1%
Southwest Airlines Co.		141,144		1,445,315
Auto Components — 0.3%
BorgWarner, Inc. (a)		22,423		1,605,935
Delphi Automotive Plc (a)		56,689		2,168,354
The Goodyear Tire & Rubber Co. (a)		47,001		649,084
Johnson Controls, Inc.		131,241		4,029,099
				8,452,472
Automobiles — 0.5%
Ford Motor Co.		731,703		9,475,554
Harley-Davidson, Inc.		43,403		2,119,802
				11,595,356
Beverages — 2.4%
Beam, Inc.		30,543		1,865,872
Brown-Forman Corp., Class B		28,963		1,831,910
The Coca-Cola Co.		740,224		26,833,120
Coca-Cola Enterprises, Inc.		51,679		1,639,774
Constellation Brands, Inc., Class A (a)		29,074		1,028,929
Dr. Pepper Snapple Group, Inc.		39,902		1,762,870
Molson Coors Brewing Co., Class B		30,023		1,284,684
Monster Beverage Corp. (a)		28,518		1,508,032
PepsiCo, Inc.		296,851		20,313,514
				58,068,705
Biotechnology — 1.6%
Alexion Pharmaceuticals, Inc. (a)		37,290		3,498,175
Amgen, Inc.		147,263		12,711,742
Biogen Idec, Inc. (a)		45,407		6,659,845
Celgene Corp. (a)		81,179		6,390,411
Gilead Sciences, Inc. (a)		145,401		10,679,703
				39,939,876
Building Products — 0.0%
Masco Corp.		68,261		1,137,228
Capital Markets — 2.0%
Ameriprise Financial, Inc.		39,506		2,474,261
The Bank of New York Mellon Corp.		224,279		5,763,970
BlackRock, Inc. (b)		24,079		4,977,370
The Charles Schwab Corp.		210,476		3,022,435
Common Stocks	Shares		Value
Capital Markets (concluded)
E*Trade Financial Corp. (a)		49,346	$	441,647
Franklin Resources, Inc.		26,485		3,329,165
The Goldman Sachs Group, Inc.		84,776		10,814,027
Invesco Ltd.		85,234		2,223,755
Legg Mason, Inc.		22,684		583,433
Morgan Stanley		265,243		5,071,446
Northern Trust Corp.		41,888		2,101,102
State Street Corp.		89,210		4,193,762
T. Rowe Price Group, Inc.		48,918		3,186,029
				48,182,402
Chemicals — 2.5%
Air Products & Chemicals, Inc.		40,853		3,432,469
Airgas, Inc.		13,424		1,225,477
CF Industries Holdings, Inc.		12,068		2,451,735
The Dow Chemical Co.		230,152		7,438,513
E.I. du Pont de Nemours & Co.		178,955		8,047,606
Eastman Chemical Co.		29,440		2,003,392
Ecolab, Inc.		50,597		3,637,924
FMC Corp.		26,246		1,535,916
International Flavors & Fragrances, Inc.		15,591		1,037,425
LyondellBasell Industries NV, Class A		72,860		4,159,577
Monsanto Co.		102,596		9,710,712
The Mosaic Co.		53,105		3,007,336
PPG Industries, Inc.		29,432		3,983,621
Praxair, Inc.		57,024		6,241,277
The Sherwin-Williams Co.		16,426		2,526,647
Sigma-Aldrich Corp.		23,093		1,699,183
				62,138,810
Commercial Banks — 2.8%
BB&T Corp.		134,282		3,908,949
Comerica, Inc.		36,220		1,098,915
Fifth Third Bancorp		172,264		2,616,690
First Horizon National Corp.		47,494		470,665
Huntington Bancshares, Inc.		165,165		1,055,404
KeyCorp		179,236		1,509,167
M&T Bank Corp.		23,342		2,298,487
The PNC Financial Services Group, Inc. (b)		101,499		5,918,407
Regions Financial Corp.		270,444		1,925,561
SunTrust Banks, Inc.		103,422		2,932,014
US Bancorp		360,863		11,525,964
Wells Fargo & Co.		939,521		32,112,828
Zions Bancorporation		35,695		763,873
				68,136,924
Commercial Services & Supplies — 0.6%
The ADT Corp.		44,624		2,074,570
Avery Dennison Corp.		19,207		670,708
Cintas Corp.		20,486		837,877
Iron Mountain, Inc.		31,838		988,570
Pitney Bowes, Inc.		38,806		412,896
Republic Services, Inc.		57,306		1,680,785
Stericycle, Inc. (a)		16,489		1,537,929
Tyco International Ltd.		89,391		2,614,687
Waste Management, Inc.		83,698		2,823,971
				13,641,993
Communications Equipment — 2.0%
Cisco Systems, Inc.		1,018,880		20,020,992
F5 Networks, Inc. (a)		15,145		1,471,337

See Notes to Financial Statements.

16 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master S&P 500 Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Communications Equipment (concluded)
Harris Corp.		21,730	$	1,063,901
JDS Uniphase Corp. (a)		44,751		605,929
Juniper Networks, Inc. (a)		98,968		1,946,701
Motorola Solutions, Inc.		53,839		2,997,755
QUALCOMM, Inc.		327,015		20,281,470
				48,388,085
Computers & Peripherals — 5.0%
Apple, Inc.		180,522		96,223,642
Dell, Inc.		280,098		2,837,393
EMC Corp. (a)		404,292		10,228,588
Hewlett-Packard Co.		377,349		5,377,223
NetApp, Inc. (a)		68,772		2,307,301
SanDisk Corp. (a)		46,413		2,021,750
Seagate Technology Plc		64,488		1,965,594
Western Digital Corp.		42,031		1,785,897
				122,747,388
Construction & Engineering — 0.2%
Fluor Corp.		31,963		1,877,506
Jacobs Engineering Group, Inc. (a)		25,110		1,068,933
Quanta Services, Inc. (a)		41,045		1,120,118
				4,066,557
Construction Materials — 0.1%
Vulcan Materials Co.		24,766		1,289,070
Consumer Finance — 0.9%
American Express Co.		186,842		10,739,678
Capital One Financial Corp.		111,636		6,467,074
Discover Financial Services		96,882		3,734,801
SLM Corp.		88,399		1,514,275
				22,455,828
Containers & Packaging — 0.1%
Ball Corp.		29,483		1,319,364
Bemis Co.		19,614		656,284
Owens-Illinois, Inc. (a)		31,944		679,449
Sealed Air Corp.		37,754		661,073
				3,316,170
Distributors — 0.1%
Genuine Parts Co.		29,779		1,893,349
Diversified Consumer Services — 0.1%
Apollo Group, Inc., Class A (a)		19,279		403,317
H&R Block, Inc.		52,415		973,346
				1,376,663
Diversified Financial Services — 3.6%
Bank of America Corp.		2,068,377		23,993,173
Citigroup, Inc.		562,769		22,263,142
CME Group, Inc.		58,871		2,985,348
IntercontinentalExchange, Inc. (a)		13,909		1,722,073
JPMorgan Chase & Co.		729,507		32,076,423
Leucadia National Corp.		38,163		907,898
Moody’s Corp.		37,226		1,873,212
The NASDAQ OMX Group, Inc.		22,595		565,101
NYSE Euronext		46,466		1,465,538
				87,851,908
Diversified Telecommunication Services — 2.7%
AT&T, Inc.		1,090,016		36,744,439
Common Stocks	Shares		Value
Diversified Telecommunication Services (concluded)
CenturyLink, Inc.		119,812	$	4,687,045
Frontier Communications Corp. (c)		192,506		823,926
Verizon Communications, Inc.		547,684		23,698,287
Windstream Corp.		111,961		927,037
				66,880,734
Electric Utilities — 2.0%
American Electric Power Co., Inc.		93,133		3,974,916
Duke Energy Corp.		135,154		8,622,825
Edison International		62,536		2,826,002
Entergy Corp.		34,116		2,174,895
Exelon Corp.		163,957		4,876,081
FirstEnergy Corp.		80,270		3,352,075
NextEra Energy, Inc.		81,222		5,619,750
Northeast Utilities, Inc.		60,170		2,351,444
Pepco Holdings, Inc.		44,363		869,958
Pinnacle West Capital Corp.		20,913		1,066,145
PPL Corp.		111,650		3,196,540
The Southern Co.		167,755		7,181,592
Xcel Energy, Inc.		93,547		2,498,640
				48,610,863
Electrical Equipment — 0.7%
Eaton Corp. Plc		88,625		4,803,475
Emerson Electric Co.		138,974		7,360,063
Rockwell Automation, Inc.		26,741		2,245,977
Roper Industries, Inc.		18,886		2,105,411
				16,514,926
Electronic Equipment, Instruments & Components — 0.4%
Amphenol Corp., Class A		30,651		1,983,120
Corning, Inc.		283,645		3,579,600
Flir Systems, Inc.		29,007		647,146
Jabil Circuit, Inc.		36,092		696,215
Molex, Inc.		26,273		718,041
TE Connectivity Ltd.		81,108		3,010,729
				10,634,851
Energy Equipment & Services — 1.8%
Baker Hughes, Inc.		84,383		3,446,202
Cameron International Corp. (a)		47,355		2,673,663
Diamond Offshore Drilling, Inc.		13,277		902,305
Ensco Plc, Class A		44,586		2,643,058
FMC Technologies, Inc. (a)		45,616		1,953,733
Halliburton Co.		178,098		6,178,220
Helmerich & Payne, Inc.		20,163		1,129,330
Nabors Industries Ltd. (a)		55,987		809,012
National Oilwell Varco, Inc.		81,932		5,600,052
Noble Corp. (a)		48,278		1,681,040
Rowan Cos. Plc, Class A (a)		23,983		749,948
Schlumberger Ltd.		254,771		17,653,083
				45,419,646
Food & Staples Retailing — 2.3%
Costco Wholesale Corp.		82,988		8,196,725
CVS Caremark Corp.		239,254		11,567,931
The Kroger Co.		98,621		2,566,118
Safeway, Inc.		45,910		830,512
Sysco Corp.		112,818		3,571,818
Wal-Mart Stores, Inc.		320,986		21,900,875

See Notes to Financial Statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 17

Schedule of Investments (continued) Master S&P 500 Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Food & Staples Retailing (concluded)
Walgreen Co.		164,876	$	6,102,061
Whole Foods Market, Inc.		33,117		3,024,575
				57,760,615
Food Products — 1.7%
Archer-Daniels-Midland Co.		126,400		3,462,096
Campbell Soup Co.		34,235		1,194,459
ConAgra Foods, Inc.		78,225		2,307,638
Dean Foods Co. (a)		36,034		594,921
General Mills, Inc.		123,833		5,004,092
H.J. Heinz Co.		61,544		3,549,858
The Hershey Co.		28,706		2,073,147
Hormel Foods Corp.		25,541		797,135
The J.M. Smucker Co.		20,722		1,787,065
Kellogg Co.		47,469		2,651,144
Kraft Foods Group, Inc.		113,696		5,169,757
McCormick & Co., Inc.		25,331		1,609,278
Mead Johnson Nutrition Co.		38,969		2,567,667
Mondelez International, Inc., Class A		341,048		8,686,493
Tyson Foods, Inc., Class A		55,356		1,073,906
				42,528,656
Gas Utilities — 0.1%
AGL Resources, Inc.		22,567		902,003
ONEOK, Inc.		39,243		1,677,638
				2,579,641
Health Care Equipment & Supplies — 1.7%
Baxter International, Inc.		105,435		7,028,297
Becton Dickinson & Co.		37,804		2,955,895
Boston Scientific Corp. (a)		262,719		1,505,380
C.R. Bard, Inc.		14,635		1,430,425
CareFusion Corp. (a)		42,398		1,211,735
Covidien Plc		90,854		5,245,910
DENTSPLY International, Inc.		27,117		1,074,104
Edwards Lifesciences Corp. (a)		22,154		1,997,626
Intuitive Surgical, Inc. (a)		7,632		3,742,504
Medtronic, Inc.		194,095		7,961,777
St. Jude Medical, Inc.		59,155		2,137,862
Stryker Corp.		55,461		3,040,372
Varian Medical Systems, Inc. (a)		21,003		1,475,251
Zimmer Holdings, Inc.		33,304		2,220,044
				43,027,182
Health Care Providers & Services — 1.9%
Aetna, Inc.		64,220		2,973,386
AmerisourceBergen Corp.		45,201		1,951,779
Cardinal Health, Inc.		65,218		2,685,677
Cigna Corp.		54,873		2,933,511
Coventry Health Care, Inc.		25,824		1,157,690
DaVita, Inc. (a)		16,073		1,776,549
Express Scripts Holding Co. (a)		156,679		8,460,666
Humana, Inc.		30,372		2,084,430
Laboratory Corp. of America Holdings (a)(c)		18,263		1,581,941
McKesson Corp.		45,302		4,392,482
Patterson Cos., Inc.		16,182		553,910
Quest Diagnostics, Inc.		30,355		1,768,786
Tenet Healthcare Corp. (a)		20,666		671,025
UnitedHealth Group, Inc.		196,036		10,632,993
WellPoint, Inc.		58,281		3,550,478
				47,175,303
Common Stocks	Shares		Value
Health Care Technology — 0.1%
Cerner Corp. (a)		27,992	$	2,173,299
Hotels, Restaurants & Leisure — 1.8%
Carnival Corp.		85,577		3,146,666
Chipotle Mexican Grill, Inc. (a)		6,047		1,798,740
Darden Restaurants, Inc.		24,496		1,104,035
International Game Technology		50,836		720,346
Marriott International, Inc., Class A		47,184		1,758,548
McDonald’s Corp.		192,671		16,995,509
Starbucks Corp.		142,708		7,652,003
Starwood Hotels & Resorts Worldwide, Inc.		37,618		2,157,768
Wyndham Worldwide Corp.		26,814		1,426,773
Wynn Resorts Ltd.		15,175		1,707,036
Yum! Brands, Inc.		86,712		5,757,677
				44,225,101
Household Durables — 0.3%
D.R. Horton, Inc.		53,506		1,058,349
Garmin Ltd.		21,116		861,955
Harman International Industries, Inc.		12,905		576,079
Leggett & Platt, Inc.		26,997		734,858
Lennar Corp., Class A		31,340		1,211,918
Newell Rubbermaid, Inc.		55,375		1,233,201
PulteGroup, Inc. (a)(c)		65,206		1,184,141
Whirlpool Corp.		14,912		1,517,296
				8,377,797
Household Products — 2.1%
The Clorox Co.		25,045		1,833,795
Colgate-Palmolive Co.		85,235		8,910,467
Kimberly-Clark Corp.		75,095		6,340,271
The Procter & Gamble Co.		524,711		35,622,629
				52,707,162
Independent Power Producers & Energy Traders — 0.1%
The AES Corp.		118,337		1,266,206
NRG Energy, Inc.		61,757		1,419,793
				2,685,999
Industrial Conglomerates — 2.4%
3M Co.		122,166		11,343,113
Danaher Corp.		111,670		6,242,353
General Electric Co.		2,012,361		42,239,458
				59,824,924
Insurance — 4.0%
ACE Ltd.		65,217		5,204,317
Aflac, Inc.		89,995		4,780,534
The Allstate Corp.		92,468		3,714,440
American International Group, Inc. (a)		283,321		10,001,231
Aon Plc		61,163		3,400,663
Assurant, Inc.		15,392		534,102
Berkshire Hathaway, Inc., Class B (a)		350,045		31,399,036
The Chubb Corp.		50,275		3,786,713
Cincinnati Financial Corp.		28,313		1,108,737
Genworth Financial, Inc., Class A (a)		95,386		716,349
Hartford Financial Services Group, Inc.		83,754		1,879,440
Lincoln National Corp.		52,533		1,360,605
Loews Corp.		59,685		2,432,164
Marsh & McLennan Cos., Inc.		104,485		3,601,598
MetLife, Inc.		209,390		6,897,307

See Notes to Financial Statements.

18 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master S&P 500 Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Insurance (concluded)
Principal Financial Group, Inc.		52,980	$	1,510,990
The Progressive Corp.		106,599		2,249,239
Prudential Financial, Inc.		89,053		4,749,196
Torchmark Corp.		18,390		950,211
The Travelers Cos., Inc.		73,208		5,257,798
Unum Group		52,352		1,089,969
XL Group Plc		57,454		1,439,797
				98,064,436
Internet & Catalog Retail — 1.1%
Amazon.com, Inc. (a)		69,541		17,464,527
Expedia, Inc.		18,031		1,108,005
Netflix, Inc. (a)		10,570		980,685
priceline.com, Inc. (a)		9,571		5,945,505
TripAdvisor, Inc. (a)		21,148		887,370
				26,386,092
Internet Software & Services — 2.2%
Akamai Technologies, Inc. (a)		34,228		1,400,267
eBay, Inc. (a)		223,497		11,402,817
Google, Inc., Class A (a)		51,078		36,233,201
VeriSign, Inc. (a)		29,653		1,151,129
Yahoo! Inc. (a)		199,754		3,975,105
				54,162,519
IT Services — 3.8%
Accenture Plc, Class A		122,542		8,149,043
Automatic Data Processing, Inc.		93,173		5,311,793
Cognizant Technology Solutions Corp., Class A (a)		57,615		4,266,391
Computer Sciences Corp.		29,999		1,201,460
Fidelity National Information Services, Inc.		47,828		1,664,893
Fiserv, Inc. (a)		25,621		2,024,828
International Business Machines Corp.		203,829		39,043,445
MasterCard, Inc., Class A		20,509		10,075,661
Paychex, Inc.		62,094		1,933,607
SAIC, Inc.		54,737		619,623
Teradata Corp. (a)		32,460		2,008,949
Total System Services, Inc.		31,242		669,204
Visa, Inc., Class A		100,045		15,164,821
The Western Union Co.		114,155		1,553,649
				93,687,367
Leisure Equipment & Products — 0.1%
Hasbro, Inc.		21,936		787,502
Mattel, Inc.		65,863		2,411,903
				3,199,405
Life Sciences Tools & Services — 0.4%
Agilent Technologies, Inc.		66,881		2,738,108
Life Technologies Corp. (a)		32,962		1,617,775
PerkinElmer, Inc.		21,811		692,281
Thermo Fisher Scientific, Inc.		69,135		4,409,431
Waters Corp. (a)(c)		16,750		1,459,260
				10,916,855
Machinery — 1.9%
Caterpillar, Inc.		125,497		11,242,021
Cummins, Inc.		33,926		3,675,882
Deere & Co.		75,168		6,496,019
Dover Corp.		34,361		2,257,861
Flowserve Corp.		9,550		1,401,940
Illinois Tool Works, Inc.		81,831		4,976,143
Common Stocks	Shares		Value
Machinery (concluded)
Ingersoll-Rand Plc		53,731	$	2,576,939
Joy Global, Inc.		20,225		1,289,951
PACCAR, Inc.		67,760		3,063,430
Pall Corp.		21,201		1,277,572
Parker Hannifin Corp.		28,620		2,434,417
Pentair Ltd., Registered Shares		40,367		1,984,038
Snap-On, Inc.		11,267		889,980
Stanley Black & Decker, Inc.		32,372		2,394,557
Xylem, Inc.		35,893		972,700
				46,933,450
Media — 3.5%
Cablevision Systems Corp., New York Group, Class A		41,755		623,820
CBS Corp., Class B		113,412		4,315,327
Comcast Corp., Class A		509,947		19,061,819
DIRECTV (a)		115,946		5,815,851
Discovery Communications, Inc., Class A (a)		45,846		2,910,304
Gannett Co., Inc.		43,814		789,090
The Interpublic Group of Cos., Inc.		82,844		912,941
The McGraw-Hill Cos., Inc.		53,302		2,914,020
News Corp., Class A		386,953		9,882,780
Omnicom Group, Inc.		50,708		2,533,372
Scripps Networks Interactive, Class A		16,727		968,828
Time Warner Cable, Inc.		57,917		5,628,953
Time Warner, Inc.		181,715		8,691,428
Viacom, Inc., Class B		88,670		4,676,456
The Walt Disney Co.		340,084		16,932,782
The Washington Post Co., Class B		869		317,367
				86,975,138
Metals & Mining — 0.7%
Alcoa, Inc.		203,936		1,770,164
Allegheny Technologies, Inc.		20,917		635,040
Cliffs Natural Resources, Inc.		27,114		1,045,516
Freeport-McMoRan Copper & Gold, Inc.		182,193		6,231,001
Newmont Mining Corp.		95,279		4,424,757
Nucor Corp.		60,968		2,632,598
United States Steel Corp.		28,023		668,909
				17,407,985
Multi-Utilities — 1.2%
Ameren Corp.		46,319		1,422,920
CenterPoint Energy, Inc.		81,589		1,570,588
CMS Energy Corp.		50,378		1,228,216
Consolidated Edison, Inc.		56,213		3,122,070
Dominion Resources, Inc.		110,279		5,712,452
DTE Energy Co.		33,030		1,983,451
Integrys Energy Group, Inc.		14,880		777,034
NiSource, Inc.		59,317		1,476,400
PG&E Corp.		82,528		3,315,975
Public Service Enterprise Group, Inc.		97,105		2,971,413
SCANA Corp.		25,367		1,157,750
Sempra Energy		43,171		3,062,551
TECO Energy, Inc.		39,407		660,461
Wisconsin Energy Corp.		44,031		1,622,542
				30,083,823
Multiline Retail — 0.8%
Big Lots, Inc. (a)(c)		11,174		318,012
Dollar General Corp. (a)		50,405		2,222,356
Dollar Tree, Inc. (a)		43,551		1,766,429

See Notes to Financial Statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 19

Schedule of Investments (continued) Master S&P 500 Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Multiline Retail (concluded)
Family Dollar Stores, Inc.		18,464	$	1,170,802
J.C. Penney Co., Inc. (c)		27,166		535,442
Kohl’s Corp.		40,567		1,743,570
Macy’s, Inc.		75,869		2,960,408
Nordstrom, Inc.		29,186		1,561,451
Target Corp.		124,898		7,390,215
				19,668,685
Office Electronics — 0.1%
Xerox Corp.		242,156		1,651,504
Oil, Gas & Consumable Fuels — 9.1%
Anadarko Petroleum Corp.		95,912		7,127,221
Apache Corp.		75,095		5,894,958
Cabot Oil & Gas Corp.		40,202		1,999,647
Chesapeake Energy Corp.		99,308		1,650,499
Chevron Corp.		375,591		40,616,411
ConocoPhillips		232,958		13,509,234
CONSOL Energy, Inc.		43,490		1,396,029
Denbury Resources, Inc. (a)		74,575		1,208,115
Devon Energy Corp.		72,290		3,761,972
EOG Resources, Inc.		51,987		6,279,510
EQT Corp.		28,587		1,686,061
Exxon Mobil Corp. (d)		874,950		75,726,923
Hess Corp.		57,033		3,020,468
Kinder Morgan, Inc.		121,374		4,288,143
Marathon Oil Corp.		135,581		4,156,913
Marathon Petroleum Corp.		65,099		4,101,237
Murphy Oil Corp.		35,389		2,107,415
Newfield Exploration Co. (a)		26,334		705,225
Noble Energy, Inc.		34,143		3,473,709
Occidental Petroleum Corp.		155,483		11,911,553
Peabody Energy Corp.		51,271		1,364,321
Phillips 66		120,104		6,377,522
Pioneer Natural Resources Co.		23,654		2,521,280
QEP Resources, Inc.		34,353		1,039,865
Range Resources Corp.		31,104		1,954,264
Southwestern Energy Co. (a)		67,073		2,240,909
Spectra Energy Corp.		127,792		3,498,945
Tesoro Corp.		27,044		1,191,288
Valero Energy Corp.		106,242		3,624,977
The Williams Cos., Inc.		129,326		4,234,133
WPX Energy, Inc. (a)		37,835		562,985
				223,231,732
Paper & Forest Products — 0.2%
International Paper Co.		84,287		3,357,994
MeadWestvaco Corp.		33,810		1,077,525
				4,435,519
Personal Products — 0.2%
Avon Products, Inc.		82,321		1,182,130
The Estée Lauder Cos., Inc., Class A		46,078		2,758,229
				3,940,359
Pharmaceuticals — 6.1%
Abbott Laboratories		303,341		19,868,836
Allergan, Inc.		59,023		5,414,180
Bristol-Myers Squibb Co.		316,787		10,324,088
Eli Lilly & Co.		195,981		9,665,783
Forest Laboratories, Inc. (a)		44,689		1,578,415
Hospira, Inc. (a)		31,488		983,685
Common Stocks	Shares		Value
Pharmaceuticals (concluded)
Johnson & Johnson		531,817	$	37,280,372
Merck & Co., Inc.		583,407		23,884,683
Mylan, Inc. (a)		78,226		2,149,650
Perrigo Co.		16,941		1,762,372
Pfizer, Inc.		1,412,910		35,435,783
Watson Pharmaceuticals, Inc. (a)(c)		24,523		2,108,978
				150,456,825
Professional Services — 0.1%
The Dun & Bradstreet Corp.		8,514		669,626
Equifax, Inc.		22,962		1,242,704
Robert Half International, Inc.		26,733		850,644
				2,762,974
Real Estate Investment Trusts (REITs) — 2.2%
American Tower Corp.		75,876		5,862,939
Apartment Investment & Management Co., Class A		28,088		760,061
AvalonBay Communities, Inc.		21,954		2,976,743
Boston Properties, Inc.		28,956		3,063,834
Equity Residential		61,752		3,499,486
HCP, Inc.		86,765		3,920,043
Health Care REIT, Inc.		49,843		3,054,877
Host Hotels & Resorts, Inc.		139,117		2,179,963
Kimco Realty Corp.		78,692		1,520,329
Plum Creek Timber Co., Inc.		30,854		1,368,992
ProLogis, Inc.		88,465		3,228,088
Public Storage		27,673		4,011,478
Simon Property Group, Inc.		59,368		9,385,487
Ventas, Inc.		56,726		3,671,307
Vornado Realty Trust		32,513		2,603,641
Weyerhaeuser Co.		103,941		2,891,639
				53,998,907
Real Estate Management & Development — 0.0%
CBRE Group, Inc., Class A (a)		57,430		1,142,857
Road & Rail — 0.8%
CSX Corp.		197,952		3,905,593
Norfolk Southern Corp.		60,658		3,751,091
Ryder System, Inc.		9,855		492,060
Union Pacific Corp.		90,274		11,349,247
				19,497,991
Semiconductors & Semiconductor Equipment — 2.0%
Advanced Micro Devices, Inc. (a)(c)		114,729		275,350
Altera Corp.		61,535		2,119,265
Analog Devices, Inc.		57,845		2,432,961
Applied Materials, Inc.		229,883		2,629,861
Broadcom Corp., Class A		99,591		3,307,417
First Solar, Inc. (a)		11,703		361,389
Intel Corp.		954,928		19,700,165
KLA-Tencor Corp.		31,943		1,525,598
Lam Research Corp. (a)		32,653		1,179,753
Linear Technology Corp.		44,421		1,523,640
LSI Corp. (a)		107,363		760,130
Microchip Technology, Inc.		37,561		1,224,113
Micron Technology, Inc. (a)		196,603		1,248,429
NVIDIA Corp. (a)		119,701		1,471,125
Teradyne, Inc. (a)		35,581		600,963
Texas Instruments, Inc.		215,102		6,655,256

See Notes to Financial Statements.

20 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master S&P 500 Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Semiconductors & Semiconductor Equipment (concluded)
Xilinx, Inc.		49,856	$	1,789,830
				48,805,245
Software — 3.5%
Adobe Systems, Inc. (a)		95,017		3,580,241
Autodesk, Inc. (a)		43,340		1,532,069
BMC Software, Inc. (a)		27,130		1,075,976
CA, Inc.		64,089		1,408,676
Citrix Systems, Inc. (a)		35,840		2,356,480
Electronic Arts, Inc. (a)		59,097		858,679
Intuit, Inc.		53,414		3,178,133
Microsoft Corp.		1,453,637		38,855,717
Oracle Corp.		721,347		24,035,282
Red Hat, Inc. (a)		37,110		1,965,346
Salesforce.com, Inc. (a)(c)		25,073		4,214,771
Symantec Corp. (a)		133,192		2,505,341
				85,566,711
Specialty Retail — 2.2%
Abercrombie & Fitch Co., Class A		15,353		736,484
AutoNation, Inc. (a)		7,434		295,130
AutoZone, Inc. (a)		7,089		2,512,554
Bed Bath & Beyond, Inc. (a)		43,994		2,459,705
Best Buy Co., Inc.		51,261		607,443
CarMax, Inc. (a)(c)		43,697		1,640,385
GameStop Corp., Class A		23,454		588,461
The Gap, Inc.		57,059		1,771,111
The Home Depot, Inc.		286,936		17,746,992
Limited Brands, Inc.		45,944		2,162,125
Lowe’s Cos., Inc.		215,843		7,666,743
O’Reilly Automotive, Inc. (a)		22,003		1,967,508
PetSmart, Inc.		20,633		1,410,059
Ross Stores, Inc.		42,653		2,309,660
Staples, Inc.		129,992		1,481,909
Tiffany & Co.		23,042		1,321,228
TJX Cos., Inc.		139,958		5,941,217
Urban Outfitters, Inc. (a)		20,855		820,853
				53,439,567
Textiles, Apparel & Luxury Goods — 0.6%
Coach, Inc.		54,450		3,022,519
Fossil, Inc. (a)		10,361		964,609
NIKE, Inc., Class B		140,078		7,228,025
Ralph Lauren Corp.		11,766		1,763,959
VF Corp.		16,915		2,553,658
				15,532,770
Common Stocks	Shares		Value
Thrifts & Mortgage Finance — 0.1%
Hudson City Bancorp, Inc.		92,005	$	748,001
People’s United Financial, Inc.		66,334		801,978
				1,549,979
Tobacco — 1.8%
Altria Group, Inc.		388,638		12,211,006
Lorillard, Inc.		24,846		2,898,783
Philip Morris International, Inc.		320,588		26,813,980
Reynolds American, Inc.		62,226		2,578,023
				44,501,792
Trading Companies & Distributors — 0.2%
Fastenal Co.		51,731		2,415,321
W.W. Grainger, Inc.		11,455		2,318,148
				4,733,469
Wireless Telecommunication Services — 0.3%
Crown Castle International Corp. (a)		56,266		4,060,154
MetroPCS Communications, Inc. (a)		60,987		606,211
Sprint Nextel Corp. (a)		576,695		3,269,861
				7,936,226
Total Long-Term Investments (Cost — $1,724,316,484) — 99.4%			$	2,444,928,991
Short-Term Securities Shares
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.11% (b)(e)		21,128,527		21,128,527
	Beneficial Interest (000)
BlackRock Liquidity Series, LLC Money Market Series, 0.29% (b)(e)(f)	$	8,630		8,629,550
Total Short-Term Securities (Cost — $29,758,077) — 1.2%				29,758,077
Total Investments (Cost — $1,754,074,561*) — 100.6%				2,474,687,068
Liabilities in Excess of Other Assets — (0.6)%				(14,354,232	)
Net Assets — 100.0%			$	2,460,332,836

Notes to Schedule of Investments

* As of December 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	1,404,527,442
Gross unrealized appreciation	$	1,129,568,948
Gross unrealized depreciation		(59,409,322	)
Net unrealized appreciation	$	1,070,159,626

(a) Non-income producing security.

