-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IpzDSY6qsUzMI8xnUr7RK5c/l9bB8XpF5BgnkQq+fSFBLN3U3X+L8M7Ne2/u0evX 0xI/0W82FOhh+UUMfILEyQ== 0001193805-07-003150.txt : 20071207 0001193805-07-003150.hdr.sgml : 20071207 20071207111937 ACCESSION NUMBER: 0001193805-07-003150 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070930 FILED AS OF DATE: 20071207 DATE AS OF CHANGE: 20071207 EFFECTIVENESS DATE: 20071207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WCMA GOVERNMENT SECURITIES FUND CENTRAL INDEX KEY: 0001186233 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21197 FILM NUMBER: 071291443 MAIL ADDRESS: STREET 1: 800 SCUDDERS MILL RD CITY: PLAINSBORO STATE: NJ ZIP: 08536 0001186233 S000002954 WCMA GOVERNMENT SECURITIES FUND C000008084 Class 1 C000008085 Class 2 C000008086 Class 3 C000008087 Class 4 N-CSRS 1 e602895_ncsrs-wcmagov.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSRS CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-21197 811-21300 Name of Fund: WCMA Government Securities Fund Master Government Securities LLC Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 Name and address of agent for service: Donald C. Burke, Chief Executive Officer (principal executive officer), WCMA Government Securities Fund and Master Government Securities LLC, 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011 Registrant's telephone number, including area code: (800) 221-7210 Date of fiscal year end: 03/31/2008 Date of reporting period: 04/01/2007 - 09/30/2007 Item 1 - Report to Stockholders Semi-Annual Report (Unaudited) September 30, 2007 WCMA Government Securities Fund WCMA Government Securities Fund ================================================================================ Table of Contents Page - -------------------------------------------------------------------------------- A Letter to Shareholders ................................................. 3 Semi-Annual Report: Disclosure of Expenses ................................................... 4 Current Seven-Day Yields ................................................. 4 Fund Financial Statements: Statement of Assets and Liabilities ................................... 5 Statement of Operations ............................................... 6 Statements of Changes in Net Assets ................................... 7 Fund Financial Highlights ................................................ 8 Fund Notes to Financial Statements ....................................... 12 Fund Proxy Results ....................................................... 14 Master Portfolio Summary ................................................. 15 Master Financial Statements: Schedule of Investments ............................................... 16 Statement of Assets and Liabilities ................................... 17 Statement of Operations ............................................... 18 Statements of Changes in Net Assets ................................... 19 Master Financial Highlights .............................................. 19 Master Notes to Financial Statements ..................................... 20 Master Proxy Results ..................................................... 21 Officers and Directors ................................................... 22 BlackRock Privacy Principles ............................................. 23 Availability of Quarterly Schedule of Investments ........................ 23 Electronic Delivery ...................................................... 23 2 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 A Letter to Shareholders Dear Shareholder The September reporting period took financial markets on a wild ride. While subprime mortgage woes dominated headlines for much of 2007, troubles intensified in the final months of the period, spawning a widespread "credit crunch" that crept into other areas of the market. The U.S. Federal Reserve Board (the "Fed") and other countries' central banks stepped in to inject liquidity into the markets and bolster investor confidence. The Fed cut the discount rate, the rate banks pay to borrow money directly from the Fed, from 6.25% to 5.25% in two moves in August and September. The central bankers also cut the more widely followed federal funds target rate, which had remained unchanged at 5.25% for over a year, to 4.75% in September. After a tumultuous summer, the dust began to settle toward period-end amid speculation that the worst of the credit crunch had passed. Although heightened volatility and a weakening U.S. economy have been recurring themes throughout the past year, equity markets have displayed surprising resilience. Most recently, the credit turmoil dampened corporate merger-and- acquisition activity, a key source of strength for equity markets. However, market fundamentals have held firm, dividend payouts and share buybacks have continued to grow, and valuations remain attractive. These tailwinds generally have prevailed over the headwinds created by the slowing U.S. economy and troubled housing market. In fixed income markets, mixed economic signals and the credit market debacle resulted in a flight to quality. At the height of the uncertainty, investors shunned bonds associated with the housing and credit markets in favor of higher- quality Treasury issues. The yield on 10-year Treasury issues, which touched 5.30% in June (its highest level in five years), fell to 4.59% by period-end, while prices correspondingly rose. Against this backdrop, financial markets posted generally positive results for the six-month period, and relatively stronger returns for the full year ended September 30, 2007:
Total Returns as of September 30, 2007 6-month 12-month ============================================================================================================ U.S. equities (S&P 500 Index) +8.44% +16.44% - ------------------------------------------------------------------------------------------------------------ Small cap U.S. equities (Russell 2000 Index) +1.19 +12.34 - ------------------------------------------------------------------------------------------------------------ International equities (MSCI Europe, Australasia, Far East Index) +8.72 +24.86 - ------------------------------------------------------------------------------------------------------------ Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +2.31 + 5.14 - ------------------------------------------------------------------------------------------------------------ Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.15 + 3.10 - ------------------------------------------------------------------------------------------------------------ High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) +0.56 + 7.62 - ------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index. As you navigate market volatility, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more market insight, we invite you to view "What's Ahead in 2007: Third Quarter Update" and "Are You Prepared for Volatility?" at www.blackrock.com/funds. We thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead. Sincerely, /s/ Robert C. Doll, Jr. Robert C. Doll, Jr. Vice Chairman, BlackRock, Inc. 3 THIS PAGE NOT PART OF YOUR FUND REPORT Disclosure of Expenses Shareholders of this Fund may incur the following charges: (a) expenses related to transactions, including sales charges, redemption fees and exchange fees; and (b) operating expenses, including advisory fees, distribution fees including 12b-1 fees, and other Fund expenses. The expense example below (which is based on a hypothetical investment of $1,000 invested on April 1, 2007 and held through September 30, 2007) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds. The table provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period." The table also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in this Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds' shareholder reports. The expenses shown in the table are intended to highlight shareholders' ongoing costs only and do not reflect any transactional expenses, such as sales charges, redemption fees or exchange fees. Therefore, the second table 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. Expense Example
Actual Hypothetical** ------------------------------------------------- -------------------------------------------------- Beginning Ending Beginning Ending Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid April 1, 2007 Sept. 30, 2007 During the Period* April 1, 2007 Sept. 30, 2007 During the Period* - ----------------------------------------------------------------------------------------------------------------------------- Class 1 ........... $1,000 $1,017.20 $8.15 $1,000 $1,016.82 $8.15 Class 2 ........... $1,000 $1,020.30 $5.14 $1,000 $1,019.81 $5.14 Class 3 ........... $1,000 $1,021.90 $3.53 $1,000 $1,021.41 $3.53 Class 4 ........... $1,000 $1,021.90 $3.53 $1,000 $1,021.41 $3.53
