UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-10331

 

Name of Fund: BlackRock California Municipal Income Trust (BFZ)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock California Municipal Income Trust, 55 East 52nd Street, New York, NY 10055

 

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

 

Date of fiscal year end: 07/31/2010

 

Date of reporting period: 07/31/2010

 

Item 1 – Report to Stockholders

 


 

 

(BLACKROCK LOGO)

July 31, 2010

Annual Report

BlackRock California Investment Quality Municipal Trust Inc. (RAA)

BlackRock California Municipal Income Trust (BFZ)

BlackRock Florida Municipal 2020 Term Trust (BFO)

BlackRock Investment Quality Municipal Income Trust (RFA)

BlackRock Municipal Income Investment Trust (BBF)

BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)

BlackRock New Jersey Municipal Income Trust (BNJ)

BlackRock New York Investment Quality Municipal Trust Inc. (RNY)

BlackRock New York Municipal Income Trust (BNY)

 

 

Not FDIC Insured § No Bank Guarantee § May Lose Value

 




 


 

Table of Contents


 

 

 

 





 

 

Page

 





Dear Shareholder

 

3

 

Annual Report:

 

 

 

Trust Summaries

 

4

 

The Benefits and Risks of Leveraging

 

13

 

Derivative Financial Instruments

 

13

 

Financial Statements:

 

 

 

Schedules of Investments

 

14

 

Statements of Assets and Liabilities

 

42

 

Statements of Operations

 

44

 

Statements of Changes in Net Assets

 

46

 

Statements of Cash Flows

 

51

 

Financial Highlights

 

52

 

Notes to Financial Statements

 

61

 

Report of Independent Registered Public Accounting Firm

 

69

 

Important Tax Information

 

69

 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

 

70

 

Automatic Dividend Reinvestment Plan

 

74

 

Officers and Trustees

 

75

 

Additional Information

 

78

 


 

 

 

 


2

ANNUAL REPORT

JULY 31, 2010

 




 


 

Dear Shareholder

The global economy is continuing to slowly improve, with the United States and emerging markets leading the way; however global and US economic statistics show that the pace of economic growth has trailed off in recent months. Market volatility has remained elevated over the past several months as investors remain uncertain about the future direction of economic growth. The sovereign debt crisis in Europe, slowing growth in China and concerns over the possibility that the United States and other developed markets are heading for a double-dip recession have all acted to depress investor sentiment. It is our view that the recent soft patch of economic data is just that — a slowdown in the pace of recovery and not an indication that the economy is sliding back into recession. In the United States, we expect to see slightly slower economic growth over the next several quarters; however, true double-dip recessions are quite rare, and unless there is a major shock to the economy, we believe the recovery will continue.

Global equity markets have moved unevenly higher since bottoming out in early 2009 as investors were enticed by depressed valuations, improved corporate earnings, and their desire for higher yields. Several significant downturns, however, have occurred — primarily as a result of mixed economic data and concerns about the possibility of prolonged deflation (especially in Europe). As the period drew to a close, equity markets were staging a muted recovery. On a 12-month basis global equities were still showing positive returns thanks to improving corporate revenues and profits and a reasonably strong macro backdrop. From a geographic perspective, US equities have significantly outpaced their international counterparts over the past six and twelve months, as the domestic economic recovery has been more pronounced and credit-related issues have held European markets down. Within the United States, smaller cap stocks have outperformed large caps year-to-date.

In fixed income markets, yields have fluctuated significantly over the past year as economic data has been mixed. Over recent months, risk aversion and credit issues kept interest rates low and US Treasury yields have fallen significantly as investors favored “safe haven” assets. As the period drew to a close, higher-risk fixed income assets performed well due to strong earnings announcements and better-than-expected results on European bank stress tests. Meanwhile, tax-exempt municipal bonds slightly outperformed US investment grade bonds on a 12-month basis, but underperformed year-to-date as investors rotated to the relative safety of Treasuries.

Regarding cash investments, yields on money market securities remain near all-time lows (producing returns only marginally above zero percent), with the Federal Open Market Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an “extended period.”

Against this backdrop, the major market averages posted the following returns:

 

 

 

 

 

 

 

 

Total Returns as of July 31, 2010

 

6-month

 

12-month

 







US large cap equities (S&P 500 Index)

 

3.61

%

 

13.84

%

 









US small cap equities (Russell 2000 Index)

 

8.79

 

 

18.43

 

 









International equities (MSCI Europe, Australasia, Far East Index)

 

(0.62

)

 

6.26

 

 









3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)

 

0.06

 

 

0.16

 

 









US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)

 

7.67

 

 

8.34

 

 









US investment grade bonds (Barclays Capital US Aggregate Bond Index)

 

4.85

 

 

8.91

 

 









Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)

 

4.06

 

 

9.15

 

 









US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)

 

6.72

 

 

23.69

 

 









Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

Although conditions are certainly better than they were a couple of years ago, global financial markets continue to face high volatility while questions about the strength and sustainability of the recovery abound. Through periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. We thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.

Sincerely,

-s- Rob Kapito

Rob Kapito
President, BlackRock Advisors, LLC

 

 

 

 


 

THIS PAGE NOT PART OF YOUR FUND REPORT

 

3




 

 


 

 

Trust Summary as of July 31, 2010

BlackRock California Investment Quality Municipal Trust Inc.


 


Trust Overview


BlackRock California Investment Quality Municipal Trust Inc.’s (RAA) (the “Trust”) investment objective is to provide high current income exempt from regular federal and California income taxes consistent with preservation of capital. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. The Trust invests, under normal market conditions, at least 80% of its assets in securities that are rated investment grade at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. The Board of Trustees and the Trust’s shareholders have approved the liquidation and dissolution of the Trust, which is currently anticipated to liquidate on or about September 30, 2010. Please refer to Note 8 of the Notes to Financial Statements.

No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2010, the Trust returned 27.84% based on market price and 18.24% based on net asset value (“NAV”). For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of 22.90% based on market price and 18.98% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust improved its net income balances during the period by focusing on income accrual, however its relative yield remains inadequate to provide a competitive dividend distribution. A below-average distribution yield detracted from total return results. Cash reserves held in the Trust (mostly during the first half of the period) also detracted as cash underperformed longer maturity coupon bonds in an environment of falling interest rates and tightening spreads. However, the tightening of credit quality spreads boosted performance of the lower-rated sectors of the portfolio. The Trust’s holdings in corporate and health municipals also aided performance. A fully-invested and slightly longer relative duration posture were additive, too, as rates declined over the period. The municipal market benefited from the Build America Bond Program, which effectively moved supply to the taxable market and, thus, alleviated supply pressure in the tax-exempt space. Strong retail demand for municipal bonds improved liquidity, which enabled the Trust to trade more actively and take advantage of opportunities to boost total return.

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

 


Trust Information



 

 

 

 

Symbol on NYSE Amex

 

RAA

 

Initial Offering Date

 

May 28, 1993

 

Yield on Closing Market Price as of July 31, 2010 ($13.59)1

 

5.12%

 

Tax Equivalent Yield2

 

7.88%

 

Current Monthly Distribution per Common Share3

 

$0.058

 

Current Annualized Distribution per Common Share3

 

$0.696

 

Leverage as of July 31, 20104

 

34%

 






 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 13.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




























 

 

7/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

 

$

13.59

 

 

 

$

11.20

 

 

 

 

21.34

%

 

 

$

13.64

 

 

 

$

11.20

 

 

Net Asset Value

 

 

$

13.86

 

 

 

$

12.35

 

 

 

 

12.23

%

 

 

$

14.09

 

 

 

$

12.34

 

 




























The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







County/City/Special District/School District

 

35

%

 

34

%

 

Utilities

 

26

 

 

19

 

 

Health

 

15

 

 

10

 

 

Transportation

 

10

 

 

10

 

 

State

 

8

 

 

10

 

 

Education

 

6

 

 

12

 

 

Corporate

 

 

 

5

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







AAA/Aaa

 

24

%

 

12

%

 

AA/Aa

 

49

 

 

47

 

 

A

 

27

 

 

33

 

 

BBB/Baa

 

 

 

6

 

 

B

 

 

 

2

 

 










 

 

 

 

5

Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.


 

 

 

 


4

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

Trust Summary as of July 31, 2010

BlackRock California Municipal Income Trust

 

 


Trust Overview


BlackRock California Municipal Income Trust’s (BFZ) (the “Trust”) investment objective is to provide current income exempt from regular US federal income and California income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. The Trust invests, under normal market conditions, at least 80% of its assets in municipal obligations that are investment grade quality. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2010, the Trust returned 22.55% based on market price, and 20.15% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of 22.90% based on market price, and 18.98% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust maintains a relatively generous degree of income accrual, which was a positive factor. The tightening of credit quality spreads boosted performance of the lower-rated sectors of the portfolio. The Trust’s holdings in corporate and health municipals also aided performance. A fully-invested and slightly longer relative duration posture were additive, too, as rates declined over the period. The municipal market benefited from the Build America Bond Program, which effectively moved supply to the taxable market and, thus, alleviated supply pressure in the tax-exempt space. Detracting from performance was the Trust’s exposure to zero-coupon bonds, which remained out of favor with investors and underperformed municipal coupon bonds. Cash reserves held in the Trust (mostly during the first half of the period) also detracted as cash underperformed longer maturity coupon bonds in an environment of falling interest rates and tightening spreads.

 

 

 

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


 

 

 


Trust Information

 

 


 

 

 

Symbol on New York Stock Exchange (“NYSE”)

 

BFZ

Initial Offering Date

 

July 27, 2001

Yield on Closing Market Price as of July 31, 2010 ($14.21)1

 

6.39%

Tax Equivalent Yield2

 

9.83%

Current Monthly Distribution per Common Share3

 

$0.0757

Current Annualized Distribution per Common Share3

 

$0.9084

Leverage as of July 31, 20104

 

40%





 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 13.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

14.21

 

$

12.40

 

 

14.60

%

$

14.52

 

$

12.34

 

Net Asset Value

 

$

14.28

 

$

12.71

 

 

12.35

%

$

14.65

 

$

12.65

 


















The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 

 


Sector Allocations


 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







County/City/Special District/School District

 

37

%

 

37

%

 

Utilities

 

27

 

 

10

 

 

Education

 

10

 

 

18

 

 

Health

 

9

 

 

11

 

 

State

 

7

 

 

6

 

 

Transportation

 

6

 

 

10

 

 

Housing

 

3

 

 

6

 

 

Corporate

 

1

 

 

2

 

 









 

 

 

 

 

 

 

 


Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







AAA/Aaa

 

24

%

 

21

%

 

AA/Aa

 

46

 

 

28

 

 

A

 

26

 

 

40

 

 

BBB/Baa

 

3

 

 

8

 

 

B

 

 

 

1

 

 

Not Rated6

 

1

 

 

2

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2010 and July 31, 2009, the market value of these securities was $5,717,100, representing 1% and $1,974,163, representing 1%, respectively, of the Trust’s long-term investments.


 

 

 

 


 

ANNUAL REPORT

JULY 31, 2010

5




 

 


 

Trust Summary as of July 31, 2010

BlackRock Florida Municipal 2020 Term Trust

 

 


Trust Overview


BlackRock Florida Municipal 2020 Term Trust’s (BFO) (the “Trust”) investment objectives are to provide current income exempt from regular federal income tax and Florida intangible personal property tax and to return $15.00 per Common Share (the initial offering price per share) to holders of Common Shares on or about December 31, 2020. The Trust seeks to achieve its investment objectives by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Florida intangible personal property tax. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust actively manages the maturity of its bonds to seek to have a dollar weighted average effective maturity approximately equal to the Trust’s maturity date. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2010, the Trust returned 22.05% based on market price, and 17.35% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 19.82% based on market price, and 14.58% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s allocations to the corporate and health sectors had a positive impact on performance. Overall the Trust benefited from increasing bond prices in the declining interest rate environment, however, its exposure to pre-refunded and escrowed issues detracted from performance as their shorter maturity reduces their sensitivity to interest rates.

 

 

 

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


 

 

 


Trust Information

 

 




 

 

 

Symbol on NYSE

 

BFO

Initial Offering Date

 

September 30, 2003

Termination Date (on or about)

 

December 31, 2020

Yield on Closing Market Price as of July 31, 2010 ($14.30)1

 

4.70%

Tax Equivalent Yield2

 

7.23%

Current Monthly Distribution per Common Share3

 

$0.056

Current Annualized Distribution per Common Share3

 

$0.672

Leverage as of July 31, 20104

 

36%





 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 13.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

14.30

 

$

12.31

 

 

16.17

%

$

14.30

 

$

12.10

 

Net Asset Value

 

$

14.91

 

$

13.35

 

 

11.69

%

$

14.91

 

$

13.34

 


















The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 

 


Sector Allocations


 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







County/City/Special District/School District

 

45

%

 

48

%

 

Utilities

 

20

 

 

18

 

 

Health

 

12

 

 

11

 

 

State

 

10

 

 

9

 

 

Corporate

 

7

 

 

6

 

 

Housing

 

3

 

 

5

 

 

Transportation

 

2

 

 

2

 

 

Education

 

1

 

 

1

 

 









 

 

 

 

 

 

 

 


Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







AAA/Aaa

 

32

%

 

31

%

 

AA/Aa

 

19

 

 

10

 

 

A

 

23

 

 

30

 

 

BBB/Baa

 

7

 

 

6

 

 

BB/Ba

 

 

 

2

 

 

Not Rated6

 

19

 

 

21

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2010 and July 31, 2009, the market value of these securities was $13,590,604, representing 11% and $13,543,166, representing 11%, respectively, of the Trust’s long-term investments.


 

 

 

 


6

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

Trust Summary as of July 31, 2010

BlackRock Investment Quality Municipal Income Trust

 


Trust Overview


BlackRock Investment Quality Municipal Income Trust’s (RFA) (the “Trust”) investment objective is to provide high current income exempt from regular federal income tax and to provide an exemption from Florida intangible personal property taxes consistent with preservation of capital. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal bonds rated investment grade at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, the Board approved an amended policy in September 2008 allowing the Trust the flexibility to invest in municipal obligations regardless of geographical location.

No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2010, the Trust returned 33.92% based on market price, and 18.09% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 23.46% based on market price, and 19.89% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s holdings of Florida issues detracted from performance during the period as Florida underperformed the national market. The Trust continues to seek to reduce its exposure to Florida, however, many of its Florida holdings have limited liquidity. On the positive side, the Trust held health and housing bonds with maturities of 20 years and longer, which benefited performance as the municipal yield curve flattened over the last 12 months.

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

 

 

 


Trust Information


 

 

 

Symbol on NYSE Amex

 

RFA

Initial Offering Date

 

May 28, 1993

Yield on Closing Market Price as of July 31, 2010 ($12.60)1

 

6.67%

Tax Equivalent Yield2

 

10.26%

Current Monthly Distribution per Common Share3

 

$0.07

Current Annualized Distribution per Common Share3

 

$0.84

Leverage as of July 31, 20104

 

38%





 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 13.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

12.60

 

$

10.08

 

 

25.00

%

$

12.98

 

$

9.95

 

Net Asset Value

 

$

12.29

 

$

11.15

 

 

10.22

%

$

12.73

 

$

11.13

 


















The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 

 


Sector Allocations


 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







Utilities

 

19

 

 

21

%

 

County/City/Special District/School District

 

19

 

 

27

 

 

Transportation

 

19

 

 

13

 

 

Health

 

17

 

 

12

 

 

State

 

10

 

 

10

 

 

Education

 

7

 

 

9

 

 

Housing

 

6

 

 

8

 

 

Corporate

 

2

 

 

 

 

Tobacco

 

1

 

 

 

 









 

 

 

 

 

 

 

 


Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







AAA/Aaa

 

16

%

 

14

%

 

AA/Aa

 

57

 

 

44

 

 

A

 

22

 

 

32

 

 

BBB/Baa

 

4

 

 

 

 

BB/Ba

 

 

 

1

 

 

Not Rated

 

1

 

 

9

6

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The Investment advisor has deemed certain of these non-rated securities to be investment grade quality. As of July 31, 2009, the market value of these securities was $461,249, representing 2% of the Trust’s long-term investments.


 

 

 

 


 

ANNUAL REPORT

JULY 31, 2010

7




 

 


 

Trust Summary as of July 31, 2010

BlackRock Municipal Income Investment Trust

 

 


Trust Overview


BlackRock Municipal Income Investment Trust’s (BBF) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax and Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, the Board approved an amended policy in September 2008 allowing the Trust the flexibility to invest in municipal obligations regardless of geographical location.

No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2010, the Trust returned 19.01% based on market price, and 17.04% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 23.46% based on market price, and 19.89% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s holdings of Florida issues detracted from performance during the period as Florida underperformed the national market. The Trust continues to seek to reduce its exposure to Florida, however, many of its Florida holdings have limited liquidity. On the positive side, the Trust held health and housing bonds with maturities of 20 years and longer, which benefited performance as the municipal yield curve flattened over the last 12 months.

 

 

 

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


 

 

 


Trust Information


 

 

 

Symbol on NYSE

 

BBF

Initial Offering Date

 

July 27, 2001

Yield on Closing Market Price as of July 31, 2010 ($13.90)1

 

6.51%

Tax Equivalent Yield2

 

10.02%

Current Monthly Distribution per Common Share3

 

$0.075375

Current Annualized Distribution per Common Share3

 

$0.904500

Leverage as of July 31, 20104

 

39%





 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 13.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

13.90

 

$

12.49

 

 

11.29

%

$

14.40

 

$

12.23

 

Net Asset Value

 

$

13.91

 

$

12.71

 

 

9.44

%

$

14.26

 

$

12.69

 


















The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 

 


Sector Allocations


 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







Health

 

24

%

 

21

%

 

Utilities

 

20

 

 

22

 

 

County/City/Special District/School District

 

19

 

 

27

 

 

Transportation

 

17

 

 

6

 

 

State

 

9

 

 

7

 

 

Education

 

9

 

 

16

 

 

Housing

 

1

 

 

1

 

 

Corporate

 

1

 

 

 

 









 

 

 

 

 

 

 

 


Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







AAA/Aaa

 

11

%

 

9

%

 

AA/Aa

 

58

 

 

47

 

 

A

 

25

 

 

28

 

 

BBB/Baa

 

4

 

 

5

 

 

BB/Ba

 

 

 

1

 

 

Not Rated

 

2

 

 

10

6

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2009, the market value of these securities was $10,029,093, representing 7% of the Trust’s long-term investments.


 

 

 

 


8

ANNUAL REPORT

JULY 31, 2010

 




 

 



 

 

Trust Summary as of July 31, 2010

BlackRock New Jersey Investment Quality Municipal Trust Inc.

 

 


Trust Overview


BlackRock New Jersey Investment Quality Municipal Trust Inc.’s (RNJ) (the “Trust”) investment objective is to provide high current income exempt from regular federal income tax and New Jersey gross income tax consistent with preservation of capital. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in a portfolio of investment grade New Jersey municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New Jersey gross income taxes. Under normal market conditions, the Trust invests at least 80% of its assets in securities rated investment grade at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2010, the Trust returned 18.02% based on market price, and 18.01% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 20.66% based on market price, and 16.85% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which widened during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust held health and housing bonds with maturities of 20 years and longer, which benefited performance as the municipal yield curve flattened over the last 12 months. Detracting from performance was the Trust’s exposure to zero-coupon bonds, which underperformed as investors favored the liquidity of coupon bonds.

 

 

 

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


 

 

 




Trust Information

 

 




 

 

 

Symbol on NYSE Amex

 

RNJ

Initial Offering Date

 

May 28, 1993

Yield on Closing Market Price as of July 31, 2010 ($12.96)1

 

6.06%

Tax Equivalent Yield2

 

9.32%

Current Monthly Distribution per Common Share3

 

$0.0655

Current Annualized Distribution per Common Share3

 

$0.7860

Leverage as of July 31, 20104

 

36%





 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 13.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

12.96

 

$

11.68

 

 

10.96

%

$

14.53

 

$

11.10

 

Net Asset Value

 

$

12.57

 

$

11.33

 

 

10.94

%

$

12.73

 

$

11.31

 


















The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







State

 

18

%

 

22

%

 

Health

 

16

 

 

18

 

 

Education

 

15

 

 

10

 

 

Transportation

 

14

 

 

20

 

 

Housing

 

11

 

 

9

 

 

Corporate

 

10

 

 

7

 

 

County/City/Special District/School District

 

8

 

 

6

 

 

Utilities

 

7

 

 

7

 

 

Tobacco

 

1

 

 

1

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







AAA/Aaa

 

12

%

 

24

%

 

AA/Aa

 

28

 

 

17

 

 

A

 

27

 

 

20

 

 

BBB/Baa

 

21

 

 

27

 

 

BB/Ba

 

3

 

 

 

 

B

 

4

 

 

4

 

 

Not Rated

 

5

6

 

8

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2010, the market value of these securities was $500,505, representing 3% of the Trust’s long-term investments.


 

 

 

 





 

ANNUAL REPORT

JULY 31, 2010

9




 

 



 

 

Trust Summary as of July 31, 2010

BlackRock New Jersey Municipal Income Trust

 

 



Trust Overview

 



BlackRock New Jersey Municipal Income Trust’s (BNJ) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax and New Jersey gross income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New Jersey gross income taxes. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2010, the Trust returned 13.11% based on market price, and 20.22% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 20.66% based on market price, and 16.85% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust held health and housing bonds with maturities of 20 years and longer, which benefited performance as the municipal yield curve flattened over the last 12 months. Detracting from performance was the Trust’s exposure to zero-coupon bonds, which underperformed as investors favored the liquidity of coupon bonds.

 

 

 

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


 

 

 




Trust Information

 

 




 

 

 

Symbol on NYSE

 

BNJ

Initial Offering Date

 

July 27, 2001

Yield on Closing Market Price as of July 31, 2010 ($14.82)1

 

6.28%

Tax Equivalent Yield2

 

9.66%

Current Monthly Distribution per Common Share3

 

$0.0776

Current Annualized Distribution per Common Share3

 

$0.9312

Leverage as of July 31, 20104

 

36%





 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 13.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

14.82

 

$

14.00

 

 

5.86

%

$

15.74

 

$

13.48

 

Net Asset Value

 

$

14.38

 

$

12.78

 

 

12.52

%

$

14.39

 

$

12.76

 


















The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







State

 

23

%

 

22

%

 

Housing

 

19

 

 

20

 

 

Health

 

18

 

 

23

 

 

Transportation

 

13

 

 

12

 

 

County/City/Special District/School District

 

9

 

 

9

 

 

Education

 

8

 

 

9

 

 

Corporate

 

7

 

 

4

 

 

Utilities

 

2

 

 

 

 

Tobacco

 

1

 

 

1

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







AAA/Aaa

 

25

%

 

26

%

 

AA/Aa

 

25

 

 

20

 

 

A

 

28

 

 

27

 

 

BBB/Baa

 

11

 

 

17

 

 

BB/Ba

 

2

 

 

 

 

B

 

3

 

 

3

 

 

Not Rated

 

6

6

 

7

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2010, the market value of these securities was $4,086,005, representing 2% of the Trust’s long-term investments.


 

 

 

 





10

ANNUAL REPORT

JULY 31, 2010

 




 

 



 

 

Trust Summary as of July 31, 2010

BlackRock New York Investment Quality Municipal Trust Inc.

 

 



Trust Overview

 



BlackRock New York Investment Quality Municipal Trust Inc.’s (RNY) (the “Trust”) investment objective is to provide high current income exempt from regular federal, state and city income tax consistent with the preservation of capital. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City income taxes. Under normal market conditions, the Trust invests at least 80% of its assets in securities rated investment grade at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2010, the Trust returned 24.11% based on market price, and 17.60% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 16.62% based on market price, and 16.37% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s outperformance relative to its peer group resulted more from its price appreciation than from its distributions, which were below average for the period. On average, the Trust had a neutral-to-positive duration bias over the period. This positioning along with a low cash balance resulted in positive capital appreciation. Overall the tax-exempt municipal market benefited from the Build America Bond Program, which made the taxable market accessible to municipal issuers. This alleviated supply pressure in the tax-exempt space, which, coupled with increased investor demand for municipals, resulted in a favorable supply-demand paradigm and strong performance. Many of the Trust’s holdings had depressed valuations resulting from their underperformance during dislocations in the credit market, which expanded their upside potential as the market recovered. We purchased a number of new issues structured with the goal of creating greater potential for price appreciation in response to declining interest rates. The Trust’s exposure to the health and housing sectors and Puerto Rico credits also added to performance. Detracting from performance was the Trust’s exposure to zero-coupon bonds, which underperformed as investors favored the liquidity and defensiveness of current coupon bonds. The Trust’s concentration in the longer end of the yield curve benefited the portfolio while the Trust’s modest exposure to the short-term, high-grade, pre-refunded sector hindered performance.

 

 

 

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


 

 

 




Trust Information

 

 




 

 

 

Symbol on NYSE Amex

 

RNY

Initial Offering Date

 

May 28, 1993

Yield on Closing Market Price as of July 31, 2010 ($14.70)1

 

5.96%

Tax Equivalent Yield2

 

9.17%

Current Monthly Distribution per Common Share3

 

$0.073

Current Annualized Distribution per Common Share3

 

$0.876

Leverage as of July 31, 20104

 

36%





 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 13.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

14.70

 

$

12.61

 

 

16.57

%

$

14.90

 

$

12.40

 

Net Asset Value

 

$

14.15

 

$

12.81

 

 

10.46

%

$

14.15

 

$

12.79

 


















The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







County/City/Special District/School District

 

28

%

 

26

%

 

Utilities

 

16

 

 

13

 

 

Corporate

 

12

 

 

9

 

 

Education

 

12

 

 

19

 

 

Health

 

10

 

 

11

 

 

State

 

10

 

 

10

 

 

Housing

 

7

 

 

7

 

 

Transportation

 

3

 

 

3

 

 

Tobacco

 

2

 

 

2

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







AAA/Aaa

 

24

%

 

29

%

 

AA/Aa

 

19

 

 

24

 

 

A

 

38

 

 

28

 

 

BBB/Baa

 

6

 

 

9

 

 

BB/Ba

 

4

 

 

2

 

 

B

 

7

 

 

7

 

 

Not Rated

 

2

 

 

1

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 





 

ANNUAL REPORT

JULY 31, 2010

11




 

 



 

 

Trust Summary as of July 31, 2010

BlackRock New York Municipal Income Trust

 

 



Trust Overview

 



BlackRock New York Municipal Income Trust’s (BNY) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2010, the Trust returned 16.11% based on market price, and 20.35% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 16.62% based on market price, and 16.37% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s outperformance relative to its peer group resulted from both its price appreciation and distributions, which were above average for the period. On average, the Trust had a neutral-to-positive duration bias over the period. This positioning along with a low cash balance resulted in positive capital appreciation. Overall the tax-exempt municipal market benefited from the Build America Bond Program, which made the taxable market accessible to municipal issuers. This alleviated supply pressure in the tax-exempt space, which, coupled with increased investor demand for municipals, resulted in a favorable supply-demand paradigm and strong performance. Many of the Trust’s holdings had depressed valuations resulting from their underperformance during dislocations in the credit market, which expanded their upside potential as the market recovered. We purchased a number of new issues structured with the goal of creating greater potential for price appreciation in response to declining interest rates. The Trust’s exposure to the health and housing sectors and Puerto Rico credits also added to performance. Detracting from performance was the Trust’s exposure to zero-coupon bonds, which underperformed as investors favored the liquidity and defensiveness of current coupon bonds. The Trust’s concentration in the longer end of the yield curve benefited the portfolio while the Trust’s modest exposure to the short-term, high-grade, pre-refunded sector hindered performance.

 

 

 

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


 

 

 




Trust Information

 

 




 

 

 

Symbol on NYSE

 

BNY

Initial Offering Date

 

July 27, 2001

Yield on Closing Market Price as of July 31, 2010 ($15.11)1

 

6.55%

Tax Equivalent Yield2

 

10.08%

Current Monthly Distribution per Common Share3

 

$0.0825

Current Annualized Distribution per Common Share3

 

$0.9900

Leverage as of July 31, 20104

 

37%





 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 13.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

15.11

 

$

13.95

 

 

8.32

%

$

15.64

 

$

13.62

 

Net Asset Value

 

$

14.27

 

$

12.71

 

 

12.27

%

$

14.30

 

$

12.69

 


















The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







County/City/Special District/School District

 

16

%

 

15

%

 

Education

 

15

 

 

13

 

 

Housing

 

14

 

 

14

 

 

Transportation

 

14

 

 

14

 

 

Corporate

 

12

 

 

11

 

 

Utilities

 

12

 

 

11

 

 

State

 

8

 

 

12

 

 

Tobacco

 

5

 

 

6

 

 

Health

 

4

 

 

4

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

7/31/10

 

7/31/09

 







AAA/Aaa

 

23

%

 

27

%

 

AA/Aa

 

19

 

 

22

 

 

A

 

29

 

 

27

 

 

BBB/Baa

 

16

 

 

17

 

 

BB/Ba

 

3

 

 

1

 

 

B

 

6

 

 

5

 

 

Not Rated

 

4

6

 

1

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2010, the market value of these securities was $2,474,600, representing 1% of the Trust’s long-term investments.


 

 

 

 





12

ANNUAL REPORT

JULY 31, 2010

 




 


 

The Benefits and Risks of Leveraging

The Trusts may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, the Trusts issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage will be based on short-term interest rates, which normally will be lower than the income earned by each Trust on its longer-term portfolio investments. To the extent that the total assets of each Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Trust’s Common Shareholders will benefit from the incremental net income.

To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Trust with assets received from the Preferred Shares issuance earn income based on long-term interest rates. In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the Trust’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup on the Common Shares will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Trust pays dividends on the higher short-term interest rate whereas the Trust’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Trusts’ Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAV positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares discussed above.

The Trusts may also leverage their assets through the use of tender option bond (“TOB”) programs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Trusts with economic benefits in periods of declining short-term interest rates, but expose the Trusts to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trusts, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Trust’s NAV per share.

The use of leverage may enhance opportunities for increased returns to the Trusts and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts’ NAV, market price and dividend rate than a comparable portfolio without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Trusts’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Trusts’ net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. Each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Trust to incur losses. The use of leverage may limit each Trust’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by ratings agencies that rate Preferred Shares issued by the Trusts. Each Trust will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, the Trusts are permitted to issue Preferred Shares in an amount of up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Trust anticipates that the total economic leverage from Preferred Shares and/or TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of July 31, 2010, the Trusts had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 





 

 

Percent of
Leverage

 





RAA

 

34

%

 

BFZ

 

40

%

 

BFO

 

36

%

 

RFA

 

38

%

 

BBF

 

39

%

 

RNJ

 

36

%

 

BNJ

 

36

%

 

RNY

 

36

%

 

BNY

 

37

%

 







 


 

Derivative Financial Instruments

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

 

 

 

 


 

ANNUAL REPORT

JULY 31, 2010

13




 

 


 

 

Schedule of Investments July 31, 2010

BlackRock California Investment Quality Municipal Trust Inc. (RAA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California — 134.8%

 

 

 

 

 

 

 









County/City/Special District/School District — 41.2%

 

 

 

 

 

 

 

Butte-Glenn Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/30

 

$

500

 

$

547,915

 

County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35

 

 

500

 

 

556,990

 

Los Alamitos Unified School District California, GO, School Facilities Improvement District No. 1, 5.50%, 8/01/33

 

 

500

 

 

538,295

 

Los Angeles Municipal Improvement Corp., RB, Real Property, Series E, 5.75%, 9/01/34

 

 

410

 

 

437,146

 

Marysville Joint Unified School District California, GO, Election of 2006 (AGM), 5.50%, 8/01/32

 

 

95

 

 

100,976

 

Modesto Irrigation District, COP, Capital Improvements, Series A, 5.50%, 10/01/26

 

 

65

 

 

70,985

 

Rio Hondo Community College District California, GO, Election of 2009, Series B, 5.50%, 8/01/30

 

 

500

 

 

540,135

 

San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36

 

 

500

 

 

531,355

 

San Francisco Bay Area Rapid Transit District, GO, Election of 2004, Series B, 5.00%, 8/01/35

 

 

150

 

 

158,239

 

San Jose Unified School District Santa Clara County California, GO, Election of 2002, Series D, 5.00%, 8/01/32

 

 

250

 

 

257,815

 

Santa Ana Unified School District, GO, Election of 2008, Series A, 5.13%, 8/01/33

 

 

150

 

 

155,528

 

Santa Cruz County Redevelopment Agency California, Tax Allocation Bonds, Live Oak/Soquel Community Improvement, Series A, 7.00%, 9/01/36

 

 

100

 

 

111,440

 

Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38

 

 

250

 

 

278,610

 

Vacaville Unified School District California, GO, Election of 2001 (NPFGC), 5.00%, 8/01/30

 

 

500

 

 

505,285

 

West Contra Costa Unified School District, GO, Election of 2005, Series B (BHAC), 5.63%, 8/01/35

 

 

355

 

 

385,565

 

Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39

 

 

500

 

 

571,975

 

 

 

 

 

 



 

 

 

 

 

 

 

5,748,254

 









Education — 7.0%

 

 

 

 

 

 

 

California Educational Facilities Authority, RB, Stanford University, Series Q, 5.25%, 12/01/32

 

 

500

 

 

519,420

 

Peralta Community College District, GO, Election of 2006, Series C, 5.50%, 8/01/28

 

 

100

 

 

108,724

 

University of California, RB, Series O, 5.75%, 5/15/29

 

 

310

 

 

355,551

 

 

 

 

 

 



 

 

 

 

 

 

 

983,695

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (continued)

 

 

 

 

 

 

 









Health — 23.1%

 

 

 

 

 

 

 

ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare:

 

 

 

 

 

 

 

6.13%, 8/01/29

 

$

250

 

$

277,845

 

6.38%, 8/01/34

 

 

250

 

 

264,465

 

6.25%, 8/01/39

 

 

250

 

 

276,055

 

California Health Facilities Financing Authority, Refunding RB:

 

 

 

 

 

 

 

Catholic Healthcare West, Series A, 6.00%, 7/01/29

 

 

625

 

 

678,869

 

Catholic Healthcare West, Series A, 6.00%, 7/01/39

 

 

350

 

 

375,182

 

Providence Health & Services, Series C, 6.50%, 10/01/38

 

 

250

 

 

283,663

 

St. Joseph Health System, Series A, 5.75%, 7/01/39

 

 

535

 

 

559,647

 

California Statewide Communities Development Authority, Refunding RB, Catholic Healthcare West:

 

 

 

 

 

 

 

Series E, 5.50%, 7/01/31

 

 

250

 

 

257,815

 

Series K (AGC), 5.50%, 7/01/41

 

 

240

 

 

247,078

 

 

 

 

 

 



 

 

 

 

 

 

 

3,220,619

 









State — 11.4%

 

 

 

 

 

 

 

California State Public Works Board, RB:

 

 

 

 

 

 

 

Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

 

 

340

 

 

366,078

 

Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34

 

 

250

 

 

266,792

 

California State University, Refunding RB, Systemwide, Series C (NPFGC), 5.00%, 11/01/38

 

 

400

 

 

406,244

 

State of California, GO, Various Purpose, 6.50%, 4/01/33

 

 

490

 

 

551,059

 

 

 

 

 

 



 

 

 

 

 

 

 

1,590,173

 









Transportation — 14.8%

 

 

 

 

 

 

 

County of Orange California, RB, Series B, 5.75%, 7/01/34

 

 

500

 

 

544,535

 

County of Sacramento California, RB, Senior Series B:

 

 

 

 

 

 

 

5.75%, 7/01/39

 

 

250

 

 

270,615

 

(AGC), 5.50%, 7/01/34

 

 

430

 

 

455,718

 

Los Angeles Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, AMT, 5.38%, 5/15/38

 

 

285

 

 

291,806

 

Port of Oakland, RB, Series K, AMT (NPFGC), 5.75%, 11/01/29

 

 

500

 

 

500,025

 

 

 

 

 

 



 

 

 

 

 

 

 

2,062,699

 










 


Portfolio Abbreviations



To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:


 

 

ACA

ACA Financial Guaranty Corp.

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

CIFG

CDC IXIS Financial Guaranty

COP

Certificates of Participation

EDA

Economic Development Authority

ERB

Education Revenue Bonds

FGIC

Financial Guaranty Insurance Co.

FHA

Federal Housing Administration

GO

General Obligation Bonds

HFA

Housing Finance Agency

HRB

Housing Revenue Bonds

IDA

Industrial Development Authority

IDRB

Industrial Development Revenue Bonds

ISD

Independent School District

LRB

Lease Revenue Bonds

MRB

Mortgage Revenue Bonds

NPFGC

National Public Finance Guarantee Corp.

PILOT

Payment in Lieu of Taxes

RB

Revenue Bonds

S/F

Single Family

SONYMA

State of New York Mortgage Agency

TE

Tax Exempt

UBF

University of Buffalo Foundation

VHA

Veterans Health Administration


 

 

 

 

See Notes to Financial Statements.