See Notes to Financial Statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 21

Schedule of Investments (continued) Master S&P 500 Index Series

(b) Investments in issuers considered to be an affiliate of the Series during the year ended December 31, 2012, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares/ Beneficial Interest Held at December 31, 2011		Shares Purchased			Shares/ Beneficial Interest Sold			Shares/ Beneficial Interest Held at December 31, 2012		Value at December 31, 2012		Income		Realized Gain/Loss
BlackRock, Inc.		19,881		6,275			(2,077	)		24,079	$	4,977,370	$	140,765	$	(21,549	)
BlackRock Liquidity Funds, TempFund, Institutional Class		20,822,036		306,491	1		—			21,128,527	$	21,128,527	$	50,960	$	309
BlackRock Liquidity Series, LLC Money Market Series	$	21,533,097		—		$	(12,903,547	)2	$	8,629,550	$	8,629,550	$	142,282		—
The PNC Financial Services Group, Inc.		104,451		5,177			(8,129)			101,499	$	5,918,407	$	159,771	$	30,398
1   Represents net shares purchased.
2   Represents net beneficial interest sold.

(c) Security, or a portion of security, is on loan.

(d) All or a portion of security has been pledged as collateral in connection with open financial futures contracts.

(e) Represents the current yield as of report date.

(f) Security was purchased with the cash collateral from loaned securities. The Series may withdraw up to 25% of its investment daily, although the manager of the BlackRock Liquidity Series LLC, Money Market Series, in its sole discretion, may permit an investor to withdraw more than 25% on any one day.

_Ÿ Financial futures contracts as of December 31, 2012 were as follows:

Contracts Purchased		Issue	Exchange	Expiration	Notional Value		Unrealized Depreciation
	342	S&P 500 E-Mini	Chicago Mercantile	March 2013	$	24,283,710	$	(36,230	)

_Ÿ Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

_Ÿ Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Series has the ability to access

_Ÿ Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

_Ÿ Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Series’ own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Series’ policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in the securities. For information about the Series’ policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Series’ investments and derivative financial instruments categorized in the disclosure hierarchy as of December 31, 2012:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments3	$	2,442,760,637	$	2,168,354		—	$	2,444,928,991
Short-Term Securities		21,128,527		8,629,550		—		29,758,077
Total	$	2,463,889,164	$	10,797,904		—	$	2,474,687,068
3   See above Schedule of Investments for values in each industry excluding Level 2, Auto Components, within the table.

See Notes to Financial Statements.

22 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Schedule of Investments (concluded) Master S&P 500 Index Series

	Level 1			Level 2		Level 3		Total
Derivative Financial Instruments1
Liabilities:
Equity contracts	$	(36,230	)		—		—	$	(36,230	)
1   Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Series’ assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of December 31, 2012, such assets and liabilities are categorized within the disclosure hierarchy as follows:

	Level 1		Level 2			Level 3		Total
Assets:
Cash	$	20,521		—			—	$	20,521
Liabilities:
Collateral on securities loaned at value		—	$	(8,629,550	)		—		(8,629,550	)
Total	$	20,521	$	(8,629,550	)		—	$	(8,609,029	)

There were no transfers between levels during the year ended December 31, 2012.

See Notes to Financial Statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 23

Statement of Assets and Liabilities Master S&P 500 Index Series

December 31, 2012
Assets
Investments at value — unaffiliated (including securities loaned of $8,563,010) (cost — $1,715,354,684)	$	2,434,033,214
Investments at value — affiliated (cost — $38,719,877)		40,653,854
Cash		20,521
Dividends receivable		2,718,894
Variation margin receivable		644,755
Investments sold receivable		361,558
Securities lending income receivable — affiliated		7,280
Prepaid expenses		21,264
Total assets		2,478,461,340
Liabilities
Collateral on securities loaned at value		8,629,550
Withdrawals payable to investors		9,306,643
Investment advisory fees payable		8,812
Other affiliates payable		5,929
Directors’ fees payable		1,389
Other accrued expenses payable		176,181
Total liabilities		18,128,504
Net Assets	$	2,460,332,836
Net Assets Consist of
Investors’ capital	$	1,739,756,559
Net unrealized appreciation/depreciation		720,576,277
Net Assets	$	2,460,332,836

See Notes to Financial Statements.
24	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2012

Statement of Operations Master S&P 500 Index Series

Year Ended December 31, 2012
Investment Income
Dividends — unaffiliated	$	55,933,299
Foreign taxes withheld		(122,393	)
Dividends — affiliated		351,496
Securities lending — affiliated — net		142,282
Total income		56,304,684
Expenses
Investment advisory		245,447
Accounting services		429,117
Professional		155,015
Reorganization costs		154,216
Custodian		114,066
Directors		67,841
Printing		27,093
Registration		19,628
Miscellaneous		40,128
Total expenses		1,252,551
Less fees waived by Manager		(147,182	)
Less reorganization costs reimbursed		(154,216	)
Total expenses after fees waived		951,153
Net investment income		55,353,531
Realized and Unrealized Gain
Net realized gain from:
Investments — unaffiliated		18,854,905
Investments — affiliated		8,849
Capital gain distributions received from affiliated companies		309
Financial futures contracts		5,298,508
		24,162,571
Net change in unrealized appreciation/depreciation on:
Investments		279,503,556
Financial futures contracts		8,491
		279,512,047
Total realized and unrealized gain		303,674,618
Net Increase in Net Assets Resulting from Operations	$	359,028,149

See Notes to Financial Statements.
	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2012	25

Statements of Changes in Net Assets Master S&P 500 Index Series

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2012			2011
Operations
Net investment income	$	55,353,531		$	48,668,634
Net realized gain (loss)		24,162,571			(4,743,580	)
Net change in unrealized appreciation/depreciation		279,512,047			9,221,993
Net increase in net assets resulting from operations		359,028,149			53,147,047
Capital Transactions
Proceeds from contributions		827,271,601			758,612,964
Value of withdrawals		(1,007,033,492	)		(894,677,279	)
Net decrease in net assets derived from capital transactions		(179,761,891	)		(136,064,315	)
Net Assets
Total increase (decrease) in net assets		179,266,258			(82,917,268	)
Beginning of year		2,281,066,578			2,363,983,846
End of year	$	2,460,332,836		$	2,281,066,578

See Notes to Financial Statements.
26	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2012

Financial Highlights Master S&P 500 Index Series

	Year Ended December 31,
	2012		2011		2010		2009		2008
Total Investment Return
Total investment return		15.95%		2.06%		15.11%		26.61%		(36.92	)%
Ratios to Average Net Assets
Total expenses		0.05%		0.04%		0.04%		0.05%		0.04%
Total expenses after fees waived and paid indirectly		0.04%		0.03%		0.04%		0.04%		0.04%
Net investment income		2.25%		2.06%		2.03%		2.32%		2.31%
Supplemental Data
Net assets, end of year (000)	$	2,460,333	$	2,281,067	$	2,363,984	$	2,278,659	$	1,953,848
Portfolio turnover		6%		6%		5%		7%		8%

See Notes to Financial Statements.
	BLACKROCK S&P 500 INDEX FUND	DECEMBER 31, 2012	27

Notes to Financial Statements Master S&P 500 Index Series

1. Organization and Significant Accounting Policies:

Master S&P 500 Index Series (the “Series”), a diversified, open-end management investment company, is a series of Quantitative Master Series LLC (the “Master LLC”). The Master LLC is registered as an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), and is organized as a Delaware limited liability company. The Master LLC’s Limited Liability Company Agreement permits the Board of Directors of the Master LLC (the “Board”) to issue non-transferable interests in the Master LLC, subject to certain limitations. The Series’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Reorganization: On May 16, 2012, the Board approved a plan of reorganization whereby S&P 500 Stock Master Portfolio, a series of Master Investment Portfolio, will acquire substantially all of the assets and assume certain stated liabilities of the Series in exchange for beneficial interests of the S&P 500 Stock Master Portfolio (the “Master Reorganization”). The Master Reorganization is subject to shareholder approval by the feeder funds that invest their assets in the Series and certain other conditions. On December 12, 2012, the Master Reorganization was approved by the shareholders of each feeder fund of the Series. However, the Master Reorganization is not expected to close until the reorganization of BlackRock S&P 500 Index Fund (“S&P 500 Index Fund”), a series of BlackRock Index Funds, Inc., with BlackRock S&P 500 Stock Fund, a series of BlackRock Funds III (the “S&P 500 Fund Reorganization”) is approved by S&P 500 Index Fund’s shareholders. If the S&P 500 Fund Reorganization is not approved, the Board will consider other options, including whether to proceed with the Master Reorganization or other alternatives.

The following is a summary of significant accounting policies followed by the Series:

Valuation: US GAAP defines fair value as the price the Series would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Series determines the fair values of its financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Series for all financial instruments.

Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System (“NASDAQ”) are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at Net Asset Value each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

The Series values its investments in BlackRock Liquidity Series, LLC Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments will follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act. The Series may withdraw up to 25% of its investment daily, although the manager of the Money Market Series, in its sole discretion, may permit an investor in the Money Market Series to withdraw more than 25% on any one day.

In the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that the Series might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deem relevant consistent with the principles of fair value measurement, which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Commit-

28 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Notes to Financial Statements (continued) Master S&P 500 Index Series

tee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Series’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Series either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts), the Series will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, a Series engaging in such transactions may have requirements to deliver/deposit securities to/with an exchange or broker-dealer as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Securities Lending: The Series may lend securities to approved borrowers, such as banks, brokers and other financial institutions. The borrower pledges cash, securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral. The initial collateral received by the Series is required to have a value of at least 102% of the current value of the loaned securities for securities traded on US exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Series and any additional required collateral is delivered to the Series on the next business day. Securities lending income, as disclosed in the Statement of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, the Series earns dividend or interest income on the securities loaned but does not receive interest income on the securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate this risk the Series benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities lent. The Series also could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the year ended December 31, 2012, any securities on loan were collateralized by cash.

Income Taxes: The Series is classified as a partnership for federal income tax purposes. As such, each investor in the Series is treated as the owner of its proportionate share of net assets, income, expenses and realized and unrealized gains and losses of the Series. Therefore, no federal income tax provision is required. It is intended that the Series’ assets will be managed so an investor in the Series can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

The Series files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Series’ US federal tax returns remains open for each of the four years ended December 31, 2012. The statutes of limitations on the Series’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In December 2011, the Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or similar agreements, which are eligible for offset in the Statement of Assets and Liabilities and will require an entity to disclose both gross and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

Other: Expenses directly related to the Series are charged to the Series. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 29

Notes to Financial Statements (continued) Master S&P 500 Index Series

The Series has an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Series engages in various portfolio investment strategies using derivative contracts both to increase the return of the Series and/or to economically hedge, or protect, its exposure to certain risks such as equity risk. These contracts may be transacted on an exchange.

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

Financial Futures Contracts: The Series purchases or sells financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in the value of equity securities (equity risk). Financial futures contracts are agreements between the Series and counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Series agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Series as unrealized appreciation or depreciation. When the contract is closed, the Series records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Derivative Financial Instruments Categorized by Risk Exposure:
Fair Values of Derivative Financial Instruments as of December 31, 2012
	Liability Derivatives
	Statement of Assets and Liabilities Location	Value
Equity contracts	Net unrealized depreciation1	$	(36,230	)

¹  Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Financial Instruments in  the Statement of Operations Year Ended December 31, 2012
	Net Realized Gain From
Equity contracts:
Financial futures contracts		$5,298,508
	Net Change in Unrealized Appreciation/Depreciation on
Equity contracts:
Financial futures contracts		$ 8,491

For the year ended December 31, 2012, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average number of contracts purchased		472
Average notional value of contracts purchased	$	33,114,438

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock.

The Master LLC, on behalf of the Series, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Series’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of the Series’ portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Series. For such services, the Series pays the Manager a monthly fee at an annual rate of 0.01% of the Series’ average daily net assets.

The Manager contractually agreed to waive its investment advisory fee by 0.005% of the Series’ average daily net assets. The Manager has agreed not to reduce or discontinue this contractual waiver prior to May 1, 2013 unless approved by the Board, including a majority of the Independent Directors. For the year ended December 31, 2012, the Manager waived $122,723, which is included in fees waived by Manager in the Statement of Operations.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Series pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Series’ investment in other affiliated investment companies, if any. This amount is included in fees waived by Manager in the Statement of Operations. For the year ended December 31, 2012, the amount waived was $24,459.

The Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by the Series to the Manager.

30 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Notes to Financial Statements (concluded) Master S&P 500 Index Series

For the year ended December 31, 2012, the Series reimbursed the Manager $26,066 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Master LLC, on behalf of the Series, received an exemptive order from the SEC permitting it, among other things, to pay an affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and has retained BIM as the securities lending agent. BIM may, on behalf of the Series, invest cash collateral received by the Series for such loans, among other things, in a private investment company managed by the Manager or in registered money market funds advised by the Manager or its affiliates. The market value of securities on loan and the value of the related collateral, if applicable, are shown in the Statement of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral invested by BIM is disclosed in the Schedule of Investments, if any. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of rebates paid to, or fees paid by, borrowers of securities. The Series retains 65% of securities lending income and pays a fee to BIM equal to 35% of such income. The Series benefits from a borrower default indemnity provided by BlackRock. As securities lending agent, BIM bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BIM does not receive any fees for managing the cash collateral. The share of income earned by the Series is shown as securities lending — affiliated — net in the Statement of Operations. For the year ended December 31, 2012, BIM received $93,550 in securities lending agent fees related to securities lending activities for the Series.

Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock or its affiliates.

4. Investments:

Purchases and sales of investments, excluding short-term securities for the year ended December 31, 2012, were $152,384,232 and $267,024,174 respectively.

5. Borrowings:

The Master LLC, on behalf of the Series, along with certain other funds managed by the Manager and its affiliates, is a party to a $500 million credit agreement with a group of lenders. The Series may borrow under the credit agreement to fund shareholder redemptions. Effective November 2011 to November 2012, the credit agreement had the following terms: a commitment fee of 0.065% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month London Interbank Offered Rate (“LIBOR”) plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2011. The credit agreement, which expired in November 2012, was renewed with the same terms until November 2013. Effective November 2012 to November 2013, the credit agreement has the following terms: a commitment fee of 0.065% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2012. The Series did not borrow under the credit agreement during the year ended December 31, 2012.

6. Market and Credit Risk:

In the normal course of business, the Series invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Series may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Series; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Series may be exposed to counterparty credit risk, or the risk that an entity with which the Series has unsettled or open transactions may fail to or be unable to perform on its commitments. The Series manages counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Series to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Series’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Series.

7. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Series through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 31

Report of Independent Registered Public Accounting Firm Master S&P 500 Index Series

To the Investors of Master S&P 500 Index Series and Board of Directors of Quantitative Master Series LLC:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Master S&P 500 Index Series, one of the portfolios constituting Quantitative Master Series LLC, (the “Series”) as of December 31, 2012, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Series’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Series is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Series’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2012, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Master S&P 500 Index Series of Quantitative Master Series LLC as of December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 22, 2013

32 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Officers and Directors

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1
Ronald W. Forbes 55 East 52nd Street New York, NY 10055 1940	Co-Chairman of the Board and Director	Since 2007	Professor Emeritus of Finance, School of Business, State University of New York at Albany since 2000.	33 RICs consisting of 106 Portfolios	None
Rodney D. Johnson 55 East 52nd Street New York, NY 10055 1941	Co-Chairman of the Board and Director	Since 2007	President, Fairmount Capital Advisors, Inc. since 1987; Member of the Archdiocesan Investment Committee of the Archdiocese of Philadelphia since 2004; Director, The Committee of Seventy (civic) since 2006; Director, Fox Chase Cancer Center from 2004 to 2011.	33 RICs consisting of 106 Portfolios	None
David O. Beim 55 East 52nd Street New York, NY 10055 1940	Director	Since 2007	Professor of Professional Practice at the Columbia University Graduate School of Business since 1991; Trustee, Phillips Exeter Academy since 2002; Chairman, Wave Hill, Inc. (public garden and cultural center) from 1990 to 2006.	33 RICs consisting of 106 Portfolios	None
Dr. Matina S. Horner 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Executive Vice President of Teachers Insurance and Annuity Association and College Retirement Equities Fund from 1989 to 2003.	33 RICs consisting of 106 Portfolios	NSTAR (electric and gas utility)
Herbert I. London 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Professor Emeritus, New York University since 2005; John M. Olin Professor of Humanities, New York University from 1993 to 2005 and Professor thereof from 1980 to 2005; President Emeritus, Hudson Institute (policy research organization) since 2011, President thereof from 1997 to 2011 and Trustee since 1980; Chairman of the Board of Trustees for Grantham University since 2006; Director, InnoCentive, Inc. (strategic solutions company) since 2005; Director, Cerego, LLC (software development and design) since 2005; Director, Cybersettle (dispute resolution technology) since 2009.	33 RICs consisting of 106 Portfolios	AIMS Worldwide, Inc. (marketing)
Ian A. MacKinnon 55 East 52nd Street New York, NY 10055 1948	Director	Since 2012	Director, Kennett Capital, Inc. (investments) since 2006; Director, Free Library of Philadelphia from 1999 to 2008.	33 RICs consisting of 106 Portfolios	None
Cynthia A. Montgomery 55 East 52nd Street New York, NY 10055 1952	Director	Since 2007	Professor, Harvard Business School since 1989; Director, McLean Hospital since 2005; Director, Harvard Business School Publishing from 2005 to 2010.	33 RICs consisting of 106 Portfolios	Newell Rubbermaid, Inc. (manufacturing)
Joseph P. Platt 55 East 52nd Street New York, NY 10055 1947	Director	Since 2007	Director, The West Penn Allegheny Health System (a not-for-profit health system) since 2008; Director, Jones and Brown (Canadian insurance broker) since 1998; General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Partner, Amarna Corporation, LLC (private investment company) from 2002 to 2008.	33 RICs consisting of 106 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company)
Robert C. Robb, Jr. 55 East 52nd Street New York, NY 10055 1945	Director	Since 2007	Partner, Lewis, Eckert, Robb and Company (management and financial consulting firm) since 1981.	33 RICs consisting of 106 Portfolios	None

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 33

Officers and Directors (continued)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1 (concluded)
Toby Rosenblatt 55 East 52nd Street New York, NY 10055 1938	Director	Since 2007	President, Founders Investments Ltd. (private investments) since 1999; Director, Forward Management, LLC since 2007; Director, College Access Foundation of California (philanthropic foundation) since 2009; Director, A.P. Pharma, Inc. (specialty pharmaceuticals) from 1983 to 2011; Director, The James Irvine Foundation (philanthropic foundation) from 1998 to 2008.	33 RICs consisting of 106 Portfolios	None
Kenneth L. Urish 55 East 52nd Street New York, NY 10055 1951	Director	Since 2007	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Chairman Elect of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.	33 RICs consisting of 106 Portfolios	None
Frederick W. Winter 55 East 52nd Street New York, NY 10055 1945	Director	Since 2007	Professor and Dean Emeritus of the Joseph M. Katz School of Business, University of Pittsburgh since 2005 and Dean thereof from 1997 to 2005; Director, Alkon Corporation (pneumatics) since 1992; Director, Trippman Sports (recreation) since 2005; Director, Indotronix International (IT services) from 2004 to 2008.	33 RICs consisting of 106 Portfolios	None
	1   Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The Board has approved one-year extensions in terms of Directors who turn 72 prior to December 31,2013.
	2   Date shown is the earliest date a person has served for the Corporation/Master LLC covered by this annual report. Following the combination of Merrill Lynch Investment Managers, LP. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new fund boards in 2007. As a result, although the chart shows certain Directors as joining the Corporation’s/Master LLC’s board in 2007, each Director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: David O. Beim, 1998; Ronald W. Forbes, 1977; Dr. Matina S. Horner, 2004; Rodney D. Johnson, 1995; Herbert I. London, 1987; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Robert C. Robb, Jr., 1998; Toby Rosenblatt, 2005; Kenneth L. Urish, 1999; and Frederick W. Winter, 1999.
Interested Directors3
Paul L. Audet 55 East 52nd Street New York, NY 10055 1953	Director	Since 2011	Senior Managing Director of BlackRock and Head of U.S. Mutual Funds since 2011; Chair of the U.S. Mutual Funds Committee reporting to the Global Executive Committee since 2011; Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005.	155 RICs consisting of 278 Portfolios	None
Henry Gabbay 55 East 52nd Street New York, NY 10055 1947	Director	Since 2007	Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	155 RICs consisting of 278 Portfolios	None
	3   Mr. Audet is an “interested person,” as defined in the 1940 Act, of the Corporation/Master LLC based on his position with BlackRock and its affiliates. Mr. Gabbay is an “interested person” of the Corporation/Master LLC based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of the BlackRock registered closed-end funds and Directors of other BlackRock registered open-end funds. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

34 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Officers and Directors (concluded)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served	Principal Occupation(s) During Past Five Years
Officers1
John M. Perlowski 55 East 52nd Street New York, NY 10055 1964	President and Chief Executive Officer	Since 2010	Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Administration since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.
Brendan Kyne 55 East 52nd Street New York, NY 10055 1977	Vice President	Since 2009	Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009; Vice President of BlackRock from 2005 to 2008.
Neal Andrews 55 East 52nd Street New York, NY 10055 1966	Chief Financial Officer	Since 2007	Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
Jay Fife 55 East 52nd Street New York, NY 10055 1970	Treasurer	Since 2007	Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
Brian Kindelan 55 East 52nd Street New York, NY 10055 1959	Chief Compliance Officer and Anti-Money Laundering Officer	Since 2007	Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005.
Benjamin Archibald 55 East 52nd Street New York, NY 10055 1975	Secretary	Since 2012	Director of BlackRock since 2010; Assistant Secretary to the funds from 2010 to 2012; General Counsel and Chief Operating Officer of Uhuru Capital Management from 2009 to 2010; Executive Director and Counsel of Goldman Sachs Asset Management from 2005 to 2009.
	1   Officers of the Corporation/Master LLC serve at the pleasure of the Board.
	Further information about the Officers and Directors is available in the Corporation’s/Master LLC’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Investment Advisor BlackRock Advisors, LLC Wilmington, DE 19809	Custodian and Accounting Agent State Street Bank and Trust Company Boston, MA 02110	Independent Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116	Legal Counsel Sidley Austin LLP New York, NY 10019
Sub-Advisor BlackRock Investment Management, LLC Princeton, NJ 08540	Transfer Agent BNY Mellon Investment Servicing (US) Inc. Wilmington, DE 19809	Distributor BlackRock Investments, LLC New York, NY 10022	Address of the Fund 100 Bellevue Parkway Wilmington, DE 19809

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 35

Additional Information

Proxy Results

A Special Meeting of Shareholders was held on multiple dates in 2012 for shareholders of record on August 14, 2012 to seek approval of the Reorganization and to seek instructions from the Fund’s shareholders as to how the Fund should vote its shares of the Series with respect to the Master Reorganization. On December 12, 2012, shareholders instructed the Fund to approve the Master Reorganization.

	Votes For		Votes Withheld		Abstain
Instructed the Fund to approve the Master Reorganization as follows:		53,082,511		787,735		1,415,173

The Special Meeting has been adjourned to solicit additional votes with respect to the proposal seeking approval of the Reorganization. In connection with the continuing solicitation, a new record date of December 28, 2012 was set for the adjourned Special Meeting. The Special Meeting has been reconvened to March 15, 2013.

General Information

Electronic Delivery

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1) Access the BlackRock website at http://www.blackrock.com/edelivery

2) Select “eDelivery” under the “More Information” section

3) Log into your account

Householding

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Fund/Series file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s/Series’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC- 0330. The Fund’s/Series’ Forms N-Q may also be obtained upon request and without charge by calling (800)441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund/Series use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Fund/Series voted proxies relating to securities held in the Fund’s/Series’ portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

36 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

Additional Information (concluded)

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012 37

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds

BlackRock ACWI ex-US Index Fund

BlackRock All-Cap Energy & Resources Portfolio

BlackRock Basic Value Fund

BlackRock Capital Appreciation Fund

BlackRock China Fund

BlackRock Commodity Strategies Fund

BlackRock Emerging Markets Fund

BlackRock Emerging Markets Long/Short Equity Fund

BlackRock Energy & Resources Portfolio

BlackRock Equity Dividend Fund

BlackRock EuroFund

BlackRock Flexible Equity Fund

BlackRock Focus Growth Fund

BlackRock Global Dividend Income Portfolio

BlackRock Global Long/Short Equity Fund

BlackRock Global Opportunities Portfolio

BlackRock Global SmallCap Fund

BlackRock Health Sciences Opportunities Portfolio

BlackRock Index Equity Portfolio

BlackRock India Fund

BlackRock International Fund

BlackRock International Index Fund

BlackRock International Opportunities Portfolio

BlackRock Large Cap Core Fund

BlackRock Large Cap Core Plus Fund

BlackRock Large Cap Growth Fund

BlackRock Large Cap Value Fund

BlackRock Latin America Fund

BlackRock Long-Horizon Equity Fund

BlackRock Mid-Cap Growth Equity Portfolio

BlackRock Mid Cap Value Opportunities Fund

BlackRock Natural Resources Trust

BlackRock Pacific Fund

BlackRock Real Estate Securities Fund

BlackRock Russell 1000 Index Fund

BlackRock Science & Technology Opportunities Portfolio

BlackRock Small Cap Growth Equity Portfolio

BlackRock Small Cap Growth Fund II

BlackRock Small Cap Index Fund

BlackRock S&P 500 Index Fund

BlackRock S&P 500 Stock Fund

BlackRock U.S. Opportunities Portfolio

BlackRock Value Opportunities Fund

BlackRock World Gold Fund

Taxable Fixed Income Funds

BlackRock Bond Index Fund

BlackRock Core Bond Portfolio

BlackRock CoreAlpha Bond Fund

BlackRock Emerging Market Local Debt Portfolio

BlackRock Floating Rate Income Portfolio

BlackRock Global Long/Short Credit Fund

BlackRock GNMA Portfolio

BlackRock High Yield Bond Portfolio

BlackRock Inflation Protected Bond Portfolio

BlackRock International Bond Portfolio

BlackRock Long Duration Bond Portfolio

BlackRock Low Duration Bond Portfolio

BlackRock Secured Credit Portfolio

BlackRock Strategic Income Opportunities Portfolio

BlackRock Total Return Fund

BlackRock U.S. Government Bond Portfolio

BlackRock U.S. Mortgage Portfolio

BlackRock World Income Fund

Municipal Fixed Income Funds

BlackRock California Municipal Bond Fund

BlackRock High Yield Municipal Fund

BlackRock Intermediate Municipal Fund

BlackRock National Municipal Fund

BlackRock New Jersey Municipal Bond Fund

BlackRock New York Municipal Bond Fund

BlackRock Pennsylvania Municipal Bond Fund

BlackRock Short-Term Municipal Fund

Mixed Asset Funds

BlackRock Balanced Capital Fund	LifePath Active Portfolios			LifePath Index Portfolios
BlackRock Global Allocation Fund		2015	2035		Retirement	2040
BlackRock Managed Volatility Portfolio		2020	2040		2020	2045
BlackRock Multi-Asset Income Portfolio		2025	2045		2025	2050
BlackRock Multi-Asset Real Return Fund		2030	2050		2030	2055
BlackRock Strategic Risk Allocation Fund					2035
BlackRock Prepared Portfolios	LifePath Portfolios
Conservative Prepared Portfolio		Retirement	2040
Moderate Prepared Portfolio		2020	2045
Growth Prepared Portfolio		2025	2050
Aggressive Growth Prepared Portfolio		2030	2055
		2035

BlackRock mutual funds are currently distributed by BlackRock Investments, LLC. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing.

38 BLACKROCK S&P 500 INDEX FUND DECEMBER 31, 2012

This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

#SPIndex-12/12-AR

DECEMBER 31, 2012

  ANNUAL REPORT  

BlackRock Small Cap Index Fund  |  of BlackRock Index Funds, Inc.

Not FDIC Insured • May Lose Value • No Bank Guarantee

	Page
Dear Shareholder		3
Annual Report:
Fund Summary		4
About Fund Performance		6
Disclosure of Expenses		6
Derivative Financial Instruments		6
Fund Financial Statements:
Statement of Assets and Liabilities		7
Statement of Operations		8
Statements of Changes in Net Assets		9
Fund Financial Highlights		10
Fund Notes to Financial Statements		12
Fund Report of Independent Registered Public Accounting Firm		15
Important Tax Information		15
Series Portfolio Information		16
Series Financial Statements:
Schedule of Investments		17
Statement of Assets and Liabilities		39
Statement of Operations		40
Statements of Changes in Net Assets		41
Series Financial Highlights		42
Series Notes to Financial Statements		43
Series Report of Independent Registered Public Accounting Firm		48
Officers and Directors		49
Additional Information		52
A World-Class Mutual Fund Family		54

2 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Dear Shareholder

Financial markets substantially improved in 2012 as compared to the prior year, due largely to central bank intervention and considerable relief from the global turmoil seen in 2011. Although 2012 brought its share of headwinds, the strongest returns came from higher-risk asset classes as investors reached for yield in an environment of extremely low interest rates.

The year opened with investor confidence on the rise as global liquidity had been restored and financial news headlines became less daunting. Equity markets moved higher through the first two months of 2012, while climbing US Treasury yields pressured higher-quality fixed income assets. However, markets reversed course in the spring when Europe’s debt crisis boiled over once again. Political instability in Greece and severe deficit and liquidity problems in Spain raised the prospect of a euro collapse. Government borrowing costs in peripheral European countries soared while the region’s finance leaders deliberated over the fiscal integration of the currency bloc. Alongside the drama in Europe, investors were discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, emerged as a particular concern. In the United States, disappointing jobs reports signaled that the recovery was losing steam. Risk assets sold off as investors retreated to safe-haven assets.