* For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.62% for Class 1, 1.02% for Class 2, .70% for Class 3 and .70% for Class 4), multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Because the Fund is a feeder fund, the expense table example reflects the expenses of both the feeder fund and the master in which it invests. ** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365. Current Seven-Day Yields As of September 30, 2007 - -------------------------------------------------------------------------------- Class 1 .............................................................. 2.90% Class 2 .............................................................. 3.51 Class 3 .............................................................. 3.84 Class 4 .............................................................. 3.84 - -------------------------------------------------------------------------------- 4 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 Statement of Assets and Liabilities WCMA Government Securities Fund As of September 30, 2007 (Unaudited) =================================================================================================================================== Assets - ----------------------------------------------------------------------------------------------------------------------------------- Investment in Master Government Securities LLC (the "Master LLC"), at value (identified cost -- $509,028,888) ............................................................ $ 509,028,888 Prepaid expenses and other assets .............................................................. 142,936 ------------- Total assets ................................................................................... 509,171,824 ------------- =================================================================================================================================== Liabilities - ----------------------------------------------------------------------------------------------------------------------------------- Payables: Distributor ................................................................................. $ 138,125 Administrator ............................................................................... 98,160 Other affiliates ............................................................................ 3,460 239,745 ------------- Other liabilities .............................................................................. 19 ------------- Total liabilities .............................................................................. 239,764 ------------- =================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Net Assets ..................................................................................... $ 508,932,060 ============= =================================================================================================================================== Net Assets Consist of - ----------------------------------------------------------------------------------------------------------------------------------- Class 1 Shares of beneficial interest, $.10 par value, unlimited number of shares authorized ............................................................................ $ 1,154,166 Class 2 Shares of beneficial interest, $.10 par value, unlimited number of shares authorized ............................................................................ 8,010,073 Class 3 Shares of beneficial interest, $.10 par value, unlimited number of shares authorized ............................................................................ 18,092,296 Class 4 Shares of beneficial interest, $.10 par value, unlimited number of shares authorized ............................................................................ 23,634,923 Paid-in capital in excess of par ............................................................... 458,023,113 Undistributed realized capital gains on investments allocated from the Master LLC -- net ........................................................................ 17,489 ------------- Net assets ..................................................................................... $ 508,932,060 ============= =================================================================================================================================== Net Asset Value - ----------------------------------------------------------------------------------------------------------------------------------- Class 1 -- Based on net assets of $11,542,083 and 11,541,662 shares of beneficial interest outstanding .............................................................. $ 1.00 ============= Class 2 -- Based on net assets of $80,103,673 and 80,100,730 shares of beneficial interest outstanding .............................................................. $ 1.00 ============= Class 3 -- Based on net assets of $180,928,680 and 180,922,956 shares of beneficial interest outstanding .............................................................. $ 1.00 ============= Class 4 -- Based on net assets of $236,357,624 and 236,349,225 shares of beneficial interest outstanding .............................................................. $ 1.00 =============
See Notes to Financial Statements. WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 5 Statement of Operations WCMA Government Securities Fund For the Six Months Ended September 30, 2007 (Unaudited) =================================================================================================================================== Investment Income - ----------------------------------------------------------------------------------------------------------------------------------- Interest from affiliates ....................................................................... $ 68,289 Net investment income allocated from the Master LLC: Interest .................................................................................... 11,689,966 Expenses .................................................................................... (580,602) ------------- Total income ................................................................................... 11,177,653 ------------- =================================================================================================================================== Expenses - ----------------------------------------------------------------------------------------------------------------------------------- Administration fees ............................................................................ $ 581,287 Service and distribution fees -- Class 4 ....................................................... 389,118 Service and distribution fees -- Class 3 ....................................................... 301,796 Service and distribution fees -- Class 2 ....................................................... 273,861 Registration fees .............................................................................. 160,313 Service and distribution fees -- Class 1 ....................................................... 56,491 Printing and shareholder reports ............................................................... 17,732 Professional fees .............................................................................. 11,740 Transfer agent fees -- Class 2 ................................................................. 3,465 Transfer agent fees -- Class 1 ................................................................. 2,697 Transfer agent fees -- Class 4 ................................................................. 2,279 Transfer agent fees -- Class 3 ................................................................. 2,256 Other .......................................................................................... 4,241 ------------- Total expenses before waiver ................................................................... 1,807,276 Waiver of expenses ............................................................................. (576,625) ------------- Total expenses after waiver .................................................................... 1,230,651 ------------- Investment income -- net ....................................................................... 9,947,002 ------------- =================================================================================================================================== Realized & Unrealized Gain Allocated from the Master LLC -- Net - ----------------------------------------------------------------------------------------------------------------------------------- Realized gain on investments -- net ............................................................ 15,862 Change in unrealized appreciation on investments -- net ........................................ 289,536 ------------- Total realized and unrealized gain -- net ...................................................... 305,398 ------------- Net Increase in Net Assets Resulting from Operations ........................................... $ 10,252,400 =============
See Notes to Financial Statements. 6 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 Statements of Changes in Net Assets WCMA Government Securities Fund
For the Six Months Ended For the September 30, Year Ended 2007 March 31, Increase (Decrease) in Net Assets: (Unaudited) 2007 =================================================================================================================================== Operations - ----------------------------------------------------------------------------------------------------------------------------------- Investment income -- net ....................................................................... $ 9,947,002 $ 19,423,516 Realized gain -- net ........................................................................... 15,862 2,576 Change in unrealized appreciation -- net ....................................................... 289,536 151,984 ------------------------------- Net increase in net assets resulting from operations ........................................... 10,252,400 19,578,076 ------------------------------- =================================================================================================================================== Dividends & Distributions to Shareholders - ----------------------------------------------------------------------------------------------------------------------------------- Investment income -- net: Class 1 ..................................................................................... (195,322) (511,697) Class 2 ..................................................................................... (1,647,063) (3,778,640) Class 3 ..................................................................................... (3,532,138) (7,008,543) Class 4 ..................................................................................... (4,572,479) (8,124,636) Realized gain -- net: Class 1 ..................................................................................... -- (38) Class 2 ..................................................................................... -- (219) Class 3 ..................................................................................... -- (332) Class 4 ..................................................................................... -- (360) ------------------------------- Net decrease in net assets resulting from dividends and distributions to shareholders .......... (9,947,002) (19,424,465) ------------------------------- =================================================================================================================================== Beneficial Interest Transactions - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets derived from beneficial interest transactions ............ 47,721,236 (40,234,908) ------------------------------- =================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets ........................................................ 48,026,634 (40,081,297) Beginning of period ............................................................................ 460,905,426 500,986,723 ------------------------------- End of period .................................................................................. $ 508,932,060 $ 460,905,426 ===============================