 





14

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

 

Schedule of Investments (continued)

BlackRock California Investment Quality Municipal Trust Inc. (RAA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 









Utilities — 37.3%

 

 

 

 

 

 

 

California Infrastructure & Economic Development Bank, RB, California Independent System Operator, Series A, 6.25%, 2/01/39

 

$

400

 

$

424,232

 

California State Department of Water Resources, Refunding RB, Central Valley Project, Series AE, 5.00%, 12/01/28

 

 

25

 

 

27,086

 

City of Los Angeles California, Refunding RB, Series A, 5.75%, 6/01/34

 

 

110

 

 

122,901

 

Contra Costa Water District, Refunding RB, Series O (AMBAC), 5.00%, 10/01/24

 

 

600

 

 

645,372

 

East Bay Municipal Utility District, RB (NPFGC):

 

 

 

 

 

 

 

Series A, 5.00%, 6/01/32

 

 

100

 

 

105,618

 

Sub-Series A, 5.00%, 6/01/35

 

 

250

 

 

259,100

 

East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/37

 

 

30

 

 

31,448

 

Eastern Municipal Water District California, COP:

 

 

 

 

 

 

 

Series A (NPFGC), 5.00%, 7/01/32

 

 

100

 

 

102,988

 

Series H, 5.00%, 7/01/35

 

 

300

 

 

310,698

 

Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1 (AGM), 5.00%, 7/01/35

 

 

500

 

 

514,685

 

Metropolitan Water District of Southern California, RB, Series A:

 

 

 

 

 

 

 

5.00%, 1/01/27

 

 

40

 

 

44,158

 

5.00%, 7/01/37

 

 

575

 

 

605,532

 

Sacramento Area Flood Control Agency, Special Assessment Bonds, Consolidated Capital Assessment District (BHAC), 5.50%, 10/01/28

 

 

75

 

 

83,488

 

Sacramento Municipal Utility District, Refunding RB, Series U (AGM), 5.00%, 8/15/27

 

 

205

 

 

219,266

 

San Diego County Water Authority, Series A:

 

 

 

 

 

 

 

COP (AGM), 5.00%, 5/01/31

 

 

405

 

 

415,818

 

Refunding RB, 5.00%, 5/01/27

 

 

40

 

 

43,130

 

San Diego Public Facilities Financing Authority, Refunding RB:

 

 

 

 

 

 

 

Senior Series A, 5.25%, 5/15/39

 

 

250

 

 

265,525

 

Series A, 5.00%, 8/01/29

 

 

100

 

 

104,560

 

Series A, 5.25%, 8/01/38

 

 

500

 

 

525,655

 

Series B, 5.13%, 8/01/29

 

 

90

 

 

95,357

 

Southern California Public Power Authority, RB:

 

 

 

 

 

 

 

Southern Transmission Project, Series B, 6.00%, 7/01/27

 

 

195

 

 

219,691

 

Transmission Project (NPFGC), 5.50%, 7/01/20

 

 

40

 

 

40,159

 

 

 

 

 

 



 

 

 

 

 

 

 

5,206,467

 









Total Municipal Bonds — 134.8%

 

 

 

 

 

18,811,907

 










 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (a)

 

 

 

 

 

 

 









California — 15.8%

 

 

 

 

 

 

 









County/City/Special District/School District — 11.5%

 

 

 

 

 

 

 

Los Angeles Community College District California, GO, Election of 2008, Series A, 6.00%, 8/01/33

 

 

480

 

 

541,313

 

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33

 

 

509

 

 

542,003

 

Santa Clara County Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36

 

 

495

 

 

520,177

 

 

 

 

 

 



 

 

 

 

 

 

 

1,603,493

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (a)

 

Par
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 









Education — 2.4%

 

 

 

 

 

 

 

University of California, RB, Series O, 5.75%, 5/15/34

 

$

300

 

$

338,808

 









Utilities — 1.9%

 

 

 

 

 

 

 

Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33

 

 

250

 

 

258,807

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 15.8%

 

 

 

 

 

2,201,108

 









Total Long-Term Investments
(Cost — $19,917,466) — 150.6%

 

 

 

 

 

21,013,015

 









 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









BIF California Municipal Money Fund, 0.04% (b)(c)

 

 

383,264

 

 

383,264

 









Total Short-Term Securities
(Cost — $383,264) — 2.7%

 

 

 

 

 

383,264

 









Total Investments (Cost — $20,300,730*) — 153.3%

 

 

 

 

 

21,396,279

 

Liabilities in Excess of Other Assets — (2.0)%

 

 

 

 

 

(277,775

)

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (8.8)%

 

 

 

 

 

(1,233,893

)

Preferred Shares, at Redemption Value — (42.5)%

 

 

 

 

 

(5,925,277

)

 

 

 

 

 



 

Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

13,959,334

 

 

 

 

 

 



 


 

 


*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

19,088,118

 

 

 



 

Gross unrealized appreciation

 

$

1,104,203

 

Gross unrealized depreciation

 

 

(28,926

)

 

 



 

Net unrealized appreciation

 

$

1,075,277

 

 

 



 


 

 

(a)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(b)

Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, are as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Affiliate

 

 

Shares
Held at
July 31,
2009

 

 

Net
Activity

 

 

Shares
Held at
July 31,
2010

 

 

Income

 











BIF California Municipal Money Fund

 

 

1,637,526

 

 

(1,254,262)

 

 

383,264

 

 

$ 173

 
















 

 

(c)

Represents the current yield as of report date.

 

 

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

 

 

Financial futures contracts sold as of July 31,2010 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Contracts

 

 

Issue

 

 

Expiration
Date

 

 

Notional
Value

 

 

Unrealized
Depreciation

 















1

 

 

10-Year U.S.
Treasury Bond

 

 

September 2010

 

 

$ 121,670

 

 

$ (2,143)

 
















 

 

 

 

See Notes to Financial Statements.

 

 





 

ANNUAL REPORT

JULY 31, 2010

15




 

 


 

 

Schedule of Investments (concluded)

BlackRock California Investment Quality Municipal Trust Inc. (RAA)


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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

 

 

 

 

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

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of July 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

21,013,015

 

 

 

$

21,013,015

 

Short-Term Securities

 

$

383,264

 

 

 

 

 

 

383,264

 

 

 













Total

 

$

383,264

 

$

21,013,015

 

 

 

$

21,396,279

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

 

 

 

 

 

 

 

 

 

 

 




 

 

Derivative Financial Instruments2











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(2,143

)

 

 

 

 

$

(2,143

)
















 

 

 

 

2

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


 

 

 

 

See Notes to Financial Statements.

 





16

ANNUAL REPORT

JULY 31, 2010

 




 

 



 

 

Schedule of Investments July 31, 2010

BlackRock California Municipal Income Trust (BFZ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California — 103.7%

 

 

 

 

 

 

 









Corporate — 1.0%

 

 

 

 

 

 

 

California Pollution Control Financing Authority, RB, Waste Management Inc. Project, Series C, Mandatory Put Bonds, AMT, 6.75%, 12/01/27 (a)

 

$

3,700

 

$

3,754,168

 

City of Chula Vista California, RB, San Diego Gas, Series D, AMT (AMBAC), 5.00%, 12/01/27

 

 

310

 

 

310,356

 

City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34

 

 

680

 

 

751,679

 

 

 

 

 

 



 

 

 

 

 

 

 

4,816,203

 









County/City/Special District/School District — 37.0%

 

 

 

 

 

 

 

Benicia Unified School District, GO, CAB, Series B (NPFGC), 5.54%, 8/01/23 (b)

 

 

6,500

 

 

3,145,025

 

Butte-Glenn Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/30

 

 

7,925

 

 

8,684,453

 

California State Public Works Board, RB, Various Capital Projects, Sub-Series I-1, 6.63%, 11/01/34

 

 

6,800

 

 

7,410,028

 

Central Unified School District, GO, Election of 2008, Series A (AGC), 5.63%, 8/01/33

 

 

400

 

 

431,780

 

Cerritos Community College District, GO, Election of 2004, Series C, 5.25%, 8/01/31

 

 

3,000

 

 

3,162,780

 

Chabot-Las Positas Community College District California, GO, Election of 2004, Series B (AMBAC), 5.00%, 8/01/31

 

 

2,000

 

 

2,033,160

 

Corona-Norca Unified School District California, Special Tax Bonds, Community Facilities District No. 98-1 (AMBAC), 5.10%, 9/01/32

 

 

6,000

 

 

5,717,100

 

County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35

 

 

1,500

 

 

1,670,970

 

El Dorado Union High School District, GO, Election of 2008, 5.00%, 8/01/35 (c)

 

 

5,020

 

 

5,208,099

 

Elk Grove Unified School District California, Special Tax Bonds, CAB, Community Facilities No. 1 (AMBAC) (b):

 

 

 

 

 

 

 

5.60%, 12/01/29

 

 

7,485

 

 

2,218,105

 

5.60%, 12/01/30

 

 

7,485

 

 

2,062,492

 

5.60%, 12/01/31

 

 

7,485

 

 

1,919,828

 

Evergreen Elementary School District, GO, Election of 2006, Series B (AGC), 5.13%, 8/01/33

 

 

2,500

 

 

2,612,725

 

Fremont Union High School District, GO, Election of 2008, 5.00%, 8/01/27

 

 

4,150

 

 

4,391,032

 

Glendale Community College District California, GO, Election of 2002, Series D (NPFGC), 5.00%, 11/01/31

 

 

2,500

 

 

2,565,925

 

Long Beach Unified School District California, GO, Refunding, Election of 2008, Series A, 5.75%, 8/01/33

 

 

4,135

 

 

4,559,210

 

Los Alamitos Unified School District California, GO, School Facilities Improvement District No. 1, 5.50%, 8/01/33

 

 

5,125

 

 

5,517,524

 

Los Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/30

 

 

2,580

 

 

2,772,932

 

Modesto Irrigation District, COP:

 

 

 

 

 

 

 

Capital Improvements, Series A, 5.75%, 10/01/29

 

 

3,000

 

 

3,277,800

 

Capital Improvements, Series A, 5.75%, 10/01/34

 

 

155

 

 

166,126

 

Series B, 5.50%, 7/01/35

 

 

5,700

 

 

6,048,726

 

Murrieta Valley Unified School District Public Financing Authority, Special Tax Bonds, Refunding, Series A (AGC), 5.13%, 9/01/26

 

 

1,000

 

 

1,059,650

 

Oak Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33

 

 

6,000

 

 

6,458,520

 

Orange County Water District, COP, Refunding, 5.25%, 8/15/34

 

 

2,000

 

 

2,138,420

 

Peralta Community College District California, GO, Election of 2006, Series C, 5.00%, 8/01/39

 

 

7,500

 

 

7,696,875

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 









California (continued)

 

 

 

 

 

 

 









County/City/Special District/School District (concluded)

 

 

 

 

 

 

 

Pittsburg Redevelopment Agency, Tax Allocation Bonds, Refunding, Subordinate, Los Medanos Community Project, Series A, 6.50%, 9/01/28

 

$

5,500

 

$

6,089,160

 

Pittsburg Unified School District, GO, Election of 2006, Series B (AGM), 5.50%, 8/01/34

 

 

2,000

 

 

2,131,780

 

Port of Oakland, Refunding RB, Series M, AMT (NPFGC), 5.38%, 11/01/27

 

 

3,300

 

 

3,302,838

 

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33

 

 

1,000

 

 

1,065,690

 

San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36

 

 

6,500

 

 

6,907,615

 

San Jose Financing Authority, Refunding RB, Civic Center Project, Series B (AMBAC), 5.00%, 6/01/37

 

 

6,000

 

 

6,024,660

 

San Jose Unified School District Santa Clara County California, GO, Election of 2002, Series D, 5.00%, 8/01/32

 

 

5,625

 

 

5,800,837

 

San Leandro Unified School District California, GO, Election of 2006, Series B (AGM), 6.25%, 8/01/29

 

 

1,125

 

 

1,291,916

 

Santa Ana Unified School District, GO, Election of 2008, Series A:

 

 

 

 

 

 

 

5.50%, 8/01/30

 

 

6,050

 

 

6,507,501

 

5.13%, 8/01/33

 

 

10,000

 

 

10,368,500

 

Santa Cruz County Redevelopment Agency California, Tax Allocation Bonds, Live Oak/Soquel Community Improvement, Series A:

 

 

 

 

 

 

 

6.63%, 9/01/29

 

 

1,000

 

 

1,093,760

 

7.00%, 9/01/36

 

 

1,700

 

 

1,894,480

 

Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38

 

 

2,000

 

 

2,228,880

 

Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 8/01/33

 

 

4,000

 

 

4,462,080

 

Val Verde Unified School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33

 

 

6,615

 

 

7,000,787

 

Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39

 

 

7,750

 

 

8,865,612

 

 

 

 

 

 



 

 

 

 

 

 

 

167,965,381

 









Education — 9.3%

 

 

 

 

 

 

 

California Educational Facilities Authority, RB:

 

 

 

 

 

 

 

Scripps College (NPFGC), 5.00%, 8/01/31

 

 

2,385

 

 

2,392,608

 

Stanford University, Series Q, 5.25%, 12/01/32

 

 

13,000

 

 

13,504,920

 

California Educational Facilities Authority, Refunding RB, Loyola Marymount University, Series A, 5.13%, 10/01/40

 

 

1,680

 

 

1,705,049

 

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (c)

 

 

12,900

 

 

13,555,707

 

Mount San Antonio Community College District California, GO, Election of 2001, Series D, 5.00%, 6/01/33

 

 

2,995

 

 

3,070,893

 

Peralta Community College District California, GO, Election of 2006, Series C, 5.50%, 8/01/29

 

 

2,890

 

 

3,124,206

 

University of California, RB, Limited Project, Series D (NPFGC), 5.00%, 5/15/32

 

 

2,600

 

 

2,704,494

 

University of California, Refunding RB, General, Series A (AMBAC), 5.00%, 5/15/33

 

 

2,215

 

 

2,248,247

 

 

 

 

 

 



 

 

 

 

 

 

 

42,306,124

 










 

 

 

 

See Notes to Financial Statements.

 

 





 

ANNUAL REPORT

JULY 31, 2010

17




 

 



 

 

Schedule of Investments (continued)

BlackRock California Municipal Income Trust (BFZ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (continued)

 

 

 

 

 

 

 









Health — 14.9%

 

 

 

 

 

 

 

ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare:

 

 

 

 

 

 

 

6.38%, 8/01/34

 

$

3,000

 

$

3,173,580

 

6.25%, 8/01/39

 

 

3,000

 

 

3,312,660

 

California Health Facilities Financing Authority, RB:

 

 

 

 

 

 

 

Adventist Health System-West, Series A, 5.75%, 9/01/39

 

 

6,000

 

 

6,196,740

 

Catholic Healthcare West, Series J, 5.63%, 7/01/32

 

 

1,475

 

 

1,515,341

 

California Health Facilities Financing Authority, Refunding RB:

 

 

 

 

 

 

 

Catholic Healthcare West, Series A, 6.00%, 7/01/34

 

 

4,400

 

 

4,742,848

 

Catholic Healthcare West, Series A, 6.00%, 7/01/39

 

 

500

 

 

535,975

 

Catholic Healthcare West, Series E, 5.63%, 7/01/25

 

 

3,000

 

 

3,227,310

 

Providence Health & Services, Series C, 6.50%, 10/01/38

 

 

1,215

 

 

1,378,600

 

Scripps Health, Series A, 5.00%, 11/15/36

 

 

2,950

 

 

2,956,313

 

California Infrastructure & Economic Development Bank, RB, Kaiser Hospital Assistance I-LLC, Series A, 5.55%, 8/01/31

 

 

15,260

 

 

15,427,860

 

California Statewide Communities Development Authority, RB, Series A:

 

 

 

 

 

 

 

Health Facility, Memorial Health Services, 5.50%, 10/01/33

 

 

7,000

 

 

7,115,640

 

Kaiser Permanente, 5.50%, 11/01/32

 

 

10,000

 

 

10,123,600

 

California Statewide Communities Development Authority, Refunding RB, Catholic Healthcare West:

 

 

 

 

 

 

 

Series B, 5.50%, 7/01/30

 

 

3,000

 

 

3,109,770

 

Series E, 5.50%, 7/01/31

 

 

4,705

 

 

4,852,079

 

 

 

 

 

 



 

 

 

 

 

 

 

67,668,316

 









Housing — 1.0%

 

 

 

 

 

 

 

California Statewide Communities Development Authority, Multifamily Housing Revenue Bond Pass-Through Certificates, RB, Series 3, Westgate Courtyards Apartments, Mandatory Put Bonds, AMT (a)

 

 

2,220

 

 

2,183,881

 

City of Los Angeles, Multifamily Housing Revenue Bond Pass-Through Certificates, RB, Series 5, San Lucas Apartments, AMT (a)

 

 

2,075

 

 

2,075,166

 

 

 

 

 

 



 

 

 

 

 

 

 

4,259,047

 









State — 11.0%

 

 

 

 

 

 

 

California State Public Works Board, RB:

 

 

 

 

 

 

 

Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

 

 

9,000

 

 

9,690,300

 

Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34

 

 

2,475

 

 

2,641,246

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

5,000

 

 

5,412,500

 

6.50%, 4/01/33

 

 

23,825

 

 

26,793,833

 

6.00%, 11/01/35

 

 

5,000

 

 

5,358,650

 

 

 

 

 

 



 

 

 

 

 

 

 

49,896,529

 









Transportation — 9.1%

 

 

 

 

 

 

 

County of Orange California, RB, Series B, 5.75%, 7/01/34

 

 

8,000

 

 

8,712,560

 

County of Sacramento California, RB, Senior Series B, 5.75%, 7/01/39

 

 

1,850

 

 

2,002,551

 

Foothill Eastern Transportation Corridor Agency California:

 

 

 

 

 

 

 

RB, CAB, Senior Lien, Series A, 5.80%, 1/01/26 (b)(d)

 

 

10,000

 

 

5,421,600

 

Refunding RB, CAB, 5.88%, 7/15/26

 

 

5,000

 

 

4,947,850

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 









Transportation (concluded)

 

 

 

 

 

 

 

Port of Oakland, RB, Series K, AMT (NPFGC), 5.75%, 11/01/29

 

$

4,650

 

$

4,650,233

 

San Francisco City & County Airports Commission, RB:

 

 

 

 

 

 

 

Second Series, Series F, 5.00%, 5/01/35 (c)

 

 

4,665

 

 

4,671,764

 

Series E, 6.00%, 5/01/39

 

 

6,750

 

 

7,454,767

 

San Joaquin Hills Transportation Corridor Agency California, Refunding RB, CAB, Series A (NPFGC) (b):

 

 

 

 

 

 

 

5.50%, 1/15/31

 

 

10,000

 

 

1,922,400

 

5.51%, 1/15/34

 

 

10,000

 

 

1,509,500

 

 

 

 

 

 



 

 

 

 

 

 

 

41,293,225

 









Utilities — 20.4%

 

 

 

 

 

 

 

California Infrastructure & Economic Development Bank, RB, California Independent System Operator, Series A, 6.25%, 2/01/39

 

 

5,500

 

 

5,833,190

 

Calleguas-Las Virgines Public Financing Authority California, RB, Calleguas Municipal Water District Project, Series A (NPFGC), 5.13%, 7/01/32

 

 

5,475

 

 

5,671,005

 

City of Chula Vista California, Refunding RB, San Diego Gas & Electric:

 

 

 

 

 

 

 

Series D, 5.88%, 1/01/34

 

 

1,000

 

 

1,105,410

 

Series E, 5.88%, 1/01/34

 

 

4,375

 

 

4,836,169

 

City of Los Angeles California, Refunding RB (NPFGC):

 

 

 

 

 

 

 

Series A, 5.00%, 6/01/32

 

 

4,000

 

 

4,090,880

 

Sub-Series A, 5.00%, 6/01/27

 

 

5,085

 

 

5,333,453

 

East Bay Municipal Utility District, RB, Series A (NPFGC), 5.00%, 6/01/37

 

 

4,025

 

 

4,219,287

 

El Dorado Irrigation District & El Dorado Water Agency California, COP, Refunding, Series A, 5.75%, 3/01/24

 

 

5,000

 

 

5,664,150

 

Los Angeles Department of Water & Power, RB:

 

 

 

 

 

 

 

Power System, Sub-Series A-1, 5.25%, 7/01/38

 

 

7,660

 

 

8,175,595

 

Series A, 5.38%, 7/01/34

 

 

3,000

 

 

3,252,150

 

North Kern Water District, RB, Cawelo Water District Project, Series B, 5.00%, 5/01/40

 

 

2,150

 

 

2,161,373

 

San Diego Public Facilities Financing Authority, Refunding RB:

 

 

 

 

 

 

 

Senior Series A, 5.25%, 5/15/34

 

 

9,500

 

 

10,111,325

 

Senior Series A, 5.25%, 5/15/39

 

 

4,750

 

 

5,044,975

 

Series A, 5.25%, 8/01/38

 

 

2,685

 

 

2,822,767

 

San Francisco City & County Public Utilities Commission, Refunding RB, Series A:

 

 

 

 

 

 

 

5.00%, 11/01/28

 

 

8,725

 

 

9,499,344

 

5.00%, 11/01/35

 

 

5,625

 

 

5,944,612

 

Southern California Public Power Authority, RB, Canyon Power, Series A, 5.25%, 7/01/27

 

 

8,225

 

 

9,011,557

 

 

 

 

 

 



 

 

 

 

 

 

 

92,777,242

 









Total Municipal Bonds in California

 

 

 

 

 

470,982,067

 









 

 

 

 

 

 

 

 









Multi-State — 4.4%

 

 

 

 

 

 

 









Housing — 4.4%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust (e)(f):

 

 

 

 

 

 

 

5.75%, 5/15/15

 

 

500

 

 

525,830

 

6.00%, 5/15/15

 

 

1,500

 

 

1,572,135

 

6.00%, 5/15/19

 

 

1,000

 

 

1,059,570

 

6.30%, 5/15/19

 

 

1,000

 

 

1,063,870

 

6.80%, 11/30/50

 

 

4,000

 

 

4,047,520

 

7.20%, 11/15/52

 

 

3,500

 

 

3,853,045

 

MuniMae TE Bond Subsidiary LLC (e)(f):

 

 

 

 

 

 

 

6.30%, 6/30/49

 

 

6,018

 

 

5,581,010

 

6.80%, 6/30/50

 

 

3,000

 

 

2,459,970

 









Total Municipal Bonds in Multi-State

 

 

 

 

 

20,162,950

 










 

 

 

 

See Notes to Financial Statements.


18

ANNUAL REPORT

JULY 31, 2010

 




 

 



 

 

Schedule of Investments (continued)

BlackRock California Municipal Income Trust (BFZ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Puerto Rico — 1.7%

 

 

 

 

 

 

 









County/City/Special District/School District — 0.7%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.50%, 8/01/44

 

$

3,000

 

$

3,325,320

 









State — 1.0%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Public improvement, Series B, 6.50%, 7/01/37

 

 

4,000

 

 

4,430,360

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

7,755,680

 









Total Municipal Bonds — 109.8%

 

 

 

 

 

498,900,697

 









 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

 

 

 

 

 

 


California — 53.7%

 

 

 

 

 

 

 









County/City/Special District/School District — 23.0%

 

 

 

 

 

 

 

Los Angeles Community College District California, GO, Series A:

 

 

 

 

 

 

 

Election of 2001 (AGM), 5.00%, 8/01/32

 

 

8,000

 

 

8,208,960

 

Election of 2008, 6.00%, 8/01/33

 

 

20,131

 

 

22,712,613

 

Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34

 

 

5,000

 

 

5,104,400

 

Mount San Antonio Community College District California, GO, Election of 2001, Series C (AGM), 5.00%, 9/01/31

 

 

10,770

 

 

11,088,146

 

Ohlone Community College District, GO, Ohlone, Series B (AGM), 5.00%, 8/01/30

 

 

12,499

 

 

12,854,788

 

San Bernardino Community College District California, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31

 

 

2,000

 

 

2,058,460

 

San Diego Community College District California, GO:

 

 

 

 

 

 

 

Election of 2002, 5.25%, 8/01/33

 

 

10,484

 

 

11,174,827

 

Election of 2006 (AGM), 5.00%, 8/01/32

 

 

9,000

 

 

9,338,850

 

Santa Clara County Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36

 

 

21,004

 

 

22,085,355

 

 

 

 

 

 



 

 

 

 

 

 

 

104,626,399

 









Education — 6.6%

 

 

 

 

 

 

 

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/39

 

 

10,395

 

 

11,172,338

 

California State University, RB, Systemwide, Series A (AGM), 5.00%, 11/01/39

 

 

2,400

 

 

2,425,632

 

University of California, RB:

 

 

 

 

 

 

 

Limited Project, Series D (AGM), 5.00%, 5/15/41

 

 

2,600

 

 

2,676,700

 

Series O, 5.75%, 5/15/34

 

 

12,300

 

 

13,891,128

 

 

 

 

 

 



 

 

 

 

 

 

 

30,165,798

 









Utilities — 24.1%

 

 

 

 

 

 

 

California State Department of Water Resources, Refunding RB, Central Valley Project, Series AE, 5.00%, 12/01/29

 

 

7,000

 

 

7,569,240

 

City of Napa California, RB (AMBAC), 5.00%, 5/01/35

 

 

3,000

 

 

3,088,080

 

East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), 5.00%, 6/01/35

 

 

3,000

 

 

3,109,200

 

Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33

 

 

18,002

 

 

18,644,402

 

Los Angeles Department of Water & Power, RB:

 

 

 

 

 

 

 

Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37

 

 

15,998

 

 

16,516,264

 

System, Sub-Series A-2 (AGM), 5.00%, 7/01/35

 

 

2,000

 

 

2,058,720

 

Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37

 

 

11,180

 

 

11,773,658

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 









Utilities (concluded)

 

 

 

 

 

 

 

Orange County Sanitation District, COP, Series B (AGM), 5.00%, 2/01/37

 

$

14,700

 

$

15,337,686

 

Orange County Water District, COP, Refunding, 5.00%, 8/15/39

 

 

10,480

 

 

10,951,076

 

San Diego County Water Authority, COP, Refunding:

 

 

 

 

 

 

 

Series 2008-A (AGM), 5.00%, 5/01/33

 

 

14,290

 

 

14,837,593

 

Series A (NPFGC), 5.00%, 5/01/32

 

 

5,292

 

 

5,354,641

 

 

 

 

 

 



 

 

 

 

 

 

 

109,240,560

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 53.7%

 

 

 

 

 

244,032,757

 









Total Long-Term Investments
(Cost — $717,415,820) — 163.5%

 

 

 

 

 

742,933,454

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

 

Shares

 

 

 

 









BIF California Municipal Money Fund, 0.04% (h)(i)

 

 

26,178,133

 

 

26,178,133

 









Total Short-Term Securities
(Cost — $26,178,133) — 5.8%

 

 

 

 

 

26,178,133

 









Total Investments (Cost — $743,593,953*) — 169.3%

 

 

 

 

 

769,111,587

 

Liabilities in Excess of Other Assets — (3.4)%

 

 

 

 

 

(15,344,072

)

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (28.2)%

 

 

 

 

 

(128,133,877

)

Preferred Shares, at Redemption Value — (37.7)%

 

 

 

 

 

(171,334,972

)

 

 

 

 

 



 

Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

454,298,666

 

 

 

 

 

 



 


 

 

 

 

 

 

 

 

 










*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

615,847,342

 

 

 

 

 

 

 



 

 

Gross unrealized appreciation

 

 

 

 

$

31,040,225

 

 

Gross unrealized depreciation

 

 

 

 

 

(5,840,600

)

 

 

 

 

 

 



 

 

Net unrealized appreciation

 

 

 

 

$

25,199,625

 

 

 

 

 

 

 



 


 

 

(a)

Variable rate security. Rate shown is as of report date.

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

(c)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 

 

 









 

Counterparty

 

Value

 

Unrealized
Appreciation
(Depreciation)

 

 







 

Robert W. Baird & Co., Inc.

 

$

5,208,099

 

$

(12,048

)

 

Morgan Stanley Capital Services, Inc.

 

$

18,227,471

 

$

102,869

 

 










 

 

(d)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(e)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

 

(f)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(g)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.


 

ANNUAL REPORT

JULY 31, 2010

19




 

 




Schedule of Investments (concluded)

BlackRock California Municipal Income Trust (BFZ)


 

 

(h)

Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, are as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

Affiliate

 

Shares
Held at
July 31,
2009

 

Net
Activity

 

Shares
Held at
July 31,
2010

 

Income

 

 











 

BIF California Municipal Money Fund

 

$

3,630,796

 

$

22,547,337

 

$

26,178,133

 

$

2,950

 

 
















 

 

(i)

Represents the current yield as of report date.

 

 

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

 

 

Financial futures contracts sold as of July 31,2010 were as follows:


 















 

Contracts

 

 

Issue

 

 

Expiration
Date

 

 

Notional
Value

 

 

Unrealized
Depreciation

 

 















 

    19

 

 

10-Year U.S.
Treasury Bond

 

 

September 2010

 

 

$2,311,724

 

 

$ (40,714)

 

 
















 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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

 

 

 

 

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of July 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 















Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

742,933,454

 

 

 

$

742,933,454

 

Short-Term Securities

 

$

26,178,133

 

 

 

 

 

 

26,178,133

 

 

 













Total

 

$

26,178,133

 

$

742,933,454

 

 

 

$

769,111,587

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Derivative Financial Instruments2

 





Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(40,714

)

 

 

 

 

$

(40,714

)
















 

 

 

 

2

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


 

 

 

 

See Notes to Financial Statements.





20

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

Schedule of Investments July 31, 2010

BlackRock Florida Municipal 2020 Term Trust (BFO)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Florida — 136.9%

 

 

 

 

 

 

 









Corporate — 8.6%

 

 

 

 

 

 

 

County of Escambia Florida, Refunding RB, Environment, Series A, AMT, 5.75%, 11/01/27

 

$

4,000

 

$

4,005,440

 

Hillsborough County IDA, Refunding RB, Tampa Electric Co. Project:

 

 

 

 

 

 

 

5.50%, 10/01/23

 

 

1,955

 

 

1,998,088

 

Series A, 5.65%, 5/15/18

 

 

1,000

 

 

1,120,830

 

 

 

 

 

 



 

 

 

 

 

 

 

7,124,358

 









County/City/Special District/School District — 59.1%

 

 

 

 

 

 

 

Broward County School Board Florida, COP, Series A (AGM), 5.25%, 7/01/22

 

 

2,500

 

 

2,688,275

 

County of Hillsborough Florida, RB (AMBAC), 5.00%, 11/01/20

 

 

5,545

 

 

6,099,500

 

County of Miami-Dade Florida, RB, Sub-Series B (NPFGC), 5.63%, 10/01/32 (a)

 

 

7,560

 

 

1,799,658

 

County of Miami-Dade Florida, Refunding RB, Sub-Series A (NPFGC) (a):

 

 

 

 

 

 

 

5.32%, 10/01/19

 

 

5,365

 

 

3,262,886

 

5.30%, 10/01/20

 

 

10,000

 

 

5,703,700

 

County of Orange Florida, Refunding RB, Series A (NPFGC), 5.13%, 1/01/22

 

 

2,200

 

 

2,343,264

 

Hillsborough County School Board, COP (NPFGC), 5.00%, 7/01/27

 

 

1,000

 

 

1,018,430

 

Miami-Dade County Educational Facilities Authority Florida, RB, University of Miami, Series A (AMBAC), 5.00%, 4/01/14 (b)

 

 

1,000

 

 

1,141,030

 

Miami-Dade County School Board, COP, Refunding, Series B (AGC), 5.25%, 5/01/21

 

 

4,000

 

 

4,444,800

 

Northern Palm Beach County Improvement District, RB, Water Control & Improvement:

 

 

 

 

 

 

 

Series 43, 6.10%, 8/01/21

 

 

195

 

 

194,690

 

Unit of Development No. 43, 6.10%, 8/01/11 (b)

 

 

2,735

 

 

2,898,334

 

Northern Palm Beach County Improvement District, Special Assessment Bonds, Refunding, Water Control & Improvement District No. 43, Series B (ACA):

 

 

 

 

 

 

 

4.50%, 8/01/22

 

 

1,000

 

 

798,540

 

5.00%, 8/01/31

 

 

1,000

 

 

769,850

 

Sterling Hill Community Development District, Special Assessment Bonds, Series A, 6.10%, 5/01/23

 

 

3,915

 

 

3,692,824

 

Stevens Plantation Improvement Project Dependent Special District, RB, 6.38%, 5/01/13

 

 

2,425

 

 

2,069,446

 

Tolomato Community Development District, Special Assessment Bonds, Special Assessment, 6.38%, 5/01/17

 

 

1,300

 

 

1,207,180

 

Village Center Community Development District, RB:

 

 

 

 

 

 

 

Sub-Series B, 6.35%, 1/01/18

 

 

2,000

 

 

2,015,100

 

(NPFGC), 5.25%, 10/01/23

 

 

5,000

 

 

5,060,200

 

Village Community Development District No. 5 Florida, Special Assessment Bonds, Series A, 6.00%, 5/01/22

 

 

1,200

 

 

1,219,980

 

Watergrass Community Development District, Special Assessment Bonds, Series B, 5.13%, 11/01/14

 

 

1,000

 

 

588,300

 

 

 

 

 

 



 

 

 

 

 

 

 

49,015,987

 









Education — 1.0%

 

 

 

 

 

 

 

Orange County Educational Facilities Authority, RB, Rollins College Project (AMBAC), 5.25%, 12/01/22

 

 

725

 

 

790,410

 









 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Florida (concluded)

 

 

 

 

 

 

 









Health — 17.8%

 

 

 

 

 

 

 

Escambia County Health Facilities Authority, RB, Florida Health Care Facility Loan, VHA Program (AMBAC), 5.95%, 7/01/20

 

$

441

 

$

455,238

 

Halifax Hospital Medical Center, Refunding RB, Series A, 5.25%, 6/01/26

 

 

2,500

 

 

2,501,800

 

Highlands County Health Facilities Authority, Refunding RB, Hospital, Adventist Health, Series I, 5.00%, 11/15/20

 

 

2,155

 

 

2,339,921

 

Hillsborough County IDA, RB, H. Lee Moffitt Cancer Center Project, Series A, 5.25%, 7/01/22

 

 

1,500

 

 

1,542,840

 

Marion County Hospital District Florida, Refunding RB, Health System, Munroe Regional, 5.00%, 10/01/22

 

 

1,500

 

 

1,532,985

 

Orange County Health Facilities Authority, RB, Hospital, Adventist Health System, 5.63%, 11/15/12 (b)

 

 

4,450

 

 

4,976,435

 

Palm Beach County Health Facilities Authority, Refunding RB, Bethesda Healthcare System Project, Series A (AGM), 5.00%, 7/01/20

 

 

1,285

 

 

1,408,064

 

 

 

 

 

 



 

 

 

 

 

 

 

14,757,283

 









Housing — 2.5%

 

 

 

 

 

 

 

Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 2, AMT (Ginnie Mae), 4.70%, 7/01/22

 

 

1,300

 

 

1,310,556

 

Jacksonville Housing Finance Authority, Refunding RB, Series A-1, AMT (Ginnie Mae), 5.63%, 10/01/39

 

 

755

 

 

801,108

 

 

 

 

 

 



 

 

 

 

 

 

 

2,111,664

 









State — 14.3%

 

 

 

 

 

 

 

Florida Municipal Loan Council, RB, CAB, Series A (NPFGC), 5.19%, 4/01/20 (a)

 

 

4,000

 

 

2,485,480

 

Florida State Board of Education, GO, Public Education, Series J (AMBAC), 5.00%, 6/01/24

 

 

6,150

 

 

6,621,766

 

Florida State Board of Education, GO, Refunding, Public Education, Series I, 5.00%, 6/01/18

 

 

500

 

 

553,315

 

Florida State Board of Education, RB, Series B, 5.00%, 7/01/23

 

 

2,000

 

 

2,196,320

 

 

 

 

 

 



 

 

 

 

 

 

 

11,856,881

 









Transportation — 3.8%

 

 

 

 

 

 

 

County of Lee Florida, Refunding RB, Series B (AMBAC), 5.00%, 10/01/22

 

 

3,000

 

 

3,124,890

 









Utilities — 29.8%

 

 

 

 

 

 

 

City of Deltona Florida, RB (NPFGC), 5.00%, 10/01/23

 

 

1,095

 

 

1,135,657

 

City of Lakeland Florida, Refunding RB, 5.00%, 10/01/27

 

 

1,000

 

 

1,023,040

 

City of Marco Island Florida, RB (NPFGC):

 

 

 

 

 

 

 

5.25%, 10/01/21

 

 

1,000

 

 

1,078,890

 

5.00%, 10/01/22

 

 

2,000

 

 

2,100,460

 

5.00%, 10/01/23

 

 

1,375

 

 

1,431,554

 

City of Palm Coast Florida, RB (NPFGC):

 

 

 

 

 

 

 

5.00%, 10/01/22

 

 

1,770

 

 

1,824,764

 

5.00%, 10/01/23

 

 

1,485

 

 

1,524,932

 

5.00%, 10/01/24

 

 

1,500

 

 

1,535,625

 

County of Miami-Dade Florida, Refunding RB, System, Series B (AGM), 5.25%, 10/01/19

 

 

4,000

 

 

4,658,040

 

Sumter County IDA Florida, RB, North Sumter Utility Co., LLC Project, AMT, 6.80%, 10/01/32

 

 

1,145

 

 

1,145,034

 

Tohopekaliga Water Authority, RB, Series B (AGM):

 

 

 

 

 

 

 

5.00%, 10/01/22

 

 

1,975

 

 

2,149,669

 

5.00%, 10/01/23

 

 

1,180

 

 

1,278,412

 

Tohopekaliga Water Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/21

 

 

3,630

 

 

3,830,920

 

 

 

 

 

 



 

 

 

 

 

 

 

24,716,997

 









Total Municipal Bonds in Florida

 

 

 

 

 

113,498,470

 










See Notes to Financial Statements.