As the outlook for the global economy worsened, investors grew increasingly optimistic that the world’s largest central banks soon would intervene to stimulate growth. This theme, along with increased cooperation among finance ministers in Europe, fueled a powerful risk-asset rebound in June. In July, the European Central Bank (“ECB”) president stated that the bank would do “whatever it takes” to preserve the euro currency bloc. This assurance along with expectations for policy stimulus from central banks in Europe and the United States drove most asset classes higher through the summer. Early in September, the ECB announced its decision to support the eurozone’s troubled peripheral countries with unlimited purchases of short term sovereign debt. Days later, the US Federal Reserve announced an aggressive stimulus package involving open-ended monthly purchases of agency mortgage-backed securities.

Going into the fall, US stocks slid on lackluster corporate earnings reports and market volatility rose leading up to the US Presidential election. Global trade slowed as many European countries fell into recession and growth continued to decelerate in China, where a once-a-decade leadership change compounded uncertainty. In the United States, automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013 (known as the “fiscal cliff”) threatened to push the nation into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that bipartisan gridlock would preclude a budget deal prior to the deadline drove high levels of volatility in financial markets around the world in the months leading up to the last day of the year. Ultimately, the United States averted the worst of the fiscal cliff with a last-minute tax deal. Relief from US fiscal worries, however, was only partial as decisions relating to spending cuts and the debt ceiling remained pending as financial markets closed for the year.

All major asset classes generated positive returns for the 6- and 12-month periods ended December 31, 2012. Riskier assets outperformed higher quality investments as investors sought meaningful returns in a low interest rate environment. International and emerging market equities were the strongest performers. US Treasury yields were volatile, but declined overall, resulting in moderate gains for higher quality fixed income sectors. Tax-exempt municipal bonds benefited from a favorable supply-and-demand environment. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.

The New Year brings a host of unknowns, but we believe new opportunities abound. BlackRock was built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. With access to every asset class, geography and investment style, and extensive market intelligence, we help investors of all sizes build dynamic, diverse portfolios to achieve better, more consistent returns over time. We encourage you to visit www.blackrock.com/newworld for more information.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

“ Although 2012 brought its share of headwinds, the strongest returns came from higher-risk asset classes as investors reached for yield in an environment of extremely low interest rates.”

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of December 31, 2012
	6-month			12-month
US large cap equities (S&P 500® Index)		5.95	%		16.00	%
US small cap equities (Russell 2000® Index)		7.20			16.35
International equities (MSCI Europe, Australasia, Far East Index)		13.95			17.32
Emerging market equities (MSCI Emerging Markets Index)		13.75			18.22
3-month Treasury bill (BofA Merrill Lynch 3-Month US Treasury Bill Index)		0.07			0.11
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)		0.71			4.18
US investment grade bonds (Barclays US Aggregate Bond Index)		1.80			4.21
Tax-exempt municipal bonds (S&P Municipal Bond Index)		3.15			7.42
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index)		7.97			15.78
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of December 31, 2012 BlackRock Small Cap Index Fund

Investment Objective

BlackRock Small Cap Index Fund’s (the “Fund”), a series of BlackRock Index Funds, Inc. (the “Corporation”), investment objective is to match the performance of the Russell 2000^® Index (the “Russell 2000^®”) as closely as possible before the deduction of Fund expenses.

Portfolio Management Commentary

How did the Fund perform?

_Ÿ For the 12 months ended December 31, 2012, the Fund’s Institutional Shares returned 16.10% while the benchmark Russell 2000^® Index returned 16.35%. For the same period, the Fund’s Investor A and Class K Shares returned 15.96% and 16.30%, respectively. The Russell 2000^® Index is a market-weighted index composed of approximately 2,000 common stocks issued by small-capitalization US companies in a range of businesses.

_Ÿ Returns for the Fund’s respective share classes differ from the benchmark index based on individual share-class expenses. The Fund invests all of its assets in Master Small Cap Index Series (the “Series”), a series of Quantitative Master Series LLC.

Describe the market environment.

_Ÿ Following a tumultuous 2011, equity markets began the new year with a strong rally amid lower volatility. The debt situation in Europe had stabilized and global liquidity conditions improved as the European Central Bank (“ECB”) implemented its long-term refinancing operations. Positive economic indicators out of the United States brightened the outlook for the world economy and equities moved boldly higher through the first two months of 2012.

_Ÿ A flare-up in the European debt crisis halted the rally in the spring. Political instability in Greece caused anxiety about whether the country would continue its membership in the eurozone. Spain faced severe deficit and policymaking issues and a liquidity crisis in the nation’s banks. Alongside the drama in Europe, investors became discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, was of particular concern. Many European countries fell into recession. In the United States, disappointing jobs reports signaled that the recovery was losing steam. US equities gave back half of their year-to-date gains by the end of May.

_Ÿ As the global economic picture dimmed, investors grew increasingly optimistic that the world’s central banks would intervene to stimulate growth. Meanwhile, European leaders took meaningful steps toward fiscal integration in the euro currency bloc. These positive themes drove a powerful equity rebound in June. In July, ECB president Mario Draghi boosted investor confidence by stating that the ECB was committed to do “whatever it takes” to hold the eurozone together. This assurance along with growing hopes for additional central bank stimulus overshadowed concerns about the dreary economic landscape and US stocks continued their advance through the third quarter. In September, the ECB announced its decision to backstop eurozone governments with unlimited purchases of short-term sovereign debt. Days later, the US Federal Reserve announced an aggressive stimulus program involving purchases of agency mortgage-backed securities.

_Ÿ Concerns about the world economy resurfaced in the fall amid political uncertainty in key nations. Global trade slowed as Europe’s recession deepened, US growth remained lackluster and growth continued to decelerate in China, where a once-in-a-decade leadership change compounded uncertainty. In the United States, automatic tax increases and spending cuts set to take effect at the beginning of 2013, known as the “fiscal cliff,” threatened to push the nation into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that political gridlock would preclude a budget deal prior to the deadline drove high levels of volatility in equity markets around the world in the months leading up to the last day of the year. Ultimately, the United States averted the fiscal cliff with a last-minute tax deal, spurring relief rallies in stock markets globally. However, relief from US fiscal worries was only partial as decisions relating to spending cuts and the national debt ceiling remained pending as financial markets closed for the year. Despite a downtrodden economic environment and a suspenseful lead-up to the US fiscal cliff deadline, US stock prices moved higher through the final months of 2012 as investors took on more risk to achieve meaningful returns in the low interest rate environment.

Describe recent portfolio activity.

_Ÿ During the period, as changes were made to the composition of the Russell 2000^® Index, the Series purchased and sold securities to maintain its objective of replicating the risks and return of the benchmark index.

Describe portfolio positioning at period end.

_Ÿ The Series remains positioned to match the risk characteristics of its benchmark index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

4 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Total Return Based on a $10,000 Investment

¹  Assuming transaction costs and other operating expenses, including investment advisory fees and administration fees, if any.

²  The Fund invests all of its assets in the Series. The Series may invest in a statistically selected sample of the stocks included in the Russell 2000^® Index and other types of financial instruments linked to the Russell 2000^® Index.

³  This unmanaged index is comprised of approximately 2,000 smaller-capitalization common stocks from various industrial sectors.

Performance Summary for the Period Ended December 31, 2012

	6-Month Total Returns			Average Annual Total Returns4
				1 Year			5 Years			10 Years
Institutional		7.07	%		16.10	%		3.28	%		9.27	%
Investor A		6.95			15.96			3.02			8.99
Class K5		7.09			16.30			3.36			9.34
Russell 2000® Index		7.20			16.35			3.56			9.72

⁴  Average annual total returns reflect reductions for service fees, if any. See “About Fund Performance” on page 6 for a detailed description of share classes, including related fees, if any.

⁵  Class K commenced operations on March 31, 2011.

    Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical7
	Beginning Account Value July 1, 2012		Ending Account Value December 31, 2012		Expenses Paid During the  Period6		Beginning Account Value July 1, 2012		Ending Account Value December 31, 2012		Expenses Paid During  the Period6		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,070.70	$	1.41	$	1,000.00	$	1,023.84	$	1.37		0.27	%
Investor A	$	1,000.00	$	1,069.50	$	2.81	$	1,000.00	$	1,022.44	$	2.75		0.54	%
Class K	$	1,000.00	$	1,070.90	$	1.30	$	1,000.00	$	1,023.84	$	1.27		0.25	%

⁶  For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Because the Fund invests significantly in the Series, the expense example reflects the net expenses of both the Fund and the Series in which it invests.

⁷  Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 366.

    See “Disclosure of Expenses” on page 6 for further information on how expenses were calculated.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 5

About Fund Performance

_Ÿ Institutional and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to eligible investors. Prior to March 31, 2011, Class K Shares’ performance results are those of Institutional Shares restated to reflect Class K Shares’ fees.

_Ÿ Investor A Shares are not subject to any sales charge and bear no ongoing distribution fee. These shares are subject to an ongoing service fee of 0.25% per year.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in the performance table on the previous page assume reinvestment of all dividends and capital gain distributions, if any, at net asset value (“NAV”) on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of service and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Fund’s administrator waived and/or reimbursed a portion of the Fund’s fee expenses. Without such waiver and/or reimbursement, the Fund’s performance would have been lower.

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) expenses related to transactions, including exchange fees; and (b) operating expenses, including administration fees, service fees, including 12b-1 fees, and other Fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on July 1, 2012 and held through December 31, 2012) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period”.

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as sales charges or exchange fees, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Series may invest in various derivative financial instruments, including financial futures contracts and foreign currency exchange contracts, as specified in Note 2 of the Series’ Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to an index and/or market without owning or taking physical custody of securities or to hedge market, foreign currency exchange rate and/or equity risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Series’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require the Series to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation the Series can realize on an investment, may result in lower dividends paid to shareholders or may cause the Series to hold an investment that it might otherwise sell. The Series’ investments in these instruments are discussed in detail in the Series’ Notes to Financial Statements.

6 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Statement of Assets and Liabilities BlackRock Small Cap Index Fund

December 31, 2012
Assets
Investments at value — Master Small Cap Index Series (the “Series”) (cost — $78,359,385)	$	93,724,726
Withdrawals receivable from the Series		910,231
Capital shares sold receivable		117,019
Total assets		94,751,976
Liabilities
Capital shares redeemed payable		1,027,250
Service fees payable		9,648
Administration fees payable		6,873
Officer’s fees payable		20
Other accrued expenses payable		36,571
Total liabilities		1,080,362
Net Assets	$	93,671,614
Net Assets Consist of
Paid-in capital	$	87,698,338
Distributions in excess of net investment income		(42,220)
Accumulated net realized loss allocated from the Series		(9,349,845)
Net unrealized appreciation/depreciation allocated from the Series		15,365,341
Net Assets	$	93,671,614
Net Asset Value
Institutional — Based on net assets of $44,328,499 and 3,412,052 shares outstanding, 125 million shares authorized, $0.0001 par value	$	12.99
Investor A — Based on net assets of $49,302,689 and 3,790,601 shares outstanding, 125 million shares authorized, $0.0001 par value	$	13.01
Class K — Based on net assets of $40,426 and 3,108 shares outstanding, 125 million shares authorized, $0.0001 par value	$	13.01

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2012	7

Statement of Operations BlackRock Small Cap Index Fund

Year Ended December 31, 2012
Investment Income
Net investment income allocated from the Series:
Dividends — unaffiliated	$	1,797,085
Foreign taxes withheld		(2,377	)
Securities lending — affiliated — net		142,195
Dividends — affiliated		14,741
Expenses		(131,116	)
Fees waived		55,597
Total income		1,876,125
Fund Expenses
Administration		260,289
Service — Investor A		113,537
Transfer agent — Institutional		20,359
Transfer agent — Investor A		34,571
Transfer agent — Class K		49
Professional		64,409
Printing		63,472
Registration		20,917
Officer		58
Miscellaneous		10,194
Total expenses		587,855
Less fees waived by administrator		(260,289)
Less transfer agent fees waived and/or reimbursed — class specific		(29,518)
Total expenses after fees waived and/or reimbursed		298,048
Net investment income		1,578,077
Realized and Unrealized Gain Allocated from the Series
Net realized gain from investments, financial futures contracts and foreign currency transactions		6,203,776
Net change in unrealized appreciation/depreciation on investments, financial futures contracts and foreign currency translations		6,639,561
Total realized and unrealized gain		12,843,337
Net Increase in Net Assets Resulting from Operations	$	14,421,414

See Notes to Financial Statements.
8	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2012

Statements of Changes in Net Assets BlackRock Small Cap Index Fund

		Year Ended December 31,
Increase (Decrease) in Net Assets:	2012		2011
Operations
Net investment income	$	1,578,077	$	1,269,149
Net realized gain		6,203,776		9,515,016
Net change in unrealized appreciation/depreciation		6,639,561		(17,093,077)
Net increase (decrease) in net assets resulting from operations		14,421,414		(6,308,912)
Dividends to Shareholders From1
Net investment income:
Institutional		(1,228,601)		(898,403)
Investor A		(1,136,281)		(451,389)
Class K		(1,125)		(285)
Decrease in net assets resulting from dividends to shareholders		(2,366,007)		(1,350,077)
Capital Share Transactions
Net decrease in net assets derived from capital share transactions		(13,497,292)		(15,925,751)
Redemption Fee
Redemption fee		—		2,818
Net Assets
Total decrease in net assets		(1,441,885)		(23,581,922)
Beginning of year		95,113,499		118,695,421
End of year	$	93,671,614	$	95,113,499
Distributions in excess of net investment income	$	(42,220)	$	(29,319)

¹  Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2012	9

Financial Highlights BlackRock Small Cap Index Fund

	Institutional															Investor A
	Year Ended December 31,															Year Ended December 31,
	2012			2011			2010			2009			2008			2012			2011			2010			2009			2008
Per Share Operating Performance
Net asset value, beginning of year	$	11.51		$	12.21		$	9.70		$	7.71		$	13.79		$	11.51		$	12.21		$	9.71		$	7.72		$	13.79
Net investment income1		0.24			0.14			0.08			0.07			0.14			0.21			0.11			0.06			0.05			0.11
Net realized and unrealized gain (loss)		1.61			(0.69	)2		2.51	2		1.98	2		(4.86	)2		1.62			(0.70	)2		2.50	2		1.98	2		(4.85	)2
Net increase (decrease) from investment operations		1.85			(0.55	)		2.59			2.05			(4.72	)		1.83			(0.59	)		2.56			2.03			(4.74	)
Dividends and distributions from: 3
Net investment income		(0.37	)		(0.15	)		(0.08	)		(0.06	)		(0.15	)		(0.33	)		(0.11	)		(0.06	)		(0.04	)		(0.12	)
Net realized gain		—			—			—			—			(1.09	)		—			—			—			—			(1.09	)
Tax return of capital		—			—			—			—			(0.12	)		—			—			—			—			(0.12	)
Total dividends and distributions		(0.37	)		0.15			(0.08	)		(0.06	)		(1.36	)		(0.33	)		(0.11	)		(0.06	)		(0.04	)		(1.33	)
Net asset value, end of year	$	12.99		$	11.51		$	12.21		$	9.70		$	7.71		$	13.01		$	11.51		$	12.21		$	9.71		$	7.72
Total Investment Return4
Based on net asset value		16.10%			(4.49)%			26.77%			26.67%			(34.01)%			15.96%			(4.76)%			26.35%			26.36%			(34.19)%
Ratios to Average Net Assets5
Total expenses		0.60%6			0.61%6			0.57%			0.56%			0.53%			0.88%6			0.88%6			0.80%			0.82%			0.80%
Total expenses after fees waived and/or reimbursed		0.28%6			0.30%6			0.52%			0.56%			0.52%			0.55%6			0.55%6			0.78%			0.82%			0.79%
Net investment income		1.88%6			1.14%6			0.80%			0.85%			1.19%			1.64%6			0.88%6			0.53%			0.59%			0.91%
Supplemental Data
Net assets, end of year (000)	$	44,328		$	49,829		$	71,443		$	55,744		$	46,285		$	49,303		$	45,263		$	47,252		$	38,340		$	29,787
Portfolio turnover of the Series		68%			31%			42%			43%			42%			68%			31%			42%			43%			42%

¹  Based on average shares outstanding.

²  Includes a redemption fee, which is less than $0.01 per share.

³  Dividends and distributions are determined in accordance with federal income tax regulations.

⁴  Where applicable, total investment returns include the reinvestment of dividends and distributions.

⁵  Includes the Fund’s share of the Series’ allocated expenses and/or net investment income.

⁶  Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

See Notes to Financial Statements.
10	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2012

Financial Highlights (concluded) BlackRock Small Cap Index Fund

	Class K
	Year Ended December 31, 2012			Period March 31, 20111 to December 31, 2011
Per Share Operating Performance
Net asset value, beginning of period	$	11.51		$	13.17
Net investment income2		0.25			0.11
Net realized and unrealized gain (loss)		1.62			(1.62	)
Net increase (decrease) from investment operations		1.87			(1.51	)
Dividends from net investment income3		(0.37	)		(0.15	)
Net asset value, end of period	$	13.01		$	11.51
Total Investment Return4
Based on net asset value		16.30%			(11.42)%5
Ratios to Average Net Assets6,7
Total expenses		0.68%			0.68%8
Total expenses after fees waived and/or reimbursed		0.25%			0.25%8
Net investment income		1.99%			1.28%8
Supplemental Data
Net assets, end of period (000)	$	40		$	22
Portfolio turnover of the Series		68%			31%

¹  Commencement of operations.

²  Based on average shares outstanding.

³  Dividends are determined in accordance with federal income tax regulations.

⁴  Where applicable, total investment returns include the reinvestment of dividends and distributions.

⁵  Aggregate total investment return.

⁶  Includes the Fund’s share of the Series’ allocated expenses and/or net investment income.

⁷  Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

⁸  Annualized.

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2012	11

Notes to Financial Statements BlackRock Small Cap Index Fund

1. Organization and Significant Accounting Policies:

BlackRock Small Cap Index Fund (the “Fund”), a series of BlackRock Index Funds, Inc. (“the Corporation”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Corporation is organized as a Maryland corporation. The Fund seeks to achieve its investment objective by investing all of its assets in Master Small Cap Index Series (the “Series”), a series of Quantitative Master Series LLC (the “Master LLC”), which has the same investment objective and strategies as the Fund. The value of the Fund’s investment in the Series reflects the Fund’s proportionate interest in the net assets of the Series. The performance of the Fund is directly affected by the performance of the Series. The percentage of the Series owned by the Fund at December 31, 2012 was 16.1%. The financial statements of the Series, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements. The Fund’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund offers multiple classes of shares. Institutional Shares and Class K Shares are sold without a sales charge and only to certain eligible investors. Investor A Shares are generally sold without a front-end sales charge. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Investor A Shares bear certain expenses related to the shareholder servicing of such shares. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures.

The following is a summary of significant accounting policies followed by the Fund:

Valuation: US GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund’s policy is to fair value its financial instruments at market value. The Fund records its investment in the Series at fair value based on the Fund’s proportionate interest in the net assets of the Series. Valuation of securities held by the Series is discussed in Note 1 of the Series’ Notes to Financial Statements, which are included elsewhere in this report.

Investment Transactions and Investment Income: For financial reporting purposes, contributions to and withdrawals from the Series are accounted for on a trade date basis. The Fund records daily its proportionate share of the Series’ income, expenses and realized and unrealized gains and losses. Realized and unrealized gains and losses are adjusted for utilizing partnership tax allocation rules. In addition, the Fund accrues its own expenses. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Dividends and Distributions: Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. The portion of distributions that exceeds the Fund’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. Distributions in excess of the Fund’s taxable income and net capital gains, but not in excess of the Fund’s earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. Capital losses carried forward from years beginning before 2011 do not reduce earnings and profits, even if such carried forward losses offset current year realized gains. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP.

Income Taxes: It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

The Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s US federal tax returns remains open for each of the four years ended December 31, 2012. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or class. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses pro rated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

2 . Administration Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).

The Corporation, on behalf of the Fund, entered into an Administration Agreement with BlackRock Advisors, LLC (the “Administrator”), an indirect, wholly owned subsidiary of BlackRock, to provide administrative services (other than investment advice and related portfolio activities). For such services, the Fund pays the Administrator a monthly fee at an annual rate of 0.29% of the average daily value of the Fund’s net assets. The Fund does not pay an investment advisory fee or investment management fee.

12 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Notes to Financial Statements (continued) BlackRock Small Cap Index Fund

The Administrator contractually agreed to waive and/or reimburse fees or expenses, excluding interest expense, dividend expense, acquired fund fees and expenses and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business, in order to limit expenses. The expense limitation as a percentage of average daily net assets is as follows: 0.30% for Institutional Shares, 0.55% for Investor A Shares, and 0.25% for Class K Shares. The Administrator has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to May 1, 2013 unless approved by the Corporation’s Board of Directors (the “Board”), including a majority of the Independent Directors.

As a result of this agreement, the Administrator waived and/or reimbursed the following amounts, which are shown as transfer agent fees waived and/or reimbursed—class specific in the Statement of Operations.

Institutional	$	10,724
Investor A	$	18,746
Class K	$	48

In addition, the Administrator waived $260,289, which is shown as fees waived by administrator in the Statement of Operations.

The Corporation, on behalf of the Fund, entered into a Distribution Agreement and Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Administrator. Pursuant to the Distribution Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service fees with respect to its Investor A Shares. The fees are accrued daily and paid monthly at the annual rate of 0.25% based upon the average daily net assets attributable to Investor A Shares.

Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder servicing to the Fund. The ongoing service fee compensates BRIL and each broker-dealer for providing shareholder servicing to Investor A shareholders.

Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended December 31, 2012, the Fund paid the following to affiliates in return for these services, which is included in transfer agent – class specific in the Statement of Operations:

Investor A $ 326

The Administrator maintains a call center, which is responsible for providing certain shareholder services to the Fund, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the year ended December 31, 2012, the Fund reimbursed the Administrator the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:

Institutional	$	370
Investor A	$	1,166

Certain officers and/or directors of the Corporation are officers and/or directors of BlackRock or its affiliates. The Fund reimburses the Administrator for a portion of the compensation paid to the Corporation’s Chief Compliance Officer.

3. Income Tax Information:

US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of December 31, 2012 attributable to foreign currency transactions, distributions in excess of taxable income and the sale of stock of passive foreign investment companies were reclassified to the following accounts:

Paid-in capital	$	(772,373	)
Distributions in excess of net investment income	$	775,029
Accumulated net realized loss . . . . . . . . . . . .	$	(2,656	)

The tax character of distributions paid during the fiscal years ended December 31, 2012 and December 31, 2011 was as follows:

	12/31/12		12/31/11
Ordinary income . . . . . . . . . . . . . . . .	$	2,366,007	$	1,350,077

As of December 31, 2012, the tax components of accumulated net earnings were as follows:

Capital loss carryforwards	$	(5,382,674	)
Net unrealized gains1. . . . . . . . . . . . . . . . . .		11,355,950
Total	$	5,973,276

¹ The differences between book-basis and tax-basis net unrealized gains were attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the treatment of certain security lending transactions, the realization for tax purposes of unrealized gains/losses on certain futures contracts and other temporary differences.

As of December 31, 2012, the Fund had a capital loss carryforward available to offset future realized capital gains of $5,382,674, all of which is due to expire December 31, 2017.

During the year ended December 31, 2012, the Fund utilized $8,200,607 of its capital loss carryforward.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 13

Notes to Financial Statements (concluded) BlackRock Small Cap Index Fund

4. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Year Ended December 31, 2012						Year Ended December 31, 20111
	Shares			Amount			Shares			Amount
Institutional
Shares sold		1,580,057		$	19,997,150			2,230,820		$	27,256,806
Shares issued to shareholders in reinvestment of dividends		92,861			1,184,913			74,998			854,792
Shares redeemed		(2,591,654	)		(32,891,463	)		(3,827,916	)		(45,027,943	)
Net decrease		(918,736	)	$	(11,709,400	)		(1,522,098	)	$	(16,916,345	)
Investor A
Shares sold		1,177,051		$	14,949,308			920,917		$	11,298,590
Shares issued to shareholders in reinvestment of dividends		81,185			1,037,519			37,402			414,562
Shares redeemed		(1,400,945	)		(17,787,742	)		(895,970	)		(10,747,558	)
Net increase (decrease)		(142,709	)	$	(1,800,915	)		62,349		$	965,594
Class K
Shares sold		2,476		$	29,350			1,898		$	25,000
Shares issued to shareholders in reinvestment of dividends		33			423			—			—
Shares redeemed		(1,299	)		(16,750	)		—			—
Net increase		1,210		$	13,023			1,898		$	25,000
Total Net Decrease		(1,060,235	)	$	(13,497,292	)		(1,457,851	)	$	(15,925,751	)

¹  For the period March 31, 2011 (commencement of operations) to December 31, 2011 for Class K.

At December 31, 2012, affiliates owned 1,898 shares of Class K.

Prior to April 1, 2011, there was a 2% redemption fee on shares redeemed or exchanged that have been held for 30 days or less. The redemption fees were collected and retained by the Fund for the benefit of the remaining shareholders. The redemption fees were recorded as a credit to paid-in-capital. Effective April 1, 2011, the redemption fee was terminated and is no longer charged by the Fund.

5. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

14 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Report of Independent Registered Public Accounting Firm BlackRock Small Cap Index Fund

To the Shareholders of BlackRock Small Cap Index Fund and Board of Directors of BlackRock Index Funds, Inc.:

We have audited the accompanying statement of assets and liabilities of BlackRock Small Cap Index Fund, one of the series constituting BlackRock Index Funds, Inc., (the “Fund”) as of December 31, 2012, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Small Cap Index Fund, of BlackRock Index Funds, Inc., as of December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 15, 2013

Important Tax Information (Unaudited)

The following information is provided with respect to the ordinary income distributions paid by the Fund for the taxable year ended December 31, 2012.

	Payable Date		Percentage
Qualified Dividend Income for Individuals1		12/17/12		55.67%
Dividends Qualifying for the Dividend Received Deduction for Corporations1		12/17/12		55.73%

¹  The Fund hereby designates the percentage indicated or the maximum amount allowable by law.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 15

Series Portfolio Information Master Small Cap Index Series

As of December 31, 2012

Ten Largest Holdings Percent of
Long-Term Investments

Ocwen Financial Corp.	0.3	%
Genesee & Wyoming, Inc., Class A	0.3
Two Harbors Investment Corp.	0.3
Pharmacyclics, Inc.	0.3
Starwood Property Trust, Inc.	0.3
CommVault Systems, Inc.	0.3
Alaska Air Group, Inc.	0.3
Warnaco Group, Inc.	0.2
Dril-Quip, Inc.	0.2
WEX, Inc.	0.2

Sector Allocation Percent of
Long-Term Investments

Financials	23	%
Information Technology	16
Industrials	16
Consumer Discretionary	14
Health Care	12
Energy	6
Materials	5
Consumer Staples	4
Utilities	3
Telecommunication Services	1

For Series compliance purposes, the Series’ sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes, and/or as defined by Series management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

16 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments December 31, 2012 Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Advertising Agencies — 0.6%
Arbitron, Inc.		12,300	$	574,164
Constant Contact, Inc. (a)		14,183		201,541
Digital Generation, Inc. (a)		12,824		139,269
Harte-Hanks, Inc.		20,823		122,856
Marchex, Inc., Class B		10,467		43,019
MDC Partners, Inc., Class A		11,903		134,504
National CineMedia, Inc.		26,061		368,242
QuinStreet, Inc. (a)(b)		15,217		102,258
ReachLocal, Inc. (a)		4,634		59,825
Travelzoo, Inc. (a)		3,310		62,857
Valassis Communications, Inc.		18,526		477,600
ValueClick, Inc. (a)		34,918		677,758
Viad Corp.		9,405		255,440
				3,219,333
Aerospace — 1.2%
AAR Corp.		18,723		349,746
AeroVironment, Inc. (a)		8,039		174,768
API Technologies Corp. (a)		14,894		43,788
Astronics Corp. (a)		5,599		128,105
CPI Aerostructures, Inc. (a)		3,010		30,130
Cubic Corp.		7,370		353,539
Curtiss-Wright Corp.		21,788		715,300
Esterline Technologies Corp. (a)		14,253		906,633
GenCorp, Inc. (a)(b)		27,753		253,940
Heico Corp.		24,502		1,096,709
Kaman Corp., Class A		12,276		451,757
Kratos Defense & Security Solutions, Inc. (a)		18,609		93,603
LMI Aerospace, Inc. (a)		4,108		79,449
Moog, Inc., Class A (a)		21,022		862,533
Orbital Sciences Corp. (a)		27,376		376,968
SIFCO Industries, Inc.		1,115		17,561
Teledyne Technologies, Inc. (a)		17,083		1,111,591
				7,046,120
Agriculture, Fishing & Ranching — 0.4%
Alico, Inc.		1,588		58,168
The Andersons, Inc.		8,636		370,484
Cadiz, Inc. (a)		5,989		47,433
Cal-Maine Foods, Inc.		6,712		269,957
Calavo Growers, Inc.		5,514		139,008
Fresh Del Monte Produce, Inc.		17,694		466,237
Limoneira Co.		3,786		73,411
Pilgrims Pride Corp. (a)		28,118		203,855
Sanderson Farms, Inc.		10,678		507,739
Seaboard Corp.		142		359,243
				2,495,535
Air Transport — 1.1%
Air Transport Services Group, Inc. (a)		24,875		99,749
Alaska Air Group, Inc. (a)		33,126		1,427,399
Allegiant Travel Co.		6,976		512,108
Atlas Air Worldwide Holdings, Inc. (a)		12,302		545,102
Bristow Group, Inc.		16,648		893,332
Hawaiian Holdings, Inc. (a)(b)		23,753		156,057
JetBlue Airways Corp. (a)(b)		108,840		621,476
PHI, Inc. (a)		6,046		202,481
Republic Airways Holdings, Inc. (a)		22,488		127,732
SkyWest, Inc.		23,752		295,950
Spirit Airlines, Inc. (a)		19,446		344,583
US Airways Group, Inc. (a)		75,629		1,020,991
				6,246,960
Common Stocks	Shares		Value
Alternative Energy — 0.1%
Ameresco, Inc., Class A (a)		9,317	$	91,400
Amyris, Inc. (a)		14,050		43,836
EnerNOC, Inc. (a)		11,483		134,925
Gevo, Inc. (a)		15,328		23,605
Green Plains Renewable Energy, Inc. (a)		11,665		92,270
Rex American Resources Corp. (a)		2,536		48,920
Solazyme, Inc. (a)		15,692		123,339
				558,295
Aluminum — 0.2%
Century Aluminum Co. (a)		24,040		210,590
Kaiser Aluminum Corp.		8,981		554,038
Noranda Aluminum Holding Corp.		15,628		95,487
				860,115
Asset Management & Custodian — 1.1%
Apollo Investment Corp.		94,882		793,214
Arlington Asset Investment Corp.		5,125		106,446
Artio Global Investors, Inc.		15,458		29,370
Calamos Asset Management, Inc., Class A		9,113		96,324
Capital Southwest Corp.		1,381		137,589
CIFC Corp. (a)		3,076		24,608
Cohen & Steers, Inc.		8,682		264,541
Cowen Group, Inc., Class A (a)		41,037		100,541
Diamond Hill Investments Group, Inc.		1,254		85,096
Epoch Holding Corp.		7,477		208,608
Fifth Street Finance Corp.		49,186		512,518
Financial Engines, Inc. (a)		21,600		599,400
GAMCO Investors, Inc., Class A		3,005		159,475
Golub Capital BDC, Inc.		7,434		118,795
GSV Capital Corp. (a)		9,151		77,143
Harris & Harris Group, Inc. (a)		14,233		46,969
Horizon Technology Finance Corp.		3,632		54,081
JMP Group, Inc.		7,709		46,794
KCAP Financial, Inc.		10,375		95,346
Manning & Napier, Inc.		6,370		80,262
MCG Capital Corp.		35,674		164,100
Medley Capital Corp.		13,422		195,424
MVC Capital, Inc.		11,160		135,594
National Financial Partners Corp. (a)		18,957		324,923
New Mountain Finance Corp.		8,969		133,638
NGP Capital Resources Co.		10,374		74,900
Oppenheimer Holdings, Inc.		4,865		84,019
Pzena Investment Management, Inc., Class A		4,938		26,665
Resource America, Inc., Class A		5,783		38,573
Solar Capital Ltd.		18,159		434,182
Solar Senior Capital Ltd.		4,498		83,933
TCP Capital Corp.		2,691		39,665
THL Credit, Inc.		7,202		106,518
TICC Capital Corp.		19,481		197,148
Virtus Investment Partners, Inc. (a)(b)		2,824		341,535
Westwood Holdings Group, Inc.		3,106		127,035
WisdomTree Investments, Inc. (a)		27,240		166,709
				6,311,681
Auto Parts — 0.7%
American Axle & Manufacturing Holdings, Inc. (a)		31,058		347,850
Dana Holding Corp.		68,804		1,074,030
Dorman Products, Inc.		11,418		403,512
Exide Technologies (a)		36,413		124,533
Federal-Mogul Corp., Class A (a)		8,519		68,322