See Notes to Financial Statements. WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 7 Financial Highlights WCMA Government Securities Fund
Class 1 ----------------------------------------------------------------------- For the Six For the Period Months Ended For the Year Ended March 20, September 30, March 31, 2003+ to The following per share data and ratios have been derived 2007 --------------------------------------- March 31, from information provided in the financial statements. (Unaudited) 2007 2006 2005 2004 2003 =================================================================================================================================== Per Share Operating Performance - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ----------------------------------------------------------------------- Investment income -- net ....................... .1712 .0351 .0199 .0027 .0004 .0003 Realized and unrealized gain (loss) -- net ..... .0012 .0003 .0001 (.0012) (.0002) .0002 ----------------------------------------------------------------------- Total from investment operations ............... .1724 .0354 .0200 .0015 .0002 .0005 ----------------------------------------------------------------------- Less dividends and distributions: Investment income -- net .................... (.1712) (.0351) (.0199) (.0027) (.0004) (.0003) Realized gain -- net ........................ -- --*** --*** --*** (.0001) -- ----------------------------------------------------------------------- Total dividends and distributions .............. (.1712) (.0351) (.0199) (.0027) (.0005) (.0003) ----------------------------------------------------------------------- Net asset value, end of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ----------------------------------------------------------------------- Total investment return ........................ 1.73%++ 3.55% 2.01% .27% .05% .05% ======================================================================= =================================================================================================================================== Ratios to Average Net Assets** - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses, net of waiver and reimbursement 1.62%* 1.59% 1.59% 1.41% 1.09% .02% ======================================================================= Total expenses ................................. 1.62%* 1.59% 1.59% 1.60% 1.58% .02% ======================================================================= Total investment income and realized gain -- net 3.44%* 3.51% 1.99% .24% .04% .03% ======================================================================= =================================================================================================================================== Supplemental Data - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) ....... $ 11,542 $ 11,122 $ 18,837 $ 16,718 $ 22,260 $ 25 =======================================================================
* Annualized. ** Includes the Fund's share of the Master LLC's allocated expenses and/or investment income and realized gain. *** Amount is less than $(.0001) per share. + Effective date of the Fund's registration. ++ Aggregate total investment return. See Notes to Financial Statements. 8 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 Financial Highlights (continued) WCMA Government Securities Fund
Class 2 ----------------------------------------------------------------------- For the Six For the Period Months Ended For the Year Ended March 20, September 30, March 31, 2003+ to The following per share data and ratios have been derived 2007 --------------------------------------- March 31, from information provided in the financial statements. (Unaudited) 2007 2006 2005 2004 2003 =================================================================================================================================== Per Share Operating Performance - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ----------------------------------------------------------------------- Investment income -- net ....................... .0201 .0407 .0259 .0070 .0015 .0003 Realized and unrealized gain (loss) -- net ..... .0010 .0004 .0001 (.0011) (.0001) .0002 ----------------------------------------------------------------------- Total from investment operations ............... .0211 .0411 .0260 .0059 .0014 .0005 ----------------------------------------------------------------------- Less dividends and distributions: Investment income -- net .................... (.0201) (.0407) (.0259) (.0070) (.0015) (.0003) Realized gain -- net ........................ -- --*** --*** --*** (.0001) -- ----------------------------------------------------------------------- Total dividends and distributions .............. (.0201) (.0407) (.0259) (.0070) (.0016) (.0003) ----------------------------------------------------------------------- Net asset value, end of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======================================================================= Total investment return ........................ 2.04%++ 4.13% 2.63% .70% .16% .05% ======================================================================= =================================================================================================================================== Ratios to Average Net Assets** - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses, net of waiver and reimbursement 1.02%* 1.03% .99% .98% .97% .02% ======================================================================= Total expenses ................................. 1.26%* 1.28% 1.27% 1.28% 1.26% .02% ======================================================================= Total investment income and realized gain -- net 4.04%* 4.07% 2.58% .68% .15% .03% ======================================================================= =================================================================================================================================== Supplemental Data - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) ....... $ 80,104 $ 82,655 $115,872 $119,718 $137,566 $ 25 =======================================================================
* Annualized. ** Includes the Fund's share of the Master LLC's allocated expenses and/or investment income and realized gain. *** Amount is less than $(.0001) per share. + Effective date of the Fund's registration. ++ Aggregate total investment return. See Notes to Financial Statements. WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 9 Financial Highlights (continued) WCMA Government Securities Fund
Class 3 ----------------------------------------------------------------------- For the Six For the Period Months Ended For the Year Ended March 20, September 30, March 31, 2003+ to The following per share data and ratios have been derived 2007 --------------------------------------- March 31, from information provided in the financial statements. (Unaudited) 2007 2006 2005 2004 2003 =================================================================================================================================== Per Share Operating Performance - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ----------------------------------------------------------------------- Investment income -- net ....................... .0217 .0439 .0291 .0102 .0047 .0003 Realized and unrealized gain (loss) -- net ..... .0009 .0004 .0001 (.0010) (.0001) .0002 ----------------------------------------------------------------------- Total from investment operations ............... .0226 .0443 .0292 .0092 .0046 .0005 ----------------------------------------------------------------------- Less dividends and distributions: Investment income -- net .................... (.0217) (.0439) (.0291) (.0102) (.0047) (.0003) Realized gain -- net ........................ -- --*** --*** --*** (.0001) -- ----------------------------------------------------------------------- Total dividends and distributions .............. (.0217) (.0439) (.0291) (.0102) (.0048) (.0003) ----------------------------------------------------------------------- Net asset value, end of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======================================================================= Total investment return ........................ 2.20%++ 4.47% 2.96% 1.03% .48% .05% ======================================================================= =================================================================================================================================== Ratios to Average Net Assets** - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses, net of waiver and reimbursement .70%* .71% .67% .66% .65% .02% ======================================================================= Total expenses ................................. .96%* .98% .97% .98% .96% .02% ======================================================================= Total investment income and realized gain -- net 4.36%* 4.41% 2.88% 1.01% .48% .03% ======================================================================= =================================================================================================================================== Supplemental Data - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) ....... $180,929 $158,327 $158,500 $193,195 $224,278 $ 25 =======================================================================