 

 

 

 


 

ANNUAL REPORT

JULY 31, 2010

21




 

 


 

Schedule of Investments (concluded)

BlackRock Florida Municipal 2020 Term Trust (BFO)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









U.S. Virgin Islands — 1.7%

 

 

 

 

 

 

 









Corporate — 1.7%

 

 

 

 

 

 

 

Virgin Islands Public Finance Authority, RB, Senior Secured, Hovensa Refinery, AMT, 4.70%, 7/01/22

 

$

1,500

 

$

1,382,940

 









Total Municipal Bonds in the U.S. Virgin Islands

 

 

 

 

 

1,382,940

 









Total Municipal Bonds — 138.6%

 

 

 

 

 

114,881,410

 









 










Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

 

 

 

 

 









Florida — 10.4%

 

 

 

 

 

 

 









County/City/Special District/School District — 7.9%

 

 

 

 

 

 

 

Palm Beach County School District, COP, Refunding, Series D (AGM), 5.00%, 8/01/28

 

 

6,510

 

 

6,581,610

 









Housing — 2.5%

 

 

 

 

 

 

 

Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40

 

 

990

 

 

1,092,158

 

Manatee County Housing Finance Authority, RB, Series A, AMT (Ginnie Mae), 5.90%, 9/01/40

 

 

913

 

 

976,310

 

 

 

 

 

 



 

 

 

 

 

 

 

2,068,468

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 10.4%

 

 

 

 

 

8,650,078

 









Total Long-Term Investments
(Cost — $122,159,821) — 149.0%

 

 

 

 

 

123,531,488

 









 









 

Short-Term Securities

 

 

Shares

 

 

 

 









BIF Florida Municipal Money Fund, 0.00% (d)(e)

 

 

5,065,158

 

 

5,065,158

 









Total Short-Term Securities (Cost — $5,065,158) — 6.1%

 

 

 

 

 

5,065,158

 









Total Investments
(Cost — $127,224,979*) — 155.1%

 

 

 

 

 

128,596,646

 

Other Assets Less Liabilities — 1.9%

 

 

 

 

 

1,614,657

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (5.3)%

 

 

 

 

 

(4,379,069

)

Preferred Shares, at Redemption Value — (51.7)%

 

 

 

 

 

(42,903,637

)

 

 

 

 

 



 

Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

82,928,597

 

 

 

 

 

 



 

 









 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

122,809,888

 

 

 



 

Gross unrealized appreciation

 

$

3,756,210

 

Gross unrealized depreciation

 

 

(2,341,022

)

 

 



 

Net unrealized appreciation

 

$

1,415,188

 

 

 



 


 

 

(a)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(b)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(c)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(d)

Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, are as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Affiliate

 

Shares
Held at
July 31,
2009

 

Net
Activity

 

Shares
Held at
July 31,
2010

 

Income

 











BIF Florida Municipal Money Fund

 

 

120,735

 

 

4,944,423

 

 

5,065,158

 

$

105

 
















 

 

 

(e)

Represents the current yield as of report date.

 

 

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

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of July 31, 2010 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

123,531,488

 

 

 

$

123,531,488

 

Short-Term Securities

 

$

5,065,158

 

 

 

 

 

 

5,065,158

 

 

 













Total

 

$

5,065,158

 

$

123,531,488

 

 

 

$

128,596,646

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each sector.


See Notes to Financial Statements.

 

 

 

 


22

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

Schedule of Investments July 31, 2010

BlackRock Investment Quality Municipal Income Trust (RFA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Arizona — 1.4%

 

 

 

 

 

 

 

Maricopa County Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 6/01/35

 

$

100

 

$

100,611

 

Pima County IDA, Refunding IDRB, Tucson Electric Power, 5.75%, 9/01/29

 

 

90

 

 

91,941

 

 

 

 

 

 



 

 

 

 

 

 

 

192,552

 









California — 22.5%

 

 

 

 

 

 

 

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/44

 

 

195

 

 

213,227

 

California Health Facilities Financing Authority, Refunding RB, Series A:

 

 

 

 

 

 

 

Catholic Healthcare West, 6.00%, 7/01/39

 

 

130

 

 

139,354

 

St. Joseph Health System, 5.75%, 7/01/39

 

 

195

 

 

203,984

 

California State Public Works Board, RB, Department of General Services, Buildings 8 & 9, Series A, 6.25%, 4/01/34

 

 

300

 

 

315,321

 

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (a)

 

 

385

 

 

404,570

 

Los Angeles Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, 5.00%, 5/15/35

 

 

395

 

 

402,323

 

Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38

 

 

250

 

 

266,827

 

San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36

 

 

240

 

 

255,050

 

San Francisco City & County Airports Commission, RB, Second Series, Series F, 5.00%, 5/01/40 (a)

 

 

200

 

 

199,370

 

San Francisco City & County Airports Commission, Refunding RB, Second Series A-3, Mandatory Put Bonds, AMT, 6.75%, 5/01/19 (b)

 

 

500

 

 

517,320

 

State of California, GO, Various Purpose, 6.00%, 3/01/33

 

 

185

 

 

200,262

 

 

 

 

 

 



 

 

 

 

 

 

 

3,117,608

 









Colorado — 1.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Refunding RB, Catholic Healthcare, Series A, 5.50%, 7/01/34

 

 

155

 

 

165,340

 









Florida — 5.0%

 

 

 

 

 

 

 

Arborwood Community Development District, Special Assessment Bonds, Master Infrastructure Projects, Series B, 5.10%, 5/01/14

 

 

210

 

 

156,297

 

County of St. John’s Florida, RB, CAB (AMBAC), 5.40%, 6/01/32 (c)

 

 

100

 

 

30,079

 

New River Community Development District, Special Assessment Bonds, Series B, 5.00%, 5/01/13 (d)(e)

 

 

250

 

 

119,600

 

Village Center Community Development District, RB, Series A (NPFGC), 5.00%, 11/01/32

 

 

450

 

 

383,701

 

 

 

 

 

 



 

 

 

 

 

 

 

689,677

 









Georgia — 4.1%

 

 

 

 

 

 

 

Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23

 

 

500

 

 

573,865

 









 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Illinois — 6.4%

 

 

 

 

 

 

 

County of Cook Illinois, GO, Refunding, Series A, 5.25%, 11/15/33

 

$

245

 

$

258,127

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39

 

 

250

 

 

273,517

 

OSF Healthcare System, Series A, 6.00%, 5/15/39

 

 

150

 

 

151,421

 

State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34

 

 

195

 

 

201,554

 

 

 

 

 

 



 

 

 

 

 

 

 

884,619

 









Indiana — 2.6%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB, Indiana Municipal Power Agency, Series B, 6.00%, 1/01/39

 

 

335

 

 

364,493

 









Kansas — 2.0%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB, Adventist Health, 5.50%, 11/15/29

 

 

250

 

 

269,980

 









Kentucky — 4.1%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority, Refunding RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40

 

 

100

 

 

104,178

 

Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34

 

 

220

 

 

242,702

 

Louisville/Jefferson County Metropolitan Government, Refunding RB, Jewish Hospital & St. Mary’s HealthCare, 6.13%, 2/01/37

 

 

215

 

 

223,436

 

 

 

 

 

 



 

 

 

 

 

 

 

570,316

 









Massachusetts — 5.1%

 

 

 

 

 

 

 

Massachusetts HFA, HRB, Series B, AMT, 5.50%, 6/01/41

 

 

185

 

 

185,821

 

Massachusetts HFA, Refunding HRB, Series F, AMT, 5.70%, 6/01/40

 

 

250

 

 

255,128

 

Massachusetts State College Building Authority, RB, Series A, 5.50%, 5/01/39

 

 

250

 

 

271,292

 

 

 

 

 

 



 

 

 

 

 

 

 

712,241

 









Michigan — 4.8%

 

 

 

 

 

 

 

Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38

 

 

250

 

 

272,613

 

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39

 

 

325

 

 

388,076

 

 

 

 

 

 



 

 

 

 

 

 

 

660,689

 









Nebraska — 0.3%

 

 

 

 

 

 

 

Lancaster County Hospital Authority No. 1, RB, Immanuel Obligation Group, 5.63%, 1/01/40

 

 

45

 

 

45,738

 









Nevada — 10.1%

 

 

 

 

 

 

 

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34

 

 

250

 

 

276,845

 

County of Clark Nevada, GO, Refunding, Transportation, Series A, 5.00%, 12/01/29

 

 

330

 

 

344,494

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Motor Vehicle Fuel Tax, 5.00%, 7/01/28

 

 

300

 

 

311,580

 

Series B, 5.75%, 7/01/42

 

 

440

 

 

469,295

 

 

 

 

 

 



 

 

 

 

 

 

 

1,402,214

 










See Notes to Financial Statements.

 

 

 

 


 

ANNUAL REPORT

JULY 31, 2010

23




 

 


 

Schedule of Investments (continued)

BlackRock Investment Quality Municipal Income Trust (RFA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey — 7.3%

 

 

 

 

 

 

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

New Jersey American Water Co., Series A, AMT, 5.70%, 10/01/39

 

$

175

 

$

179,711

 

School Facilities Construction, Series AA, 5.50%, 12/15/29

 

 

250

 

 

275,610

 

New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29

 

 

165

 

 

171,747

 

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A, 5.88%, 12/15/38

 

 

190

 

 

210,005

 

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 4.50%, 6/01/23

 

 

190

 

 

173,970

 

 

 

 

 

 



 

 

 

 

 

 

 

1,011,043

 









New York — 6.7%

 

 

 

 

 

 

 

New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

250

 

 

267,420

 

New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49

 

 

85

 

 

88,832

 

New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38

 

 

300

 

 

325,290

 

Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.38%, 11/15/38

 

 

225

 

 

245,308

 

 

 

 

 

 



 

 

 

 

 

 

 

926,850

 









North Carolina — 0.2%

 

 

 

 

 

 

 

City of Charlotte North Carolina, Refunding RB, Series A, 5.50%, 7/01/34

 

 

25

 

 

26,693

 









Pennsylvania — 5.6%

 

 

 

 

 

 

 

Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39

 

 

300

 

 

325,491

 

Pennsylvania HFA, Refunding RB, Series 99A, AMT, 5.15%, 4/01/38

 

 

200

 

 

206,900

 

Pennsylvania Turnpike Commission, RB, Sub-Series C (AGC), 6.25%, 6/01/38

 

 

215

 

 

246,949

 

 

 

 

 

 



 

 

 

 

 

 

 

779,340

 









Texas — 12.5%

 

 

 

 

 

 

 

City of Houston Texas, RB, Senior Lien, Series A, 5.50%, 7/01/39

 

 

85

 

 

91,251

 

Conroe ISD Texas, GO, School Building, Series A, 5.75%, 2/15/35

 

 

140

 

 

152,578

 

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31

 

 

250

 

 

284,187

 

Lower Colorado River Authority, RB, 5.75%, 5/15/28

 

 

120

 

 

127,936

 

North Texas Tollway Authority, RB, System, First Tier, Series K-1 (AGC), 5.75%, 1/01/38

 

 

250

 

 

272,237

 

Tarrant County Cultural Education Facilities Finance Corp., RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit Group, 5.00%, 11/15/29

 

 

240

 

 

247,176

 

Scott & White Healthcare, 6.00%, 8/15/45

 

 

280

 

 

295,548

 

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, Note Mobility, 6.88%, 12/31/39

 

 

250

 

 

259,465

 

 

 

 

 

 



 

 

 

 

 

 

 

1,730,378

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Virginia — 2.1%

 

 

 

 

 

 

 

Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/35

 

$

250

 

$

290,263

 









West Virginia — 1.2%

 

 

 

 

 

 

 

West Virginia EDA, Refunding RB, Appalachian Power Co., Amos Project, Series A, 5.38%, 12/01/38 (b)

 

 

160

 

 

160,176

 









Wisconsin — 1.8%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health Inc., 5.25%, 4/01/39

 

 

245

 

 

252,027

 









Wyoming — 1.4%

 

 

 

 

 

 

 

County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, 5.25%, 7/15/26

 

 

180

 

 

191,601

 









Total Municipal Bonds — 108.4%

 

 

 

 

 

15,017,703

 









 










Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

 

 

 

 

 

 









California — 15.0%

 

 

 

 

 

 

 

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/39

 

 

300

 

 

322,434

 

Los Angeles Community College District California, GO, Election of 2008, Series A, 6.00%, 8/01/33

 

 

700

 

 

789,415

 

Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34

 

 

60

 

 

61,253

 

San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.50%, 8/01/39

 

 

615

 

 

663,204

 

University of California, RB, Series O, 5.75%, 5/15/34

 

 

210

 

 

237,166

 

 

 

 

 

 



 

 

 

 

 

 

 

2,073,472

 









District of Columbia — 3.9%

 

 

 

 

 

 

 

District of Columbia, RB, Series A, 5.50%, 12/01/30

 

 

195

 

 

220,839

 

District of Columbia Water & Sewer Authority, RB, Series A, 5.50%, 10/01/39

 

 

300

 

 

324,347

 

 

 

 

 

 



 

 

 

 

 

 

 

545,186

 









Florida — 6.4%

 

 

 

 

 

 

 

Hillsborough County Aviation Authority, RB, Series A, AMT (AGC), 5.50%, 10/01/38

 

 

280

 

 

286,177

 

Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40

 

 

330

 

 

364,053

 

Manatee County Housing Finance Authority, RB, Series A, AMT (Ginnie Mae), 5.90%, 9/01/40

 

 

220

 

 

235,513

 

 

 

 

 

 



 

 

 

 

 

 

 

885,743

 









Illinois — 5.3%

 

 

 

 

 

 

 

Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38

 

 

400

 

 

463,204

 

Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33

 

 

250

 

 

272,979

 

 

 

 

 

 



 

 

 

 

 

 

 

736,183

 









Nevada — 4.0%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/38

 

 

500

 

 

561,875

 









New Hampshire — 1.3%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth College, 5.25%, 6/01/39

 

 

165

 

 

179,749

 









New Jersey — 2.3%

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGM), 5.00%, 12/15/32

 

 

300

 

 

313,041

 










See Notes to Financial Statements.

 

 

 

 


24

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

 

Schedule of Investments (concluded)

BlackRock Investment Quality Municipal Income Trust (RFA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

Par
(000)

 

Value

 









New York — 4.0%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series A, 5.75%, 6/15/40

 

$

240

 

$

271,697

 

Series FF-2, 5.50%, 6/15/40

 

 

255

 

 

284,670

 

 

 

 

 

 



 

 

 

 

 

 

 

556,367

 









Ohio — 1.7%

 

 

 

 

 

 

 

County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38

 

 

230

 

 

236,390

 









South Carolina — 4.0%

 

 

 

 

 

 

 

South Carolina State Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 1/01/38

 

 

510

 

 

557,726

 









Texas — 5.4%

 

 

 

 

 

 

 

City of San Antonio Texas, Refunding RB, Series A, 5.25%, 2/01/31

 

 

300

 

 

326,512

 

Harris County Cultural Education Facilities Finance Corp., RB, Hospital, Texas Children’s Hospital Project, 5.50%, 10/01/39

 

 

400

 

 

417,828

 

 

 

 

 

 



 

 

 

 

 

 

 

744,340

 









Virginia — 1.0%

 

 

 

 

 

 

 

Fairfax County IDA Virginia, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35

 

 

130

 

 

138,377

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 54.3%

 

 

 

 

 

7,528,449

 









Total Long-Term Investments
(Cost — $21,461,322) — 162.7%

 

 

 

 

 

22,546,152

 









 

 

 

 

 

 

 

 








 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.21% (g)(h)

 

 

353,621

 

 

353,621

 









Total Short-Term Securities
(Cost — $353,621) — 2.6%

 

 

 

 

 

353,621

 









Total Investments (Cost — $21,814,943*) — 165.3%

 

 

 

 

 

22,899,773

 

Liabilities in Excess of Other Assets — (3.3)%

 

 

 

 

 

(452,619

)

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (29.0)%

 

 

 

 

 

(4,017,098

)

Preferred Shares, at Redemption Value — (33.0)%

 

 

 

 

 

(4,575,155

)

 

 

 

 

 



 

Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

13,854,901

 

 

 

 

 

 



 

 









 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

17,860,366

 

 

 



 

Gross unrealized appreciation

 

$

1,352,876

 

Gross unrealized depreciation

 

 

(327,378

)

 

 



 

Net unrealized appreciation

 

$

1,025,498

 

 

 



 


 

 

(a)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 









Counterparty

 

Value

 

Unrealized
Appreciation

 









Morgan Stanley Capital Services, Inc.

 

$

603,940

 

$

3,176

 










 

 

(b)

Variable rate security. Rate shown is as of report date.

 

 

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(d)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(e)

Non-income producing security.

 

 

(f)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(g)

Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, are as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Affiliate

 

Shares
Held at
July 31,
2009

 

Net
Activity

 

Shares
Held at
July 31,
2010

 

Income

 















FFI Institutional Tax-Exempt Fund

 

 

100,105

 

 

253,516

 

 

353,621

 

$

725

 
















 

 

 

(h)

Represents the current yield as of report date.

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of July 31, 2010 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 















Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

22,546,152

 

 

 

$

22,546,152

 

Short-Term Securities

 

$

353,621

 

 

 

 

 

 

353,621

 

 

 













Total

 

$

353,621

 

$

22,546,152

 

 

 

$

22,899,773

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

 

See Notes to Financial Statements.

 

 





 

ANNUAL REPORT

JULY 31, 2010

25




 

 


 

 

Schedule of Investments July 31, 2010

BlackRock Municipal Income Investment Trust (BBF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 








 

Arizona — 1.4%

 

 

 

 

 

 

 

Maricopa County Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 6/01/35

 

$

695

 

$

699,247

 

Pima County IDA, Refunding IDRB, Tucson Electric Power, 5.75%, 9/01/29

 

 

625

 

 

638,481

 

 

 

 

 

 



 

 

 

 

 

 

 

1,337,728

 









California — 19.6%

 

 

 

 

 

 

 

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/44

 

 

1,355

 

 

1,481,652

 

California Health Facilities Financing Authority, Refunding RB, Series A:

 

 

 

 

 

 

 

Catholic Healthcare West, 6.00%, 7/01/39

 

 

890

 

 

954,036

 

St. Joseph Health System, 5.75%, 7/01/39

 

 

1,375

 

 

1,438,346

 

California State Public Works Board, RB:

 

 

 

 

 

 

 

Department of General Services, Buildings 8 & 9, Series A, 6.25%, 4/01/34

 

 

2,075

 

 

2,180,970

 

Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34

 

 

645

 

 

688,325

 

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (a)

 

 

2,635

 

 

2,768,937

 

Los Angeles Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, 5.00%, 5/15/35

 

 

2,725

 

 

2,775,521

 

Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38

 

 

1,450

 

 

1,547,599

 

San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36

 

 

1,600

 

 

1,700,336

 

San Francisco City & County Airports Commission, RB, Second Series, Series F, 5.00%, 5/01/40 (a)

 

 

1,360

 

 

1,355,716

 

State of California, GO, Various Purpose, 6.00%, 3/01/33

 

 

1,275

 

 

1,380,188

 

 

 

 

 

 



 

 

 

 

 

 

 

18,271,626

 









Colorado — 3.3%

 

 

 

 

 

 

 

City & County of Denver Colorado, Refunding RB, Series A, 5.25%, 11/15/36

 

 

1,810

 

 

1,888,283

 

Colorado Health Facilities Authority, Refunding RB, Catholic Healthcare, Series A, 5.50%, 7/01/34

 

 

1,095

 

 

1,168,047

 

 

 

 

 

 



 

 

 

 

 

 

 

3,056,330

 









District of Columbia — 1.2%

 

 

 

 

 

 

 

District of Columbia Water & Sewer Authority, RB, Series A, 5.25%, 10/01/29

 

 

1,000

 

 

1,079,090

 









Florida — 4.9%

 

 

 

 

 

 

 

County of St. John’s Florida, RB, CAB (AMBAC), 5.35%, 6/01/30 (b)

 

 

3,265

 

 

1,108,663

 

Escambia County Health Facilities Authority, RB, Florida Health Care Facility Loan, VHA Program (AMBAC), 5.95%, 7/01/20

 

 

619

 

 

638,364

 

New River Community Development District, Special Assessment Bonds, Series B, 5.00%, 5/01/13 (c)(d)

 

 

1,500

 

 

717,600

 

Village Center Community Development District, RB, Series A (NPFGC), 5.00%, 11/01/32

 

 

1,795

 

 

1,530,543

 

Watergrass Community Development District, Special Assessment Bonds, Series B, 5.13%, 11/01/14

 

 

1,000

 

 

588,300

 

 

 

 

 

 



 

 

 

 

 

 

 

4,583,470

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Georgia — 6.4%

 

 

 

 

 

 

 

Metropolitan Atlanta Rapid Transit Authority, RB, Third Series, 5.00%, 7/01/39

 

$

2,450

 

$

2,577,719

 

Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23

 

 

2,900

 

 

3,328,417

 

 

 

 

 

 



 

 

 

 

 

 

 

5,906,136

 









Illinois — 8.7%

 

 

 

 

 

 

 

County of Cook Illinois, GO, Refunding, Series A, 5.25%, 11/15/33

 

 

1,685

 

 

1,775,282

 

Illinois Finance Authority, RB, Rush University Medical Center Obligation Group, Series B, 7.25%, 11/01/30

 

 

1,600

 

 

1,830,352

 

Illinois Finance Authority, Refunding RB, Series A:

 

 

 

 

 

 

 

Northwestern Memorial Hospital, 6.00%, 8/15/39

 

 

1,900

 

 

2,078,733

 

OSF Healthcare System, 6.00%, 5/15/39

 

 

1,000

 

 

1,009,470

 

State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34

 

 

1,375

 

 

1,421,214

 

 

 

 

 

 



 

 

 

 

 

 

 

8,115,051

 









Indiana — 2.6%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB, Indiana Municipal Power Agency, Series B, 6.00%, 1/01/39

 

 

2,210

 

 

2,404,568

 









Kansas — 1.9%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB, Adventist Health, 5.50%, 11/15/29

 

 

1,600

 

 

1,727,872

 









Kentucky — 4.1%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority, Refunding RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40

 

 

660

 

 

687,575

 

Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34

 

 

1,500

 

 

1,654,785

 

Louisville/Jefferson County Metropolitan Government, Refunding RB, Jewish Hospital & St. Mary’s HealthCare, 6.13%, 2/01/37

 

 

1,450

 

 

1,506,898

 

 

 

 

 

 



 

 

 

 

 

 

 

3,849,258

 









Massachusetts — 2.0%

 

 

 

 

 

 

 

Massachusetts Health & Educational Facilities Authority, RB, Tufts University, 5.38%, 8/15/38

 

 

1,000

 

 

1,090,150

 

Massachusetts State College Building Authority, RB, Series A, 5.50%, 5/01/39

 

 

750

 

 

813,878

 

 

 

 

 

 



 

 

 

 

 

 

 

1,904,028

 









Michigan — 2.5%

 

 

 

 

 

 

 

Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38

 

 

1,000

 

 

1,090,450

 

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39

 

 

995

 

 

1,188,110

 

 

 

 

 

 



 

 

 

 

 

 

 

2,278,560

 









Nebraska — 0.3%

 

 

 

 

 

 

 

Lancaster County Hospital Authority No. 1, RB, Immanuel Obligation Group, 5.63%, 1/01/40

 

 

315

 

 

320,163

 









Nevada — 9.9%

 

 

 

 

 

 

 

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34

 

 

1,600

 

 

1,771,808

 

County of Clark Nevada, GO, Refunding, Transportation, Series A, 5.00%, 12/01/29

 

 

2,000

 

 

2,087,840

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Motor Vehicle Fuel Tax, 5.00%, 7/01/28

 

 

2,000

 

 

2,077,200

 

Series B, 5.75%, 7/01/42

 

 

3,075

 

 

3,279,733

 

 

 

 

 

 



 

 

 

 

 

 

 

9,216,581

 










 

 

 

 

See Notes to Financial Statements.

 





26

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

 

Schedule of Investments (continued)

BlackRock Municipal Income Investment Trust (BBF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey — 2.8%

 

 

 

 

 

 

 

New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29

 

$

1,165

 

$

1,212,637

 

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A, 5.88%, 12/15/38

 

 

1,295

 

 

1,431,350

 

 

 

 

 

 



 

 

 

 

 

 

 

2,643,987

 









New York — 9.3%

 

 

 

 

 

 

 

City of Troy New York, Refunding RB, Rensselaer Polytechnic, Series A, 5.13%, 9/01/40

 

 

1,380

 

 

1,402,218

 

Long Island Power Authority, Refunding RB, Series A, 5.50%, 4/01/24

 

 

1,055

 

 

1,179,743

 

New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

1,500

 

 

1,604,520

 

New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49

 

 

605

 

 

632,273

 

New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38

 

 

2,000

 

 

2,168,600

 

Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.38%, 11/15/38

 

 

1,510

 

 

1,646,293

 

 

 

 

 

 



 

 

 

 

 

 

 

8,633,647

 









North Carolina — 1.2%

 

 

 

 

 

 

 

City of Charlotte North Carolina, Refunding RB, Series A, 5.50%, 7/01/34

 

 

180

 

 

192,188

 

North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/42

 

 

855

 

 

875,186

 

 

 

 

 

 



 

 

 

 

 

 

 

1,067,374

 









Pennsylvania — 3.8%

 

 

 

 

 

 

 

Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39

 

 

500

 

 

542,485

 

Pennsylvania Turnpike Commission, RB, Sub-Series B, 5.25%, 6/01/39

 

 

2,945

 

 

3,032,908

 

 

 

 

 

 



 

 

 

 

 

 

 

3,575,393

 









Puerto Rico — 2.9%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37

 

 

2,605

 

 

2,726,028

 









Texas — 14.0%

 

 

 

 

 

 

 

City of Houston Texas, RB, Senior Lien, Series A, 5.50%, 7/01/39

 

 

595

 

 

638,756

 

Conroe ISD Texas, GO, School Building, Series A, 5.75%, 2/15/35

 

 

890

 

 

969,958

 

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31

 

 

500

 

 

568,375

 

Lower Colorado River Authority, RB:

 

 

 

 

 

 

 

5.75%, 5/15/28

 

 

810

 

 

863,565

 

5.50%, 5/15/33

 

 

2,000

 

 

2,140,760

 

North Texas Tollway Authority, RB, System, First Tier, Series K-1 (AGC), 5.75%, 1/01/38

 

 

1,000

 

 

1,088,950

 

Tarrant County Cultural Education Facilities Finance Corp., RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit Group, 5.00%, 11/15/29

 

 

1,635

 

 

1,683,886

 

Scott & White Healthcare, 6.00%, 8/15/45

 

 

1,905

 

 

2,010,785

 

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, Note Mobility, 6.88%, 12/31/39

 

 

2,980

 

 

3,092,823

 

 

 

 

 

 



 

 

 

 

 

 

 

13,057,858

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Utah — 1.3%

 

 

 

 

 

 

 

City of Riverton Utah, RB, IHC Health Services Inc., 5.00%, 8/15/41

 

$

1,205

 

$

1,233,137

 









Virginia — 1.3%

 

 

 

 

 

 

 

Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/35

 

 

1,000

 

 

1,161,050

 









West Virginia — 1.2%

 

 

 

 

 

 

 

West Virginia EDA, Refunding RB, Appalachian Power Co., Amos Project, Series A, 5.38%, 12/01/38

 

 

1,095

 

 

1,096,205

 









Wisconsin — 1.9%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health Inc., 5.25%, 4/01/39

 

 

1,675

 

 

1,723,039

 









Wyoming — 1.4%

 

 

 

 

 

 

 

County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, 5.25%, 7/15/26

 

 

1,235

 

 

1,314,596

 









Total Municipal Bonds — 109.9%

 

 

 

 

 

102,282,775

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 









California — 14.2%

 

 

 

 

 

 

 

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/39

 

 

1,995

 

 

2,144,186

 

Los Angeles Community College District California, GO, Election of 2008, Series A, 6.00%, 8/01/33

 

 

3,898

 

 

4,398,173

 

Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34

 

 

400

 

 

408,352

 

San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.50%, 8/01/39

 

 

4,214

 

 

4,545,373

 

University of California, RB, Series O, 5.75%, 5/15/34

 

 

1,500

 

 

1,694,040

 

 

 

 

 

 



 

 

 

 

 

 

 

13,190,124

 









District of Columbia — 3.8%

 

 

 

 

 

 

 

District of Columbia, RB, Series A, 5.50%, 12/01/30

 

 

1,395

 

 

1,579,851

 

District of Columbia Water & Sewer Authority, RB, Series A, 5.50%, 10/01/39

 

 

1,799

 

 

1,946,081

 

 

 

 

 

 



 

 

 

 

 

 

 

3,525,932

 









Florida — 8.2%

 

 

 

 

 

 

 

Jacksonville Economic Development Commission, RB, Mayo Clinic Jacksonville, Series B, 5.50%, 11/15/36

 

 

7,490

 

 

7,647,515

 









Illinois — 3.5%

 

 

 

 

 

 

 

Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38

 

 

2,800

 

 

3,242,428

 









Nevada — 5.4%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

2,500

 

 

2,809,375

 

Series B, 5.50%, 7/01/29

 

 

1,994

 

 

2,207,476

 

 

 

 

 

 



 

 

 

 

 

 

 

5,016,851

 









New Hampshire — 1.3%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth College, 5.25%, 6/01/39

 

 

1,094

 

 

1,192,882

 










 

 

 

 

See Notes to Financial Statements.

 

 





 

ANNUAL REPORT

JULY 31, 2010

27




 

 


 

 

Schedule of Investments (concluded)

BlackRock Municipal Income Investment Trust (BBF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 









New Jersey — 2.2%

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGM), 5.00%, 12/15/32

 

$

2,000

 

$

2,086,940

 









New York — 4.1%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series A, 5.75%, 6/15/40

 

 

1,410

 

 

1,596,217

 

Series FF-2, 5.50%, 6/15/40

 

 

1,994

 

 

2,227,123

 

 

 

 

 

 



 

 

 

 

 

 

 

3,823,340

 









Ohio — 1.7%

 

 

 

 

 

 

 

County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38

 

 

1,560

 

 

1,603,337

 









South Carolina — 2.1%

 

 

 

 

 

 

 

South Carolina State Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 1/01/38

 

 

1,755

 

 

1,919,233

 









Texas — 5.5%

 

 

 

 

 

 

 

City of San Antonio Texas, Refunding RB, Series A, 5.25%, 2/01/31

 

 

2,025

 

 

2,203,955

 

Harris County Cultural Education Facilities Finance Corp., RB, Hospital, Texas Children’s Hospital Project, 5.50%, 10/01/39

 

 

2,750

 

 

2,872,567

 

 

 

 

 

 



 

 

 

 

 

 

 

5,076,522

 









Virginia — 1.0%

 

 

 

 

 

 

 

Fairfax County IDA Virginia, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35

 

 

899

 

 

957,997

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 53.0%

 

 

 

 

 

49,283,101

 









Total Long-Term Investments
(Cost — $144,708,985) — 162.9%

 

 

 

 

 

151,565,876

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.21% (f)(g)

 

 

4,963,552

 

 

4,963,552

 









Total Short-Term Securities
(Cost — $4,963,552) — 5.3%

 

 

 

 

 

4,963,552

 









Total Investments (Cost — $149,672,537*) — 168.2%

 

 

 

 

 

156,529,428

 

Liabilities in Excess of Other Assets — (3.1)%

 

 

 

 

 

(2,925,056

)

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (28.3)%

 

 

 

 

 

(26,279,488

)

Preferred Shares, at Redemption Value — (36.8)%

 

 

 

 

 

(34,252,002

)

 

 

 

 

 



 

Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

93,072,882

 

 

 

 

 

 



 

 









 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

123,909,047

 

 

 



 

Gross unrealized appreciation

 

$

8,410,050

 

Gross unrealized depreciation

 

 

(2,052,070

)

 

 



 

Net unrealized appreciation

 

$

6,357,980

 

 

 



 


 

 

(a)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 









Counterparty

 

Value

 

Unrealized
Appreciation

 







Morgan Stanley Co.

 

$

4,124,653

 

$

21,725

 










 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(d)

Non-income producing security.

 

 

(e)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(f)

Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, are as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Affiliate

 

Shares
Held at
July 31,
2009

 

Net
Activity

 

Shares
Held at
July 31,
2010

 

Income

 















FFI Institutional Tax-Exempt Fund

 

 

1,702,906

 

 

3,260,646

 

 

4,963,552

 

$

9,751

 
















 

 

 

(g)

Represents the current yield as of report date.

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of July 31, 2010 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 















Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

151,565,876

 

 

 

$

151,565,876

 

Short-Term Securities

 

$

4,963,552

 

 

 

 

 

 

4,963,552

 

 

 













Total

 

$

4,963,552

 

$

151,565,876

 

 

 

$

156,529,428

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

 

See Notes to Financial Statements.

 





28

ANNUAL REPORT

JULY 31, 2010

 




 

 



 

 

Schedule of Investments July 31, 2010

BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey — 132.7%

 

 

 

 

 

 

 









Corporate — 15.3%

 

 

 

 

 

 

 

New Jersey EDA, RB, AMT:

 

 

 

 

 

 

 

Continental Airlines Inc. Project, 7.00%, 11/15/30

 

$

925

 

$

926,609

 

Disposal, Waste Management of New Jersey, Series A, Mandatory Put Bonds, 5.30%, 6/01/15 (a)

 

 

500

 

 

539,755

 

New Jersey EDA, Refunding RB, New Jersey American Water Co., Series A, AMT, 5.70%, 10/01/39

 

 

175

 

 

179,711

 

Salem County Utilities Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29

 

 

300

 

 

304,239

 

 

 

 

 

 



 

 

 

 

 

 

 

1,950,314

 









County/City/Special District/School District — 10.4%

 

 

 

 

 

 

 

City of Perth Amboy New Jersey, GO, CAB (AGM), 5.10%, 7/01/34 (b)

 

 

100

 

 

93,145

 

Essex County Improvement Authority, Refunding RB, Project Consolidation (NPFGC), 5.50%, 10/01/29

 

 

260

 

 

297,492

 

Hudson County Improvement Authority, RB:

 

 

 

 

 

 

 

CAB, Series A-1 (NPFGC), 4.51%, 12/15/32 (c)

 

 

1,000

 

 

277,990

 

Harrison Parking Facility Project, Series C (AGC), 5.38%, 1/01/44

 

 

340

 

 

364,337

 

Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37

 

 

200

 

 

36,960

 

Salem County Improvement Authority, RB, Finlaw Street Office Building (AGM), 5.25%, 8/15/38

 

 

100

 

 

100,231

 

State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.13%, 6/15/24

 

 

150

 

 

160,758

 

 

 

 

 

 



 

 

 

 

 

 

 

1,330,913

 









Education — 18.3%

 

 

 

 

 

 

 

New Jersey EDA, RB, School Facilities Construction:

 

 

 

 

 

 

 

Series CC-2, 5.00%, 12/15/31

 

 

200

 

 

211,820

 

Series CC-2, 5.00%, 12/15/32

 

 

200

 

 

210,830

 

Series S, 5.00%, 9/01/36

 

 

200

 

 

206,124

 

New Jersey Educational Facilities Authority, RB, Montclair State University, Series J, 5.25%, 7/01/38

 

 

100

 

 

104,607

 

New Jersey Educational Facilities Authority, Refunding RB:

 

 

 

 

 

 

 

College of New Jersey, Series D (AGM), 5.00%, 7/01/35

 

 

380

 

 

396,902

 

Georgian Court University, Series D, 5.00%, 7/01/33

 

 

100

 

 

96,170

 

Rowan University, Series B (AGC), 5.00%, 7/01/24

 

 

255

 

 

278,850

 

University of Medicine & Dentistry, Series B, 7.50%, 12/01/32

 

 

175

 

 

200,935

 

New Jersey Higher Education Assistance Authority, Refunding RB, Series 1A:

 

 

 

 

 

 

 

5.00%, 12/01/25

 

 

65

 

 

66,063

 

5.00%, 12/01/26

 

 

50

 

 

50,630

 

5.13%, 12/01/27

 

 

200

 

 

204,378

 

5.25%, 12/01/32

 

 

300

 

 

306,192

 

 

 

 

 

 



 

 

 

 

 

 

 

2,333,501

 









Health — 23.3%

 

 

 

 

 

 

 

Burlington County Bridge Commission, Refunding RB, The Evergreens Project, 5.63%, 1/01/38

 

 

150

 

 

131,055

 

New Jersey EDA, RB, First Mortgage, Lions Gate Project, Series A:

 

 

 

 

 

 

 

5.75%, 1/01/25

 

 

60

 

 

55,561

 

5.88%, 1/01/37

 

 

110

 

 

94,018

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

First Mortgage, Winchester, Series A, 5.80%, 11/01/31

 

 

500

 

 

500,505

 

Seabrook Village Inc. Facility, 5.25%, 11/15/26

 

 

140

 

 

123,327

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey (continued)

 

 

 

 

 

 

 









Health (concluded)

 

 

 

 

 

 

 

New Jersey Health Care Facilities Financing Authority, RB:

 

 

 

 

 

 

 

Hackensack University Medical Center, 6.00%, 1/01/25

 

$

1,000

 

$

1,005,710

 

Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38

 

 

250

 

 

253,463

 

Meridian Health, Series I (AGC), 5.00%, 7/01/38

 

 

100

 

 

101,696

 

Virtua Health (AGC), 5.50%, 7/01/38

 

 

150

 

 

160,119

 

New Jersey Health Care Facilities Financing Authority, Refunding RB:

 

 

 

 

 

 

 

CAB, St. Barnabas Health, Series B, 5.90%, 7/01/30 (c)

 

 

500

 

 

113,375

 

CAB, St. Barnabas Health, Series B, 5.68%, 7/01/36 (c)

 

 

840

 

 

115,601

 

CAB, St. Barnabas Health, Series B, 5.75%, 7/01/37 (c)

 

 

900

 

 

114,435

 

St. Barnabas Health Care System, Series A, 5.00%, 7/01/29

 

 

250

 

 

207,120

 

 

 

 

 

 



 

 

 

 

 

 

 

2,975,985

 









Housing — 13.9%

 

 

 

 

 

 

 

New Jersey State Housing & Mortgage Finance Agency, RB:

 

 

 

 

 

 

 

S/F Housing, Series CC, 5.00%, 10/01/34

 

 

210

 

 

212,640

 

S/F Housing, Series X, AMT, 4.85%, 4/01/16

 

 

500

 

 

526,395

 

S/F Housing, Series X, AMT, 5.05%, 4/01/18

 

 

215

 

 

225,182

 

Series A, 4.75%, 11/01/29

 

 

140

 

 

140,825

 

Series AA, 6.38%, 10/01/28

 

 

245

 

 

272,117

 

Series AA, 6.50%, 10/01/38

 

 

160

 

 

175,246

 

Newark Housing Authority, RB, South Ward Police Facility (AGC), 6.75%, 12/01/38

 

 

200

 

 

228,728

 

 

 

 

 

 



 

 

 

 

 

 

 

1,781,133

 









State — 22.0%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/24

 

 

300

 

 

327,960

 

Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25

 

 

570

 

 

618,661

 

Newark Downtown District Management Corp., 5.13%, 6/15/37

 

 

100

 

 

91,365

 

School Facilities Construction, Series Z (AGC), 5.50%, 12/15/34

 

 

500

 

 

550,030

 

School Facilities Construction, Series Z (AGC), 6.00%, 12/15/34

 

 

300

 

 

341,229

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

New Jersey-American Water Co. Project, Series B, AMT, 5.60%, 11/01/34

 

 

150

 

 

154,300

 

School Facilities Construction, Series AA, 5.50%, 12/15/29

 

 

200

 

 

220,488

 

School Facilities Construction, Series N-1 (NPFGC), 5.50%, 9/01/28

 

 

100

 

 

112,016

 

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A:

 

 

 

 

 

 

 

6.00%, 12/15/38

 

 

150

 

 

167,766

 

(AGC), 5.63%, 12/15/28

 

 

100

 

 

112,371

 

State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%, 6/15/28

 

 

100

 

 

105,059

 

 

 

 

 

 



 

 

 

 

 

 

 

2,801,245

 









Tobacco — 1.4%

 

 

 

 

 

 

 

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 4.50%, 6/01/23

 

 

190

 

 

173,970

 










See Notes to Financial Statements.