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 17

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Auto Parts (concluded)
Fuel Systems Solutions, Inc. (a)		6,855	$	100,769
Gentherm, Inc. (a)		13,726		182,556
Meritor, Inc. (a)		44,933		212,533
Standard Motor Products, Inc.		9,272		206,024
Stoneridge, Inc. (a)		13,024		66,683
Superior Industries International, Inc.		10,686		217,994
Tenneco, Inc. (a)		28,265		992,384
Tower International, Inc. (a)		2,558		20,592
U.S. Auto Parts Network, Inc. (a)		7,304		13,366
				4,031,148
Auto Services — 0.1%
Cooper Tire & Rubber Co.		29,053		736,784
Back Office Support, HR & Consulting — 2.0%
The Advisory Board Co. (a)		15,951		746,347
Angie’s List, Inc. (a)		16,583		198,830
Barrett Business Services, Inc.		3,249		123,754
CBIZ, Inc. (a)		17,168		101,463
CDI Corp.		6,366		109,050
Convergys Corp.		53,463		877,328
The Corporate Executive Board Co.		15,605		740,613
CoStar Group, Inc. (a)		13,122		1,172,713
CRA International, Inc. (a)		4,789		94,679
Dice Holdings, Inc. (a)		20,940		192,229
ExlService Holdings, Inc. (a)		10,849		287,499
Forrester Research, Inc.		6,512		174,522
FTI Consulting, Inc. (a)		19,527		644,391
GP Strategies Corp. (a)		6,848		141,411
The Hackett Group, Inc.		11,244		48,124
Heidrick & Struggles International, Inc.		8,391		128,047
Hudson Global, Inc. (a)		15,527		69,561
Huron Consulting Group, Inc. (a)		10,638		358,394
ICF International, Inc. (a)		9,221		216,140
Innodata Corp. (a)		10,328		39,040
Insperity, Inc.		10,557		343,736
Kelly Services, Inc., Class A		12,406		195,270
Kforce, Inc.		13,346		191,248
Korn/Ferry International (a)		22,225		352,489
Liquidity Services, Inc. (a)		10,957		447,703
MAXIMUS, Inc.		15,796		998,623
Monster Worldwide, Inc. (a)		56,507		317,569
Navigant Consulting, Inc. (a)		24,018		268,041
On Assignment, Inc. (a)		20,005		405,701
PDI, Inc. (a)		4,553		34,603
PRGX Global, Inc. (a)		10,776		69,505
Resources Connection, Inc.		19,740		235,696
RPX Corp. (a)		9,854		89,080
ServiceSource International, Inc. (a)		23,217		135,820
SYKES Enterprises, Inc. (a)		18,052		274,752
TeleTech Holdings, Inc. (a)		10,619		189,018
TrueBlue, Inc. (a)		18,795		296,021
WageWorks, Inc. (a)		3,199		56,942
				11,365,952
Banks: Diversified — 6.3%
1st Source Corp.		7,013		154,917
1st United Bancorp, Inc.		13,995		87,469
Access National Corp.		3,557		46,241
Alliance Financial Corp.		2,279		99,159
American National BankShares, Inc.		3,740		75,511
Common Stocks	Shares		Value
Banks: Diversified (continued)
Ameris Bancorp (a)		11,128	$	138,989
Ames National Corp.		3,914		85,717
Arrow Financial Corp.		4,915		122,629
Bancfirst Corp.		3,068		129,960
Banco Latinoamericana De Comercio Exterior SA		13,251		285,692
The Bancorp, Inc. (a)		13,603		149,225
BancorpSouth, Inc.		44,167		642,188
Bank of Kentucky Financial Corp.		2,788		68,947
Bank of Marin Bancorp		2,530		94,774
Bank of the Ozarks, Inc.		13,698		458,472
Banner Corp.		9,010		276,877
Bar Harbor Bankshares		1,796		60,435
BBCN Bancorp, Inc.		36,431		421,507
Berkshire Bancorp, Inc. (a)		1,934		15,859
Boston Private Financial Holdings, Inc.		36,549		329,306
Bridge Bancorp, Inc.		4,066		82,702
Bridge Capital Holdings (a)		4,392		68,340
Bryn Mawr Bank Corp.		5,399		120,236
C&F Financial Corp.		1,525		59,383
Camden National Corp.		3,639		123,617
Cape Bancorp, Inc. (a)		5,211		45,284
Capital City Bank Group, Inc. (a)		5,548		63,081
Cardinal Financial Corp.		13,683		222,622
Cascade Bancorp (a)		3,055		19,124
Cathay General Bancorp		36,767		716,956
Center Bancorp, Inc.		5,572		64,524
Centerstate Banks, Inc.		14,074		120,051
Central Pacific Financial Corp. (a)		10,136		158,020
Century Bancorp, Inc., Class A		1,580		52,061
Chemical Financial Corp.		12,933		307,288
Citizens & Northern Corp.		5,761		108,883
Citizens Republic Bancorp, Inc. (a)		18,713		354,986
City Holding Co.		6,950		242,207
CNB Financial Corp.		5,901		96,658
CoBiz Financial, Inc.		16,414		122,613
Columbia Banking System, Inc.		18,701		335,496
Community Bank System, Inc.		18,512		506,488
Community Trust Bancorp, Inc.		6,613		216,774
Crescent Financial Bancshares, Inc. (b)		1,441		6,614
CVB Financial Corp.		41,386		430,414
Eagle Bancorp, Inc. (a)		8,556		170,863
Enterprise Bancorp, Inc.		2,866		47,346
Enterprise Financial Services Corp.		8,319		108,729
EverBank Financial Corp.		10,518		156,823
Farmers National Banc Corp.		8,859		54,926
Fidelity Southern Corp. (a)		4,416		42,173
Financial Institutions, Inc.		6,539		121,822
First Bancorp, Inc.		4,211		69,355
First Bancorp, North Carolina		7,155		91,727
First Bancorp, Puerto Rico (a)		33,140		151,781
First Busey Corp.		35,161		163,499
First Commonwealth Financial Corp.		49,338		336,485
First Community Bancshares, Inc.		8,316		132,807
First Connecticut Bancorp, Inc.		8,273		113,754
First Financial Bancorp		27,586		403,307
First Financial Bankshares, Inc.		14,780		576,568
First Financial Corp.		5,287		159,879
First Interstate Bancsystem, Inc.		7,643		117,931
First Merchants Corp.		13,378		198,530
First Midwest Bancorp, Inc.		35,002		438,225

See Notes to Financial Statements.

18 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Banks: Diversified (continued)
The First of Long Island Corp.		3,643	$	103,170
FirstMerit Corp.		51,387		729,182
FNB Corp.		65,443		695,005
FNB United Corp. (a)		4,751		55,112
German American Bancorp, Inc.		5,954		129,321
Glacier Bancorp, Inc.		33,704		495,786
Guaranty Bancorp (a)		36,400		70,980
Hancock Holding Co.		35,666		1,132,039
Hanmi Financial Corp. (a)		14,786		200,942
Heartland Financial USA, Inc.		6,825		178,474
Heritage Commerce Corp. (a)		9,861		68,830
Heritage Oaks Bancorp (a)		9,537		55,315
Home Bancshares, Inc.		10,337		341,328
Horizon Bancorp		3,096		60,836
Hudson Valley Holding Corp.		7,397		115,171
IBERIABANK Corp.		13,813		678,495
Independent Bank Corp.		10,429		301,920
International Bancshares Corp.		25,012		451,467
Investors Bancorp, Inc.		20,612		366,481
Lakeland Bancorp, Inc.		13,923		141,736
Lakeland Financial Corp.		7,695		198,839
MainSource Financial Group, Inc.		9,453		119,769
MB Financial, Inc.		25,544		504,494
Mercantile Bank Corp.		4,089		67,468
Merchants Bancshares, Inc.		2,445		65,453
Meridian Interstate Bancorp, Inc. (a)		3,884		65,174
Metro Bancorp, Inc. (a)		6,631		87,662
MetroCorp Bancshares, Inc. (a)		7,525		82,700
Middleburg Financial Corp.		2,550		45,033
Midsouth Bancorp, Inc.		3,979		65,057
NASB Financial, Inc. (a)		1,947		41,607
National Bank Holdings Corp. Class A		3,386		64,300
National Bankshares, Inc.		3,304		107,017
National Penn Bancshares, Inc.		57,844		539,106
NBT Bancorp, Inc.		15,630		316,820
Northrim BanCorp, Inc.		3,092		70,034
OFS Capital Corp.		3,085		42,234
Old National Bancorp		47,475		563,528
Oriental Financial Group, Inc.		21,362		285,183
Pacific Continental Corp.		8,540		83,094
Pacific Mercantile Bancorp (a)		5,006		31,488
PacWest Bancorp		14,262		353,412
Park National Corp.		5,348		345,641
Park Sterling Corp. (a)		20,844		109,014
Peapack-Gladstone Financial Corp.		4,204		59,192
Penns Woods Bancorp, Inc.		1,823		68,198
Peoples Bancorp, Inc.		5,054		103,253
Pinnacle Financial Partners, Inc. (a)		16,148		304,228
Preferred Bank (a)		5,538		78,640
PrivateBancorp, Inc.		28,263		432,989
Prosperity Bancshares, Inc.		22,211		932,862
Provident Financial Services, Inc.		28,124		419,610
Renasant Corp.		11,821		226,254
Republic Bancorp, Inc., Class A		4,692		99,142
Rockville Financial, Inc.		13,426		173,195
Roma Financial Corp.		3,490		52,769
S&T Bancorp, Inc.		13,609		245,915
Sandy Spring Bancorp, Inc.		11,340		220,223
SCBT Financial Corp.		7,762		311,877
Seacoast Banking Corp. of Florida (a)		35,215		56,696
Common Stocks	Shares		Value
Banks: Diversified (concluded)
Sierra Bancorp		5,783	$	66,100
Simmons First National Corp., Class A		8,058		204,351
Southside Bancshares, Inc.		8,114		170,881
Southwest Bancorp, Inc. (a)		9,184		102,861
State Bank Financial Corp.		14,771		234,563
StellarOne Corp.		10,813		152,896
Stellus Capital Investment Corp.		884		14,480
Sterling Bancorp		14,636		133,334
Sterling Financial Corp.		12,602		263,130
Suffolk Bancorp (a)		4,627		60,614
Sun Bancorp, Inc. (a)		19,018		67,324
Susquehanna Bancshares, Inc.		87,747		919,589
SY Bancorp, Inc.		5,765		129,251
Taylor Capital Group, Inc. (a)		7,636		137,830
Texas Capital Bancshares, Inc. (a)		18,736		839,747
Tompkins Trustco, Inc.		5,237		207,595
Towne Bank		12,362		191,487
Trico Bancshares		7,539		126,278
TrustCo Bank Corp. NY		44,388		234,369
Trustmark Corp.		30,411		683,031
UMB Financial Corp.		15,136		663,562
Umpqua Holdings Corp.		52,312		616,758
Union First Market Bankshares Corp.		9,540		150,446
United Bankshares, Inc.		10,792		262,461
United Community Banks, Inc. (a)		15,149		142,704
Univest Corp. of Pennsylvania		7,976		136,390
Virginia Commerce Bancorp (a)		12,535		112,188
Washington Banking Co.		7,254		98,799
Washington Trust Bancorp, Inc.		6,761		177,882
Webster Financial Corp.		33,702		692,576
WesBanco, Inc.		11,954		265,618
West Bancorp., Inc.		7,422		80,009
West Coast Bancorp		9,048		200,413
Westamerica Bancorp		13,100		557,929
Western Alliance Bancorp (a)		34,084		358,904
Wilshire Bancorp, Inc. (a)(b)		28,891		169,590
Wintrust Financial Corp.		16,973		622,909
				36,704,435
Banks: Savings, Thrift & Mortgage Lending — 1.4%
Apollo Residential Mortgage, Inc.		11,490		231,983
Astoria Financial Corp.		40,733		381,261
Bank Mutual Corp.		21,904		94,187
BankFinancial Corp.		9,961		73,911
Beneficial Mutual Bancorp, Inc. (a)		15,302		145,369
Berkshire Hills Bancorp, Inc.		11,565		275,941
BofI Holding, Inc. (a)		5,176		144,255
Brookline Bancorp, Inc.		32,846		279,191
BSB Bancorp, Inc. (a)		3,717		45,459
Charter Financial Corp.		3,120		33,072
Clifton Savings Bancorp, Inc.		4,070		45,869
Dime Community Bancshares, Inc.		14,688		204,016
Doral Financial Corp. (a)		51,829		37,529
ESB Financial Corp.		4,890		67,824
ESSA Bancorp, Inc.		4,410		48,025
First Defiance Financial Corp.		4,567		87,641
First Federal Bancshares of Arkansas, Inc. (a)		1,745		17,014
First Financial Holdings, Inc.		7,769		101,619
First Financial Northwest, Inc. (a)		7,541		56,935
First Pactrust Bancorp, Inc.		5,091		62,467

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 19

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Banks: Savings, Thrift & Mortgage Lending (concluded)
Flushing Financial Corp.		14,499	$	222,415
Fox Chase Bancorp., Inc.		5,915		98,485
Franklin Financial Corp.		6,480		107,438
Great Southern Bancorp, Inc.		4,798		122,109
Heritage Financial Corp.		7,296		107,178
Heritage Financial Group, Inc.		4,012		55,325
Hingham Institution for Savings		563		35,244
Home Bancorp, Inc. (a)		3,168		57,816
Home Federal Bancorp, Inc.		7,244		90,043
Home Loan Servicing Solutions Ltd.		13,613		257,286
HomeStreet, Inc. (a)		4,147		105,956
Kearny Financial Corp.		7,124		69,459
Northfield Bancorp, Inc.		6,934		105,743
Northwest Bancshares, Inc.		45,760		555,526
OceanFirst Financial Corp.		6,762		92,977
Ocwen Financial Corp. (a)		50,114		1,733,443
OmniAmerican Bancorp, Inc. (a)		5,198		120,230
Oritani Financial Corp.		21,271		325,872
Peoples Federal Bancshares, Inc.		2,761		48,014
Provident Financial Holdings, Inc.		4,611		80,692
Provident New York Bancorp		18,596		173,129
SI Financial Group, Inc.		4,803		55,234
Simplicity Bancorp, Inc.		4,143		61,938
Territorial Bancorp., Inc.		5,119		116,969
United Financial Bancorp, Inc.		9,738		153,081
ViewPoint Financial Group		15,724		329,261
Waterstone Financial, Inc. (a)		3,542		27,628
Westfield Financial, Inc.		11,452		82,798
WSFS Financial Corp.		3,540		149,565
				7,974,422
Beverage: Brewers & Distillers — 0.1%
Boston Beer Co., Inc., Class A (a)(b)		3,610		485,365
Central European Distribution Corp. (a)(b)		30,305		65,762
Craft Brew Alliance, Inc. (a)		4,715		30,553
				581,680
Beverage: Soft Drinks — 0.1%
Coca-Cola Bottling Co. Consolidated		2,123		141,179
Farmer Bros. Co. (a)		3,139		45,296
Heckmann Corp. (a)(b)		65,655		264,590
National Beverage Corp.		5,224		76,218
				527,283
Biotechnology — 3.3%
Accelrys, Inc. (a)		25,756		233,092
Acorda Therapeutics, Inc. (a)		18,709		465,106
Aegerion Pharmaceuticals, Inc. (a)		11,671		296,327
Affymax, Inc. (a)		16,869		320,511
Agenus, Inc. (a)		11,683		47,900
Alkermes Plc (a)		57,058		1,056,714
Alnylam Pharmaceuticals, Inc. (a)		21,666		395,404
AMAG Pharmaceuticals, Inc. (a)		9,923		145,967
Amicus Therapeutics, Inc. (a)		14,216		38,099
Arena Pharmaceuticals, Inc. (a)(b)		101,042		911,399
Arqule, Inc. (a)		27,879		77,782
Array Biopharma, Inc. (a)		54,258		201,840
Astex Pharmaceuticals (a)		43,694		127,150
AVEO Pharmaceuticals, Inc. (a)		18,238		146,816
BG Medicine, Inc. (a)		5,052		11,670
BioDelivery Sciences International, Inc. (a)		12,616		54,375
Common Stocks	Shares		Value
Biotechnology (continued)
BioTime, Inc. (a)		14,483	$	45,477
Celldex Therapeutics, Inc. (a)		29,045		194,892
Cepheid, Inc. (a)		30,556		1,033,098
ChemoCentryx, Inc.		2,600		28,444
Clovis Oncology, Inc. (a)(b)		6,441		103,056
Codexis, Inc. (a)		12,474		27,568
Cornerstone Therapeutics, Inc. (a)		3,809		18,017
Coronado Biosciences, Inc. (a)		8,149		36,752
Cubist Pharmaceuticals, Inc. (a)(b)		29,512		1,241,275
Curis, Inc. (a)		37,015		126,961
Cytori Therapeutics, Inc. (a)(b)		28,769		81,129
Dendreon Corp. (a)(b)		55,929		295,305
Discovery Laboratories, Inc. (a)		20,767		43,818
Durata Therapeutics, Inc.		4,189		32,004
Dyax Corp. (a)		46,202		160,783
Dynavax Technologies Corp. (a)		81,519		233,144
Emergent Biosolutions, Inc. (a)		12,083		193,811
Enzon Pharmaceuticals, Inc.		19,163		84,892
Exact Sciences Corp. (a)		29,745		315,000
Exelixis, Inc. (a)(b)		85,548		390,954
Furiex Pharmaceuticals, Inc. (a)		3,427		66,004
Genomic Health, Inc. (a)		7,513		204,804
Geron Corp. (a)		62,263		87,791
GTx, Inc. (a)		12,612		52,970
Halozyme Therapeutics, Inc. (a)(b)		42,018		281,941
Harvard Bioscience, Inc. (a)		11,208		49,091
Horizon Pharma, Inc. (a)		18,302		42,644
Hyperion Therapeutics, Inc.		1,731		19,526
Idenix Pharmaceuticals, Inc. (a)(b)		42,207		204,704
ImmunoCellular Therapeutics Ltd. (a)		24,384		46,817
ImmunoGen, Inc. (a)		39,059		498,002
Immunomedics, Inc. (a)		30,922		90,292
Intercept Pharmaceuticals, Inc. (a)		1,545		52,901
InterMune, Inc. (a)		30,555		296,078
Keryx Biopharmaceuticals, Inc. (a)		33,611		88,061
Lexicon Genetics, Inc. (a)		99,189		220,200
Ligand Pharmaceuticals, Inc. (a)		8,142		168,865
MannKind Corp. (a)		52,913		122,229
Maxygen, Inc.		12,679		31,190
Merrimack Pharmaceuticals, Inc. (a)		7,296		44,433
Momenta Pharmaceuticals, Inc. (a)		21,878		257,723
Nektar Therapeutics (a)		53,456		396,109
Neurocrine Biosciences, Inc. (a)(b)		30,989		231,798
NewLink Genetics Corp. (a)		5,973		74,663
Novavax, Inc. (a)		60,775		114,865
NPS Pharmaceuticals, Inc. (a)		40,157		365,429
Omeros Corp. (a)		12,111		62,856
OncoGenex Pharmaceutical, Inc. (a)		6,792		89,111
Oncothyreon, Inc. (a)		26,784		51,425
Opko Health, Inc. (a)(b)		49,973		240,370
Orexigen Therapeutics, Inc. (a)		33,982		179,085
Osiris Therapeutics, Inc. (a)(b)		7,746		69,559
Pacific Biosciences of California, Inc. (a)		17,924		30,471
PDL BioPharma, Inc.		65,462		461,507
Peregrine Semiconductor Corp. (a)		2,891		44,261
Progenics Pharmaceuticals, Inc. (a)		19,568		58,313
Raptor Pharmaceutical Corp. (a)(b)		24,193		141,529
Regulus Therapeutics, Inc. (a)		2,484		15,649
Repligen Corp. (a)		14,500		91,205
Repros Therapeutics, Inc. (a)		7,987		125,795

See Notes to Financial Statements.

20 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Biotechnology (concluded)
Rigel Pharmaceuticals, Inc. (a)		39,758	$	258,427
RTI Biologics, Inc. (a)		25,980		110,935
Sangamo Biosciences, Inc. (a)		24,670		148,267
Seattle Genetics, Inc. (a)		44,329		1,028,433
Sequenom, Inc. (a)(b)		53,487		252,459
Sucampo Pharmaceuticals, Inc., Class A (a)		5,093		24,956
Sunesis Pharmaceuticals, Inc. (a)		14,099		59,216
Synageva BioPharma Corp. (a)(b)		4,908		227,191
Synergy Pharmaceuticals, Inc. (a)		19,336		101,707
Synta Pharmaceuticals Corp. (a)		18,624		167,988
Targacept, Inc. (a)		12,959		56,760
TESARO, Inc. (a)		2,135		36,188
Theravance, Inc. (a)(b)		28,283		629,862
Threshold Pharmaceuticals, Inc. (a)		21,221		89,340
Transcept Pharmaceuticals, Inc. (a)		6,000		26,700
Trius Therapeutics, Inc. (a)		12,272		58,660
Vanda Pharmaceuticals, Inc. (a)		13,535		50,080
Ventrus Biosciences, Inc. (a)		5,566		12,023
Verastem, Inc. (a)		2,984		26,229
ViroPharma, Inc. (a)		31,975		727,751
XOMA Corp. (a)		38,289		91,702
ZIOPHARM Oncology, Inc. (a)		31,213		129,846
				19,301,518
Building Materials — 1.1%
Acuity Brands, Inc.		19,721		1,335,703
BlueLinx Holdings, Inc. (a)		11,418		32,085
Builders FirstSource, Inc. (a)		21,076		117,604
Gibraltar Industries, Inc. (a)		14,212		226,255
Griffon Corp.		21,150		242,379
Headwaters, Inc. (a)		28,637		245,133
Louisiana-Pacific Corp. (a)(b)		64,052		1,237,485
LSI Industries, Inc.		9,138		64,057
NCI Building Systems, Inc. (a)		8,446		117,399
Patrick Industries, Inc. (a)		1,896		29,502
PGT, Inc. (a)		9,234		41,553
Quanex Building Products Corp.		17,146		349,950
Simpson Manufacturing Co., Inc.		18,653		611,632
Texas Industries, Inc. (a)		10,516		536,421
Trex Co., Inc. (a)		6,949		258,711
Watsco, Inc.		13,701		1,026,205
				6,472,074
Building: Climate Control — 0.1%
Aaon, Inc.		8,644		180,400
Comfort Systems USA, Inc.		17,431		211,961
Nortek, Inc. (a)		3,591		237,904
				630,265
Building: Roofing, Wallboard & Plumbing — 0.3%
Beacon Roofing Supply, Inc. (a)		21,833		726,602
USG Corp. (a)(b)		34,516		968,864
				1,695,466
Casinos & Gambling — 0.4%
Ameristar Casinos, Inc.		15,011		393,889
Boyd Gaming Corp. (a)		25,440		168,922
Caesars Entertainment Corp. (a)		16,856		116,643
Isle of Capri Casinos, Inc. (a)		9,538		53,413
Monarch Casino & Resort, Inc. (a)		4,001		43,651
MTR Gaming Group, Inc. (a)		10,516		43,852
Common Stocks	Shares		Value
Casinos & Gambling (concluded)
Multimedia Games Holding Co., Inc. (a)		12,732	$	187,288
Pinnacle Entertainment, Inc. (a)		28,620		453,054
Scientific Games Corp., Class A (a)		25,978		225,229
WMS Industries, Inc. (a)(b)		25,615		448,262
				2,134,203
Cement — 0.2%
Eagle Materials, Inc.		22,776		1,332,396
Chemicals: Diversified — 1.1%
Aceto Corp.		12,440		124,898
American Vanguard Corp.		12,964		402,791
Chemtura Corp. (a)		45,948		976,854
Georgia Gulf Corp.		15,957		658,705
Hawkins, Inc.		4,235		163,640
Innophos Holdings, Inc.		10,143		471,650
KMG Chemicals, Inc.		3,623		63,656
Landec Corp. (a)		11,852		112,475
LSB Industries, Inc. (a)		8,740		309,571
Olin Corp.		37,290		805,091
OM Group, Inc. (a)		15,060		334,332
Omnova Solutions, Inc. (a)		21,456		150,407
PolyOne Corp.		41,712		851,759
Sensient Technologies Corp.		23,225		825,881
				6,251,710
Chemicals: Specialty — 0.5%
Balchem Corp.		13,623		495,877
Calgon Carbon Corp. (a)		26,473		375,387
FutureFuel Corp.		8,929		105,720
GSE Holding, Inc. (a)		3,690		22,878
Innospec, Inc.		10,735		370,250
Kraton Performance Polymers, Inc. (a)		15,002		360,498
Quaker Chemical Corp.		6,034		324,991
Stepan Co.		7,674		426,214
Zep, Inc.		10,276		148,386
				2,630,201
Coal — 0.2%
Arch Coal, Inc.		98,931		724,175
Cloud Peak Energy, Inc. (a)		28,407		549,107
Hallador Energy Co.		3,138		25,920
KiOR, Inc., Class A (a)(b)		12,336		79,074
Westmoreland Coal Co. (a)		5,123		47,849
				1,426,125
Commercial Banks — 0.0%
HomeTrust Bancshares, Inc. (a)		9,906		133,830
Commercial Finance & Mortgage Companies — 0.2%
Asta Funding, Inc.		4,739		45,068
Capital Bank Financial Corp., Class A		4,375		74,681
Federal Agricultural Mortgage Corp., Class B		4,676		151,970
Medallion Financial Corp.		8,729		102,479
Nationstar Mortgage Holdings, Inc. (a)		9,003		278,913
NewStar Financial, Inc. (a)(b)		12,322		172,631
Walker & Dunlop, Inc. (a)		5,503		91,680
				917,422
Commercial Services & Supplies — 0.0%
American Reprographics Co. (a)		17,351		44,419
LifeLock, Inc. (a)		8,241		66,999
Performant Financial Corp. (a)		4,142		41,834
				153,252

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 21

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Commercial Services: Rental & Leasing — 0.5%
Aircastle Ltd.		27,262	$	341,866
CAI International, Inc. (a)		6,713		147,350
Electro Rent Corp.		8,743		134,467
H&E Equipment Services, Inc.		13,421		202,255
Marlin Business Services, Inc.		3,854		77,311
McGrath RentCorp		11,506		333,904
MicroFinancial, Inc.		4,226		30,765
Mobile Mini, Inc. (a)		17,784		370,441
PHH Corp. (a)		26,388		600,327
SeaCube Container Leasing Ltd.		5,039		94,985
TAL International Group, Inc.		13,587		494,295
Willis Lease Finance Corp. (a)		2,423		34,673
				2,862,639
Commercial Vehicles & Parts — 0.2%
Accuride Corp. (a)		21,965		70,508
Commercial Vehicle Group, Inc. (a)		11,364		93,298
Miller Industries, Inc.		5,084		77,531
Modine Manufacturing Co. (a)		21,794		177,185
Rush Enterprises, Inc., Class A (a)		15,359		317,471
Spartan Motors, Inc.		15,860		78,190
Sypris Solutions, Inc.		5,141		20,358
Wabash National Corp. (a)		31,873		285,901
				1,120,442
Communications Equipment — 0.0%
Envivio, Inc. (a)		3,561		6,054
Ruckus Wireless, Inc. (a)		3,855		86,860
				92,914
Communications Technology — 2.1%
Adtran, Inc.		29,702		580,377
Ambient Corp. (a)		1,020		3,070
Anaren, Inc. (a)		6,411		124,694
Anixter International, Inc.		13,133		840,249
Aruba Networks, Inc. (a)		52,065		1,080,349
Aviat Networks, Inc. (a)		28,558		93,956
Bel Fuse, Inc.		4,911		96,010
Black Box Corp.		8,005		194,842
Calix, Inc. (a)		18,327		140,935
Ciena Corp. (a)(b)		46,151		724,571
Comtech Telecommunications Corp.		8,319		211,136
Datalink Corp. (a)		7,132		60,979
Digi International, Inc. (a)		11,860		112,314
DigitalGlobe, Inc. (a)(b)		16,818		411,032
Echelon Corp. (a)		17,957		43,995
Emulex Corp. (a)		40,416		295,037
Extreme Networks, Inc. (a)(b)		43,666		158,944
Finisar Corp. (a)(b)		42,527		693,190
GeoEye, Inc. (a)		6,929		212,928
Globecomm Systems, Inc. (a)		10,674		120,616
GSI Technology, Inc. (a)		9,566		59,979
Harmonic, Inc. (a)		54,636		277,004
Infinera Corp. (a)		51,111		296,955
InterDigital, Inc.		20,326		835,399
Ixia (a)		19,603		332,859
KVH Industries, Inc. (a)		6,874		96,098
Loral Space & Communications Ltd.		5,110		279,313
NeoPhotonics Corp. (a)		8,775		50,368
NETGEAR, Inc. (a)		17,663		696,275
Numerex Corp., Class A (a)		4,650		61,101
Common Stocks	Shares		Value
Communications Technology (concluded)
Oclaro, Inc. (a)		34,870	$	54,746
Oplink Communications, Inc. (a)		8,839		137,712
ParkerVision, Inc. (a)		35,756		72,585
PC-Tel, Inc.		8,294		59,717
Plantronics, Inc.		19,790		729,657
Procera Networks, Inc. (a)		8,981		166,597
QLogic Corp. (a)		45,357		441,324
SeaChange International, Inc. (a)		13,278		128,398
Shoretel, Inc. (a)		22,452		95,196
Sonus Networks, Inc. (a)(b)		99,130		168,521
Sycamore Networks, Inc.		9,229		20,673
TeleNav, Inc. (a)		7,753		61,869
Tellabs, Inc.		170,769		389,353
Viasat, Inc. (a)		17,443		678,533
Westell Technologies, Inc., Class A (a)		22,140		40,959
				12,430,415
Computer Services Software & Systems — 5.1%
ACI Worldwide, Inc. (a)(c)		18,514		808,877
The Active Network, Inc. (a)		18,216		89,441
Actuate Corp. (a)		22,941		128,470
Acxiom Corp. (a)		35,759		624,352
American Software, Inc., Class A		10,942		84,910
Aspen Technology, Inc. (a)		43,559		1,203,971
AVG Technologies NV (a)		3,819		60,455
Avid Technology, Inc. (a)		13,944		105,696
Aware, Inc.		5,633		30,869
Bankrate, Inc. (a)(b)		21,539		268,161
Bazaarvoice, Inc. (a)		4,931		46,105
Blackbaud, Inc.		21,022		479,932
Blucora, Inc. (a)		18,628		292,646
Bottomline Technologies, Inc. (a)		16,278		429,576
Brightcove, Inc. (a)		2,802		25,330
BroadSoft, Inc. (a)(b)		12,806		465,242
CACI International, Inc., Class A (a)		10,525		579,191
Callidus Software, Inc. (a)		16,148		73,312
Ciber, Inc. (a)		33,806		112,912
CommVault Systems, Inc. (a)(b)		20,801		1,450,038
Computer Task Group, Inc. (a)		7,094		129,324
ComScore, Inc. (a)		16,440		226,543
Comverse Technology, Inc. (a)		101,915		391,354
Cornerstone OnDemand, Inc. (a)		15,657		462,351
CSG Systems International, Inc. (a)(b)		15,757		286,462
DealerTrack Holdings, Inc. (a)		19,760		567,507
Demand Media, Inc.		13,930		129,410
Demandware, Inc.		3,045		83,189
Digimarc Corp.		3,288		68,062
Digital River, Inc. (a)		17,131		246,515
EarthLink, Inc.		49,263		318,239
Ebix, Inc. (b)		13,187		211,915
Envestnet, Inc. (a)		9,842		137,296
EPAM Systems, Inc. (a)		2,305		41,720
EPIQ Systems, Inc.		14,621		186,856
ePlus, Inc.		1,796		74,247
ExactTarget, Inc. (a)		4,551		91,020
FalconStor Software, Inc. (a)		14,670		34,181
Guidance Software, Inc. (a)		6,670		79,173
Guidewire Software, Inc. (a)		9,521		282,964
ICG Group, Inc. (a)		17,285		197,568
iGate Corp. (a)		14,874		234,563

See Notes to Financial Statements.