* Annualized. ** Includes the Fund's share of the Master LLC's allocated expenses and/or investment income and realized gain. *** Amount is less than $(.0001) per share. + Effective date of the Fund's registration. ++ Aggregate total investment return. See Notes to Financial Statements. 10 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 Financial Highlights (concluded) WCMA Government Securities Fund
Class 4 ----------------------------------------------------------------------- For the Six For the Period Months Ended For the Year Ended March 20, September 30, March 31, 2003+ to The following per share data and ratios have been derived 2007 --------------------------------------- March 31, from information provided in the financial statements. (Unaudited) 2007 2006 2005 2004 2003 =================================================================================================================================== Per Share Operating Performance - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ----------------------------------------------------------------------- Investment income -- net ....................... .0217 .0439 .0291 .0102 .0047 .0003 Realized and unrealized gain (loss) -- net ..... .0002 .0003 .0002 (.0012) --++ .0002 ----------------------------------------------------------------------- Total from investment operations ............... .0219 .0442 .0293 .0090 .0047 .0005 ----------------------------------------------------------------------- Less dividends and distributions: Investment income -- net .................... (.0217) (.0439) (.0291) (.0102) (.0047) (.0003) Realized gain -- net ........................ -- --*** --*** --*** --*** -- ----------------------------------------------------------------------- Total dividends and distributions .............. (.0217) (.0439) (.0291) (.0102) (.0047) (.0003) ----------------------------------------------------------------------- Net asset value, end of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======================================================================= Total investment return ........................ 2.20%+++ 4.47% 2.96% 1.03% .47% .05% ======================================================================= =================================================================================================================================== Ratios to Average Net Assets** - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses, net of waiver and reimbursement .70%* .71% .67% .66% .65% .02% ======================================================================= Total expenses ................................. .95%* .98% .98% .97% .96% .02% ======================================================================= Total investment income and realized gain -- net 4.34%* 4.41% 3.10% .91% .48% .03% ======================================================================= =================================================================================================================================== Supplemental Data - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) ....... $236,358 $208,801 $207,778 $ 81,344 $157,203 $ 25 =======================================================================
* Annualized. ** Includes the Fund's share of the Master LLC's allocated expenses and/or investment income and realized gain. *** Amount is less than $(.0001) per share. + Effective date of the Fund's registration. ++ Amount is less than $.0001 per share. +++ Aggregate total investment return. See Notes to Financial Statements. WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 11 Notes to Financial Statements (Unaudited) WCMA Government Securities Fund 1. Significant Accounting Policies: WCMA Government Securities Fund (the "Fund") is registered under the Investment Company Act of 1940, as amended, as a no load, diversified, open-end management investment company. The Fund seeks to achieve its investment objective by investing all of its assets in Master Government Securities LLC (the "Master LLC"), which has the same investment objective and strategies as the Fund. Effective June 15, 2007, the Master LLC was converted from a Delaware statutory trust to a Delaware limited liability company. The value of the Fund's investment in the Master LLC reflects the Fund's proportionate interest in the net assets of the Master LLC. The performance of the Fund is directly affected by the performance of the Master LLC. The financial statements of the Master LLC, 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 U.S. generally accepted accounting principles, which may require the use of management accruals and estimates. Actual results may differ from these estimates. These unaudited financial statements reflect all adjustments which are, in the opinion of management, necessary to present a fair statement of results for the interim period. All such adjustments are of a normal, recurring nature. The percentage of the Master LLC owned by the Fund at September 30, 2007 was 46.3%. The Fund is divided into four classes, designated Class 1, Class 2, Class 3 and Class 4. Each Class 1, Class 2, Class 3 and Class 4 share represents interests in the same assets of the Fund and has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears certain expenses related to service and the distribution of such shares and the additional incremental transfer agency costs resulting from the conversion of shares and has exclusive voting with respect to matters relating to such shareholder services and distribution expenditures. Income, expenses (other than expenses attributed to a specific class) and realized and unrealized gains and losses on investments are allocated daily to each class based on its relative net assets. The following is a summary of significant accounting policies followed by the Fund. (a) Valuation of investments -- The Fund records its investments in the Master LLC at fair value. Valuation of securities held by the Master LLC is discussed in Note 1(a) of the Master LLC's Notes to Financial Statements, which are included elsewhere in this report. (b) Investment income and expenses -- The Fund records daily its proportionate share of the Master LLC's income, expenses and realized and unrealized gains and losses. In addition, the Fund accrues its own income and expenses. (c) Income taxes -- It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. (d) Prepaid registration fees -- Prepaid registration fees are charged to expense as the related shares are issued. (e) Dividends and distributions to shareholders -- The Fund declares dividends daily and reinvests daily such dividends (net of non-resident alien tax and backup withholding tax withheld) in additional Fund shares at net asset value. Dividends are declared from the total of net investment income. Distributions of net realized gain, if any, on investments are paid at least annually. (f) Investment transactions -- Investment transactions in the Master LLC are accounted for on a trade date basis. (g) Recent accounting pronouncements -- Effective September 30, 2007, the Fund implemented Financial Accounting Standards Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. Management has evaluated the application of FIN 48 to the Fund, and has determined that the adoption of FIN 48 does not have a material impact on the Fund's financial statements. The Fund files U.S. and various state tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund's tax returns remains open for the years ended March 31, 2004 through March 31, 2007. In September 2006, Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. At this time, management is evaluating the implications of FAS 157 and its impact on the Fund's financial statements, if any, has not been determined. In addition, in February 2007, FASB Statement of Financial Accounting Standards No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities" ("FAS 159"), was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. At this time, management is evaluating the implications of FAS 159 and its impact on the Fund's financial statements, if any, has not been determined. 12 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 Notes to Financial Statements (continued) WCMA Government Securities Fund 2. Transactions with Affiliates: The Fund has entered into an Administration Agreement with BlackRock Advisors, LLC (the "Administrator"), an indirect, wholly owned subsidiary of BlackRock, Inc. The Fund pays a monthly fee at an annual rate of .25% of the Fund's average daily net assets for the performance of administrative services (other than investment advice and related portfolio activities) necessary for the operation of the Fund. Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC Financial Services Group, Inc. ("PNC") are principal owners of BlackRock, Inc. Pursuant to the Distribution and Shareholder Servicing Plans in compliance with Rule 12b-1 under the Investment Company Act of 1940, the Fund may pay Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned subsidiary of Merrill Lynch and/or affiliates of PNC or Merrill Lynch (including BlackRock, Inc.), service fees and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the shares of the Fund as follows: - ------------------------------------------------------------------------------- Service Distribution Fee Fee - ------------------------------------------------------------------------------- Class 1 ..................................... .25% .75% Class 2 ..................................... .25% .425% Class 3 ..................................... .25% .125% Class 4 ..................................... .25% .125% - ------------------------------------------------------------------------------- The ongoing service fee compensates MLPF&S for providing shareholder services to respective shareholders. The ongoing distribution fee compensates MLPF&S for providing shareholder and distribution related services to respective shareholders. The Fund has entered into a contractual arrangement with the Administrator and MLPF&S to waive and/or reimburse a portion of the Fund's fees and expenses to ensure that the net expenses for the Fund's Class 2 Shares is ..32% higher than that of CMA Government Fund, and Class 3 and Class 4 Shares is equal to that of CMA Government Fund. The fee/expense waiver or reimbursement includes service and distribution fees. This arrangement has a one-year term and is renewable. For the six months ended September 30, 2007, MLPF&S earned fees of $1,021,266 of which $576,625 was waived. Financial Data Services, Inc. ("FDS"), a wholly owned subsidiary of Merrill Lynch, is the Fund's transfer agent. Interest is earned by the Fund from FDS based on the difference, if any, between estimated and actual daily beneficial share activity, which results in uninvested net proceeds from sales of Fund shares. Certain officers and/or trustees of the Fund are officers and/or directors of BlackRock, Inc. or its affiliates. 3. Beneficial Interest Transactions: Net increase (decrease) in net assets derived from beneficial interest transactions was $47,721,236 and $(40,234,908) for the six months ended September 30, 2007 and for the year ended March 31, 2007, respectively. Transactions in shares of beneficial interests for each class were as follows: - -------------------------------------------------------------------------------- Class 1 Shares for the Six Months Dollar Ended September 30, 2007 Shares Amount - -------------------------------------------------------------------------------- Shares sold .............................. 44,114,308 $ 44,114,308 Shares issued to shareholders in reinvestment of dividends ............. 195,324 195,324 ------------------------------ Total issued ............................. 44,309,632 44,309,632 Shares redeemed .......................... (43,903,270) (43,903,270) ------------------------------ Net increase ............................. 406,362 $ 406,362 ============================== - -------------------------------------------------------------------------------- Class 1 Shares for the Year Dollar Ended March 31, 2007 Shares Amount - -------------------------------------------------------------------------------- Shares sold .............................. 185,188,568 $ 185,188,568 Shares issued to shareholders in reinvestment of dividends and distributions ..................... 511,729 511,729 ------------------------------ Total issued ............................. 185,700,296 185,700,296 Shares redeemed .......................... (193,419,437) (193,419,437) ------------------------------ Net decrease ............................. (7,719,141) $ (7,719,141) ============================== - -------------------------------------------------------------------------------- Class 2 Shares for the Six Months Dollar Ended September 30, 2007 Shares Amount - -------------------------------------------------------------------------------- Shares sold .............................. 280,985,836 $ 280,985,836 Shares issued to shareholders in reinvestment of dividends ............. 1,647,064 1,647,064 ------------------------------ Total issued ............................. 282,632,900 282,632,900 Shares redeemed .......................... (285,269,063) (285,269,063) ------------------------------ Net decrease ............................. (2,636,163) $ (2,636,163) ============================== - -------------------------------------------------------------------------------- Class 2 Shares for the Year Dollar Ended March 31, 2007 Shares Amount - -------------------------------------------------------------------------------- Shares sold .............................. 551,349,244 $ 551,349,244 Shares issued to shareholders in reinvestment of dividends and distributions ..................... 3,778,866 3,778,866 ------------------------------ Total issued ............................. 555,128,110 555,128,110 Shares redeemed .......................... (588,378,499) (588,378,499) ------------------------------ Net decrease ............................. (33,250,389) $ (33,250,389) ============================== WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 13 Notes to Financial Statements (concluded) WCMA Government Securities Fund - -------------------------------------------------------------------------------- Class 3 Shares for the Six Months Dollar Ended September 30, 2007 Shares Amount - -------------------------------------------------------------------------------- Shares sold ............................ 508,453,758 $ 508,453,758 Shares issued to shareholders in reinvestment of dividends ........... 3,532,138 3,532,138 --------------------------------- Total issued ........................... 511,985,896 511,985,896 Shares redeemed ........................ (489,536,637) (489,536,637) --------------------------------- Net increase ........................... 22,449,259 $ 22,449,259 ================================= - -------------------------------------------------------------------------------- Class 3 Shares for the Year Dollar Ended March 31, 2007 Shares Amount - -------------------------------------------------------------------------------- Shares sold ............................ 1,183,649,416 $ 1,183,649,416 Shares issued to shareholders in reinvestment of dividends and distributions ................... 7,008,875 7,008,875 --------------------------------- Total issued ........................... 1,190,658,291 1,190,658,291 Shares redeemed ........................ (1,190,888,128) (1,190,888,128) --------------------------------- Net decrease ........................... (229,837) $ (229,837) ================================= - -------------------------------------------------------------------------------- Class 4 Shares for the Six Months Dollar Ended September 30, 2007 Shares Amount - -------------------------------------------------------------------------------- Shares sold ............................ 762,446,124 $ 762,446,124 Shares issued to shareholders in reinvestment of dividends ........... 4,572,478 4,572,478 --------------------------------- Total issued ........................... 767,018,602 767,018,602 Shares redeemed ........................ (739,516,824) (739,516,824) --------------------------------- Net increase ........................... 27,501,778 $ 27,501,778 ================================= - -------------------------------------------------------------------------------- Class 4 Shares for the Year Dollar Ended March 31, 2007 Shares Amount - -------------------------------------------------------------------------------- Shares sold ............................ 1,149,612,238 $ 1,149,612,238 Shares issued to shareholders in reinvestment of dividends and distributions ................... 8,124,996 8,124,996 --------------------------------- Total issued ........................... 1,157,737,234 1,157,737,234 Shares redeemed ........................ (1,156,772,775) (1,156,772,775) --------------------------------- Net increase ........................... 964,459 $ 964,459 ================================= Proxy Results During the six-month period ended September 30, 2007, the shareholders of WCMA Government Securities Fund voted on the following proposal, which was approved at a special shareholders' meeting on August 23, 2007. This proposal was part of the reorganization of the Fund's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted for each Director are as follows:
- ---------------------------------------------------------------------------------------------- Shares Voted Shares Withheld For From Voting - ---------------------------------------------------------------------------------------------- To elect the Fund's David O. Beim, Richard S. Davis, Board of Directors: Ronald W. Forbes, Henry Gabbay, Dr. Matina Horner, Rodney D. Johnson, Herbert I. London, Cynthia A. Montgomery, Joseph P. Platt, Jr., Robert C. Robb, Jr., Toby Rosenblatt, Kenneth L. Urish, Frederick W. Winter 446,963,321 29,104 - ----------------------------------------------------------------------------------------------
14 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 Portfolio Summary Master Government Securities LLC Portfolio Composition as a Percent of Net Assets As of ------------------ 9/30/07 3/31/07 - ------------------------------------------------------------------------------ Repurchase Agreements ................ 73.9% 78.4% U.S. Government Obligations .......... 25.6 21.4 Other Assets Less Liabilities ........ 0.5 0.2 ------------------ Total ................................ 100.0% 100.0% ================== WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 15 Schedule of Investments as of September 30, 2007 (Unaudited) Master Government Securities LLC (in Thousands) Face Interest Maturity Issue Amount Rate Date Value ================================================================================ U.S.Government=Obligations* -- 25.6% ================================================================================ U.S. Treasury Bills $112,720 2.55- 4.784% 10/04/2007 $ 112,653 87,080 3.897- 4.82 10/11/2007 86,949 8,891 3.42 11/23/2007 8,844 26,239 3.9- 4.01 12/06/2007 26,043 8,263 3.635 12/27/2007 8,188 9,000 4.00 1/17/2008 8,889 - -------------------------------------------------------------------------------- U.S. Treasury Notes 30,000 4.25 11/30/2007 30,015 - -------------------------------------------------------------------------------- Total U.S. Government Obligations (Cost -- $281,581) ............................................. 281,581 - -------------------------------------------------------------------------------- Face Amount Issue ================================================================================ Repurchase Agreements*** -- 73.9% ================================================================================ $53,000 Banc of America Securities LLC, purchased on 9/26/2007 to yield 4.60% to 10/03/2007, repurchase price $53,047, collateralized by GNMA, 6.50% due 9/20/2037 ................ 53,000 - -------------------------------------------------------------------------------- 55,300 Barclays Capital Inc., purchased on 9/28/2007 to yield 3.95% to 10/01/2007, repurchase price $55,318, collateralized by U.S. Treasury Inflation Bond, 2.38% due 1/15/2025 .............................................. 55,300 - -------------------------------------------------------------------------------- 55,300 Bear, Stearns Co., Inc., purchased on 9/28/2007 to yield 3.95% to 10/01/2007, repurchase price $55,318, collateralized by Treasury Inflation Protected Security, 3.625% due 4/15/2028 ....................................... 55,300 - -------------------------------------------------------------------------------- 53,000 Citigroup Global Markets Inc., purchased on 9/26/2007 to yield 4.74% to 10/03/2007, repurchase price $53,049, collateralized by GNMA, 5.50% due 5/15/2037 ................ 53,000 - -------------------------------------------------------------------------------- 57,000 Credit Suisse Securities (USA) LLC, purchased on 9/25/2007 to yield 4.71% to 10/02/2007, repurchase price $57,052, collateralized by GNMA, 5.50% to 7.50% due 4/20/2030 to 9/20/2037 ............................................... 57,000 - -------------------------------------------------------------------------------- 53,000 Deutsche Bank Securities Inc., purchased on 9/26/2007 to yield 4.70% to 10/03/2007, repurchase price $53,048, collateralized by GNMA, 4% to 8.50% due 6/15/2009 to 08/15/2049 .............................................. 53,000 - -------------------------------------------------------------------------------- 52,500 Goldman, Sachs & Co. , purchased on 9/13/2007 to yield 4.80% to 10/15/2007, repurchase price $52,724, collateralized by GNMA, 5% to 6.50% due 9/15/2031 to 10/15/2036 .............................................. 52,500 - -------------------------------------------------------------------------------- 53,000 Greenwich Capital Markets, Inc., purchased on 9/26/2007 to yield 4.70% to 10/03/2007, repurchase price $53,048, collateralized by GNMA, 4.50% to 10.50% due 8/15/2008 to 2/15/2048 ................................. 53,000 - -------------------------------------------------------------------------------- 55,275 HSBC Securities (USA) Inc., purchased on 9/28/2007 to yield 4.90% to 10/01/2007, repurchase price $55,298, collateralized by GNMA, 5% to 7% due 09/15/2036 to 09/15/2037 .............................................. 55,275 - -------------------------------------------------------------------------------- 57,000 J.P. Morgan Securities Inc., purchased on 9/25/2007 to yield 4.60% to 10/02/2007, repurchase price $57,051, collateralized by GNMA, 5% to 6% due 05/15/2035 to 10/15/2036 .............................................. 57,000 - -------------------------------------------------------------------------------- 57,000 Lehman Brothers Inc., purchased on 9/25/2007 to yield 4.50% to 10/02/2007, repurchase price $57,050, collateralized by GNMA, 4.50% to 11% due 2/20/2009 to 9/15/2037 ................................. 57,000 - -------------------------------------------------------------------------------- 53,000 Merrill Lynch Government Securities Inc., purchased on 9/26/2007 to yield 4.25% to 10/03/2007, repurchase price $53,044, collateralized by GNMA, 5% to 9.50% due 8/15/2009 to 7/15/2037 (a) ................................. 53,000 - -------------------------------------------------------------------------------- 53,000 Mizuho Securities USA Inc., purchased on 9/26/2007 to yield 4.15% to 10/03/2007, repurchase price $53,043, collateralized by U.S. Treasury Note, 4.50% to 4.88% due 5/31/2008 to 8/31/2011 ................................. 53,000 - -------------------------------------------------------------------------------- 53,000 Morgan Stanley & Co. Incorporated, purchased on 9/26/2007 to yield 4.25% to 10/03/2007, repurchase price $53,044, collateralized by GNMA, 5.50% to 11.50% due 2/15/2009 to 10/15/2035 ................................ 53,000 - -------------------------------------------------------------------------------- 53,000 UBS Securities LLC, purchased on 9/26/2007 to yield 4.55% to 10/03/2007, repurchase price $53,047, collateralized by GNMA, 4.50% to 12% due 6/15/2009 to 7/15/2037 ................................. 53,000 - -------------------------------------------------------------------------------- Total Repurchase Agreements (Cost -- $813,375) .................................................. 813,375 - -------------------------------------------------------------------------------- Total Investments (Cost -- $1,094,956**) -- 99.5% ................... 1,094,956 Other Assets Less Liabilities -- 0.5% ............................... 5,487 ---------- Net Assets -- 100.0% ................................................ $1,100,443 ========== * U.S. Treasury Bills are traded on a discount basis; the interest rates shown are the discount rates paid at the time of purchase by the Fund. U.S. Treasury Notes bear interest at the rates shown, payable at fixed dates until maturity. ** Cost for federal income tax purposes. *** Repurchase Agreements are fully collateralized by U.S. Government Obligations. + Separately Traded Registered Interest and Principal of Securities (STRIPS). (a) Investments in companies considered to be an affiliate of the Master LLC, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: - -------------------------------------------------------------------------------- Net Interest Affiliate Activity Income - -------------------------------------------------------------------------------- Merrill Lynch Government Securities Inc. $4,100 $1,252 - -------------------------------------------------------------------------------- See Notes to Financial Statements. 16 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 Statement of Assets and Liabilities Master Government Securities LLC As of September 30, 2007 (Unaudited) =================================================================================================================================== Assets - ----------------------------------------------------------------------------------------------------------------------------------- Investments in repurchase agreements, at value (including $53,000,000 in affiliates) (identified cost -- $813,375,000) .......................................................... $ 813,375,000 Investments in unaffiliated securities, at value (identified cost -- $281,580,699) ......... 281,580,699 Cash ....................................................................................... 25,385 Receivables: Contributions .............................................................................. $ 4,981,047 Interest (including $12,514 from affiliates) ............................................... 694,530 5,675,577 ------------- Prepaid expenses ........................................................................... 9,020 ------------- Total assets ............................................................................... 1,100,665,681 ==================================================================================================================================== Liabilities - ------------------------------------------------------------------------------------------------------------------------------------ Investment adviser payable ................................................................. 170,922 Accrued expenses ........................................................................... 51,318 -------------- Total liabilities .......................................................................... 222,240 -------------- ==================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Net Assets ................................................................................. $1,100,443,441 ============== ==================================================================================================================================== Net Assets Consist of - ------------------------------------------------------------------------------------------------------------------------------------ Investors' capital ......................................................................... $1,100,443,441 -------------- Net assets ................................................................................. $1,100,443,441 ==============
See Notes to Financial Statements. WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 17 Statement of Operations Master Government Securities LLC For the Six Months Ended September 30, 2007 (Unaudited) =================================================================================================================================== Investment Income - ----------------------------------------------------------------------------------------------------------------------------------- Interest (includes $1,251,720 from affiliates) ............................................. $ 24,334,183 =================================================================================================================================== Expenses - ----------------------------------------------------------------------------------------------------------------------------------- Investment advisory fees ................................................................... $ 1,029,466 Accounting services ........................................................................ 89,052 Custodian fees ............................................................................. 30,707 Professional fees .......................................................................... 26,244 Directors' fees and expenses ............................................................... 17,504 Pricing fees ............................................................................... 1,786 Printing and shareholder reports ........................................................... 141 Other ...................................................................................... 13,668 ------------- Total expenses ............................................................................. 1,208,568 ------------- Investment income -- net ................................................................... 23,125,615 ------------- =================================================================================================================================== Realized & Unrealized Gain (Loss) -- Net - ----------------------------------------------------------------------------------------------------------------------------------- Realized gain on investments -- net ........................................................ 33,663 Change in unrealized appreciation on investments -- net .................................... (27,831) ------------- Total realized and unrealized gain -- net .................................................. 5,832 ------------- Net Increase in Net Assets Resulting from Operations ....................................... $ 23,131,447 =============