 

 

 

 


 

ANNUAL REPORT

JULY 31, 2010

29




 

 



 

 

Schedule of Investments (continued)

BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey (concluded)

 

 

 

 

 

 

 









Transportation — 19.6%

 

 

 

 

 

 

 

Delaware River Port Authority of Pennsylvania & New Jersey, RB, Series D, 5.00%, 1/01/40

 

$

95

 

$

96,351

 

New Jersey State Turnpike Authority, RB, Series E, 5.25%, 1/01/40

 

 

300

 

 

317,337

 

New Jersey State Turnpike Authority, Refunding RB (AMBAC):

 

 

 

 

 

 

 

Series C, 6.50%, 1/01/16

 

 

160

 

 

193,056

 

Series C, 6.50%, 1/01/16 (d)

 

 

785

 

 

901,125

 

Series C-2005, 6.50%, 1/01/16 (d)

 

 

55

 

 

68,612

 

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A, 5.88%, 12/15/38

 

 

175

 

 

193,426

 

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.75%, 11/01/30

 

 

250

 

 

268,047

 

South Jersey Transportation Authority, RB, Series A (NPFGC), 4.50%, 11/01/35

 

 

490

 

 

468,587

 

 

 

 

 

 



 

 

 

 

 

 

 

2,506,541

 









Utilities — 8.5%

 

 

 

 

 

 

 

Cumberland County Improvement Authority, RB, Series A, 5.00%, 1/01/30

 

 

75

 

 

75,407

 

Passaic Valley Sewage Commissioners, Refunding RB, Sewer System, Series E (AMBAC), 5.75%, 12/01/21

 

 

1,000

 

 

1,004,710

 

 

 

 

 

 



 

 

 

 

 

 

 

1,080,117

 









Total Municipal Bonds in New Jersey

 

 

 

 

 

16,933,719

 









 

 

 

 

 

 

 

 









Puerto Rico — 17.0%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.7%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., Refunding RB, First Sub-Series C, 6.00%, 8/01/39

 

 

205

 

 

221,316

 









Education — 4.5%

 

 

 

 

 

 

 

Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority, RB, Ana G. Mendez University System Project, 5.00%, 3/01/26

 

 

600

 

 

570,648

 









Housing — 2.2%

 

 

 

 

 

 

 

Puerto Rico Housing Finance Authority, Refunding RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

 

 

275

 

 

277,676

 









State — 5.8%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Infrastructure Financing Authority, RB, CAB, Series A (AMBAC), 4.37%, 7/01/37 (c)

 

 

795

 

 

130,785

 

Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series M-3 (NPFGC), 6.00%, 7/01/27

 

 

215

 

 

227,468

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37

 

 

365

 

 

381,958

 

 

 

 

 

 



 

 

 

 

 

 

 

740,211

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 









Puerto Rico (concluded)

 

 

 

 

 

 

 









Utilities — 2.8%

 

 

 

 

 

 

 

Puerto Rico Electric Power Authority, RB, Series WW, 5.50%, 7/01/38

 

$

350

 

$

357,868

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

2,167,719

 









Total Municipal Bonds — 149.7%

 

 

 

 

 

19,101,438

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 









New Jersey — 1.9%

 

 

 

 

 

 

 









Transportation — 1.9%

 

 

 

 

 

 

 

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.25%, 11/01/35

 

 

240

 

 

247,448

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 1.9%

 

 

 

 

 

247,448

 









Total Long-Term Investments
(Cost — $19,378,628) — 151.6%

 

 

 

 

 

19,348,886

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









BIF New Jersey Municipal Money Fund, 0.04% (f)(g)

 

 

413,597

 

 

413,597

 









Total Short-Term Securities
(Cost — $413,597) — 3.2%

 

 

 

 

 

413,597

 









Total Investments (Cost — $19,792,225*) — 154.8%

 

 

 

 

 

19,762,483

 

Other Assets Less Liabilities — 0.5%

 

 

 

 

 

62,068

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (1.3)%

 

 

 

 

 

(160,044

)

Preferred Shares, at Redemption Value — (54.0)%

 

 

 

 

 

(6,900,403

)

 

 

 

 

 



 

Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

12,764,104

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 









 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

19,616,494

 

 

 



 

Gross unrealized appreciation

 

$

745,743

 

Gross unrealized depreciation

 

 

(759,671

)

 

 



 

Net unrealized depreciation

 

$

(13,928

)

 

 



 


 

 

(a)

Variable rate security. Rate shown is as of report date.

 

 

(b)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(d)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(e)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


See Notes to Financial Statements.

 

 

 

 


30

ANNUAL REPORT

JULY 31, 2010

 




 

 



 

 

Schedule of Investments (concluded)

BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)


 

 

(f)

Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, are as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Affiliate

 

Shares
Held at
July 31,
2009

 

Net
Activity

 

Shares
Held at
July 31,
2010

 

Income

 











BIF New Jersey Municipal Money Fund

 

819,689

 

(406,092)

 

413,597

 

$322

 












 

 

 

(g)

Represents the current yield as of report date.

 

 

 

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

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of July 31, 2010 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 















Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Investments1

 

 

 

$

19,348,886

 

 

$

19,348,886

 

Short-Term Securities

 

$

413,597

 

 

 

 

 

413,597

 

 

 












Total

 

$

413,597

 

$

19,348,886

 

 

$

19,762,483

 

 

 












                     1          See above Schedule of Investments for values in each sector.

See Notes to Financial Statements.

 

 

 

 


 

ANNUAL REPORT

JULY 31, 2010

31




 

 


 

 

Schedule of Investments July 31, 2010

BlackRock New Jersey Municipal Income Trust (BNJ)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey — 119.4%

 

 

 

 

 

 

 









Corporate — 10.6%

 

 

 

 

 

 

 

New Jersey EDA, RB, AMT (a):

 

 

 

 

 

 

 

Continental Airlines Inc. Project, 7.00%, 11/15/30

 

$

3,450

 

$

3,456,003

 

Continental Airlines Inc. Project, 7.20%, 11/15/30

 

 

2,000

 

 

2,008,340

 

Disposal, Waste Management of New Jersey, Series A, Mandatory Put Bonds, 5.30%, 6/01/15

 

 

2,000

 

 

2,159,020

 

New Jersey EDA, Refunding RB, New Jersey American Water Co., Series A, AMT, 5.70%, 10/01/39

 

 

1,500

 

 

1,540,380

 

Salem County Utilities Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29

 

 

2,400

 

 

2,433,912

 

 

 

 

 

 



 

 

 

 

 

 

 

11,597,655

 









County/City/Special District/School District — 11.7%

 

 

 

 

 

 

 

City of Perth Amboy New Jersey, GO, CAB (AGM) (b):

 

 

 

 

 

 

 

5.10%, 7/01/34

 

 

1,075

 

 

1,001,309

 

5.11%, 7/01/35

 

 

175

 

 

162,697

 

City of Vineland New Jersey, GO, Refunding, Electric Utilities, AMT (NPFGC):

 

 

 

 

 

 

 

5.30%, 5/15/30

 

 

1,500

 

 

1,501,950

 

5.38%, 5/15/31

 

 

1,500

 

 

1,502,460

 

Essex County Improvement Authority, Refunding RB, Project Consolidation (NPFGC), 5.50%, 10/01/29

 

 

2,630

 

 

3,009,246

 

Hudson County Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC), 5.38%, 1/01/44

 

 

2,400

 

 

2,571,792

 

Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37

 

 

1,790

 

 

330,792

 

Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 4.38%, 1/01/37

 

 

2,600

 

 

2,505,594

 

Salem County Improvement Authority, RB, Finlaw Street Office Building (AGM), 5.25%, 8/15/38

 

 

225

 

 

225,520

 

 

 

 

 

 



 

 

 

 

 

 

 

12,811,360

 









Education — 12.3%

 

 

 

 

 

 

 

New Jersey EDA, RB, School Facilities Construction, Series CC-2, 5.00%, 12/15/31

 

 

1,525

 

 

1,615,127

 

New Jersey Educational Facilities Authority, RB:

 

 

 

 

 

 

 

Georgian Court College Project, Series C, 6.50%, 7/01/13 (c)

 

 

2,120

 

 

2,483,453

 

Montclair State University, Series J, 5.25%, 7/01/38

 

 

580

 

 

606,721

 

New Jersey Educational Facilities Authority, Refunding RB:

 

 

 

 

 

 

 

College of New Jersey, Series D (AGM), 5.00%, 7/01/35

 

 

3,230

 

 

3,373,670

 

Fairleigh Dickinson University, Series C, 6.00%, 7/01/20

 

 

2,000

 

 

2,059,540

 

Georgian Court University, Series D, 5.00%, 7/01/33

 

 

250

 

 

240,425

 

University of Medicine & Dentistry, Series B, 7.50%, 12/01/32

 

 

1,450

 

 

1,664,890

 

New Jersey Higher Education Assistance Authority, Refunding RB, Series 1A:

 

 

 

 

 

 

 

5.00%, 12/01/25

 

 

535

 

 

543,747

 

5.00%, 12/01/26

 

 

350

 

 

354,407

 

5.25%, 12/01/32

 

 

500

 

 

510,320

 

 

 

 

 

 



 

 

 

 

 

 

 

13,452,300

 









Health — 26.7%

 

 

 

 

 

 

 

Burlington County Bridge Commission, Refunding RB, The Evergreens Project, 5.63%, 1/01/38

 

 

1,000

 

 

873,700

 

City of Newark New Jersey, Refunding RB, New Community Urban Renewal, Series A (Ginnie Mae), 5.20%, 6/01/30

 

 

1,795

 

 

1,828,567

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey (continued)

 

 

 

 

 

 

 









Health (concluded)

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

First Mortgage, Lions Gate Project, Series A, 5.75%, 1/01/25

 

$

500

 

$

463,010

 

First Mortgage, Lions Gate Project, Series A, 5.88%, 1/01/37

 

 

855

 

 

730,777

 

Masonic Charity Foundation Project, 5.50%, 6/01/31

 

 

2,000

 

 

2,007,120

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

First Mortgage, Winchester, Series A, 5.75%, 11/01/24

 

 

4,050

 

 

4,086,004

 

Seabrook Village Inc. Facility, 5.25%, 11/15/26

 

 

1,790

 

 

1,576,829

 

New Jersey Health Care Facilities Financing Authority, RB:

 

 

 

 

 

 

 

Health System, Catholic Health East, Series A, 5.38%, 11/15/12 (c)

 

 

3,000

 

 

3,327,690

 

Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38

 

 

2,350

 

 

2,382,547

 

Kennedy Health System, 5.63%, 7/01/31

 

 

2,030

 

 

2,040,455

 

Meridian Health, Series I (AGC), 5.00%, 7/01/38

 

 

750

 

 

762,720

 

South Jersey Hospital, 6.00%, 7/01/12 (c)

 

 

1,500

 

 

1,658,310

 

Virtua Health (AGC), 5.50%, 7/01/38

 

 

1,250

 

 

1,334,325

 

New Jersey Health Care Facilities Financing Authority, Refunding RB:

 

 

 

 

 

 

 

Atlantic City Medical System, 5.75%, 7/01/25

 

 

1,255

 

 

1,289,299

 

CAB, St. Barnabas Health, Series B, 5.90%, 7/01/30 (d)

 

 

2,500

 

 

566,875

 

CAB, St. Barnabas Health, Series B, 5.68%, 7/01/36 (d)

 

 

7,700

 

 

1,059,674

 

CAB, St. Barnabas Health, Series B, 5.75%, 7/01/37 (d)

 

 

7,250

 

 

921,838

 

South Jersey Hospital, 5.00%, 7/01/46

 

 

1,650

 

 

1,598,586

 

St. Barnabas Health Care System, Series A, 5.00%, 7/01/29

 

 

750

 

 

621,360

 

 

 

 

 

 



 

 

 

 

 

 

 

29,129,686

 









Housing — 16.3%

 

 

 

 

 

 

 

Middlesex County Improvement Authority, RB, AMT (Fannie Mae):

 

 

 

 

 

 

 

Administration Building Residential Project, 5.35%, 7/01/34

 

 

1,400

 

 

1,406,034

 

New Brunswick Apartments Rental Housing, 5.30%, 8/01/35

 

 

4,360

 

 

4,391,218

 

New Jersey State Housing & Mortgage Finance Agency, RB:

 

 

 

 

 

 

 

S/F Housing, Series CC, 5.00%, 10/01/34

 

 

1,775

 

 

1,797,312

 

S/F Housing, Series X, AMT, 4.85%, 4/01/16

 

 

1,750

 

 

1,842,382

 

Series A, 4.75%, 11/01/29

 

 

1,185

 

 

1,191,980

 

Series AA, 6.38%, 10/01/28

 

 

1,470

 

 

1,632,700

 

Series AA, 6.50%, 10/01/38

 

 

1,990

 

 

2,179,627

 

New Jersey State Housing & Mortgage Finance Agency, Refunding RB, S/F Housing, Series T, AMT, 4.70%, 10/01/37

 

 

700

 

 

669,130

 

Newark Housing Authority, RB, South Ward Police Facility (AGC):

 

 

 

 

 

 

 

5.75%, 12/01/30

 

 

580

 

 

626,011

 

6.75%, 12/01/38

 

 

1,850

 

 

2,115,734

 

 

 

 

 

 



 

 

 

 

 

 

 

17,852,128

 










 

 

 

 

See Notes to Financial Statements.

 





32

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

 

Schedule of Investments (continued)

BlackRock New Jersey Municipal Income Trust (BNJ)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey (concluded)

 

 

 

 

 

 

 









State — 25.5%

 

 

 

 

 

 

 

Garden State Preservation Trust, RB, CAB, Series B (AGM), 5.22%, 11/01/26 (d)

 

$

6,000

 

$

2,940,300

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Kapkowski Road Landfill Project, Series 1998B, AMT, 6.50%, 4/01/31

 

 

5,000

 

 

5,265,900

 

Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/24

 

 

1,000

 

 

1,093,200

 

Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25

 

 

1,365

 

 

1,481,530

 

School Facilities Construction, Series Z (AGC), 5.50%, 12/15/34

 

 

3,000

 

 

3,300,180

 

School Facilities Construction, Series Z (AGC), 6.00%, 12/15/34

 

 

3,000

 

 

3,412,290

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

New Jersey-American Water Co. Project, Series B, AMT, 5.60%, 11/01/34

 

 

1,275

 

 

1,311,554

 

School Facilities Construction, Series AA, 5.50%, 12/15/29

 

 

2,000

 

 

2,204,880

 

New Jersey EDA, Special Assessment Bonds, Refunding, Kapkowski Road Landfill Project, 6.50%, 4/01/28

 

 

2,500

 

 

2,751,600

 

New Jersey Transportation Trust Fund Authority, RB, Transportation System:

 

 

 

 

 

 

 

6.00%, 12/15/38

 

 

1,450

 

 

1,621,738

 

CAB, Series C (AGM), 4.85%, 12/15/32 (d)

 

 

4,000

 

 

1,111,960

 

Series A (AGC), 5.63%, 12/15/28

 

 

670

 

 

752,886

 

State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%, 6/15/28

 

 

600

 

 

630,354

 

 

 

 

 

 



 

 

 

 

 

 

 

27,878,372

 









Tobacco — 1.6%

 

 

 

 

 

 

 

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 4.50%, 6/01/23

 

 

1,915

 

 

1,753,431

 









Transportation — 13.6%

 

 

 

 

 

 

 

Delaware River Port Authority of Pennsylvania & New Jersey, RB, Series D, 5.00%, 1/01/40

 

 

800

 

 

811,376

 

New Jersey State Turnpike Authority, RB, Series E, 5.25%, 1/01/40

 

 

3,205

 

 

3,390,217

 

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A:

 

 

 

 

 

 

 

5.88%, 12/15/38

 

 

1,465

 

 

1,619,250

 

(AGC), 5.50%, 12/15/38

 

 

1,000

 

 

1,099,830

 

Port Authority of New York & New Jersey, RB, Special Project, JFK International Air Terminal, Series 6, AMT (NPFGC), 5.75%, 12/01/22

 

 

6,000

 

 

6,006,360

 

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.75%, 11/01/30

 

 

1,750

 

 

1,876,333

 

 

 

 

 

 



 

 

 

 

 

 

 

14,803,366

 









Utilities — 1.1%

 

 

 

 

 

 

 

Cumberland County Improvement Authority, RB, Series A, 5.00%, 1/01/30

 

 

620

 

 

623,360

 

Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 4.40%, 9/01/33 (d)

 

 

2,000

 

 

544,220

 

 

 

 

 

 



 

 

 

 

 

 

 

1,167,580

 









Total Municipal Bonds in New Jersey

 

 

 

 

 

130,445,878

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Multi-State — 6.0%

 

 

 

 

 

 

 









Housing — 6.0%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust, 6.80%, 11/30/50 (e)(f)

 

$

2,500

 

$

2,529,700

 

MuniMae TE Bond Subsidiary LLC (e)(f):

 

 

 

 

 

 

 

6.30%, 6/30/49

 

 

2,579

 

 

2,391,861

 

6.80%, 6/30/50

 

 

2,000

 

 

1,639,980

 









Total Municipal Bonds in Multi-State

 

 

 

 

 

6,561,541

 









 

 

 

 

 

 

 

 









Puerto Rico — 21.5%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.7%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., Refunding RB, First Sub-Series C, 6.00%, 8/01/39

 

 

1,740

 

 

1,878,487

 









Housing — 6.6%

 

 

 

 

 

 

 

Puerto Rico Housing Finance Authority, RB, Mortgage-Backed Securities, Series B, AMT (Ginnie Mae), 5.30%, 12/01/28

 

 

2,435

 

 

2,446,688

 

Puerto Rico Housing Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Mortgage-Backed Securities, Series A (Ginnie Mae), 5.20%, 12/01/33

 

 

2,435

 

 

2,446,688

 

Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

 

 

2,300

 

 

2,322,379

 

 

 

 

 

 



 

 

 

 

 

 

 

7,215,755

 









State — 9.3%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Infrastructure Financing Authority, RB, CAB, Series A (AMBAC), 4.37%, 7/01/37 (d)

 

 

6,000

 

 

987,060

 

Puerto Rico Public Buildings Authority, RB, CAB, Series D (AMBAC) (b):

 

 

 

 

 

 

 

5.50%, 7/01/12

 

 

1,335

 

 

1,098,905

 

5.46%, 7/01/17 (c)

 

 

3,665

 

 

3,937,236

 

Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series M-3 (NPFGC), 6.00%, 7/01/27

 

 

850

 

 

899,292

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37

 

 

3,075

 

 

3,217,864

 

 

 

 

 

 



 

 

 

 

 

 

 

10,140,357

 









Transportation — 2.0%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation Authority, Refunding RB, Series CC (AGC), 5.50%, 7/01/31

 

 

2,000

 

 

2,150,380

 









Utilities — 1.9%

 

 

 

 

 

 

 

Puerto Rico Electric Power Authority, RB, Series WW, 5.50%, 7/01/38

 

 

2,000

 

 

2,044,960

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

23,429,939

 









Total Municipal Bonds — 146.9%

 

 

 

 

 

160,437,358

 










 

 

 

 

See Notes to Financial Statements.

 

 





 

ANNUAL REPORT

JULY 31, 2010

33




 

 


 

 

Schedule of Investments (concluded)

BlackRock New Jersey Municipal Income Trust (BNJ)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

Par
(000)

 

Value

 







New Jersey — 3.8%

 

 

 

 

 

 

 









Transportation — 3.8%

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGM), 5.00%, 12/15/32

 

$

2,000

 

$

2,086,940

 

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.25%, 11/01/35

 

 

2,039

 

 

2,103,311

 









Total Municipal Bonds Transferred
to Tender Option Bond Trusts — 3.8%

 

 

 

 

 

4,190,251

 









Total Long-Term Investments
(Cost — $163,524,492) — 150.7%

 

 

 

 

 

164,627,609

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









BIF New Jersey Municipal Money Fund, 0.04% (h)(i)

 

 

5,032,609

 

 

5,032,609

 









Total Short-Term Securities
(Cost — $5,032,609) — 4.6%

 

 

 

 

 

5,032,609

 









Total Investments (Cost — $168,557,101*) — 155.3%

 

 

 

 

 

169,660,218

 

Other Assets Less Liabilities — 1.0%

 

 

 

 

 

1,058,806

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (2.2)%

 

 

 

 

 

(2,360,439

)

Preferred Shares, at Redemption Value — (54.1)%

 

 

 

 

 

(59,101,995

)

 

 

 

 

 



 

Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

109,256,590

 

 

 

 

 

 



 

 










 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

165,724,811

 

 

 



 

Gross unrealized appreciation

 

$

7,196,573

 

Gross unrealized depreciation

 

 

(5,620,462

)

 

 



 

Net unrealized appreciation

 

$

1,576,111

 

 

 



 


 

 

(a)

Variable rate security. Rate shown is as of report date.

 

 

(b)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(c)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(d)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(e)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(f)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

 

(g)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(h)

Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(e)(3) of the Investment Company Act of 1940, as amended, are as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Affiliate

 

Shares at
July 31,
2009

 

Net
Activity

 

Shares at
July 31,
2010

 

Income

 











BIF New Jersey Municipal Money Fund

 

 

10,639,704

 

 

(5,607,095

)

 

5,032,609

 

$

1,873

 
















 

 

(i)

Represents the current yield as of report date.

 

 

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

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:


 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

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

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of July 31, 2010 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 















Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

164,627,609

 

 

 

$

164,627,609

 

Short-Term Securities

 

$

5,032,609

 

 

 

 

 

 

5,032,609

 

 

 













Total

 

$

5,032,609

 

$

164,627,609

 

 

 

$

169,660,218

 

 

 














 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

 

See Notes to Financial Statements.

 





34

ANNUAL REPORT

JULY 31, 2010

 




 

 



 

 

Schedule of Investments July 31, 2010

BlackRock New York Investment Quality Municipal Trust Inc. (RNY)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York — 131.5%

 

 

 

 

 

 

 









Corporate — 18.2%

 

 

 

 

 

 

 

Chautauqua County Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42

 

$

130

 

$

133,358

 

Essex County Industrial Development Agency New York, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32

 

 

100

 

 

105,259

 

Jefferson County Industrial Development Agency New York, Refunding RB, Solid Waste, Series A, AMT, 5.20%, 12/01/20

 

 

150

 

 

149,990

 

New York City Industrial Development Agency, RB:
American Airlines Inc., JFK International Airport, AMT, 7.63%, 8/01/25 (a)

 

 

800

 

 

824,568

 

American Airlines Inc., JFK International Airport, AMT, 7.75%, 8/01/31 (a)

 

 

300

 

 

311,148

 

Liberty-IAC/InteractiveCorp, 5.00%, 9/01/35

 

 

250

 

 

225,795

 

New York Liberty Development Corp., RB, Goldman Sachs Headquarters:

 

 

 

 

 

 

 

5.25%, 10/01/35

 

 

550

 

 

561,187

 

5.50%, 10/01/37

 

 

200

 

 

211,526

 

Port Authority of New York & New Jersey, RB, Continental Airlines Inc. and Eastern Air Lines Inc. Project, LaGuardia, AMT, 9.13%, 12/01/15

 

 

850

 

 

851,419

 

 

 

 

 

 



 

 

 

 

 

 

 

3,374,250

 









County/City/Special District/School District — 39.0%

 

 

 

 

 

 

 

Amherst Development Corp., RB, UBF Faculty-Student Housing Corp., Series A (AGM):

 

 

 

 

 

 

 

4.38%, 10/01/30

 

 

250

 

 

245,385

 

4.63%, 10/01/40

 

 

275

 

 

271,458

 

City of New York New York, GO, Refunding, Series A, 6.00%, 5/15/30

 

 

10

 

 

10,132

 

Haverstraw-Stony Point Central School District New York, GO (AGM), 3.00%, 10/15/26

 

 

250

 

 

216,045

 

Hudson Yards Infrastructure Corp., RB, Series A:

 

 

 

 

 

 

 

5.00%, 2/15/47

 

 

1,200

 

 

1,161,264

 

(FGIC), 5.00%, 2/15/47

 

 

100

 

 

96,772

 

New York City Industrial Development Agency, RB, PILOT:

 

 

 

 

 

 

 

CAB, Yankee Stadium (AGC), 5.80%, 3/01/35 (b)

 

 

400

 

 

99,972

 

Queens Baseball Stadium (AGC), 6.38%, 1/01/39

 

 

100

 

 

110,798

 

Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39

 

 

650

 

 

579,625

 

New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

150

 

 

160,452

 

New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44

 

 

700

 

 

702,205

 

New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project:

 

 

 

 

 

 

 

5.63%, 7/15/47

 

 

1,250

 

 

1,277,087

 

6.38%, 7/15/49

 

 

100

 

 

104,508

 

New York State Dormitory Authority, RB, State University Dormitory Facilities, Series A, 5.00%, 7/01/39

 

 

100

 

 

105,137

 

Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), 5.00%, 10/15/32

 

 

2,000

 

 

2,101,860

 

 

 

 

 

 



 

 

 

 

 

 

 

7,242,700

 









Education — 17.5%

 

 

 

 

 

 

 

Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A (c)(d):

 

 

 

 

 

 

 

7.00%, 5/01/25

 

 

95

 

 

37,999

 

7.00%, 5/01/35

 

 

60

 

 

23,999

 

City of Troy New York, Refunding RB, Rensselaer Polytechnic, Series A, 5.13%, 9/01/40

 

 

100

 

 

101,610

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (continued)

 

 

 

 

 

 

 









Education (concluded)

 

 

 

 

 

 

 

Nassau County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 3/01/26

 

$

100

 

$

100,149

 

New York City Industrial Development Agency, Refunding RB, Polytechnic University Project (ACA), 5.25%, 11/01/37

 

 

100

 

 

91,865

 

New York Liberty Development Corp., RB, National Sports Museum Project, Series A, 6.13%, 2/15/19 (c)(d)

 

 

175

 

 

2

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

5.83%, 7/01/39 (e)

 

 

175

 

 

148,090

 

Mount Sinai School of Medicine, 5.13%, 7/01/39

 

 

275

 

 

277,043

 

New York University, Series 1 (AMBAC), 5.50%, 7/01/40

 

 

250

 

 

298,712

 

Rochester Institute of Technology, Series A, 6.00%, 7/01/33

 

 

175

 

 

193,300

 

University of Rochester, Series A, 5.13%, 7/01/39

 

 

200

 

 

210,746

 

Vassar College, 5.00%, 7/01/49

 

 

100

 

 

104,573

 

New York State Dormitory Authority, Refunding RB:

 

 

 

 

 

 

 

Brooklyn Law School, 5.75%, 7/01/33

 

 

75

 

 

81,335

 

Teachers College, 5.50%, 3/01/39

 

 

200

 

 

211,334

 

Schenectady County Industrial Development Agency, Refunding RB, Union College Project, 5.00%, 7/01/31

 

 

500

 

 

519,140

 

Suffolk County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, 5.00%, 3/01/26

 

 

100

 

 

100,892

 

Trust for Cultural Resources, RB, Series A:

 

 

 

 

 

 

 

Carnegie Hall, 4.75%, 12/01/39

 

 

200

 

 

201,640

 

Carnegie Hall, 5.00%, 12/01/39

 

 

150

 

 

154,160

 

Juilliard School, 5.00%, 1/01/39

 

 

250

 

 

266,792

 

Yonkers Industrial Development Agency New York, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41

 

 

125

 

 

131,010

 

 

 

 

 

 



 

 

 

 

 

 

 

3,254,391

 









Health — 15.6%

 

 

 

 

 

 

 

Genesee County Industrial Development Agency New York, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27

 

 

100

 

 

86,530

 

New York State Dormitory Authority, MRB, Hospital, Lutheran Medical (NPFGC), 5.00%, 8/01/31

 

 

250

 

 

251,457

 

New York State Dormitory Authority, RB:
New York State Association for Retarded Children, Inc., Series A, 6.00%, 7/01/32

 

 

75

 

 

81,182

 

New York University Hospital Center, Series B, 5.63%, 7/01/37

 

 

150

 

 

153,396

 

North Shore-Long Island Jewish Health System, Series A, 5.50%, 5/01/37

 

 

175

 

 

180,877

 

North Shore-Long Island Jewish Health System, Series A, 5.75%, 5/01/37

 

 

250

 

 

262,777

 

New York State Dormitory Authority, Refunding RB:

 

 

 

 

 

 

 

Kateri Residence, 5.00%, 7/01/22

 

 

1,000

 

 

1,038,580

 

Mount Sinai Hospital, Series A, 5.00%, 7/01/26

 

 

140

 

 

145,603

 

North Shore-Long Island Jewish Health System, Series E, 5.50%, 5/01/33

 

 

150

 

 

154,929

 

St. Luke’s Roosevelt Hospital (FHA), 4.90%, 8/15/31

 

 

100

 

 

99,245

 

Saratoga County Industrial Development Agency New York, RB, Saratoga Hospital Project, Series B, 5.25%, 12/01/32

 

 

100

 

 

97,806

 

Suffolk County Industrial Development Agency New York, Refunding RB, Jeffersons Ferry Project, 5.00%, 11/01/28

 

 

115

 

 

106,545

 

Westchester County Industrial Development Agency New York, MRB, Kendal on Hudson Project, Series A, 6.38%, 1/01/24

 

 

250

 

 

248,915

 

 

 

 

 

 



 

 

 

 

 

 

 

2,907,842

 










 

 

 

 

See Notes to Financial Statements.





 

ANNUAL REPORT

JULY 31, 2010

35




 

 



 

Schedule of Investments (continued)

BlackRock New York Investment Quality Municipal Trust Inc. (RNY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 









Housing — 10.1%

 

 

 

 

 

 

 

New York City Housing Development Corp., RB:

 

 

 

 

 

 

 

Series A (Ginnie Mae), 5.25%, 5/01/30

 

$

1,000

 

$

1,023,830

 

Series B1, AMT, 5.15%, 11/01/37

 

 

250

 

 

252,965

 

Series J-2-A, AMT, 4.75%, 11/01/27

 

 

500

 

 

499,965

 

New York Mortgage Agency, Refunding RB, Series 143, AMT, 4.90%, 10/01/37

 

 

100

 

 

96,927

 

 

 

 

 

 



 

 

 

 

 

 

 

1,873,687

 









State — 9.4%

 

 

 

 

 

 

 

New York State Dormitory Authority, ERB, Series B, 5.75%, 3/15/36

 

 

150

 

 

170,741

 

New York State Dormitory Authority, LRB, Municipal Health Facilities, Sub-Series 2-4, 4.75%, 1/15/30

 

 

300

 

 

301,866

 

New York State Dormitory Authority, Refunding RB, State University Educational Facilities, Series A (AMBAC), 5.25%, 5/15/15

 

 

1,005

 

 

1,146,353

 

State of New York, GO, Series A, 5.00%, 2/15/39

 

 

125

 

 

131,380

 

 

 

 

 

 



 

 

 

 

 

 

 

1,750,340

 









Transportation — 4.5%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, RB:

 

 

 

 

 

 

 

Series 2008C, 6.50%, 11/15/28

 

 

250

 

 

291,798

 

Series B, 4.50%, 11/15/37

 

 

150

 

 

147,672

 

Port Authority of New York & New Jersey, RB, Consolidated, 116th Series, 4.13%, 9/15/32

 

 

250

 

 

246,100

 

Triborough Bridge & Tunnel Authority, RB, General Purpose, Series A (NPFGC), 5.00%, 1/01/32

 

 

155

 

 

160,104

 

 

 

 

 

 



 

 

 

 

 

 

 

845,674

 









Utilities — 17.2%

 

 

 

 

 

 

 

Albany Municipal Water Finance Authority, RB, Series B (NPFGC), 5.00%, 12/01/33

 

 

1,000

 

 

1,000,050

 

Long Island Power Authority, Refunding RB, Series A, 6.25%, 4/01/33

 

 

100

 

 

115,705

 

New York City Municipal Water Finance Authority, RB, Series C, 5.13%, 6/15/33

 

 

1,000

 

 

1,035,530

 

New York City Municipal Water Finance Authority, Refunding RB, Series B (AGM), 5.00%, 6/15/36

 

 

1,000

 

 

1,036,480

 

 

 

 

 

 



 

 

 

 

 

 

 

3,187,765

 









Total Municipal Bonds in New York

 

 

 

 

 

24,436,649

 









 

 

 

 

 

 

 

 









Guam — 1.9%

 

 

 

 

 

 

 









State — 0.6%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A, 7.00%, 11/15/39

 

 

100

 

 

108,142

 









Tobacco — 0.5%

 

 

 

 

 

 

 

Guam Economic Development & Commerce Authority, Refunding RB, Tobacco Settlement Asset-Backed, 5.63%, 6/01/47

 

 

100

 

 

83,373

 









Utilities — 0.8%

 

 

 

 

 

 

 

Guam Government Waterworks Authority, Refunding RB, Water, 5.88%, 7/01/35

 

 

150

 

 

151,257

 









Total Municipal Bonds in Guam

 

 

 

 

 

342,772

 









 

 

 

 

 

 

 

 









Puerto Rico — 12.3%

 

 

 

 

 

 

 









County/City/Special District/School District — 4.3%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB:

 

 

 

 

 

 

 

CAB, Series A, 6.39%, 8/01/32 (b)

 

 

750

 

 

187,290

 

First Sub-Series A, 6.00%, 8/01/42

 

 

500

 

 

535,890

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Puerto Rico (concluded)

 

 

 

 

 

 

 









County/City/Special District/School District (concluded)

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.78%, 8/01/41 (b)

 

$

550

 

$

82,770

 

 

 

 

 

 



 

 

 

 

 

 

 

805,950

 









State — 5.1%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding:

 

 

 

 

 

 

 

Public Improvement, Series C, 6.00%, 7/01/39

 

 

100

 

 

106,013

 

Sub-Series C-7 (NPFGC), 6.00%, 7/01/28

 

 

250

 

 

266,172

 

Puerto Rico Commonwealth Infrastructure Financing Authority, RB, CAB, Series A (AMBAC), 5.16%, 7/01/44 (b)

 

 

395

 

 

39,022

 

Puerto Rico Public Finance Corp., RB, Commonwealth Appropriation, Series E, 5.50%, 2/01/12 (f)

 

 

495

 

 

532,244

 

 

 

 

 

 



 

 

 

 

 

 

 

943,451

 









Tobacco — 2.3%

 

 

 

 

 

 

 

Children’s Trust Fund, Refunding RB, Asset-Backed, 5.63%, 5/15/43

 

 

500

 

 

430,720

 









Transportation — 0.6%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation Authority, Refunding RB, Series AA-1 (AGM), 4.95%, 7/01/26

 

 

100

 

 

103,565

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

2,283,686

 









Total Municipal Bonds — 145.7%

 

 

 

 

 

27,063,107

 









 

 

 

 

 

 

 

 










Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

 

 

 

 

 

 









New York — 6.2%

 

 

 

 

 

 

 









Utilities — 6.2%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40

 

 

105

 

 

118,867

 

New York City Municipal Water Finance Authority, Refunding RB, Series A, 4.75%, 6/15/30

 

 

1,000

 

 

1,030,700

 

 

 

 

 

 




 

 

 

 

 

 

1,149,567

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 6.2%

 

 

 

 

 

1,149,567

 









Total Long-Term Investments
(Cost — $27,613,088) — 151.9%

 

 

 

 

 

28,212,674

 










 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








BIF New York Municipal Money Fund, 0.00% (h)(i)

 

 

177,010

 

 

177,010

 









Total Short-Term Securities
(Cost — $177,010) — 0.9%

 

 

 

 

 

177,010

 









Total Investments (Cost — $27,790,098*) — 152.8%

 

 

 

 

 

28,389,684

 

Other Assets Less Liabilities — 2.6%

 

 

 

 

 

483,379

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (3.1)%

 

 

 

 

 

(570,173

)

Preferred Shares, at Redemption Value — (52.3)%

 

 

 

 

 

(9,725,589

)

 

 

 

 

 



 

Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

18,577,301

 

 

 

 

 

 



 


 

 

 

 

See Notes to Financial Statements.





36

ANNUAL REPORT

JULY 31, 2010

 




 

 



 

Schedule of Investments (concluded)

BlackRock New York Investment Quality Municipal Trust Inc. (RNY)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

27,220,001

 

 

 

 



 

 

Gross unrealized appreciation

 

$

1,062,227

 

 

Gross unrealized depreciation

 

 

(462,518

)

 

 

 



 

 

Net unrealized appreciation

 

$

599,709

 

 

 

 



 


 

 

(a)

Variable rate security. Rate shown is as of report date.

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(d)

Non-income producing security.

 

 

(e)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(f)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(g)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(h)

Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(b)(3) of the Investment Company Act of 1940, as amended, are as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 











 

Affiliate

 

Shares at
July 31,
2009

 

Net
Activity

 

Shares at
July 31,
2010

 

Income

 

 











 

BIF New York Municipal Money Fund

 

 

317,150

 

 

(140,140

)

 

177,010

 

$

60

 

 
















 

 

(i)

Represents the current yield as of report date.

 

 

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

 

 

Financial futures contracts sold as of July 31,2010 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

Contracts

 

Issue

 

Expiration
Date

 

Notional
Value

 

Unrealized
Depreciation

 

 











 

      4

 

10 Year U.S.
Treasury Bond

 

September 2010

 

$

490,116

 

$

(5,134

)

 












 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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

 

 

 

 

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

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of July 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 











 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

28,212,674

 

 

 

$

28,212,674

 

 

Short-Term Securities

 

$

177,010

 

 

 

 

 

 

177,010

 

 

 

 













 

Total

 

$

177,010

 

$

28,212,674

 

 

 

$

28,389,684

 

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

Derivative Financial Instruments2

 


 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 















 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(5,134

)

 

 

 

 

$

(5,134

)

 
















 

 

 

 

2

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


 

 

 

 

See Notes to Financial Statements.





 

ANNUAL REPORT

JULY 31, 2010

37




 

 


 

 

Schedule of Investments July 31, 2010

BlackRock New York Municipal Income Trust (BNY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York — 123.2%

 

 

 

 

 

 

 









Corporate — 18.0%

 

 

 

 

 

 

 

Chautauqua County Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42

 

$

1,000

 

$

1,025,830

 

Essex County Industrial Development Agency New York, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32

 

 

550

 

 

578,925

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

American Airlines Inc., JFK International Airport, AMT, 7.63%, 8/01/25 (a)

 

 

3,200

 

 

3,298,272

 

American Airlines Inc., JFK International Airport, AMT, 7.75%, 8/01/31 (a)

 

 

4,000

 

 

4,148,640

 

Liberty-IAC/InteractiveCorp, 5.00%, 9/01/35

 

 

1,000

 

 

903,180

 

New York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.25%, 10/01/35

 

 

7,850

 

 

8,009,669

 

Port Authority of New York & New Jersey, RB, Continental Airlines Inc. and Eastern Air Lines Inc. Project, LaGuardia, AMT, 9.13%, 12/01/15

 

 

7,820

 

 

7,833,059

 

Suffolk County Industrial Development Agency New York, RB, KeySpan, Port Jefferson, AMT, 5.25%, 6/01/27

 

 

7,000

 

 

6,945,400

 

 

 

 

 

 



 

 

 

 

 

 

 

32,742,975

 









County/City/Special District/School District — 24.5%

 

 

 

 

 

 

 

Amherst Development Corp., RB, UBF Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/40

 

 

1,100

 

 

1,085,832

 

Brooklyn Arena Local Development Corp., RB, Barclays Center Project, 6.38%, 7/15/43

 

 

700

 

 

717,955

 

City of New York New York, GO:

 

 

 

 

 

 

 

Series A-1, 4.75%, 8/15/25

 

 

750

 

 

802,178

 

Series C, 5.38%, 3/15/12 (b)

 

 

5,000

 

 

5,412,700

 

Series D, 5.38%, 6/01/12 (b)

 

 

2,200

 

 

2,404,820

 

Series D, 5.38%, 6/01/32

 

 

4,000

 

 

4,182,400

 

Sub-Series G-1, 6.25%, 12/15/31

 

 

500

 

 

585,575

 

Sub-Series I-1, 5.38%, 4/01/36

 

 

1,750

 

 

1,903,317

 

Hudson Yards Infrastructure Corp., RB, Series A:

 

 

 

 

 

 

 

5.00%, 2/15/47

 

 

3,675

 

 

3,556,371

 

(NPFGC), 4.50%, 2/15/47

 

 

970

 

 

889,247

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

CAB, Yankee Stadium, PILOT (AGC), 6.01%, 3/01/42 (c)

 

 

2,210

 

 

335,301

 

Marymount School of New York Project (ACA), 5.13%, 9/01/21

 

 

750

 

 

771,173

 

Marymount School of New York Project (ACA), 5.25%, 9/01/31

 

 

500

 

 

502,945

 

Queens Baseball Stadium, PILOT (AGC), 6.38%, 1/01/39

 

 

150

 

 

166,197

 

Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/36

 

 

4,900

 

 

4,405,884

 

Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/39

 

 

500

 

 

445,865

 

Royal Charter, New York Presbyterian (AGM), 5.25%, 12/15/32

 

 

1,550

 

 

1,601,956

 

New York City Transitional Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

650

 

 

695,292

 

Series S-2 (NPFGC), 4.25%, 1/15/34

 

 

1,700

 

 

1,666,799

 

New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44

 

 

8,410

 

 

8,436,491

 

New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project:

 

 

 

 

 

 

 

5.63%, 7/15/47

 

 

1,000

 

 

1,021,670

 

6.38%, 7/15/49

 

 

1,200

 

 

1,254,096

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 









County/City/Special District/School District (concluded)

 

 

 

 

 

 

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Interagency Council Pooled, Series A-1, 4.25%, 7/01/25

 

$

1,000

 

$

984,760

 

State University Dormitory Facilities, Series A, 5.00%, 7/01/39

 

 

750

 

 

788,528

 

 

 

 

 

 



 

 

 

 

 

 

 

44,617,352

 









Education — 23.6%

 

 

 

 

 

 

 

Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A (d)(e):

 

 

 

 

 

 

 

7.00%, 5/01/25

 

 

910

 

 

363,991

 

7.00%, 5/01/35

 

 

590

 

 

235,994

 

City of Troy New York, Refunding RB, Rensselaer Polytechnic, Series A, 5.13%, 9/01/40

 

 

875

 

 

889,087

 

Dutchess County Industrial Development Agency New York, Refunding RB, Bard College Civic Facility, Series A-2, 4.50%, 8/01/36

 

 

7,000

 

 

5,969,040

 

Madison County Industrial Development Agency New York, RB:

 

 

 

 

 

 

 

Colgate University Project, Series B, 5.00%, 7/01/33

 

 

2,000

 

 

2,040,160

 

Commons II LLC, Student Housing, Series A (CIFG), 5.00%, 6/01/33

 

 

275

 

 

266,250

 

Nassau County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 3/01/26

 

 

1,165

 

 

1,166,736

 

New York City Industrial Development Agency, Refunding RB, Polytechnic University Project (ACA), 5.25%, 11/01/37

 

 

2,400

 

 

2,204,760

 

New York Liberty Development Corp., RB, National Sports Museum Project, Series A, 6.13%, 2/15/19 (d)(e)

 

 

1,740

 

 

17

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

5.83%, 7/01/39 (f)

 

 

750

 

 

634,672

 

Mount Sinai School of Medicine, 5.13%, 7/01/39

 

 

2,350

 

 

2,367,460

 

New School University (NPFGC), 5.00%, 7/01/41

 

 

9,000

 

 

9,022,050

 

New York University, Series 2 (AMBAC), 5.00%, 7/01/41

 

 

5,000

 

 

5,028,350

 

Rochester Institute of Technology, Series A, 6.00%, 7/01/33

 

 

1,000

 

 

1,104,570

 

University of Rochester, Series A, 5.13%, 7/01/39

 

 

850

 

 

895,670

 

Vassar College, 5.00%, 7/01/49

 

 

825

 

 

862,727

 

New York State Dormitory Authority, Refunding RB:

 

 

 

 

 

 

 

Brooklyn Law School, 5.75%, 7/01/33

 

 

475

 

 

515,119

 

Teachers College, 5.50%, 3/01/39

 

 

450

 

 

475,502

 

Yeshiva University, 5.00%, 9/01/34

 

 

275

 

 

286,402

 

Suffolk County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, 5.00%, 3/01/26

 

 

1,000

 

 

1,008,920

 

Trust for Cultural Resources, RB Series A:

 

 

 

 

 

 

 

Carnegie Hall, 4.75%, 12/01/39

 

 

2,250

 

 

2,268,450

 

Juilliard School, 5.00%, 1/01/39

 

 

2,100

 

 

2,241,057

 

Westchester County Industrial Development Agency New York, RB, Windward School Civic Facility (Radian), 5.25%, 10/01/31

 

 

2,500

 

 

2,474,600

 

Yonkers Industrial Development Agency New York, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41

 

 

625

 

 

655,050

 

 

 

 

 

 



 

 

 

 

 

 

 

42,976,634

 










 

 

 

 

See Notes to Financial Statements.





38

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

 

Schedule of Investments (continued)

BlackRock New York Municipal Income Trust (BNY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 









Health — 6.2%

 

 

 

 

 

 

 

Genesee County Industrial Development Agency New York, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27

 

$

500

 

$

432,650

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Hudson Valley Hospital (BHAC), 5.00%, 8/15/36

 

 

750

 

 

788,100

 

New York State Association for Retarded Children, Inc., Series A, 6.00%, 7/01/32

 

 

575

 

 

622,392

 

New York State Association for Retarded Children, Inc., Series B (AMBAC), 6.00%, 7/01/32

 

 

200

 

 

215,136

 

New York University Hospital Center, Series B, 5.63%, 7/01/37

 

 

530

 

 

541,999

 

North Shore-Long Island Jewish Health System, 5.50%, 5/01/13 (b)

 

 

2,000

 

 

2,273,280

 

North Shore-Long Island Jewish Health System, Series A, 5.50%, 5/01/37

 

 

1,775

 

 

1,834,604

 

New York State Dormitory Authority, Refunding RB:

 

 

 

 

 

 

 

Mount Sinai Hospital, Series A, 5.00%, 7/01/26

 

 

1,385

 

 

1,440,428

 

North Shore-Long Island Jewish Health System, Series E, 5.50%, 5/01/33

 

 

1,100

 

 

1,136,146

 

Suffolk County Industrial Development Agency New York, Refunding RB, Jeffersons Ferry Project, 5.00%, 11/01/28

 

 

1,175

 

 

1,088,614

 

Westchester County Industrial Development Agency New York, MRB, Kendal on Hudson Project, Series A, 6.38%, 1/01/24

 

 

1,000

 

 

995,660

 

 

 

 

 

 



 

 

 

 

 

 

 

11,369,009

 









Housing — 2.5%

 

 

 

 

 

 

 

New York Mortgage Agency, Refunding RB, Homeowner Mortgage, Series 97, AMT, 5.50%, 4/01/31

 

 

2,060

 

 

2,066,139

 

New York State HFA, RB, Highland Avenue Senior Apartments, Series A, AMT (SONYMA), 5.00%, 2/15/39

 

 

1,500

 

 

1,405,065

 

Yonkers Economic Development Corp., Refunding RB, Riverview II (Freddie Mac), 4.50%, 5/01/25

 

 

1,000

 

 

1,007,800

 

 

 

 

 

 



 

 

 

 

 

 

 

4,479,004

 









State — 5.1%

 

 

 

 

 

 

 

New York State Dormitory Authority, ERB, Series B, 5.75%, 3/15/36

 

 

600

 

 

682,962

 

New York State Dormitory Authority, LRB, Municipal Health Facilities, Sub-Series 2-4, 4.75%, 1/15/30

 

 

2,100

 

 

2,113,062

 

New York State Dormitory Authority, RB, Mental Health Services Facilities Improvement, Series B (AMBAC), 5.00%, 2/15/35

 

 

4,855

 

 

4,973,656

 

New York State Dormitory Authority, Refunding RB, School Districts Financing Program, Series A (AGM), 5.00%, 10/01/35

 

 

395

 

 

410,543

 

State of New York, GO, Series A, 5.00%, 2/15/39

 

 

975

 

 

1,024,764

 

 

 

 

 

 



 

 

 

 

 

 

 

9,204,987

 









Tobacco — 8.3%

 

 

 

 

 

 

 

New York Counties Tobacco Trust III, RB, Tobacco Settlement Pass-Thru, Turbo, 6.00%, 6/01/43

 

 

6,700

 

 

6,108,457

 

Rensselaer Tobacco Asset Securitization Corp., RB, Asset-Backed, Series A, 5.75%, 6/01/43

 

 

2,500

 

 

2,196,400

 

Rockland Tobacco Asset Securitization Corp., RB, Asset-Backed, 5.75%, 8/15/43

 

 

5,000

 

 

4,392,050

 

TSASC Inc. New York, RB, Tobacco Settlement Asset-Backed, Series 1, 5.75%, 7/15/12 (b)

 

 

2,250

 

 

2,488,275

 

 

 

 

 

 



 

 

 

 

 

 

 

15,185,182

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (concluded)

 

 

 

 

 

 

 







Transportation — 21.8%

 

 

 

 

 

 

 

Hudson Yards Infrastructure Corp., RB (AGC), 5.00%, 2/15/47

 

$

1,000

 

$

1,020,770

 

Metropolitan Transportation Authority, RB, Series 2008C, 6.50%, 11/15/28

 

 

1,000

 

 

1,167,190

 

Metropolitan Transportation Authority, Refunding RB, Series A:

 

 

 

 

 

 

 

5.00%, 11/15/30

 

 

12,000

 

 

12,434,760

 

5.13%, 11/15/31

 

 

8,000

 

 

8,122,880

 

New York City Industrial Development Agency, RB, Airis JFK I LLC Project, Series A, AMT, 5.50%, 7/01/28

 

 

9,000

 

 

8,026,110

 

Port Authority of New York & New Jersey, RB:

 

 

 

 

 

 

 

Consolidated, 116th Series, 4.13%, 9/15/32

 

 

500

 

 

492,200

 

Consolidated, 161st Series, 4.50%, 10/15/37

 

 

500

 

 

506,370

 

Special Project, JFK International Air Terminal, Series 6, AMT (NPFGC), 6.25%, 12/01/13

 

 

1,000

 

 

1,065,050

 

Special Project, JFK International Air Terminal, Series 6, AMT (NPFGC), 5.75%, 12/01/22

 

 

7,000

 

 

7,007,420

 

 

 

 

 

 



 

 

 

 

 

 

 

39,842,750

 









Utilities — 13.2%

 

 

 

 

 

 

 

Long Island Power Authority, RB, General, Series C (CIFG), 5.25%, 9/01/29

 

 

2,000

 

 

2,240,040

 

Long Island Power Authority, Refunding RB, Series A:

 

 

 

 

 

 

 

6.25%, 4/01/33

 

 

150

 

 

173,558

 

5.75%, 4/01/39

 

 

4,000

 

 

4,409,720

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Election of 2002, Series C, 5.00%, 6/15/32

 

 

6,500

 

 

6,551,675

 

Second General Resolution (NPFGC), 4.50%, 6/15/37

 

 

1,520

 

 

1,520,699

 

Series A (NPFGC), 5.00%, 6/15/32

 

 

4,000

 

 

4,096,800

 

New York City Municipal Water Finance Authority, Refunding RB, Series D, 5.00%, 6/15/39

 

 

5,000

 

 

5,178,900

 

 

 

 

 

 



 

 

 

 

 

 

 

24,171,392

 









Total Municipal Bonds in New York

 

 

 

 

 

224,589,285

 









 

 

 

 

 

 

 

 









Guam — 0.9%

 

 

 

 

 

 

 









State — 0.6%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A, 7.00%, 11/15/39

 

 

970

 

 

1,048,977

 









Utilities — 0.3%

 

 

 

 

 

 

 

Guam Government Waterworks Authority, Refunding RB, Water, 5.88%, 7/01/35

 

 

600

 

 

605,028

 









Total Municipal Bonds in Guam

 

 

 

 

 

1,654,005

 









 

 

 

 

 

 

 

 









Multi-State — 7.0%

 

 

 

 

 

 

 









Housing — 7.0%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust, 6.80%, 11/30/50 (g)(h)

 

 

5,500

 

 

5,565,340

 

MuniMae TE Bond Subsidiary LLC (g)(h):

 

 

 

 

 

 

 

6.30%, 6/30/49

 

 

5,158

 

 

4,783,723

 

6.80%, 6/30/50

 

 

3,000

 

 

2,459,970

 









Total Municipal Bonds in Multi-State

 

 

 

 

 

12,809,033

 










 

 

 

 

See Notes to Financial Statements.





 

ANNUAL REPORT

JULY 31, 2010

39




 

 


 

 

Schedule of Investments (continued)

BlackRock New York Municipal Income Trust (BNY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Puerto Rico — 11.2%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.1%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB:

 

 

 

 

 

 

 

CAB, Series A, 6.39%, 8/01/32 (c)

 

$

1,685

 

$

420,778

 

First Sub-Series A (AGM), 5.00%, 8/01/40

 

 

1,000

 

 

1,022,780

 

Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.79%,
8/01/41 (c)

 

 

3,500

 

 

526,715

 

 

 

 

 

 



 

 

 

 

 

 

 

1,970,273

 









Housing — 1.7%

 

 

 

 

 

 

 

Puerto Rico Housing Finance Authority, Refunding RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

 

 

3,000

 

 

3,029,190

 









State — 7.4%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Public Improvement, Series C, 6.00%, 7/01/39

 

 

700

 

 

742,091

 

Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series D:

 

 

 

 

 

 

 

5.25%, 7/01/12 (b)

 

 

3,400

 

 

3,698,520

 

5.25%, 7/01/36

 

 

1,600

 

 

1,590,960

 

Puerto Rico Public Finance Corp., RB, Commonwealth Appropriation, Series E, 5.50%, 2/01/12 (b)

 

 

5,000

 

 

5,376,200

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37

 

 

2,000

 

 

2,092,920

 

 

 

 

 

 



 

 

 

 

 

 

 

13,500,691

 









Transportation — 0.1%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation Authority, Refunding RB, Series AA-1 (AGM), 4.95%, 7/01/26

 

 

250

 

 

258,913

 









Utilities — 0.9%

 

 

 

 

 

 

 

Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 6.00%, 7/01/38

 

 

1,100

 

 

1,149,214

 

Puerto Rico Electric Power Authority, Refunding RB, Series VV (NPFGC), 5.25%, 7/01/29

 

 

500

 

 

521,400

 

 

 

 

 

 



 

 

 

 

 

 

 

1,670,614

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

20,429,681

 









Total Municipal Bonds — 142.3%

 

 

 

 

 

259,482,004

 









 

 

 

 

 

 

 

 










Municipal Bonds Transferred to
Tender Option Bond Trusts (i)

 

 

 

 

 

 

 









New York — 14.6%

 

 

 

 

 

 

 









Housing — 11.1%

 

 

 

 

 

 

 

New York Mortgage Agency, RB, 31st Series A, AMT, 5.30%, 10/01/31

 

 

15,500

 

 

15,536,270

 

New York Mortgage Agency, Refunding RB, Series 101, AMT, 5.40%, 4/01/32

 

 

4,638

 

 

4,656,055

 

 

 

 

 

 



 

 

 

 

 

 

 

20,192,325

 









Utilities — 3.5%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series A, 5.75%, 6/15/40

 

 

1,200

 

 

1,358,482

 

Series FF-2, 5.50%, 6/15/40

 

 

810

 

 

904,246

 

New York City Municipal Water Finance Authority, Refunding RB, Series A, 4.75%, 6/15/30

 

 

4,000

 

 

4,122,800

 

 

 

 

 

 



 

 

 

 

 

 

 

6,385,528

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 14.6%

 

 

 

 

 

26,577,853

 









Total Long-Term Investments
(Cost — $284,884,012) — 156.9%

 

 

 

 

 

286,059,857

 










 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 







BIF New York Municipal Money Fund, 0.00%, 12/31/22 (j)(k)

 

 

414,030

 

$

414,030

 









Total Short-Term Securities
(Cost — $414,030) — 0.2%

 

 

 

 

 

414,030

 









Total Investments (Cost — $285,298,042*) — 157.1%

 

 

 

 

 

286,473,887

 

Other Assets Less Liabilities — 2.1%

 

 

 

 

 

3,823,636

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (7.4)%

 

 

 

 

 

(13,419,424

)

Preferred Shares, at Redemption Value — (51.8)%

 

 

 

 

 

(94,506,211

)

 

 

 

 

 



 

Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

182,371,888

 

 

 

 

 

 



 

 









 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

270,710,980

 

 

 



 

Gross unrealized appreciation

 

$

9,418,449

 

Gross unrealized depreciation

 

 

(7,065,223

)

 

 



 

Net unrealized appreciation

 

$

2,353,226

 

 

 



 


 

 

(a)

Variable rate security. Rate shown is as of report date.

 

 

(b)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(d)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(e)

Non-income producing security.

 

 

(f)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(g)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(h)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

 

(i)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(j)

Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(b)(c) of the Investment Company Act of 1940, as amended, are as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Affiliate

 

Shares at
July 31,
2009

 

Net
Activity

 

Shares at
July 31,
2010

 

Income

 











BIF New York Municipal Money Fund

 

 

3,235,523

 

 

(2,821,493

)

 

414,030

 

$

416

 
















 

 

(k)

Represents the current yield as of report date.


 

 

 

 

See Notes to Financial Statements.

 

 


40

ANNUAL REPORT

JULY 31, 2010

 



 

 


 

 

Schedule of Investments (concluded)

BlackRock New York Municipal Income Trust (BNY)


 

 

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

 

 

Financial futures contracts sold as of July 31,2010 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Contracts

 

Issue

 

Expiration
Date

 

Notional
Value

 

Unrealized
Depreciation

 











 

 

 

10 Year U.S.

 

 

 

 

 

 

 

 

 

 

     37

 

 

Treasury Bond

 

 

September 2010

 

$

4,533,575

 

$

(47,488

)
















 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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

 

 

 

 

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of July 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

286,059,857

 

 

 

$

286,059,857

 

Short-Term Securities

 

$

414,030

 

 

 

 

 

 

414,030

 

 

 













Total

 

$

414,030

 

$

286,059,857

 

 

 

$

286,473,887

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

 

 

 

 

 

 

 

 

 

 

 





 

 

Derivative Financial Instruments2

 





Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(47,488

)

 

 

 

 

$

(47,488

)
















 

 

 

 

2

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


 

 

 

 

See Notes to Financial Statements.

 


 

ANNUAL REPORT

JULY 31, 2010

41




 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 31, 2010

 

BlackRock
California
Investment Quality
Municipal Trust Inc.
(RAA)

 

BlackRock
California
Municipal
Income Trust
(BFZ)

 

BlackRock
Florida
Municipal 2020
Term Trust
(BFO)

 

BlackRock
Investment Quality
Municipal
Income Trust
(RFA)

 

BlackRock
Municipal
Income
Investment Trust
(BBF)

 


















Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Investments at value — unaffiliated1

 

$

21,013,015

 

$

742,933,454

 

$

123,531,488

 

$

22,546,152

 

$

151,565,876

 

Investments at value — affiliated2

 

 

383,264

 

 

26,178,133

 

 

5,065,158

 

 

353,621

 

 

4,963,552

 

Cash

 

 

15,468

 

 

 

 

 

 

 

 

 

Cash pledged as collateral for financial futures contracts

 

 

6,600

 

 

27,000

 

 

 

 

 

 

 

Interest receivable

 

 

331,545

 

 

10,386,035

 

 

1,554,390

 

 

270,597

 

 

1,774,168

 

Investments sold receivable

 

 

 

 

763,712

 

 

481,058

 

 

212,459

 

 

1,499,295

 

Income receivable — affiliated

 

 

15

 

 

193

 

 

19

 

 

16

 

 

39

 

Prepaid expenses

 

 

1,948

 

 

39,346

 

 

13,847

 

 

2,304

 

 

14,856

 

Other assets

 

 

3,921

 

 

49,837

 

 

5,007

 

 

4,147

 

 

10,600

 

 

 
















Total assets

 

 

21,755,776

 

 

780,377,710

 

 

130,650,967

 

 

23,389,296

 

 

159,828,386

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Accrued Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Bank overdraft

 

 

 

 

21,000

 

 

 

 

 

 

 

Investments purchased payable

 

 

494,546

 

 

23,611,609

 

 

 

 

810,130

 

 

5,563,628

 

Income dividends payable — Common Shares

 

 

58,416

 

 

2,408,290

 

 

311,479

 

 

78,935

 

 

504,432

 

Reorganization costs payable

 

 

23,189

 

 

 

 

 

 

 

 

 

Investment advisory fees payable

 

 

6,392

 

 

339,698

 

 

56,040

 

 

6,804

 

 

73,381

 

Officer’s and Trustees’ fees payable

 

 

5,013

 

 

55,238

 

 

6,299

 

 

5,274

 

 

12,137

 

Administration fees payable

 

 

1,845

 

 

 

 

 

 

1,948

 

 

 

Interest expense and fees payable

 

 

1,009

 

 

69,257

 

 

7,499

 

 

3,189

 

 

17,087

 

Margin variation payable

 

 

719

 

 

13,656

 

 

 

 

 

 

 

Other affiliates payable

 

 

 

 

4,532

 

 

789

 

 

 

 

919

 

Other accrued expenses payable

 

 

47,152

 

 

156,172

 

 

65,057

 

 

39,051

 

 

69,517

 

 

 
















Total accrued liabilities

 

 

638,281

 

 

26,679,452

 

 

447,163

 

 

945,331

 

 

6,241,101

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Trust certificates3

 

 

1,232,884

 

 

128,064,620

 

 

4,371,570

 

 

4,013,909

 

 

26,262,401

 

 

 
















Total Liabilities

 

 

1,871,165

 

 

154,744,072

 

 

4,818,733

 

 

4,959,240

 

 

32,503,502

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















$25,000 per share liquidation preference, plus unpaid dividends4,5

 

 

5,925,277

 

 

171,334,972

 

 

42,903,637

 

 

4,575,155

 

 

34,252,002

 

 

 
















Net Assets Applicable to Common Shareholders

 

$

13,959,334

 

$

454,298,666

 

$

82,928,597

 

$

13,854,901

 

$

93,072,882

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net Assets Applicable to Common Shareholders Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Paid-in capital6,7,8

 

$

13,302,428

 

$

451,415,897

 

$

78,891,300

 

$

15,018,898

 

$

94,963,840

 

Undistributed net investment income

 

 

256,509

 

 

4,789,170

 

 

3,169,845

 

 

147,128

 

 

689,752

 

Accumulated net realized loss

 

 

(693,009

)

 

(27,383,321

)

 

(504,215

)

 

(2,395,955

)

 

(9,437,601

)

Net unrealized appreciation/depreciation

 

 

1,093,406

 

 

25,476,920

 

 

1,371,667

 

 

1,084,830

 

 

6,856,891

 

 

 
















Net Assets Applicable to Common Shareholders

 

$

13,959,334

 

$

454,298,666

 

$

82,928,597

 

$

13,854,901

 

$

93,072,882

 

 

 
















Net asset value per Common Share

 

$

13.86

 

$

14.28

 

$

14.91

 

$

12.29

 

$

13.91

 

 

 
















1

Investments at cost — unaffiliated

 

$

19,917,466

 

$

717,415,820

 

$

122,159,821

 

$

21,461,322

 

$

144,708,985

 

 

 

 
















2

Investments at cost — affiliated

 

$

383,264

 

$

26,178,133

 

$

5,065,158

 

$

353,621

 

$

4,963,552

 

 

 

 
















3

Represents short-term floating rate certificates issued by tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

Preferred Shares outstanding, par value $0.001 per share

 

 

237

 

 

6,853

 

 

1,716

 

 

183

 

 

1,370

 

 

 

 
















5

Preferred Shares authorized

 

 

300

 

 

unlimited

 

 

unlimited

 

 

100 million

 

 

unlimited

 

 

 

 
















6

Par value per Common Share

 

$

0.01

 

$

0.001

 

$

0.001

 

$

0.01

 

$

0.001

 

 

 

 
















7

Common Shares outstanding

 

 

1,007,166

 

 

31,813,602

 

 

5,562,128

 

 

1,127,644

 

 

6,692,296

 

 

 

 
















8

Common Shares authorized

 

 

200 million

 

 

unlimited

 

 

unlimited

 

 

200 million

 

 

unlimited

 

 

 

 

















 

 

 

 

See Notes to Financial Statements.





42

ANNUAL REPORT

JULY 31, 2010

 




 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 31, 2010

 

BlackRock
New Jersey
Investment Quality
Municipal Trust Inc.
(RNJ)

 

BlackRock
New Jersey
Municipal
Income Trust
(BNJ)

 

BlackRock
New York
Investment Quality
Municipal Trust Inc.
(RNY)

 

BlackRock
New York
Municipal
Income Trust
(BNY)

 















Assets

 

 

 

 

 

 

 

 

 

 

 

 

 















Investments at value — unaffiliated1

 

$

19,348,886

 

$

164,627,609

 

$

28,212,674

 

$

286,059,857

 

Investments at value — affiliated2

 

 

413,597

 

 

5,032,609

 

 

177,010

 

 

414,030

 

Cash

 

 

 

 

 

 

 

 

 

Cash pledged as collateral for financial futures contracts

 

 

 

 

 

 

6,500

 

 

55,000

 

Interest receivable

 

 

187,687

 

 

1,672,954

 

 

340,704

 

 

3,733,459

 

Investments sold receivable

 

 

 

 

117,682

 

 

729,573

 

 

1,741,825

 

Income receivable — affiliated

 

 

27

 

 

77

 

 

15

 

 

79

 

Prepaid expenses

 

 

1,571

 

 

17,035

 

 

2,762

 

 

26,181

 

Other assets

 

 

6,221

 

 

12,592

 

 

3,995

 

 

20,320

 

 

 













Total assets

 

 

19,957,989

 

 

171,480,558

 

 

29,473,233

 

 

292,050,751

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Accrued Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 















Bank overdraft

 

 

 

 

 

 

 

 

 

Investments purchased payable

 

 

 

 

 

 

445,606

 

 

422,514

 

Income dividends payable — Common Shares

 

 

66,506

 

 

589,499

 

 

95,842

 

 

1,054,242

 

Reorganization costs payable

 

 

 

 

 

 

 

 

 

Investment advisory fees payable

 

 

5,942

 

 

81,267

 

 

8,764

 

 

139,833

 

Officer’s and Trustees’ fees payable

 

 

7,559

 

 

14,133

 

 

5,129

 

 

21,875

 

Administration fees payable

 

 

1,731

 

 

 

 

2,520

 

 

 

Interest expense and fees payable

 

 

127

 

 

1,143

 

 

199

 

 

9,743

 

Margin variation payable

 

 

 

 

 

 

2,875

 

 

26,594

 

Other affiliates payable

 

 

 

 

1,064

 

 

 

 

1,817

 

Other accrued expenses payable

 

 

51,700

 

 

75,571

 

 

39,434

 

 

86,353

 

 

 













Total accrued liabilities

 

 

133,565

 

 

762,677

 

 

600,369

 

 

1,762,971

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 















Trust certificates3

 

 

159,917

 

 

2,359,296

 

 

569,974

 

 

13,409,681

 

 

 













Total Liabilities

 

 

293,482

 

 

3,121,973

 

 

1,170,343

 

 

15,172,652

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 















$25,000 per share liquidation preference, plus unpaid dividends4,5

 

 

6,900,403

 

 

59,101,995

 

 

9,725,589

 

 

94,506,211

 

 

 













Net Assets Applicable to Common Shareholders

 

$

12,764,104

 

$

109,256,590

 

$

18,577,301

 

$

182,371,888

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Net Assets Applicable to Common Shareholders Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 















Paid-in capital6,7,8

 

$

13,201,596

 

$

107,951,002

 

$

17,748,326

 

$

181,433,476

 

Undistributed net investment income

 

 

211,016

 

 

2,242,557

 

 

285,950

 

 

4,064,226

 

Accumulated net realized loss

 

 

(618,766

)

 

(2,040,086

)

 

(51,427

)

 

(4,254,171

)

Net unrealized appreciation/depreciation

 

 

(29,742

)

 

1,103,117

 

 

594,452

 

 

1,128,357

 

 

 













Net Assets Applicable to Common Shareholders

 

$

12,764,104

 

$

109,256,590

 

$

18,577,301

 

$

182,371,888

 

 

 













Net asset value per Common Share

 

$

12.57

 

$

14.38

 

$

14.15

 

$

14.27

 

 

 













1

Investments at cost — unaffiliated

 

$

19,378,628

 

$

163,524,492

 

$

27,613,088

 

$

284,884,012

 

 

 

 













2

Investments at cost — affiliated

 

$

413,597

 

$

5,032,609

 

$

177,010

 

$

414,030

 

 

 

 













3

Represents short-term floating rate certificates issued by tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













4

Preferred Shares outstanding, par value $0.001 per share

 

 

276

 

 

2,364

 

 

389

 

 

3,780

 

 

 

 













5

Preferred Shares authorized

 

 

300

 

 

unlimited

 

 

392

 

 

unlimited

 

 

 

 













6

Par value per Common Share

 

$

0.01

 

$

0.001

 

$

0.01

 

$

0.001

 

 

 

 













7

Common Shares outstanding

 

 

1,015,366

 

 

7,596,636

 

 

1,312,898

 

 

12,778,686

 

 

 

 













8

Common Shares authorized

 

 

200 million

 

 

unlimited

 

 

200 million

 

 

unlimited

 

 

 

 














 

 

 

 





 

ANNUAL REPORT

JULY 31, 2010

43




 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31, 2010

 

BlackRock
California
Investment Quality
Municipal Trust Inc.
(RAA)

 

BlackRock
California
Municipal
Income Trust
(BFZ)

 

BlackRock
Florida
Municipal 2020
Term Trust
(BFO)

 

BlackRock
Investment Quality
Municipal
Income Trust
(RFA)

 

BlackRock
Municipal
Income
Investment Trust
(BBF)

 













Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Interest

 

$

1,032,475

 

$

26,694,718

 

$

6,204,150

 

$

1,124,209

 

$

7,417,989

 

Income — affiliated

 

 

527

 

 

6,593

 

 

560

 

 

1,086

 

 

10,775

 

 

 
















Total income

 

 

1,033,002

 

 

26,701,311

 

 

6,204,710

 

 

1,125,295

 

 

7,428,764

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Reorganization costs

 

 

101,300

 

 

181,321

 

 

 

 

 

 

 

Investment advisory

 

 

72,186

 

 

3,096,895

 

 

631,344

 

 

75,775

 

 

886,817

 

Professional

 

 

36,222

 

 

70,792

 

 

44,737

 

 

31,555

 

 

47,228

 

Administration

 

 

20,625

 

 

 

 

 

 

21,650

 

 

 

Transfer agent

 

 

15,061

 

 

37,437

 

 

18,169

 

 

14,854

 

 

19,076

 

Commissions for Preferred Shares

 

 

8,980

 

 

158,959

 

 

64,247

 

 

7,038

 

 

43,987

 

Custodian

 

 

5,424

 

 

26,846

 

 

9,784

 

 

5,357

 

 

11,709

 

Printing

 

 

4,867

 

 

60,864

 

 

19,161

 

 

3,935

 

 

20,250

 

Accounting services

 

 

3,619

 

 

83,308

 

 

23,186

 

 

4,771

 

 

35,918

 

Officer and Trustees

 

 

2,553

 

 

40,321

 

 

10,069

 

 

2,621

 

 

12,852

 

Registration

 

 

435

 

 

13,023

 

 

9,330

 

 

488

 

 

9,333

 

Miscellaneous

 

 

28,076

 

 

69,180

 

 

37,793

 

 

30,786

 

 

46,523

 

 

 
















Total expenses excluding interest expense and fees

 

 

299,348

 

 

3,838,946

 

 

867,820

 

 

198,830

 

 

1,133,693

 

Interest expense and fees1

 

 

9,250

 

 

578,862

 

 

33,084

 

 

29,048

 

 

185,732

 

 

 
















Total expenses

 

 

308,598

 

 

4,417,808

 

 

900,904

 

 

227,878

 

 

1,319,425

 

Less fees waived by advisor

 

 

(1,367

)

 

(284,292

)

 

(4,367

)

 

(327

)

 

(76,970

)

 

 
















Total expenses after fees waived

 

 

307,231

 

 

4,133,516

 

 

896,537

 

 

227,551

 

 

1,242,455

 

 

 
















Net investment income

 

 

725,771

 

 

22,567,795

 

 

5,308,173

 

 

897,744

 

 

6,186,309

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(166,897

)

 

(6,814,032

)

 

(3,583

)

 

(373,067

)

 

(1,588,168

)

Financial futures contracts

 

 

(1,120

)

 

(43,727

)

 

 

 

1,632

 

 

11,423

 

 

 
















 

 

 

(168,017

)

 

(6,857,759

)

 

(3,583

)

 

(371,435

)

 

(1,576,745

)

 

 
















Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

1,641,606

 

 

38,776,514

 

 

7,283,510

 

 

1,707,371

 

 

9,562,974

 

Financial futures contracts

 

 

(2,143

)

 

(40,714

)

 

 

 

 

 

 

 

 
















 

 

 

1,639,463

 

 

38,735,800

 

 

7,283,510

 

 

1,707,371

 

 

9,562,974

 

 

 
















Total realized and unrealized gain

 

 

1,471,446

 

 

31,878,041

 

 

7,279,927

 

 

1,335,936

 

 

7,986,229

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends and Distributions to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

 

(24,951

)

 

(494,675

)

 

(177,702

)

 

(18,365

)

 

(143,487

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

 
















Total dividends and distributions to Preferred Shareholders

 

 

(24,951

)

 

(494,675

)

 

(177,702

)

 

(18,365

)

 

(143,487

)

 

 
















Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

2,172,266

 

$

53,951,161

 

$

12,410,398

 

$

2,215,315

 

$

14,029,051

 

 

 

















 

 

1

Related to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.





44

ANNUAL REPORT

JULY 31, 2010

 




 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31, 2010

 

BlackRock
New Jersey
Investment Quality
Municipal Trust Inc.
(RNJ)

 

BlackRock
New Jersey
Municipal
Income Trust
(BNJ)

 

BlackRock
New York
Investment Quality
Municipal Trust Inc.
(RNY)

 

BlackRock
New York
Municipal
Income Trust
(BNY)

 











Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 















Interest

 

$

1,026,476

 

$

8,968,576

 

$

1,476,565

 

$

15,286,256

 

Income — affiliated

 

 

885

 

 

3,097

 

 

407

 

 

2,372

 

 

 













Total income

 

 

1,027,361

 

 

8,971,673

 

 

1,476,972

 

 

15,288,628

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 















Reorganization costs

 

 

 

 

 

 

 

 

 

Investment advisory

 

 

67,877

 

 

991,619

 

 

97,304

 

 

1,694,961

 

Professional

 

 

32,070

 

 

46,974

 

 

30,953

 

 

51,740

 

Administration

 

 

19,393

 

 

 

 

27,801

 

 

 

Transfer agent

 

 

16,127

 

 

19,468

 

 

15,675

 

 

26,234

 

Commissions for Preferred Shares

 

 

10,455

 

 

71,715

 

 

14,735

 

 

130,407

 

Custodian

 

 

4,709

 

 

12,489

 

 

5,160

 

 

18,354

 

Printing

 

 

3,872

 

 

26,800

 

 

2,981

 

 

44,389

 

Accounting services

 

 

3,065

 

 

31,902

 

 

3,017

 

 

55,844

 

Officer and Trustees

 

 

2,911

 

 

14,743

 

 

3,078

 

 

24,614

 

Registration

 

 

438

 

 

9,449

 

 

567

 

 

9,506

 

Miscellaneous

 

 

33,963

 

 

50,261

 

 

32,373

 

 

60,436

 

 

 













Total expenses excluding interest expense and fees

 

 

194,880

 

 

1,275,420

 

 

233,644

 

 

2,116,485

 

Interest expense and fees1

 

 

1,321

 

 

11,422

 

 

1,111

 

 

86,892

 

 

 













Total expenses

 

 

196,201

 

 

1,286,842

 

 

234,755

 

 

2,203,377

 

Less fees waived by advisor

 

 

(2,725

)

 

(99,470

)

 

(839

)

 

(148,374

)

 

 













Total expenses after fees waived

 

 

193,476

 

 

1,187,372

 

 

233,916

 

 

2,055,003

 

 

 













Net investment income

 

 

833,885

 

 

7,784,301

 

 

1,243,056

 

 

13,233,625

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 















Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(76,702

)

 

102,336

 

 

33,653

 

 

160,031

 

Financial futures contracts

 

 

1,632

 

 

12,059

 

 

2,773

 

 

2,764

 

 

 













 

 

 

(75,070

)

 

114,395

 

 

36,426

 

 

162,795

 

 

 













Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

1,310,034

 

 

11,576,851

 

 

1,660,341

 

 

19,574,663

 

Financial futures contracts

 

 

 

 

 

 

(5,134

)

 

(47,488

)

 

 













 

 

 

1,310,034

 

 

11,576,851

 

 

1,655,207

 

 

19,527,175

 

 

 













Total realized and unrealized gain

 

 

1,234,964

 

 

11,691,246

 

 

1,691,633

 

 

19,689,970

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends and Distributions to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

 

(28,907

)

 

(243,304

)

 

(38,597

)

 

(393,227

)

Net realized gain

 

 

 

 

 

 

(2,688

)

 

 

 

 













Total dividends and distributions to Preferred Shareholders

 

 

(28,907

)

 

(243,304

)

 

(41,285

)

 

(393,227

)

 

 













Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

2,039,942

 

$

19,232,243

 

$

2,893,404

 

$

32,530,368

 

 

 














 

 

 

 





 

ANNUAL REPORT

JULY 31, 2010

45




 


 

Statements of Changes in Net Assets


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock California Investment
Quality Municipal Trust Inc. (RAA)

 

BlackRock California
Municipal Income Trust (BFZ)

 

 

 


 



 

 

Year Ended July 31,

 

Year Ended July 31,

 

 

 


 



Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

 

2010

 

 

2009

 

 

2010

 

 

2009

 















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

$

725,771

 

$

820,424

 

$

22,567,795

 

$

15,604,620

 

Net realized loss

 

 

(168,017

)

 

(409,961

)

 

(6,857,759

)

 

(4,491,898

)

Net change in unrealized appreciation/depreciation

 

 

1,639,463

 

 

(261,443

)

 

38,735,800

 

 

(15,831,689

)

Dividends to Preferred Shareholders from net investment income

 

 

(24,951

)

 

(129,647

)

 

(494,675

)

 

(1,891,066

)

 

 






 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

2,172,266

 

 

19,373

 

 

53,951,161

 

 

(6,610,033

)

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

 

(653,775

)

 

(572,070

)

 

(21,334,104

)

 

(12,623,286

)

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 















Common Shares issued from reorganization

 

 

 

 

 

 

228,998,766

 

 

 

Reinvestment of common dividends

 

 

 

 

 

 

132,023

 

 

113,246

 

 

 






 







 

 

 

 

 

 

 

229,130,789

 

 

113,246

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

1,518,491

 

 

(552,697

)

 

261,747,846

 

 

(19,120,073

)

Beginning of year

 

 

12,440,843

 

 

12,993,540

 

 

192,550,820

 

 

211,670,893

 

 

 






 







End of year

 

$

13,959,334

 

$

12,440,843

 

$

454,298,666

 

$

192,550,820

 

 

 






 







Undistributed net investment income

 

$

256,509

 

$

108,164

 

$

4,789,170

 

$

3,757,416

 

 

 






 








 

 

 

 

See Notes to Financial Statements.





46

ANNUAL REPORT

JULY 31, 2010

 




 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Florida
Municipal 2020 Term Trust (BFO)

 

BlackRock Investment Quality
Municipal Income Trust (RFA)

 

 

 


 



 

 

Year Ended July 31,

 

Year Ended July 31,

 

 

 


 



Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

2010

 

2009

 

2010

 

2009

 











Operations

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

$

5,308,173

 

$

5,334,086

 

$

897,744

 

$

948,055

 

Net realized loss

 

 

(3,583

)

 

(542,712

)

 

(371,435

)

 

(1,492,618

)

Net change in unrealized appreciation/depreciation

 

 

7,283,510

 

 

(5,010,059

)

 

1,707,371

 

 

2,577

 

Dividends to Preferred Shareholders from net investment income

 

 

(177,702

)

 

(812,866

)

 

(18,365

)

 

(133,806

)

 

 






 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

12,410,398

 

 

(1,031,551

)

 

2,215,315

 

 

(675,792

)

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

 

(3,737,750

)

 

(3,459,643

)

 

(932,299

)

 

(630,045

)

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 















Reinvestment of common dividends

 

 

 

 

 

 

6,619

 

 

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

8,672,648

 

 

(4,491,194

)

 

1,289,635

 

 

(1,305,837

)

Beginning of year

 

 

74,255,949

 

 

78,747,143

 

 

12,565,266

 

 

13,871,103

 

 

 






 







End of year

 

$

82,928,597

 

$

74,255,949

 

$

13,854,901

 

$

12,565,266

 

 

 






 







Undistributed net investment income

 

$

3,169,845

 

$

1,776,506

 

$

147,128

 

$

199,992

 

 

 






 








 

 

 

 

See Notes to Financial Statements.





 

ANNUAL REPORT

JULY 31, 2010

47




 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Municipal
Income Investment Trust (BBF)

 

BlackRock New Jersey Investment
Quality Municipal Trust Inc. (RNJ)

 

 

 


 



 

 

Year Ended July 31,

 

Year Ended July 31,

 

 

 


 



Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

2010

 

2009

 

2010

 

2009

 















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

$

6,186,309

 

$

6,772,595

 

$

833,885

 

$

873,210

 

Net realized loss

 

 

(1,576,745

)

 

(5,674,598

)

 

(75,070

)

 

(239,482

)

Net change in unrealized appreciation/depreciation

 

 

9,562,974

 

 

(3,424,220

)

 

1,310,034

 

 

(738,822

)

Dividends to Preferred Shareholders from net investment income

 

 

(143,487

)

 

(928,185

)

 

(28,907

)

 

(132,892

)

 

 






 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

14,029,051

 

 

(3,254,408

)

 

2,039,942

 

 

(237,986

)

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

 

(6,050,943

)

 

(5,882,637

)

 

(783,778

)

 

(644,573

)

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 















Reinvestment of common dividends

 

 

44,565

 

 

10,803

 

 

33,509

 

 

6,227

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

8,022,673

 

 

(9,126,242

)

 

1,289,673

 

 

(876,332

)

Beginning of year

 

 

85,050,209

 

 

94,176,451

 

 

11,474,431

 

 

12,350,763

 

 

 






 







End of year

 

$

93,072,882

 

$

85,050,209

 

$

12,764,104

 

$

11,474,431

 

 

 






 







Undistributed net investment income

 

$

689,752

 

$

698,408

 

$

211,016

 

$

189,816

 

 

 






 








 

 

 

 

See Notes to Financial Statements.





48

ANNUAL REPORT

JULY 31, 2010

 




 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock New Jersey
Municipal Income Trust (BNJ)

 

BlackRock New York Investment
Quality Municipal Trust Inc. (RNY)

 

 

 


 



 

 

Year Ended July 31,

 

Year Ended July 31,

 

 

 


 



Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

2010

 

2009

 

2010

 

2009

 











Operations

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

$

7,784,301

 

$

7,922,678

 

$

1,243,056

 

$

1,247,875

 

Net realized gain (loss)

 

 

114,395

 

 

(863,424

)

 

36,426

 

 

12,600

 

Net change in unrealized appreciation/depreciation

 

 

11,576,851

 

 

(9,243,381

)

 

1,655,207

 

 

(776,965

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(243,304

)

 

(1,141,652

)

 

(38,597

)

 

(183,809

)

Net realized gain

 

 

 

 

 

 

(2,688

)

 

(2,815

)

 

 






 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

19,232,243

 

 

(3,325,779

)

 

2,893,404

 

 

296,886

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

 

(7,062,352

)

 

(7,033,018

)

 

(1,096,393

)

 

(942,306

)

Net realized gain

 

 

 

 

 

 

(32,629

)

 

(6,697

)

 

 






 







Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(7,062,352

)

 

(7,033,018

)

 

(1,129,022

)

 

(949,003

)

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 















Reinvestment of common dividends

 

 

390,663

 

 

459,252

 

 

16,795

 

 

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

12,560,554

 

 

(9,899,545

)

 

1,781,177

 

 

(652,117

)

Beginning of year

 

 

96,696,036

 

 

106,595,581

 

 

16,796,124

 

 

17,448,241

 

 

 






 







End of year

 

$

109,256,590

 

$

96,696,036

 

$

18,577,301

 

$

16,796,124

 

 

 






 







Undistributed net investment income

 

$

2,242,557

 

$

1,763,915

 

$

285,950

 

$

177,886

 

 

 






 








 

 

 

 

See Notes to Financial Statements.





 

ANNUAL REPORT

JULY 31, 2010

49




 


 

Statements of Changes in Net Assets (concluded)


 

 

 

 

 

 

 

 

 

 

BlackRock New York
Municipal Income Trust (BNY)

 

 

 



 

 

Year Ended July 31,

 

 

 



Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

2010

 

2009

 







Operations

 

 

 

 

 

 

 









Net investment income

 

$

13,233,625

 

$

13,527,849

 

Net realized gain (loss)

 

 

162,795

 

 

(2,083,976

)

Net change in unrealized appreciation/depreciation

 

 

19,527,175

 

 

(12,836,387

)

Dividends to Preferred Shareholders from net investment income

 

 

(393,227

)

 

(1,818,574

)

 

 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

32,530,368

 

 

(3,211,088

)

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(12,596,574

)

 

(11,605,688

)

 

 







 

 

 

 

 

 

 

 









Capital Share Transactions

 

 

 

 

 

 

 









Reinvestment of common dividends

 

 

711,029

 

 

616,838

 

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

20,644,823

 

 

(14,199,938

)

Beginning of year

 

 

161,727,065

 

 

175,927,003

 

 

 







End of year

 

$

182,371,888

 

$

161,727,065

 

 

 







Undistributed net investment income

 

$

4,064,226

 

$

3,820,768

 

 

 








 

 

 

 

See Notes to Financial Statements.





50

ANNUAL REPORT

JULY 31, 2010

 




 


 

Statements of Cash Flows


 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31, 2010

 

BlackRock
California
Municipal
Income Trust
(BFZ)

 

BlackRock
Investment Quality
Municipal
Income Trust
(RFA)

 

BlackRock
Municipal
Income
Investment Trust
(BBF)

 









Cash Provided By/Used For Operating Activities

 

 

 

 

 

 

 

 

 

 












Net increase in net assets resulting from operations, excluding dividends to Preferred Shareholders

 

$

54,445,836

 

$

2,233,680

 

$

14,172,538

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by/used for operating activities:

 

 

 

 

 

 

 

 

 

 

Increase in interest receivable

 

 

(5,563,355

)

 

(14,264

)

 

(62,693

)

Decrease of interest receivable acquired in reorganization

 

 

6,128,206

 

 

 

 

 

Decrease in income receivable — affiliated

 

 

128

1

 

31

 

 

33

 

(Increase) decrease in other assets

 

 

(20,486

)

 

(175

)

 

188

 

Decrease in prepaid expenses

 

 

50,664

 

 

254

 

 

5,077

 

Decrease in investment sold receivable acquired in reorganization

 

 

5,229,784

 

 

 

 

 

Increase in investment advisory fees payable

 

 

41,140

1

 

452

 

 

10,935

 

Increase (decrease) in interest expense payable

 

 

15,310

 

 

(943

)

 

631

 

Increase in other affiliates payable

 

 

2,577

 

 

 

 

28

 

Increase (decrease) in other accrued expenses payable

 

 

(10,611

)

1

2,199

 

 

256

 

Increase in cash pledged as collateral in connection with financial futures contracts

 

 

(27,000

)

 

 

 

 

Increase in administration fees payable

 

 

 

 

91

 

 

 

Increase in Officer’s and Trustees’ fees payable

 

 

2,096

1

 

675

 

 

494

 

Decrease in reorganization costs payable

 

 

(175,521

)

1

 

 

 

Increase in margin valuation payable

 

 

13,656

 

 

 

 

 

Net realized and unrealized gain

 

 

(31,982,968

)

 

(1,334,129

)

 

(7,974,806

)

Amortization of premium and discount on investments

 

 

(390,361

)

 

(31,954

)

 

(145,212

)

Proceeds from sales of long-term investments

 

 

236,359,425

 

 

9,255,695

 

 

65,030,062

 

Purchases of long-term investments

 

 

(250,986,480

)

 

(9,468,620

)

 

(65,742,692

)

Net purchases of short-term securities

 

 

(22,547,337

)

 

(253,516

)

 

(3,260,646

)

 

 










Cash provided by/used for operating activities

 

 

(9,415,297

)

 

389,476

 

 

2,034,193

 

 

 










 












Cash Used For/Provided By Financing Activities

 

 

 

 

 

 

 

 

 

 












Cash receipts from trust certificates

 

 

43,746,509

 

 

674,799

 

 

4,588,637

 

Cash payments for trust certificates

 

 

(13,744,994

)

 

(185,000

)

 

(555,000

)

Cash dividends paid to Common Shareholders

 

 

(19,940,481

)

 

(917,608

)

 

(6,006,134

)

Cash dividends paid to Preferred Shareholders

 

 

(495,891

)

1

(11,809

)

 

(144,206

)

Payment of bank overdraft assumed in reorganization

 

 

(216,669

)

 

 

 

 

 

 










Cash used for/provided by financing activities

 

 

9,348,474

 

 

(439,618

)

 

(2,116,703

)

 

 










 












Cash

 

 

 

 

 

 

 

 

 

 












Net decrease in cash

 

 

(66,823

)

 

(50,142

)

 

(82,510

)

Cash at beginning of year

 

 

66,823

 

 

50,142

 

 

82,510

 

 

 










Cash at end of year

 

 

 

 

 

 

 

 

 










 












Cash Flow Information

 

 

 

 

 

 

 

 

 

 












Cash paid during the year for interest

 

$

563,551

 

$

29,991

 

$

185,101

 

 

 










 












Noncash Activities

 

 

 

 

 

 

 

 

 

 












Fair value of investments acquired through reorganization

 

$

360,326,722

 

 

 

 

 

 

 










Overdraft payable assumed in reorganization

 

$

237,646

 

 

 

 

 

 

 










Increase in trust certificates assumed in reorganization

 

$

41,684,328

 

 

 

 

 

 

 










Preferred Shares issued in reorganization

 

$

100,325,000

 

 

 

 

 

 

 










Capital shares issued in reorganization

 

$

228,998,766

 

 

 

 

 

 

 










Capital shares issued in reinvestment of dividends paid to Common Shareholders

 

$

132,023

 

$

6,619

 

$

44,565

 

 

 











 

 

1

Includes assets and liabilities acquired in reorganization.

 

 

 

A Statement of Cash Flows is presented when a Trust has a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average total assets.


 

 

 

 

See Notes to Financial Statements.

 

 


 

ANNUAL REPORT

JULY 31, 2010

51




 

 


 

 

Financial Highlights

BlackRock California Investment Quality Municipal Trust Inc. (RAA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

Year Ended October 31,

 

 

 


 

 


 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.35

 

$

12.90

 

$

13.86

 

$

14.51

 

$

14.20

 

$

14.43

 

 

 



















Net investment income

 

 

0.72

1

 

0.81

1

 

0.60

1

 

0.84

 

 

0.87

 

 

0.78

 

Net realized and unrealized gain (loss)

 

 

1.46

 

 

(0.66

)

 

(0.95

)

 

(0.58

)

 

0.50

 

 

(0.03

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.02

)

 

(0.13

)

 

(0.18

)

 

(0.24

)

 

(0.21

)

 

(0.13

)

Net realized gain

 

 

 

 

 

 

 

 

(0.02

)

 

 

 

 

 

 



















Net increase (decrease) from investment operations

 

 

2.16

 

 

0.02

 

 

(0.53

)

 

 

 

1.16

 

 

0.62

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.65

)

 

(0.57

)

 

(0.43

)

 

(0.60

)

 

(0.85

)

 

(0.85

)

Net realized gain

 

 

 

 

 

 

 

 

(0.05

)

 

 

 

 

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.65

)

 

(0.57

)

 

(0.43

)

 

(0.65

)

 

(0.85

)

 

(0.85

)

 

 



















Net asset value, end of period

 

$

13.86

 

$

12.35

 

$

12.90

 

$

13.86

 

$

14.51

 

$

14.20

 

 

 



















Market price, end of period

 

$

13.59

 

$

11.20

 

$

11.96

 

$

12.57

 

$

15.80

 

$

15.75

 

 

 



















 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

18.24

%

 

1.28

%

 

(3.68

)%3

 

0.01

%

 

7.87

%

 

4.32

%

 

 



















Based on market price

 

 

27.84

%

 

(0.93

)%

 

(1.53

)%3

 

(16.71

)%

 

5.90

%

 

16.76

%

 

 



















 





















Ratios to Average Net Assets Applicable to
Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

2.29

%

 

1.60

%

 

1.62

%5,6

 

1.47

%

 

1.50

%

 

1.39

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

2.28

%

 

1.57

%

 

1.59

%5,6

 

1.46

%

 

1.50

%

 

1.39

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

2.28

%

 

1.57

%

 

1.59

%5,6

 

1.39

%

 

1.41

%

 

1.35

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees and reorganization cost4,7

 

 

1.46

%

 

1.51

%

 

1.56

%5,6

 

1.39

%

 

1.41

%

 

1.35

%

 

 



















Net investment income4

 

 

5.38

%

 

6.82

%

 

6.00

%5,6

 

5.90

%

 

6.11

%

 

5.38

%

 

 



















Dividends to Preferred Shareholders

 

 

0.18

%

 

1.08

%

 

1.74

%5

 

1.68

%

 

1.50

%

 

0.88

%

 

 



















Net investment income to Common Shareholders

 

 

5.20

%

 

5.74

%

 

4.26

%5,6

 

4.22

%

 

4.61

%

 

4.50

%

 

 



















 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

13,959

 

$

12,441

 

$

12,994

 

$

13,956

 

$

14,615

 

$

14,299

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

5,925

 

$

5,925

 

$

6,825

 

$

7,500

 

$

7,500

 

$

7,500

 

 

 



















Portfolio turnover

 

 

51

%

 

68

%

 

14

%

 

38

%

 

49

%

 

20

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

83,901

 

$

77,495

 

$

72,598

 

$

71,534

 

$

73,731

 

$

72,671

 

 

 




















 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Certain non-recurring expenses have been included in the ratio but not annualized. If these expenses were annualized, the ratios of total expenses, total expenses after fees waived and before fees paid indirectly, total expenses after fees waived and paid indirectly, total expenses after fees waived and paid indirectly and excluding interest expense and fees and reorganization cost, net investment income and net investment income to Common Shareholders would have been 1.73%, 1.70%, 1.70%, 1.67%, 5.90% and 4.16%, respectively.

 

 

 

 

7

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.

 

 


52

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

 

Financial Highlights

BlackRock California Municipal Income Trust (BFZ)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

Year Ended October 31,

 

 

 


 

 


 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.71

 

$

13.98

 

$

14.97

 

$

15.74

 

$

15.18

 

$

14.77

 

 

 



















Net investment income

 

 

1.00

1

 

1.03

1

 

0.82

1

 

1.08

 

 

1.11

 

 

1.12

 

Net realized and unrealized gain (loss)

 

 

1.50

 

 

(1.35

)

 

(0.90

)

 

(0.64

)

 

0.62

 

 

0.36

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.12

)

 

(0.22

)

 

(0.30

)

 

(0.26

)

 

(0.16

)

 

 



















Net increase (decrease) from investment operations

 

 

2.48

 

 

(0.44

)

 

(0.30

)

 

0.14

 

 

1.47

 

 

1.32

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.91

)

 

(0.83

)

 

(0.69

)

 

(0.91

)

 

(0.91

)

 

(0.91

)

 

 



















Net asset value, end of period

 

$

14.28

 

$

12.71

 

$

13.98

 

$

14.97

 

$

15.74

 

$

15.18

 

 

 



















Market price, end of period

 

$

14.21

 

$

12.40

 

$

13.99

 

$

15.82

 

$

17.12

 

$

14.92

 

 

 



















 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

20.15

%

 

(2.36

)%

 

(2.09

)%3

 

0.77

%

 

9.93

%

 

9.47

%

 

 



















Based on market price

 

 

22.55

%

 

(4.81

)%

 

(7.29

)%3

 

(2.09

)%

 

21.65

%

 

16.42

%

 

 



















 





















Ratios to Average Net Assets Applicable to
Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.36

%

 

1.54

%

 

1.25

%5

 

1.21

%

 

1.25

%

 

1.25

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.27

%

 

1.35

%

 

0.98

%5

 

0.91

%

 

0.87

%

 

0.86

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.27

%

 

1.35

%

 

0.98

%5

 

0.91

%

 

0.87

%

 

0.85

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees and reorganization expense4,6

 

 

1.04

%

 

1.08

%

 

0.91

%5

 

0.91

%

 

0.87

%

 

0.85

%

 

 



















Net investment income4

 

 

6.94

%

 

8.27

%

 

7.39

%5

 

7.09

%

 

7.26

%

 

7.35

%

 

 



















Dividends to Preferred Shareholders

 

 

0.15

%

 

1.00

%

 

1.95

%5

 

1.98

%

 

1.71

%

 

1.04

%

 

 



















Net investment income to Common Shareholders

 

 

6.79

%

 

7.27

%

 

5.44

%5

 

5.11

%

 

5.55

%

 

6.31

%

 

 



















 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

454,299

 

$

192,551

 

$

211,671

 

$

225,939

 

$

236,573

 

$

227,472

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

171,325

 

$

71,000

 

$

100,900

 

$

131,950

 

$

131,950

 

$

131,950

 

 

 



















Portfolio turnover

 

 

47

%

 

58

%

 

26

%

 

26

%

 

17

%

 

28

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

91,293

 

$

92,801

 

$

77,457

 

$

67,816

 

$

69,836

 

$

68,107

 

 

 




















 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.

 

 


 

ANNUAL REPORT

JULY 31, 2010

53




 

 


 

 

Financial Highlights

BlackRock Florida Municipal 2020 Term Trust (BFO)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
January 1,
2008 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

Year Ended December 31,

 

 

 


 


 

 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

13.35

 

$

14.16

 

$

14.72

 

$

15.16

 

$

14.90

 

$

14.63

 

 

 



















Net investment income

 

 

0.95

1

 

0.96

1

 

0.58

1

 

0.99

 

 

0.98

 

 

0.98

 

Net realized and unrealized gain (loss)

 

 

1.31

 

 

(1.00

)

 

(0.62

)

 

(0.45

)

 

0.23

 

 

0.31

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.03

)

 

(0.15

)

 

(0.16

)

 

(0.31

)

 

(0.29

)

 

(0.20

)

Net realized gain

 

 

 

 

 

 

 

 

(0.02

)

 

 

 

(0.01

)

 

 



















Net increase (decrease) from investment operations

 

 

2.23

 

 

(0.19

)

 

(0.20

)

 

0.21

 

 

0.92

 

 

1.08

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.67

)

 

(0.62

)

 

(0.36

)

 

(0.61

)

 

(0.66

)

 

(0.75

)

Net realized gain

 

 

 

 

 

 

 

 

(0.04

)

 

 

 

(0.06

)

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.67

)

 

(0.62

)

 

(0.36

)

 

(0.65

)

 

(0.66

)

 

(0.81

)

 

 



















Net asset value, end of period

 

$

14.91

 

$

13.35

 

$

14.16

 

$

14.72

 

$

15.16

 

$

14.90

 

 

 



















Market price, end of period

 

$

14.30

 

$

12.31

 

$

12.50

 

$

12.93

 

$

13.85

 

$

13.35

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

17.35

%

 

(0.48

)%

 

(1.12

)%3

 

1.86

%

 

6.73

%

 

7.71

%

 

 



















Based on market price

 

 

22.05

%

 

3.95

%

 

(0.63

)%3

 

(2.06

)%

 

8.83

%

 

(6.76

)%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.14

%

 

1.29

%

 

1.22

%5

 

1.16

%

 

1.20

%

 

1.26

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.13

%

 

1.26

%

 

1.22

%5

 

1.16

%

 

1.20

%

 

1.26

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.13

%

 

1.26

%

 

1.22

%5

 

1.16

%

 

1.18

%

 

1.24

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.09

%

 

1.13

%

 

1.17

%5

 

1.16

%

 

1.18

%

 

1.24

%

 

 



















Net investment income4

 

 

6.72

%

 

7.39

%

 

6.74

%5

 

6.63

%

 

6.54

%

 

6.57

%

 

 



















Dividends to Preferred Shareholders

 

 

0.22

%

 

1.13

%

 

1.92

%5

 

2.07

%

 

1.96

%

 

1.32

%

 

 



















Net investment income to Common Shareholders

 

 

6.50

%

 

6.26

%

 

4.82

%5

 

4.56

%

 

4.58

%

 

5.25

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

82,929

 

$

74,256

 

$

78,747

 

$

81,896

 

$

84,300

 

$

82,875

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

42,900

 

$

42,900

 

$

42,900

 

$

48,900

 

$

48,900

 

$

48,900

 

 

 



















Portfolio turnover

 

 

6

%

 

9

%

 

6

%

 

17

%

 

 

 

 

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

73,329

 

$

68,275

 

$

70,900

 

$

66,872

 

$

68,114

 

$

67,379

 

 

 




















 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.

 





54

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

 

Financial Highlights

BlackRock Investment Quality Municipal Income Trust (RFA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

Year Ended October 31,

 

 


 

 



 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

11.15

 

$

12.31

 

$

13.43

 

$

14.24

 

$

14.39

 

$

15.02

 

 

 



















Net investment income

 

 

0.80

1

 

0.84

1

 

0.62

1

 

0.83

 

 

0.82

 

 

0.84

 

Net realized and unrealized gain (loss)

 

 

1.19

 

 

(1.32

)

 

(1.14

)

 

(0.69

)

 

0.40

 

 

(0.35

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.02

)

 

(0.12

)

 

(0.20

)

 

(0.26

)

 

(0.21

)

 

(0.15

)

Net realized gain

 

 

 

 

 

 

 

 

(0.04

)

 

(0.05

)

 

(0.01

)

 

 



















Net increase (decrease) from investment operations

 

 

1.97

 

 

(0.60

)

 

(0.72

)

 

(0.16

)

 

0.96

 

 

0.33

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.83

)

 

(0.56

)

 

(0.40

)

 

(0.60

)

 

(0.85

)

 

(0.85

)

Net realized gain

 

 

 

 

 

 

 

 

(0.05

)

 

(0.26

)

 

(0.11

)

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.83

)

 

(0.56

)

 

(0.40

)

 

(0.65

)

 

(1.11

)

 

(0.96

)

 

 



















Net asset value, end of period

 

$

12.29

 

$

11.15

 

$

12.31

 

$

13.43

 

$

14.24

 

$

14.39

 

 

 



















Market price, end of period

 

$

12.60

 

$

10.08

 

$

10.93

 

$

11.86

 

$

16.00

 

$

14.85

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

18.09

%

 

(3.68

)%

 

(5.03

)%3

 

(1.02

)%

 

6.46

%

 

2.19

%

 

 



















Based on market price

 

 

33.92

%

 

(1.93

)%

 

(4.51

)%3

 

(22.21

)%

 

15.91

%

 

10.76

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.69

%

 

1.72

%

 

1.60

%5,6

 

1.44

%

 

1.43

%

 

1.32

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.69

%

 

1.68

%

 

1.58

%5,6

 

1.43

%

 

1.43

%

 

1.32

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.69

%

 

1.68

%

 

1.58

%5,6

 

1.39

%

 

1.37

%

 

1.29

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,7

 

 

1.47

%

 

1.56

%

 

1.53

%5,6

 

1.39

%

 

1.37

%

 

1.29

%

 

 



















Net investment income4

 

 

6.66

%

 

7.79

%

 

6.42

%5,6

 

6.03

%

 

5.80

%

 

5.69

%

 

 



















Dividends to Preferred Shareholders

 

 

0.13

%

 

1.10

%

 

2.03

%5

 

1.88

%

 

1.49

%

 

1.05

%

 

 



















Net investment income to Common Shareholders

 

 

6.53

%

 

6.69

%

 

4.39

%5,6

 

4.15

%

 

4.31

%

 

4.64

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

13,855

 

$

12,565

 

$

13,871

 

$

15,134

 

$

16,054

 

$

16,214

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

4,575

 

$

4,575

 

$

7,125

 

$

8,500

 

$

8,500

 

$

8,500

 

 

 



















Portfolio turnover

 

 

44

%

 

88

%

 

29

%

 

40

%

 

57

%

 

15

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

100,711

 

$

93,664

 

$

73,687

 

$

69,526

 

$

72,229

 

$

72,696

 

 

 




















 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Certain non-recurring expenses have been included in the ratio but not annualized. If these expenses were annualized, the ratios of total expenses, total expenses after fees waived and before fees paid indirectly, total expenses after fees waived and paid indirectly, total expenses after fees waived and paid indirectly and excluding interest expense and fees, net investment income and net investment income to Common Shareholders would have been 1.71%, 1.68%, 1.68%, 1.63%, 6.31% and 4.28%, respectively.

 

 

 

 

7

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.

 

 





 

ANNUAL REPORT

JULY 31, 2010

55




 

 


 

 

Financial Highlights

BlackRock Municipal Income Investment Trust (BBF)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

Year Ended October 31,

 

 

 


 

 



 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.7

1

$

14.08

 

$

15.05

 

$

15.68

 

$

15.48

 

$

15.27

 

 

 



















Net investment income

 

 

0.92

1

 

1.01

1

 

0.80

1

 

1.07

 

 

1.11

 

 

1.11

 

Net realized and unrealized gain (loss)

 

 

1.20

 

 

(1.36

)

 

(0.89

)

 

(0.49

)

 

0.26

 

 

0.17

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.14

)

 

(0.22

)

 

(0.31

)

 

(0.27

)

 

(0.17

)

 

 



















Net increase (decrease) from investment operations

 

 

2.10

 

 

(0.49

)

 

(0.31

)

 

0.27

 

 

1.10

 

 

1.11

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.90

)

 

(0.88

)

 

(0.66

)

 

(0.90

)

 

(0.90

)

 

(0.90

)

 

 



















Net asset value, end of period

 

$

13.91

 

$

12.71

 

$

14.08

 

$

15.05

 

$

15.68

 

$

15.48

 

 

 



















Market price, end of period

 

$

13.90

 

$

12.49

 

$

13.68

 

$

15.10

 

$

16.30

 

$

15.25

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

17.04

%

 

(2.57

)%

 

(2.04

)%3

 

1.78

%

 

7.34

%

 

7.63

%

 

 



















Based on market price

 

 

19.01

%

 

(1.46

)%

 

(5.14

)%3

 

(1.76

)%

 

13.26

%

 

12.44

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.46

%

 

1.47

%

 

1.31

%5

 

1.28

%

 

1.30

%

 

1.30

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.37

%

 

1.27

%

 

1.06

%5

 

0.97

%

 

0.93

%

 

0.91

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.37

%

 

1.27

%

 

1.06

%5

 

0.96

%

 

0.92

%

 

0.90

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.17

%

 

1.16

%

 

1.02

%5

 

0.96

%

 

0.92

%

 

0.90

%

 

 



















Net investment income4

 

 

6.84

%

 

8.13

%

 

7.26

%5

 

7.02

%

 

7.12

%

 

7.16

%

 

 



















Dividends to Preferred Shareholders

 

 

0.16

%

 

1.11

%

 

1.96

%5

 

2.04

%

 

1.75

%

 

1.11

%

 

 



















Net investment income to Common Shareholders

 

 

6.68

%

 

7.02

%

 

5.30

%5

 

4.98

%

 

5.37

%

 

6.05

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

93,073

 

$

85,050

 

$

94,176

 

$

100,564

 

$

104,451

 

$

102,944

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

34,250

 

$

34,250

 

$

49,550

 

$

57,550

 

$

57,550

 

$

57,550

 

 

 



















Portfolio turnover

 

 

46

%

 

66

%

 

13

%

 

25

%

 

20

%

 

10

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

92,938

 

$

87,082

 

$

72,521

 

$

68,688

 

$

70,391

 

$

69,729

 

 

 




















 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.





56

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

 

Financial Highlights

BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

Year Ended October 31,

 

 

 


 

 



 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

11.33

 

$

12.20

 

$

13.57

 

$

14.47

 

$

14.48

 

$

14.79

 

 

 



















Net investment income

 

 

0.82

1

 

0.86

1

 

0.66

1

 

0.91

 

 

0.85

 

 

0.87

 

Net realized and unrealized gain (loss)

 

 

1.22

 

 

(0.96

)

 

(1.26

)

 

(0.70

)

 

0.34

 

 

(0.21

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.03

)

 

(0.13

)

 

(0.16

)

 

(0.23

)

 

(0.20

)

 

(0.15

)

Net realized gain

 

 

 

 

 

 

 

 

(0.02

)

 

(0.03

)

 

 

 

 



















Net increase (decrease) from investment operations

 

 

2.01

 

 

(0.23

)

 

(0.76

)

 

(0.04

)

 

0.96

 

 

0.51

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.77

)

 

(0.64

)

 

(0.61

)

 

(0.82

)

 

(0.84

)

 

(0.82

)

Net realized gain

 

 

 

 

 

 

 

 

(0.04

)

 

(0.13

)

 

 

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.77

)

 

(0.64

)

 

(0.61

)

 

(0.86

)

 

(0.97

)

 

(0.82

)

 

 



















Net asset value, end of period

 

$

12.57

 

$

11.33

 

$

12.20

 

$

13.57

 

$

14.47

 

$

14.48

 

 

 



















Market price, end of period

 

$

12.96

 

$

11.68

 

$

11.96

 

$

14.96

 

$

15.95

 

$

14.70

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

18.01

%

 

(1.09

)%

 

(6.10

)%3

 

(1.03

)%

 

6.14

%

 

3.43

%

 

 



















Based on market price

 

 

18.02

%

 

4.01

%

 

(16.50

)%3

 

(1.02

)%

 

15.25

%

 

3.53

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.59

%

 

1.70

%

 

1.88

%5,6

 

1.48

%

 

1.51

%

 

1.37

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.57

%

 

1.67

%

 

1.86

%5,6

 

1.47

%

 

1.51

%

 

1.37

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.57

%

 

1.67

%

 

1.86

%5,6

 

1.40

%

 

1.41

%

 

1.34

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,7

 

 

1.56

%

 

1.64

%

 

1.84

%5,6

 

1.40

%

 

1.41

%

 

1.34

%

 

 



















Net investment income4

 

 

6.75

%

 

7.91

%

 

6.97

%5,6

 

6.49

%

 

5.91

%

 

5.89

%

 

 



















Dividends to Preferred Shareholders

 

 

0.23

%

 

1.20

%

 

1.89

%5

 

1.67

%

 

1.41

%

 

1.00

%

 

 



















Net investment income to Common Shareholders

 

 

6.52

%

 

6.71

%

 

5.08

%5,6

 

4.82

%

 

4.50

%

 

4.89

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

12,764

 

$

11,474

 

$

12,351

 

$

13,694

 

$

14,576

 

$

14,581

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

6,900

 

$

6,900

 

$

7,075

 

$

7,500

 

$

7,500

 

$

7,500

 

 

 



















Portfolio turnover

 

 

23

%

 

32

%

 

18

%

 

31

%

 

27

%

 

19

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

71,248

 

$

66,576

 

$

68,647

 

$

70,649

 

$

73,603

 

$

73,612

 

 

 




















 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Certain non-recurring expenses have been included in the ratio but not annualized. If these expenses were annualized, the ratios of total expenses, total expenses after fees waived and before fees paid indirectly, total expenses after fees waived and paid indirectly, total expenses after fees waived and paid indirectly and excluding interest expense and fees, net investment income and net investment income to Common Shareholders would have been 2.00%, 1.98%, 1.98%, 1.96%, 6.85% and 4.96%, respectively.

 

 

 

 

7

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.





 

ANNUAL REPORT

JULY 31, 2010

57




 

 


 

 

Financial Highlights

BlackRock New Jersey Municipal Income Trust (BNJ)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

Year Ended October 31,

 

 

 


 

 



 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.78

 

$

14.15

 

$

15.49

 

$

16.35

 

$

15.87

 

$

15.38

 

 

 



















Net investment income

 

 

1.02

1

 

1.05

1

 

0.89

1

 

1.14

 

 

1.17

 

 

1.17

 

Net realized and unrealized gain (loss)

 

 

1.54

 

 

(1.38

)

 

(1.24

)

 

(0.74

)

 

0.52

 

 

0.42

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.03

)

 

(0.11

)

 

(0.24

)

 

(0.30

)

 

(0.26

)

 

(0.18

)

 

 



















Net increase (decrease) from investment operations

 

 

2.53

 

 

(0.44

)

 

(0.59

)

 

0.10

 

 

1.43

 

 

1.41

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.93

)

 

(0.93

)

 

(0.75

)

 

(0.96

)

 

(0.95

)

 

(0.92

)

 

 



















Net asset value, end of period

 

$

14.38

 

$

12.78

 

$

14.15

 

$

15.49

 

$

16.35

 

$

15.87

 

 

 



















Market price, end of period

 

$

14.82

 

$

14.00

 

$

15.09

 

$

16.90

 

$

18.40

 

$

15.91

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

20.22

%

 

(2.62

)%

 

(4.12

)%3

 

0.17

%

 

9.18

%

 

9.60

%

 

 



















Based on market price

 

 

13.11

%

 

0.04

%

 

(6.28

)%3

 

(2.89

)%

 

22.56

%

 

16.95

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.23

%

 

1.38

%

 

1.28

%5

 

1.24

%

 

1.27

%

 

1.28

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.13

%

 

1.17

%

 

1.03

%5

 

0.94

%

 

0.91

%

 

0.90

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.13

%

 

1.17

%

 

1.03

%5

 

0.93

%

 

0.89

%

 

0.89

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.12

%

 

1.14

%

 

1.02

%5

 

0.93

%

 

0.89

%

 

0.89

%

 

 



















Net investment income4

 

 

7.42

%

 

8.49

%

 

7.92

%5

 

7.18

%

 

7.31

%

 

7.37

%

 

 



















Dividends to Preferred Shareholders

 

 

0.23

%

 

1.22

%

 

1.94

%5

 

1.86

%

 

1.63

%

 

1.12

%

 

 



















Net investment income to Common Shareholders

 

 

7.19

%

 

7.27

%

 

5.98

%5

 

5.32

%

 

5.68

%

 

6.25

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

109,257

 

$

96,696

 

$

106,596

 

$

116,152

 

$

121,987

 

$

117,739

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

59,100

 

$

59,100

 

$

60,475

 

$

63,800

 

$

63,800

 

$

63,800

 

 

 



















Portfolio turnover

 

 

11

%

 

29

%

 

12

%

 

23

%

 

2

%

 

6

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

71,218

 

$

65,905

 

$

69,083

 

$

70,528

 

$

72,812

 

$

71,142

 

 

 




















 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.





58

ANNUAL REPORT

JULY 31, 2010

 




 

 


 

 

Financial Highlights

BlackRock New York Investment Quality Municipal Trust Inc. (RNY)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

Year Ended October 31,

 

 

 


 

 



 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.81

 

$

13.30

 

$

14.40

 

$

15.18

 

$

15.03

 

$

15.35

 

 

 



















Net investment income

 

 

0.95

1

 

0.95

1

 

0.67

1

 

0.95

 

 

0.97

 

 

0.96

 

Net realized and unrealized gain (loss)

 

 

1.28

 

 

(0.61

)

 

(0.89

)

 

(0.61

)

 

0.37

 

 

(0.26

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.03

)

 

(0.10

)

 

(0.15

)

 

(0.25

)

 

(0.21

)

 

(0.14

)

Net realized gain

 

 

(0.00

)2

 

(0.00

)2

 

(0.04

)

 

(0.01

)

 

(0.02

)

 

 

 

 



















Net increase (decrease) from investment operations

 

 

2.20

 

 

0.24

 

 

(0.41

)

 

0.08

 

 

1.11

 

 

0.56

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.84

)

 

(0.72

)

 

(0.60

)

 

(0.85

)

 

(0.88

)

 

(0.88

)

Net realized gain

 

 

(0.02

)

 

(0.01

)

 

(0.09

)

 

(0.01

)

 

(0.08

)

 

 

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.86

)

 

(0.73

)

 

(0.69

)

 

(0.86

)

 

(0.96

)

 

(0.88

)

 

 



















Net asset value, end of period

 

$

14.15

 

$

12.81

 

$

13.30

 

$

14.40

 

$

15.18

 

$

15.03

 

 

 



















Market price, end of period

 

$

14.70

 

$

12.61

 

$

12.83

 

$

15.39

 

$

16.65

 

$

14.75

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

17.60

%

 

2.71

%

 

(2.98

)%4

 

0.10

%

 

7.32

%

 

3.97

%

 

 



















Based on market price

 

 

24.11

%

 

4.81

%

 

(12.43

)%4

 

(2.46

)%

 

19.95

%

 

8.01

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses5

 

 

1.31

%

 

1.42

%

 

1.48

%6,7

 

1.29

%

 

1.33

%

 

1.24

%

 

 



















Total expenses after fees waived and before fees paid indirectly5

 

 

1.30

%

 

1.41

%

 

1.47

%6,7

 

1.29

%

 

1.33

%

 

1.24

%

 

 



















Total expenses after fees waived and paid indirectly5

 

 

1.30

%

 

1.41

%

 

1.47

%6,7

 

1.24

%

 

1.25

%

 

1.20

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,8

 

 

1.30

%

 

1.41

%

 

1.47

%6,7

 

1.24

%

 

1.25

%

 

1.20

%

 

 



















Net investment income5

 

 

6.92

%

 

7.72

%

 

6.53

%6,7

 

6.42

%

 

6.48

%

 

6.30

%

 

 



















Dividends to Preferred Shareholders

 

 

0.21

%

 

1.14

%

 

1.47

%6

 

1.72

%

 

1.42

%

 

0.91

%

 

 



















Net investment income to Common Shareholders

 

 

6.71

%

 

6.58

%

 

5.06

%6,7

 

4.70

%

 

5.06

%

 

5.39

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

18,577

 

$

16,796

 

$

17,448

 

$

18,848

 

$

19,839

 

$

19,643

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

9,725

 

$

9,725

 

$

9,800

 

$

9,800

 

$

9,800

 

$

9,800

 

 

 



















Portfolio turnover

 

 

35

%

 

24

%

 

8

%

 

37

%

 

24

%

 

10

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

72,758

 

$

68,180

 

$

69,521

 

$

73,090

 

$

75,614

 

$

75,111

 

 

 




















 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

7

Certain non-recurring expenses have been included in the ratio but not annualized. If these expenses were annualized, the ratios of total expenses, total expenses after fees waived and before fees paid indirectly, total expenses after fees waived and paid indirectly, total expenses after fees waived and paid indirectly and excluding interest expense and fees, net investment income and net investment income to Common Shareholders would have been 1.56%, 1.55%, 1.55%, 1.55%, 6.46% and 4.99%, respectively.

 

 

 

 

8

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.





 

ANNUAL REPORT

JULY 31, 2010

59




 

 


 

 

Financial Highlights

BlackRock New York Municipal Income Trust (BNY)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

Year Ended October 31,

 

 

 


 

 



 

 

2010

 

2009

 

 

2007

 

2006

 

2005

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.71

 

$

13.88

 

$

15.11

 

$

15.88

 

$

15.44

 

$

15.28

 

 

 



















Net investment income

 

 

1.04

1

 

1.06

1

 

0.86

1

 

1.11

 

 

1.13

 

 

1.14

 

Net realized and unrealized gain (loss)

 

 

1.54

 

 

(1.22

)

 

(1.17

)

 

(0.70

)

 

0.47

 

 

0.09

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.03

)

 

(0.10

)

 

(0.21

)

 

(0.28

)

 

(0.26

)

 

(0.17

)

 

 



















Net increase (decrease) from investment operations

 

 

2.55

 

 

(0.26

)

 

(0.52

)

 

0.13

 

 

1.34

 

 

1.06

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.99

)

 

(0.91

)

 

(0.71

)

 

(0.90

)

 

(0.90

)

 

(0.90

)

 

 



















Net asset value, end of period

 

$

14.27

 

$

12.71

 

$

13.88

 

$

15.11

 

$

15.88

 

$

15.44

 

 

 



















Market price, end of period

 

$

15.11

 

$

13.95

 

$

15.26

 

$

15.55

 

$

17.35

 

$

15.19

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

20.35

%

 

(1.28

)%

 

(3.71

)%3

 

0.64

%

 

8.91

%

 

7.38

%

 

 



















Based on market price

 

 

16.11

%

 

(1.44

)%

 

2.87

%3

 

(5.20

)%

 

20.95

%

 

15.38

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.25

%

 

1.43

%

 

1.25

%5

 

1.22

%

 

1.25

%

 

1.26

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.16

%

 

1.25

%

 

1.00

%5

 

0.92

%

 

0.88

%

 

0.87

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.16

%

 

1.25

%

 

1.00

%5

 

0.92

%

 

0.87

%

 

0.86

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.11

%

 

1.13

%

 

0.97

%5

 

0.92

%

 

0.87

%

 

0.86

%

 

 



















Net investment income4

 

 

7.50

%

 

8.67

%

 

7.79

%5

 

7.23

%

 

7.30

%

 

7.35

%

 

 



















Dividends to Preferred Shareholders

 

 

0.22

%

 

1.17

%

 

1.91

%5

 

1.84

%

 

1.69

%

 

1.08

%

 

 



















Net investment income to Common Shareholders

 

 

7.28

%

 

7.50

%

 

5.88

%5

 

5.39

%

 

5.61

%

 

6.27

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

182,372

 

$

161,727

 

$

175,927

 

$

190,962

 

$

199,717

 

$

193,457

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

94,500

 

$

94,500

 

$

95,850

 

$

109,750

 

$

109,750

 

$

109,750

 

 

 



















Portfolio turnover

 

 

16

%

 

18

%

 

5

%

 

23

%

 

27

%

 

24

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

73,248

 

$

67,787

 

$

70,892

 

$

68,509

 

$

70,502

 

$

69,073

 

 

 




















 

 

 

 

1

Based on average Common Shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.





60

ANNUAL REPORT

JULY 31, 2010

 




 


 

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock California Investment Quality Municipal Trust Inc. (“RAA”), BlackRock New Jersey Investment Quality Municipal Trust Inc. (“RNJ”) and BlackRock New York Investment Quality Municipal Trust Inc. (“RNY”) are organized as Maryland corporations. BlackRock Investment Quality Municipal Income Trust (“RFA”) is organized as a Massachusetts business trust. RAA, RNJ, RNY and RFA are herein referred to as the “Investment Quality Trusts.” BlackRock California Municipal Income Trust (“BFZ”), BlackRock Municipal Income Investment Trust (“BBF”), BlackRock New Jersey Municipal Income Trust (“BNJ”), BlackRock New York Municipal Income Trust (“BNY”) (collectively, the “Income Trusts”) and BlackRock Florida Municipal 2020 Term Trust (“BFO”) are organized as Delaware statutory trusts. The Investment Quality Trusts, Income Trusts and BFO are referred to herein collectively as the “Trusts.” The Trusts are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as non-diversified, closed-end management investment companies. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Boards of Directors and the Boards of Trustees of the Trusts are referred to throughout this report as the “Board of Trustees” or the “Board.” The Trusts determine, and make available for publication, the net asset value of their Common Shares on a daily basis.

In May 2010, the Board approved the liquidation and dissolution of RAA, which was also approved by shareholders on September 2, 2010. The liquidation of RAA is anticipated to occur on or about September 30, 2010.

Reorganization: The Board and shareholders of BFZ and the Board and shareholders of each of BlackRock California Insured Municipal Income Trust (“BCK”), BlackRock California Municipal Bond Trust (“BZA”) and BlackRock California Municipal Income Trust II (“BCL”) (individually, a “Target Fund” and collectively the “Target Funds”) approved the reorganizations of BCK, BZA and BCL into BFZ, pursuant to which BFZ acquired substantially all of the assets and assumed substantially all of the liabilities of BCK, BZA and BCL in exchange for an equal aggregate value of newly-issued Common Shares and Preferred Shares of BFZ.

Each Common Shareholder of a Target Fund received Common Shares of BFZ in an amount equal to the aggregate net asset value of such Common Shareholder’s Target Fund Common Shares, as determined at the close of business on January 29, 2010, less the costs of the Target Fund’s reorganization (although cash was distributed for any fractional Common Shares).

Each Preferred Shareholder of a Target Fund received Preferred Shares of BFZ in an amount equal to the aggregate liquidation preference of the Target Fund Preferred Shares held by such Preferred Shareholder prior to the Target Fund’s reorganization.

The reorganizations were accomplished by a tax-free exchange of Common Shares and Preferred Shares of BFZ in the following amounts and at the following conversion ratios:

 

 

 

 

 

 

 

 

 

 

 


Common Shares


 

 

Shares
Prior to
Reorganization

 

Conversion
Ratio

 

Shares of
BFZ

 









BCK

 

 

5,278,087

 

 

0.97545266

 

 

5,148,524

 

BZA

 

 

3,409,668

 

 

1.04504339

 

 

3,563,251

 

BCL

 

 

7,999,789

 

 

0.99301332

 

 

7,943,897

 













 

 

 

 

 

 

 

 

 

 

 

Preferred Shares


 

 

Series F-7

 

Series R-7

 

Series T-7

 


BCK

 

 

1,253

 

 

 

 

 

BZA

 

 

898

 

 

 

 

 

BCL

 

 

 

 

931

 

 

931

 












Each Target Fund’s net assets and composition of net assets on January 29, 2010, the date of the merger, were as follows:

 

 

 

 

 

 

 

 

 

 

 












 

 

Net Assets
Applicable to
Common
Shareholders

 

Preferred
Shares at
Liquidation
Preference

 

Paid in
Capital

 









BCK

 

$

70,787,151

 

$

31,325,000

 

$

74,722,726

 

BZA

 

$

48,990,979

 

$

22,450,000

 

$

48,275,547

 

BCL

 

$

109,220,636

 

$

46,550,000

 

$

113,337,925

 













 

 

 

 

 

 

 

 

 

 

 









 

 

Undistributed
Net
Investment
Income

 

Accumulated
Net
Realized
Loss

 

Net
Unrealized
Appreciation/
Depreciation

 









BCK

 

$

13,660

 

$

(2,517,189

)

$

(1,432,046

)

BZA

 

$

8,847

 

$

(560,343

)

$

1,266,928

 

BCL

 

$

67,073

 

$

(7,251,617

)

$

3,067,255

 












For financial reporting purposes, assets received and shares issued by BFZ were recorded at fair value; however, the cost basis of the investments received from the Target Funds were carried forward to align ongoing reporting of BFZ’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The aggregate net assets of BFZ immediately after the acquisition amounted to $437,406,830. Each Target Fund’s fair value and cost of investments prior to the reorganization were as follows:

 

 

 

 

 

 

 

 







 

 

Fair Value of
Investments

 

Cost of
Investments

 







BCK

 

$

108,191,823

 

$

109,623,869

 

BZA

 

$

76,672,439

 

$

75,405,511

 

BCL

 

$

175,462,460

 

$

172,395,205

 









The purpose of these transactions was to combine four funds managed by the Manager with the same or substantially similar (but not identical) investment objectives, investment policies, strategies, risks and restrictions. Each reorganization was a tax-free event and was effective on February 1, 2010.

 

 

 

 





 

ANNUAL REPORT

JULY 31, 2010

61




 


 

Notes to Financial Statements (continued)

In connection with the reorganizations, BFZ’s investment advisory fee was reduced by 2 basis points, from 0.60% of BFZ’s average weekly net assets to 0.58% of BFZ’s average weekly net assets as defined in Note 3. In addition to this reduction, BFZ’s contractual investment advisory fee waiver, as a percentage of average weekly net assets, was extended for an additional two years as follows: (i) 0.05% through December 31, 2010, (ii) 0.03% through December 31, 2011 and (iii) 0.01% through December 31, 2012.

Assuming the acquisition had been completed on August 1, 2009, the beginning of the annual reporting period of BFZ, the pro forma results of operations for the year ended July 31, 2010, are as follows:

 

 

Net investment income: $30,885,392

 

 

Net realized and change in unrealized gain on investments: $41,142,437

 

 

Dividends to Preferred Shareholders from net investment income: $(711,091)

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations: $71,316,738

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of BFZ that have been included in BFZ’s Statement of Operations since January 29, 2010.

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

Valuation: The Trusts fair value their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Forward Commitments and When-Issued Delayed Delivery Securities: The Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Trusts may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Trusts assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Trusts’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown on the Schedules of Investments, if any.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Trusts leverage their assets through the use of tender option bond trusts (“TOBs”). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Trust has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Trust include the right of a Trust (1) to cause the holders of a proportional share of the short-term floating rate certificates to tender their certificates at par, including during instances of a rise in short-term interest rates, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to a Trust. The TOB may also be terminated without the consent of a Trust upon the occurrence of certain events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond or the inability to remarket the short-term floating rate certificates to third party investors.

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to a Trust, which typically invests the cash in additional municipal bonds. Each Trust’s transfer of the municipal bonds to a TOB is accounted for as a secured borrowing, therefore the municipal bonds deposited into a TOB are presented in the Trusts’ Schedules of Investments and the proceeds from the issuance of the short-term floating rate certificates are shown as trust certificates in the Statements of Assets and Liabilities.

Interest income from the underlying municipal bonds are recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are shown as interest expense and fees in the Statements of Operations. The short-term floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At July 31, 2010, the aggregate value of the underlying municipal bonds transferred to TOBs, the

 

 

 

 





62

ANNUAL REPORT

JULY 31, 2010

 




 


 

Notes to Financial Statements (continued)

related liability for trust certificates and the range of interest rates on the liability for trust certificates were as follows:

 

 

 

 

 

 

 

 

 

 

 


 

 

Underlying
Municipal
Bonds
Transferred
to TOBs

 

Liability
for Trust
Certificates

 

Range of
Interest
Rates

 


RAA

 

$

2,201,108

 

$

1,232,884

 

 

0.27% – 0.28%

 

BFZ

 

$

244,032,757

 

$

128,064,620

 

 

0.27% – 0.33%

 

BFO

 

$

8,650,078

 

$

4,371,570

 

 

0.33% – 0.43%

 

RFA

 

$

7,528,449

 

$

4,013,909

 

 

0.28% – 0.43%

 

BBF

 

$

49,283,101

 

$

26,262,401

 

 

0.28% – 0.29%

 

RNJ

 

$

247,448

 

$

159,917

 

 

0.34%

 

BNJ

 

$

4,190,251

 

$

2,359,296

 

 

0.28% – 0.34%

 

RNY

 

$

1,149,567

 

$

569,974

 

 

0.27% – 0.28%

 

BNY

 

$

26,577,853

 

$

13,409,681

 

 

0.27% – 0.34%

 












For the year ended July 31, 2010, the Trusts’ average trust certificates outstanding and the daily weighted average interest rate, including fees, were as follows:

 

 

 

 

 

 

 

 







 

 

Average
Trust Certificates
Outstanding

 

Daily Weighted
Average
Interest Rate

 







RAA

 

$

1,232,884

 

0.75

%

 

BFZ

 

$

78,072,366

 

0.74

%

 

BFO

 

$

4,494,126

 

0.74

%

 

RFA

 

$

3,628,670

 

0.80

%

 

BBF

 

$

23,307,669

 

0.80

%

 

RNJ

 

$

159,917

 

0.82

%

 

BNJ

 

$

1,384,021

 

0.82

%

 

RNY

 

$

140,029

 

0.79

%

 

BNY

 

$

11,755,715

 

0.74

%

 









Should short-term interest rates rise, the Trusts’ investments in TOBs may adversely affect the Trusts’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market values of municipal bonds deposited into the TOB may adversely affect the Trusts’ net asset values per share.

Zero-Coupon Bonds: The Trusts may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

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

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income, including amortization of premium and accretion of discount on debt securities, is recognized on the accrual basis. Dividend income is recorded on the ex-dividend dates.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 7.

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

Each Trust files US federal and various state and local tax returns. No income tax returns are currently under examination. The statutes of limitations on Investment Quality Trusts’ and Income Trusts’ US federal tax returns remains open for each of the two years ended July 31, 2010 and 2009, and the period ended July 31, 2008 and the year ended October 31, 2007. The statutes of limitations on BFO’s US federal tax returns remain open for the two years ended July 31, 2010 and 2009, the period ended July 31, 2008 and the year ended December 31, 2007. The statutes of limitations on the Trusts’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. There are no uncertain tax positions that require recognition of a tax liability.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trust’s Board, non-interested Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees. This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Each Trust may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees in order to match its deferred compensation obligations. Investments to cover each Trust’s deferred compensation liability, if any, are included in other assets in the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a Trust are charged to the Trust. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. The Trusts have an arrangement with the custodian whereby fees may be reduced

 

 

 

 





 

ANNUAL REPORT

JULY 31, 2010

63




 


 

Notes to Financial Statements (continued)

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

The proposed reorganization of RAA failed to receive sufficient Common Shareholder votes to approve the reorganization. The expenses involving the proposed reorganization were charged to RAA and are shown in the Statements of Operations as reorganization costs.

2. Derivative Financial Instruments:

The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and to economically hedge, or protect, their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange.

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

Financial Futures Contracts: The Trusts purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Trusts as unrealized gains or losses. When the contract is closed, the Trusts record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures transactions involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Instruments Categorized by Risk Exposure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

 

Fair Values of Derivative Instruments as of July 31, 2010

 

 

 

 

 

 

 

 

 

 


















 

 

 

Liabilities Derivatives

 

 
















 

 

 

 

 

RAA

 

BFZ

 

RNY

 

BNY

 

 

 












 

 

 

Statement of Assets and
Liabilities Location

 

 

Value

 









Interest rate contracts

 

 

Net unrealized appreciation/depreciation*

 

$

2,143

 

$

40,714

 

$

5,134

 

$

47,488

 



















 

 

 

 

*

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



The Effect of Derivative Instruments on the Statement of Operations
Year Ended July 31, 2010

 





 

 

Net Realized Gain (Loss) from

 

 

 



 

 

RAA

 

BFZ

 

RFA

 

BBF

 

RNJ

 

BNJ

 

RNY

 

BNY

 

 

 

















Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

$

(1,120

)

$

(43,727

)

$

1,632

 

$

11,423

 

$

1,632

 

$

12,059

 

$

2,773

 

$

2,764

 




























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Change in Unrealized
Appreciation/Depreciation on

 

 

 









 

 

RAA

 

BFZ

 

RNY

 

BNY

 











Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

$

(2,143

)

$

(40,714

)

$

(5,134

)

$

(47,488

)















For the year ended July 31, 2010, the average quarterly balance of outstanding derivative financial instruments was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



















 

 

RAA

 

BFZ

 

RFA

 

BBF

 

RNJ

 

BNJ

 

RNY

 

BNY

 



























Financial futures contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of contracts purchased

 

 

 

 

 

 

1

 

 

2

 

 

1

 

 

2

 

 

 

 

 

Average number of contracts sold

 

 

1

 

 

5

 

 

1

 

 

2

 

 

1

 

 

2

 

 

1

 

 

9

 

Average notional value of contracts purchased

 

 

 

 

 

$

28,751

 

$

201,254

 

$

28,751

 

$

201,254

 

 

 

 

 

Average notional value of contracts sold

 

$

30,418

 

$

577,931

 

$

30,460

 

$

213,223

 

$

30,460

 

$

243,683

 

$

122,529

 

$

1,133,394

 




























 

 

 

 


64

ANNUAL REPORT

JULY 31, 2010

 




 


 

Notes to Financial Statements (continued)

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate of the Trusts for 1940 Act purposes, but BAC and Barclays are not.

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Trusts’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Trust’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Trust. For such services, each Trust pays the Manager a monthly fee at the following annual rates of each Trust’s average weekly net assets as follows:

 

 

 

 

 






RAA

 

 

0.35

%

BFZ

 

 

0.58

%

BFO

 

 

0.50

%

RFA

 

 

0.35

%

BBF

 

 

0.60

%

RNJ

 

 

0.35

%

BNJ

 

 

0.60

%

RNY

 

 

0.35

%

BNY

 

 

0.60

%






Average weekly net assets is the average weekly value of each Trust’s total assets minus the sum of its accrued liabilities.

The Manager contractually agreed to waive a portion of the investment advisory fee on the Income Trusts at an annual rate of 0.05% of average daily net assets through July 31, 2010. For the year ended July 31, 2010, the Manager waived the following amounts, which are included in fees waived by advisor in the Statements of Operations:

 

 

 

 

 






BFZ

 

$

262,653

 

BBF

 

$

73,691

 

BNJ

 

$

82,376

 

BNY

 

$

140,849

 






The Manager voluntarily agreed to waive its advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds, however, the Manager does not waive its advisory fees by the amount of investment advisory fees paid through its investment in other affiliated investment companies, if any. These amounts are shown as, or included in, fees waived by advisor in the Statements of Operations. For the year ended July 31, 2010, the amounts waived were as follows:

 

 

 

 

 






RAA

 

$

1,367

 

BFZ

 

$

21,639

 

BFO

 

$

4,367

 

RFA

 

$

327

 

BBF

 

$

3,279

 

RNJ

 

$

2,725

 

BNJ

 

$

17,094

 

RNY

 

$

839

 

BNY

 

$

7,525

 






Each Investment Quality Trust has an Administration Agreement with the Manager. The administration fee paid to the Manager is computed weekly and payable monthly based on an annual rate of 0.10% of each respective Trust’s average weekly net assets for the Investment Quality Trusts.

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

For the year ended July 31, 2010, certain Trusts reimbursed the Manager for certain accounting services, which are included in accounting services in the Statements of Operations. The reimbursements were as follows:

 

 

 

 

 






BFZ

 

$

10,106

 

BFO

 

$

2,429

 

BBF

 

$

2,862

 

BNJ

 

$

3,177

 

BNY

 

$

5,479

 






Certain officers and/or trustees of the Trusts are officers and/or directors of BlackRock or its affiliates. The Trusts reimburse the Manager for compensation paid to the Trusts’ Chief Compliance Officer.

4. Investments:

Purchases and sales of investments excluding short-term securities for the year ended July 31, 2010, were as follows:

 

 

 

 

 

 

 

 







 

 

Purchases

 

Sales

 







RAA

 

$

11,347,922

 

$

10,189,098

 

BFZ

 

$

273,731,091

 

$

237,104,762

 

BFO

 

$

7,984,773

 

$

12,300,489

 

RFA

 

$

10,205,844

 

$

9,453,154

 

BBF

 

$

70,725,850

 

$

65,249,542

 

RNJ

 

$

4,749,314

 

$

4,227,696

 

BNJ

 

$

24,499,533

 

$

17,831,041

 

RNY

 

$

10,133,561

 

$

9,657,408

 

BNY

 

$

47,814,686

 

$

43,676,874

 










 

 

 

 


 

ANNUAL REPORT

JULY 31, 2010

65




 


 

Notes to Financial Statements (continued)

5. Income Tax Information:

Reclassifications: US GAAP require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of July 31, 2010 attributable to amortization methods on fixed income securities, non-deductible expenses and tax classification of distributions received from a regulated investment company were reclassified to the following accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























 

 

RAA

 

BFZ

 

BFO

 

RFA

 

BBF

 

BNJ

 

RNY

 

BNY

 



















Paid-in capital

 

$

(101,300

)

$

(181,321

)

 

 

 

 

 

 

 

 

 

 

 

 

Undistributed net investment income

 

$

101,300

 

$

203,158

 

$

618

 

$

56

 

$

(535

)

$

(3

)

$

(2

)

$

(366

)

Accumulated net realized loss

 

 

 

$

(21,837

)

$

(618

)

$

(56

)

$

535

 

$

3

 

$

2

 

$

366

 



























The tax character of distributions paid during the fiscal years ended July 31, 2010 and July 31, 2009 was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















 

 

RAA

 

BFZ

 

BFO

 

RFA

 

BBF

 

RNJ

 

BNJ

 

RNY

 

BNY

 






























Tax-exempt income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7/31/2010

 

$

673,634

 

$

21,828,779

 

$

3,915,452

 

$

950,664

 

$

6,194,430

 

$

812,685

 

$

7,305,656

 

$

1,134,990

 

$

12,989,801

 

7/31/2009

 

 

701,717

 

 

14,514,352

 

 

4,272,509

 

 

763,851

 

 

6,810,822

 

 

777,465

 

 

8,174,670

 

 

1,125,603

 

 

13,424,262

 

Ordinary income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7/31/2010

 

 

5,092

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35,317

 

 

 

7/31/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

516

 

 

 

Long-term capital gains 7/31/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,508

 

 

 






























Total distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7/31/2010

 

$

678,726

 

$

21,828,779

 

$

3,915,452

 

$

950,664

 

$

6,194,430

 

$

812,685

 

$

7,305,656

 

$

1,170,307

 

$

12,989,801

 

 

 




























7/31/2009

 

$

701,717

 

$

14,514,352

 

$

4,272,509

 

$

763,851

 

$

6,810,822

 

$

777,465

 

$

8,174,670

 

$

1,135,627

 

$

13,424,262

 

 

 




























As of July 31, 2010, the tax components of accumulated net earnings (losses) were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















 

 

RAA

 

BFZ

 

BFO

 

RFA

 

BBF

 

RNJ

 

BNJ

 

RNY

 

BNY

 





















Undistributed tax-exempt income

 

$

252,682

 

$

3,906,343

 

$

3,196,834

 

$

151,390

 

$

603,898

 

$

203,293

 

$

1,726,849

 

$

292,915

 

$

3,608,454

 

Undistributed ordinary income

 

 

2,605

 

 

32,759

 

 

394

 

 

1,138

 

 

910

 

 

464

 

 

21,115

 

 

393

 

 

1,715

 

Capital loss carryforwards

 

 

(667,827

)

 

(24,285,610

)

 

(521,006

)

 

(2,092,575

)

 

(8,669,454

)

 

(569,206

)

 

(2,002,603

)

 

 

 

(4,736,865

)

Net unrealized gains/losses*

 

 

1,069,446

 

 

23,229,277

 

 

1,361,075

 

 

776,050

 

 

6,173,688

 

 

(72,043

)

 

1,560,227

 

 

535,667

 

 

2,065,108

 

 

 




























Total

 

$

656,906

 

$

2,882,769

 

$

4,037,297

 

$

(1,163,997

)

$

(1,890,958

)

$

(437,492

)

$

1,305,588

 

$

828,975

 

$

938,412

 

 

 





























 

 

 

 

*

The differences between book-basis and tax-basis net unrealized losses were attributable primarily to the tax deferral of losses on wash sales, amortization methods for premiums and discounts on fixed income securities, the accrual of income on securities in default, the realization for tax purposes of unrealized gains (losses) on certain futures contracts, the deferral of post-October capital losses for tax purposes, the timing and recognition of partnership income, tax treatment of residual interests in tender option bond trusts and the deferral of compensation to trustees.

As of July 31, 2010, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



















Expires

 

RAA

 

BFZ

 

BFO

 

RFA

 

BBF

 

RNJ

 

BNJ

 

BNY

 



















2011

 

 

 

$

3,224,992

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

 

 

 

2,050,253

 

 

 

 

 

$

518,297

 

 

 

$

3,833

 

$

151,220

 

2014

 

 

 

 

1,681,553

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

 

465,742

 

 

 

$

137,267

 

 

426,674

 

 

 

 

592,744

 

 

 

2016

 

$

71,669

 

 

186,028

 

 

 

 

389,530

 

 

866,417

 

$

223,484

 

 

15,502

 

 

505,354

 

2017

 

 

 

 

3,782,460

 

$

521,006

 

 

299,461

 

 

 

 

 

 

 

 

2,599,716

 

2018

 

 

596,158

 

 

12,894,582

 

 

 

 

1,266,317

 

 

6,858,066

 

 

345,722

 

 

1,390,524

 

 

1,480,575

 

 

 

























Total

 

$

667,827

 

$

24,285,610

 

$

521,006

 

$

2,092,575

 

$

8,669,454

 

$

569,206

 

$

2,002,603

 

$

4,736,865

 

 

 

























6. Concentration, Market and Credit Risk:

Each Trust invests a substantial amount of its assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states.

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

In the normal course of business, the Trusts invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Trusts may be exposed to counterparty credit risk, or the risk

 

 

 

 


66

ANNUAL REPORT

JULY 31, 2010

 




 


 

Notes to Financial Statements (continued)

that an entity with which the Trusts have unsettled or open transactions may fail to or be unable to perform on its commitments. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Trusts’ Statements of Assets and Liabilities, less any collateral held by the Trusts.

RAA, BFZ and BFO invest a significant portion of their assets in securities in the County/City/Special District/School District and Utilities sectors. BBF invests a significant portion of its assets in securities in the Health and Utilities sectors. BNJ invests a significant portion of its assets in securities in the County/City/Special District/School District sector. Changes in economic conditions affecting the Utilities, County/City/Special District/School District, Transportation, Health, State and Housing sectors would have a greater impact on the Trusts and could affect the value, income and/or liquidity of positions in such securities.

7. Capital Share Transactions:

Each Investment Quality Trust is authorized to issue 200 million shares, including Preferred Shares, par value $0.01 per share, all of which were initially classified as Common Shares. There are an unlimited number of $0.001 par value Common Shares authorized for the Income Trusts and BFO. Each Trust’s Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders. At July 31, 2010, Common Shares of BFO owned by affiliates of the Manager was 8,028 shares.

Common Shares

During the years ended July 31, 2010 and 2009, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

 

 

 

 

 

 

 







 

 

Year Ended
July 31,
2010

 

Year Ended
July 31,
2009

 









BFZ

 

 

10,114

 

 

8,447

 

RFA

 

 

551

 

 

 

BBF

 

 

3,240

 

 

887

 

RNJ

 

 

2,699

 

 

562

 

BNJ

 

 

28,026

 

 

36,407

 

RNY

 

 

1,225

 

 

 

BNY

 

 

50,502

 

 

48,952

 









Shares issued and outstanding remained constant for the year ended July 31, 2010 and the year ended July 31, 2009 for RAA and BFO.

Preferred Shares

The Preferred Shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trust’s Articles of Amendment/Statement of Preferences (the “Governing Instrument”) are not satisfied.

From time to time in the future, each Trust may effect repurchases of its Preferred Shares at prices below their liquidation preference as agreed upon by the Trust and seller. Each Trust also may redeem its Preferred Shares from time to time as provided in the applicable Governing Instrument. Each Trust intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

The Trusts had the following series of Preferred Shares outstanding, effective yields and reset frequency as of July 31, 2010:

 

 

 

 

 

 

 

 

 

 

 












 

 

Series

 

Preferred
Shares

 

Effective
Yield

 

Reset
Frequency
Days

 












RAA

 

 

W7

 

237

 

0.43

%

7

 

BFZ

 

 

F7

 

2,151

 

0.44

%

7

 

 

 

 

R7

 

2,351

 

0.41

%

7

 

 

 

 

T7

 

2,351

 

0.43

%

7

 

BFO

 

 

F7

 

1,716

 

0.44

%

7

 

RFA

 

 

R7

 

183

 

0.41

%

7

 

BBF

 

 

T7

 

1,370

 

0.43

%

7

 

RNJ

 

 

T7

 

276

 

0.43

%

7

 

BNJ

 

 

R7

 

2,364

 

0.41

%

7

 

RNY

 

 

F7

 

389

 

0.44

%

7

 

BNY

 

 

F7

 

1,890

 

0.44

%

7

 

 

 

 

W7

 

1,890

 

0.43

%

7

 












Dividends on seven-day Preferred Shares are cumulative at a rate, which is reset every seven days based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, each Trust is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on all series of Preferred Shares is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. The low, high and average dividend rates

 

 

 

 





 

ANNUAL REPORT

JULY 31, 2010

67




 


 

Notes to Financial Statements (concluded)

on the Preferred Shares for each Trust for the year ended July 31, 2010 were as follows:

 

 

 

 

 

 

 

 

 

 

 












 

 

Series

 

Low

 

High

 

 

Average

 












RAA

 

  W7

 

0.26

%

0.58

%

 

0.42

%

BFZ

 

  F7

 

0.27

%

0.49

%

 

0.40

%

 

 

  R7

 

0.24

%

0.58

%

 

0.41

%

 

 

  T7

 

0.26

%

0.58

%

 

0.42

%

BFO

 

  F7

 

0.24

%

0.58

%

 

0.42

%

RFA

 

  R7

 

0.24

%

0.58

%

 

0.40

%

BBF

 

  T7

 

0.26

%

0.58

%

 

0.42

%

RNJ

 

  T7

 

0.26

%

0.58

%

 

0.42

%

BNJ

 

  R7

 

0.24

%

0.58

%

 

0.41

%

RNY

 

  F7

 

0.24

%

0.58

%

 

0.41

%

BNY

 

  F7

 

0.24

%

0.58

%

 

0.41

%

 

 

  W7

 

0.26

%

0.58

%

 

0.42

%












Since February 13, 2008, the Preferred Shares of the Trusts failed to clear any of their auctions. As a result, the Preferred Shares dividend rates were reset to the maximum applicable rate, which ranged from 0.24% to 0.58% for the year ended July 31, 2010. A failed auction is not an event of default for the Trusts but it has a negative impact on the liquidity of Preferred Shares. A failed auction occurs when there are more sellers of a Trust’s auction rate preferred shares than buyers. A successful auction for the Trusts’ Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, Preferred Shareholders may not have the ability to sell the Preferred Shares at their liquidation preference.

The Trusts may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%.

The Trusts pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions and 0.15% on the aggregate principal amount of all shares that fail to clear their auctions. Certain broker dealers have individually agreed to reduce commissions for failed auctions.

During the year ended July 31, 2009, certain Trusts announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:

 

 

 

 

 

 

 

 

 

 

 

 













 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 













RAA

 

  W7

 

7/09/09

 

36

 

 

$

900,000

 

BFZ

 

  R7

 

7/10/09

 

598

 

 

$

14,950,000

 

 

 

  T7

 

7/08/09

 

598

 

 

$

14,950,000

 

RFA

 

  R7

 

7/10/09

 

102

 

 

$

2,550,000

 

BBF

 

  T7

 

7/08/09

 

612

 

 

$

15,300,000

 

RNJ

 

  T7

 

7/08/09

 

7

 

 

$

175,000

 

BNJ

 

  R7

 

7/10/09

 

55

 

 

$

1,375,000

 

RNY

 

  F7

 

7/13/09

 

3

 

 

$

75,000

 

BNY

 

  F7

 

7/13/09

 

27

 

 

$

675,000

 

 

 

  W7

 

7/09/09

 

27

 

 

$

675,000

 













The Trusts financed the Preferred Share redemptions with cash received from TOB transactions.

Preferred Shares issued and outstanding remained constant for the year ended July 31, 2010 for all Trusts, except BFZ.

8. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through the date the financial statements were issued and the following items were noted:

Each Trust paid a net investment income dividend on September 1, 2010 to Common Shareholders of record on August 16, 2010 as follows:

 

 

 

 

 






 

 

Common Dividend
Per Share

 





RAA

 

$

0.058000

 

BFZ

 

$

0.075700

 

BFO

 

$

0.056000

 

RFA

 

$

0.070000

 

BBF

 

$

0.075375

 

RNJ

 

$

0.065500

 

BNJ

 

$

0.077600

 

RNY

 

$

0.073000

 

BNY

 

$

0.082500

 






RAA paid a tax-exempt income distribution on September 29, 2010 to Common Shareholders of record on September 15, 2010 in the amount of $0.220000 per share.

As described in Note 1, the Board approved a proposal to liquidate and dissolve RAA, which was approved by shareholders on September 2, 2010. Trading of RAA on the NYSE Amex was suspended at the opening of trading on September 13, 2010. RAA’s investments were liquidated on September 24, 2010. On or about September 30, 2010, the Preferred Shareholders are expected to have their Auction Market Preferred Shares redeemed at their liquidation value plus any accrued but unpaid dividends and Common Shareholders are expected to receive substantially all of the remaining assets of the Trust in a cash distribution.

The dividends declared on Preferred Shares for the period August 1, 2010 to August 31, 2010 were as follows:

 

 

 

 

 

 

 








 

 

Series

 

Dividends
Declared

 







RAA

 

  W7

 

$

2,055

 

BFZ

 

  F7

 

$

18,157

 

 

 

  R7

 

$

20,057

 

 

 

  T7

 

$

20,435

 

BFO

 

  F7

 

$

14,478

 

RFA

 

  R7

 

$

1,561

 

BBF

 

  T7

 

$

11,909

 

RNJ

 

  T7

 

$

2,399

 

BNJ

 

  R7

 

$

20,168

 

RNY

 

  F7

 

$

3,517

 

BNY

 

  F7

 

$

15,946

 

 

 

  W7

 

$

16,388

 









 

 

 

 





68

ANNUAL REPORT

JULY 31, 2010

 




 


 

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of
BlackRock California Investment Quality Municipal Trust Inc.
BlackRock New Jersey Investment Quality Municipal Trust Inc. and
BlackRock New York Investment Quality Municipal Trust Inc.
and to the Shareholders and Board of Trustees of
BlackRock California Municipal Income Trust
BlackRock Florida Municipal 2020 Term Trust
BlackRock Investment Quality Municipal Income Trust
BlackRock Municipal Income Investment Trust
BlackRock New Jersey Municipal Income Trust and
BlackRock New York Municipal Income Trust (collectively the “Trusts”):

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of BlackRock California Investment Quality Municipal Trust Inc., BlackRock Florida Municipal 2020 Term Trust, BlackRock New Jersey Investment Quality Municipal Trust Inc., BlackRock New Jersey Municipal Income Trust, BlackRock New York Investment Quality Municipal Trust Inc., and BlackRock New York Municipal Income Trust as of July 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. We have also audited the accompanying statements of assets and liabilities, including the schedules of investments, of BlackRock California Municipal Income Trust, BlackRock Investment Quality Municipal Income Trust and BlackRock Municipal Income Investment Trust as of July 31, 2010, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trusts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2010, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of BlackRock California Investment Quality Municipal Trust Inc., BlackRock Florida Municipal 2020 Term Trust, BlackRock New Jersey Investment Quality Municipal Trust Inc., BlackRock New Jersey Municipal Income Trust, BlackRock New York Investment Quality Municipal Trust Inc., and BlackRock New York Municipal Income Trust as of July 31, 2010, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of BlackRock California Municipal Income Trust, BlackRock Investment Quality Municipal Income Trust, and BlackRock Municipal Income Investment Trust as of July 31, 2010, the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

As described in Notes 1 and 8 to the Financial Statements, the liquidation of BlackRock California Investment Quality Municipal Trust Inc. is expected to occur on or about September 30, 2010.

Deloitte & Touche LLP
Princeton, New Jersey
September 28, 2010

 


Important Tax Information (Unaudited)


The following table summarizes the taxable per share distributions paid by RAA and RNY during the taxable year ended July 31, 2010:

 

 

 

 

 

 

 








RAA

 

Payable Date

 

Ordinary Income

 







Common Shareholders

 

12/31/09

 

$

0.004623

 

Preferred Shareholders:

 

 

 

 

 

 

Series W-7

 

11/27/09

 

$

1.84

 








RNY

 

 

 

 

 

 








Common Shareholders

 

12/31/09

 

$

0.024871

 

Preferred Shareholders:

 

 

 

 

 

 

Series F-7

 

11/09/09

 

$

3.64

 

Series F-7

 

11/16/09

 

$

3.10

 

Series F-7

 

11/23/09

 

$

0.17

 







All other net investment income distributions paid by RAA and RNY during the taxable year ended July 31, 2010 qualify as tax-exempt interest dividends for federal income tax purposes.

All of the net investment income distributions paid by BFZ, BFO, RFA, BBF, RNJ, BNJ and BNY during the taxable year ended July 31, 2010 qualify as tax-exempt interest dividends for federal income tax purposes.

 

 

 

 





 

ANNUAL REPORT

JULY 31, 2010

69




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors and the Board of Trustees, as the case may be (each, a “Board,” and, collectively, the “Boards,” and the members of which are referred to as “Board Members”) of each of BlackRock California Investment Quality Municipal Trust, Inc. (“RAA”), BlackRock California Municipal Income Trust (“BFZ”), BlackRock Florida Municipal 2020 Term Trust (“BFO”), BlackRock Investment Quality Municipal Income Trust (“RFA”), BlackRock Municipal Income Investment Trust (“BBF”), BlackRock New Jersey Investment Quality Municipal Trust, Inc. (“RNJ”), BlackRock New Jersey Municipal Income Trust (“BNJ”), BlackRock New York Investment Quality Municipal Trust, Inc. (“RNY”) and BlackRock New York Municipal Income Trust (“BNY” and, together with RAA, BFZ, BFO, RFA, BBF, RNJ, BNJ and RNY, each a “Fund,” and, collectively, the “Funds”) met on April 8, 2010 and May 13 – 14, 2010 to consider the approval of each Fund’s investment advisory agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. Each Board also considered the approval of the sub-advisory agreement (each, a “Sub-Advisory Agreement”) between the Manager and BlackRock Financial Management, Inc. (the “Sub-Advisor”) with respect to its Fund. The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements are referred to herein as the “Agreements.”

Activities and Composition of the Board

The Board of each Fund consists of ten individuals, eight of whom are not “interested persons” of such Fund as defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of each Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chairman of the Boards is an Independent Board Member. The Boards have established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member) and is chaired by an Independent Board Member. The Boards also have two ad hoc committees, the Joint Product Pricing Committee, which consists of Independent Board Members and the directors/trustees of the boards of certain other BlackRock managed funds, who are not “interested persons” of their respective funds, and the Ad Hoc Committee on Auction Market Preferred Shares.

The Agreements

Pursuant to the 1940 Act, the Boards are required to consider the continuation of the Agreements on an annual basis. In connection with this process, the Boards assessed, among other things, the nature, scope and quality of the services provided to the Funds by the personnel of BlackRock and its affiliates, including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services and assistance in meeting applicable legal and regulatory requirements. From time to time throughout the year, each Board, acting directly and through its committees, considered at each of its meetings factors that are relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the respective Fund and its shareholders. Among the matters the Board considered were: (a) investment performance for one-, three- and five-year periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management’s and portfolio managers’ analysis of the reasons for any over performance or underperformance against a Fund’s peers and/or benchmark, as applicable; (b) fees, including advisory, and administration for RAA, RFA, RNJ and RNY, and other amounts paid to BlackRock and its affiliates by each Fund for services such as call center and fund accounting; (c) each Fund’s operating expenses; (d) the resources devoted to and compliance reports relating to each Fund’s investment objective, policies and restrictions; (e) each Fund’s compliance with its Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls; (h) BlackRock’s implementation of the proxy voting policies approved by the Boards; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; (k) an analysis of contractual and actual management fees for products with similar investment objectives across the open-end fund, closed-end fund and institutional account product channels, as applicable; and (l) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 8, 2010 meeting, the Boards requested and received materials specifically relating to the Agreements. The Boards are engaged in a process with BlackRock to periodically review the nature and scope of the information provided to better assist their deliberations. The materials provided in connection with the April meeting included: (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on Fund fees and expenses, and the investment performance of each Fund as compared with a peer group of funds as determined by Lipper and a customized peer group selected by BlackRock, as applicable (collectively, “Peers”); (b) information on the profitability of the Agreements to BlackRock and a discussion of fall-out benefits to BlackRock and its affiliates and significant shareholders; (c) a general analysis provided by BlackRock concerning investment advisory fees charged to other clients, such as institutional clients and open-end funds, under similar investment mandates; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by each Fund to BlackRock; and (f) if applicable, a comparison of management fees to similar BlackRock closed-end funds, as classified by Lipper.

At an in-person meeting held on April 8, 2010, the Boards reviewed materials relating to their consideration of the Agreements. As a result of the discussions that occurred during the April 8, 2010 meeting, the Boards presented BlackRock with questions and requests for additional information and BlackRock responded to these requests with additional written information in advance of the May 13 – 14, 2010 Board meeting.

 

 

 

 





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Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

At an in-person meeting held on May 13 – 14, 2010, each Fund’s Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and each respective Fund and the Sub-Advisory Agreement between the Manager and the Sub-Advisor with respect to each Fund, each for a one-year term ending June 30, 2011. In approving the continuation of the Agreements, the Boards considered: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund and BlackRock; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and its affiliates from their relationship with each Fund; (d) economies of scale; and (e) other factors deemed relevant by the Board Members.

The Boards also considered other matters they deemed important to the approval process, such as services related to the valuation and pricing of each Fund’s portfolio holdings, direct and indirect benefits to BlackRock and its affiliates and significant shareholders from their relationship with each Fund and advice from independent legal counsel with respect to the review process and materials submitted for the Boards’ review. The Boards noted the willingness of BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as controlling, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Boards, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of each Fund. Throughout the year, the Boards compared each Fund’s performance to the performance of a comparable group of closed-end funds, and the performance of a relevant benchmark, if any. The Boards met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. The Boards also reviewed the materials provided by each Fund’s portfolio management team discussing each Fund’s performance and each Fund’s investment objective, strategies and outlook.

The Boards considered, among other factors, the number, education and experience of BlackRock’s investment personnel generally and each Fund’s portfolio management team, investments by portfolio managers in the funds they manage, BlackRock’s portfolio trading capabilities, BlackRock’s use of technology, BlackRock’s commitment to compliance, BlackRock’s credit analysis capabilities, BlackRock’s risk analysis capabilities and BlackRock’s approach to training and retaining portfolio managers and other research, advisory and management personnel. The Boards also reviewed a general description of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent.

In addition to advisory services, the Boards considered the quality of the administrative and non-investment advisory services provided to each Fund. BlackRock and its affiliates and significant shareholders provide each Fund with certain administrative and other services (in addition to any such services provided to each Fund by third parties) and officers and other personnel as are necessary for the operations of each Fund. In addition to investment advisory services, BlackRock and its affiliates provide each Fund with other services, including: (i) preparing disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of each Fund; (iii) assisting with daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; and (viii) performing other administrative functions necessary for the operation of each Fund, such as tax reporting, fulfilling regulatory filing requirements, and call center services. The Boards reviewed the structure and duties of BlackRock’s fund administration, accounting, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: The Boards, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the April 8, 2010 meeting, the Boards were provided with reports, independently prepared by Lipper, which included a comprehensive analysis of each Fund’s performance. The Boards also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In connection with their review, the Boards received and reviewed information regarding the investment performance of each Fund as compared to a representative group of similar funds as determined by Lipper and to all funds in each Fund’s applicable Lipper category and in the case of RAA, BFZ, RFA, BBF, RNY and BNY, a customized peer group selected by BlackRock. The Boards were provided with a description of the methodology used by Lipper to select peer funds. The Boards regularly review the performance of each Fund throughout the year.

The Boards of BFZ, BNJ, RNY and BNY noted that, in general, BFZ, BNJ, RNY and BNY performed better than their respective Peers in that the performance of each of BFZ, RNY and BNY was at or above the median of their Customized Lipper Peer Group Composite in each of the one-, three- and five-year periods reported and that the performance of BNJ was at or above the median of its Lipper Performance Composite in each of the one-, three- and five-year periods reported.

The Board of BFO noted that BFO performed below the median of its Lipper Performance Composite in each of the one-, three- and five-year periods reported. The Board of BFO and BlackRock reviewed the reasons for BFO’s underperformance during these periods compared with its Peers. The Board of BFO was informed that, among other things, BFO has a targeted maturity, and as such is managed to achieve the specific maturity goal.

The Board of RFA noted that RFA performed below the median of its Customized Lipper Peer Group Composite in each of the one-, three- and five-year periods reported. The Board of RFA and BlackRock reviewed the reasons for RFA’s underperformance during these periods compared with its Peers. The Board of RFA was informed that, among other things, while RFA’s portfolio managers have reduced RFA’s Florida exposure, RFA remains overweighted in Florida holdings versus its Peers, which has hindered RFA’s performance, as the state of Florida continues to have budget deficit concerns and a very weak housing market.

 

 

 

 





 

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Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

The Board of RFA and BlackRock discussed BlackRock’s strategy for improving RFA’s performance and BlackRock’s commitment to providing the resources necessary to assist RFA’s portfolio managers and to improve RFA’s performance, in part through the repositioning of RFA’s portfolio.

The Boards of BBF and RNJ noted that, in general, BBF and RNJ performed better than their Peers in that the performance of BBF was at or above the median of its respective Customized Lipper Peer Group Composite in two of the one-, three- and five-year periods reported and that the performance of RNJ was at or above the median of its Lipper Performance Composite in two of the one-, three- and five-year periods reported.

The Board of RAA noted that RAA performed below the median of its Customized Lipper Peer Group Composite in each of the one-, three- and five-year periods reported. The Board of RAA and BlackRock reviewed the reasons for RAA’s underperformance during these periods compared with its Peers. The Board of RAA was informed that, among other things, higher borrowings costs stemming from the “freezing up” of the auction rate preferred market required that dividends be adjusted lower. RAA has been the lowest yielding portfolio in its performance category.

The Board of RAA noted management’s efforts to benefit shareholders through a proposed merger of RAA and that shareholders had rejected the merger. The Board of RAA noted that, at the same meeting at which the Agreements were approved, the Board also approved submitting the liquidation of RAA to its shareholders for a vote.

The Boards noted that BlackRock has made changes to the organization of the overall fixed income group management structure designed to result in a strengthened leadership team with clearer accountability.

C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds: The Boards, including the Independent Board Members, reviewed each Fund’s contractual advisory fee rate compared with the other funds in its Lipper category. The Boards also compared each Fund’s total expenses, as well as actual management fees, to those of other funds in its Lipper category. The Boards considered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including separately managed institutional accounts.

The Boards received and reviewed statements relating to BlackRock’s financial condition and profitability with respect to the services it provided each Fund. The Boards were also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Boards reviewed BlackRock’s profitability with respect to each Fund and other funds the Boards currently oversee for the year ended December 31, 2009 compared to available aggregate profitability data provided for the year ended December 31, 2008. The Boards reviewed BlackRock’s profitability with respect to other fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, expense allocations and business mix, and the difficulty of comparing profitability as a result of those factors.

The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available. Nevertheless, to the extent such information was available, the Boards considered BlackRock’s overall operating margin, in general, compared to the operating margin for leading investment management firms whose operations include advising closed-end funds, among other product types. That data indicates that operating margins for BlackRock with respect to its registered funds are generally consistent with margins earned by similarly situated publicly traded competitors. In addition, the Boards considered, among other things, certain third party data comparing BlackRock’s operating margin with that of other publicly-traded asset management firms. That third party data indicates that larger asset bases do not, in themselves, translate to higher profit margins.

In addition, the Boards considered the cost of the services provided to each Fund by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management and distribution of each Fund and the other funds advised by BlackRock and its affiliates. As part of their analysis, the Boards reviewed BlackRock’s methodology in allocating its costs to the management of each Fund. The Boards also considered whether BlackRock has the financial resources necessary to attract and retain high-quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Boards.

The Board of each Fund noted that its Fund’s contractual management fee rate was lower than or equal to the median contractual management fee rate paid by the Fund’s Peers, in each case, before taking into account any expense reimbursements or fee waivers.

D. Economies of Scale: The Boards, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Fund increase. The Boards also considered the extent to which each Fund benefits from such economies and whether there should be changes in the advisory fee rate or structure in order to enable each Fund to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the asset level of each Fund.

The Boards noted that most closed-end fund complexes do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering and each fund is managed independently consistent with its own investment objectives. The Boards noted that only one closed-end fund in the Fund Complex has breakpoints in its fee structure. Information provided by Lipper also revealed that only one closed-end fund complex with total closed-end fund nets assets exceeding $10 billion, as of December 31, 2009, used a complex level breakpoint structure.

E. Other Factors Deemed Relevant by the Board Members: The Boards, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates and significant shareholders may derive from their respective relationships with the Funds,

 

 

 

 





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Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates and significant shareholders as service providers to each Fund, including for administrative and distribution services. The Boards also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Boards also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain mutual fund transactions to assist in managing all or a number of its other client accounts. The Boards further noted that BlackRock completed the acquisition of a complex of exchange-traded funds (“ETFs”) on December 1, 2009, and that BlackRock’s funds may invest in such ETFs without any offset against the management fees payable by the funds to BlackRock.

In connection with its consideration of the Agreements, the Boards also received information regarding BlackRock’s brokerage and soft dollar practices. The Boards received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Boards noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their respective Fund’s shares in the secondary market if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

The Boards, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and each Fund for a one-year term ending June 30, 2011 and the Sub-Advisory Agreement between the Manager and the Sub-Advisor with respect to each Fund for a one-year term ending June 30, 2011. As part of its approval, each Board considered the discussions of BlackRock’s fee structure, as it applies to its respective Fund, being conducted by the ad hoc Joint Product Pricing Committee. Based upon its evaluation of all of the aforementioned factors in their totality, the Boards, including the Independent Board Members, were satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at a decision to approve the Agreements, the Boards did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination. The contractual fee arrangements for each Fund reflect the results of several years of review by the Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. Certain aspects of the arrangements may be the subject of more attention in some years than in others, and the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.

 

 

 

 





 

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Automatic Dividend Reinvestment Plan

Pursuant to each Trust’s Dividend Reinvestment Plan (the “Plan”), common shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

After RAA, BFZ, RFA, BBF, RNJ, BNJ, RNY and BNY declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market or on the Trust’s primary exchange (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market premium”), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Plan Agent is unable to invest the full dividend amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Plan Agent will invest any un-invested portion in newly issued shares.

After BFO declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ account by the purchase of outstanding shares on the open market or on BFO’s primary exchange (“open market purchases”). BFO will not issue any new shares under the Plan.

Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 43078, Providence, RI 02940-3078 or by calling (800) 699-1BFM. All overnight correspondence should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021.

 

 

 

 





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Officers and Trustees


 

 

 

 

 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Trusts

 

Length
of Time
Served as
a Trustee2

 

Principal Occupation(s) During Past Five Years

 

Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen

 

Public
Directorships












Non-Interested Trustees1












Richard E. Cavanagh
55 East 52nd Street
New York, NY 10055
1946

 

Chairman of
the Board
and Trustee

 

Since 1994

 

Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life Insurance Company of America since 1998; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Adjunct Lecturer, Harvard University since 2007; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007.

 

99 RICs consisting of
97 Portfolios

 

Arch Chemical (chemical and allied products)












Karen P. Robards
55 East 52nd Street
New York, NY 10055
1950

 

Vice Chair of
the Board, Chair
of the Audit
Committee
and Trustee

 

Since 2007

 

Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Care Investment Trust, Inc. (health care real estate investment trust) from 2007 to 2010; Director of Enable Medical Corp. from 1996 to 2005; Investment Banker at Morgan Stanley from 1976 to 1987.

 

99 RICs consisting of
97 Portfolios

 

AtriCure, Inc. (medical devices)












Frank J. Fabozzi
55 East 52nd Street
New York, NY 10055
1948

 

Trustee and
Member of
the Audit
Committee

 

Since 1988

 

Consultant/Editor of The Journal of Portfolio Management since 2006; Professor in the Practice of Finance and Becton Fellow, Yale University, School of Management, since 2006; Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006.

 

99 RICs consisting of
97 Portfolios

 

None












Kathleen F. Feldstein
55 East 52nd Street
New York, NY 10055
1941

 

Trustee

 

Since 2005

 

President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003; Director, Catholic Charities of Boston since 2009.

 

99 RICs consisting of
97 Portfolios

 

The McClatchy Company (publishing); BellSouth (telecommunications); Knight Ridder (publishing)












James T. Flynn
55 East 52nd Street
New York, NY 10055
1939

 

Trustee and
Member of
the Audit
Committee

 

Since 2007

 

Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.

 

99 RICs consisting of
97 Portfolios

 

None












Jerrold B. Harris
55 East 52nd Street
New York, NY 10055
1942

 

Trustee

 

Since 2007

 

Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000; Director of Delta Waterfowl Foundation since 2001; President and Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999.

 

99 RICs consisting of
97 Portfolios

 

BlackRock Kelso Capital Corp. (business development)













 

 

 

 


 

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75




 


 

Officers and Trustees (continued)


 

 

 

 

 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Trusts

 

Length
of Time
Served as
a Trustee2

 

Principal Occupation(s) During Past Five Years

 

Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen

 

Public
Directorships












Non-Interested Trustees1 (concluded)












R. Glenn Hubbard
55 East 52nd Street
New York, NY 10055
1958

 

Trustee

 

Since 2004

 

Dean, Columbia Business School since 2004; Columbia faculty member since 1988; Co-Director, Columbia Business School’s Entrepreneurship Program from 1997 to 2004; Chairman, US Council of Economic Advisers under the President of the United States from 2001 to 2003; Chairman, Economic Policy Committee of the OECD from 2001 to 2003.

 

99 RICs consisting of
97 Portfolios

 

ADP (data and information services); KKR Financial Corporation (finance); Metropolitan Life Insurance Company (insurance)












W. Carl Kester
55 East 52nd Street
New York, NY 10055
1951

 

Trustee and
Member of
the Audit
Committee

 

Since 2007

 

George Fisher Baker Jr. Professor of Business Administration, Harvard Business School; Deputy Dean for Academic Affairs from 2006 to 2010; Unit Head, Finance, Harvard Business School from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program of Harvard Business School from 1999 to 2005; Member of the faculty of Harvard Business School since 1981; Independent Consultant since 1978.

 

99 RICs consisting of
97 Portfolios

 

None













 

 

 

 

1

Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

 

 

 

 

2

Date shown is the earliest date a person has served for any of the Trusts covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows trustees as joining the Trusts’ board in 2007, each trustee first became a member of the board of directors of other legacy MLIM or legacy BlackRock Funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995 and Karen P. Robards, 1998.


 

 

 

 

 

 

 

 

 

 

 












Interested Trustees3












Richard S. Davis
55 East 52nd Street
New York, NY 10055
1945

 

Trustee

 

Since 2007

 

Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer, State Street Research & Management Company from 2000 to 2005; Chairman of the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005.

 

169 RICs consisting of
292 Portfolios

 

None












Henry Gabbay
55 East 52nd Street
New York, NY 10055
1947

 

Trustee

 

Since 2007

 

Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end Funds in the BlackRock fund complex from 1989 to 2006.

 

169 RICs consisting of
292 Portfolios

 

None













 

 

 

 

3

Mr. Davis is an “interested person,” as defined in the Investment Company Act of 1940, of the Trusts based on his position with BlackRock, Inc. and its affiliates. Mr. Gabbay is an “interested person” of the Trusts based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership of BlackRock, Inc. and The PNC Financial Services Group, Inc. securities. Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.


 

 

 

 


76

ANNUAL REPORT

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Officers and Trustees (concluded)


 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Trusts

 

Length
of Time
Served

 

Principal Occupation(s) During Past Five Years








Trusts Officers1








Anne Ackerley
55 East 52nd Street
New York, NY 10055
1962

 

President and Chief Executive Officer

 

Since 20092

 

Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised Funds from 2007 to 2009; Chief Operating Officer of BlackRock’s Global Client Group (GCG) since 2009; Chief Operating Officer of BlackRock’s US Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006.








Brendan Kyne
55 East 52nd Street
New York, NY 10055
1977

 

Vice President

 

Since 2009

 

Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Product Development and Management for BlackRock’s US Retail Group since 2009, Co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008.








Neal Andrews
55 East 52nd Street
New York, NY 10055
1966

 

Chief Financial Officer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (US) Inc. from 1992 to 2006.








Jay Fife
55 East 52nd Street
New York, NY 10055
1970

 

Treasurer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P.-advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.








Brian Kindelan
55 East 52nd Street
New York, NY 10055
1959

 

Chief Compliance Officer

 

Since 2007

 

Chief Compliance Officer of the BlackRock-advised Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, Inc. from 2001 to 2004.








Howard Surloff
55 East 52nd Street
New York, NY 10055
1965

 

Secretary

 

Since 2007

 

Managing Director of BlackRock, Inc. and General Counsel of US Funds at BlackRock, Inc. since 2006; Formerly General Counsel (US) of Goldman Sachs Asset Management, L.P. from 1993 to 2006.









 

 

 

 

1

Officers of the Trusts serve at the pleasure of the Board of Trustees.

 

 

 

 

2

Ms. Ackerley has been President and Chief Executive Officer since 2009 and was Vice President from 2007 to 2009.





 

Investment Advisor

 

BlackRock Advisors, LLC

Wilmington, DE 19809

 

Sub-Advisor

 

BlackRock Financial

Management, Inc.

New York, NY 10055

 

Custodian

 

State Street Bank and

Trust Company

Boston, MA 02111

 

Transfer Agent

Common Shares:

Computershare Trust Company, N.A.

Providence, RI 02940

 

Auction Agent:

BNY Mellon Shareowner Services

Jersey City, NJ 07310

 

Accounting Agent

 

State Street Bank and

Trust Company

Princeton, NJ 08540

 

Independent Registered Public Accounting Firm

 

Deloitte & Touche LLP

Princeton, NJ 08540

 

Legal Counsel

 

Skadden, Arps, Slate, Meagher & Flom LLP

New York, NY 10036

 

Address of the Trusts

 

100 Bellevue Parkway

Wilmington, DE 19809


 

Effective March 31, 2010, G. Nicholas Beckwith, III, a Trustee of the Trusts, resigned. The Trusts’ Board extends its best wishes to Mr. Beckwith.

 


 

 

 

 


 

ANNUAL REPORT

JULY 31, 2010

77




 


 

Additional Information

 


General Information


On July 29, 2010, BlackRock Advisors, LLC, the Trusts’ investment advisor (the “Manager”), announced that a shareholder derivative complaint was filed on July 27, 2010 in the Supreme Court of the State of New York, New York County with respect to BFZ and BNJ, which had previously received a demand letter from a law firm on behalf of each trust’s common shareholders. The complaint was filed against the Manager, BlackRock, Inc., BFZ, BNJ and certain of the directors, officers and portfolio managers (collectively, the “BlackRock Parties”) in connection with the redemption of auction-market preferred shares, auction rate preferred securities, auction preferred shares and auction rate securities (collectively, “AMPS”). The complaint alleges, among other things, that the BlackRock Parties breached their fiduciary duties to the common shareholders of BFZ and BNJ (the “Shareholders”) by redeeming AMPS at their liquidation preference and alleges that such redemptions caused losses to the Shareholders. The plaintiffs are seeking monetary damages for the alleged losses suffered and to enjoin BFZ and BNJ from future redemptions of AMPS at their liquidation preference. The BlackRock Parties believe that the claims asserted in the complaint are without merit and intend to vigorously defend themselves in the litigation.

Electronic Delivery

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

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

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

Householding

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

Availability of Quarterly Schedule of Investments

Each Trust 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 Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trust’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

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

Availability of Proxy Voting Record

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

 


Dividend Policy


The Trusts’ dividend policy is to distribute all or a portion of their net investment income to their shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Trusts may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

 


Fund Certification


Certain Trusts are listed for trading on the New York Stock Exchange (“NYSE”) and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Funds filed with the SEC the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act of 2002.

 

 

 

 


78

ANNUAL REPORT

JULY 31, 2010

 




 


 

Additional Information (concluded)

 


Section 19(a) Notices


These reported amounts and sources of distributions are estimates and are not provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Trust’s investment results during the year and may be subject to changes based on tax regulations. Each Trust will provide a Form 1099-DIV for the calendar year that will explain the character of these dividends and distributions for federal income tax purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 31, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























 

 

 

Total Cumulative Distributions
for the Fiscal Year

 

 

% Breakdown of the Total Cumulative Distributions
for the Fiscal Year

 

 

 

 


 

 



 

 

 

Net
Investment
Income

 

 

Net
Realized
Capital
Gains

 

 

Return
of
Capital

 

 

Total Per
Common
Share

 

 

Net
Investment
Income

 

 

Net
Realized
Capital
Gains

 

 

Return
of
Capital

 

 

Total Per
Common
Share

 



























RNY

 

 

$0.835500

 

 

$0.024871

 

 

 

 

$0.860371

 

 

97%

 

 

3%

 

 

0%

 

 

100%

 




























 


BlackRock Privacy Principles


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

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

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

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

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

 

 

 

 


 

ANNUAL REPORT

JULY 31, 2010

79



This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

 

 

(PAPERLESS LOGO)

 

 

 

#CEF-BK9-07/10

(BLACKROCK LOGO)


Item 2 –

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

 

 

Item 3 –

Audit Committee Financial Expert – The registrant’s board of directors or trustees, as applicable (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

 

Kent Dixon (retired effective December 31, 2009)

 

Frank J. Fabozzi

 

James T. Flynn

 

W. Carl Kester

 

Karen P. Robards

 

 

 

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

 

 

 

Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements.

 

 

 

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

 

 

 

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

 


Item 4 –

Principal Accountant Fees and Services

 

 

(a) Audit Fees

(b) Audit-Related Fees1

(c) Tax Fees2

(d) All Other Fees3

Entity Name

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

 

 

 

 

 

 

 

 

 

BlackRock California Municipal Income Trust

$28,700

$28,700

$3,500

$3,500

$6,100

$6,100

$0

$1,028

 

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

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

3 The nature of the services include a review of compliance procedures and attestation thereto.

 

    

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

 

 

 

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

 

 

 

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

 

 

 

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

 

 

 

(f) Not Applicable

 

 

 


 

(g) Affiliates’ Aggregate Non-Audit Fees:

 

Entity Name

Current Fiscal Year
End

Previous Fiscal Year
End

 

 

 

BlackRock California Municipal Income Trust

$20,377

$413,128

 

 

(h) The registrant’s audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant’s investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

 

 

Regulation S-X Rule 2-01(c)(7)(ii) – $10,777, 0%

 

 

Item 5 –

Audit Committee of Listed Registrants

 

   

(a)

The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

     

 

 

Kent Dixon (retired effective December 31, 2009)

 

 

Frank J. Fabozzi

 

 

James T. Flynn

 

 

W. Carl Kester

 

 

Karen P. Robards

     

 

(b)

Not Applicable

 

Item 6 –

Investments

 

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

 

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

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of directors has delegated the voting of proxies for the Fund securities to the Fund’s investment adviser (“Investment Adviser”) pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall

 

 

 


 

determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at http://www.sec.gov.

 

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies – as of July 31, 2010.

 

   

(a)(1)

The registrant is managed by a team of investment professionals comprised of Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock, Inc. and Walter O’Connor, Managing Director at BlackRock, Inc. Each is a member of BlackRock, Inc.’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and/or selection of its investments. Messrs. Jaeckel and O’Connor have been members of the registrant’s portfolio management team since 2006 and 2006, respectively.

 

Portfolio Manager

Biography

Theodore R. Jaeckel, Jr.

Managing Director at BlackRock, Inc. since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2005 to 2006; Director of MLIM from 1997 to 2005.

Walter O’Connor

Managing Director of BlackRock, Inc. since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.

 


 

(a)(2)

As of July 31, 2010:

 

 

(ii) Number of Other Accounts Managed

and Assets by Account Type

(iii) Number of Other Accounts and

Assets for Which Advisory Fee is

Performance-Based

(i) Name of

Portfolio Manager

Other

Registered

Investment

Companies

Other Pooled

Investment

Vehicles

Other

Accounts

Other

Registered

Investment

Companies

Other Pooled

Investment

Vehicles

Other

Accounts 

Theodore R. Jaeckel, Jr.

72

0

0

0

0

0

 

$19.79 Billion

$0

$0

$0

$0

$0

Walter O’Connor

72

0

0

0

0

0

 

$19.79 Billion

$0

$0

$0

$0

$0

 

 

(iv)

Potential Material Conflicts of Interest

 

   

BlackRock and its affiliates (collectively, herein “BlackRock”) has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund,

 


   

and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund.  In addition, BlackRock, its affiliates and significant shareholders and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund.  BlackRock, or any of its affiliates or significant shareholders, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities.  Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information.  Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund.  In this connection, it should be noted that a portfolio manager may currently manage certain accounts that are subject to performance fees.  In addition, a portfolio manager may assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred.  Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees.

 

   

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly.  When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties.  BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment.  To this end, BlackRock has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time.  This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base.

 

 

(a)(3)

As of July 31, 2010:

 

 

Portfolio Manager Compensation Overview

 

 

 

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock such as its Long-Term Retention and Incentive Plan and Restricted Stock Program.

 

 

 


 

Base compensation. Generally, portfolio managers receive base compensation based on their seniority and/or their position with the firm. Senior portfolio managers who perform additional management functions within the portfolio management group or within BlackRock may receive additional compensation for serving in these other capacities.

 

 

 

Discretionary Incentive Compensation

 

Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s seniority, role within the portfolio management team, teamwork and contribution to the overall performance of these portfolios and BlackRock.  In most cases, including for the portfolio managers of the Fund, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment Officers determine the benchmarks against which the performance of funds and other accounts managed by each portfolio manager is compared and the period of time over which performance is evaluated.  With respect to the portfolio managers, such benchmarks include a combination of market-based indices (e.g., Barclays Capital Municipal Bond Index), certain customized indices and certain fund industry peer groups.

 

 

 

BlackRock’s Chief Investment Officers make a subjective determination with respect to the portfolio managers’ compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks noted above.  Performance is measured on both a pre-tax and after-tax basis over various time periods including 1, 3, 5 and 10-year periods, as applicable. 

 

 

Distribution of Discretionary Incentive Compensation

 

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods.

 

 

 

Long-Term Retention and Incentive Plan (“LTIP”) — From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align their interests with long-term shareholder interests and motivate performance.  Equity awards are generally granted in the form of BlackRock, Inc. restricted stock units that, once vested, settle in BlackRock, Inc. common stock. Messrs. Jaeckel and O’Connor have each received awards under the LTIP.

 

 

 

Deferred Compensation Program — A portion of the compensation paid to eligible BlackRock employees may be voluntarily deferred into an account that tracks the performance of certain of the firm’s investment products. Each participant in the deferred compensation program is permitted to allocate his deferred amounts among the various investment options. Messrs. Jaeckel and O’Connor have each participated in the deferred compensation program.

 

 

 


 

Other compensation benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

 

 

 

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation.  The RSP offers a range of investment options, including registered investment companies managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent employee investment direction, are invested into a balanced portfolio.  The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.  Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000.  Each portfolio manager is eligible to participate in these plans.

 

 

(a)(4)

Beneficial Ownership of Securities – As of July 31, 2010.

 

Portfolio Manager

Dollar Range of Equity Securities Beneficially Owned

Theodore R. Jaeckel, Jr.

None

Walter O’Connor

None

 

 

(b) Not Applicable

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.

 

 

Item 10 –

Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that 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 13a-15(b) under the Securities 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 – See Item 2

 

 

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.

 

 

 

BlackRock California Municipal Income Trust

   
  By: /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock California Municipal Income Trust
   
  Date: October 6, 2010
   
  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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock California Municipal Income Trust
   
  Date: October 6, 2010
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock California Municipal Income Trust
   
  Date: October 6, 2010