22 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Computer Services Software & Systems (continued)
Imperva, Inc. (a)		4,543	$	143,241
Infoblox, Inc. (a)		3,667		65,896
Interactive Intelligence Group, Inc. (a)		6,837		229,313
Internap Network Services Corp. (a)		24,587		170,634
IntraLinks Holdings, Inc. (a)		16,989		104,822
Jive Software, Inc. (a)		7,575		110,065
Keynote Systems, Inc.		7,294		102,772
The KEYW Holding Corp. (a)		11,514		146,113
Limelight Networks, Inc. (a)		28,228		62,666
Lionbridge Technologies, Inc. (a)		26,241		105,489
LivePerson, Inc. (a)		25,612		336,542
LogMeIn, Inc. (a)		10,288		230,554
Manhattan Associates, Inc. (a)		9,459		570,756
Mantech International Corp., Class A (b)		10,722		278,129
Mattersight Corp. (a)		4,772		23,717
MeetMe, Inc. (b)		8,922		31,138
Mentor Graphics Corp. (a)(b)		43,365		738,072
Mercury Computer Systems, Inc. (a)		14,417		132,636
MicroStrategy, Inc., Class A (a)		3,969		370,625
Millennial Media, Inc. (a)		5,365		67,223
Moduslink Global Solutions, Inc. (a)		18,607		53,960
Monotype Imaging Holdings, Inc.		17,033		272,187
NetScout Systems, Inc. (a)		17,110		444,689
NIC, Inc.		29,991		490,053
OpenTable, Inc. (a)		10,501		512,449
Parametric Technology Corp. (a)		55,688		1,253,537
PDF Solutions, Inc. (a)		11,244		154,942
Pegasystems, Inc.		8,037		182,279
Perficient, Inc. (a)		14,846		174,886
Pervasive Software, Inc. (a)		6,172		54,993
Progress Software Corp. (a)		29,274		614,461
Proofpoint, Inc. (a)		2,958		36,413
PROS Holdings, Inc. (a)		10,177		186,137
QAD, Inc., Class A (a)		2,847		40,997
QLIK Technologies, Inc. (a)		39,765		863,696
RealNetworks, Inc. (a)		10,097		76,333
RealPage, Inc. (a)		16,699		360,197
Responsys, Inc. (a)		16,716		99,627
Saba Software, Inc. (a)		13,888		121,381
Sapiens International Corp. NV (a)		6,424		25,696
Sapient Corp. (a)		57,424		606,397
SciQuest, Inc. (a)		8,290		131,479
Shutterstock, Inc. (a)		2,381		61,906
Sourcefire, Inc. (a)		13,771		650,267
Spark Networks, Inc. (a)		5,301		41,348
SPS Commerce, Inc. (a)		5,742		214,004
SS&C Technologies Holdings, Inc. (a)		15,783		364,903
Support.com, Inc. (a)		22,787		95,250
Synacor, Inc. (a)		3,018		16,508
Synchronoss Technologies, Inc. (a)		12,889		271,829
SYNNEX Corp. (a)(b)		12,183		418,852
Syntel, Inc.		7,169		384,187
Tangoe, Inc. (a)		13,876		164,708
TechTarget, Inc. (a)		7,117		39,499
TNS, Inc. (a)		11,337		235,016
Tyler Technologies, Inc. (a)		14,014		678,838
Ultimate Software Group, Inc. (a)		12,400		1,170,684
Unisys Corp. (a)		20,391		352,764
United Online, Inc.		42,243		236,138
Unwired Planet, Inc. (a)		28,985		34,782
Common Stocks	Shares		Value
Computer Services Software & Systems (concluded)
VASCO Data Security International, Inc. (a)		13,162	$	107,402
Verint Systems, Inc. (a)(b)		10,124		297,241
VirnetX Holding Corp. (a)(b)		19,548		572,365
Virtusa Corp. (a)		8,635		141,873
Web.com Group, Inc. (a)		16,289		241,077
Websense, Inc. (a)		17,313		260,387
Yelp, Inc. (a)		3,953		74,514
Zillow, Inc. (a)		1,676		46,509
Zix Corp. (a)		28,282		79,190
				29,869,178
Computer Technology — 0.4%
Cray, Inc. (a)		17,224		274,723
Imation Corp. (a)		14,132		65,996
Immersion Corp. (a)		13,137		90,251
Insight Enterprises, Inc. (a)(b)		20,588		357,614
Intermec, Inc. (a)		27,900		275,094
OCZ Technology Group, Inc. (a)(b)		31,331		59,842
PC Connection, Inc.		4,000		46,000
Quantum Corp. (a)		109,516		135,800
Radisys Corp. (a)		10,630		31,677
Safeguard Scientifics, Inc. (a)		9,704		143,134
Silicon Graphics International Corp. (a)		14,893		152,355
STEC, Inc. (a)		16,633		82,001
Super Micro Computer, Inc. (a)		13,563		138,343
Synaptics, Inc. (a)		15,677		469,840
Telular Corp.		7,767		73,553
				2,396,223
Construction — 0.5%
Aegion Corp. (a)		18,267		405,345
EMCOR Group, Inc.		31,078		1,075,610
Granite Construction, Inc.		18,008		605,429
Great Lakes Dredge & Dock Corp.		27,584		246,325
Orion Marine Group, Inc. (a)		12,643		92,420
Primoris Services Corp.		13,902		209,086
Sterling Construction Co., Inc. (a)		7,599		75,534
Tutor Perini Corp. (a)		16,633		227,872
				2,937,621
Consumer Electronics — 0.2%
RealD, Inc. (a)(b)		20,165		226,050
Skullcandy, Inc. (a)(b)		7,547		58,791
TiVo, Inc. (a)		58,057		715,262
Universal Electronics, Inc. (a)		6,929		134,076
VOXX International Corp. (a)		8,296		55,832
XO Group, Inc. (a)		12,079		112,335
Zagg, Inc. (a)		11,919		87,724
				1,390,070
Consumer Lending — 0.8%
Asset Acceptance Capital Corp. (a)		7,551		33,979
Cash America International, Inc.		13,757		545,740
Credit Acceptance Corp. (a)		3,689		375,097
Encore Capital Group, Inc. (a)		10,285		314,927
Ezcorp, Inc. (a)		22,498		446,810
First Cash Financial Services, Inc. (a)		13,430		666,397
The First Marblehead Corp. (a)		24,003		18,648
MGIC Investment Corp. (a)		88,270		234,798
MoneyGram International, Inc. (a)		10,171		135,173
Nelnet, Inc., Class A		11,240		334,840

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 23

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Consumer Lending (concluded)
Netspend Holdings, Inc. (a)		14,492	$	171,295
Nicholas Financial, Inc.		4,819		59,756
Portfolio Recovery Associates, Inc. (a)(b)		8,000		854,880
Regional Management Corp. (a)		2,312		38,264
Tree.com, Inc.		2,914		52,539
World Acceptance Corp. (a)		4,897		365,120
				4,648,263
Consumer Services: Miscellaneous — 0.7%
Chuy’s Holdings, Inc. (a)		3,136		70,058
Coinstar, Inc. (a)		14,559		757,214
Collectors Universe, Inc.		2,524		25,316
Core-Mark Holdings Co., Inc.		5,290		250,482
Del Frisco’s Restaurant Group, Inc. (a)		2,670		41,625
Move, Inc. (a)		18,236		138,411
NutriSystem, Inc.		13,252		108,534
Sotheby’s		31,527		1,059,938
Steiner Leisure Ltd. (a)		7,065		340,462
WEX, Inc. (a)		18,084		1,362,991
				4,155,031
Containers & Packaging — 0.2%
AEP Industries, Inc. (a)		1,929		114,255
Berry Plastics Group, Inc. (a)		13,607		218,800
Graphic Packaging Holding Co. (a)		77,925		503,395
Myers Industries, Inc.		15,611		236,507
UFP Technologies, Inc. (a)		2,467		44,209
				1,117,166
Copper — 0.0%
Revett Minerals, Inc. (a)		11,432		32,238
Cosmetics — 0.1%
Elizabeth Arden, Inc. (a)		11,736		528,237
Inter Parfums, Inc.		7,661		149,083
Revlon, Inc., Class A (a)		5,199		75,386
				752,706
Diversified Financial Services — 0.7%
California First National Bancorp		1,115		16,669
DFC Global Corp. (a)		20,570		380,751
Duff & Phelps Corp.		14,753		230,442
Evercore Partners, Inc., Class A		13,365		403,489
FBR & Co. (a)		17,694		68,476
Fidus Investment Corp.		5,571		91,643
First California Financial Group, Inc. (a)		10,627		82,041
Greenhill & Co., Inc.		13,576		705,816
Intersections, Inc.		4,230		40,100
Main Street Capital Corp.		14,278		435,622
MidwestOne Financial Group, Inc.		3,144		64,483
Piper Jaffray Cos. (a)		7,105		228,284
Stifel Financial Corp. (a)(b)		25,039		800,497
Triangle Capital Corp.		12,772		325,558
				3,873,871
Diversified Manufacturing Operations — 0.5%
A.M. Castle & Co. (a)		7,774		114,822
Barnes Group, Inc.		25,260		567,340
Federal Signal Corp. (a)		28,853		219,571
Lydall, Inc. (a)		7,917		113,530
OSI Systems, Inc. (a)		9,257		592,818
Common Stocks	Shares		Value
Diversified Manufacturing Operations (concluded)
Raven Industries, Inc.		16,861	$	444,456
Standex International Corp.		5,872		301,175
Trimas Corp. (a)		14,987		419,036
				2,772,748
Diversified Materials & Processing — 0.8%
Belden, Inc.		21,183		953,023
Cabot Microelectronics Corp.		10,954		388,977
Clarcor, Inc.		23,402		1,118,148
Encore Wire Corp.		7,664		232,296
Harbinger Group, Inc. (a)		19,157		147,317
Hexcel Corp. (a)		46,343		1,249,407
Insteel Industries, Inc.		8,208		102,436
Koppers Holdings, Inc.		9,643		367,880
NL Industries, Inc.		3,120		35,724
Tredegar Corp.		11,259		229,909
Uranium Energy Corp. (a)(b)		39,671		101,558
				4,926,675
Diversified Media — 0.1%
Belo Corp., Class A		43,605		334,451
EW Scripps Co. (a)		13,914		150,410
				484,861
Diversified Retail — 0.5%
The Bon-Ton Stores, Inc.		5,872		71,169
Fred’s, Inc., CLass A		16,979		225,990
Geeknet, Inc. (a)		2,023		32,570
Gordmans Stores, Inc. (a)		3,999		60,065
HSN, Inc.		17,376		957,070
Overstock.com, Inc. (a)(b)		5,385		77,059
PriceSmart, Inc.		8,476		653,076
Saks, Inc. (a)(b)		51,217		538,291
Tuesday Morning Corp. (a)		19,492		121,825
Winmark Corp.		1,012		57,684
				2,794,799
Drug & Grocery Store Chains — 0.6%
Arden Group, Inc., Class A		521		46,874
Casey’s General Stores, Inc.		17,735		941,728
Harris Teeter Supermarkets		20,469		789,285
Ingles Markets, Inc., Class A		5,669		97,847
Nash Finch Co.		5,630		119,806
The Pantry, Inc. (a)		10,777		130,725
PetMed Express, Inc.		9,432		104,695
Rite Aid Corp. (a)		307,059		417,600
Spartan Stores, Inc.		10,002		153,631
SUPERVALU, Inc. (b)		99,200		245,024
Susser Holdings Corp. (a)		5,204		179,486
Village Super Market, Inc., Class A		3,925		128,976
Weis Markets, Inc.		5,193		203,410
				3,559,087
Education Services — 0.4%
American Public Education, Inc. (a)		8,384		302,746
Bridgepoint Education, Inc. (a)		8,164		84,089
Capella Education Co. (a)		5,904		166,670
Career Education Corp. (a)		24,263		85,406
Corinthian Colleges, Inc. (a)		36,549		89,180
Education Management Corp. (a)		12,320		53,962
Franklin Covey Co. (a)		6,413		82,728

See Notes to Financial Statements.

24 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Education Services (concluded)
Grand Canyon Education, Inc. (a)		18,580	$	436,073
HealthStream, Inc. (a)		9,079		220,710
K12, Inc. (a)		12,426		253,987
Lincoln Educational Services Corp.		10,659		59,584
National American University Holdings, Inc.		4,853		18,684
Rosetta Stone, Inc. (a)		5,003		61,737
Strayer Education, Inc.		5,538		311,069
Universal Technical Institute, Inc.		10,021		100,611
				2,327,236
Electronic Components — 0.8%
3D Systems Corp. (a)(b)		21,798		1,162,923
Acacia Research Corp. (a)		23,141		593,567
Checkpoint Systems, Inc. (a)		18,737		201,235
InvenSense, Inc. (a)		16,987		188,726
Kemet Corp. (a)		20,973		105,494
Methode Electronics, Inc.		17,212		172,636
Multi-Fineline Electronix, Inc. (a)		4,087		82,598
Neonode, Inc. (a)		10,334		50,223
NVE Corp. (a)		2,244		124,520
Park Electrochemical Corp.		9,652		248,346
Rogers Corp. (a)		7,555		375,181
Sanmina Corp. (a)		37,922		419,797
ScanSource, Inc. (a)		12,782		406,084
TTM Technologies, Inc. (a)		24,660		226,872
Universal Display Corp. (a)		18,505		474,098
Viasystems Group, Inc. (a)		1,733		21,143
				4,853,443
Electronic Entertainment — 0.1%
DTS, Inc. (a)		8,543		142,668
Glu Mobile, Inc. (a)(b)		25,667		58,778
Take-Two Interactive Software, Inc. (a)		36,432		401,116
				602,562
Electronics — 0.4%
Agilysys, Inc. (a)		6,684		55,945
American Science & Engineering, Inc.		3,914		255,232
Coherent, Inc.		11,001		556,871
Daktronics, Inc.		16,889		186,961
II-VI, Inc. (a)		24,450		446,701
iRobot Corp. (a)		12,796		239,797
Newport Corp. (a)(b)		17,717		238,294
Richardson Electronics Ltd.		5,908		66,878
Rofin-Sinar Technologies, Inc. (a)		13,276		287,824
				2,334,503
Energy Equipment — 0.3%
C&J Energy Services, Inc. (a)		20,721		444,258
Capstone Turbine Corp. (a)		133,145		118,499
Enphase Energy, Inc. (a)		3,675		13,414
First Solar, Inc. (a)		28,052		866,246
FuelCell Energy, Inc. (a)		70,516		64,663
Matador Resources Co. (a)		6,497		53,275
STR Holdings, Inc. (a)		14,231		35,862
SunPower Corp. (a)		18,588		104,465
				1,700,682
Common Stocks	Shares		Value
Energy Equipment & Services — 0.1%
Geospace Technologies Corp. (a)(b)		5,938	$	527,710
Pioneer Energy Services Corp. (a)		28,789		209,008
				736,718
Engineering & Contracting Services — 0.5%
Argan, Inc.		4,571		82,278
Dycom Industries, Inc. (a)		15,682		310,504
Exponent, Inc. (a)		6,202		346,258
Furmamite Corp. (a)		17,467		93,798
Hill International, Inc. (a)		10,600		38,796
Layne Christensen Co. (a)		9,231		224,036
Mastec, Inc. (a)		25,521		636,239
Michael Baker Corp.		3,997		99,645
Mistras Group, Inc. (a)		7,245		178,879
MYR Group, Inc. (a)		9,533		212,109
Tetra Tech, Inc. (a)		29,510		780,539
VSE Corp.		1,801		44,142
				3,047,223
Entertainment — 0.4%
Ascent Capital Group, Inc., Class A (a)		6,560		406,326
Carmike Cinemas, Inc. (a)		8,268		124,020
Lions Gate Entertainment Corp. (a)		39,493		647,685
Live Nation Entertainment, Inc. (a)(b)		65,169		606,723
Reading International, Inc., Class A (a)		7,494		45,039
Rentrak Corp. (a)		4,348		84,743
SHFL Entertainment, Inc. (a)		25,541		370,345
World Wrestling Entertainment, Inc.		12,658		99,872
				2,384,753
Environmental, Maintenance, & Security Service — 0.7%
ABM Industries, Inc.		25,005		498,850
The Brink’s Co.		21,995		627,517
G&K Services, Inc., Class A		8,793		300,281
The Geo Group, Inc.		32,834		925,919
Healthcare Services Group, Inc.		31,271		726,425
Mac-Gray Corp.		5,509		69,138
Standard Parking Corp. (a)		7,216		158,680
Swisher Hygiene, Inc. (a)		52,371		91,649
Unifirst Corp.		6,722		492,857
				3,891,316
Fertilizers — 0.0%
Rentech, Inc.		60,976		160,367
Financial Data & Systems — 0.5%
Advent Software, Inc. (a)		14,696		314,201
Cardtronics, Inc. (a)		20,510		486,907
Cass Information Systems, Inc.		4,721		199,226
Euronet Worldwide, Inc. (a)		23,588		556,677
Fair Isaac Corp.		15,947		670,253
Global Cash Access, Inc. (a)		14,592		114,401
Green Dot Corp., Class A (a)		11,303		137,897
Heartland Payment Systems, Inc.		18,046		532,357
Higher One Holdings, Inc. (a)(b)		14,984		157,931
				3,169,850
Food & Staples Retailing — 0.0%
Natural Grocers by Vitamin Cottage, Inc. (a)		3,273		62,482

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 25

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Foods — 1.3%
Annie’s, Inc. (a)		2,329	$	77,858
B&G Foods, Inc., Class A		24,479		693,000
The Chefs’ Warehouse, Inc. (a)		5,045		79,761
Chiquita Brands International, Inc. (a)		21,342		176,072
Diamond Foods, Inc. (b)		10,303		140,842
Dole Food Co., Inc. (a)		16,644		190,907
The Hain Celestial Group, Inc. (a)(b)		17,158		930,307
Inventure Foods, Inc. (a)		6,015		39,037
J&J Snack Foods Corp.		6,881		439,971
John B. Sanfilippo & Son, Inc.		3,657		66,484
Lancaster Colony Corp.		8,596		594,757
Lifeway Foods, Inc.		2,060		18,004
Medifast, Inc. (a)		6,469		170,717
Natures Sunshine Prods, Inc.		5,257		76,121
Nutraceutical International Corp.		4,014		66,392
Omega Protein Corp. (a)		8,946		54,750
Post Holdings, Inc. (a)		12,650		433,262
Roundy’s, Inc. (b)		9,528		42,400
Seneca Foods Corp. (a)		4,137		125,765
Smart Balance, Inc. (a)		27,464		354,286
Snyders-Lance, Inc.		20,553		495,533
Synutra International, Inc. (a)		8,096		37,484
Tootsie Roll Industries, Inc.		11,000		285,120
TreeHouse Foods, Inc. (a)		16,704		870,780
United Natural Foods, Inc. (a)		22,728		1,217,994
Westway Group, Inc. (a)		5,457		36,398
				7,714,002
Forest Products — 0.1%
Deltic Timber Corp.		5,057		357,125
Universal Forest Products, Inc.		9,170		348,827
				705,952
Forms & Bulk Printing Services — 0.3%
Consolidated Graphics, Inc. (a)		3,650		127,458
Deluxe Corp.		23,728		764,991
Ennis, Inc.		12,109		187,326
Innerworkings, Inc. (a)		14,775		203,599
Multi-Color Corp.		6,209		148,954
Quad/Graphics, Inc.		11,690		238,359
Schawk, Inc.		5,512		72,538
				1,743,225
Funeral Parlors & Cemeteries — 0.2%
Carriage Services, Inc.		7,447		88,396
Hillenbrand, Inc.		25,703		581,145
Matthews International Corp., Class A		13,077		419,772
Stewart Enterprises, Inc., Class A		34,929		266,857
				1,356,170
Gas Pipeline — 0.2%
Crosstex Energy, Inc.		19,461		279,071
SemGroup Corp. (a)		19,740		771,439
				1,050,510
Glass — 0.1%
Apogee Enterprises, Inc.		13,216		316,788
Gold — 0.3%
Coeur d’Alene Mines Corp. (a)		41,843		1,029,338
Gold Reserve, Inc. (a)		24,332		80,539
Common Stocks	Shares		Value
Gold (concluded)
Gold Resource Corp.		13,864	$	213,644
Golden Star Resources Ltd. (a)		120,288		221,330
Midway Gold Corp. (a)		59,782		83,097
Vista Gold Corp. (a)		26,968		72,813
				1,700,761
Health Care Facilities — 0.7%
Amsurg Corp. (a)		14,714		441,567
Assisted Living Concepts, Inc.		9,142		89,135
Capital Senior Living Corp. (a)		13,137		245,531
Emeritus Corp. (a)		14,307		353,669
The Ensign Group, Inc.		8,095		220,103
Five Star Quality Care, Inc. (a)		14,232		71,302
Hanger Orthopedic Group, Inc. (a)		15,869		434,176
HealthSouth Corp. (a)		44,455		938,445
Kindred Healthcare, Inc. (a)		24,588		266,042
National Healthcare Corp.		4,901		230,445
Select Medical Holdings Corp.		16,302		153,728
Skilled Healthcare Group, Inc., Class A (a)		8,804		56,081
Sunrise Senior Living, Inc. (a)		27,137		390,230
US Physical Therapy, Inc.		5,500		151,470
Vanguard Health Systems, Inc. (a)		14,727		180,406
				4,222,330
Health Care Management Services — 0.7%
Bioscript, Inc. (a)		20,488		220,656
Centene Corp. (a)		23,994		983,754
Computer Programs & Systems, Inc.		5,154		259,452
Magellan Health Services, Inc. (a)		12,717		623,133
Molina Healthcare, Inc. (a)		13,971		378,055
National Research Corp.		1,138		61,680
Triple-S Management Corp. (a)		8,966		165,602
Universal American Corp.		17,503		150,351
WellCare Health Plans, Inc. (a)		20,074		977,403
				3,820,086
Health Care Services — 1.6%
Acadia Healthcare Co., Inc. (a)(b)		12,564		293,118
Accretive Health, Inc. (a)		26,257		303,531
Air Methods Corp.		17,910		660,700
Almost Family, Inc.		3,846		77,920
Amedisys, Inc. (a)		14,015		157,949
AMN Healthcare Services, Inc. (a)		20,640		238,392
athenahealth, Inc. (a)		16,685		1,225,513
Chemed Corp.		8,958		614,429
Chindex International, Inc. (a)		5,381		56,501
Corvel Corp. (a)		2,929		131,307
Cross Country Healthcare, Inc. (a)		12,638		60,662
ePocrates, Inc. (a)		8,557		75,473
ExamWorks Group, Inc. (a)		13,604		190,320
Gentiva Health Services, Inc. (a)		14,146		142,167
Globus Medical, Inc., Class A (a)		4,605		48,306
Greenway Medical Technologies (a)		3,720		57,139
Healthways, Inc. (a)		15,574		166,642
HMS Holdings Corp. (a)(b)		40,004		1,036,904
IPC The Hospitalist Co., Inc. (a)		7,720		306,561
LHC Group, Inc. (a)		7,298		155,447
Medidata Solutions, Inc. (a)		10,337		405,107
MWI Veterinary Supply, Inc. (a)		5,922		651,420
Omnicell, Inc. (a)		15,571		231,541

See Notes to Financial Statements.