See Notes to Financial Statements. 18 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 Statements of Changes in Net Assets Master Government Securities LLC
For the Six Months Ended For the September 30, Year Ended 2007 March 31, Increase (Decrease) in Net Assets: (Unaudited) 2007 =================================================================================================================================== Operations - ----------------------------------------------------------------------------------------------------------------------------------- Investment income -- net ............................................................. $ 23,125,615 $ 45,035,528 Realized gain -- net ................................................................. 33,663 4,743 Change in unrealized appreciation -- net ............................................. (27,831) 319,061 -------------------------------------- Net increase in net assets resulting from operations ................................. 23,131,447 45,359,332 -------------------------------------- =================================================================================================================================== Capital Transactions - ----------------------------------------------------------------------------------------------------------------------------------- Proceeds from contributions .......................................................... 2,916,556,724 5,153,023,736 Fair value of withdrawals ............................................................ (2,803,657,391) (5,202,779,172) -------------------------------------- Net increase (decrease) in net assets derived from capital transactions .............. 112,899,333 (49,755,436) -------------------------------------- =================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets .............................................. 136,030,780 (4,396,104) Beginning of period .................................................................. 964,412,661 968,808,765 -------------------------------------- End of period ........................................................................ $ 1,100,443,441 $ 964,412,661 ======================================
Financial Highlights Master Government Securities LLC
For the Six For the Period Months Ended For the Year Ended February 13, September 30, March 31, 2003+ to The following ratios have been derived from 2007 --------------------------------------------------- March 31, information provided in the financial statements. (Unaudited) 2007 2006 2005 2004 2003 ================================================================================================================================== Total Investment Return - ---------------------------------------------------------------------------------------------------------------------------------- Total investment return .................. 2.42++ 4.90% 3.37% 1.44% .94% .75%* ================================================================================ ================================================================================================================================== Ratios to Average Net Assets - ---------------------------------------------------------------------------------------------------------------------------------- Expenses ................................. .25%* .26% .26% .25% .22% .26%* ================================================================================ Investment income and realized gain -- net 4.77%* 4.84% 3.31% 1.39% .94% 1.08%* ================================================================================ ================================================================================================================================== Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) . $1,100,443 $ 964,413 $ 968,809 $ 936,566 $1,194,238 $1,585,194 ================================================================================
* Annualized. + Commencement of operations. ++ Aggregate total investment return. See Notes to Financial Statements. WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 19 Notes to Financial Statements (Unaudited) Master Government Securities LLC 1. Significant Accounting Policies: Master Government Securities LLC (the "Master LLC") is registered under the Investment Company Act of 1940, as amended, and is organized as a Delaware limited liability company. Prior to June 15, 2007, the Master LLC was organized as a Delaware statutory trust (the "Trust"). The Limited Liability Company Agreement permits the Directors (and prior to June 15, 2007, the Declaration of Trust permits the Trustees) to issue non- transferable interests in the Master LLC/Trust, subject to certain limitations. Throughout this report, the Trust and the Master LLC are referred to as the Master LLC and the Board of Trustees is referred to as the Board of Directors. The Master LLC's financial statements are prepared in conformity with U.S. generally accepted accounting principles, which may require the use of management accruals and estimates. Actual results may differ from these estimates. These unaudited financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the results for the interim period. The following is a summary of significant accounting policies followed by the Master LLC. (a) Valuation of investments -- Portfolio securities may be valued at amortized cost, which approximates market value. Other investments and assets for which market value quotations are not available are valued at fair value as determined in good faith by or under the direction of the Board of Directors. (b) Repurchase agreements -- The Master LLC may invest in U.S. government and agency securities pursuant to repurchase agreements. Under such agreements, the counterparty agrees to repurchase the security at a mutually agreed upon time and price. The counterparty will be required on a daily basis to maintain the value of the securities subject to the agreement at no less than the repurchase price. The agreements are conditioned upon the collateral being deposited under the Federal Reserve book entry system or held in a segregated account by the Fund's custodian. If the counterparty defaults and the fair value of the collateral declines, liquidation of the collateral by the Fund may be delayed or limited. (c) Income taxes -- The Master LLC is classified as a partnership for federal income tax purposes. As such, each investor in the Master LLC is treated as owner of its proportionate share of the net assets, income, expenses and realized and unrealized gains and losses of the Master LLC. Therefore, no federal income tax provision is required. It is intended that the Master LLC's assets will be managed so an investor in the Master LLC can satisfy the requirements of Subchapter M of the Internal Revenue Code. (d) Security transactions and investment income -- Security transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Interest income (including amortization of premium and discount) is recognized on the accrual basis. (e) Recent accounting pronouncements -- Effective September 30, 2007, the Master LLC implemented Financial Accounting Standards Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. Management has evaluated the application of FIN 48 to the Master LLC, and has determined that the adoption of FIN 48 does not have a material impact on the Master LLC's financial statements. The Master LLC files U.S. and various state tax returns. No income tax returns are currently under examination. The statute of limitations on the Master LLC's tax returns remains open for the years ended March 31, 2004 through March 31, 2007. In September 2006, Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. At this time, management is evaluating the implications of FAS 157 and its impact on the Master LLC's financial statements, if any, has not been determined. In addition, in February 2007, FASB Statement of Financial Accounting Standards No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities" ("FAS 159"), was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. At this time, management is evaluating the implications of FAS 159 and its impact on the Master LLC's financial statements, if any, has not been determined. 20 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 Notes to Financial Statements (concluded) Master Government Securities LLC 2. Investment Advisory Agreement and Transactions with Affiliates: The Master LLC has entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the "Manager"), an indirect, wholly owned subsidiary of BlackRock, Inc. Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC Financial Services Group, Inc. are principal owners of BlackRock, Inc. The Manager is responsible for the management of the Master LLC's portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Master LLC. For such services, the Master LLC pays a monthly fee based upon the average daily value of the Master LLC's net assets at the following annual rates: .25% of the Master LLC's average daily net assets not exceeding $500 million; .175% of the average daily net assets in excess of $500 million, but not exceeding $1 billion; and .125% of the average daily net assets in excess of $1 billion. In addition, the Manager has entered into a Sub-Advisory Agreement with BlackRock Institutional Management Corporation, an affiliate of the Manager, under which the Manager pays the Sub-Adviser for services it provides a monthly fee at an annual rate that is a percentage of the management fee paid to the Manager. The Master LLC has received an exemptive order from the Securities and Exchange Commission permitting it to lend portfolio securities to Merrill Lynch, Pierce, Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, or its affiliates. Pursuant to that order, the Master LLC has retained BlackRock Investment Management, LLC ("BIM"), an affiliate of the Manager, as the securities lending agent for a fee based on a share of the returns on investment of cash collateral. BIM may, on behalf of the Master LLC, invest cash collateral received by the Master LLC 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. For the six months ended September 30, 2007, the Master LLC reimbursed the Manager $8,795 for certain accounting services. Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock, Inc. or its affiliates. Proxy Results During the six-month period ended September 30, 2007, the shareholders of Master Government Securities LLC voted on the following proposal, which was approved at a special shareholders' meeting on September 7, 2007. This proposal was a part of the reorganization of the Master LLC's Board of Directors to take effect on or about November 1, 2007. A description of the proposal and number of shares voted are as follows:
- ------------------------------------------------------------------------------------------------------------------ Shares Voted Shares Withheld For From Voting - ------------------------------------------------------------------------------------------------------------------ To elect the Master LLC's Board of Directors: David O. Beim 876,453,033 1,408,964 Richard S. Davis 876,968,825 893,172 Ronald W. Forbes 876,968,825 893,172 Henry Gabbay 876,453,037 1,408,960 Dr. Matina Horner 876,453,037 1,408,960 Rodney D. Johnson 876,968,825 893,172 Herbert I. London 876,968,825 893,172 Cynthia A. Montgomery 876,968,821 893,176 Joseph P. Platt, Jr. 876,968,825 893,172 Robert C. Robb, Jr. 876,968,821 893,176 Toby Rosenblatt 876,453,033 1,408,964 Kenneth L. Urish 876,968,825 893,172 Frederick W. Winter 876,453,037 1,408,960
WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 21 Officers and Directors as of September 30, 2007 Robert C. Doll, Jr., Fund President and Director Ronald W. Forbes, Director Cynthia A. Montgomery, Director Jean Margo Reid, Director Roscoe S. Suddarth, Director Richard R. West, Director Donald C. Burke, Vice President and Treasurer Karen Clark, Chief Compliance Officer Howard Surloff, Secretary Custodian State Street Bank and Trust Company P.O. Box 351 Boston, MA 02101 Transfer Agent Financial Data Services, Inc. 4800 Deer Lake Drive East Jacksonville, FL 32246-6484 800-221-7210* * For inquiries regarding your WCMA account, call 800-262-4636. 22 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 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 Web sites. BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose. We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information. Availability of Quarterly Schedule of Investments The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are available on the SEC's Web site at http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Electronic Delivery Electronic copies of most financial reports and prospectuses are available on the Fund's Web site. 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. Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages: Please contact your financial advisor to enroll. Please note that not all investment advisers, banks or brokerages may offer this service. WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2007 23 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. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Performance data quoted represents past performance and does not guarantee future results. Total return information assumes reinvestment of all distributions. Current performance may be higher or lower than the performance data quoted. For current month-end performance information, call 1-800-882-0052. The Fund's current 7-day yield more closely reflects the current earnings of the Fund than the total returns quoted. Statements and other information herein are as dated and are subject to change. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free 1-800-441-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission's Web site at http://www.sec.gov. Information about how the Fund voted proxies relating to securities held in the Fund's portfolio during the most recent 12-month period ended June 30 is available (1) at www.blackrock.com and (2) on the Securities and Exchange Commission's Web site at http://www.sec.gov. WCMA Government Securities Fund P.O. Box 9011 Princeton, NJ 08543-9011 #WCMAGS -- 9/07 Item 2 - Code of Ethics - Not Applicable to this semi-annual report Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual report Item 4 - Principal Accountant Fees and Services - Not Applicable to this semi-annual report Item 5 - Audit Committee of Listed Registrants - Not Applicable Item 6 - Schedule of Investments - The registrant's Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form. Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies - Not Applicable Item 8 - Portfolio Managers of Closed-End Management Investment Companies - Not Applicable Item 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers - Not Applicable Item 10 - Submission of Matters to a Vote of Security Holders - The registrant's Nominating Committee will consider nominees to the Board recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and set forth the qualifications of the proposed nominee to the registrant's Secretary. There have been no material changes to these procedures. Item 11 - Controls and Procedures 11(a) - The registrant's principal executive and principal financial officers or persons performing similar functions have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities and Exchange Act of 1934, as amended. 11(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12 - Exhibits attached hereto 12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report 12(a)(2) - Certifications - Attached hereto 12(a)(3) - Not Applicable 12(b) - Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. WCMA Government Securities Fund and Master Government Securities LLC By: /s/ Donald C. Burke ------------------- Donald C. Burke, Chief Executive Officer of WCMA Government Securities Fund and Master Government Securities LLC Date: November 20, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Donald C. Burke ------------------- Donald C. Burke, Chief Executive Officer (principal executive officer) of WCMA Government Securities Fund and Master Government Securities LLC Date: November 20, 2007 By: /s/ Neal J. Andrews ------------------- Neal J. Andrews, Chief Financial Officer (principal financial officer) of WCMA Government Securities Fund and Master Government Securities LLC Date: November 20, 2007 EX-99.CERT 2 e602895_ex99-cert.txt 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, Donald C. Burke, Chief Executive Officer (principal executive officer) of WCMA Government Securities Fund and Master Government Securities LLC, certify that: 1. I have reviewed this report on Form N-CSR of WCMA Government Securities Fund and Master Government Securities 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 its 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: November 20, 2007 /s/ Donald C. Burke - ------------------- Donald C. Burke, Chief Executive Officer (principal executive officer) of WCMA Government Securities Fund and Master Government Securities 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 WCMA Government Securities Fund and Master Government Securities LLC, certify that: 1. I have reviewed this report on Form N-CSR of WCMA Government Securities Fund and Master Government Securities 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 its 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: November 20, 2007 /s/ Neal J. Andrews - ------------------- Neal J. Andrews, Chief Financial Officer (principal financial officer) of WCMA Government Securities Fund and Master Government Securities LLC EX-99.1350CERT 3 e602895_ex99-1350cert.txt Exhibit 99.1350CERT Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes Oxley Act Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of WCMA Government Securities Fund and Master Government Securities LLC (together, the "Registrants"), hereby certifies, to the best of his knowledge, that the Registrants' Report on Form N-CSR for the period ended September 30, 2007, (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 each Registrant. Date: November 20, 2007 /s/ Donald C. Burke - ------------------- Donald C. Burke, Chief Executive Officer (principal executive officer) of WCMA Government Securities Fund and Master Government Securities LLC Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of WCMA Government Securities Fund and Master Government Securities LLC (together, the "Registrants"), hereby certifies, to the best of his knowledge, that the Registrants' Report on Form N-CSR for the period ended September 30, 2007, (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 each Registrant. Date: November 20, 2007 /s/ Neal J. Andrews - ------------------- Neal J. Andrews, Chief Financial Officer (principal financial officer) of WCMA Government Securities Fund and Master Government Securities 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. -----END PRIVACY-ENHANCED MESSAGE-----