26 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Health Care Services (concluded)
PharMerica Corp. (a)(b)		13,721	$	195,387
Quality Systems, Inc.		18,496		321,091
Ryman Hospitality Properties		14,774		568,208
Team Health Holdings, Inc. (a)		13,170		378,901
WebMD Health Corp. (a)		23,585		338,209
				9,088,845
Health Care: Miscellaneous — 0.1%
MedAssets, Inc. (a)		27,094		454,367
The Providence Service Corp. (a)		6,081		103,316
				557,683
Home Building — 0.6%
Beazer Homes USA, Inc. (a)		11,496		194,167
Hovnanian Enterprises, Inc., Class A (a)(b)		49,147		344,029
KB Home		35,971		568,342
M/I Homes, Inc. (a)(b)		9,992		264,788
MDC Holdings, Inc.		17,848		656,093
Meritage Homes Corp. (a)		14,259		532,574
Ryland Group, Inc.		20,790		758,835
Standard-Pacific Corp. (a)		53,989		396,819
				3,715,647
Hotel/Motel — 0.2%
Bloomin’ Brands, Inc. (a)		8,543		133,613
Marcus Corp.		8,967		111,818
Morgans Hotel Group Co. (a)		10,081		55,849
Orient Express Hotels Ltd., Class A (a)		44,695		522,485
Red Lion Hotels Corp. (a)		6,278		49,533
				873,298
Household Appliances — 0.0%
National Presto Industries, Inc.		2,250		155,475
Household Equipment & Products — 0.2%
American Greetings Corp., Class A		14,709		248,435
Blyth, Inc.		4,890		76,040
Central Garden & Pet Co., Class A (a)		17,941		187,483
CSS Industries, Inc.		4,445		97,301
Helen of Troy Ltd. (a)(b)		14,739		492,135
Libbey, Inc. (a)		9,545		184,696
				1,286,090
Household Furnishings — 0.3%
American Woodmark Corp. (a)		4,523		125,830
Bassett Furniture Industries, Inc.		5,277		65,804
Ethan Allen Interiors, Inc.		11,275		289,880
Flexsteel Industries, Inc.		2,024		43,415
Hooker Furniture Corp.		5,005		72,723
Kirkland’s, Inc. (a)		6,195		65,605
La-Z-Boy, Inc.		24,112		341,185
Lifetime Brands, Inc.		4,516		47,915
Sealy Corp. (a)(b)		23,014		49,940
Select Comfort Corp. (a)		26,435		691,804
				1,794,101
Insurance: Life — 0.5%
American Equity Investment Life Holding Co.		27,578		336,727
Citizens, Inc. (a)(b)		17,803		196,723
CNO Financial Group, Inc.		97,189		906,773
FBL Financial Group, Inc., Class A		4,441		151,927
Independence Holding Co.		3,730		35,510
Common Stocks	Shares		Value
Insurance: Life (concluded)
Kansas City Life Insurance Co.		1,881	$	71,779
National Western Life Insurance Co., Class A		979		154,428
The Phoenix Cos., Inc. (a)		2,667		65,955
Primerica, Inc.		21,535		646,265
Symetra Financial Corp.		35,641		462,620
				3,028,707
Insurance: Multi-Line — 0.5%
Alterra Capital Holdings Ltd.		39,908		1,125,006
Crawford & Co., Class B		12,359		98,625
Eastern Insurance Holdings, Inc.		3,032		51,787
eHealth, Inc. (a)		9,216		253,256
Fortegra Financial Corp. (a)		3,345		29,737
Horace Mann Educators Corp.		18,421		367,683
Maiden Holdings Ltd.		23,516		216,112
Pico Holdings, Inc. (a)		10,622		215,308
Platinum Underwriters Holdings Ltd.		15,335		705,410
				3,062,924
Insurance: Property-Casualty — 1.4%
American Safety Insurance Holdings Ltd. (a)		4,236		80,145
Amerisafe, Inc. (a)		8,487		231,271
AmTrust Financial Services, Inc.		12,618		362,010
Argo Group International Holdings Ltd.		12,060		405,095
Baldwin & Lyons, Inc., Class B		4,338		103,505
Donegal Group, Inc., Class A		3,743		52,552
EMC Insurance Group, Inc.		2,177		51,987
Employers Holdings, Inc.		10,430		214,649
Enstar Group Ltd. (a)		3,918		438,738
First American Financial Corp.		49,554		1,193,756
Global Indemnity Plc (a)		4,781		105,804
Greenlight Capital Re Ltd. (a)		13,111		302,602
Hallmark Financial Services, Inc. (a)		6,614		62,105
Hilltop Holdings, Inc. (a)		18,546		251,113
Homeowners Choice, Inc.		3,976		82,661
Infinity Property & Casualty Corp.		5,526		321,834
Investors Title Co.		578		34,680
Meadowbrook Insurance Group, Inc.		23,786		137,483
Montpelier Re Holdings Ltd. (b)		23,449		536,044
National Interstate Corp.		2,977		85,797
Navigators Group, Inc. (a)		4,660		237,986
OneBeacon Insurance Group Ltd.		10,777		149,800
Radian Group, Inc.		62,293		380,610
RLI Corp.		9,942		642,850
Safety Insurance Group, Inc.		5,988		276,466
SeaBright Holdings, Inc.		9,351		103,516
Selective Insurance Group, Inc.		25,728		495,779
State Auto Financial Corp.		7,014		104,789
Stewart Information Services Corp.		8,572		222,872
Tower Group, Inc.		16,288		289,438
United Fire Group, Inc.		9,399		205,274
Universal Insurance Holdings, Inc.		9,518		41,689
				8,204,900
International Trade & Diversified Logistic — 0.0%
Global Sources Ltd. (a)		8,802		57,037
Internet & Catalog Retail — 0.0%
Kayak Software Corp. (a)		1,638		65,061
Vitacost.com, Inc. (a)		10,259		69,556
				134,617

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 27

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Internet Software & Services — 0.0%
E2open, Inc.		2,149	$	30,430
Leisure Time — 1.2%
Black Diamond, Inc. (a)		9,501		77,908
Bluegreen Corp. (a)		6,759		63,399
Callaway Golf Co.		30,225		196,463
Churchill Downs, Inc.		6,034		400,959
International Speedway Corp., Class A		12,840		354,641
Interval Leisure Group, Inc.		18,006		349,136
Johnson Outdoors, Inc. (a)		2,544		50,677
Life Time Fitness, Inc. (a)		19,934		980,952
Marriott Vacations Worldwide Corp. (a)		12,207		508,666
Orbitz Worldwide, Inc. (a)		10,579		28,775
Pool Corp.		22,082		934,510
Premier Exhibitions, Inc. (a)		11,852		32,119
Six Flags Entertainment Corp.		18,472		1,130,486
Smith & Wesson Holding Corp. (a)		30,240		255,226
Speedway Motorsports, Inc.		5,317		94,855
Steinway Musical Instruments, Inc. (a)		3,103		65,628
Sturm Ruger & Co., Inc. (b)		8,919		404,923
Town Sports International Holdings, Inc.		10,756		114,551
Vail Resorts, Inc.		16,707		903,682
West Marine, Inc. (a)		6,885		74,014
				7,021,570
Luxury Items — 0.0%
Movado Group, Inc.		8,199		251,545
Machinery: Agricultural — 0.2%
Alamo Group, Inc.		3,203		104,546
Lindsay Manufacturing Co.		5,918		474,150
Titan International, Inc.		22,230		482,836
Titan Machinery, Inc. (a)		7,859		194,117
				1,255,649
Machinery: Construction & Handling — 0.1%
Astec Industries, Inc.		9,318		310,569
Douglas Dynamics, Inc.		10,293		148,116
NACCO Industries, Inc., Class A		2,564		155,609
				614,294
Machinery: Engines — 0.1%
Briggs & Stratton Corp.		22,665		477,778
Machinery: Industrial — 1.4%
Actuant Corp., Class A		33,917		946,623
Altra Holdings, Inc.		12,511		275,868
Applied Industrial Technologies, Inc.		19,658		825,833
Chart Industries, Inc. (a)(b)		13,929		928,646
Columbus McKinnon Corp. (a)		8,942		147,722
DXP Enterprises, Inc. (a)		4,086		200,500
EnPro Industries, Inc. (a)		9,535		389,981
Flow International Corp. (a)		22,268		77,938
Graham Corp.		4,621		90,110
Hardinge, Inc.		5,437		54,044
Hyster-Yale Materials Handling, Inc.		5,098		248,782
John Bean Technologies Corp.		13,418		238,438
Kadant, Inc. (a)		5,402		143,207
Middleby Corp. (a)		8,711		1,116,837
MTS Systems Corp.		7,471		380,498
Omega Flex, Inc.		1,265		15,635
Proto Labs, Inc. (a)		2,349		92,598
Sauer-Danfoss, Inc.		5,470		291,934
Common Stocks	Shares		Value
Machinery: Industrial (concluded)
Tennant Co.		8,766	$	385,266
Twin Disc, Inc.		3,946		68,779
Woodward, Inc.		32,207		1,228,053
				8,147,292
Machinery: Specialty — 0.1%
Albany International Corp., Class A		12,825		290,871
Cascade Corp.		4,232		272,118
Hurco Cos., Inc. (a)		2,972		68,356
				631,345
Manufactured Housing — 0.0%
Cavco Industries, Inc. (a)		3,193		159,586
Medical & Dental Instruments & Supplies — 2.4%
Abiomed, Inc. (a)		15,605		210,043
Align Technology, Inc. (a)		33,486		929,236
Alphatec Holdings, Inc. (a)		25,854		42,659
AngioDynamics, Inc. (a)		11,367		124,923
Anika Therapeutics, Inc. (a)		5,600		55,664
Antares Pharma, Inc. (a)		49,879		190,039
AtriCure, Inc. (a)		6,904		47,638
Atrion Corp.		729		142,884
Cantel Medical Corp.		9,874		293,554
Cardiovascular Systems, Inc. (a)		7,847		98,480
Cerus Corp. (a)		25,484		80,529
Conceptus, Inc. (a)(b)		14,594		306,620
CONMED Corp.		13,161		367,850
CryoLife, Inc.		12,896		80,342
Derma Sciences, Inc. (a)		5,362		59,572
Endologix, Inc. (a)		25,787		367,207
Exactech, Inc. (a)		3,907		66,224
Hansen Medical, Inc. (a)		26,059		54,203
Heartware International, Inc. (a)		6,572		551,719
ICU Medical, Inc. (a)		5,817		354,430
Insulet Corp. (a)		22,246		472,060
Integra LifeSciences Holdings Corp. (a)		9,064		353,224
Invacare Corp.		14,771		240,767
Landauer, Inc.		4,382		268,222
MAKO Surgical Corp. (a)		18,372		236,448
Meridian Bioscience, Inc.		19,271		390,238
Merit Medical Systems, Inc. (a)		19,549		271,731
Navidea Biopharmaceuticals, Inc. (a)(b)		45,055		127,506
Neogen Corp. (a)(b)		10,969		497,115
NuVasive, Inc. (a)		20,108		310,870
OraSure Technologies, Inc. (a)		25,370		182,157
Orthofix International NV (a)		8,701		342,210
Owens & Minor, Inc.		29,592		843,668
PSS World Medical, Inc. (a)		23,493		678,478
Quidel Corp. (a)		13,101		244,596
Rochester Medical Corp. (a)		4,949		49,886
Rockwell Medical Technologies, Inc. (a)		9,753		78,512
Staar Surgical Co. (a)		16,991		103,645
Steris Corp.		26,934		935,418
SurModics, Inc. (a)		5,960		133,266
Symmetry Medical, Inc. (a)		17,023		179,082
Tornier NV (a)		7,418		124,548
Unilife Corp. (a)		37,579		85,304
Utah Medical Products, Inc.		1,467		52,885
Vascular Solutions, Inc. (a)		7,546		119,227
Volcano Corp. (a)		24,789		585,268

See Notes to Financial Statements.

28 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Medical & Dental Instruments & Supplies  (concluded)
West Pharmaceutical Services, Inc.		15,775	$	863,681
Wright Medical Group, Inc. (a)		18,295		384,012
Young Innovations, Inc.		2,555		100,692
				13,678,532
Medical Equipment — 1.0%
Abaxis, Inc.		10,103		374,821
Accuray, Inc. (a)		33,255		213,830
Affymetrix, Inc. (a)		33,145		105,070
Analogic Corp.		5,709		424,179
ArthroCare Corp. (a)		12,870		445,173
Cyberonics, Inc. (a)		12,833		674,117
Cynosure, Inc., Class A (a)		5,754		138,729
DexCom, Inc. (a)		31,934		434,622
EnteroMedics, Inc. (a)		12,573		35,204
Fluidigm Corp. (a)(b)		11,288		161,531
Greatbatch, Inc. (a)		10,948		254,431
Haemonetics Corp. (a)		23,576		962,844
Luminex Corp. (a)		19,473		326,367
Masimo Corp.		23,255		488,588
Merge Healthcare, Inc. (a)		27,642		68,276
Natus Medical, Inc. (a)		13,693		153,088
NxStage Medical, Inc. (a)		24,125		271,406
Palomar Medical Technologies, Inc. (a)		9,075		83,581
Solta Medical, Inc. (a)		32,064		85,611
Spectranetic Corp. (a)		15,992		236,202
Zeltiq Aesthetics, Inc. (a)		8,059		37,313
				5,974,983
Medical Services — 0.2%
Bio-Reference Labs, Inc. (a)		11,466		328,960
Parexel International Corp. (a)		27,880		824,969
				1,153,929
Metal Fabricating — 0.7%
Ampco-Pittsburgh Corp.		3,999		79,900
Compx International, Inc.		465		6,478
Dynamic Materials Corp.		6,298		87,542
The Eastern Co.		2,903		45,926
Haynes International, Inc.		5,725		296,956
Kaydon Corp.		14,951		357,777
L.B. Foster Co., Class A		4,233		183,882
Metals USA Holdings Corp.		5,401		94,464
Mueller Industries, Inc.		9,235		462,027
Mueller Water Products, Inc., Series A		73,107		410,130
NN, Inc. (a)		7,984		73,133
Northwest Pipe Co. (a)		4,324		103,171
RBC Bearings, Inc. (a)		10,318		516,622
Rexnord Corp. (a)		13,397		285,356
RTI International Metals, Inc. (a)		14,102		388,651
Worthington Industries, Inc.		24,361		633,142
				4,025,157
Metals & Minerals: Diversified — 0.7%
AMCOL International Corp.		11,748		360,429
General Moly, Inc. (a)		31,299		125,509
Globe Specialty Metals, Inc.		28,627		393,621
Hecla Mining Co.		132,791		774,172
Materion Corp.		9,497		244,833
McEwen Mining, Inc. (a)		100,935		386,581
Minerals Technologies, Inc.		16,483		658,001
Common Stocks	Shares		Value
Metals & Minerals: Diversified (concluded)
Oil-Dri Corp. of America		2,271	$	62,680
Paramount Gold and Silver Corp. (a)		60,457		140,260
SunCoke Energy, Inc. (a)		32,569		507,751
United States Lime & Minerals, Inc. (a)		787		37,083
Uranerz Energy Corp. (a)		30,659		42,616
US Antimony Corp. (a)		25,527		44,927
US Silica Holdings, Inc. (b)		5,497		91,965
				3,870,428
Miscellaneous Consumer Staples — 0.1%
Spectrum Brands Holdings, Inc. (a)		10,708		481,110
Office Supplies & Equipment — 0.6%
ACCO Brands Corp. (a)		52,617		386,209
AT Cross Co., Class A (a)		4,426		47,712
Electronics for Imaging, Inc. (a)		21,562		409,462
Herman Miller, Inc.		27,152		581,596
HNI Corp.		21,246		638,655
Kimball International, Inc., Class B		15,177		176,205
Knoll, Inc.		22,317		342,789
Steelcase, Inc., Class A		35,506		452,346
United Stationers, Inc.		18,909		585,990
				3,620,964
Offshore Drilling & Other Services — 0.1%
Hercules Offshore, Inc. (a)		73,879		456,572
Vantage Drilling Co. (a)		88,873		162,638
				619,210
Oil Well Equipment & Services — 1.4%
Basic Energy Services, Inc. (a)		14,366		163,916
Bolt Technology Corp.		3,962		56,538
Cal Dive International, Inc. (a)		45,131		78,077
Dawson Geophysical Co. (a)		3,684		97,184
Dril-Quip, Inc. (a)		18,713		1,366,985
Edgen Group, Inc. (a)		6,712		47,387
Exterran Holdings, Inc. (a)		30,191		661,787
Flotek Industries, Inc. (a)		23,049		281,198
Forbes Energy Services Ltd. (a)		6,579		16,645
Forum Energy Technologies, Inc. (a)		10,344		256,014
Global Geophysical Services, Inc. (a)		8,936		34,404
Gulf Island Fabrication, Inc.		6,709		161,217
Helix Energy Solutions Group, Inc. (a)		49,196		1,015,405
Hornbeck Offshore Services, Inc. (a)		16,445		564,721
ION Geophysical Corp. (a)(b)		61,436		399,948
Key Energy Services, Inc. (a)		70,382		489,155
Lufkin Industries, Inc.		15,652		909,851
Matrix Service Co. (a)		11,981		137,781
Mitcham Industries, Inc. (a)		5,934		80,880
Natural Gas Services Group, Inc. (a)		5,695		93,512
Newpark Resources, Inc. (a)		41,872		328,695
Parker Drilling Co. (a)		54,790		252,034
RigNet, Inc. (a)		5,641		115,246
Tesco Corp. (a)		14,158		161,260
Tetra Technologies, Inc. (a)		36,155		274,416
TGC Industries, Inc.		6,876		56,314
Willbros Group, Inc. (a)		18,203		97,568
				8,198,138
Oil, Gas & Consumable Fuels — 0.1%
Emerald Oil, Inc. (a)		7,470		39,143
EPL Oil & Gas, Inc. (a)		12,942		291,842
				330,985

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 29

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Oil: Crude Producers — 2.6%
Abraxas Petroleum Corp. (a)		38,555	$	84,435
Apco Oil and Gas International, Inc.		4,305		52,995
Approach Resources, Inc. (a)		15,502		387,705
Berry Petroleum Co., Class A		24,395		818,452
Bill Barrett Corp. (a)		22,417		398,798
Bonanza Creek Energy, Inc. (a)(b)		4,631		128,696
BPZ Resources, Inc. (a)(b)		48,687		153,364
Callon Petroleum Co. (a)		18,453		86,729
Carrizo Oil & Gas, Inc. (a)		18,422		385,388
Ceres, Inc. (a)		3,130		14,210
Clayton Williams Energy, Inc. (a)		2,746		109,840
Comstock Resources, Inc. (a)		22,373		338,504
Contango Oil & Gas Co.		5,933		251,322
Crimson Exploration, Inc. (a)		9,888		27,093
Diamondback Energy, Inc. (a)		6,630		126,766
Endeavour International Corp. (a)(b)		21,690		112,354
Energy XXI Bermuda Ltd.		36,728		1,182,274
Evolution Petroleum Corp. (a)(b)		7,613		61,894
Forest Oil Corp. (a)(b)		54,873		367,100
FX Energy, Inc. (a)		24,686		101,459
Gastar Exploration Ltd. (a)		26,210		31,714
Goodrich Petroleum Corp. (a)		12,112		112,884
Gulfport Energy Corp. (a)		25,934		991,197
Halcon Resources Corp. (a)		51,916		359,259
Harvest Natural Resources, Inc. (a)		18,296		165,945
Isramco, Inc. (a)		470		48,875
Kodiak Oil & Gas Corp. (a)		122,722		1,086,090
Magnum Hunter Resources Corp. (a)		68,702		274,121
McMoRan Exploration Co. (a)		47,292		759,037
Midstates Petroleum Co., Inc. (a)		11,322		78,009
Northern Oil and Gas, Inc. (a)		29,578		497,502
Oasis Petroleum, Inc. (a)		37,176		1,182,197
Panhandle Oil & Gas, Inc.		3,226		91,070
PDC Energy, Inc. (a)		13,950		463,280
Penn Virginia Corp.		25,730		113,469
Petroquest Energy, Inc. (a)		26,420		130,779
Quicksilver Resources, Inc. (a)		54,761		156,616
Resolute Energy Corp. (a)		22,386		181,998
Rex Energy Corp. (a)		20,109		261,819
Rosetta Resources, Inc. (a)		24,630		1,117,217
Sanchez Energy Corp. (a)		5,393		97,074
Saratoga Resources, Inc. (a)		9,520		33,701
Stone Energy Corp. (a)		23,038		472,740
Swift Energy Co. (a)		19,946		306,969
Synergy Resources Corp. (a)		18,164		97,904
Triangle Petroleum Corp. (a)		20,695		123,963
Vaalco Energy, Inc. (a)		26,942		233,048
W&T Offshore, Inc.		16,212		259,878
Warren Resources, Inc. (a)		33,488		94,101
ZaZa Energy Corp. (a)		11,631		23,844
				15,035,678
Oil: Integrated — 0.1%
Targa Resources, Inc.		13,479		712,230
Oil: Refining & Marketing — 0.4%
Adams Resources & Energy, Inc.		1,126		39,489
Alon USA Energy, Inc.		4,818		87,158
Arabian American Development Co. (a)		9,802		81,455
Clean Energy Fuels Corp. (a)(b)		31,149		387,805
Common Stocks	Shares		Value
Oil: Refining & Marketing (concluded)
CVR Energy, Inc. (a)		7,842	$	382,611
Delek US Holdings, Inc.		8,138		206,054
Miller Energy Resources, Inc. (a)		14,671		58,097
Renewable Energy Group, Inc. (a)		3,734		21,881
Western Refining, Inc.		26,864		757,296
				2,021,846
Paints & Coatings — 0.2%
Chase Corp.		2,905		54,033
Ferro Corp. (a)		40,478		169,198
H.B. Fuller Co.		23,236		809,078
				1,032,309
Paper — 0.6%
Boise, Inc.		46,771		371,829
Buckeye Technologies, Inc.		18,368		527,345
Clearwater Paper Corp. (a)		10,857		425,160
Kapstone Paper and Packaging Corp.		18,780		416,728
Neenah Paper, Inc.		7,348		209,198
P.H. Glatfelter Co.		19,868		347,293
Resolute Forest Products (a)		37,667		498,711
Schweitzer-Mauduit International, Inc.		14,513		566,442
Wausau Paper Corp.		20,472		177,288
				3,539,994
Personal Care — 0.1%
Female Health Co.		9,057		65,029
Orchids Paper Products Co.		2,653		53,644
PhotoMedex, Inc. (a)(b)		6,064		87,988
USANA Health Sciences, Inc. (a)(b)		2,773		91,315
WD-40 Co.		7,408		348,991
				646,967
Pharmaceuticals — 1.9%
Achillion Pharmaceuticals, Inc. (a)		27,792		222,892
Acura Pharmaceuticals, Inc. (a)		5,863		13,016
Akorn, Inc. (a)		26,467		353,599
Ampio Pharmaceuticals, Inc. (a)(b)		12,259		44,010
Anacor Pharmaceuticals, Inc. (a)		7,685		39,962
Auxilium Pharmaceuticals, Inc. (a)		22,517		417,240
Avanir Pharmaceuticals, Inc. (a)		63,547		167,129
BioCryst Pharmaceuticals, Inc. (a)		23,438		33,282
Biospecifics Technologies (a)		2,295		34,310
Cadence Pharmaceuticals, Inc. (a)		28,106		134,628
Cambrex Corp. (a)		13,815		157,215
Cempra, Inc. (a)		2,014		12,889
Corcept Therapeutics, Inc. (a)		23,709		33,904
Cumberland Pharmaceuticals, Inc. (a)		5,501		23,104
Depomed, Inc. (a)		25,927		160,488
Endocyte, Inc. (a)(b)		13,806		123,978
Hi-Tech Pharmacal Co., Inc.		4,984		174,340
Impax Laboratories, Inc. (a)		31,196		639,206
Infinity Pharmaceuticals, Inc. (a)		13,214		462,490
Ironwood Pharmaceuticals, Inc. (a)		35,080		389,037
Isis Pharmaceuticals, Inc. (a)(b)		46,763		489,141
Jazz Pharmaceuticals Plc (a)		19,353		1,029,579
Lannett Co., Inc. (a)		7,608		37,736
MAP Pharmaceuticals, Inc. (a)		13,142		206,461
The Medicines Co. (a)		25,662		615,118
Obagi Medical Products, Inc. (a)		8,551		116,208

See Notes to Financial Statements.

30 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Pharmaceuticals (concluded)
Optimer Pharmaceuticals, Inc. (a)		21,973	$	198,856
Pacira Pharmaceuticals, Inc. (a)		8,619		150,574
Pain Therapeutics, Inc. (a)		17,953		48,653
Pernix Therapeutics Holdings, Inc. (a)		4,120		31,930
Pharmacyclics, Inc. (a)		25,350		1,467,765
Pozen, Inc. (a)		12,495		62,600
Prestige Brands Holdings, Inc. (a)		23,394		468,582
Questcor Pharmaceuticals, Inc. (b)		25,061		669,630
Sagent Pharmaceuticals, Inc. (a)		4,410		70,957
Santarus, Inc. (a)		25,582		280,890
Sciclone Pharmaceuticals, Inc. (a)		26,644		114,836
SIGA Technologies, Inc. (a)(b)		16,565		43,400
Spectrum Pharmaceuticals, Inc.		27,762		310,657
Supernus Pharmaceuticals, Inc. (a)		2,025		14,519
Vical, Inc. (a)		35,693		103,867
Vivus, Inc. (a)(b)		46,471		623,641
Xenoport, Inc. (a)		20,043		155,734
Zogenix, Inc. (a)		26,241		34,900
				10,982,953
Plastics — 0.1%
A. Schulman, Inc.		13,728		397,151
Spartech Corp. (a)		14,409		130,690
				527,841
Power Transmission Equipment — 0.2%
Advanced Energy Industries, Inc. (a)		18,438		254,629
Generac Holdings, Inc. (a)		11,529		395,560
Global Power Equipment Group, Inc.		7,986		136,960
Maxwell Technologies, Inc. (a)		13,582		112,595
Powell Industries, Inc. (a)		4,131		171,561
Power-One, Inc. (a)		31,248		128,429
Vicor Corp. (a)		9,270		50,243
				1,249,977
Precious Metals & Minerals — 0.2%
Golden Minerals Co. (a)(b)		15,599		71,599
Horsehead Holding Corp. (a)		20,394		208,223
Stillwater Mining Co. (a)(b)		53,943		689,392
				969,214
Printing & Copying Services — 0.1%
Casella Waste Systems, Inc. (a)		17,449		76,427
Cenveo, Inc. (a)(b)		25,175		67,972
VistaPrint NV (a)(b)		15,884		521,948
				666,347
Producer Durables: Miscellaneous — 0.1%
Blount International, Inc. (a)		22,690		358,956
Park-Ohio Holdings Corp. (a)		4,028		85,836
				444,792
Production Technology Equipment — 1.3%
ATMI, Inc. (a)		14,839		309,838
Axcelis Technologies, Inc. (a)		49,958		69,442
Brooks Automation, Inc.		30,916		248,874
Cognex Corp.		19,940		734,191
Cohu, Inc.		11,319		122,698
Cymer, Inc. (a)		14,415		1,303,548
Electro Scientific Industries, Inc.		10,641		105,878
Entegris, Inc. (a)		63,956		587,116
Common Stocks	Shares		Value
Production Technology Equipment (concluded)
FEI Co.		17,650	$	978,869
GSI Group, Inc. (a)		13,546		117,308
Intevac, Inc. (a)		10,570		48,305
LTX-Credence Corp. (a)		22,793		149,522
Mattson Technology, Inc. (a)		23,752		19,952
MKS Instruments, Inc.		24,450		630,321
Nanometrics, Inc. (a)		10,884		156,947
Photronics, Inc. (a)		28,160		167,834
Rudolph Technologies, Inc. (a)(b)		14,927		200,768
Tessera Technologies, Inc.		24,175		396,953
Ultra Clean Holdings, Inc. (a)		12,781		62,755
Ultratech, Inc. (a)(b)		12,185		454,500
Veeco Instruments, Inc. (a)		18,103		534,401
				7,400,020
Publishing — 0.3%
Courier Corp.		4,443		48,873
Daily Journal Corp. (a)		427		39,519
The Dolan Co. (a)		14,376		55,923
Journal Communications, Inc., Class A (a)		19,735		106,766
Martha Stewart Living Omnimedia, Inc., Class A		12,884		31,566
McClatchy Co., Class A (a)		27,194		88,924
Meredith Corp. (b)		16,880		581,516
The New York Times Co., Class A (a)		63,391		540,725
Scholastic Corp.		12,077		356,996
Value Line, Inc.		607		5,445
				1,856,253
Radio & TV Broadcasters — 0.2%
Beasley Broadcasting Group, Inc., Class A		1,845		9,022
Central European Media Enterprises Ltd. (a)		17,132		105,019
Crown Media Holdings, Inc., Class A (a)		16,070		29,730
Cumulus Media, Inc., Class A (a)(b)		28,888		77,131
Entercom Communications Corp. (a)		11,203		78,197
Entravision Communications Corp., Class A		23,679		39,307
Fisher Communications, Inc.		4,080		110,119
Lin TV Corp., Class A (a)		14,212		107,016
Nexstar Broadcasting Group, Inc., Class A (a)		5,200		55,068
Outdoor Channel Holdings, Inc.		6,893		52,387
Saga Communications, Inc.		1,632		75,888
Salem Communications Corp., Class A		4,760		25,990
Sinclair Broadcast Group, Inc., Class A		23,453		295,977
				1,060,851
Railroad Equipment — 0.1%
American Railcar Industries, Inc.		4,395		139,453
Freightcar America, Inc.		5,532		124,028
Greenbrier Cos., Inc. (a)		10,659		172,356
				435,837
Railroads — 0.3%
Genesee & Wyoming, Inc., Class A (a)		20,629		1,569,454
Real Estate — 0.2%
AV Homes, Inc. (a)		4,624		65,753
Consolidated-Tomoka Land Co.		1,963		60,873
Forestar Group, Inc. (a)		16,149		279,862
Griffin Land & Nurseries, Inc.		1,242		33,534
HFF, Inc., Class A		15,398		229,430
Kennedy-Wilson Holdings, Inc.		20,044		280,215
Market Leader, Inc. (a)		10,137		66,397

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 31

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Real Estate (concluded)
Tejon Ranch Co. (a)		6,132	$	172,187
Thomas Properties Group, Inc.		15,048		81,410
				1,269,661
Real Estate Investment Trusts (REITs) — 7.9%
Acadia Realty Trust		23,691		594,170
AG Mortgage Investment Trust, Inc.		10,571		248,207
Agree Realty Corp.		5,444		145,845
Alexander’s, Inc.		978		323,522
American Assets Trust, Inc.		15,472		432,133
American Capital Mortgage Investment Corp.		17,233		406,182
American Realty Capital Trust, Inc.		74,142		856,340
AmREIT, Inc., Class B		1,878		32,208
Anworth Mortgage Asset Corp. (b)		65,126		376,428
Apollo Commercial Real Estate Finance, Inc.		11,093		180,039
Ares Commercial Real Estate Corp.		3,608		59,243
ARMOUR Residential REIT, Inc.		138,872		898,502
Ashford Hospitality Trust, Inc.		25,021		262,971
Associated Estates Realty Corp. (b)		23,199		373,968
Campus Crest Communities, Inc.		17,912		219,601
CapLease, Inc.		31,224		173,918
Capstead Mortgage Corp.		46,509		533,458
Cedar Realty Trust, Inc.		28,315		149,503
Chatham Lodging Trust		6,511		100,139
Chesapeake Lodging Trust		18,526		386,823
Colonial Properties Trust		41,113		878,585
Colony Financial, Inc.		24,561		478,939
Coresite Realty Corp.		9,561		264,457
Cousins Properties, Inc.		43,022		359,234
CreXus Investment Corp.		31,652		387,737
CubeSmart		57,650		839,960
CYS Investments, Inc.		82,087		969,447
DCT Industrial Trust, Inc. (b)		115,832		751,750
DiamondRock Hospitality Co.		87,947		791,523
DuPont Fabros Technology, Inc.		28,643		692,015
Dynex Capital Corp.		25,323		239,049
Eastgroup Properties, Inc. (b)		13,338		717,718
Education Realty Trust, Inc.		52,930		563,175
EPR Properties		21,946		1,011,930
Equity One, Inc.		25,919		544,558
Excel Trust, Inc.		20,735		262,712
FelCor Lodging Trust, Inc. (a)		58,085		271,257
First Industrial Realty Trust, Inc. (a)(b)		45,924		646,610
First Potomac Realty Trust		23,900		295,404
Franklin Street Properties Corp.		34,244		421,544
Getty Realty Corp.		12,018		217,045
Gladstone Commercial Corp.		5,207		93,466
Glimcher Realty Trust		65,187		722,924
Government Properties Income Trust		20,311		486,855
Gramercy Capital Corp. (a)		21,895		64,371
Gyrodyne Co. of America, Inc.		515		37,111
Healthcare Realty Trust, Inc.		40,865		981,169
Hersha Hospitality Trust		80,812		404,060
Highwoods Properties, Inc. (b)		26,706		893,316
Hudson Pacific Properties, Inc.		16,735		352,439
Inland Real Estate Corp.		36,118		302,669
InvesCo. Mortgage Capital, Inc.		54,158		1,067,454
Investors Real Estate Trust		42,693		372,710
iStar Financial, Inc. (a)		39,380		320,947
JAVELIN Mortgage Investment Corp.		3,338		63,722
Common Stocks	Shares		Value
Real Estate Investment Trusts (REITs) (concluded)
Kite Realty Group Trust		30,833	$	172,356
KYTHERA Biopharmaceuticals, Inc. (a)		1,642		49,818
LaSalle Hotel Properties		40,017		1,016,032
Lexington Realty Trust (b)		61,947		647,346
LTC Properties, Inc. (b)		14,297		503,111
Medical Properties Trust, Inc.		63,669		761,481
Monmouth Real Estate Investment Corp., Class A		18,917		195,980
National Health Investors, Inc.		11,508		650,547
New York Mortgage Trust, Inc. (b)		23,586		149,064
NorthStar Realty Finance Corp.		76,448		538,194
Omega Healthcare Investors, Inc. (b)		52,470		1,251,409
One Liberty Properties, Inc.		5,502		111,636
Parkway Properties, Inc.		10,092		141,187
Pebblebrook Hotel Trust		28,373		655,416
Pennsylvania Real Estate Investment Trust		26,041		459,363
PennyMac Mortgage Investment Trust (d)		27,689		700,255
Potlatch Corp.		18,908		741,005
PS Business Parks, Inc.		8,616		559,868
RAIT Financial Trust		23,561		133,120
Ramco-Gershenson Properties Trust		21,602		287,523
Redwood Trust, Inc. (b)		36,984		624,660
Resource Capital Corp.		46,765		261,884
Retail Opportunity Investments Corp.		24,466		314,633
RLJ Lodging Trust		49,901		966,582
Rouse Properties, Inc.		10,257		173,548
Sabra Healthcare REIT, Inc.		17,244		374,540
Saul Centers, Inc.		3,524		150,792
Select Income REIT		5,432		134,551
Sovran Self Storage, Inc.		13,586		843,691
Spirit Realty Capital, Inc.		15,488		275,377
STAG Industrial, Inc.		14,645		263,171
Starwood Property Trust, Inc.		63,343		1,454,355
Strategic Hotel Capital, Inc. (a)		84,582		541,325
Summit Hotel Properties, Inc.		19,467		184,937
Sun Communities, Inc.		13,934		555,827
Sunstone Hotel Investors, Inc. (a)(b)		63,816		683,469
Terreno Realty Corp.		6,112		94,369
Two Harbors Investment Corp.		137,941		1,528,386
UMH Properties, Inc.		6,528		67,434
Universal Health Realty Income Trust		5,531		279,924
Urstadt Biddle Properties, Inc., Class A		11,549		227,284
Walter Investment Management Corp. (a)		16,644		716,025
Washington Real Estate Investment Trust		31,138		814,259
Western Asset Mortgage Capital Corp.		8,783		173,640
Whitestone REIT		6,576		92,393
Winthrop Realty Trust		13,719		151,595
				46,194,424
Recreational Vehicles & Boats — 0.3%
Arctic Cat, Inc. (a)		5,882		196,400
Brunswick Corp.		41,594		1,209,970
Drew Industries, Inc.		8,961		288,992
Marine Products Corp.		4,795		27,427
Winnebago Industries, Inc. (a)		13,626		233,413
				1,956,202
Rental & Leasing Services: Consumer — 0.4%
Amerco, Inc.		4,023		510,157
Avis Budget Group, Inc. (a)(b)		49,427		979,643

See Notes to Financial Statements.

32 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Rental & Leasing Services: Consumer (concluded)
Rent-A-Center, Inc.		27,568	$	947,236
Zipcar, Inc. (a)		12,562		103,511
				2,540,547
Restaurants — 1.6%
AFC Enterprises, Inc. (a)		11,291		295,034
Biglari Holdings, Inc. (a)		555		216,461
BJ’s Restaurants, Inc. (a)(b)		11,404		375,192
Bob Evans Farms, Inc.		13,545		544,509
Bravo Brio Restaurant Group, Inc. (a)		9,029		121,259
Buffalo Wild Wings, Inc. (a)(b)		8,634		628,728
Caribou Coffee Co., Inc. (a)		9,806		158,759
Carrols Restaurant Group, Inc. (a)		6,953		41,579
CEC Entertainment, Inc.		8,467		281,020
The Cheesecake Factory, Inc.		25,129		822,221
Cracker Barrel Old Country Store, Inc.		8,934		574,099
Denny’s Corp. (a)		44,314		216,252
DineEquity, Inc. (a)		7,106		476,102
Domino’s Pizza, Inc.		26,920		1,172,366
Einstein Noah Restaurant Group, Inc.		2,843		34,713
Ellie Mae, Inc. (a)		11,730		325,508
Fiesta Restaurant Group, Inc. (a)		7,472		114,471
Frisch’s Restaurants, Inc.		1,392		25,752
Ignite Restaurant Group, Inc. (a)		3,050		39,650
Jack in the Box, Inc. (a)		20,534		587,272
Jamba, Inc. (a)		35,922		80,465
Krispy Kreme Doughnuts, Inc. (a)		27,695		259,779
Luby’s, Inc. (a)		9,261		61,956
Nathan’s Famous, Inc. (a)		1,188		40,036
Papa John’s International, Inc. (a)		8,326		457,430
Red Robin Gourmet Burgers, Inc. (a)(b)		6,814		240,466
Ruby Tuesday, Inc. (a)		29,725		233,639
Ruth’s Hospitality Group, Inc. (a)		16,414		119,330
Sonic Corp. (a)(b)		27,725		288,617
Texas Roadhouse, Inc., Class A		29,024		487,603
				9,320,268
Scientific Instruments: Control & Filter — 0.8%
Brady Corp.		22,835		762,689
CIRCOR International, Inc.		8,079		319,848
Energy Recovery, Inc. (a)		20,459		69,561
ESCO Technologies, Inc.		12,427		464,894
The Gorman-Rupp Co.		7,052		210,361
Mine Safety Appliances Co.		12,869		549,635
PMFG, Inc. (a)		9,697		88,146
Robbins & Myers, Inc.		17,921		1,065,403
Sun Hydraulics, Inc.		9,650		251,672
Thermon Group Holdings, Inc. (a)		6,825		153,767
Watts Water Technologies, Inc., Class A		13,082		562,395
				4,498,371
Scientific Instruments: Electrical — 0.7%
A.O. Smith Corp.		18,139		1,144,027
American Superconductor Corp. (a)		18,474		48,402
AZZ, Inc.		11,756		451,783
Coleman Cable, Inc.		3,852		35,708
EnerSys (a)		22,326		840,127
Franklin Electric Co., Inc.		10,905		677,964
Houston Wire & Cable Co.		8,251		101,240
Littelfuse, Inc.		10,083		622,222
Common Stocks	Shares		Value
Scientific Instruments: Electrical (concluded)
Preformed Line Products Co.		1,081	$	64,233
Taser International, Inc. (a)		25,538		228,309
				4,214,015
Scientific Instruments: Gauges & Meters — 0.2%
Badger Meter, Inc.		6,768		320,871
Faro Technologies, Inc. (a)		7,872		280,873
Measurement Specialties, Inc. (a)		7,019		241,173
Mesa Laboratories, Inc.		1,172		58,729
Vishay Precision Group, Inc. (a)		5,602		74,058
Zygo Corp. (a)		7,554		118,598
				1,094,302
Scientific Instruments: Pollution Control — 0.3%
ADA-ES, Inc. (a)		4,212		71,099
Ceco Environmental Corp.		3,310		32,935
Darling International, Inc. (a)		54,737		877,981
EnergySolutions, Inc. (a)		37,021		115,506
Heritage-Crystal Clean, Inc. (a)		3,593		53,931
Met-Pro Corp.		6,776		65,659
Metalico, Inc. (a)		18,672		36,597
Team, Inc. (a)		9,249		351,832
TRC Cos., Inc. (a)		7,021		40,862
US Ecology, Inc.		8,534		200,890
				1,847,292
Securities Brokerage & Services — 0.4%
BGC Partners, Inc.		46,440		160,682
FXCM, Inc.		11,027		111,042
Gain Capital Holdings, Inc.		7,364		30,119
GFI Group, Inc.		32,715		105,997
Gladstone Investment Corp.		12,382		86,179
International FCStone, Inc. (a)(b)		6,418		111,737
Investment Technology Group, Inc. (a)		18,185		163,665
KBW, Inc.		16,282		249,115
Knight Capital Group, Inc., Class A (a)		84,778		297,571
Ladenburg Thalmann Financial Services, Inc. (a)		47,948		67,127
MarketAxess Holdings, Inc.		17,042		601,582
SWS Group, Inc. (a)		13,793		72,965
				2,057,781
Semiconductors & Components — 2.2%
Aeroflex Holding Corp. (a)		9,176		64,232
Alpha & Omega Semiconductor Ltd. (a)		7,838		65,839
Amkor Technology, Inc. (a)(b)		34,220		145,435
Anadigics, Inc. (a)		33,397		84,160
Applied Micro Circuits Corp. (a)		30,465		255,906
Audience, Inc. (a)		2,803		29,123
AXT, Inc. (a)		14,847		41,720
Cavium, Inc. (a)		23,156		722,699
Ceva, Inc. (a)		10,805		170,179
Cirrus Logic, Inc. (a)		30,044		870,375
Diodes, Inc. (a)		16,546		287,073
DSP Group, Inc. (a)		10,152		58,476
Entropic Communications, Inc. (a)		41,039		217,096
Exar Corp. (a)		17,232		153,365
Formfactor, Inc. (a)(b)		23,102		105,345
GT Advanced Technologies, Inc. (a)		55,186		166,662
Hittite Microwave Corp. (a)		14,665		910,696
Inphi Corp. (a)		10,902		104,441

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 33

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Semiconductors & Components (concluded)
Integrated Device Technology, Inc. (a)		66,255	$	483,662
Integrated Silicon Solutions, Inc. (a)		12,657		113,913
Intermolecular, Inc. (a)		6,340		56,426
International Rectifier Corp. (a)(b)		32,231		571,456
Intersil Corp., Class A		59,477		493,064
IXYS Corp.		11,399		104,187
Kopin Corp. (a)		31,089		103,526
Lattice Semiconductor Corp. (a)		54,973		219,342
M/A-COM Technology Solutions Holdings, Inc. (a)		2,840		42,515
MaxLinear, Inc., Class A (a)		10,364		52,027
MEMC Electronic Materials, Inc. (a)		107,565		345,284
Micrel, Inc.		22,586		214,567
Microsemi Corp. (a)		41,339		869,773
Mindspeed Technologies, Inc. (a)		17,027		79,686
MIPS Technologies, Inc. (a)		22,271		174,159
Monolithic Power Systems, Inc. (b)		14,214		316,688
MoSys, Inc. (a)		15,815		55,036
Omnivision Technologies, Inc. (a)(b)		24,394		343,468
Pericom Semiconductor Corp. (a)		10,957		87,985
PLX Technology, Inc. (a)		20,481		74,346
Power Integrations, Inc.		13,215		444,156
QuickLogic Corp. (a)		20,978		45,522
Rambus, Inc. (a)		51,491		251,276
RF Micro Devices, Inc. (a)(b)		129,641		580,792
Rubicon Technology, Inc. (a)		8,012		48,953
Semtech Corp. (a)		30,508		883,207
Sigma Designs, Inc. (a)		15,262		78,599
Silicon Image, Inc. (a)(b)		38,798		192,438
Spansion, Inc., Class A (a)		22,368		311,139
Supertex, Inc.		4,766		83,643
TriQuint Semiconductor, Inc. (a)		78,560		380,230
Volterra Semiconductor Corp. (a)(b)		11,811		202,795
				12,756,682
Semiconductors & Semiconductor Equipment — 0.0%
Ambarella, Inc. (a)		2,773		30,919
Shipping — 0.3%
Frontline Ltd. (b)		24,152		78,735
GasLog Ltd.		11,442		142,224
Genco Shipping & Trading Ltd. (a)		14,389		50,218
Gulfmark Offshore, Inc., Class A		12,489		430,246
International Shipholding Corp.		2,493		41,085
Knightsbridge Tankers Ltd.		11,622		61,015
Nordic American Tankers Ltd.		24,757		216,624
Rand Logistics, Inc. (a)		8,064		52,416
Scorpio Tankers, Inc. (a)		26,078		185,414
Ship Finance International Ltd.		22,774		378,732
Teekay Tankers Ltd., Class A		29,591		85,814
				1,722,523
Software — 0.1%
Comverse, Inc. (a)		10,195		290,863
Eloqua, Inc. (a)		4,326		102,050
Exa Corp. (a)		2,867		27,896
FleetMatics Group Plc (a)		4,091		102,930
Qualys, Inc. (a)		3,934		58,184
Trulia, Inc. (a)		3,225		52,374
				634,297
Common Stocks	Shares		Value
Specialty Retail — 3.3%
1-800-FLOWERS.COM, Inc., Class A (a)		11,902	$	43,680
America’s Car-Mart, Inc. (a)		3,685		149,316
ANN, Inc. (a)		22,711		768,540
Asbury Automotive Group, Inc. (a)		12,962		415,173
Aéropostale, Inc. (a)		37,837		492,259
Barnes & Noble, Inc. (a)		13,184		198,947
bebe Stores, Inc.		17,447		69,613
Big 5 Sporting Goods Corp.		7,769		101,774
Blue Nile, Inc. (a)		5,766		221,991
Body Central Corp. (a)		7,564		75,337
Brown Shoe Co., Inc.		19,935		366,206
The Buckle, Inc. (b)		12,918		576,659
Cabela’s, Inc., Class A (a)		21,712		906,476
CafePress, Inc. (a)		2,129		12,284
Casual Male Retail Group, Inc. (a)		19,622		82,412
The Cato Corp., Class A		12,737		349,376
The Children’s Place Retail Stores, Inc. (a)		11,295		500,256
Citi Trends, Inc. (a)		6,917		95,178
Conn’s, Inc. (a)		7,839		240,500
Destination Maternity Corp.		6,211		133,909
Express, Inc. (a)		41,670		628,800
The Finish Line, Inc., Class A		23,645		447,600
Five Below, Inc. (a)		5,154		165,134
Francesca’s Holdings Corp. (a)(b)		16,198		420,500
Genesco, Inc. (a)		11,385		626,175
Group 1 Automotive, Inc.		10,650		660,193
Haverty Furniture Cos., Inc.		8,873		144,719
hhgregg, Inc. (a)		7,187		50,453
Hibbett Sports, Inc. (a)		12,250		645,575
Hot Topic, Inc.		19,647		189,594
Jos. A. Bank Clothiers, Inc. (a)(b)		12,943		551,113
Lithia Motors, Inc., Class A		10,104		378,092
Lumber Liquidators Holdings, Inc. (a)		12,816		677,069
MarineMax, Inc. (a)		9,535		85,243
Mattress Firm Holding Corp. (a)		5,143		126,158
The Men’s Wearhouse, Inc.		23,712		738,866
Monro Muffler, Inc.		14,376		502,729
New York & Co. (a)		12,637		48,147
Office Depot, Inc. (a)(b)		132,226		433,701
OfficeMax, Inc.		40,281		393,143
Orchard Supply Hardware Stores Corp., Class A (a)		785		5,817
Penske Automotive Group, Inc.		19,734		593,796
The Pep Boys—Manny, Moe & Jack		24,504		240,874
Perfumania Holdings, Inc. (a)		2,341		11,518
Pier 1 Imports, Inc.		45,232		904,640
RadioShack Corp. (b)		46,382		98,330
Regis Corp.		26,791		453,304
Restoration Hardware Holdings, Inc. (a)		2,534		85,472
Rue21, Inc. (a)		7,180		203,840
Shoe Carnival, Inc.		6,619		135,623
Shutterfly, Inc. (a)(b)		16,657		497,545
Sonic Automotive, Inc.		19,860		414,875
Stage Stores, Inc.		14,274		353,710
Stamps.com, Inc. (a)(b)		6,494		163,649
Stein Mart, Inc.		12,731		95,992
Systemax, Inc.		5,066		48,887
Teavana Holdings, Inc. (a)		4,138		64,139
Tilly’s, Inc., Class A (a)		4,295		57,940
Vitamin Shoppe, Inc. (a)(b)		13,683		784,857

See Notes to Financial Statements.

34 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Specialty Retail (concluded)
The Wet Seal, Inc., Class A (a)		41,900	$	115,644
Zumiez, Inc. (a)		10,196		197,904
				19,241,246
Steel — 0.2%
AK Steel Holding Corp.		63,479		292,004
Carbonite, Inc. (a)(b)		5,311		49,127
Handy & Harman Ltd. (a)		2,390		36,017
Olympic Steel, Inc.		4,210		93,209
Schnitzer Steel Industries, Inc., Class A		11,753		356,469
Shiloh Industries, Inc.		2,654		27,336
TMS International Corp. (a)		5,766		72,190
Universal Stainless & Alloy Products, Inc. (a)		3,181		116,965
				1,043,317
Synthetic Fibers & Chemicals — 0.0%
Zoltek Cos., Inc. (a)		12,799		99,192
Technology: Miscellaneous — 0.3%
Acorn Energy, Inc. (b)		8,398		65,588
Benchmark Electronics, Inc. (a)		26,756		444,685
CTS Corp.		15,801		167,965
Fabrinet (a)(b)		10,277		135,040
Key Tronic Corp. (a)		4,823		49,387
Pendrell Corp. (a)		74,415		94,507
Plexus Corp. (a)		16,286		420,179
Vocus, Inc. (a)		9,619		167,178
				1,544,529
Telecommunications Equipment — 0.2%
Arris Group, Inc. (a)		52,587		785,650
CalAmp Corp. (a)		13,409		111,563
Symmetricom, Inc. (a)		19,252		111,084
Tessco Technologies, Inc.		2,479		54,885
Ubiquiti Networks, Inc. (b)		4,872		59,146
Vocera Communications, Inc. (a)		3,310		83,081
				1,205,409
Textile Products — 0.1%
Culp, Inc.		4,004		60,100
Interface, Inc.		27,276		438,598
Unifi, Inc. (a)		6,506		84,643
				583,341
Textiles Apparel & Shoes — 1.4%
Cherokee, Inc.		3,852		52,811
Columbia Sportswear Co.		5,694		303,832
Crocs, Inc. (a)		41,872		602,538
Delta Apparel, Inc. (a)		3,139		43,883
Fifth & Pacific Cos., Inc. (a)		50,620		630,219
G-III Apparel Group Ltd. (a)		7,720		264,256
Iconix Brand Group, Inc. (a)(b)		32,954		735,533
The Jones Group, Inc.		38,224		422,758
K-Swiss, Inc., Class A (a)		12,334		41,442
Maidenform Brands, Inc. (a)(b)		10,884		212,129
Oxford Industries, Inc.		6,518		302,175
Perry Ellis International, Inc.		5,508		109,609
Quiksilver, Inc. (a)		60,798		258,392
R.G. Barry Corp.		3,937		55,787
Skechers U.S.A., Inc., Class A (a)		17,633		326,211
Steven Madden Ltd. (a)		18,270		772,273
True Religion Apparel, Inc.		12,012		305,345
Common Stocks	Shares		Value
Textiles Apparel & Shoes (concluded)
Tumi Holdings, Inc. (a)		10,020	$	208,917
Vera Bradley, Inc. (a)(b)		9,374		235,287
The Warnaco Group, Inc. (a)		19,111		1,367,774
Weyco Group, Inc.		3,003		70,150
Wolverine World Wide, Inc.		22,644		927,951
				8,249,272
Tobacco — 0.2%
Alliance One International, Inc. (a)		40,255		146,528
Star Scientific, Inc. (a)(b)		68,049		182,372
Universal Corp.		10,819		539,976
Vector Group Ltd.		25,899		385,118
				1,253,994
Toys — 0.1%
Jakks Pacific, Inc.		10,182		127,479
Leapfrog Enterprises, Inc. (a)		23,540		203,150
				330,629
Transportation Miscellaneous — 0.2%
Echo Global Logistics, Inc. (a)		6,788		121,980
HUB Group, Inc., Class A (a)		17,253		579,701
Odyssey Marine Exploration, Inc. (a)		33,994		100,962
Pacer International, Inc. (a)		16,493		64,323
Textainer Group Holdings Ltd.		6,448		202,854
Wesco Aircraft Holdings, Inc. (a)		8,095		106,935
XPO Logistics, Inc. (a)(b)		8,223		142,916
				1,319,671
Truckers — 0.7%
Arkansas Best Corp.		11,919		113,826
Celadon Group, Inc.		9,311		168,250
Forward Air Corp.		13,542		474,105
Heartland Express, Inc.		22,360		292,245
Knight Transportation, Inc.		26,981		394,732
Marten Transport Ltd.		7,202		132,445
Old Dominion Freight Line, Inc. (a)		33,174		1,137,205
Patriot Transportation Holding, Inc. (a)		2,943		83,670
Quality Distribution, Inc. (a)		9,981		59,886
Roadrunner Transportation Systems, Inc. (a)		6,594		119,615
Saia, Inc. (a)		7,425		171,666
Swift Transportation Co. (a)		36,724		334,923
Universal Truckload Services, Inc.		2,587		47,213
Werner Enterprises, Inc.		20,624		446,922
				3,976,703
Utilities: Electrical — 2.0%
Allete, Inc.		17,783		728,747
American DG Energy, Inc. (a)		11,599		26,794
Atlantic Power Corp.		53,026		606,087
Avista Corp.		27,348		659,360
Black Hills Corp.		20,536		746,278
CH Energy Group, Inc.		6,917		451,127
Cleco Corp.		28,386		1,135,746
El Paso Electric Co.		18,638		594,738
The Empire District Electric Co.		19,591		399,264
Genie Energy Ltd.		6,948		49,331
IDACORP, Inc.		23,328		1,011,269
MGE Energy, Inc.		10,782		549,343
NorthWestern Corp.		16,971		589,403
Otter Tail Corp.		16,846		421,150

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 35

Schedule of Investments (continued) Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Utilities: Electrical (concluded)
Pike Electric Corp.		8,042	$	76,801
PNM Resources, Inc.		37,117		761,270
Portland General Electric Co.		35,167		962,169
UIL Holdings Corp.		23,601		845,152
Unitil Corp.		6,314		163,659
UNS Energy Corp.		18,754		795,545
				11,573,233
Utilities: Gas Distributors — 1.0%
Chesapeake Utilities Corp.		4,465		202,711
Delta Natural Gas Co., Inc.		3,182		62,208
The Laclede Group, Inc.		10,564		407,876
New Jersey Resources Corp.		19,413		769,143
Northwest Natural Gas Co.		12,519		553,340
Piedmont Natural Gas Co.		33,494		1,048,697
South Jersey Industries, Inc.		14,192		714,283
Southwest Gas Corp.		21,509		912,197
WGL Holdings, Inc.		24,060		942,912
				5,613,367
Utilities: Miscellaneous — 0.0%
Ormat Technologies, Inc.		8,253		159,118
Utilities: Telecommunications — 0.8%
8x8, Inc. (a)		32,967		243,626
Atlantic Tele-Network, Inc.		4,319		158,550
Boingo Wireless, Inc. (a)		7,405		55,908
Cbeyond Communications, Inc. (a)		13,015		117,656
Cincinnati Bell, Inc. (a)		91,779		502,949
Cogent Communications Group, Inc.		21,773		492,941
Consolidated Communications Holdings, Inc.		19,073		303,642
Fairpoint Communications, Inc. (a)(b)		9,843		78,153
General Communication, Inc., Class A (a)		17,367		166,550
Hawaiian Telcom HoldCo, Inc. (a)		4,915		95,842
HickoryTech Corp.		6,738		65,561
IDT Corp., Class B		7,407		70,663
inContact, Inc. (a)		17,771		92,054
Ipass, Inc. (a)		23,809		43,570
Iridium Communications, Inc. (a)		23,559		158,788
j2 Global, Inc.		21,539		658,663
Leap Wireless International, Inc. (a)		25,065		166,682
Lumos Networks Corp.		7,316		73,306
magicJack VocalTec Ltd. (a)		6,935		126,286
Neutral Tandem, Inc.		13,736		35,301
NTELOS Holdings Corp.		6,905		90,525
ORBCOMM, Inc. (a)		16,561		64,919
Premiere Global Services, Inc. (a)		23,201		226,906
Primus Telecommunications Group, Inc.		5,475		59,513
Shenandoah Telecom Co.		11,205		171,549
Towerstream Corp. (a)(b)		22,291		72,446
USA Mobility, Inc.		8,134		95,005
Vonage Holdings Corp. (a)		49,566		117,471
				4,605,025
Utilities: Water — 0.3%
American States Water Co.		8,803		422,368
Artesian Resources Corp., Class A		3,504		78,595
California Water Service Group		19,570		359,109
Connecticut Water Service, Inc.		4,986		148,483
Consolidated Water Co., Inc.		6,873		50,860
Middlesex Water Co.		7,309		142,964
Common Stocks	Shares		Value
Utilities: Water (concluded)
SJW Corp.		6,571	$	174,789
York Water Co.		5,972		104,928
				1,482,096
Total Common Stocks — 95.7%				556,928,349
Investment Companies
BlackRock Kelso Capital Corp. (a)(d)		24,999		251,490
Firsthand Technology Value Fund, Inc. (a)		4,021		70,126
Gladstone Capital Corp.		10,112		82,514
Hercules Technology Growth Capital, Inc.		24,827		276,325
Pennantpark Investment Corp.		30,781		338,437
Prospect Capital Corp.		89,038		967,843
Total Investment Companies — 0.4%				1,986,735
Other Interests (e) — 0.0%
Machinery: Industrial — 0.0%
Gerber Scientific, Inc. (a)		12,866		—
Rights — 0.0%
Biotechnology — 0.0%
Allos Therapeutcs, Inc. (a)		29,014		—
Warrants (f) — 0.0%
Oil: Crude Producers — 0.0%
Magnum Hunter Resources Corp. (Issued 08/31/12, 1 Share for 1 Warrant, Expires 10/14/13, Strike Price $10.50)		5,700		—
Total Long-Term Investments (Cost — $445,087,990) — 96.1%				558,915,084
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.11% (d)(g)		20,512,415		20,512,415
	Beneficial Interest (000)
BlackRock Liquidity Series, LLC Money Market Series, 0.29% (d)(g)(h)	$	36,878		36,877,998
Total Short-Term Securities (Cost — $57,390,413) — 9.8%				57,390,413
Total Investments (Cost — $502,478,403*) — 105.9%				616,305,497
Liabilities in Excess of Other Assets — (5.9)%				(34,534,205	)
Net Assets — 100.0%			$	581,771,292

See Notes to Financial Statements.

36 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Schedule of Investments (continued) Master Small Cap Index Series

Notes to Schedule of Investments

* As of December 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	520,579,483
Gross unrealized appreciation	$	120,938,500
Gross unrealized depreciation		(25,212,486	)
Net unrealized appreciation	$	95,726,014

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) All or a portion of security has been pledged as collateral in connection with open financial futures contracts.

(d) Investments in issuers considered to be an affiliate of the Series during the year ended December 31, 2012, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares/Beneficial Interest Held at December 31, 2011		Shares Purchased			Shares/Beneficial Interest Sold			Shares/Beneficial Interest Held at December 31, 2012		Value at December 31, 2012		Income		Realized Gain/Loss
BlackRock Kelso Capital Corp.		34,792		—			(9,793	)		24,999	$	251,490	$	28,317	$	(6,872	)
BlackRock Liquidity Funds, TempFund, Institutional Class		7,771,176		12,741,239	1		—			20,512,415	$	20,512,415	$	23,454	$	246
BlackRock Liquidity Series LLC, Money Market Series	$	58,201,803		—		$	(21,323,805	)1	$	36,877,998	$	36,877,998	$	789,340		—
PennyMac Mortgage Investment Trust		13,158		22,443			(7,912)			27,689	$	700,255	$	37,852		$4,231

¹ Represents net shares/beneficial interest purchased/sold.

(e) Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.

(f) Warrants entitle the Series to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.

(g) Represents the current yield as of report date.

(h) Security was purchased with the cash collateral from loaned securities. The Series may withdraw up to 25% of its investment daily, although the manager of the BlackRock Liquidity Series LLC, Money Market Series, in its sole discretion, may permit an investor to withdraw more than 25% on any one day.

Ÿ Financial futures contracts as of December 31, 2012 were as follows:

Contracts Purchased	Issue		Exchange		Expiration		Notional Value		Unrealized Appreciation
269		Russell 2000 E-Mini		ICE Futures US Indices		March 2013		$22,773,540		$418,047

Ÿ For Series compliance purposes, the Series’ industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Series management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

Ÿ Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

Ÿ Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Series has the ability to access

Ÿ Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

Ÿ Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Series’ own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Series’ policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in the securities. For information about the Series’ policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 37

Schedule of Investments (concluded) Master Small Cap Index Series

The following tables summarize the Series’ investments and derivative financial instruments categorized in the disclosure hierarchy as of December 31, 2012:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks1	$	555,899,011	$	1,029,338		—	$	556,928,349
Investment Companies		1,986,735		—		—		1,986,735
Short-Term Securities		20,512,415		36,877,998		—		57,390,413
Total	$	578,398,161	$	37,907,336		—	$	616,305,497

¹  See above Schedule of Investments for values in each industry, excluding Level 2, Gold, within the table.

	Level 1		Level 2		Level 3		Total
Derivative Financial Instruments2
Assets:
Equity contracts	$	418,047		—		—	$	418,047

²  Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Series’ assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of December 31, 2012, such assets and liabilities are categorized within the disclosure hierarchy as follows:

	Level 1		Level 2			Level 3		Total
Assets:
Cash	$	148,446		—			—	$	148,446
Cash pledged as collateral for financial futures contracts		872,000		—			—		872,000
Liabilities:
Collateral on securities loaned at value		—	$	(36,877,998	)		—		(36,877,998	)
Total	$	1,020,446	$	(36,877,998	)		—	$	(35,857,552	)

There were no transfers between levels during the year ended December 31, 2012.

See Notes to Financial Statements.

38 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Statement of Assets and Liabilities Master Small Cap Index Series

December 31, 2012
Assets
Investments at value — unaffiliated (including securities loaned of $36,428,424) (cost — $444,317,909)	$	557,963,339
Investments at value — affiliated (cost — $58,160,494)		58,342,158
Cash		148,446
Cash pledged as collateral for financial futures contracts		872,000
Dividends receivable		800,025
Variation margin receivable		580,248
Contributions receivable from investors		225,503
Securities lending income receivable — affiliated		84,529
Receivable from Manager		13,416
Prepaid expenses		3,359
Total assets		619,033,023
Liabilities
Collateral on securities loaned at value		36,877,998
Investments purchased payable		121,043
Other affiliates payable		3,533
Directors’ fees payable		3,080
Other accrued expenses payable		256,077
Total liabilities		37,261,731
Net Assets	$	581,771,292
Net Assets Consist of
Investors’ capital	$	467,526,156
Net unrealized appreciation/depreciation		114,245,136
Net Assets	$	581,771,292

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2012	39

Statement of Operations Master Small Cap Index Series

Year Ended December 31, 2012
Investment Income
Dividends — unaffiliated	$	10,392,018
Foreign taxes withheld		(13,884	)
Securities lending — affiliated — net		789,340
Dividends — affiliated		89,623
Total income		11,257,097
Expenses
Investment advisory		50,934
Custodian		350,913
Accounting services		139,407
Professional		116,387
Directors		18,523
Printing		9,717
Miscellaneous		8,559
Total expenses		694,440
Less fees waived and/or reimbursed by Manager		(303,134	)
Total expenses after fees waived and/or reimbursed		391,306
Net investment income		10,865,791
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated		7,436,504
Investments — affiliated		(2,641	)
Capital gain distributions received from affiliated investment companies		246
Financial futures contracts		30,697
Foreign currency transactions		56
		7,464,862
Net change in unrealized appreciation/depreciation on:
Investments		65,012,515
Financial futures contracts		425,122
Foreign currency translations		(19	)
		65,437,618
Total realized and unrealized gain		72,902,480
Net Increase in Net Assets Resulting from Operations	$	83,768,271

See Notes to Financial Statements.
40	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2012

Statements of Changes in Net Assets Master Small Cap Index Series

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2012			2011
Operations
Net investment income	$	10,865,791		$	6,404,899
Net realized gain		7,464,862			7,096,266
Net change in unrealized appreciation/depreciation		65,437,618			(46,200,359	)
Net increase (decrease) in net assets resulting from operations		83,768,271			(32,699,194	)
Capital Transactions
Proceeds from contributions		389,096,894			449,939,216
Value of withdrawals		(420,147,450	)		(226,358,426	)
Net increase (decrease) in net assets derived from capital transactions		(31,050,556	)		223,580,790
Net Assets
Total increase in net assets		52,717,715			190,881,596
Beginning of year		529,053,577			338,171,981
End of year	$	581,771,292		$	529,053,577

See Notes to Financial Statements.
	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2012	41

Financial Highlights Master Small Cap Index Series

	Year Ended December 31,
	2012		2011			2010		2009		2008
Total Investment Return
Total investment return		16.52%		(4.30	)%		27.19%		27.37%		(33.57	)%
Ratios to Average Net Assets
Total expenses		0.14%		0.09%			0.12%		0.09%		0.08%
Total expenses after fees waived and/or reimbursed and fees paid indirectly		0.08%		0.07%			0.08%		0.07%		0.07%
Net investment income		2.13%		1.46%			1.27%		1.27%		1.60%
Supplemental Data
Net assets, end of year (000)	$	581,771	$	529,054		$	338,172	$	229,637	$	344,720
Portfolio turnover		68%		31%			42%		43%		42%

See Notes to Financial Statements.
42	BLACKROCK SMALL CAP INDEX FUND	DECEMBER 31, 2012

Notes to Financial Statements Master Small Cap Index Series

1. Organization and Significant Accounting Policies:

Master Small Cap Index Series (the “Series”), a diversified, open-end management investment company, is a series of Quantitative Master Series LLC (the “Master LLC”). The Master LLC is registered as an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), and is organized as a Delaware limited liability company. The Master LLC’s Limited Liability Company Agreement permits the Board of Directors of the Master LLC (the “Board”) to issue non-transferable interests in the Master LLC, subject to certain limitations. The Series’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

The following is a summary of significant accounting policies followed by the Series:

Valuation: US GAAP defines fair value as the price the Series would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Series determines the fair values of its financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Series for all financial instruments.

Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System (“NASDAQ”) are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid price. If no bid price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

The Series values its investments in BlackRock Liquidity Series, LLC Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments will follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act. The Series may withdraw up to 25% of its investment daily, although the manager of the Money Market Series, in its sole discretion, may permit an investor in the Money Market Series to withdraw more than 25% on any one day.

In the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that the Series might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deem relevant consistent with the principles of fair value measurement which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Series’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Foreign Currency: The Series’ books and records are maintained in US dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the US dollar rises in value against a foreign

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 43

Notes to Financial Statements (continued) Master Small Cap Index Series

currency, the Series’ investments denominated in that currency will lose value because that currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.

The Series does not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated on the Statement of Operations from the effects of changes in market prices of those investments but are included as a component of net realized and unrealized gain (loss) from investments. The Series reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Series either deliver collateral or segregate assets in connection with certain investments (e.g., foreign currency exchange contracts, and financial futures contracts), the Series will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, a Series engaging in such transactions may have requirements to deliver/deposit securities to/with an exchange or broker-dealer as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Series is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Securities Lending: The Series may lend securities to approved borrowers, such as banks, brokers and other financial institutions. The borrower pledges cash, securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral. The initial collateral received by the Series is required to have a value of at least 102% of the current value of the loaned securities for securities traded on US exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Series and any additional required collateral is delivered to the Series on the next business day. Securities lending income, as disclosed in the Statement of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, the Series earns dividend or interest income on the securities loaned but does not receive interest income on the securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate this risk the Series benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities lent. The Series also could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the year ended December 31, 2012, any securities on loan were collateralized by cash.

Income Taxes: The Series is classified as a partnership for federal income tax purposes. As such, each investor in the Series is treated as the owner of its proportionate share of net assets, income, expenses and realized and unrealized gains and losses of the Series. Therefore, no federal income tax provision is required. It is intended that the Series’ assets will be managed so an investor in the Series can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

The Series files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Series’ US federal tax returns remains open for each of the four years ended December 31, 2012. The statutes of limitations on the Series’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In December 2011, the Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or similar agreements, which are eligible for offset in the Statement of Assets and Liabilities and will require an entity to disclose both gross

44 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Notes to Financial Statements (continued) Master Small Cap Index Series

and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Series’ financial statement disclosures.

Other: Expenses directly related to the Series are charged to the Series. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Series has an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Series engages in various portfolio investment strategies using derivative contracts both to increase the return of the Series and/or to economically hedge, or protect, its exposure to certain risks such as equity risk and foreign currency exchange rate risk. These contracts may be transacted on an exchange or over-the counter (“OTC”).

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. The Series’ maximum risk of loss from counterparty credit risk on OTC derivatives is generally the aggregate unrealized gain netted against any collateral pledged by/posted to the counterparty. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

The Series may mitigate counterparty risk by procuring collateral and through netting provisions included within an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) implemented between the Series and each of its respective counterparties. An ISDA Master Agreement allows the Series to offset with each separate counterparty certain derivative financial instrument’s payables and/or receivables with collateral held. The amount of collateral moved to/from applicable counterparties is generally based upon minimum transfer amounts of up to $500,000. To the extent amounts due to the Series from its counterparties are not fully collateralized, contractually or otherwise, the Series bears the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. In addition, the Series manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor its obligations and by monitoring the financial stability of those counterparties.

Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Series’ net assets decline by a stated percentage or the Series fails to meet the terms of its ISDA Master Agreements, which would cause the Series to accelerate payment of any net liability owed to the counterparty.

Financial Futures Contracts: The Series purchases or sells financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in the value of equity securities (equity risk). Financial futures contracts are agreements between the Series and the counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Series agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Series as unrealized appreciation or depreciation. When the contract is closed, the Series records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Foreign Currency Exchange Contracts: The Series enters into foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to foreign currencies (foreign currency exchange rate risk). A foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. Foreign currency exchange contracts, when used by the Series, help to manage the overall exposure to the currencies in which some of the investments held by the Series are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Series as an unrealized gain or loss. When the contract is closed, the Series records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The use of foreign currency exchange contracts involves the risk that the value of a foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies and the risk that the counterparty to the contract does not perform its obligations under the agreement.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 45

Notes to Financial Statements (continued) Master Small Cap Index Series

Derivative Financial Instruments Categorized by Risk Exposure:
Fair Values of Derivative Financial Instruments as of December 31, 2012
Asset Derivatives
	Statement of Assets and Liabilities Location	Value
Equity contracts	Net unrealized appreciation1	$	418,047

¹  Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Financial Instruments in the Statement of Operations Year Ended December 31, 2012
	Net Realized Gain  (Loss) From
Equity contracts:
Financial futures contracts	$	30,697
Foreign currency exchange contracts:
Foreign currency transactions		(94	)
Total	$	30,603

	Net Change in Unrealized Appreciation on
Equity contracts:
Financial futures contracts	$	425,122

For the year ended December 31, 2012, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average number of contracts purchased		212
Average notional value of contracts purchased	$	17,585,038
Foreign currency exchange contracts:
Average number of contracts — US dollars purchased2		3
Average US dollar amounts purchased2	$	11,562

² Average contract amount shown due to limited activity.

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock.

The Master LLC, on behalf of the Series, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Series’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of the Series’ portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Series. For such services, the Series pays the Manager a monthly fee at an annual rate of 0.01% of the Series’ average daily net assets.

The Manager entered into a contractual arrangement with the Master LLC with respect to the Series under which the Manager will waive and/or reimburse its fees and/or expenses so that the total annual operating expenses incurred by the Series (excluding interest expense, acquired fund fees and certain other Series’ expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Series’ business) will not exceed 0.08% of the average daily net assets of the Series. The Manager has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to May 1, 2013 unless approved by the Board. For the year ended December 31, 2012, the Series waived $291,996, which is included in fees waived by Manager in the Statement of Operations.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Series pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Series’ investment in other affiliated investment companies, if any. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended December 31, 2012, the amount waived was $11,138.

The Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by the Series to the Manager.

For the year ended December 31, 2012, the Series reimbursed the Manager $6,121 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Master LLC, on behalf of the Series, received an exemptive order from the SEC permitting it, among other things, to pay an affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and has retained BIM as the securities lending agent. BIM may, on behalf of the Series, invest cash collateral received by the Series for such loans, among other things, in a private investment company managed by the Manager or in registered money market funds advised by the Manager or its affiliates. The market value of securities on loan and the value of the related collateral, if applicable, are shown in the Statement of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral invested by BIM is disclosed in the Schedule of Investments, if any. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of rebates paid to, or fees paid by, borrowers of securities. The Series retains 65% of securities lending income and pays a fee to BIM equal to 35% of such income. The Series benefits from a borrower default

46 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Notes to Financial Statements (concluded) Master Small Cap Index Series

indemnity provided by BlackRock. As securities lending agent, BIM bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BIM does not receive any fees for managing the cash collateral. The share of income earned by the Series is shown as securities lending — affiliated – net in the Statement of Operations. For the year ended December 31, 2012, BIM received $451,080 in securities lending agent fees related to securities lending activities for the Series.

Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock or its affiliates.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the year ended December 31, 2012, were $339,031,060 and $375,304,242, respectively.

5. Borrowings:

The Master LLC, on behalf of the Series, along with certain other funds managed by the Manager and its affiliates, is a party to a $500 million credit agreement with a group of lenders. The Series may borrow under the credit agreement to fund shareholder redemptions. Effective November 2011 to November 2012, the credit agreement had the following terms: a commitment fee of 0.065% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month London Interbank Offered Rate (“LIBOR”) plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2011. The credit agreement, which expired in November 2012, was renewed with the same terms until November 2013. Effective November 2012 to November 2013, the credit agreement has the following terms: a commitment fee of 0.065% per annum based on the Series’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Series paid administration and arrangement fees which were allocated to the Series based on its net assets as of October 31, 2012. The Series did not borrow under the credit agreement during the year ended December 31, 2012.

6. Concentration, Market and Credit Risk:

In the normal course of business, the Series invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Series may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Series; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Series may be exposed to counterparty credit risk, or the risk that an entity with which the Series has unsettled or open transactions may fail to or be unable to perform on its commitments. The Series manages counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Series to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Series’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Series.

As of December 31, 2012, the Series invested a significant portion of its assets in securities in the financials sector. Changes in economic conditions affecting the financials sector would have a greater impact on the Series and could affect the value, income and/or liquidity of positions in such securities.

7. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Series through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 47

Report of Independent Registered Public Accounting Firm Master Small Cap Index Series

To the Investors of Master Small Cap Index Series and Board of Directors of Quantitative Master Series LLC:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Master Small Cap Index Series, one of the series constituting Quantitative Master Series LLC, (the “Series”) as of December 31, 2012, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Series’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Series is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Series’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2012, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Master Small Cap Index Series, of Quantitative Master Series LLC, as of December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 15, 2013

48 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Officers and Directors

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1
Ronald W. Forbes 55 East 52nd Street New York, NY 10055 1940	Co-Chairman of the Board and Director	Since 2007	Professor Emeritus of Finance, School of Business, State University of New York at Albany since 2000.	33 RICs consisting of 106 Portfolios	None
Rodney D. Johnson 55 East 52nd Street New York, NY 10055 1941	Co-Chairman of the Board and Director	Since 2007	President, Fairmount Capital Advisors, Inc. since 1987; Member of the Archdiocesan Investment Committee of the Archdiocese of Philadelphia since 2004; Director, The Committee of Seventy (civic) since 2006; Director, Fox Chase Cancer Center from 2004 to 2011.	33 RICs consisting of 106 Portfolios	None
David O. Beim 55 East 52nd Street New York, NY 10055 1940	Director	Since 2007	Professor of Professional Practice at the Columbia University Graduate School of Business since 1991; Trustee, Phillips Exeter Academy since 2002; Chairman, Wave Hill, Inc. (public garden and cultural center) from 1990 to 2006.	33 RICs consisting of 106 Portfolios	None
Dr. Matina S. Horner 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Executive Vice President of Teachers Insurance and Annuity Association and College Retirement Equities Fund from 1989 to 2003.	33 RICs consisting of 106 Portfolios	NSTAR (electric and gas utility)
Herbert I. London 55 East 52nd Street New York, NY 10055 1939	Director	Since 2007	Professor Emeritus, New York University since 2005; John M. Olin Professor of Humanities, New York University from 1993 to 2005 and Professor thereof from 1980 to 2005; President Emeritus, Hudson Institute (policy research organization) since 2011, President thereof from 1997 to 2011 and Trustee since 1980; Chairman of the Board of Trustees for Grantham University since 2006; Director, InnoCentive, Inc. (strategic solutions company) since 2005; Director, Cerego, LLC (software development and design) since 2005; Director, Cybersettle (dispute resolution technology) since 2009.	33 RICs consisting of 106 Portfolios	AIMS Worldwide, Inc. (marketing)
Ian A. MacKinnon 55 East 52nd Street New York, NY 10055 1948	Director	Since 2012	Director, Kennett Capital, Inc. (investments) since 2006; Director, Free Library of Philadelphia from 1999 to 2008.	33 RICs consisting of 106 Portfolios	None
Cynthia A. Montgomery 55 East 52nd Street New York, NY 10055 1952	Director	Since 2007	Professor, Harvard Business School since 1989; Director, McLean Hospital since 2005; Director, Harvard Business School Publishing from 2005 to 2010.	33 RICs consisting of 106 Portfolios	Newell Rubbermaid, Inc. (manufacturing)
Joseph P. Platt 55 East 52nd Street New York, NY 10055 1947	Director	Since 2007	Director, The West Penn Allegheny Health System (a not-for-profit health system) since 2008; Director, Jones and Brown (Canadian insurance broker) since 1998; General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Partner, Amarna Corporation, LLC (private investment company) from 2002 to 2008.	33 RICs consisting of 106 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company)
Robert C. Robb, Jr. 55 East 52nd Street New York, NY 10055 1945	Director	Since 2007	Partner, Lewis, Eckert, Robb and Company (management and financial consulting firm) since 1981.	33 RICs consisting of 106 Portfolios	None

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 49

Officers and Directors (continued)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served as a Director2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Independent Directors1 (concluded)
Toby Rosenblatt 55 East 52nd Street New York, NY 10055 1938	Director	Since 2007	President, Founders Investments Ltd. (private investments) since 1999; Director, Forward Management, LLC since 2007; Director, College Access Foundation of California (philanthropic foundation) since 2009; Director, A.P. Pharma, Inc. (specialty pharmaceuticals) from 1983 to 2011; Director, The James Irvine Foundation (philanthropic foundation) from 1998 to 2008.	33 RICs consisting of 106 Portfolios	None
Kenneth L. Urish 55 East 52nd Street New York, NY 10055 1951	Director	Since 2007	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Chairman Elect of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.	33 RICs consisting of 106 Portfolios	None
Frederick W. Winter 55 East 52nd Street New York, NY 10055 1945	Director	Since 2007	Professor and Dean Emeritus of the Joseph M. Katz School of Business, University of Pittsburgh since 2005 and Dean thereof from 1997 to 2005; Director, Alkon Corporation (pneumatics) since 1992; Director, Tippman Sports (recreation) since 2005; Director, Indotronix International (IT services) from 2004 to 2008.	33 RICs consisting of 106 Portfolios	None
	1   Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The Board has approved one-year extensions in terms of Directors who turn 72 prior to December 31, 2013.
	2   Date shown is the earliest date a person has served for the Corporation/Master LLC covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows certain Directors as joining the Corporation’s/Master LLC’s board in 2007, each Director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: David O. Beim, 1998; Ronald W. Forbes, 1977; Dr. Matina S. Horner, 2004; Rodney D. Johnson, 1995; Herbert I. London, 1987; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Robert C. Robb, Jr., 1998; Toby Rosenblatt, 2005; Kenneth L. Urish, 1999; and Frederick W. Winter, 1999.
Interested Directors3
Paul L. Audet 55 East 52nd Street New York, NY 10055 1953	Director	Since 2011	Senior Managing Director of BlackRock and Head of U.S. Mutual Funds since 2011; Chair of the U.S. Mutual Funds Committee reporting to the Global Executive Committee since 2011; Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005.	155 RICs consisting of 278 Portfolios	None
Henry Gabbay 55 East 52nd Street New York, NY 10055 1947	Director	Since 2007	Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	155 RICs consisting of 278 Portfolios	None
	3   Mr. Audet is an “interested person,” as defined in the 1940 Act, of the Corporation/Master LLC based on his position with BlackRock and its affiliates. Mr. Gabbay is an “interested person” of the Corporation/Master LLC based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of the BlackRock registered closed-end funds and Directors of other BlackRock registered open-end funds. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

50 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Officers and Directors (concluded)

Name, Address and Year of Birth	Position(s) Held with Corporation/ Master LLC	Length of Time Served	Principal Occupation(s) During Past Five Years
Officers1
John M. Perlowski 55 East 52nd Street New York, NY 10055 1964	President and Chief Executive Officer	Since 2010	Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Administration since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.
Brendan Kyne 55 East 52nd Street New York, NY 10055 1977	Vice President	Since 2009	Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009; Vice President of BlackRock from 2005 to 2008.
Neal Andrews 55 East 52nd Street New York, NY 10055 1966	Chief Financial Officer	Since 2007	Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
Jay Fife 55 East 52nd Street New York, NY 10055 1970	Treasurer	Since 2007	Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
Brian Kindelan 55 East 52nd Street New York, NY 10055 1959	Chief Compliance Officer and Anti-Money Laundering Officer	Since 2007	Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005.
Benjamin Archibald 55 East 52nd Street New York, NY 10055 1975	Secretary	Since 2012	Director of BlackRock since 2010; Assistant Secretary to the funds from 2010 to 2012; General Counsel and Chief Operating Officer of Uhuru Capital Management from 2009 to 2010; Executive Director and Counsel of Goldman Sachs Asset Management from 2005 to 2009.
	1   Officers of the Corporation/Master LLC serve at the pleasure of the Board.
	Further information about the Officers and Directors is available in the Corporation’s/Master LLC’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Investment Advisor BlackRock Advisors, LLC Wilmington, DE 19809	Custodian and Accounting Agent State Street Bank and Trust Company Boston, MA 02110	Independent Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116	Legal Counsel Sidley Austin LLP New York, NY 10019
Sub-Advisor BlackRock Investment Management, LLC Princeton, NJ 08540	Transfer Agent BNY Mellon Investment Servicing (US) Inc. Wilmington, DE 19809	Distributor BlackRock Investments, LLC New York, NY 10022	Address of the Fund 100 Bellevue Parkway Wilmington, DE 19809

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 51

Additional Information

General Information

Electronic Delivery

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1) Access the BlackRock website at http://www.blackrock.com/edelivery

2) Select “eDelivery” under the “More Information” section

3) Log into your account

Householding

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Fund/Series file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s/Series’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Fund’s/Series’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund/Series use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Fund/Series voted proxies relating to securities held in the Fund’s/Series’ portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

52 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

Additional Information (concluded)

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012 53

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds

BlackRock ACWI ex-US Index Fund

BlackRock All-Cap Energy & Resources Portfolio

BlackRock Basic Value Fund

BlackRock Capital Appreciation Fund

BlackRock China Fund

BlackRock Commodity Strategies Fund

BlackRock Emerging Markets Fund

BlackRock Emerging Markets Long/Short Equity Fund

BlackRock Energy & Resources Portfolio

BlackRock Equity Dividend Fund

BlackRock EuroFund

BlackRock Flexible Equity Fund

BlackRock Focus Growth Fund

BlackRock Global Dividend Income Portfolio

BlackRock Global Long/Short Equity Fund

BlackRock Global Opportunities Portfolio

BlackRock Global SmallCap Fund

BlackRock Health Sciences Opportunities Portfolio

BlackRock Index Equity Portfolio

BlackRock India Fund

BlackRock International Fund

BlackRock International Index Fund

BlackRock International Opportunities Portfolio

BlackRock Large Cap Core Fund

BlackRock Large Cap Core Plus Fund

BlackRock Large Cap Growth Fund

BlackRock Large Cap Value Fund

BlackRock Latin America Fund

BlackRock Long-Horizon Equity Fund

BlackRock Mid-Cap Growth Equity Portfolio

BlackRock Mid Cap Value Opportunities Fund

BlackRock Natural Resources Trust

BlackRock Pacific Fund

BlackRock Real Estate Securities Fund

BlackRock Russell 1000 Index Fund

BlackRock Science & Technology Opportunities Portfolio

BlackRock Small Cap Growth Equity Portfolio

BlackRock Small Cap Growth Fund II

BlackRock Small Cap Index Fund

BlackRock S&P 500 Index Fund

BlackRock S&P 500 Stock Fund

BlackRock U.S. Opportunities Portfolio

BlackRock Value Opportunities Fund

BlackRock World Gold Fund

Taxable Fixed Income Funds

BlackRock Bond Index Fund

BlackRock Core Bond Portfolio

BlackRock CoreAlpha Bond Fund

BlackRock Emerging Market Local Debt Portfolio

BlackRock Floating Rate Income Portfolio

BlackRock Global Long/Short Credit Fund

BlackRock GNMA Portfolio

BlackRock High Yield Bond Portfolio

BlackRock Inflation Protected Bond Portfolio

BlackRock International Bond Portfolio

BlackRock Long Duration Bond Portfolio

BlackRock Low Duration Bond Portfolio

BlackRock Secured Credit Portfolio

BlackRock Strategic Income Opportunities Portfolio

BlackRock Total Return Fund

BlackRock U.S. Government Bond Portfolio

BlackRock U.S. Mortgage Portfolio

BlackRock World Income Fund

Municipal Fixed Income Funds

BlackRock California Municipal Bond Fund

BlackRock High Yield Municipal Fund

BlackRock Intermediate Municipal Fund

BlackRock National Municipal Fund

BlackRock New Jersey Municipal Bond Fund

BlackRock New York Municipal Bond Fund

BlackRock Pennsylvania Municipal Bond Fund

BlackRock Short-Term Municipal Fund

Mixed Asset Funds

BlackRock Balanced Capital Fund	LifePath Active Portfolios			LifePath Index Portfolios
BlackRock Global Allocation Fund		2015	2035		Retirement	2040
BlackRock Managed Volatility Portfolio		2020	2040		2020	2045
BlackRock Multi-Asset Income Portfolio		2025	2045		2025	2050
BlackRock Multi-Asset Real Return Fund		2030	2050		2030	2055
BlackRock Strategic Risk Allocation Fund					2035
BlackRock Prepared Portfolios	LifePath Portfolios
Conservative Prepared Portfolio		Retirement	2040
Moderate Prepared Portfolio		2020	2045
Growth Prepared Portfolio		2025	2050
Aggressive Growth Prepared Portfolio		2030	2055
		2035

BlackRock mutual funds are currently distributed by BlackRock Investments, LLC. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing.

54 BLACKROCK SMALL CAP INDEX FUND DECEMBER 31, 2012

This report is transmitted to shareholders only. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

#SCIndex-12/12-AR

Item 2 –  Code of Ethics – Each registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.

Item 3 – Audit Committee Financial Expert – Each registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial expert serving on its audit committee and (ii) each audit committee financial expert is independent:

Kenneth L. Urish

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.

Item 4 – Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

	(a) Audit Fees		(b) Audit-Related Fees1		(c) Tax Fees2		(d) All Other Fees3
Entity Name	Current     Fiscal Year     End	Previous     Fiscal Year     End	Current     Fiscal Year     End	Previous     Fiscal Year     End	Current     Fiscal Year     End	Previous     Fiscal Year     End	Current     Fiscal Year     End	Previous     Fiscal Year     End
BlackRock International Index Fund of BlackRock Index Funds, Inc.	$7,100	$7,000	$0	$3,000	$9,200	$8,600	$0	$0
BlackRock S&P 500 Index Fund of BlackRock Index Funds, Inc.	$7,000	$6,800	$3,800	$0	$12,350	$12,350	$0	$0
BlackRock Small Cap Index Fund of BlackRock Index Funds, Inc.	$7,100	$7,000	$0	$3,000	$10,700	$10,700	$0	$0
Master International Index Series of Quantitative Master Series LLC	$37,300	$36,800	$0	$1,750	$17,000	$17,000	$0	$0
Master S&P 500 Index Series of Quantitative Master Series LLC	$34,500	$34,500	$3,800	$13,300	$18,600	$18,600	$0	$0
Master Small Cap Index Series of Quantitative Master Series LLC	$38,500	$38,100	$0	$1,750	$17,000	$17,000	$0	$0

2

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Fund Service Providers”):

	Current Fiscal Year End	Previous Fiscal Year  End
(b) Audit-Related Fees1	$0	$0
(c) Tax Fees2	$0	$0
(d) All Other Fees3	$2,970,000	$3,030,000

¹ The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

² The nature of the services includes tax compliance, tax advice and tax planning.

³ Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by D&T with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

        Each Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the registrant’s Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Fund Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

        Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the registrant’s Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by either Committee pursuant to the de minimus exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

3

(g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Fund Service Providers were:

Entity Name	Current Fiscal Year     End	Previous Fiscal Year      End
BlackRock International Index Fund of BlackRock Index Funds, Inc.	$9,200	$11,600
BlackRock S&P 500 Index Fund of BlackRock Index Funds, Inc.	$16,150	$12,350
BlackRock Small Cap Index Fund of BlackRock Index Funds, Inc.	$10,700	$13,700
Master International Index Series of Quantitative Master Series LLC	$17,000	$18,750
Master S&P 500 Index Series of Quantitative Master Series LLC	$22,400	$31,900
Master Small Cap Index Series of Quantitative Master Series LLC	$18,600	$18,750

Additionally, SSAE 16 Review (Formerly, SAS No. 70) fees for the current and previous fiscal years of $2,970,000 and $3,030,000, respectively, were billed by D&T to the Investment Adviser.

(h) Each Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5 – Audit Committee of Listed Registrants – Not Applicable

Item 6 – Investments

(a) The registrants’ Schedules of Investments are included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(a) The registrants’ principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants’ disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

4

(b) There were no changes in the registrants’ internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants’ internal control over financial reporting.

Item 12 – Exhibits attached hereto

(a)(1) Code of Ethics – See Item 2

(a)(2) Certifications – Attached hereto

(a)(3) Not Applicable

(b) Certifications – Attached hereto

5

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, each registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Index Funds, Inc. and Quantitative Master Series LLC
By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Index Funds, Inc. and Quantitative Master Series LLC
Date: February 26, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of each registrant and in the capacities and on the dates indicated.

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Index Funds, Inc. and Quantitative Master Series LLC
Date: February 26, 2013

By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Index Funds, Inc. and Quantitative Master Series LLC
Date: February 26, 2013

6

EX-99.CERT

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002

I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock Index Funds, Inc. and Quantitative Master Series LLC, certify that:

1.        I have reviewed this report on Form N-CSR of BlackRock Index Funds, Inc. and Quantitative Master Series LLC;

2.        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.        Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrants as of, and for, the periods presented in this report;

4.        The registrants’ other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have:

a)        designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)        designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)        evaluated the effectiveness of the registrants’ disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)        disclosed in this report any change in the registrants’ internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants’ internal control over financial reporting; and

5.        The registrants’ other certifying officer(s) and I have disclosed to the registrants’ auditors and the audit committees of the registrants’ boards of directors (or persons performing the equivalent functions):

a)        all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants’ ability to record, process, summarize, and report financial information; and

b)        any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants’ internal control over financial reporting.

Date: February 26, 2013

/s/ John M. Perlowski                

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Index Funds, Inc. and Quantitative Master Series LLC

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002

I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock Index Funds, Inc. and Quantitative Master Series LLC, certify that:

1.        I have reviewed this report on Form N-CSR of BlackRock Index Funds, Inc. and Quantitative Master Series LLC;

2.        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.        Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrants as of, and for, the periods presented in this report;

4.        The registrants’ other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have:

a)        designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)        designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)        evaluated the effectiveness of the registrants’ disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)        disclosed in this report any change in the registrants’ internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants’ internal control over financial reporting; and

5.        The registrants’ other certifying officer(s) and I have disclosed to the registrants’ auditors and the audit committees of the registrants’ boards of directors (or persons performing the equivalent functions):

a)        all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants’ ability to record, process, summarize, and report financial information; and

b)        any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants’ internal control over financial reporting.

Date: February 26, 2013

/s/ Neal J. Andrews                

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock Index Funds, Inc. and Quantitative Master Series LLC

EX-99.906CERT

Exhibit 99.1350CERT

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and

Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock Index Funds, Inc. and Quantitative Master Series LLC (the “registrants”), hereby certifies, to the best of his knowledge, that the registrants’ Report on Form N-CSR for the period ended December 31, 2012 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrants.

Date: February 26, 2013

/s/ John M. Perlowski                

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Index Funds, Inc. and Quantitative Master Series LLC

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock Index Funds, Inc. and Quantitative Master Series LLC (the “registrants”), hereby certifies, to the best of his knowledge, that the registrants’ Report on Form N-CSR for the period ended December 31, 2012 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrants.

Date: February 26, 2013

/s/ Neal J. Andrews                  

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock Index Funds, Inc. and Quantitative Master Series LLC

This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission.