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 811-10333

Name of Fund: BlackRock Municipal Income Investment Trust (BBF)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock Municipal
Income Investment Trust, 40 East 52nd Street, New York, NY 10022.

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

Date of fiscal year end: 07/31/2009

Date of reporting period: 07/31/2009

 

 

Item 1 –  Report to Stockholders




EQUITIES  FIXED INCOME  REAL ESTATE  LIQUIDITY  ALTERNATIVES  BLACKROCK SOLUTIONS

 

 

Annual Report

(BLACKROCK LOGO)

 

 

JULY 31, 2009

 

 

 

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
MAY LOSE VALUE
NO BANK GUARANTEE



 


 

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

 

38

Statements of Operations

 

40

Statements of Changes in Net Assets

 

42

Statement of Cash Flows

 

46

Financial Highlights

 

47

Notes to Financial Statements

 

56

Report of Independent Registered Public Accounting Firm

 

65

Important Tax Information (Unaudited)

 

65

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

 

66

Automatic Dividend Reinvestment Plan

 

70

Officers and Trustees

 

71

Additional Information

 

74


 

 

 




2

ANNUAL REPORT

JULY 31, 2009




 


 

Dear Shareholder

The past 12 months reveal two distinct market backdrops — one of extreme investor pessimism and decided weakness, and another of cautious optimism and nascent signs of recovery. The first half of the period was characterized by the former, as the global financial crisis erupted into the worst recession in decades. Daily headlines recounted universal macroeconomic deterioration, financial sector casualties, volatile swings in global equity markets, and unprecedented government intervention that included widespread (and globally coordinated) monetary and quantitative easing by central banks and large-scale fiscal stimuli. Sentiment improved noticeably in March 2009, however, on the back of new program announcements by the US Treasury Department and Federal Reserve, as well as generally stronger-than-expected economic data in a few key areas, including retail sales, business and consumer confidence, manufacturing and housing.

In this environment, US equities contended with extraordinary volatility, posting steep declines through mid-March 2009 before going on a three-month rally that largely negated year-to-date losses. Late in the period, investor enthusiasm waned and a correction ensued for several weeks, mostly as a result of profit taking and portfolio rebalancing, as opposed to a change in the economic outlook. Equities rallied once again as the period drew to a close, resulting in positive year-to-date returns for all major indexes. The experience in international markets was similar to that in the United States, though performance was generally more extreme both on the decline and on the upturn. Notably, emerging markets, which lagged most developed regions through the downturn, reassumed leadership in 2009 as these areas of the globe have generally seen a stronger acceleration in economic recovery.

In fixed income markets, while the flight to quality remained a prevalent theme, relatively attractive yields and distressed valuations, alongside a more favorable macro environment, eventually captured investor attention, leading to a sharp recovery in non-Treasury assets. This has been particularly evident in the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. At the same time, the municipal bond market enjoyed a strong return after the exceptional market volatility of 2008, buoyed by a combination of attractive valuations, robust retail investor demand and a slowdown in forced selling. Direct aid to state and local governments via the American Recovery and Reinvestment Act of 2009 has also lent support to municipal bonds.

 

 

 

 

 

 

 

 

Total Returns as of July 31, 2009

 

6-month

 

12-month

 









US equities (S&P 500 Index)

 

 

21.18

%

 

(19.96

)%









Small cap US equities (Russell 2000 Index)

 

 

26.61

 

 

(20.72

)









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

 

 

30.63

 

 

(22.60

)









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

 

 

(3.91

)

 

7.58

 









Taxable fixed income (Barclays Capital US Aggregate Bond Index)

 

 

4.47

 

 

7.85

 









Tax-exempt fixed income (Barclays Capital Municipal Bond Index)

 

 

4.38

 

 

5.11

 









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

 

 

30.11

 

 

5.30

 










 

 

 

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

The market environment has clearly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional insight and timely “food for thought,” we invite you to visit our award-winning Shareholder® magazine, now available exclusively online at www.blackrock.com/shareholdermagazine. We thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

-s- Rob Kapito

Rob Kapito
President, BlackRock Advisors, LLC

 


Announcement to Shareholders


On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). At a special meeting held on August 6, 2009, BlackRock’s proposed purchase of BGI was approved by an overwhelming majority of Barclays’ voting shareholders, an important step toward closing the transaction. The combination of BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.

 

 


THIS PAGE NOT PART OF YOUR FUND REPORT

3




 

 


 

 

Trust Summary as of July 31, 2009

BlackRock California Investment Quality Municipal Trust Inc.


 


Investment Objective


BlackRock California Investment Quality Municipal Trust Inc. (RAA) (the “Trust”) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal and California income tax consistent with preservation of capital. No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2009, the Trust returned (0.93)% based on market price and 1.28% based on net asset value (“NAV”). For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (3.92)% based on market price and (5.13)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Duration positioning was neutral for most of the period. The majority of the Trust’s outperformance was derived from a tightening in credit spreads. Cash and short-term investment reserves ranged from 1% to 13% of assets under management during the period. Overall, the cash position was beneficial to performance as it lowered portfolio duration and enhanced the Trust’s yield as a portion of the cash reserves was invested in higher-yielding variable-rate demand notes. Along with attractive borrowing costs, the portfolio’s accrual permitted an increase in dividends in June. Our strategy is to pursue a balanced approach to returns, continue to bolster current yield and commit cash reserves when research uncovers appropriate opportunities. Credit fundamentals warrant monitoring in the current weak economic environment, especially in California, considering budgetary challenges. Management is alert to improve quality as opportunities arise.

 

 

 

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, 2009 ($11.20)1

 

 

5.52%

 

Tax Equivalent Yield2

 

 

8.49%

 

Current Monthly Distribution per Common Share3

 

 

$0.0515

 

Current Annualized Distribution per Common Share3

 

 

$0.6180

 

Leverage as of July 31, 20094

 

 

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 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 














 

 

7/31/09

 

7/31/08

 

 

Change

 

High

 

Low

 














Market Price

 

$

11.20

 

$

11.96

 

 

(6.35)%

 

$

12.52

 

$

6.92

 

Net Asset Value

 

$

12.35

 

$

12.90

 

 

(4.26)%

 

$

13.35

 

$

9.88

 


















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

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







County/City/Special District/School District

 

34

%

 

22

%

 

Utilities

 

19

 

 

14

 

 

Education

 

12

 

 

3

 

 

Health

 

10

 

 

11

 

 

State

 

10

 

 

19

 

 

Transportation

 

10

 

 

2

 

 

Corporate

 

5

 

 

9

 

 

Housing

 

 

 

8

 

 

Tobacco

 

 

 

12

 

 









 


Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







AAA/Aaa

 

12

%

 

39

%

 

AA/Aa

 

47

 

 

24

 

 

A/A

 

33

 

 

17

 

 

BBB/Baa

 

6

 

 

11

 

 

B

 

2

 

 

4

 

 

Not Rated

 

 

 

5

 

 










 

 

 

 

5

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


 

 

 




4

ANNUAL REPORT

JULY 31, 2009



 

 


 

Trust Summary as of July 31, 2009

BlackRock California Municipal Income Trust


 


Investment Objective


BlackRock California Municipal Income Trust (BFZ) (the “Trust”) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and California income taxes. No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2009, the Trust returned (4.81)% based on market price and (2.36)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (3.92)% based on market price and (5.13)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period-end, which accounts for the difference between performance based on price and performance based on NAV. The Trust’s duration positioning was slightly above neutral for most of the period. The Trust’s outperformance based on NAV was derived from a tightening in credit spreads, although zero-coupon positions did contribute negatively as spreads for these structures widened. Along with attractive borrowing costs, the portfolio accrual permitted an increase in dividends in June. Our strategy is to pursue a balanced approach to returns, continue to bolster current yield and commit cash reserves when research uncovers appropriate opportunities. Credit fundamentals warrant monitoring in the current weak economic environment, especially in California, considering budgetary challenges. Management is alert to improve quality as opportunities arise.

 

 

 

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, 2009 ($12.40)1

 

 

7.33%

Tax Equivalent Yield2

 

 

11.28%

Current Monthly Distribution per Common Share3

 

$0.0757

 

Current Annualized Distribution per Common Share3

 

$0.9084

 

Leverage as of July 31, 20094

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

7/31/09

 

7/31/08

 

Change

 

High

 

Low

 


















Market Price

 

$

12.40

 

$

13.99

 

 

(11.37

)%

$

14.54

 

$

7.36

 

Net Asset Value

 

$

12.71

 

$

13.98

 

 

(9.08

)%

$

14.30

 

$

10.32

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 


County/City/Special District/School District

 

 

37

%

 

27

%

Education

 

 

18

 

 

10

 

Health

 

 

11

 

 

17

 

Utilities

 

 

10

 

 

4

 

Transportation

 

 

10

 

 

7

 

State

 

 

6

 

 

8

 

Housing

 

 

6

 

 

16

 

Corporate

 

 

2

 

 

4

 

Tobacco

 

 

 

 

7

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 


AAA/Aaa

 

 

21

%

 

33

%

AA/Aa

 

 

28

 

 

22

 

A/A

 

 

40

 

 

24

 

BBB/Baa

 

 

8

 

 

11

 

B

 

 

1

 

 

1

 

Not Rated6

 

 

2

 

 

9

 










 

 

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 and 2008, the market value of these securities was $1,974,163, representing 1% and $2,242,216, representing 1%, respectively, of the Trust’s long-term investments.


 

 

 

 





 

ANNUAL REPORT

JULY 31, 2009

5



 

 


 

Trust Summary as of July 31, 2009

BlackRock Florida Municipal 2020 Term Trust


 


Investment Objective


BlackRock Florida Municipal 2020 Term Trust (BFO) (the “Trust”) seeks to provide current income that is exempt from regular federal income tax and Florida intangible personal property taxes and to return $15.00 per share (the initial public offering price) on or about December 31, 2020. No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2009, the Trust returned 3.95%, based on market price and (0.48)%, based on NAV. For the same period, the closed-end Lipper Florida Municipal Debt Funds category posted an average return of 7.14% based on market price and 1.51% on a NAV basis. 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 price and performance based on NAV. Although the Trust benefited from a declining interest rate environment during the period, Florida was a weak performer among the states, with only Michigan and Ohio posting lower returns, which hampered performance. Sector allocation was also an important component to performance. In particular, the Trust’s exposure to high yield bonds and the health sector, which significantly underperformed, detracted from results. Low short-term rates, however, resulted in increased income to the Trust from leverage, which allowed for a dividend increase beginning with the July 1, 2009 distribution.

 

 

 

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, 2009 ($12.31)1

 

 

5.46%

 

Tax Equivalent Yield2

 

 

8.40%

 

Current Monthly Distribution per Common Share3

 

 

$0.056

 

Current Annualized Distribution per Common Share3

 

 

$0.672

 

Leverage as of July 31, 20094

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

7/31/09

 

7/31/08

 

Change

 

High

 

Low

 


Market Price

 

$

12.31

 

$

12.50

 

 

(1.52

)%

$

12.97

 

$

8.15

 

Net Asset Value

 

$

13.35

 

$

14.16

 

 

(5.72

)%

$

14.45

 

$

11.27

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







County/City/Special District/School District

 

 

48

%

 

46

%

Utilities

 

 

18

 

 

20

 

Health

 

 

11

 

 

13

 

State

 

 

9

 

 

7

 

Corporate

 

 

6

 

 

6

 

Housing

 

 

5

 

 

5

 

Transportation

 

 

2

 

 

2

 

Education

 

 

1

 

 

1

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







AAA/Aaa

 

 

31

%

 

29

%

AA/Aa

 

 

10

 

 

34

 

A/A

 

 

30

 

 

7

 

BBB/Baa

 

 

6

 

 

9

 

BB/Ba

 

 

2

 

 

2

 

Not Rated6

 

 

21

 

 

19

 










 

 

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 and 2008, the market value of these securities was $13,543,166, representing 11% and $11,848,675, representing 9%, respectively, of the Trust’s long-term investments.


 

 

 




6

ANNUAL REPORT

JULY 31, 2009



 

 


 

 

Trust Summary as of July 31, 2009

BlackRock Investment Quality Municipal Income Trust

 

 


Investment Objective

 


BlackRock Investment Quality Municipal Income Trust (RFA) (the “Trust”) seeks to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and to provide an exemption from Florida intangible personal property taxes consistent with preservation of capital. Effective September 16, 2008, BlackRock Florida Investment Quality Municipal Trust was renamed BlackRock Investment Quality Municipal Income Trust. No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2009, the Trust returned (1.93)% based on market price and (3.68)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 2.20% based on market price and (2.40)% on a NAV basis. 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 price and performance based on NAV. Sector allocation played an important role in determining the Trust’s performance during the period. Spread products, such as health care, tax increment and corporate-backed bonds, underperformed significantly, as the economic downturn continued to add more stress on the fundamental credit qualities of these sectors. The Trust’s holdings in these segments, therefore, detracted from performance. Certain municipal bonds that are issued for a private purpose such as certain housing bonds may be subject to the alternative minimum tax (“AMT”). These bonds typically have higher yields than non-AMT bonds to compensate for the potential tax treatment of these issues. Exposure to AMT bonds also detracted from results, as these issues underperformed amid significant spread widening during the 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, 2009 ($10.08)1

 

 

6.79%

 

Tax Equivalent Yield2

 

 

10.45%

 

Current Monthly Distribution per Common Share3

 

 

$0.057

 

Current Annualized Distribution per Common Share3

 

 

$0.684

 

Leverage as of July 31, 20094

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

7/31/09

 

7/31/08

 

Change

 

High

 

Low

 


Market Price

 

$

10.08

 

$

10.93

 

 

(7.78

)%

$

10.93

 

$

6.54

 

Net Asset Value

 

$

11.15

 

$

12.31

 

 

(9.42

)%

$

12.54

 

$

8.98

 


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

 

 

 

 

 

 

 

 


Sector Allocations

 

 

 

 

 

 

 


 

 

 

7/31/09

 

7/31/08

 


County/City/Special District/School District

 

 

27

%

 

37

%

Utilities

 

 

21

 

 

16

 

Transportation

 

 

13

 

 

9

 

Health

 

 

12

 

 

14

 

State

 

 

10

 

 

9

 

Education

 

 

9

 

 

3

 

Housing

 

 

8

 

 

8

 

Corporate

 

 

 

 

4

 



 

 

 

 

 

 

 

 


Credit Quality Allocations5


 

 

 

7/31/09

 

7/31/08

 


AAA/Aaa

 

 

14

%

 

40

%

AA/Aa

 

 

44

 

 

29

 

A/A

 

 

32

 

 

4

 

BBB/Baa

 

 

 

 

9

 

BB/Ba

 

 

1

 

 

2

 

Not Rated6

 

 

9

 

 

16

 



 

 

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 and 2008, the market value of these securities was $461,249, representing 2% and $722,157, representing 3%, respectively, of the Trust’s long-term investments.


 

 

 


ANNUAL REPORT

JULY 31, 2009

7




 

 


 

 

Trust Summary as of July 31, 2009

BlackRock Municipal Income Investment Trust

 

 


Investment Objective

 


BlackRock Municipal Income Investment Trust (BBF) (the “Trust”) seeks to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and Florida intangible personal property tax. Effective September 18, 2008, BlackRock Florida Municipal Income Trust was renamed BlackRock Municipal Income Investment Trust. No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2009, the Trust returned (1.46)% based on market price and (2.57)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 2.20% based on market price and (2.40)% on a NAV basis. 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 price and performance based on NAV. Sector allocation played an important role in determining how the Trust performed during the reporting period. The Trust was significantly overweight in pre-refunded securities in the one- to five-year maturity range. This enhanced performance as the yield curve steepened. Conversely, spread products, such as health care, land increment and corporate-backed bonds, significantly underperformed, as the economic downturn continued to add more stress on the fundamental credit quality for these sectors. The Trust’s holdings in these segments, therefore, detracted from 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

 

 

BBF

 

Initial Offering Date

 

 

July 27, 2001

 

Yield on Closing Market Price as of July 31, 2009 ($12.49)1

 

 

7.24%

 

Tax Equivalent Yield2

 

 

11.14%

 

Current Monthly Distribution per Common Share3

 

 

$0.075375

 

Current Annualized Distribution per Common Share3

 

 

$0.904500

 

Leverage as of July 31, 20094

 

 

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 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

7/31/09

 

7/31/08

 

Change

 

High

 

Low

 


Market Price

 

$

12.49

 

$

13.68

 

 

(8.70

)%

$

14.06

 

$

6.18

 

Net Asset Value

 

$

12.71

 

$

14.08

 

 

(9.73

)%

$

14.35

 

$

10.65

 


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

 

 

 

 

 

 

 

 


Sector Allocations

 

 

 

 

 

 

 


 

 

 

7/31/09

 

7/31/08

 


County/City/Special District/School District

 

 

27

%

 

39

%

Utilities

 

 

22

 

 

10

 

Health

 

 

21

 

 

30

 

Education

 

 

16

 

 

13

 

State

 

 

7

 

 

5

 

Transportation

 

 

6

 

 

1

 

Housing

 

 

1

 

 

 

Corporate

 

 

 

 

2

 



 

 

 

 

 

 

 

 


Credit Quality Allocations5

 

 

 

 

 

 

 


 

 

 

7/31/09

 

7/31/08

 


AAA/Aaa

 

 

9

%

 

25

%

AA/Aa

 

 

47

 

 

30

 

A/A

 

 

28

 

 

11

 

BBB/Baa

 

 

5

 

 

9

 

BB/Ba

 

 

1

 

 

2

 

Not Rated6

 

 

10

 

 

23

 



 

 

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 and 2008, the market value of these securities was $10,029,093, representing 7% and $13,484,932, representing 9%, respectively, of the Trust’s long-term investments.


 

 

 




8

ANNUAL REPORT

JULY 31, 2009



 

 


 

 

Trust Summary as of July 31, 2009

BlackRock New Jersey Investment Quality Municipal Trust Inc.


 


Investment Objective


BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ) (the “Trust”) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and New Jersey gross income tax consistent with preservation of capital. No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2009, the Trust returned 4.01% based on market price and (1.09)% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 4.58% based on market price and 1.31% on a NAV basis. 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 price and performance based on NAV. Sector allocation played an important role in the Trust’s performance during the period. Spread products, such as health care and corporate-backed bonds, underperformed significantly, as the economic downturn continued to add more stress on the fundamental credit qualities of these sectors. The Trust’s holdings in these segments, therefore, detracted from performance. Certain municipal bonds that are issued for a private purpose such as certain housing bonds may be subject to the AMT. These bonds typically have higher yields than non-AMT bonds to compensate for the potential tax treatment of these issues. Exposure to AMT bonds also detracted from results, as spreads widened out significantly during the 12 months. During the 12 months, Trust management maintained high cash allocations in an effort to reduce volatility and ensure that ample cash was available to take advantage of potential opportunities in the new-issue market. The Trust’s cash balance lowered portfolio duration, which was beneficial; however, it also held the yield down slightly as the money was invested in lower-yielding short-term investments, a negative factor.

 

 

 

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, 2009 ($11.68)1

 

6.31%

Tax Equivalent Yield2

 

9.71%

Current Monthly Distribution per Common Share3

 

$0.0614

Current Annualized Distribution per Common Share3

 

$0.7368

Leverage as of July 31, 20094

 

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 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

7/31/09

 

7/31/08

 

Change

 

High

 

Low

 


















Market Price

 

$

11.68

 

$

11.96

 

 

(2.34

)%

$

12.56

 

$

6.95

 

Net Asset Value

 

$

11.33

 

$

12.20

 

 

(7.13

)%

$

12.47

 

$

9.13

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







State

 

 

22

%

 

15

%

Transportation

 

 

20

 

 

16

 

Health

 

 

18

 

 

22

 

Education

 

 

10

 

 

15

 

Housing

 

 

9

 

 

8

 

Utilities

 

 

7

 

 

10

 

Corporate

 

 

7

 

 

6

 

County/City/Special District/School District

 

 

6

 

 

4

 

Tobacco

 

 

1

 

 

4

 



 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







AAA/Aaa

 

 

24

%

 

24

%

AA/Aa

 

 

17

 

 

29

 

A/A

 

 

20

 

 

16

 

BBB/Baa

 

 

27

 

 

14

 

B/B

 

 

4

 

 

4

 

Not Rated

 

 

8

 

 

13

 



 

 

5

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


 

 

 


ANNUAL REPORT

JULY 31, 2009

9




 

 


 

 

Trust Summary as of July 31, 2009

BlackRock New Jersey Municipal Income Trust


 


Investment Objective


BlackRock New Jersey Municipal Income Trust (BNJ) (the “Trust”) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and New Jersey gross income tax. No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2009, the Trust returned 0.04% based on market price and (2.62)% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 4.58% based on market price and 1.31% on a NAV basis. 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 price and performance based on NAV. Sector allocation played an important role in the Trust’s performance during the period. Spread products, such as health care and corporate-backed bonds, underperformed significantly, as the economic downturn continued to add more stress on the fundamental credit qualities of these sectors. The Trust’s holdings in these segments, therefore, detracted from performance. Certain municipal bonds that are issued for a private purpose such as certain housing bonds may be subject to the AMT. These bonds typically have higher yields than non-AMT bonds to compensate for the potential tax treatment of these issues. Exposure to AMT bonds also detracted from results, as spreads widened out significantly during the 12 months. During the 12 months, Trust management maintained high cash allocations in an effort to reduce volatility and ensure that ample cash was available to take advantage of potential opportunities in the new-issue market. The Trust’s cash balance lowered portfolio duration, which was beneficial; however, it also held the yield down slightly as the money was invested in lower-yielding short-term investments, a negative factor.

 

 

 

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, 2009 ($14.00)1

 

6.65%

Tax Equivalent Yield2

 

10.23%

Current Monthly Distribution per Common Share3

 

$0.0776

Current Annualized Distribution per Common Share3

 

$0.9312

Leverage as of July 31, 20094

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/09

 

7/31/08

 

Change

 

High

 

Low

 


















Market Price

 

$

14.00

 

$

15.09

 

 

(7.22

)%

$

15.18

 

$

9.71

 

Net Asset Value

 

$

12.78

 

$

14.15

 

 

(9.68

)%

$

14.51

 

$

10.41

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







Health

 

 

23

%

 

29

%

State

 

 

22

 

 

18

 

Housing

 

 

20

 

 

17

 

Transportation

 

 

12

 

 

8

 

County/City/Special District/School District

 

 

9

 

 

9

 

Education

 

 

9

 

 

8

 

Corporate

 

 

4

 

 

5

 

Tobacco

 

 

1

 

 

6

 



 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







AAA/Aaa

 

 

26

%

 

32

%

AA/Aa

 

 

20

 

 

12

 

A/A

 

 

27

 

 

26

 

BBB/Baa

 

 

17

 

 

18

 

B/B

 

 

3

 

 

3

 

Not Rated

 

 

7

 

 

9

 



 

 

5

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


 

 

 


10

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Trust Summary as of July 31, 2009

BlackRock New York Investment Quality Municipal Trust Inc.


 


Investment Objective


BlackRock New York Investment Quality Municipal Trust Inc. (RNY) (the “Trust”) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income taxes and New York State and New York City income tax consistent with preservation of capital. No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2009, the Trust returned 4.81% based on market price and 2.71% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 1.84% based on market price and (2.86)% on a NAV basis. 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 price and performance based on NAV. Performance was positively affected by a slightly-above-average distribution rate, as well as the Trust’s positioning in longer-dated maturities. The one-year period comprised two separate — and major — fixed income market moves. The end of 2008 witnessed severe dislocations whereby, as a result of illiquidity and credit concerns, municipal bonds were treated as risk assets and traded at historically-wide spreads versus Treasuries. The second half of the period saw a return of liquidity and more normal demand metrics, accompanied by significant spread compression and yield curve flattening. The Trust outperformed during the latter time due to its overweight in longer-dated bonds, its barbell credit structure, its slightly longer duration and its participation in new-issue deals, which were coming at significant discounts to secondary market levels. We also used the new-issue market to increase the Trust’s exposure to bonds that have retail appeal, as these bonds should benefit from an environment with favorable municipal supply and demand factors.

 

 

 

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, 2009 ($12.61)1

 

6.49%

Tax Equivalent Yield2

 

9.98%

Current Monthly Distribution per Common Share3

 

$0.0682

Current Annualized Distribution per Common Share3

 

$0.8184

Leverage as of July 31, 20094

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/09

 

7/31/08

 

Change

 

High

 

Low

 


















Market Price

 

$

12.61

 

$

12.83

 

 

(1.71

)%

$

13.09

 

$

7.48

 

Net Asset Value

 

$

12.81

 

$

13.30

 

 

(3.68

)%

$

13.64

 

$

10.21

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







County/City/Special District/School District

 

 

26

%

 

26

%

Education

 

 

19

 

 

16

 

Utilities

 

 

13

 

 

12

 

Health

 

 

11

 

 

12

 

State

 

 

10

 

 

10

 

Corporate

 

 

9

 

 

9

 

Housing

 

 

7

 

 

8

 

Transportation

 

 

3

 

 

5

 

Tobacco

 

 

2

 

 

2

 



 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 









AAA/Aaa

 

 

29

%

 

36

%

AA/Aa

 

 

24

 

 

37

 

A/A

 

 

28

 

 

9

 

BBB/Baa

 

 

9

 

 

8

 

BB/Ba

 

 

2

 

 

1

 

B/B

 

 

7

 

 

7

 

Not Rated

 

 

1

 

 

2

 



 

 

5

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


 

 

 


ANNUAL REPORT

JULY 31, 2009

11




 

 


 

 

Trust Summary as of July 31, 2009

BlackRock New York Municipal Income Trust


 


Investment Objective


BlackRock New York Municipal Income Trust (BNY) (the “Trust”) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and New York State and New York City personal income taxes. No assurance can be given that the Trust’s investment objective will be achieved.

 


Performance


For the 12 months ended July 31, 2009, the Trust returned (1.44)% based on market price and (1.28)% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 1.84% based on market price and (2.86)% on a NAV basis. 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 price and performance based on NAV. Performance was positively affected by a slightly-above-average distribution rate, as well as the Trust’s positioning in longer-dated maturities. The one-year period comprised two separate — and major — fixed income market moves. The end of 2008 witnessed severe dislocations whereby, as a result of illiquidity and credit concerns, municipal bonds were treated as risk assets and traded at historically-wide spreads versus Treasuries. The second half of the period saw a return of liquidity and more normal demand metrics, accompanied by significant spread compression and yield curve flattening. The Trust outperformed during the latter time due to its overweight in longer-dated bonds, its barbell credit structure, its slightly longer duration and its participation in new-issue deals, which were coming at significant discounts to secondary market levels. We also used the new-issue market to increase the Trust’s exposure to bonds that have retail appeal, as these bonds should benefit from an environment with favorable municipal supply and demand factors.

 

 

 

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, 2009 ($13.95)1

 

6.88%

Tax Equivalent Yield2

 

10.58%

Current Monthly Distribution per Common Share3

 

$0.08

Current Annualized Distribution per Common Share3

 

$0.96

Leverage as of July 31, 20094

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

7/31/09

 

7/31/08

 

Change

 

High

 

Low

 


















Market Price

 

$

13.95

 

$

15.26

 

 

(8.58

)%

$

15.41

 

$

7.75

 

Net Asset Value

 

$

12.71

 

$

13.88

 

 

(8.43

)%

$

14.21

 

$

9.95

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







County/City/Special District/School District

 

 

15

%

 

14

%

Housing

 

 

14

 

 

15

 

Transportation

 

 

14

 

 

16

 

Education

 

 

13

 

 

11

 

State

 

 

12

 

 

11

 

Utilities

 

 

11

 

 

11

 

Corporate

 

 

11

 

 

11

 

Tobacco

 

 

6

 

 

8

 

Health

 

 

4

 

 

3

 



 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

7/31/09

 

7/31/08

 







AAA/Aaa

 

 

27

%

 

30

%

AA/Aa

 

 

22

 

 

31

 

A/A

 

 

27

 

 

17

 

BBB/Baa

 

 

17

 

 

15

 

BB/Ba

 

 

1

 

 

1

 

B/B

 

 

5

 

 

5

 

Not Rated

 

 

1

 

 

1

 



 

 

5

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


 

 

 


12

ANNUAL REPORT

JULY 31, 2009




 


 

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 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 the Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trust’s Common Shareholders will benefit from the incremental yield.

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 the 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.

Conversely, 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 rates whereas the Trust’s total portfolio earns income based on lower long-term interest rates. 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, the value of the Trust’s 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 Trust’s Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trust’s NAV positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares discussed above.

The Trusts may also, from time to time, 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 the Trusts’ 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. The Trusts 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 the Trusts to incur losses. The use of leverage may limit the Trusts’ 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 a Trust. The Trusts will incur expenses in connection with the use of leverage, all of which are borne by the holders of the Common Shares and may reduce returns on the Common Shares.

Under the Investment Company Act of 1940, each Trust is permitted to issue Preferred Shares in an amount of up to 50% of its total managed assets at the time of issuance. Under normal circumstances, each Trust anticipates that the total economic leverage from Preferred Shares and TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of July 31, 2009, the Trusts had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 






 

 

Percent of
Leverage

 





BlackRock California Investment Quality Municipal Trust Inc.

 

 

37

%

BlackRock California Municipal Income Trust

 

 

40

%

BlackRock Florida Municipal 2020 Term Trust

 

 

39

%

BlackRock Investment Quality Municipal Income Trust

 

 

39

%

BlackRock Municipal Income Investment Trust

 

 

40

%

BlackRock New Jersey Investment Quality Municipal Trust Inc.

 

 

38

%

BlackRock New Jersey Municipal Income Trust

 

 

38

%

BlackRock New York Investment Quality Municipal Trust Inc.

 

 

37

%

BlackRock New York Municipal Income Trust

 

 

40

%







 


Derivative Financial Instruments


The Trusts may invest in various derivative instruments, including financial futures contracts and swaps, as specified in Note 2 of the Notes to Financial Statements, which 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 and illiquidity of the derivative instrument. The Trusts’ 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 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, 2009

13



 

 


 

Schedule of Investments July 31, 2009

BlackRock California Investment Quality Municipal Trust Inc. (RAA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California — 126.8%

 

 

 

 

 

 

 









Corporate — 6.8%

 

 

 

 

 

 

 

California Pollution Control Financing Authority, RB, Waste Management Inc. Project, Series A-2, AMT, 5.40%, 4/01/25

 

$

500

 

$

458,815

 

Los Angeles Regional Airports Improvement Corp., California, Refunding RB, Facilities Sublease, Los Angeles International Airport, Series B, AMT, 7.50%, 12/01/24

 

 

500

 

 

387,095

 

 

 

 

 

 




 

 

 

 

 

 

845,910

 









County/City/Special District/School District — 37.9%

 

 

 

 

 

 

 

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

 

 

500

 

 

514,725

 

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

 

 

500

 

 

519,430

 

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

 

 

500

 

 

507,015

 

Los Angeles Community College District, California, GO, 2003 Election, Series F-1, 5.00%, 8/01/33

 

 

335

 

 

318,823

 

Los Angeles Unified School District, California, GO, Series D, 5.30%, 1/01/34

 

 

500

 

 

497,940

 

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

 

 

500

 

 

500,185

 

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

 

 

250

 

 

243,010

 

Santa Ana Unified School District, GO (MBIA), 5.38%, 8/01/27

 

 

500

 

 

502,540

 

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

 

 

100

 

 

101,726

 

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

 

 

500

 

 

486,690

 

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

 

 

500

 

 

519,300

 

 

 

 

 

 




 

 

 

 

 

 

4,711,384

 









Education — 10.2%

 

 

 

 

 

 

 

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

 

 

500

 

 

511,440

 

California Infrastructure & Economic Development Bank, Refunding RB, Salvation Army Western (AMBAC), 5.00%, 9/01/27

 

 

500

 

 

505,025

 

Snowline Joint Unified School District, COP, Refinancing Program (AGC), 5.75%, 9/01/38

 

 

250

 

 

254,195

 

 

 

 

 

 




 

 

 

 

 

 

1,270,660

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (continued)

 

 

 

 

 

 

 









Health — 15.3%

 

 

 

 

 

 

 

ABAG Finance Authority for Nonprofit Corps, RB, Sharp Healthcare, 6.25%, 8/01/39

 

$

250

 

$

249,327

 

California Health Facilities Financing Authority, California, RB:

 

 

 

 

 

 

 

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

 

 

250

 

 

241,898

 

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

 

 

250

 

 

268,720

 

California Statewide Communities Development Authority, RB:

 

 

 

 

 

 

 

Catholic Healthcare West, Series E, 5.50%, 7/01/31

 

 

250

 

 

228,605

 

Kaiser Permanente, Series A, 5.00%, 4/01/31

 

 

500

 

 

452,120

 

Kaiser, Series C, Remarketed, 5.25%, 8/01/31

 

 

500

 

 

467,240

 

 

 

 

 

 




 

 

 

 

 

 

1,907,910

 









State — 15.2%

 

 

 

 

 

 

 

California State Public Works Board, RB, Department Corrections & Rehabilitation, Series H, 5.00%, 11/01/31

 

 

500

 

 

435,665

 

California State Public Works Board, RB, Department Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

 

 

340

 

 

359,193

 

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

 

 

625

 

 

565,481

 

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

 

 

490

 

 

529,749

 

 

 

 

 

 




 

 

 

 

 

 

1,890,088

 









Transportation — 15.0%

 

 

 

 

 

 

 

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

 

 

500

 

 

508,135

 

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

 

 

250

 

 

242,528

 

Los Angeles Department of Airports, Refunding RB, Ontario International Airport, Series A (MBIA), AMT, 5.00%, 5/15/26

 

 

510

 

 

474,830

 

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

 

 

495

 

 

462,429

 

San Francisco City & County Airports Commission, Refunding RB, 2nd Series A-3, AMT, 6.75%, 5/01/19

 

 

175

 

 

183,418

 

 

 

 

 

 




 

 

 

 

 

 

1,871,340

 









Utilities — 26.4%

 

 

 

 

 

 

 

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

 

 

400

 

 

407,000

 

Chino Basin Regional Financing Authority, California, RB, Inland Empire Utility Agency, Series A (AMBAC), 5.00%, 11/01/33

 

 

500

 

 

482,260

 


 


Portfolio Abbreviations


To simplify the listings of portfolio holdings in each Trust’s Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bond

BAN

Bond Anticipation Note

CAB

Capital Appreciation Bonds

CIFG

CDC IXIS Financial Guaranty

COP

Certificates of Participation

EDA

Economic Development Authority

FGIC

Financial Guaranty Insurance Co.

FHA

Federal Housing Administration

FNMA

Federal National Mortgage Association

FSA

Financial Security Assurance Inc.

GNMA

Government National Mortgage Association

GO

General Obligation Bonds

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

MBIA

Municipal Bond Investors Assurance

 

(National Public Finance Guaranty Corp.)

PILOT

Payment in Lieu of Taxes

RB

Revenue Bonds

S/F

Single-Family

TAN

Tax Anticipation Notes

VHA

Veterans Hospital Administration

XLCA

XL Capital Assured


 

 

 

See Notes to Financial Statements.


14

ANNUAL REPORT

JULY 31, 2009




 

 


 

Schedule of Investments (concluded)

BlackRock California Investment Quality Municipal Trust Inc. (RAA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 









Utilities (concluded)

 

 

 

 

 

 

 

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

 

$

600

 

$

620,898

 

Eastern Municipal Water District, California, COP, Series H, 5.00%, 7/01/35

 

 

285

 

 

271,089

 

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

 

 

500

 

 

487,915

 

San Diego Public Facilities Financing Authority, RB, Senior, Series A, 5.25%, 5/15/39

 

 

250

 

 

243,695

 

San Diego Public Facilities Financing Authority, Refunding RB, Series A, 5.25%, 8/01/38

 

 

500

 

 

486,930

 

Southern California Public Power Authority, RB, Transmission (MBIA), 5.50%, 7/01/20

 

 

40

 

 

40,119

 

Western Municipal Water District Facilities Authority, RB, Series B, 5.00%, 10/01/39

 

 

250

 

 

238,390

 

 

 

 

 

 




 

 

 

 

 

 

3,278,296

 









Total Municipal Bonds in California

 

 

 

 

 

15,775,588

 









 

 

 

 

 

 

 

 









Puerto Rico — 4.4%

 

 

 

 

 

 

 









Education — 4.4%

 

 

 

 

 

 

 

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

 

 

700

 

 

544,880

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

544,880

 









Total Municipal Bonds — 131.2%

 

 

 

 

 

16,320,468

 










 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (a)

 

 

 

 

 

 

 









California — 16.8%

 

 

 

 

 

 

 









County/City/Special District/School District — 12.3%

 

 

 

 

 

 

 

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

 

 

480

 

 

516,296

 

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

 

 

509

 

 

516,834

 

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

 

 

495

 

 

491,848

 

 

 

 

 

 




 

 

 

 

 

 

1,524,978

 









Education — 2.6%

 

 

 

 

 

 

 

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

 

 

300

 

 

322,272

 









Utilities — 1.9%

 

 

 

 

 

 

 

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

 

 

250

 

 

239,778

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 16.8%

 

 

 

 

 

2,087,028

 









Total Long-Term Investments
(Cost — $18,953,553) — 148.0%

 

 

 

 

 

18,407,496

 










 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 









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

 

 

1,637,526

 

$

1,637,526

 









Total Short-Term Securities
(Cost — $1,637,526) — 13.1%

 

 

 

 

 

1,637,526

 









Total Investments (Cost — $20,591,079*) — 161.1%

 

 

 

 

 

20,045,022

 

 

Liabilities in Excess of Other Assets — (3.6)%

 

 

 

 

 

(445,496

)

 

Liability for Trust Certificates, Including Interest Expense and Fees
Payable — (9.9)%

 

 

 

 

 

(1,233,307

)

 

Preferred Shares, at Redemption Value — (47.6)%

 

 

 

 

 

(5,925,376

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

12,440,843

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

19,381,083

 

 

 




Gross unrealized appreciation

 

$

230,421

 

Gross unrealized depreciation

 

 

(799,365

)

 

 




Net unrealized depreciation

 

$

(568,944

)

 

 





 

 

(a)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired the 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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







CMA California Municipal Money Fund

 

 

1,105,390

 

$

6,325

 










 

 

 

(c)

Represents the current yield as of report date.

 

 

Effective August 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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 methodology 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, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

1,637,526

 

Level 2 — Long-Term Investments1

 

 

18,407,496

 

Level 3

 

 

 

 

 




Total

 

$

20,045,022

 

 

 





 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

JULY 31, 2009

15




 

 


 

Schedule of Investments July 31, 2009

BlackRock California Municipal Income Trust (BFZ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California — 109.5%

 

 

 

 

 

 

 









Corporate — 3.3%

 

 

 

 

 

 

 

California Pollution Control Financing Authority, RB, Waste Management Inc. Project, Series C, AMT, 6.75%, 12/01/27

 

$

2,475

 

$

2,546,725

 

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

 

 

680

 

 

689,316

 

Los Angeles Regional Airports Improvement Corp., California, RB, Series C, AMT, 7.50%, 12/01/24

 

 

4,110

 

 

3,181,921

 

 

 

 

 

 




 

 

 

 

 

 

6,417,962

 









County/City/Special District/School District — 36.8%

 

 

 

 

 

 

 

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

 

 

4,425

 

 

4,555,316

 

Chino Basin Desalter Authority, Refunding RB, Series A (AGC), 5.00%, 6/01/35

 

 

5,275

 

 

5,010,670

 

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

 

 

 

 

 

 

 

5.60%, 12/01/29

 

 

7,485

 

 

2,001,190

 

5.60%, 12/01/30

 

 

7,485

 

 

1,855,457

 

5.60%, 12/01/31

 

 

7,485

 

 

1,708,975

 

Huntington Beach Union High School District, California, GO, CAB, Election of 2004 (FGIC), 5.02%, 8/01/33 (a)

 

 

5,000

 

 

969,750

 

Lathrop Financing Authority, RB, Water Supply Project:

 

 

 

 

 

 

 

5.90%, 6/01/27

 

 

2,855

 

 

2,290,224

 

6.00%, 6/01/35

 

 

5,140

 

 

3,871,859

 

Live Oak Unified School District, GO, CAB, Election of 2004, Series B, (Syncora) (a)(b):

 

 

 

 

 

 

 

5.59%, 8/01/18

 

 

985

 

 

294,377

 

5.60%, 8/01/18

 

 

1,030

 

 

290,800

 

5.61%, 8/01/18

 

 

1,080

 

 

287,993

 

5.62%, 8/01/18

 

 

1,125

 

 

283,297

 

5.63%, 8/01/18

 

 

1,175

 

 

279,368

 

5.64%, 8/01/18

 

 

1,230

 

 

276,061

 

5.65%, 8/01/18

 

 

1,285

 

 

272,189

 

5.66%, 8/01/18

 

 

1,340

 

 

267,826

 

5.67%, 8/01/18

 

 

1,400

 

 

263,984

 

5.68%, 8/01/18

 

 

1,465

 

 

260,565

 

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

 

 

2,135

 

 

2,237,032

 

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

 

 

2,570

 

 

2,602,459

 

Modesto Irrigation District, COP, Series B, 5.50%, 7/01/35

 

 

3,300

 

 

3,250,533

 

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

 

 

2,500

 

 

2,581,100

 

Rancho Cucamonga Redevelopment Agency, California, TAN, Rancho Redevelopment Project (MBIA), 5.13%, 9/01/30

 

 

15,500

 

 

13,487,790

 

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

 

 

2,900

 

 

2,901,073

 

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

 

 

2,875

 

 

2,794,615

 

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

 

 

8,000

 

 

7,695,600

 

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

 

 

1,200

 

 

1,220,712

 

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

 

 

2,500

 

 

2,649,825

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (continued)

 

 

 

 

 

 

 









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

 

 

 

 

 

 

 

Val Verde Unified School District, California, Special Tax, Refunding, Junior Lien, 6.25%, 10/01/28

 

$

2,245

 

$

1,974,163

 

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

 

 

2,350

 

 

2,440,710

 

 

 

 

 

 




 

 

 

 

 

 

70,875,513

 









Education — 9.4%

 

 

 

 

 

 

 

California Infrastructure & Economic Development Bank, RB, J David Gladstone Institute Project, 5.25%, 10/01/34

 

 

15,250

 

 

14,069,955

 

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

 

 

4,000

 

 

4,058,400

 

 

 

 

 

 




 

 

 

 

 

 

18,128,355

 









Health — 18.2%

 

 

 

 

 

 

 

ABAG Finance Authority for Nonprofit Corps, RB, Sharp Healthcare, 6.25%, 8/01/39

 

 

3,000

 

 

2,991,930

 

California Health Facilities Financing Authority, California, RB, Catholic Healthcare West, Series A, 6.00%, 7/01/34

 

 

3,000

 

 

2,916,750

 

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

 

 

13,500

 

 

13,314,510

 

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

 

 

 

 

 

 

 

Series B, 5.50%, 7/01/30

 

 

3,000

 

 

2,765,460

 

Series E, 5.50%, 7/01/31

 

 

2,000

 

 

1,828,840

 

California Statewide Communities Development Authority, RB:

 

 

 

 

 

 

 

Daughters of Charity Health, Series A, 5.25%, 7/01/30

 

 

2,000

 

 

1,565,360

 

Sutter Health, Series B, 5.63%, 8/15/42

 

 

10,000

 

 

9,587,900

 

 

 

 

 

 




 

 

 

 

 

 

34,970,750

 









Housing — 3.3%

 

 

 

 

 

 

 

City of San Jose California, RB, Villages Parkway Senior Apartments, Series D (FNMA), AMT, 5.50%, 4/01/34

 

 

3,595

 

 

3,356,040

 

Santa Clara County Housing Authority, California, RB, Series A:

 

 

 

 

 

 

 

John Burns Gardens Apartments Project, AMT, 5.85%, 8/01/31

 

 

1,715

 

 

1,731,172

 

Rivertown Apartments Project, AMT, 6.00%, 8/01/41

 

 

1,235

 

 

1,232,209

 

 

 

 

 

 




 

 

 

 

 

 

6,319,421

 









State — 10.4%

 

 

 

 

 

 

 

California State Public Works Board, RB, Department Development Services, Porterville, Series C:

 

 

 

 

 

 

 

6.00%, 4/01/26

 

 

1,165

 

 

1,181,951

 

6.00%, 4/01/27

 

 

1,355

 

 

1,371,707

 

California State Public Works Board, RB, Department Education, Riverside Campus Project, Series B:

 

 

 

 

 

 

 

6.00%, 4/01/27

 

 

1,675

 

 

1,695,653

 

6.50%, 4/01/34

 

 

5,000

 

 

5,282,250

 

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

 

 

9,700

 

 

10,486,864

 

 

 

 

 

 




 

 

 

 

 

 

20,018,425

 









Transportation — 15.7%

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,048,810

 

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

 

 

1,350

 

 

1,309,649

 


 

 

 

See Notes to Financial Statements.


16

ANNUAL REPORT

JULY 31, 2009




 

 


 

Schedule of Investments (continued)

BlackRock California Municipal Income Trust (BFZ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 









Transportation (concluded)

 

 

 

 

 

 

 

Foothill Eastern Transportation Corridor Agency, California, Refunding RB:

 

 

 

 

 

 

 

5.75%, 1/15/40

 

$

10,030

 

$

7,773,451

 

CAB, 5.88%, 1/15/26 (c)

 

 

5,000

 

 

4,237,750

 

CAB, 6.09%, 1/15/33 (a)

 

 

5,000

 

 

666,300

 

CAB, 6.09%, 1/15/34 (a)

 

 

5,000

 

 

611,400

 

CAB, 6.18%, 1/15/35 (a)

 

 

13,445

 

 

1,508,798

 

Port of Oakland, RB (MBIA), AMT:

 

 

 

 

 

 

 

Series K, AMT, 5.75%, 11/01/29

 

 

3,970

 

 

3,708,774

 

Series L, 5.38%, 11/01/27

 

 

3,710

 

 

3,377,955

 

San Francisco City & County Airports Commission, Refunding RB, 2nd Series A-3, AMT, 6.75%, 5/01/19

 

 

3,775

 

 

3,956,577

 

 

 

 

 

 




 

 

 

 

 

 

30,199,464

 









Utilities — 12.4%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,543,750

 

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

 

 

5,475

 

 

5,488,961

 

City of Richmond California, RB, CAB (FGIC), 5.76%, 8/01/31 (a)(d)

 

 

1,905

 

 

623,735

 

Los Angeles Department of Water & Power, RB, System, Series A:

 

 

 

 

 

 

 

5.38%, 7/01/34

 

 

1,400

 

 

1,420,076

 

5.38%, 7/01/38

 

 

1,800

 

 

1,820,466

 

San Diego County Water Authority, COP, Series 2008 A, COP (FSA), 5.00%, 5/01/33

 

 

6,040

 

 

5,916,180

 

San Diego Public Facilities Financing Authority, RB, Senior, Series A:

 

 

 

 

 

 

 

5.25%, 5/15/34

 

 

4,000

 

 

3,961,880

 

5.25%, 5/15/39

 

 

2,250

 

 

2,193,255

 

 

 

 

 

 




 

 

 

 

 

 

23,968,303

 









Total Municipal Bonds in California

 

 

 

 

 

210,898,193

 









 

 

 

 

 

 

 

 









Multi-State (e)(f) — 6.1%

 

 

 

 

 

 

 









Housing — 6.1%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 6.80%, 11/30/50

 

 

4,000

 

 

4,131,920

 

MuniMae TE Bond Subsidiary LLC, 6.30%, 6/30/49

 

 

7,000

 

 

5,669,860

 

MuniMae TE Bond Subsidiary LLC, 6.80%, 6/30/50

 

 

3,000

 

 

1,949,310

 









Total Municipal Bonds in Multi-State

 

 

 

 

 

11,751,090

 









Total Municipal Bonds — 115.6%

 

 

 

 

 

222,649,283

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

Par
(000)

 

Value

 







California — 47.3%

 

 

 

 

 

 

 









County/City/Special District/School District — 23.9%

 

 

 

 

 

 

 

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

 

$

9,596

 

$

10,325,918

 

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

 

 

10,770

 

 

10,365,479

 

San Diego Community College District, California, GO, Election 2002 (FSA):

 

 

 

 

 

 

 

5.00%, 5/01/25

 

 

10,615

 

 

10,831,763

 

5.25%, 8/01/33

 

 

4,487

 

 

4,560,305

 

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

 

 

10,000

 

 

9,942,169

 

 

 

 

 

 




 

 

 

 

 

 

46,025,634

 









Education — 19.2%

 

 

 

 

 

 

 

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

 

 

10,000

 

 

10,228,912

 

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

 

 

6,900

 

 

7,112,106

 

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

 

 

5,000

 

 

4,815,550

 

San Diego Community College District, California, GO, Election 2006 (FSA), 5.00%, 8/01/32

 

 

9,000

 

 

8,748,360

 

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

 

 

5,595

 

 

6,010,373

 

 

 

 

 

 




 

 

 

 

 

 

36,915,301

 









Utilities — 4.2%

 

 

 

 

 

 

 

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

 

 

8,356

 

 

8,018,201

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 47.3%

 

 

 

 

 

90,959,136

 









Total Long-Term Investments
(Cost — $329,769,436) — 162.9%

 

 

 

 

 

313,608,419

 










 

 

 

 

 

 

 

 


 

Short-Term Securities

 

Shares

 

 

 

 









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

 

 

3,630,796

 

 

3,630,796

 









Total Short-Term Securities
(Cost — $3,630,796) — 1.9%

 

 

 

 

 

3,630,796

 









Total Investments (Cost — $333,400,232*) — 164.8%

 

 

 

 

 

317,239,215

 

 

Other Assets Less Liabilities — 1.4%

 

 

 

 

 

2,748,839

 

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (29.3)%

 

 

 

 

 

(56,432,724

)

 

Preferred Shares, at Redemption Value — (36.9)%

 

 

 

 

 

(71,004,510

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

192,550,820

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

JULY 31, 2009

17




 

 


 

Schedule of Investments (concluded)

BlackRock California Municipal Income Trust (BFZ)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

276,419,926

 

 

 




Gross unrealized appreciation

 

$

3,850,332

 

Gross unrealized depreciation

 

 

(19,409,820

)

 

 




Net unrealized depreciation

 

$

(15,559,488

)

 

 





 

 

(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)

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 is as of report date.

 

 

(d)

Security is collateralized by Municipal or US Treasury Obligations.

 

 

(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, and is subject to mandatory redemption at maturity.

 

 

(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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







CMA California Municipal Money Fund

 

 

(13,825,340

)

$

75,890

 










 

 

 

(i)

Represents the current yield as of report date.

 

 

Effective August 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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 methodology 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, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

3,630,796

 

Level 2 — Long-Term Investments1

 

 

313,608,419

 

Level 3

 

 

 

 

 




Total

 

$

317,239,215

 

 

 





 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.


18

ANNUAL REPORT

JULY 31, 2009



 

 


 

 

Schedule of Investments July 31, 2009

BlackRock Florida Municipal 2020 Term Trust (BFO)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Florida — 148.2%

 

 

 

 

 

 

 









Corporate — 8.3%

 

 

 

 

 

 

 

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

 

$

4,000

 

$

3,265,200

 

Hillsborough County IDA, RB, Tampa Electric Co. Project, 5.50%, 10/01/23

 

 

1,955

 

 

1,896,858

 

Hillsborough County IDA, RB, Tampa Electric, Series A, Remarketed, 5.65%, 5/15/18

 

 

1,000

 

 

1,015,820

 

 

 

 

 

 




 

 

 

 

 

 

6,177,878

 









County/City/Special District/School District — 69.7%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,589,900

 

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

 

 

5,545

 

 

5,820,864

 

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

 

 

7,560

 

 

1,531,505

 

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

 

 

 

 

 

 

 

5.31%, 10/01/19

 

 

5,365

 

 

2,931,221

 

5.29%, 10/01/20

 

 

10,000

 

 

5,095,500

 

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

 

 

2,200

 

 

2,243,714

 

Crossings At Fleming Island Community Development District, RB, 6.75%, 10/01/09 (b)

 

 

4,400

 

 

4,529,404

 

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

 

 

1,000

 

 

997,610

 

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

 

 

2,000

 

 

2,284,700

 

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

 

 

4,000

 

 

4,147,320

 

Northern Palm Beach County Improvement District, RB, Water Control & Improvement 43:

 

 

 

 

 

 

 

6.10%, 8/01/11 (b)

 

 

2,735

 

 

2,968,514

 

6.10%, 8/01/21

 

 

380

 

 

351,089

 

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

 

 

 

 

 

 

 

4.50%, 8/01/22

 

 

1,000

 

 

658,620

 

5.00%, 8/01/31

 

 

1,000

 

 

585,360

 

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

 

 

4,105

 

 

3,771,428

 

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

 

 

2,425

 

 

1,920,479

 

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

 

 

1,300

 

 

1,074,814

 

Village Center Community Development District Recreational RB, Sub-Series B, 6.35%, 1/01/18

 

 

2,000

 

 

1,818,700

 

Village Center Community Development District Utility RB (MBIA), 5.25%, 10/01/23

 

 

5,000

 

 

4,654,100

 

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

 

 

1,310

 

 

1,271,289

 

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

 

 

1,000

 

 

525,370

 

 

 

 

 

 




 

 

 

 

 

 

51,771,501

 









Education — 1.0%

 

 

 

 

 

 

 

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

 

 

725

 

 

753,398

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Florida (concluded)

 

 

 

 

 

 

 









Health — 17.2%

 

 

 

 

 

 

 

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

 

$

471

 

$

486,957

 

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

 

 

2,500

 

 

2,199,075

 

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

 

 

1,500

 

 

1,466,925

 

Lee County IDA, Florida, Refunding RB, Shell Point, Alliance Community Project, 5.00%, 11/15/22

 

 

1,500

 

 

1,123,605

 

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

 

 

1,500

 

 

1,316,115

 

Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai Medical Center Florida, 6.75%, 11/15/21

 

 

1,310

 

 

1,106,164

 

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

 

 

4,450

 

 

5,030,725

 

 

 

 

 

 




 

 

 

 

 

 

12,729,566

 









Housing — 4.1%

 

 

 

 

 

 

 

Florida Housing Finance Corporation, RB, Homeowner Mortgage, Series 2 (GNMA), AMT, 4.70%, 7/01/22

 

 

2,165

 

 

2,090,069

 

Jacksonville HFA, RB, Series A-1 (GNMA), AMT, 5.63%, 10/01/39

 

 

935

 

 

953,803

 

 

 

 

 

 




 

 

 

 

 

 

3,043,872

 









State — 15.3%

 

 

 

 

 

 

 

Florida Municipal Loan Council, RB, CAB, Series A (MBIA), 5.17%, 4/01/20 (a)

 

 

4,000

 

 

2,337,560

 

Florida State Board of Education, GO, Public Education:

 

 

 

 

 

 

 

Series I, 5.00%, 6/01/18

 

 

500

 

 

543,625

 

Series J (AMBAC), 5.00%, 6/01/24

 

 

6,150

 

 

6,398,521

 

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

 

 

2,000

 

 

2,047,040

 

 

 

 

 

 




 

 

 

 

 

 

11,326,746

 









Transportation — 4.0%

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,001,140

 









Utilities — 28.6%

 

 

 

 

 

 

 

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

 

 

1,095

 

 

1,105,578

 

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

 

 

1,000

 

 

1,011,310

 

City of Marco Island Florida, RB (MBIA):

 

 

 

 

 

 

 

5.25%, 10/01/21

 

 

1,000

 

 

1,014,480

 

5.00%, 10/01/22

 

 

2,000

 

 

2,000,600

 

5.00%, 10/01/23

 

 

1,375

 

 

1,361,154

 

City of Palm Coast Florida, RB (MBIA):

 

 

 

 

 

 

 

5.00%, 10/01/22

 

 

1,770

 

 

1,783,965

 

5.00%, 10/01/23

 

 

1,485

 

 

1,493,212

 

5.00%, 10/01/24

 

 

1,500

 

 

1,506,045

 

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

 

 

1,165

 

 

992,592

 

Tohopekaliga Water Authority, RB (FSA):

 

 

 

 

 

 

 

Series A, 5.00%, 10/01/21

 

 

3,630

 

 

3,700,386

 

Series A, 5.00%, 10/01/23

 

 

2,000

 

 

2,024,600

 

Series B, 5.00%, 10/01/22

 

 

1,975

 

 

2,023,328

 

Series B, 5.00%, 10/01/23

 

 

1,180

 

 

1,203,919

 

 

 

 

 

 




 

 

 

 

 

 

21,221,169

 









Total Municipal Bonds in Florida

 

 

 

 

 

110,025,270

 










 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

JULY 31, 2009

19




 

 


 

 

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 — 1.6%

 

 

 

 

 

 

 









Corporate — 1.6%

 

 

 

 

 

 

 

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

 

$

1,500

 

$

1,233,105

 









Total Municipal Bonds in the U.S. Virgin Islands

 

 

 

 

 

1,233,105

 









Total Municipal Bonds — 149.8%

 

 

 

 

 

111,258,375

 

















 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

 

 

 

 

 









County/City/Special District/School District — 8.8%

 

 

 

 

 

 

 

Palm Beach County School Board, Florida, COP, Refunding, Series D (FSA), 5.00%, 8/01/28

 

 

6,510

 

 

6,511,823

 









Housing — 3.2%

 

 

 

 

 

 

 

Manatee County HFA, RB, Series A (GNMA), AMT, 5.90%, 9/01/40

 

 

917

 

 

922,509

 

Lee County HFA, RB, Multi-County Program, Series A-2 (GNMA), AMT, 6.00%, 9/01/40

 

 

1,380

 

 

1,483,528

 

 

 

 

 

 




 

 

 

 

 

 

2,406,037

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 12.0%

 

 

 

 

 

8,917,860

 









Total Long-Term Investments
(Cost — $126,088,078) — 161.8%

 

 

 

 

 

120,176,235

 

















 

Short-Term Securities

 

Shares

 

 

 

 









CMA Florida Municipal Money Fund, 0.04% (d)(e)

 

 

120,735

 

 

120,735

 









Total Short-Term Securities
(Cost — $120,735) — 0.2%

 

 

 

 

 

120,735

 









Total Investments (Cost — $126,208,813*) — 162.0%

 

 

 

 

 

120,296,970

 

 

Other Assets Less Liabilities — 2.1%

 

 

 

 

 

1,531,082

 

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (6.3)%

 

 

 

 

 

(4,667,841

)

 

Preferred Shares, at Redemption Value — (57.8)%

 

 

 

 

 

(42,904,262

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

74,255,949

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

121,518,412

 

 

 




Gross unrealized appreciation

 

$

1,341,818

 

Gross unrealized depreciation

 

 

(7,196,833

)

 

 




Net unrealized depreciation

 

$

(5,855,015

)

 

 





 

 

(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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 









CMA Florida Municipal Money Fund

 

 

(281,811

)

$

19,328

 










 

 

 

(e)

Represents the current yield as of report date.

 

 

 

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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 methodology 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, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short Term Securities

 

$

120,735

 

Level 2 — Long Term Investments1

 

 

120,176,235

 

Level 3

 

 

 

 

 




Total

 

$

120,296,970

 

 

 





 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.




20

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Schedule of Investments July 31, 2009

BlackRock Investment Quality Municipal Income Trust (RFA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California — 14.4%

 

 

 

 

 

 

 

California Health Facilities Financing Authority, California, RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39

 

$

130

 

$

125,787

 

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

 

 

300

 

 

304,530

 

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

 

 

615

 

 

617,491

 

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

 

 

240

 

 

240,089

 

San Francisco City & County Airports Commission, Refunding RB, 2nd Series A-3, AMT, 6.75%, 5/01/19

 

 

500

 

 

524,050

 

 

 

 

 

 




 

 

 

 

 

 

1,811,947

 









Florida — 34.3%

 

 

 

 

 

 

 

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

 

 

215

 

 

150,874

 

Ave Maria Stewardship Community Development District, Special Assessment, BAN, 4.80%, 11/01/12

 

 

500

 

 

340,650

 

Broward County, HFA, RB, Series E, AMT, 5.90%, 10/01/39

 

 

215

 

 

216,888

 

Capital Region Community Development District, Florida, Special Assessment, Capital Improvement, Series A, 7.00%, 5/01/39

 

 

125

 

 

91,059

 

City of Boynton Beach Florida, Refunding RB (FGIC), 6.25%, 11/01/20 (a)

 

 

170

 

 

208,610

 

County of Miami-Dade Florida, RB, Miami International Airport, Series A (FSA), AMT, 5.50%, 10/01/41

 

 

115

 

 

103,255

 

County of Miami-Dade Florida, RB, Sub-Series B (MBIA), 5.65%, 10/01/31 (b)

 

 

5,000

 

 

1,091,700

 

County of Saint Johns Florida, RB, CAB (AMBAC), 5.40%, 6/01/32 (b)

 

 

1,000

 

 

242,230

 

Florida Higher Educational Facilities Financial Authority, RB, Flagler College Inc. Project (Syncora), 5.25%, 11/01/36

 

 

555

 

 

461,249

 

Heritage Harbour North Community Development District, Special Assessment, 6.38%, 5/01/38

 

 

240

 

 

161,928

 

Jacksonville Economic Development Commission, RB, Metropolitan Parking Solutions Project (ACA), AMT, 5.50%, 10/01/30

 

 

500

 

 

383,815

 

Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai Medical Center Florida, 6.75%, 11/15/21

 

 

230

 

 

194,212

 

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

 

 

250

 

 

107,790

 

Tolomato Community Development District, Special Assessment, Special Assessment, 6.55%, 5/01/27

 

 

250

 

 

181,393

 

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

 

 

450

 

 

366,345

 

 

 

 

 

 




 

 

 

 

 

 

4,301,998

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Georgia — 4.4%

 

 

 

 

 

 

 

Municipal Electric Authority of Georgia, RB, General Resolution Projects, Sub-Series D, 6.00%, 1/01/23

 

$

500

 

$

556,120

 









Illinois — 4.2%

 

 

 

 

 

 

 

Illinois Finance Authority, RB, Series A:

 

 

 

 

 

 

 

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

 

 

250

 

 

258,368

 

Rush University Medical Center Obligation Group, 7.25%, 11/01/30

 

 

250

 

 

266,425

 

 

 

 

 

 




 

 

 

 

 

 

524,793

 









Indiana — 2.8%

 

 

 

 

 

 

 

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

 

 

335

 

 

347,914

 









Kansas — 2.0%

 

 

 

 

 

 

 

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

 

 

250

 

 

250,953

 









Kentucky — 3.5%

 

 

 

 

 

 

 

Louisville & Jefferson County Metropolitan Government RB:

 

 

 

 

 

 

 

Jewish Hospital Saint Marys Healthcare, 6.13%, 2/01/37

 

 

215

 

 

214,290

 

Parking Authority, Series A, 5.75%, 12/01/34

 

 

220

 

 

231,321

 

 

 

 

 

 




 

 

 

 

 

 

445,611

 









Maine — 1.9%

 

 

 

 

 

 

 

Maine State Housing Authority, Maine, RB, Series C, AMT, 5.45%, 11/15/23

 

 

235

 

 

235,101

 









Massachusetts — 6.0%

 

 

 

 

 

 

 

Massachusetts HFA, Massachusetts, RB, Housing, Series F, AMT, 5.70%, 6/01/40

 

 

250

 

 

239,497

 

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

 

 

250

 

 

260,810

 

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

 

 

250

 

 

256,428

 

 

 

 

 

 




 

 

 

 

 

 

756,735

 









Michigan — 5.0%

 

 

 

 

 

 

 

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

 

 

250

 

 

257,092

 

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

 

 

325

 

 

366,623

 

 

 

 

 

 




 

 

 

 

 

 

623,715

 









Nevada — 2.1%

 

 

 

 

 

 

 

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

 

 

250

 

 

263,645

 










 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

JULY 31, 2009

21




 

 


 

 

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 — 3.7%

 

 

 

 

 

 

 

New Jersey EDA, Refunding RB, School Facilities Construction, Series AA, 5.50%, 12/15/29

 

$

250

 

$

263,817

 

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

 

 

190

 

 

201,286

 

 

 

 

 

 




 

 

 

 

 

 

465,103

 









New York — 6.3%

 

 

 

 

 

 

 

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

 

 

250

 

 

249,620

 

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

 

 

300

 

 

305,196

 

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

 

 

225

 

 

232,542

 

 

 

 

 

 




 

 

 

 

 

 

787,358

 









Pennsylvania — 7.6%

 

 

 

 

 

 

 

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

 

 

300

 

 

312,132

 

Pennsylvania Turnpike Commission, RB:

 

 

 

 

 

 

 

Sub-Series B, 5.25%, 6/01/39

 

 

425

 

 

410,563

 

Sub-Series C (AGC), 6.25%, 6/01/38

 

 

215

 

 

237,564

 

 

 

 

 

 




 

 

 

 

 

 

960,259

 









Puerto Rico — 4.8%

 

 

 

 

 

 

 

Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

 

 

225

 

 

225,248

 

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

 

 

385

 

 

380,773

 

 

 

 

 

 




 

 

 

 

 

 

606,021

 









Texas — 7.0%

 

 

 

 

 

 

 

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

 

 

140

 

 

146,924

 

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

 

 

250

 

 

269,850

 

Houston Texas Airport Systems Revenue, ARB, Refunding, Senior Lien, Series A, 5.50%, 7/01/39

 

 

85

 

 

83,345

 

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

 

 

120

 

 

123,857

 

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

 

 

250

 

 

260,690

 

 

 

 

 

 




 

 

 

 

 

 

884,666

 









Virginia — 2.2%

 

 

 

 

 

 

 

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

 

 

250

 

 

279,455

 









Total Municipal Bonds — 112.2%

 

 

 

 

 

14,101,394

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 









California — 10.7%

 

 

 

 

 

 

 

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

 

$

300

 

$

309,222

 

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

 

 

700

 

 

752,932

 

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

 

 

60

 

 

57,787

 

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

 

 

210

 

 

225,590

 

 

 

 

 

 




 

 

 

 

 

 

1,345,531

 









District of Columbia — 4.1%

 

 

 

 

 

 

 

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

 

 

195

 

 

209,625

 

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

 

 

300

 

 

311,804

 

 

 

 

 

 




 

 

 

 

 

 

521,429

 









Florida — 9.2%

 

 

 

 

 

 

 

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

 

 

280

 

 

253,607

 

JEA, RB, Issue Three, Series Two, River Power Park, 5.00%, 10/01/37

 

 

210

 

 

201,415

 

Lee County HFA, RB, Multi-County Program, Series A-2 (GNMA), AMT, 6.00%, 9/01/40

 

 

450

 

 

483,759

 

Manatee County HFA, RB, Series A (GNMA), AMT, 5.90%, 9/01/40

 

 

220

 

 

221,564

 

 

 

 

 

 




 

 

 

 

 

 

1,160,345

 









Illinois — 5.6%

 

 

 

 

 

 

 

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

 

 

400

 

 

441,044

 

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

 

 

250

 

 

261,417

 

 

 

 

 

 




 

 

 

 

 

 

702,461

 









Nevada — 4.2%

 

 

 

 

 

 

 

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

 

 

500

 

 

533,000

 









New Hampshire — 1.4%

 

 

 

 

 

 

 

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

 

 

165

 

 

171,855

 









New York — 4.2%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

240

 

 

257,047

 

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

 

 

255

 

 

267,896

 

 

 

 

 

 




 

 

 

 

 

 

524,943

 









South Carolina — 4.3%

 

 

 

 

 

 

 

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

 

 

510

 

 

536,377

 









Texas — 5.6%

 

 

 

 

 

 

 

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

 

 

300

 

 

308,521

 

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

 

 

400

 

 

399,380

 

 

 

 

 

 




 

 

 

 

 

 

707,901

 










 

 

 

See Notes to Financial Statements.




22

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

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 (e)

 

Par
(000)

 

Value

 









Virginia — 1.1%

 

 

 

 

 

 

 

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

 

$

130

 

$

132,161

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 50.4%

 

 

 

 

 

6,336,003

 









Total Long-Term Investments
(Cost — $21,059,938) — 162.6%

 

 

 

 

 

20,437,397

 









 









 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.42% (f)(g)

 

 

100,105

 

 

100,105

 









Total Short-Term Securities
(Cost — $100,105) — 0.8%

 

 

 

 

 

100,105

 









Total Investments (Cost — $21,160,043*) — 163.4%

 

 

 

 

 

20,537,502

 

 

Other Assets Less Liabilities — 1.1%

 

 

 

 

 

131,224

 

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (28.1)%

 

 

 

 

 

(3,528,242

)

 

Preferred Shares, at Redemption Value — (36.4)%

 

 

 

 

 

(4,575,218

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

12,565,266

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

17,680,547

 

 

 




Gross unrealized appreciation

 

$

656,592

 

Gross unrealized depreciation

 

 

(1,323,747

)

 

 




Net unrealized depreciation

 

$

(667,155

)

 

 





 

 

(a)

Security is collateralized by Municipal or US Treasury Obligations.

 

 

(b)

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

 

 

(c)

Non-income producing security.

 

 

(d)

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

 

 

(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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







CMA Florida Municipal Money Fund

 

 

(519,263

)

$

10,238

 

FFI Institutional Tax-Exempt Fund

 

 

100,105

 

$

485

 










 

 

 

(g)

Represents the current yield as of report date.

 

 

 

Effective August 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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 methodology 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, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

100,105

 

Level 2 — Long-Term Investments1

 

 

20,437,397

 

Level 3

 

 

 

 

 




Total

 

$

20,537,502

 

 

 





 

 

 

 

1

See above Schedule of Investments for values in each state.


 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

JULY 31, 2009

23



 

 


 

 

Schedule of Investments July 31, 2009

BlackRock Municipal Income Investment Trust (BBF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California — 10.3%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.9%

 

 

 

 

 

 

 

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

 

$

1,600

 

$

1,600,592

 









Health — 1.0%

 

 

 

 

 

 

 

California Health Facilities Financing Authority, California, RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39

 

 

890

 

 

861,155

 









State — 2.5%

 

 

 

 

 

 

 

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

 

 

2,075

 

 

2,106,332

 









Utilities — 4.9%

 

 

 

 

 

 

 

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

 

 

4,210

 

 

4,227,050

 









Total Municipal Bonds in California

 

 

 

 

 

8,795,129

 









 

 

 

 

 

 

 

 









District of Columbia — 1.2%

 

 

 

 

 

 

 









Utilities — 1.2%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,033,740

 









Total Municipal Bonds in District of Columbia

 

 

 

 

 

1,033,740

 









 

 

 

 

 

 

 

 









Florida — 54.0%

 

 

 

 

 

 

 









County/City/Special District/School District — 29.0%

 

 

 

 

 

 

 

Ave Maria Stewardship Community Development District, Special Assessment, BAN, 4.80%, 11/01/12

 

 

1,000

 

 

681,300

 

Capital Region Community Development District, Florida, Special Assessment, Capital Improvement, Series A, 7.00%, 5/01/39

 

 

640

 

 

466,221

 

City of Jacksonville Florida, RB (MBIA), 5.00%, 10/01/26

 

 

4,000

 

 

4,034,040

 

County of Miami-Dade Florida, RB (a):

 

 

 

 

 

 

 

Sub-Series B (MBIA), 5.61%, 10/01/33

 

 

9,700

 

 

1,825,637

 

Sub-Series C (MBIA), 5.63%, 10/01/28

 

 

23,630

 

 

6,534,876

 

Heritage Harbour North Community Development District, Special Assessment, 6.38%, 5/01/38

 

 

1,430

 

 

964,821

 

Laguna Lakes Community Development District, Florida, RB, Series A, 6.40%, 5/01/13 (b)

 

 

1,550

 

 

1,827,450

 

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

 

 

1,500

 

 

646,740

 

Northern Palm Beach County Improvement District, RB:

 

 

 

 

 

 

 

Water Control & Improvement, Unit Development No. 43, 6.13%, 8/01/11 (b)

 

 

2,950

 

 

3,291,551

 

Water Control & Improvement 43, 6.10%, 8/01/11 (b)

 

 

1,155

 

 

1,253,614

 

Balance, Water Control Improvement 43, 6.10%, 8/01/11

 

 

155

 

 

143,208

 

Tolomato Community Development District, Special Assessment, Special Assessment, 6.55%, 5/01/27

 

 

1,250

 

 

906,963

 

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

 

 

1,795

 

 

1,461,310

 

Village Community Development District No. 5, Florida, Special Assessment, Series A, 6.50%, 5/01/33

 

 

65

 

 

65,545

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Florida (concluded)

 

 

 

 

 

 

 









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

 

 

 

 

 

 

 

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

 

$

1,000

 

$

525,370

 

 

 

 

 

 




 

 

 

 

 

 

24,628,646

 









Education — 9.9%

 

 

 

 

 

 

 

Capital Projects Finance Authority, RB, Capital Projects Loan Program, Senior Series F-1 (MBIA), 5.00%, 10/01/31

 

 

2,185

 

 

1,733,579

 

City of Tampa Florida, RB, University Tampa Project (Radian), 5.63%, 4/01/32

 

 

5,400

 

 

4,854,870

 

Volusia County Educational Facility Authority, RB, Educational Facilities, Embry Riddle Aero, Series A, 5.75%, 10/15/29

 

 

2,000

 

 

1,862,100

 

 

 

 

 

 




 

 

 

 

 

 

8,450,549

 









Health — 7.8%

 

 

 

 

 

 

 

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

 

 

664

 

 

685,873

 

Highlands County Health Facilities Authority, RB, Hospital, Adventist, Sunbelt, Series A, 6.00%, 11/15/11 (b)

 

 

4,150

 

 

4,654,847

 

Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai Medical Center Florida, 6.75%, 11/15/21

 

 

1,565

 

 

1,321,486

 

 

 

 

 

 




 

 

 

 

 

 

6,662,206

 









Transportation — 1.2%

 

 

 

 

 

 

 

Miami-Dade County Expressway Authority, Florida, Refunding RB (MBIA), 5.13%, 7/01/25

 

 

1,000

 

 

1,006,540

 









Utilities — 6.1%

 

 

 

 

 

 

 

City of Tampa Florida, Refunding RB, Series A, 5.00%, 10/01/26

 

 

4,000

 

 

4,054,640

 

County of Saint Johns Florida, RB, CAB (AMBAC), 5.34%, 6/01/30 (a)

 

 

3,945

 

 

1,098,919

 

 

 

 

 

 




 

 

 

 

 

 

5,153,559

 









Total Municipal Bonds in Florida

 

 

 

 

 

45,901,500

 









 

 

 

 

 

 

 

 









Georgia — 3.8%

 

 

 

 

 

 

 









Utilities — 3.8%

 

 

 

 

 

 

 

Municipal Electric Authority of Georgia, RB, General Resolution Projects, Sub-Series D, 6.00%, 1/01/23

 

 

2,900

 

 

3,225,496

 









Total Municipal Bonds in Georgia

 

 

 

 

 

3,225,496

 









 

 

 

 

 

 

 

 









Illinois — 4.3%

 

 

 

 

 

 

 









Health — 4.3%

 

 

 

 

 

 

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,900

 

 

1,963,593

 

Rush University Medical Center Obligation Group, Series B, 7.25%, 11/01/30

 

 

1,600

 

 

1,705,120

 

 

 

 

 

 




 

 

 

 

 

 

3,668,713

 









Total Municipal Bonds in Illinois

 

 

 

 

 

3,668,713

 










 

 

 

See Notes to Financial Statements.


24

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Schedule of Investments (continued)

BlackRock Municipal Income Investment Trust (BBF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Indiana — 2.7%

 

 

 

 

 

 

 









Utilities — 2.7%

 

 

 

 

 

 

 

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

 

$

2,210

 

$

2,295,195

 









Total Municipal Bonds in Indiana

 

 

 

 

 

2,295,195

 









 

 

 

 

 

 

 

 









Kansas — 1.9%

 

 

 

 

 

 

 









Health — 1.9%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,606,096

 









Total Municipal Bonds in Kansas

 

 

 

 

 

1,606,096

 









 

 

 

 

 

 

 

 









Kentucky — 3.6%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.9%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,577,190

 









Health — 1.7%

 

 

 

 

 

 

 

Louisville, Jefferson County Metropolitan Government, RB, Jewish Hospital Saint Marys Healthcare, 6.13%, 2/01/37

 

 

1,450

 

 

1,445,215

 









Total Municipal Bonds in Kentucky

 

 

 

 

 

3,022,405

 









 

 

 

 

 

 

 

 









Massachusetts — 2.1%

 

 

 

 

 

 

 









Education — 1.2%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,043,240

 









State — 0.9%

 

 

 

 

 

 

 

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

 

 

750

 

 

769,282

 









Total Municipal Bonds in Massachusetts

 

 

 

 

 

1,812,522

 









 

 

 

 

 

 

 

 









Michigan — 2.5%

 

 

 

 

 

 

 









Health — 1.3%

 

 

 

 

 

 

 

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

 

 

995

 

 

1,122,430

 









State — 1.2%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,028,370

 









Total Municipal Bonds in Michigan

 

 

 

 

 

2,150,800

 









 

 

 

 

 

 

 

 









Nevada — 2.0%

 

 

 

 

 

 

 









County/City/Special District/School District — 2.0%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,687,328

 









Total Municipal Bonds in Nevada

 

 

 

 

 

1,687,328

 









 

 

 

 

 

 

 

 









New Jersey — 1.6%

 

 

 

 

 

 

 









Transportation — 1.6%

 

 

 

 

 

 

 

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

 

 

1,295

 

 

1,371,923

 









Total Municipal Bonds in New Jersey

 

 

 

 

 

1,371,923

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York — 7.3%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.8%

 

 

 

 

 

 

 

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

 

$

1,500

 

$

1,497,720

 









State — 2.4%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,034,640

 









Transportation — 1.8%

 

 

 

 

 

 

 

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

 

 

1,510

 

 

1,560,615

 









Utilities — 1.3%

 

 

 

 

 

 

 

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

 

 

1,055

 

 

1,116,528

 









Total Municipal Bonds in New York

 

 

 

 

 

6,209,503

 









 

 

 

 

 

 

 

 









Pennsylvania — 4.0%

 

 

 

 

 

 

 









Transportation — 3.4%

 

 

 

 

 

 

 

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

 

 

2,945

 

 

2,844,958

 









Utilities — 0.6%

 

 

 

 

 

 

 

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

 

 

500

 

 

520,220

 









Total Municipal Bonds in Pennsylvania

 

 

 

 

 

3,365,178

 









 

 

 

 

 

 

 

 









Puerto Rico — 4.8%

 

 

 

 

 

 

 









Housing — 1.8%

 

 

 

 

 

 

 

Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

 

 

1,500

 

 

1,501,650

 









State — 3.0%

 

 

 

 

 

 

 

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

 

 

2,605

 

 

2,576,397

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

4,078,047

 









 

 

 

 

 

 

 

 









Texas — 7.3%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.1%

 

 

 

 

 

 

 

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

 

 

890

 

 

934,019

 









Health — 0.6%

 

 

 

 

 

 

 

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

 

 

500

 

 

539,700

 









Transportation — 2.2%

 

 

 

 

 

 

 

Houston Texas Airport Systems Revenue, ARB, Refunding, Senior Lien, Series A, 5.50%, 7/01/39 (e)

 

 

595

 

 

583,415

 

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

 

 

1,250

 

 

1,303,450

 

 

 

 

 

 




 

 

 

 

 

 

1,886,865

 









Utilities — 3.4%

 

 

 

 

 

 

 

Lower Colorado River Authority, Refunding RB:

 

 

 

 

 

 

 

5.75%, 5/15/28

 

 

810

 

 

836,033

 

5.50%, 5/15/33

 

 

2,000

 

 

2,013,360

 

 

 

 

 

 




 

 

 

 

 

 

2,849,393

 









Total Municipal Bonds in Texas

 

 

 

 

 

6,209,977

 










 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

JULY 31, 2009

25




 

 


 

 

Schedule of Investments (continued)

BlackRock Municipal Income Investment Trust (BBF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Virginia — 1.3%

 

 

 

 

 

 

 









State — 1.3%

 

 

 

 

 

 

 

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

 

$

1,000

 

$

1,117,820

 









Total Municipal Bonds in Virginia

 

 

 

 

 

1,117,820

 









Total Municipal Bonds — 114.7%

 

 

 

 

 

97,551,372

 









 

 

 

 

 

 

 

 


 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

 

 

 

 

 

 









California — 9.7%

 

 

 

 

 

 

 









Education — 9.7%

 

 

 

 

 

 

 

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

 

 

1,995

 

 

2,056,326

 

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

 

 

3,898

 

 

4,194,904

 

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

 

 

400

 

 

385,244

 

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

 

 

1,500

 

 

1,611,361

 









Total California Municipal Bonds Transferred to Tender Option Bond Trusts

 

 

 

 

8,247,835

 









 

 

 

 

 

 

 

 









District of Columbia — 4.0%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.8%

 

 

 

 

 

 

 

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

 

 

1,395

 

 

1,499,626

 









Utilities — 2.2%

 

 

 

 

 

 

 

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

 

 

1,799

 

 

1,870,823

 









Total District of Columbia Municipal Bonds Transferred to Tender Option Bond Trusts

 

 

 

 

3,370,449

 









 

 

 

 

 

 

 

 









Florida — 10.1%

 

 

 

 

 

 

 









Health — 8.9%

 

 

 

 

 

 

 

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

 

 

7,490

 

 

7,540,782

 









Utilities — 1.2%

 

 

 

 

 

 

 

Jacksonville Electric Authority, RB, Issue Three, Series Two, River Power Park, 5.00%, 10/01/37

 

 

1,110

 

 

1,064,624

 









Total Florida Municipal Bonds Transferred to Tender Option Bond Trusts

 

 

 

 

 

8,605,406

 









 

 

 

 

 

 

 

 









Illinois — 3.6%

 

 

 

 

 

 

 









Education — 3.6%

 

 

 

 

 

 

 

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

 

 

2,800

 

 

3,087,308

 









Total Illinois Municipal Bonds Transferred to Tender Option Bond Trusts

 

 

 

 

 

3,087,308

 









 

 

 

 

 

 

 

 









Nevada — 5.6%

 

 

 

 

 

 

 









County/City/Special District/School District — 5.6%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

2,500

 

 

2,665,000

 

Series B, 5.50%, 7/01/29

 

 

1,994

 

 

2,106,669

 









Total Nevada Municipal Bonds Transferred to Tender Option Bond Trusts

 

 

 

 

 

4,771,669

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

Par
(000)

 

Value

 







New Hampshire — 1.3%

 

 

 

 

 

 

 









Education — 1.3%

 

 

 

 

 

 

 

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

 

$

1,094

 

$

1,140,487

 









Total New Hampshire Municipal Bonds Transferred to Tender Option Bond Trusts

 

 

 

 

 

1,140,487

 









 

 

 

 

 

 

 

 









New York — 4.3%

 

 

 

 

 

 

 









Utilities — 4.3%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,410

 

 

1,510,151

 

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

 

 

1,994

 

 

2,095,893

 









Total New York Municipal Bonds Transferred to Tender Option Bond Trusts

 

 

 

 

 

3,606,044

 









 

 

 

 

 

 

 

 









South Carolina — 2.2%

 

 

 

 

 

 

 









Utilities — 2.2%

 

 

 

 

 

 

 

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

 

 

1,755

 

 

1,845,769

 









Total South Carolina Municipal Bonds Transferred to Tender Option Bond Trusts

 

 

 

 

 

1,845,769

 









 

 

 

 

 

 

 

 









Texas — 5.7%

 

 

 

 

 

 

 









Health — 3.2%

 

 

 

 

 

 

 

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

 

 

2,750

 

 

2,745,738

 









Utilities — 2.5%

 

 

 

 

 

 

 

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

 

 

2,025

 

 

2,082,515

 









Total Texas Municipal Bonds Transferred to Tender Option Bond Trusts

 

 

 

 

 

4,828,253

 









 

 

 

 

 

 

 

 









Virginia — 1.1%

 

 

 

 

 

 

 









Health — 1.1%

 

 

 

 

 

 

 

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

 

 

899

 

 

914,958

 









Total Virginia Municipal Bonds Transferred to Tender Option Bond Trusts

 

 

 

 

 

914,958

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 47.6%

 

 

 

 

 

40,418,178

 









Total Long-Term Investments
(Cost — $140,675,633) — 162.3%

 

 

 

 

 

137,969,550

 









 

 

 

 

 

 

 

 


 

Short-Term Securities

 

Shares

 

 

 

 








FFI Institutional Tax-Exempt Fund, 0.42% (g)(h)

 

 

1,702,906

 

 

1,702,906

 









Total Short-Term Securities
(Cost — $1,702,906) — 2.0%

 

 

 

 

 

1,702,906

 









Total Investments (Cost — $142,378,539*) — 164.3%

 

 

 

 

 

139,672,456

 

 

 

 

 

 

 

 

 

Other Assets Less Liabilities — 2.2%

 

 

 

 

 

1,875,694

 

 

 

 

 

 

 

 

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (26.2)%

 

 

 

 

 

(22,245,220

)

 

 

 

 

 

 

 

 

Preferred Shares, at Redemption Value — (40.3)%

 

 

 

 

 

(34,252,721

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

85,050,209

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.


26

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Schedule of Investments (concluded)

BlackRock Municipal Income Investment Trust (BBF)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

120,561,464

 

 

 




Gross unrealized appreciation

 

$

4,122,726

 

Gross unrealized depreciation

 

 

(7,240,498

)

 

 




Net unrealized depreciation

 

$

(3,117,772

)

 

 





 

 

(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)

Non-income producing security.

 

 

(d)

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

 

 

(e)

When-issued 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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







CMA Florida Municipal Money Fund

 

 

(6,503,333

)

$

51,123

 

FFI Institutional Tax-Exempt Fund

 

 

1,702,906

 

$

4,821

 










 

 

 

(h)

Represents the current yield as of report date.

 

 

 

Effective August 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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 methodology 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, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities





 

 

Assets

 

 



Level 1 — Short-Term Securities

 

$

1,702,906

 

Level 2 — Long-Term Investments1

 

 

137,969,550

 

Level 3

 

 

 

 

 




Total

 

$

139,672,456

 

 

 




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


 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

JULY 31, 2009

27



 

 


 

Schedule of Investments July 31, 2009

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

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

(000)

 

Value

 







New Jersey — 138.5%

 

 

 

 

 

 

 









Corporate — 10.4%

 

 

 

 

 

 

 

New Jersey EDA, RB, Continental Airlines Inc. Project, AMT, 7.00%, 11/15/30

 

$

925

 

$

689,458

 

New Jersey EDA, RB, Disposal, Waste Management New Jersey, Series A, AMT, 5.30%, 6/01/15

 

 

500

 

 

499,330

 

 

 

 

 

 




 

 

 

 

 

 

1,188,788

 









County/City/Special District/School District — 10.0%

 

 

 

 

 

 

 

City of Perth Amboy New Jersey, GO, CAB (FSA), 4.85%, 7/01/34 (a)

 

 

100

 

 

82,659

 

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

 

 

260

 

 

277,748

 

Hudson County Improvement Authority, RB:

 

 

 

 

 

 

 

CAB, County Guaranteed, Series A-1 (MBIA), 4.49%, 12/15/32 (b)

 

 

1,000

 

 

233,890

 

County, Guaranteed, Harrison Parking Facilities Project, Series C (AGC), 5.38%, 1/01/44

 

 

340

 

 

348,364

 

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

 

 

200

 

 

101,972

 

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

 

 

100

 

 

102,367

 

 

 

 

 

 




 

 

 

 

 

 

1,147,000

 









Education — 10.8%

 

 

 

 

 

 

 

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

 

 

100

 

 

97,384

 

New Jersey Educational Facilities Authority, Refunding, RB:

 

 

 

 

 

 

 

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

 

 

380

 

 

387,102

 

Ramapo College, Series I (AMBAC), 4.25%, 7/01/31

 

 

250

 

 

214,808

 

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

 

 

255

 

 

274,951

 

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

 

 

100

 

 

86,022

 

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

 

 

175

 

 

184,942

 

 

 

 

 

 




 

 

 

 

 

 

1,245,209

 









Health — 27.5%

 

 

 

 

 

 

 

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

 

 

150

 

 

101,172

 

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

 

 

 

 

 

 

 

5.75%, 1/01/25

 

 

60

 

 

49,588

 

5.88%, 1/01/37

 

 

110

 

 

81,729

 

New Jersey EDA, Refunding, RB:

 

 

 

 

 

 

 

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

 

 

1,000

 

 

882,910

 

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

 

 

140

 

 

107,502

 

New Jersey Health Care Facilities Financing Authority, RB, CAB, Saint Barnabas Health, Series B (b):

 

 

 

 

 

 

 

5.90%, 7/01/30

 

 

500

 

 

82,540

 

5.69%, 7/01/36

 

 

840

 

 

77,154

 

5.76%, 7/01/37

 

 

900

 

 

75,447

 

New Jersey Health Care Facilities Financing Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,003,300

 

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

 

 

250

 

 

250,522

 

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

 

 

100

 

 

98,641

 

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

 

 

250

 

 

194,687

 

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

 

 

150

 

 

149,776

 

 

 

 

 

 




 

 

 

 

 

 

3,154,968

 









 

 

 

 

 

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

(000)

 

Value

 







New Jersey (concluded)

 

 

 

 

 

 

 









Housing — 10.6%

 

 

 

 

 

 

 

New Jersey State Housing & Mortgage Finance Agency, RB, Series AA:

 

 

 

 

 

 

 

6.38%, 10/01/28

 

$

250

 

$

270,898

 

6.50%, 10/01/38

 

 

200

 

 

212,750

 

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

 

 

500

 

 

514,565

 

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

 

 

200

 

 

213,630

 

 

 

 

 

 




 

 

 

 

 

 

1,211,843

 









State — 28.3%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax (Radian), 5.75%, 6/15/34

 

 

1,000

 

 

805,850

 

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

 

 

100

 

 

74,141

 

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

 

 

500

 

 

524,330

 

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

 

 

300

 

 

326,967

 

New Jersey EDA, RB, Transportation Project Sublease, Series A (FSA), 5.75%, 5/01/10

 

 

900

 

 

934,623

 

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

 

 

 

 

 

 

 

6.00%, 12/15/38

 

 

150

 

 

160,295

 

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

 

 

100

 

 

106,473

 

New Jersey EDA, Refunding, RB, School Facilities Construction, Series AA, 5.50%, 12/15/29

 

 

200

 

 

211,054

 

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

 

 

100

 

 

100,376

 

 

 

 

 

 




 

 

 

 

 

 

3,244,109

 









Tobacco — 1.1%

 

 

 

 

 

 

 

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

 

 

150

 

 

128,195

 









Transportation — 29.0%

 

 

 

 

 

 

 

Delaware River Port Authority Pennsylvania & New Jersey, RB (FSA), 5.75%, 1/01/26

 

 

1,000

 

 

1,004,200

 

New Jersey State Turnpike Authority, RB:

 

 

 

 

 

 

 

Series C (AMBAC), 6.50%, 1/01/16 (c)

 

 

785

 

 

914,023

 

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

 

 

160

 

 

193,707

 

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

 

 

55

 

 

69,192

 

Series E, 5.25%, 1/01/40

 

 

300

 

 

300,648

 

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

 

 

175

 

 

185,395

 

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

 

 

250

 

 

258,355

 

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

 

 

490

 

 

408,302

 

 

 

 

 

 




 

 

 

 

 

 

3,333,822

 









Utilities — 10.8%

 

 

 

 

 

 

 

New Jersey EDA, RB, Series A, New Jersey, American Water (AMBAC), AMT, 5.25%, 11/01/32

 

 

250

 

 

215,167

 

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

 

 

1,000

 

 

1,019,770

 

 

 

 

 

 




 

 

 

 

 

 

1,234,937

 









Total Municipal Bonds in New Jersey

 

 

 

 

 

15,888,871

 










 

 

 

See Notes to Financial Statements.


28

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Schedule of Investments (concluded)

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

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

(000)

 

Value

 









Puerto Rico — 12.5%

 

 

 

 

 

 

 









Education — 4.1%

 

 

 

 

 

 

 

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

 

$

600

 

$

467,040

 









Housing — 2.6%

 

 

 

 

 

 

 

Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

 

 

300

 

 

300,330

 









State — 5.8%

 

 

 

 

 

 

 

Puerto Rico Infrastructure Financing Authority, RB, CAB, Series A (AMBAC), 4.36%, 7/01/37 (b)

 

 

795

 

 

90,384

 

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

 

 

215

 

 

212,663

 

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

 

 

365

 

 

360,992

 

 

 

 

 

 




 

 

 

 

 

 

664,039

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

1,431,409

 









Total Municipal Bonds — 151.0%

 

 

 

 

 

17,320,280

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

 

 

 

 

 

 









Transportation — 2.0%

 

 

 

 

 

 

 

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

 

 

240

 

 

234,875

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 2.0%

 

 

 

 

 

234,875

 









Total Long-Term Investments
(Cost — $18,894,931) — 153.0%

 

 

 

 

 

17,555,155

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








CMA New Jersey Municipal Money Fund, 0.07% (e)(f)

 

 

819,689

 

 

819,689

 









Total Short-Term Securities
(Cost — $819,689) — 7.1%

 

 

 

 

 

819,689

 









Total Investments (Cost — $19,714,620*) — 160.1%

 

 

 

 

 

18,374,844

 

 

Other Assets Less Liabilities — 1.4%

 

 

 

 

 

160,115

 

 

Liability for Trust Certificates, Including Interest Expense and Fees
Payable — (1.4)%

 

 

 

 

 

(159,981

)

 

Preferred Shares, at Redemption Value — (60.1)%

 

 

 

 

 

(6,900,547

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

11,474,431

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

19,542,466

 

 

 




Gross unrealized appreciation

 

$

513,817

 

Gross unrealized depreciation

 

 

(1,841,356

)

 

 




Net unrealized depreciation

 

$

(1,327,539

)

 

 





 

 

(a)

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 is as of report date.

 

 

(b)

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

 

 

(c)

Security is collateralized by Municipal or US Treasury Obligations.

 

 

(d)

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.

 

 

(e)

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


 

 

 




 

Net

 

Affiliate

Activity

Income




CMA New Jersey Municipal Money Fund

403,358

$6,120





 

 

 

(f)

Represents the current yield as of report date.

 

 

 

Effective August 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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 methodology 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, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 





 

 

Investments in

Valuation Inputs

 

Securities





 

 

Assets

 

 



Level 1 — Short-Term Securities

 

$

819,689

 

Level 2 — Long-Term Investments1

 

 

17,555,155

 

Level 3

 

 

 

 

 




Total

 

$

18,374,844

 

 

 





 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

JULY 31, 2009

29




 

 


 

Schedule of Investments July 31, 2009

BlackRock New Jersey Municipal Income Trust (BNJ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

(000)

 

Value

 







New Jersey — 122.4%

 

 

 

 

 

 

 









Corporate — 6.3%

 

 

 

 

 

 

 

New Jersey EDA, RB, Continental Airlines Inc. Project, AMT:

 

 

 

 

 

 

 

7.00%, 11/15/30

 

$

3,450

 

$

2,571,492

 

7.20%, 11/15/30

 

 

2,000

 

 

1,525,980

 

New Jersey EDA, RB, Disposal, Waste Management New Jersey, Series A, AMT, 5.30%, 6/01/15

 

 

2,000

 

 

1,997,320

 

 

 

 

 

 




 

 

 

 

 

 

6,094,792

 









County/City/Special District/School District — 14.2%

 

 

 

 

 

 

 

City of Perth Amboy New Jersey, GO, CAB (FSA) (a):

 

 

 

 

 

 

 

4.91%, 7/01/34

 

 

1,075

 

 

888,584

 

4.92%, 7/01/35

 

 

175

 

 

143,820

 

City of Vineland New Jersey, GO, Electric Utility (MBIA), AMT:

 

 

 

 

 

 

 

5.30%, 5/15/30

 

 

1,500

 

 

1,410,465

 

5.38%, 5/15/31

 

 

1,500

 

 

1,414,500

 

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

 

 

2,630

 

 

2,809,524

 

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

 

 

2,400

 

 

2,459,040

 

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

 

 

1,790

 

 

912,649

 

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

 

 

2,625

 

 

2,247,578

 

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

 

 

225

 

 

230,326

 

Trenton Parking Authority, Refunding RB (MBIA), 5.00%, 4/01/30

 

 

1,440

 

 

1,228,147

 

 

 

 

 

 




 

 

 

 

 

 

13,744,633

 









Education — 13.1%

 

 

 

 

 

 

 

New Jersey EDA, Refunding, RB, School Facilities Construction, Series AA, 5.50%, 12/15/29

 

 

2,000

 

 

2,110,540

 

New Jersey Educational Facilities Authority, RB, Georgian Court College Project, Series C, 6.50%, 7/01/13 (b)

 

 

2,120

 

 

2,535,117

 

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

 

 

580

 

 

564,827

 

New Jersey Educational Facilities Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

3,230

 

 

3,290,369

 

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

 

 

2,000

 

 

2,017,640

 

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

 

 

250

 

 

215,055

 

Ramapo College, Series I (AMBAC), 4.25%, 7/01/31

 

 

500

 

 

429,615

 

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

 

 

1,450

 

 

1,532,375

 

 

 

 

 

 




 

 

 

 

 

 

12,695,538

 









Health — 34.8%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

674,480

 

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

 

 

1,830

 

 

1,791,131

 

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

 

 

 

 

 

 

 

5.75%, 1/01/25

 

 

500

 

 

413,235

 

5.88%, 1/01/37

 

 

855

 

 

635,256

 

New Jersey EDA, RB, Masonic Charity Foundation Project, 5.50%, 6/01/31

 

 

2,000

 

 

1,847,020

 

 

 

 

 

 

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

(000)

 

Value

 







New Jersey (continued)

 

 

 

 

 

 

 









Health (concluded)

 

 

 

 

 

 

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

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

 

$

4,050

 

$

3,721,707

 

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

 

 

1,790

 

 

1,374,487

 

New Jersey Health Care Facilities Financing Authority, RB, CAB, Saint Barnabas Health, Series B (c):

 

 

 

 

 

 

 

5.90%, 7/01/30

 

 

2,500

 

 

412,700

 

5.69%, 7/01/36

 

 

7,700

 

 

707,245

 

5.76%, 7/01/37

 

 

7,250

 

 

607,767

 

New Jersey Health Care Facilities Financing Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,255

 

 

1,269,671

 

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

 

 

3,000

 

 

3,401,100

 

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

 

 

2,250

 

 

2,254,702

 

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

 

 

2,130

 

 

2,068,549

 

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

 

 

750

 

 

739,807

 

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

 

 

750

 

 

584,062

 

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

 

 

7,460

 

 

8,490,151

 

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

 

 

1,650

 

 

1,394,217

 

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

 

 

1,250

 

 

1,248,137

 

 

 

 

 

 




 

 

 

 

 

 

33,635,424

 









Housing — 15.3%

 

 

 

 

 

 

 

Middlesex County Improvement Authority, RB (FNMA), AMT:

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,382,850

 

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

 

 

4,375

 

 

4,242,962

 

New Jersey State Housing & Mortgage Finance Agency, RB, Series AA:

 

 

 

 

 

 

 

6.38%, 10/01/28

 

 

1,500

 

 

1,625,385

 

6.50%, 10/01/38

 

 

2,470

 

 

2,627,462

 

New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, AMT:

 

 

 

 

 

 

 

Series T, 4.70%, 10/01/37

 

 

700

 

 

603,148

 

Series X, 4.85%, 4/01/16

 

 

1,750

 

 

1,800,978

 

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

 

 

 

 

 

 

 

5.75%, 12/01/30

 

 

580

 

 

585,348

 

6.75%, 12/01/38

 

 

1,850

 

 

1,976,078

 

 

 

 

 

 




 

 

 

 

 

 

14,844,211

 









State — 23.3%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

2,578,200

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax (Radian), 5.75%, 6/15/34

 

 

5,000

 

 

4,029,250

 

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

 

 

5,000

 

 

3,744,550

 

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

 

 

3,000

 

 

3,145,980

 

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

 

 

3,000

 

 

3,269,670

 

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

 

 

2,500

 

 

2,012,000

 

New Jersey Transportation Trust Fund Authority, New Jersey, RB, CAB, Transportation System, Series C (FSA), 4.84%, 12/15/32 (c)

 

 

4,000

 

 

935,560

 


 

 

 

See Notes to Financial Statements.


30

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Schedule of Investments (continued)

BlackRock New Jersey Municipal Income Trust (BNJ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

(000)

 

Value

 







New Jersey (concluded)

 

 

 

 

 

 

 









State (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.00%, 12/15/38

 

$

1,450

 

$

1,549,514

 

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

 

 

670

 

 

713,369

 

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

 

 

600

 

 

602,256

 

 

 

 

 

 




 

 

 

 

 

 

22,580,349

 









Tobacco — 1.3%

 

 

 

 

 

 

 

Tobacco Settlement Financing Corp., New Jersey, RB:

 

 

 

 

 

 

 

CAB, Series 1B, 5.65%, 6/01/41 (c)

 

 

3,300

 

 

143,319

 

Series 1A, 4.50%, 6/01/23

 

 

1,255

 

 

1,072,561

 

 

 

 

 

 




 

 

 

 

 

 

1,215,880

 









Transportation — 13.6%

 

 

 

 

 

 

 

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

 

 

3,205

 

 

3,211,923

 

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

 

 

 

 

 

 

 

5.88%, 12/15/38

 

 

1,465

 

 

1,552,021

 

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

 

 

1,000

 

 

1,046,130

 

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

 

 

1,750

 

 

1,808,485

 

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

 

 

6,000

 

 

5,492,040

 

 

 

 

 

 




 

 

 

 

 

 

13,110,599

 









Utilities — 0.5%

 

 

 

 

 

 

 

Rahway Valley Sewerage Authority, RB, CAB, Series A (MBIA), 4.39%, 9/01/33 (c)

 

 

2,000

 

 

479,600

 









Total Municipal Bonds in New Jersey

 

 

 

 

 

118,401,026

 









 

 

 

 

 

 

 

 









Multi-State (d)(e) — 6.5%

 

 

 

 

 

 

 









Housing — 6.5%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 6.80%, 11/30/50

 

 

2,500

 

 

2,582,450

 

MuniMae TE Bond Subsidiary LLC:

 

 

 

 

 

 

 

6.30%, 6/30/49

 

 

3,000

 

 

2,429,940

 

6.80%, 6/30/50

 

 

2,000

 

 

1,299,540

 









Total Municipal Bonds in Multi-State

 

 

 

 

 

6,311,930

 









 

 

 

 

 

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

(000)

 

Value

 







Puerto Rico — 19.5%

 

 

 

 

 

 

 









Housing — 7.8%

 

 

 

 

 

 

 

Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

 

$

2,500

 

$

2,502,750

 

Puerto Rico Housing Finance Corp., RB, Mortgage Backed Securities, Series A (GNMA):

 

 

 

 

 

 

 

Series A, 5.20%, 12/01/33

 

 

2,550

 

 

2,554,616

 

Series B, AMT, 5.30%, 12/01/28

 

 

2,545

 

 

2,529,577

 

 

 

 

 

 




 

 

 

 

 

 

7,586,943

 









State — 9.5%

 

 

 

 

 

 

 

Puerto Rico Infrastructure Financing Authority, RB, CAB, Series A (AMBAC), 4.36%, 7/01/37 (c)

 

 

6,000

 

 

682,140

 

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

 

 

 

 

 

 

 

5.44%, 7/01/31

 

 

1,335

 

 

988,848

 

5.44%, 7/01/31 (b)

 

 

3,665

 

 

3,617,868

 

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

 

 

850

 

 

840,761

 

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

 

 

3,075

 

 

3,041,237

 

 

 

 

 

 




 

 

 

 

 

 

9,170,854

 









Transportation — 2.2%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,091,220

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

18,849,017

 









Total Municipal Bonds — 148.4%

 

 

 

 

 

143,561,973

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

 

 

 

 

 

 









Transportation — 2.1%

 

 

 

 

 

 

 

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

 

 

2,039

 

 

1,996,436

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 2.1%

 

 

 

 

 

1,996,436

 









Total Long-Term Investments
(Cost — $156,032,143) — 150.5%

 

 

 

 

 

145,558,409

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








CMA New Jersey Municipal Money Fund, 0.07% (g)(h)

 

 

10,639,704

 

 

10,639,704

 









Total Short-Term Securities
(Cost — $10,639,704) — 11.0%

 

 

 

 

 

10,639,704

 









Total Investments (Cost — $166,671,847*) — 161.5%

 

 

 

 

 

156,198,113

 

 

Other Assets Less Liabilities — 1.0%

 

 

 

 

 

960,589

 

 

Liability for Trust Certificates, Including Interest Expense and Fees
Payable — (1.4)%

 

 

 

 

 

(1,359,845

)

 

Preferred Shares, at Redemption Value — (61.1)%

 

 

 

 

 

(59,102,821

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

96,696,036

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

JULY 31, 2009

31




 

 


 

Schedule of Investments (concluded)

BlackRock New Jersey Municipal Income Trust (BNJ)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

164,657,583

 

 

 




Gross unrealized appreciation

 

$

4,473,259

 

Gross unrealized depreciation

 

 

(14,292,025

)

 

 




Net unrealized depreciation

 

$

(9,818,766

)

 

 





 

 

(a)

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.

 

 

(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)

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.

 

 

(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, and is subject to mandatory redemption at maturity.

 

 

(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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 




 

Net

 

Affiliate

Activity

Income




CMA New Jersey Municipal Money Fund

9,141,934

$68,437





 

 

 

(h)

Represents the current yield as of report date.

 

 

 

Effective August 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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 methodology 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, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 






 

 

Investments in

 

Valuation Inputs

 

Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Investments

 

$

10,639,704

 

Level 2 — Long-Term Investments1

 

 

145,558,409

 

Level 3

 

 

 

 

 




Total

 

$

156,198,113

 

 

 





 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.


32

ANNUAL REPORT

JULY 31, 2009



 

 


 

 

Schedule of Investments July 31, 2009

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

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York — 141.1%

 

 

 

 

 

 

 









Corporate — 14.7%

 

 

 

 

 

 

 

Essex County Industrial Development Agency, New York, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32

 

$

100

 

$

89,079

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

American Airlines, JFK International Airport, AMT, 7.63%, 8/01/25

 

 

950

 

 

746,510

 

American Airlines, JFK International Airport, AMT, 7.75%, 8/01/31

 

 

300

 

 

229,740

 

Liberty, Interactive Corp., 5.00%, 9/01/35

 

 

500

 

 

310,735

 

New York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.50%, 10/01/37

 

 

200

 

 

194,542

 

Port Authority of New York & New Jersey, RB, Continental, Eastern Project, LaGuardia, AMT, 9.13%, 12/01/15

 

 

905

 

 

905,281

 

 

 

 

 

 




 

 

 

 

 

 

2,475,887

 









County/City/Special District/School District — 39.0%

 

 

 

 

 

 

 

City of New York New York, GO:

 

 

 

 

 

 

 

Series A, 6.00%, 5/15/10 (a)

 

 

500

 

 

527,100

 

Series A, 6.00%, 5/15/30

 

 

10

 

 

10,189

 

Sub-Series J-1, 4.50%, 5/15/30

 

 

125

 

 

118,799

 

Haverstraw-Stony Point Central School District, New York, GO (FSA), 3.00%, 10/15/26

 

 

250

 

 

193,720

 

Hudson Yards Infrastructure Corp., RB, Series A:

 

 

 

 

 

 

 

(FGIC), 5.00%, 2/15/47

 

 

100

 

 

85,417

 

(MBIA), 4.50%, 2/15/47

 

 

75

 

 

59,498

 

New York City Industrial Development Agency, RB, Queens Baseball Stadium, PILOT:

 

 

 

 

 

 

 

(AGC), 6.38%, 1/01/39

 

 

100

 

 

108,656

 

(AMBAC), 5.00%, 1/01/39

 

 

250

 

 

209,922

 

(AMBAC), 5.00%, 1/01/46

 

 

400

 

 

327,512

 

New York City Transitional Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2008, Series S-1, 4.50%, 1/15/38

 

 

100

 

 

89,524

 

Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

150

 

 

149,772

 

Future Tax Secured, Series B, 6.00%, 5/15/10 (a)

 

 

1,815

 

 

1,913,373

 

New York Convention Center Operating Corp., RB, Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44

 

 

850

 

 

731,569

 

Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), 5.00%, 10/15/32

 

 

2,000

 

 

2,033,740

 

 

 

 

 

 




 

 

 

 

 

 

6,558,791

 









Education — 25.5%

 

 

 

 

 

 

 

Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A:

 

 

 

 

 

 

 

7.00%, 5/01/25

 

 

95

 

 

63,886

 

7.00%, 5/01/35

 

 

60

 

 

37,405

 

Madison County Industrial Development Agency, New York, RB, Colgate University Project, Series B, 5.00%, 7/01/23

 

 

2,000

 

 

2,063,360

 

New York City Industrial Development Agency, RB, Polytechnic University Project (ACA), 5.25%, 11/01/37

 

 

100

 

 

78,670

 

New York City Trust for Cultural Resources, RB, Juilliard School, Series A, 5.00%, 1/01/39

 

 

250

 

 

254,120

 

New York Liberty Development Corp., RB, National Sports Museum Project, Series A, 6.13%, 2/15/19 (b)(c)

 

 

175

 

 

175

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

5.83%, 7/01/39 (d)

 

 

175

 

 

130,779

 

Brooklyn Law School, Refunding, 5.75%, 7/01/33

 

 

75

 

 

74,706

 

Insured, Manhattan College, Series B (Radian), 5.30%, 7/01/37

 

 

150

 

 

123,953

 

NY University, Insured, Series 1 (AMBAC), 5.50%, 7/01/40

 

 

250

 

 

275,223

 

Rochester Institute Technology, Series A, 6.00%, 7/01/33

 

 

175

 

 

183,607

 

Teachers College, 5.50%, 3/01/39

 

 

200

 

 

201,694

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 









Education (concluded)

 

 

 

 

 

 

 

New York State Dormitory Authority, RB: (concluded)

 

 

 

 

 

 

 

University Rochester, Series A, 5.13%, 7/01/39

 

$

215

 

$

212,235

 

Yeshiva University, 5.00%, 9/01/38

 

 

75

 

 

73,532

 

Schenectady Industrial Development Agency, Refunding RB, Union College Project, 5.00%, 7/01/31

 

 

500

 

 

504,340

 

 

 

 

 

 




 

 

 

 

 

 

4,277,685

 









Health — 17.8%

 

 

 

 

 

 

 

Genesee County Industrial Development Agency, New York, RB, United Memorial Medical Center Project, 5.00%, 12/01/27

 

 

100

 

 

66,931

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Hospital (FHA), Insured Mortgage, Lutheran Medical Center, 5.00%, 8/01/31

 

 

250

 

 

247,368

 

Hudson Valley Hospital (FSA), 5.00%, 8/15/36

 

 

150

 

 

151,083

 

Kateri Residence, 5.00%, 7/01/22

 

 

1,000

 

 

1,013,430

 

Mount Sinai Health, Series A, 6.50%, 7/01/25

 

 

1,000

 

 

1,018,720

 

NY & Presbyterian Hospital (FHA), 5.25%, 2/15/31

 

 

100

 

 

101,455

 

NYS Association for Retarded Children, Inc., Series A, 6.00%, 7/01/32

 

 

75

 

 

75,162

 

NYU Hospital Center, Series B, 5.63%, 7/01/37

 

 

150

 

 

134,243

 

Saratoga County Industrial Development Agency, New York, RB, Saratoga Hospital Project, Series B, 5.25%, 12/01/32

 

 

100

 

 

83,616

 

Suffolk County Industrial Development Agency, New York, Refunding RB, Jeffersons Ferry Project, 5.00%, 11/01/28

 

 

115

 

 

93,480

 

 

 

 

 

 




 

 

 

 

 

 

2,985,488

 









Housing — 10.7%

 

 

 

 

 

 

 

New York City Housing Development Corp., RB:

 

 

 

 

 

 

 

Series A (GNMA), 5.25%, 5/01/30

 

 

1,000

 

 

1,006,590

 

Series B-1, AMT, 5.15%, 11/01/37

 

 

250

 

 

236,137

 

Series J-2, Series A, Remarketed, AMT, 4.75%, 11/01/27

 

 

500

 

 

463,630

 

New York Mortgage Agency, New York, RB, Series 143, AMT, 4.90%, 10/01/37

 

 

100

 

 

88,495

 

 

 

 

 

 




 

 

 

 

 

 

1,794,852

 









State — 10.0%

 

 

 

 

 

 

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Education, Series B, 5.75%, 3/15/36

 

 

150

 

 

161,229

 

Municipal Health Facilities, Lease, Sub-Series 2-4, 4.75%, 1/15/30

 

 

300

 

 

285,291

 

State of New York, GO, Series A, 5.00%, 2/15/39

 

 

125

 

 

126,416

 

State University Educational Facilities, Series A (AMBAC), 5.25%, 5/15/15

 

 

1,005

 

 

1,101,520

 

 

 

 

 

 




 

 

 

 

 

 

1,674,456

 









Transportation — 5.3%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, RB:

 

 

 

 

 

 

 

Series 2008C, 6.50%, 11/15/28

 

 

250

 

 

276,982

 

Series B, 5.00%, 11/15/34

 

 

250

 

 

245,335

 

Series B, 4.50%, 11/15/37

 

 

250

 

 

216,570

 

Triborough Bridge & Tunnel Authority, New York, RB, General Purpose, Series A (MBIA), 5.00%, 1/01/32

 

 

155

 

 

155,343

 

 

 

 

 

 




 

 

 

 

 

 

894,230

 









Utilities — 18.1%

 

 

 

 

 

 

 

Albany Municipal Water Finance Authority, RB, Series B (MBIA), 5.00%, 12/01/33

 

 

1,000

 

 

928,240

 

Long Island Power Authority, RB, Series A, 6.25%, 4/01/33

 

 

100

 

 

110,613

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Series B (FSA), 5.00%, 6/15/36

 

 

1,000

 

 

998,470

 

Series C, 5.13%, 6/15/33

 

 

1,000

 

 

1,008,570

 

 

 

 

 

 




 

 

 

 

 

 

3,045,893

 









Total Municipal Bonds in New York

 

 

 

 

 

23,707,282

 










 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

JULY 31, 2009

33




 

 


 

 

Schedule of Investments (concluded)

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

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Guam — 2.5%

 

 

 

 

 

 

 









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

 

 

 

 

 

 

 

Territory of Guam, RB, Section 30, Series A, 5.75%, 12/01/34

 

$

120

 

$

117,637

 









State — 0.6%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A, 7.00%, 11/15/39

 

 

100

 

 

99,611

 









Tobacco — 0.4%

 

 

 

 

 

 

 

Guam Economic Development & Commerce Authority, RB, Tobacco Settlement Asset Backed, 5.63%, 6/01/47

 

 

100

 

 

70,774

 









Utilities — 0.8%

 

 

 

 

 

 

 

Guam Government Waterworks Authority, RB, Water, 5.88%, 7/01/35

 

 

150

 

 

131,710

 









Total Municipal Bonds in Guam

 

 

 

 

 

419,732

 









 









Puerto Rico — 10.7%

 

 

 

 

 

 

 









Education — 3.7%

 

 

 

 

 

 

 

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

 

 

800

 

 

622,720

 









State — 4.9%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Sub-Series C-7 (MBIA), 6.00%, 7/01/28

 

 

250

 

 

247,200

 

Puerto Rico Infrastructure Financing Authority, RB, CAB, Series A (AMBAC), 5.00%, 7/01/44 (e)

 

 

395

 

 

26,386

 

Puerto Rico Public Finance Corp., RB, Commonwealth Appropriation, E, 5.50%, 2/01/12 (a)

 

 

495

 

 

545,074

 

 

 

 

 

 




 

 

 

 

 

 

818,660

 









Tobacco — 2.1%

 

 

 

 

 

 

 

Children’s Trust Fund, RB, Asset Backed Bonds, 5.63%, 5/15/43

 

 

500

 

 

355,870

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

1,797,250

 









Total Municipal Bonds — 154.3%

 

 

 

 

 

25,924,264

 









 









 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

 

 

 

 

 

 









New York — 0.7%

 

 

 

 

 

 

 









Utilities — 0.7%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40

 

 

105

 

 

112,458

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 0.7%

 

 

 

 

 

112,458

 









Total Long-Term Investments
(Cost — $27,097,477) — 155.0%

 

 

 

 

 

26,036,722

 









 









 

Short-Term Securities

 

Shares

 

 

 

 









CMA New York Municipal Money Fund, 0.04% (g)(h)

 

 

317,150

 

 

317,150

 









Total Short-Term Securities
(Cost — $317,150) — 1.9%

 

 

 

 

 

317,150

 









Total Investments (Cost — $27,414,627*) — 156.9%

 

 

 

 

 

26,353,872

 

 

Other Assets Less Liabilities — 1.4%

 

 

 

 

 

238,209

 

 

Liability for Trust Certificates, Including Interest Expense and Fees
Payable — (0.4)%

 

 

 

 

 

(69,991

)

 

Preferred Shares, at Redemption Value — (57.9)%

 

 

 

 

 

(9,725,966

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

16,796,124

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

27,347,221

 

 

 




Gross unrealized appreciation

 

$

651,952

 

Gross unrealized depreciation

 

 

(1,715,275

)

 

 




Net unrealized depreciation

 

$

(1,063,323

)

 

 





 

 

(a)

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.

 

 

(b)

Non-income producing security.

 

 

(c)

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

 

 

(d)

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

 

 

(e)

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

 

 

(f)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired the 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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 









CMA New York Municipal Money Fund

 

103,914

 

$

4,035

 










 

 

 

(h)

Represents the current yield as of report date.

 

 

 

Effective August 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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 methodology 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, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Investments

 

$

317,150

 

Level 2 — Long-Term Investments1

 

 

26,036,722

 

Level 3

 

 

 

 

 




Total

 

$

26,353,872

 

 

 





 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.




34

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Schedule of Investments July 31, 2009

BlackRock New York Municipal Income Trust (BNY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York — 124.0%

 

 

 

 

 

 

 









Corporate — 17.6%

 

 

 

 

 

 

 

Essex County Industrial Development Agency, New York, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32

 

$

550

 

$

489,934

 

New York City Industrial Development Agency, RB, American Airlines, JFK International Airport, AMT:

 

 

 

 

 

 

 

7.63%, 8/01/25

 

 

3,200

 

 

2,514,560

 

7.75%, 8/01/31

 

 

4,000

 

 

3,063,200

 

Liberty, Interactive Corp., 5.00%, 9/01/35

 

 

2,000

 

 

1,242,940

 

New York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.25%, 10/01/35

 

 

7,000

 

 

6,580,980

 

Port Authority of New York & New Jersey, RB, Continental, Eastern Project, LaGuardia, AMT, 9.13%, 12/01/15

 

 

8,340

 

 

8,342,585

 

Suffolk County Industrial Development Agency, New York, RB, Keyspan, Port Jefferson, AMT, 5.25%, 6/01/27

 

 

7,000

 

 

6,294,820

 

 

 

 

 

 




 

 

 

 

 

 

28,529,019

 









County/City/Special District/School District — 23.6%

 

 

 

 

 

 

 

City of New York New York, GO:

 

 

 

 

 

 

 

Series A-1, 4.75%, 8/15/25

 

 

750

 

 

756,570

 

Series C, 5.38%, 3/15/12 (a)

 

 

6,000

 

 

6,696,900

 

Series D, 5.38%, 6/01/12 (a)

 

 

2,200

 

 

2,475,440

 

Series D, 5.38%, 6/01/32

 

 

4,000

 

 

4,048,360

 

Sub-Series G-1, 6.25%, 12/15/31

 

 

500

 

 

553,375

 

Sub-Series I-1, 5.38%, 4/01/36

 

 

1,750

 

 

1,802,395

 

Sub-Series J-1, 4.50%, 5/15/30

 

 

1,000

 

 

950,390

 

Hudson Yards Infrastructure Corp., RB, Series A:

 

 

 

 

 

 

 

5.00%, 2/15/47

 

 

1,000

 

 

854,170

 

(MBIA), 4.50%, 2/15/47

 

 

1,750

 

 

1,388,292

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

Marymount School of NY Project (ACA), 5.13%, 9/01/21

 

 

750

 

 

723,450

 

Marymount School of NY Project (ACA), 5.25%, 9/01/31

 

 

2,000

 

 

1,721,480

 

Queens Baseball Stadium, PILOT (AGC), 6.38%, 1/01/39

 

 

150

 

 

162,984

 

Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/36

 

 

4,900

 

 

4,162,795

 

Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/46

 

 

250

 

 

204,695

 

Royal Charter, NY Presbyterian (FSA), 5.25%, 12/15/32

 

 

1,550

 

 

1,537,941

 

Yankee Stadium, PILOT (MBIA), 5.00%, 3/01/36

 

 

250

 

 

212,293

 

New York City Transitional Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2008, Series S-1, 4.50%, 1/15/38

 

 

750

 

 

671,430

 

Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

650

 

 

649,012

 

Series S-2 (MBIA), 4.25%, 1/15/34

 

 

1,700

 

 

1,443,249

 

New York Convention Center Operating Corp., RB, Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44

 

 

8,410

 

 

7,238,235

 

 

 

 

 

 




 

 

 

 

 

 

38,253,456

 









Education — 21.4%

 

 

 

 

 

 

 

Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A:

 

 

 

 

 

 

 

7.00%, 5/01/25

 

 

910

 

 

611,957

 

7.00%, 5/01/35

 

 

590

 

 

367,818

 

Dutchess County Industrial Development Agency, New York, RB, Bard College Civic Facility, Series A-2, 4.50%, 8/01/36

 

 

7,000

 

 

4,877,250

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (continued)

 

 

 

 

 

 

 









Education (concluded)

 

 

 

 

 

 

 

Madison County Industrial Development Agency, New York, RB:

 

 

 

 

 

 

 

Colgate University Project, Series B, 5.00%, 7/01/33

 

$

2,000

 

$

2,002,740

 

Commons II LLC, Student Housing, Series A (CIFG), 5.00%, 6/01/33

 

 

275

 

 

230,280

 

New York City Industrial Development Agency, RB, Polytechnic University Project (ACA), 5.25%, 11/01/37

 

 

2,400

 

 

1,888,080

 

New York City Trust for Cultural Resources, RB, Juilliard School, Series A, 5.00%, 1/01/39

 

 

2,100

 

 

2,134,608

 

New York Liberty Development Corp., RB, National Sports Museum Project, Series A, 6.13%, 2/15/19 (b)(c)

 

 

1,740

 

 

1,740

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

5.83%, 7/01/39 (d)

 

 

750

 

 

560,483

 

Brooklyn Law School, Refunding, 5.75%, 7/01/33

 

 

475

 

 

473,138

 

Insured, Manhattan College, Series B (Radian), 5.30%, 7/01/37

 

 

500

 

 

413,175

 

Insured, New School University (MBIA), 5.00%, 7/01/41

 

 

9,000

 

 

8,377,200

 

Insured, New York University, Series 2 (AMBAC), 5.00%, 7/01/41

 

 

5,000

 

 

4,952,550

 

Mount Sinai School Medical New York University (MBIA), 5.00%, 7/01/35

 

 

1,000

 

 

953,880

 

Rochester Institute Technology, Series A, 6.00%, 7/01/33

 

 

1,000

 

 

1,049,180

 

Teachers College, 5.50%, 3/01/39

 

 

450

 

 

453,812

 

University Rochester, Series A, 5.13%, 7/01/39

 

 

850

 

 

839,069

 

Yeshiva University, 5.00%, 9/01/34

 

 

275

 

 

272,657

 

Yeshiva University, 5.00%, 9/01/38

 

 

2,000

 

 

1,960,840

 

Westchester County Industrial Development Agency, New York, RB, Windward School Civic Facilities (Radian), 5.25%, 10/01/31

 

 

2,500

 

 

2,169,700

 

 

 

 

 

 




 

 

 

 

 

 

34,590,157

 









Health — 6.3%

 

 

 

 

 

 

 

Genesee County Industrial Development Agency, New York, RB, United Memorial Medical Center Project, 5.00%, 12/01/27

 

 

500

 

 

334,655

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Hudson Valley Hospital (FSA), 5.00%, 8/15/36

 

 

1,500

 

 

1,510,830

 

Insured, NYS Association for Retarded Children, Inc., Series B, Remarketed (AMBAC), 6.00%, 7/01/32

 

 

200

 

 

201,176

 

Mount Sinai NYU Health, Series C, Remarketed, 5.50%, 7/01/26

 

 

3,000

 

 

2,999,730

 

NY & Presbyterian Hospital (FHA), 5.25%, 2/15/31

 

 

800

 

 

811,640

 

NYS Association for Retarded Children, Inc., Series A, 6.00%, 7/01/32

 

 

575

 

 

576,242

 

NYU Hospital Center, Series B, 5.63%, 7/01/37

 

 

530

 

 

474,324

 

North Shore L I Jewish Group, 5.50%, 5/01/13 (a)

 

 

2,000

 

 

2,310,400

 

Suffolk County Industrial Development Agency, New York, Refunding RB, Jeffersons Ferry Project, 5.00%, 11/01/28

 

 

1,175

 

 

955,122

 

 

 

 

 

 




 

 

 

 

 

 

10,174,119

 










 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

JULY 31, 2009

35




 

 


 

 

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 (concluded)

 

 

 

 

 

 

 









Housing — 0.8%

 

 

 

 

 

 

 

New York State HFA, RB, Highland Ave. Senior Apartments, Series A, AMT, 5.00%, 2/15/39

 

$

1,500

 

$

1,286,220

 









State — 6.1%

 

 

 

 

 

 

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Education, Series B, 5.75%, 3/15/36

 

 

600

 

 

644,916

 

Mental Health Services Facilities Improvement, Series B (AMBAC), 5.00%, 2/15/35

 

 

4,855

 

 

4,758,822

 

Municipal Health Facilities, Lease, Sub-Series 2-4, 4.75%, 1/15/30

 

 

2,100

 

 

1,997,037

 

School District Financing Program, Series A (FSA), 5.00%, 10/01/35

 

 

395

 

 

389,300

 

New York State Urban Development Corp., RB, State Personal Income Tax, Series B-1, 5.00%, 3/15/36

 

 

1,035

 

 

1,033,427

 

State of New York, GO, Series A, 5.00%, 2/15/39

 

 

975

 

 

986,047

 

 

 

 

 

 




 

 

 

 

 

 

9,809,549

 









Tobacco — 10.1%

 

 

 

 

 

 

 

New York Counties Tobacco Trust III, RB, Tobacco Settlement Pass Thru, Turbo, 6.00%, 6/01/43

 

 

6,700

 

 

5,163,891

 

Rensselaer Tobacco Asset Securitization Corp., RB, Asset Backed, Series A, 5.75%, 6/01/43

 

 

2,500

 

 

1,853,950

 

Rockland Tobacco Asset Securitization Corp., RB, Asset Backed Bonds, 5.75%, 8/15/43

 

 

5,000

 

 

3,706,750

 

TSASC Inc., New York, RB, Tobacco Settlement Asset Backed, Series 1, 5.75%, 7/15/12 (a)

 

 

3,000

 

 

3,413,670

 

Westchester Tobacco Asset Securitization, New York, RB, CAB, Plan Principal 2021, 6.75%, 7/15/10 (a)

 

 

2,000

 

 

2,139,700

 

 

 

 

 

 




 

 

 

 

 

 

16,277,961

 









Transportation — 22.7%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, Refunding RB, Series A, 5.13%, 11/15/31

 

 

10,500

 

 

10,395,945

 

Metropolitan Transportation Authority, RB:

 

 

 

 

 

 

 

Series 2008C, 6.50%, 11/15/28

 

 

750

 

 

830,947

 

Series A, 5.00%, 11/15/30

 

 

12,000

 

 

11,798,400

 

Series B, 5.00%, 11/15/34

 

 

500

 

 

490,670

 

New York City Industrial Development Agency, RB, Airis JFK I LLC Project, Series A, AMT, 5.50%, 7/01/28

 

 

10,000

 

 

6,818,500

 

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

 

 

7,000

 

 

6,407,380

 

 

 

 

 

 




 

 

 

 

 

 

36,741,842

 









Utilities — 15.4%

 

 

 

 

 

 

 

Long Island Power Authority, RB:

 

 

 

 

 

 

 

General Purpose, Series B (CIFG), 5.00%, 12/01/35

 

 

1,250

 

 

1,188,500

 

General Purpose, Series C (CIFG), 5.25%, 9/01/29

 

 

2,000

 

 

2,044,940

 

Series A, 6.25%, 4/01/33

 

 

150

 

 

165,919

 

Series A, 5.75%, 4/01/39

 

 

4,000

 

 

4,163,000

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

2nd General Resolution (MBIA), 4.50%, 6/15/37

 

 

2,050

 

 

1,873,659

 

Crossover, Series C, 5.00%, 6/15/32

 

 

6,500

 

 

6,522,620

 

Series A (MBIA), 5.00%, 6/15/32

 

 

4,000

 

 

4,011,080

 

Series D, 5.00%, 6/15/39

 

 

5,000

 

 

4,961,350

 

 

 

 

 

 




 

 

 

 

 

 

24,931,068

 









Total Municipal Bonds in New York

 

 

 

 

 

200,593,391

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Guam — 1.6%

 

 

 

 

 

 

 









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

 

 

 

 

 

 

 

Territory of Guam, RB, Section 30, Series A, 5.75%, 12/01/34

 

$

1,140

 

$

1,117,553

 









State — 0.6%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A, 7.00%, 11/15/39

 

 

970

 

 

966,227

 









Utilities — 0.3%

 

 

 

 

 

 

 

Guam Government Waterworks Authority, RB, Water, 5.88%, 7/01/35

 

 

600

 

 

526,842

 









Total Municipal Bonds in Guam

 

 

 

 

 

2,610,622

 









 









Multi-State (e)(f) — 7.7%

 

 

 

 

 

 

 









Housing — 7.7%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 6.80%, 11/30/50

 

 

5,500

 

 

5,681,390

 

MuniMae TE Bond Subsidiary LLC:

 

 

 

 

 

 

 

6.30%, 6/30/49

 

 

6,000

 

 

4,859,880

 

6.80%, 6/30/50

 

 

3,000

 

 

1,949,310

 









Total Municipal Bonds in Multi-State

 

 

 

 

 

12,490,580

 









 









Puerto Rico — 15.1%

 

 

 

 

 

 

 









Housing — 1.8%

 

 

 

 

 

 

 

Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

 

 

3,000

 

 

3,003,300

 









State — 12.3%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority, RB, Government Facilities, Series D:

 

 

 

 

 

 

 

5.25%, 7/01/12 (a)

 

 

4,400

 

 

4,873,088

 

5.25%, 7/01/36

 

 

1,600

 

 

1,338,384

 

Puerto Rico Public Finance Corp., RB, Commonwealth Appropriation (a):

 

 

 

 

 

 

 

5.50%, 2/01/12

 

 

5,000

 

 

5,505,800

 

Series E, 5.70%, 2/01/10

 

 

6,000

 

 

6,157,680

 

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

 

 

2,000

 

 

1,978,040

 

 

 

 

 

 




 

 

 

 

 

 

19,852,992

 









Utilities — 1.0%

 

 

 

 

 

 

 

Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 6.00%, 7/01/38

 

 

1,100

 

 

1,067,638

 

Puerto Rico Electric Power Authority, Refunding RB, Series VV (MBIA), 5.25%, 7/01/29

 

 

500

 

 

480,865

 

 

 

 

 

 




 

 

 

 

 

 

1,548,503

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

24,404,795

 









Total Municipal Bonds — 148.4%

 

 

 

 

 

240,099,388

 










 

 

 

See Notes to Financial Statements.




36

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Schedule of Investments (concluded)

BlackRock New York Municipal Income Trust (BNY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

Par
(000)

 

Value

 









New York — 13.7%

 

 

 

 

 

 

 









Housing — 12.4%

 

 

 

 

 

 

 

New York Mortgage Agency, Refunding RB, Series 101, AMT, 5.40%, 4/01/32

 

$

5,078

 

$

4,929,537

 

New York Mortgage Agency, RB, 31st Series A, AMT, 5.30%, 10/01/31

 

 

15,500

 

 

15,085,065

 

 

 

 

 

 




 

 

 

 

 

 

20,014,602

 









Utilities — 1.3%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,285,234

 

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

 

 

810

 

 

850,963

 

 

 

 

 

 




 

 

 

 

 

 

2,136,197

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 13.7%

 

 

 

 

 

22,150,799

 









Total Long-Term Investments
(Cost — $280,649,005) — 162.1%

 

 

 

 

 

262,250,187

 









 









 

Short-Term Securities

 

Shares

 

 

 

 









CMA New York Municipal Money Fund, 0.04% (h)(i)

 

 

3,235,523

 

 

3,235,523

 









Total Short-Term Securities
(Cost — $3,235,523) — 2.0%

 

 

 

 

 

3,235,523

 









Total Investments (Cost — $283,884,528*) — 164.1%

 

 

 

 

 

265,485,710

 

 

Other Assets Less Liabilities — 1.5%

 

 

 

 

 

2,392,414

 

 

Liability for Trust Certificates, Including Interest Expense and Fees
Payable — (7.2)%

 

 

 

 

 

(11,643,367

)

 

Preferred Shares, at Redemption Value — (58.4)%

 

 

 

 

 

(94,507,692

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

161,727,065

 

 

 

 

 

 




 

 

 



*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

270,842,506

 

 

 




Gross unrealized appreciation

 

$

6,607,636

 

Gross unrealized depreciation

 

 

(23,594,321

)

 

 




Net unrealized depreciation

 

$

(16,986,685

)

 

 





 

 

(a)

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.

 

 

(b)

Non-income producing security.

 

 

(c)

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

 

 

(d)

Represents a step-up bond that pays an initial coupon rate for the first period and a higher coupon rate for the following periods. Rate shown is 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, and is subject to mandatory redemption at maturity.

 

 

(g)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired the 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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 









Affiliate

 

Net
Activity

 

Income

 







CMA New York Municipal Money Fund

 

(1,373,007

)

$

27,866

 










 

 

 

(i)

Represents the current yield as of report date.

 

 

 

Effective August 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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 methodology 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, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Investments

 

$

3,235,523

 

Level 2 — Long-Term Investments1

 

 

262,250,187

 

Level 3

 

 

 

 

 




Total

 

$

265,485,710

 

 

 





 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

JULY 31, 2009

37



 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 31, 2009

 

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

 

$

18,407,496

 

$

313,608,419

 

$

120,176,235

 

$

20,437,397

 

$

137,969,550

 

Investments at value — affiliated2

 

 

1,637,526

 

 

3,630,796

 

 

120,735

 

 

100,105

 

 

1,702,906

 

Cash

 

 

75,467

 

 

66,823

 

 

57,385

 

 

50,142

 

 

82,510

 

Interest receivable

 

 

288,659

 

 

4,822,680

 

 

1,702,289

 

 

256,333

 

 

1,711,475

 

Investments sold receivable

 

 

150,558

 

 

18,375

 

 

185,000

 

 

15,000

 

 

1,279,815

 

Income receivable — affiliated

 

 

18

 

 

147

 

 

23

 

 

47

 

 

72

 

Prepaid expenses

 

 

49,530

 

 

90,010

 

 

17,809

 

 

2,558

 

 

19,933

 

Other assets

 

 

3,747

 

 

29,351

 

 

4,612

 

 

3,972

 

 

10,788

 

 

 
















Total assets

 

 

20,613,001

 

 

322,266,601

 

 

122,264,088

 

 

20,865,554

 

 

142,777,049

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Investments purchased payable

 

 

901,985

 

 

866,878

 

 

 

 

82,924

 

 

580,470

 

Income dividends payable — Common Shares

 

 

51,869

 

 

1,146,690

 

 

311,479

 

 

64,244

 

 

504,188

 

Investment advisory fees payable

 

 

5,606

 

 

140,441

 

 

52,458

 

 

6,352

 

 

62,446

 

Officer’s and Trustees’ fees payable

 

 

4,391

 

 

30,427

 

 

5,352

 

 

4,599

 

 

11,643

 

Administration fees payable

 

 

1,767

 

 

 

 

 

 

1,857

 

 

 

Interest expense and fees payable

 

 

424

 

 

53,947

 

 

34,268

 

 

4,132

 

 

16,456

 

Other affiliates payable

 

 

 

 

1,955

 

 

772

 

 

 

 

891

 

Other accrued expenses payable

 

 

47,857

 

 

92,156

 

 

65,975

 

 

36,852

 

 

69,261

 

 

 
















Total accrued liabilities

 

 

1,013,899

 

 

2,332,494

 

 

470,304

 

 

200,960

 

 

1,245,355

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Trust certificates3

 

 

1,232,883

 

 

56,378,777

 

 

4,633,573

 

 

3,524,110

 

 

22,228,764

 

 

 
















Total Liabilities

 

 

2,246,782

 

 

58,711,271

 

 

5,103,877

 

 

3,725,070

 

 

23,474,119

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















$25,000 per share liquidation preference, plus unpaid dividends4,5

 

 

5,925,376

 

 

71,004,510

 

 

42,904,262

 

 

4,575,218

 

 

34,252,721

 

 

 
















Net Assets Applicable to Common Shareholders

 

$

12,440,843

 

$

192,550,820

 

$

74,255,949

 

$

12,565,266

 

$

85,050,209

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net Assets Applicable to Common Shareholders Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Paid-in capital6,7,8

 

$

13,403,728

 

$

215,128,997

 

$

78,891,300

 

$

15,012,279

 

$

94,919,275

 

Undistributed net investment income

 

 

108,164

 

 

3,757,416

 

 

1,776,506

 

 

199,992

 

 

698,408

 

Accumulated net realized loss

 

 

(524,992

)

 

(10,174,576

)

 

(500,014

)

 

(2,024,464

)

 

(7,861,391

)

Net unrealized appreciation/depreciation

 

 

(546,057

)

 

(16,161,017

)

 

(5,911,843

)

 

(622,541

)

 

(2,706,083

)

 

 
















Net Assets Applicable to Common Shareholders

 

$

12,440,843

 

$

192,550,820

 

$

74,255,949

 

$

12,565,266

 

$

85,050,209

 

 

 
















Net asset value per Common Share

 

$

12.35

 

$

12.71

 

$

13.35

 

$

11.15

 

$

12.71

 

 

 
















 

1

Investments at cost — unaffiliated

 

$

18,953,553

 

$

329,769,436

 

$

126,088,078

 

$

21,059,938

 

$

140,675,633

 

 

 

 

 
















 

2

Investments at cost — affiliated

 

$

1,637,526

 

$

3,630,796

 

$

120,735

 

$

100,105

 

$

1,702,906

 

 

 

 

 
















 

3

Represents short-term floating rate certificates issued by tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

Preferred Shares outstanding, par value $0.001 per share

 

 

237

 

 

2,840

 

 

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

 

 

15,147,816

 

 

5,562,128

 

 

1,127,093

 

 

6,689,056

 

 

 

 

 
















 

8

Common Shares authorized

 

 

200 million

 

 

unlimited

 

 

unlimited

 

 

200 million

 

 

unlimited

 

 

 

 

 

















 

 

 

See Notes to Financial Statements.


38

ANNUAL REPORT

JULY 31, 2009



 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 31, 2009

 

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

 

$

17,555,155

 

$

145,558,409

 

$

26,036,722

 

$

262,250,187

 

Investments at value — affiliated2

 

 

819,689

 

 

10,639,704

 

 

317,150

 

 

3,235,523

 

Cash

 

 

81,514

 

 

21,494

 

 

45,017

 

 

24,784

 

Interest receivable

 

 

193,884

 

 

1,619,293

 

 

335,580

 

 

3,737,676

 

Investments sold receivable

 

 

2,760

 

 

23,375

 

 

 

 

15,750

 

Income receivable — affiliated

 

 

28

 

 

63

 

 

19

 

 

104

 

Prepaid expenses

 

 

1,808

 

 

21,487

 

 

3,037

 

 

37,316

 

Other assets

 

 

5,688

 

 

12,533

 

 

3,851

 

 

20,934

 

 

 













Total assets

 

 

18,660,526

 

 

157,896,358

 

 

26,741,376

 

 

269,322,274

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 















Investments purchased payable

 

 

 

 

 

 

 

 

200,726

 

Income dividends payable — Common Shares

 

 

62,178

 

 

587,324

 

 

89,456

 

 

1,018,255

 

Investment advisory fees payable

 

 

5,487

 

 

66,094

 

 

8,244

 

 

119,988

 

Officer’s and Trustees’ fees payable

 

 

6,451

 

 

13,407

 

 

4,497

 

 

21,961

 

Administration fees payable

 

 

1,668

 

 

 

 

2,402

 

 

 

Interest expense and fees payable

 

 

64

 

 

549

 

 

17

 

 

13,478

 

Other affiliates payable

 

 

 

 

1,027

 

 

 

 

1,705

 

Other accrued expenses payable

 

 

49,783

 

 

69,804

 

 

44,696

 

 

81,515

 

 

 













Total accrued liabilities

 

 

125,631

 

 

738,205

 

 

149,312

 

 

1,457,628

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 















Trust certificates3

 

 

159,917

 

 

1,359,296

 

 

69,974

 

 

11,629,889

 

 

 













Total Liabilities

 

 

285,548

 

 

2,097,501

 

 

219,286

 

 

13,087,517

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 















$25,000 per share liquidation preference, plus unpaid dividends4,5

 

 

6,900,547

 

 

59,102,821

 

 

9,725,966

 

 

94,507,692

 

 

 













Net Assets Applicable to Common Shareholders

 

$

11,474,431

 

$

96,696,036

 

$

16,796,124

 

$

161,727,065

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Net Assets Applicable to Common Shareholders Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 















Paid-in capital6,7,8

 

$

13,168,087

 

$

107,560,339

 

$

17,731,531

 

$

180,722,447

 

Undistributed net investment income

 

 

189,816

 

 

1,763,915

 

 

177,886

 

 

3,820,768

 

Accumulated net realized loss

 

 

(543,696

)

 

(2,154,484

)

 

(52,538

)

 

(4,417,332

)

Net unrealized appreciation/depreciation

 

 

(1,339,776

)

 

(10,473,734

)

 

(1,060,755

)

 

(18,398,818

)

 

 













Net Assets Applicable to Common Shareholders

 

$

11,474,431

 

$

96,696,036

 

$

16,796,124

 

$

161,727,065

 

 

 













Net asset value per Common Share

 

$

11.33

 

$

12.78

 

$

12.81

 

$

12.71

 

 

 













 

1

Investments at cost — unaffiliated

 

$

18,894,931

 

$

156,032,143

 

$

27,097,477

 

$

280,649,005

 

 

 

 

 













 

2

Investments at cost — affiliated

 

$

819,689

 

$

10,639,704

 

$

317,150

 

$

3,235,523

 

 

 

 

 













 

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

 

 

1,012,667

 

 

7,568,610

 

 

1,311,673

 

 

12,728,184

 

 

 

 

 













 

8

Common Shares authorized

 

 

200 million

 

 

unlimited

 

 

200 million

 

 

unlimited

 

 

 

 

 














 

 

 


ANNUAL REPORT

JULY 31, 2009

39




 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31, 2009

 

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

 

$

1,002,178

 

$

18,066,252

 

$

6,222,294

 

$

1,141,337

 

$

7,769,838

 

Income — affiliated

 

 

6,809

 

 

79,392

 

 

19,916

 

 

11,169

 

 

57,264

 

 

 
















Total income

 

 

1,008,987

 

 

18,145,644

 

 

6,242,210

 

 

1,152,506

 

 

7,827,102

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Investment advisory

 

 

67,601

 

 

1,916,999

 

 

602,091

 

 

71,240

 

 

842,554

 

Professional

 

 

40,339

 

 

67,603

 

 

37,127

 

 

41,699

 

 

55,509

 

Administration

 

 

19,315

 

 

 

 

 

 

20,354

 

 

 

Commissions for Preferred Shares

 

 

12,757

 

 

188,831

 

 

81,544

 

 

11,411

 

 

89,092

 

Transfer agent

 

 

11,997

 

 

23,336

 

 

16,481

 

 

13,216

 

 

18,486

 

Custodian

 

 

3,263

 

 

18,415

 

 

7,991

 

 

3,629

 

 

10,224

 

Accounting services

 

 

3,116

 

 

57,463

 

 

21,732

 

 

3,438

 

 

25,915

 

Printing

 

 

2,948

 

 

46,957

 

 

20,449

 

 

4,077

 

 

25,953

 

Officer and Trustees

 

 

924

 

 

21,300

 

 

9,036

 

 

1,091

 

 

10,030

 

Registration

 

 

399

 

 

9,318

 

 

9,166

 

 

2,446

 

 

9,605

 

Miscellaneous

 

 

23,463

 

 

57,382

 

 

36,426

 

 

21,495

 

 

42,496

 

 

 
















Total expenses excluding interest expense and fees

 

 

186,122

 

 

2,407,604

 

 

842,043

 

 

194,096

 

 

1,129,864

 

Interest expense and fees1

 

 

6,674

 

 

505,595

 

 

90,979

 

 

14,984

 

 

92,390

 

 

 
















Total expenses

 

 

192,796

 

 

2,913,199

 

 

933,022

 

 

209,080

 

 

1,222,254

 

Less fees waived by advisor

 

 

(4,233

)

 

(372,175

)

 

(24,898

)

 

(4,629

)

 

(167,747

)

 

 
















Total expenses after fees waived

 

 

188,563

 

 

2,541,024

 

 

908,124

 

 

204,451

 

 

1,054,507

 

 

 
















Net investment income

 

 

820,424

 

 

15,604,620

 

 

5,334,086

 

 

948,055

 

 

6,772,595

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Realized and Unrealized
Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 


















Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(415,855

)

 

(4,580,301

)

 

(542,712

)

 

(1,446,402

)

 

(5,674,598

)

Financial futures contracts and forward interest rate swaps

 

 

5,894

 

 

88,403

 

 

 

 

(46,216

)

 

 

 

 
















 

 

 

(409,961

)

 

(4,491,898

)

 

(542,712

)

 

(1,492,618

)

 

(5,674,598

)

 

 
















Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(261,443

)

 

(15,831,689

)

 

(5,010,059

)

 

(28,439

)

 

(3,424,220

)

Financial futures contracts and forward interest rate swaps

 

 

 

 

 

 

 

 

31,016

 

 

 

 

 
















 

 

 

(261,443

)

 

(15,831,689

)

 

(5,010,059

)

 

2,577

 

 

(3,424,220

)

 

 
















Total realized and unrealized loss

 

 

(671,404

)

 

(20,323,587

)

 

(5,552,771

)

 

(1,490,041

)

 

(9,098,818

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends and Distributions
to Preferred Shareholders From


















Net investment income

 

 

(129,647

)

 

(1,891,066

)

 

(812,866

)

 

(133,806

)

 

(928,185

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

 
















Total dividends and distributions to Preferred Shareholders

 

 

(129,647

)

 

(1,891,066

)

 

(812,866

)

 

(133,806

)

 

(928,185

)

 

 
















Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

19,373

 

$

(6,610,033

)

$

(1,031,551

)

$

(675,792

)

$

(3,254,408

)

 

 

















 

 

 

 

1

Related to tender option bond trusts.


 

 

 

See Notes to Financial Statements.


40

ANNUAL REPORT

JULY 31, 2009




 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31, 2009

 

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

 

$

1,051,119

 

$

8,945,379

 

$

1,471,387

 

$

15,452,988

 

Income — affiliated

 

 

6,822

 

 

69,942

 

 

4,518

 

 

30,368

 

 

 













Total income

 

 

1,057,941

 

 

9,015,321

 

 

1,475,905

 

 

15,483,356

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 















Investment advisory

 

 

63,970

 

 

930,160

 

 

91,068

 

 

1,581,128

 

Professional

 

 

37,037

 

 

60,980

 

 

37,831

 

 

63,662

 

Administration

 

 

18,277

 

 

 

 

26,019

 

 

 

Commissions for Preferred Shares

 

 

13,292

 

 

116,534

 

 

18,621

 

 

181,269

 

Transfer agent

 

 

12,380

 

 

18,007

 

 

12,500

 

 

23,701

 

Custodian

 

 

2,862

 

 

9,296

 

 

3,470

 

 

15,732

 

Accounting services

 

 

2,993

 

 

26,172

 

 

2,959

 

 

53,611

 

Printing

 

 

2,256

 

 

28,959

 

 

6,467

 

 

45,966

 

Officer and Trustees

 

 

741

 

 

10,931

 

 

1,749

 

 

17,049

 

Registration

 

 

401

 

 

9,305

 

 

520

 

 

9,357

 

Miscellaneous

 

 

29,758

 

 

45,772

 

 

28,646

 

 

56,294

 

 

 













Total expenses excluding interest expense and fees

 

 

183,967

 

 

1,256,116

 

 

229,850

 

 

2,047,769

 

Interest expense and fees1

 

 

3,715

 

 

28,906

 

 

36

 

 

186,516

 

 

 













Total expenses

 

 

187,682

 

 

1,285,022

 

 

229,886

 

 

2,234,285

 

Less fees waived by advisor

 

 

(2,951

)

 

(192,379

)

 

(1,856

)

 

(278,778

)

 

 













Total expenses after fees waived

 

 

184,731

 

 

1,092,643

 

 

228,030

 

 

1,955,507

 

 

 













Net investment income

 

 

873,210

 

 

7,922,678

 

 

1,247,875

 

 

13,527,849

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Realized and Unrealized
Gain (Loss)

 















Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(239,482

)

 

(863,424

)

 

9,613

 

 

(2,110,857

)

Financial futures contracts and forward interest rate swaps

 

 

 

 

 

 

2,987

 

 

26,881

 

 

 













 

 

 

(239,482

)

 

(863,424

)

 

12,600

 

 

(2,083,976

)

 

 













Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(738,822

)

 

(9,243,381

)

 

(776,965

)

 

(12,836,387

)

Financial futures contracts and forward interest rate swaps

 

 

 

 

 

 

 

 

 

 

 













 

 

 

(738,822

)

 

(9,243,381

)

 

(776,965

)

 

(12,836,387

)

 

 













Total realized and unrealized loss

 

 

(978,304

)

 

(10,106,805

)

 

(764,365

)

 

(14,920,363

)

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends and Distributions
to Preferred Shareholders From

 















Net investment income

 

 

(132,892

)

 

(1,141,652

)

 

(183,809

)

 

(1,818,574

)

Net realized gain

 

 

 

 

 

 

(2,815

)

 

 

 

 













Total dividends and distributions to Preferred Shareholders

 

 

(132,892

)

 

(1,141,652

)

 

(186,624

)

 

(1,818,574

)

 

 













Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

(237,986

)

$

(3,325,779

)

$

296,886

 

$

(3,211,088

)

 

 














 

 

 


ANNUAL REPORT

JULY 31, 2009

41




 


 

Statements of Changes in Net Assets


 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock California Investment
Quality Municipal Trust Inc. (RAA)

 

 

 


Increase (Decrease) in Net Assets:

 

Year Ended
July 31,
2009

 

Period
November 1,
2007 to July 31,
2008

 

Year Ended
October 31,
2007

 









Operations

 

 

 

 

 

 

 

 

 

 












Net investment income

 

$

820,424

 

$

602,581

 

$

842,673

 

Net realized gain (loss)

 

 

(409,961

)

 

(109,585

)

 

(7,880

)

Net change in unrealized appreciation/depreciation

 

 

(261,443

)

 

(846,985

)

 

(582,095

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(129,647

)

 

(177,511

)

 

(240,350

)

Net realized gain

 

 

 

 

 

 

(16,752

)

 

 










Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

19,373

 

 

(531,500

)

 

(4,404

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Dividends and Distributions to Common Shareholders From

 












Net investment income

 

 

(572,070

)

 

(432,060

)

 

(602,846

)

Net realized gain

 

 

 

 

 

 

(51,877

)

 

 










Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(572,070

)

 

(432,060

)

 

(654,723

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Capital Share Transactions












Reinvestment of common dividends

 

 

 

 

943

 

 

 

 

 










 

 

 

 

 

 

 

 

 

 

 












Net Assets Applicable to Common Shareholders












Total decrease in net assets applicable to Common Shareholders

 

 

(552,697

)

 

(962,617

)

 

(659,127

)

Beginning of period

 

 

12,993,540

 

 

13,956,157

 

 

14,615,284

 

 

 










End of period

 

$

12,440,843

 

$

12,993,540

 

$

13,956,157

 

 

 










Undistributed (distributions in excess of) net investment income

 

$

108,164

 

$

(10,829

)

$

(3,826

)

 

 










 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Investment Quality
Municipal Income Trust (RFA)

 

 

 


Increase (Decrease) in Net Assets:

 

Year Ended
July 31,
2009

 

Period
November 1,
2007 to July 31,
2008

 

Year Ended
October 31,
2007

 












Operations












Net investment income

 

$

948,055

 

$

693,948

 

$

940,777

 

Net realized loss

 

 

(1,492,618

)

 

(396,129

)

 

(137,267

)

Net change in unrealized appreciation/depreciation

 

 

2,577

 

 

(882,071

)

 

(659,452

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(133,806

)

 

(223,179

)

 

(292,680

)

Net realized gain

 

 

 

 

 

 

(42,977

)

 

 










Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(675,792

)

 

(807,431

)

 

(191,599

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Dividends and Distributions to Common Shareholders From












Net investment income

 

 

(630,045

)

 

(455,346

)

 

(674,882

)

Net realized gain

 

 

 

 

 

 

(53,470

)

 

 










Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(630,045

)

 

(455,346

)

 

(728,352

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Capital Share Transactions












Reinvestment of common dividends

 

 

 

 

 

 

 

 

 










 

 

 

 

 

 

 

 

 

 

 












Net Assets Applicable to Common Shareholders












Total decrease in net assets applicable to Common Shareholders

 

 

(1,305,837

)

 

(1,262,777

)

 

(919,951

)

Beginning of period

 

 

13,871,103

 

 

15,133,880

 

 

16,053,831

 

 

 










End of period

 

$

12,565,266

 

$

13,871,103

 

$

15,133,880

 

 

 










Undistributed net investment income

 

$

199,992

 

$

17,338

 

$

1,915

 

 

 











 

 

 

See Notes to Financial Statements.


42

ANNUAL REPORT

JULY 31, 2009




 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock California
Municipal Income Trust (BFZ)

 

BlackRock Florida
Municipal 2020 Term Trust (BFO)

 

 

 


 


Increase (Decrease) in Net Assets:

 

Year Ended
July 31,
2009

 

Period
November 1,
2007 to July 31,
2008

 

Year Ended
October 31,
2007

 

Year Ended
July 31,
2009

 

Period
January 1,
2008 to July 31,
2008

 

Year Ended
December 31,
2007

 















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

15,604,620

 

$

12,399,272

 

$

16,381,853

 

$

5,334,086

 

$

3,205,031

 

$

5,510,035

 

Net realized gain (loss)

 

 

(4,491,898

)

 

1,644,668

 

 

506,163

 

 

(542,712

)

 

43,162

 

 

1,545,672

 

Net change in unrealized appreciation/depreciation

 

 

(15,831,689

)

 

(15,257,013

)

 

(10,163,939

)

 

(5,010,059

)

 

(3,498,822

)

 

(4,021,372

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(1,891,066

)

 

(3,277,663

)

 

(4,587,525

)

 

(812,866

)

 

(912,876

)

 

(1,722,437

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(104,875

)

 

 



















Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(6,610,033

)

 

(4,490,736

)

 

2,136,552

 

 

(1,031,551

)

 

(1,163,505

)

 

1,207,023

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Dividends and
Distributions to
Common
Shareholders
From





















Net investment income

 

 

(12,623,286

)

 

(10,463,776

)

 

(13,751,528

)

 

(3,459,643

)

 

(1,985,680

)

 

(3,404,022

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(206,833

)

 

 



















Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(12,623,286

)

 

(10,463,776

)

 

(13,751,528

)

 

(3,459,643

)

 

(1,985,680

)

 

(3,610,855

)

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital Share
Transactions





















Reinvestment of common dividends

 

 

113,246

 

 

686,118

 

 

981,552

 

 

 

 

 

 

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net Assets Applicable
to Common
Shareholders





















Total decrease in net assets applicable to Common Shareholders

 

 

(19,120,073

)

 

(14,268,394

)

 

(10,633,424

)

 

(4,491,194

)

 

(3,149,185

)

 

(2,403,832

)

Beginning of period

 

 

211,670,893

 

 

225,939,287

 

 

236,572,711

 

 

78,747,143

 

 

81,896,328

 

 

84,300,160

 

 

 



















End of period

 

$

192,550,820

 

$

211,670,893

 

$

225,939,287

 

$

74,255,949

 

$

78,747,143

 

$

81,896,328

 

 

 



















Undistributed (distributions in excess of) net investment income

 

$

3,757,416

 

$

2,700,372

 

$

4,037,754

 

$

1,776,506

 

$

714,465

 

$

414,384

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Municipal
Income Investment Trust (BBF)

 

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

 

 

 


 


Increase (Decrease) in Net Assets:

 

Year Ended
July 31,
2009

 

Period
November 1,
2007 to July 31,
2008

 

Year Ended
October 31,
2007

 

Year Ended
July 31,
2009

 

Period
November 1,
2007 to July 31,
2008

 

Year Ended
October 31,
2007

 





















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

6,772,595

 

$

5,362,831

 

$

7,189,178

 

$

873,210

 

$

671,005

 

$

917,642

 

Net realized loss

 

 

(5,674,598

)

 

(970,330

)

 

(426,708

)

 

(239,482

)

 

(251,633

)

 

(55,198

)

Net change in unrealized appreciation/depreciation

 

 

(3,424,220

)

 

(5,046,482

)

 

(2,783,039

)

 

(738,822

)

 

(1,006,647

)

 

(650,877

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(928,185

)

 

(1,449,340

)

 

(2,093,225

)

 

(132,892

)

 

(184,793

)

 

(236,547

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(17,621

)

 

 



















Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(3,254,408

)

 

(2,103,321

)

 

1,886,206

 

 

(237,986

)

 

(772,068

)

 

(42,601

)

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Dividends and
Distributions to
Common
Shareholders From





















Net investment income

 

 

(5,882,637

)

 

(4,401,018

)

 

(6,035,745

)

 

(644,573

)

 

(614,432

)

 

(830,797

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(38,111

)

 

 



















Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(5,882,637

)

 

(4,401,018

)

 

(6,035,745

)

 

(644,573

)

 

(614,432

)

 

(868,908

)

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital Share
Transactions





















Reinvestment of common dividends

 

 

10,803

 

 

117,011

 

 

262,307

 

 

6,227

 

 

43,041

 

 

29,674

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net Assets Applicable
to Common
Shareholders





















Total decrease in net assets applicable to Common Shareholders

 

 

(9,126,242

)

 

(6,387,328

)

 

(3,887,232

)

 

(876,332

)

 

(1,343,459

)

 

(881,835

)

Beginning of period

 

 

94,176,451

 

 

100,563,779

 

 

104,451,011

 

 

12,350,763

 

 

13,694,222

 

 

14,576,057

 

 

 



















End of period

 

$

85,050,209

 

$

94,176,451

 

$

100,563,779

 

$

11,474,431

 

$

12,350,763

 

$

13,694,222

 

 

 



















Undistributed net investment income

 

$

698,408

 

$

743,165

 

$

1,230,692

 

$

189,816

 

$

96,556

 

$

224,395

 

 

 




















 

 

 


ANNUAL REPORT

JULY 31, 2009

43




 


 

Statements of Changes in Net Assets (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock New Jersey
Municipal Income Trust (BNJ)

 

 

 


Increase (Decrease) in Net Assets:

 

Year Ended
July 31,
2009

 

Period
November 1,
2007 to July 31,
2008

 

Year Ended
October 31,
2007

 









Operations

 

 

 

 

 

 

 

 

 

 












Net investment income

 

$

7,922,678

 

$

6,675,884

 

$

8,571,202

 

Net realized gain (loss)

 

 

(863,424

)

 

(66,308

)

 

(615,269

)

Net change in unrealized appreciation/depreciation

 

 

(9,243,381

)

 

(9,362,431

)

 

(5,097,663

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(1,141,652

)

 

(1,636,690

)

 

(2,223,503

)

Net realized gain

 

 

 

 

 

 

 

 

 










Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(3,325,779

)

 

(4,389,545

)

 

634,767

 

 

 










 

 

 

 

 

 

 

 

 

 

 












Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 












Net investment income

 

 

(7,033,018

)

 

(5,666,616

)

 

(7,148,582

)

Net realized gain

 

 

 

 

 

 

 

 

 










Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(7,033,018

)

 

(5,666,616

)

 

(7,148,582

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Capital Share Transactions

 

 

 

 

 

 

 

 

 

 












Reinvestment of common dividends

 

 

459,252

 

 

499,535

 

 

679,024

 

 

 










 

 

 

 

 

 

 

 

 

 

 












Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 












Total decrease in net assets applicable to Common Shareholders

 

 

(9,899,545

)

 

(9,556,626

)

 

(5,834,791

)

Beginning of period

 

 

106,595,581

 

 

116,152,207

 

 

121,986,998

 

 

 










End of period

 

$

96,696,036

 

$

106,595,581

 

$

116,152,207

 

 

 










Undistributed net investment income

 

$

1,763,915

 

$

2,016,467

 

$

2,639,891

 

 

 











 

 

 

See Notes to Financial Statements.


44

ANNUAL REPORT

JULY 31, 2009




 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

BlackRock New York
Municipal Income Trust (BNY)

 

 

 


 


Increase (Decrease) in Net Assets:

 

Year Ended
July 31,
2009

 

Period
November 1,
2007 to July 31,
2008

 

Year Ended
October 31,
2007

 

Year Ended
July 31,
2009

 

Period
November 1,
2007 to July 31,
2008

 

Year Ended
October 31,
2007

 















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

1,247,875

 

$

882,236

 

$

1,241,769

 

$

13,527,849

 

$

10,889,657

 

$

14,157,520

 

Net realized gain (loss)

 

 

12,600

 

 

(55,630

)

 

174,369

 

 

(2,083,976

)

 

(1,592,525

)

 

(532,770

)

Net change in unrealized appreciation/depreciation

 

 

(776,965

)

 

(1,113,273

)

 

(959,807

)

 

(12,836,387

)

 

(13,359,690

)

 

(8,294,012

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(183,809

)

 

(201,030

)

 

(332,059

)

 

(1,818,574

)

 

(2,666,298

)

 

(3,596,912

)

Net realized gain

 

 

(2,815

)

 

(48,505

)

 

(8,495

)

 

 

 

 

 

 

 

 



















Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

296,886

 

 

(536,202

)

 

115,777

 

 

(3,211,088

)

 

(6,728,856

)

 

1,733,826

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

 

(942,306

)

 

(771,183

)

 

(1,114,664

)

 

(11,605,688

)

 

(8,970,500

)

 

(11,399,449

)

Net realized gain

 

 

(6,697

)

 

(133,308

)

 

(17,872

)

 

 

 

 

 

 

 

 



















Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(949,003

)

 

(904,491

)

 

(1,132,536

)

 

(11,605,688

)

 

(8,970,500

)

 

(11,399,449

)

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Reinvestment of common dividends

 

 

 

 

40,519

 

 

26,224

 

 

616,838

 

 

664,800

 

 

910,003

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total decrease in net assets applicable to Common Shareholders

 

 

(652,117

)

 

(1,400,174

)

 

(990,535

)

 

(14,199,938

)

 

(15,034,556

)

 

(8,755,620

)

Beginning of period

 

 

17,448,241

 

 

18,848,415

 

 

19,838,950

 

 

175,927,003

 

 

190,961,559

 

 

199,717,179

 

 

 



















End of period

 

$

16,796,124

 

$

17,448,241

 

$

18,848,415

 

$

161,727,065

 

$

175,927,003

 

$

190,961,559

 

 

 



















Undistributed net investment income

 

$

177,886

 

$

56,130

 

$

146,107

 

$

3,820,768

 

$

3,705,423

 

$

4,448,108

 

 

 




















 

 

 


ANNUAL REPORT

JULY 31, 2009

45




 

 


 

Statement of Cash Flows

BlackRock California Municipal Income Trust (BFZ)


 

 

 

 

 

Year ended July 31, 2009

 

 

 

 


Cash Provided by Operating Activities

 

 

 

 


Net decrease in net assets resulting from operations, excluding dividends to Preferred Shareholders

 

$

(4,718,967

)

Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:

 

 

 

 

Decrease in interest receivable

 

 

238,682

 

Decrease in income receivable — affiliated

 

 

26

 

Increase in prepaid expenses

 

 

(55,643

)

Decrease in other assets

 

 

4,018

 

Increase in investment advisory fees payable

 

 

14,373

 

Decrease in other affiliates payable

 

 

(1,425

)

Decrease in other accrued expenses payable

 

 

(27,960

)

Decrease in Officer’s and Trustees’ fees payable

 

 

(4,426

)

Decrease in interest expense and fees payable

 

 

(50,576

)

Net realized and unrealized loss

 

 

20,411,990

 

Amortization of premium and discount on investments

 

 

(901,973

)

Proceeds from sales of long-term investments

 

 

171,163,120

 

Purchases of long-term investments

 

 

(195,860,580

)

Net proceeds from sales of short-term securities

 

 

28,825,340

 

 

 




Cash provided by operating activities

 

 

19,035,999

 

 

 




 

 

 

 

 


Cash Used for Financing Activities

 

 

 

 


Payments on redemption of Preferred Shares

 

 

(29,900,000

)

Cash receipts from trust certificates

 

 

29,868,779

 

Cash payments for trust certificates

 

 

(4,534,490

)

Cash dividends paid to Common Shareholders

 

 

(12,395,855

)

Cash dividends paid to Preferred Shareholders

 

 

(1,930,868

)

Decrease in bank overdraft

 

 

(76,742

)

 

 




Cash used for financing activities

 

 

(18,969,176

)

 

 




 

 

 

 

 


Cash

 

 

 

 


Net increase in cash

 

 

66,823

 

Cash at beginning of year

 

 

 

 

 




Cash at end of year

 

$

66,823

 

 

 




 

 

 

 

 


Cash Flow Information

 

 

 

 


Cash paid during the year for interest

 

$

556,171

 

 

 




 

 

 

 

 


Noncash Financing Activities

 

 

 

 


Capital shares issued in reinvestment of common dividends paid to shareholders

 

$

113,246

 

 

 





 

 

 

A Statement of Cash Flows is presented when a Trust had 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.


46

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Financial Highlights

BlackRock California Investment Quality Municipal Trust Inc. (RAA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
July 31,
2009

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 



 

 

 

 

2007

 

2006

 

2005

 

2004

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.90

 

$

13.86

 

$

14.51

 

$

14.20

 

$

14.43

 

$

14.56

 

 

 



















Net investment income

 

 

0.81

1

 

0.60

1

 

0.84

 

 

0.87

 

 

0.78

 

 

0.92

 

Net realized and unrealized gain (loss)

 

 

(0.66

)

 

(0.95

)

 

(0.58

)

 

0.50

 

 

(0.03

)

 

(0.09

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.13

)

 

(0.18

)

 

(0.24

)

 

(0.21

)

 

(0.13

)

 

(0.06

)

Net realized gain

 

 

 

 

 

 

(0.02

)

 

 

 

 

 

 

 

 



















Net increase (decrease) from investment operations

 

 

0.02

 

 

(0.53

)

 

 

 

1.16

 

 

0.62

 

 

0.77

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.57

)

 

(0.43

)

 

(0.60

)

 

(0.85

)

 

(0.85

)

 

(0.85

)

Net realized gain

 

 

 

 

 

 

(0.05

)

 

 

 

 

 

(0.05

)

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.57

)

 

(0.43

)

 

(0.65

)

 

(0.85

)

 

(0.85

)

 

(0.90

)

 

 



















Net asset value, end of period

 

$

12.35

 

$

12.90

 

$

13.86

 

$

14.51

 

$

14.20

 

$

14.43

 

 

 



















Market price, end of period

 

$

11.20

 

$

11.96

 

$

12.57

 

$

15.80

 

$

15.75

 

$

14.30

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Based on net asset value

 

 

1.28

%

 

(3.68

)%3

 

0.01

%

 

7.87

%

 

4.32

%

 

5.77

%

 

 



















Based on market price

 

 

(0.93

)%

 

(1.53

)%3

 

(16.71

)%

 

5.90

%

 

16.76

%

 

8.78

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total expenses4

 

 

1.60

%

 

1.62

%5,6

 

1.47

%

 

1.50

%

 

1.39

%

 

1.40

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.57

%

 

1.59

%5,6

 

1.46

%

 

1.50

%

 

1.39

%

 

1.40

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.57

%

 

1.59

%5,6

 

1.39

%

 

1.41

%

 

1.35

%

 

1.35

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,7

 

 

1.51

%

 

1.56

%5,6

 

1.39

%

 

1.41

%

 

1.35

%

 

1.35

%

 

 



















Net investment income4

 

 

6.82

%

 

6.00

%5,6

 

5.90

%

 

6.11

%

 

5.38

%

 

6.37

%

 

 



















Dividends paid to Preferred Shareholders

 

 

1.08

%

 

1.74

%5

 

1.68

%

 

1.50

%

 

0.88

%

 

0.42

%

 

 



















Net investment income to Common Shareholders

 

 

5.74

%

 

4.26

%5,6

 

4.22

%

 

4.61

%

 

4.50

%

 

5.95

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Net assets applicable to Common Shareholders, end of period (000)

 

$

12,441

 

$

12,994

 

$

13,956

 

$

14,615

 

$

14,299

 

$

14,529

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

5,925

 

$

6,825

 

$

7,500

 

$

7,500

 

$

7,500

 

$

7,500

 

 

 



















Portfolio turnover

 

 

68

%

 

14

%

 

38

%

 

49

%

 

20

%

 

15

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

77,495

 

$

72,598

 

$

71,534

 

$

73,731

 

$

72,671

 

$

73,433

 

 

 




















 

 

1

Based on average 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. Total investment returns exclude the effects of sales charges.

 

 

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 available 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.

 

 




ANNUAL REPORT

JULY 31, 2009

47




 

 


 

Financial Highlights

BlackRock California Municipal Income Trust (BFZ)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
July 31,
2009

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 



 

 

 

 

2007

 

2006

 

2005

 

2004

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

13.98

 

$

14.97

 

$

15.74

 

$

15.18

 

$

14.77

 

$

13.97

 

 

 



















Net investment income

 

 

1.03

1

 

0.82

1

 

1.08

 

 

1.11

 

 

1.12

 

 

1.15

 

Net realized and unrealized gain (loss)

 

 

(1.35

)

 

(0.90

)

 

(0.64

)

 

0.62

 

 

0.36

 

 

0.65

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.12

)

 

(0.22

)

 

(0.30

)

 

(0.26

)

 

(0.16

)

 

(0.09

)

 

 



















Net increase (decrease) from investment operations

 

 

(0.44

)

 

(0.30

)

 

0.14

 

 

1.47

 

 

1.32

 

 

1.71

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.83

)

 

(0.69

)

 

(0.91

)

 

(0.91

)

 

(0.91

)

 

(0.91

)

 

 



















Net asset value, end of period

 

$

12.71

 

$

13.98

 

$

14.97

 

$

15.74

 

$

15.18

 

$

14.77

 

 

 



















Market price, end of period

 

$

12.40

 

$

13.99

 

$

15.82

 

$

17.12

 

$

14.92

 

$

13.65

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(2.36

)%

 

(2.09

)%3

 

0.77

%

 

9.93

%

 

9.47

%

 

13.14

%

 

 



















Based on market price

 

 

(4.81

)%

 

(7.29

)%3

 

(2.09

)%

 

21.65

%

 

16.42

%

 

10.58

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.54

%

 

1.25

%5

 

1.21

%

 

1.25

%

 

1.25

%

 

1.28

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.35

%

 

0.98

%5

 

0.91

%

 

0.87

%

 

0.86

%

 

0.88

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.35

%

 

0.98

%5

 

0.91

%

 

0.87

%

 

0.85

%

 

0.87

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.08

%

 

0.91

%5

 

0.91

%

 

0.87

%

 

0.85

%

 

0.87

%

 

 



















Net investment income4

 

 

8.27

%

 

7.39

%5

 

7.09

%

 

7.26

%

 

7.35

%

 

7.96

%

 

 



















Dividends paid to Preferred Shareholders

 

 

1.00

%

 

1.95

%5

 

1.98

%

 

1.71

%

 

1.04

%

 

0.59

%

 

 



















Net investment income to Common Shareholders

 

 

7.27

%

 

5.44

%5

 

5.11

%

 

5.55

%

 

6.31

%

 

7.37

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

192,551

 

$

211,671

 

$

225,939

 

$

236,573

 

$

227,472

 

$

221,371

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

71,000

 

$

100,900

 

$

131,950

 

$

131,950

 

$

131,950

 

$

131,950

 

 

 



















Portfolio turnover

 

 

58

%

 

26

%

 

26

%

 

17

%

 

28

%

 

15

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

92,801

 

$

77,457

 

$

67,816

 

$

69,836

 

$

68,107

 

$

66,945

 

 

 



















 

 

 

 

1

Based on average 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. Total investment returns exclude the effects of sales charges.

 

 

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.


48

ANNUAL REPORT

JULY 31, 2009



 

 


 

Financial Highlights

BlackRock Florida Municipal 2020 Term Trust (BFO)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
July 31,
2009

 

Period
January 1,
2008 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 


 

 

 

 

2007

 

2006

 

2005

 

2004

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

14.16

 

$

14.72

 

$

15.16

 

$

14.90

 

$

14.63

 

$

14.50

 

 

 



















Net investment income

 

 

0.96

1

 

0.58

1

 

0.99

 

 

0.98

 

 

0.98

 

 

0.99

 

Net realized and unrealized gain (loss)

 

 

(1.00

)

 

(0.62

)

 

(0.45

)

 

0.23

 

 

0.31

 

 

0.14

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.15

)

 

(0.16

)

 

(0.31

)

 

(0.29

)

 

(0.20

)

 

(0.10

)

Net realized gain

 

 

 

 

 

 

(0.02

)

 

 

 

(0.01

)

 

 

 

 



















Net increase (decrease) from investment operations

 

 

(0.19

)

 

(0.20

)

 

0.21

 

 

0.92

 

 

1.08

 

 

1.03

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.62

)

 

(0.36

)

 

(0.61

)

 

(0.66

)

 

(0.75

)

 

(0.90

)

Net realized gain

 

 

 

 

 

 

(0.04

)

 

 

 

(0.06

)

 

 

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.62

)

 

(0.36

)

 

(0.65

)

 

(0.66

)

 

(0.81

)

 

(0.90

)

 

 



















Net asset value, end of period

 

$

13.35

 

$

14.16

 

$

14.72

 

$

15.16

 

$

14.90

 

$

14.63

 

 

 



















Market price, end of period

 

$

12.31

 

$

12.50

 

$

12.93

 

$

13.85

 

$

13.35

 

$

15.08

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(0.48

)%

 

(1.12

)%3

 

1.86

%

 

6.73

%

 

7.71

%

 

7.19

%

 

 



















Based on market price

 

 

3.95

%

 

(0.63

)%3

 

(2.06

)%

 

8.83

%

 

(6.76

)%

 

4.10

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.29

%

 

1.22

%5

 

1.16

%

 

1.20

%

 

1.26

%

 

1.25

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.26

%

 

1.22

%5

 

1.16

%

 

1.20

%

 

1.26

%

 

1.21

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.26

%

 

1.22

%5

 

1.16

%

 

1.18

%

 

1.24

%

 

1.21

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.13

%

 

1.17

%5

 

1.16

%

 

1.18

%

 

1.24

%

 

1.21

%

 

 



















Net investment income4

 

 

7.39

%

 

6.74

%5

 

6.63

%

 

6.54

%

 

6.57

%

 

6.93

%

 

 



















Dividends to Preferred Shareholders

 

 

1.13

%

 

1.92

%5

 

2.07

%

 

1.96

%

 

1.32

%

 

0.68

%

 

 



















Net investment income to Common Shareholders

 

 

6.26

%

 

4.82

%5

 

4.56

%

 

4.58

%

 

5.25

%

 

6.25

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

74,256

 

$

78,747

 

$

81,896

 

$

84,300

 

$

82,875

 

$

81,391

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

42,900

 

$

42,900

 

$

48,900

 

$

48,900

 

$

48,900

 

$

48,900

 

 

 



















Portfolio turnover

 

 

9

%

 

6

%

 

17

%

 

 

 

 

 

9

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

68,275

 

$

70,900

 

$

66,872

 

$

68,114

 

$

67,379

 

$

66,617

 

 

 




















 

 

1

Based on average 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. Total investment returns exclude the effects of sales charges.

 

 

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, 2009

49




 

 


 

 

Financial Highlights

BlackRock Investment Quality Municipal Income Trust (RFA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
July 31,
2009

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 


 

 

 

2007

 

2006

 

2005

 

2004

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.31

 

$

13.43

 

$

14.24

 

$

14.39

 

$

15.02

 

$

15.39

 

 

 



















Net investment income

 

 

0.84

1

 

0.62

1

 

0.83

 

 

0.82

 

 

0.84

 

 

0.98

 

Net realized and unrealized gain (loss)

 

 

(1.32

)

 

(1.14

)

 

(0.69

)

 

0.40

 

 

(0.35

)

 

(0.18

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.12

)

 

(0.20

)

 

(0.26

)

 

(0.21

)

 

(0.15

)

 

(0.07

)

Net realized gain

 

 

 

 

 

 

(0.04

)

 

(0.05

)

 

(0.01

)

 

(0.02

)

 

 



















Net increase (decrease) from investment operations

 

 

(0.60

)

 

(0.72

)

 

(0.16

)

 

0.96

 

 

0.33

 

 

0.71

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.56

)

 

(0.40

)

 

(0.60

)

 

(0.85

)

 

(0.85

)

 

(0.85

)

Net realized gain

 

 

 

 

 

 

(0.05

)

 

(0.26

)

 

(0.11

)

 

(0.23

)

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.56

)

 

(0.40

)

 

(0.65

)

 

(1.11

)

 

(0.96

)

 

(1.08

)

 

 



















Net asset value, end of period

 

$

11.15

 

$

12.31

 

$

13.43

 

$

14.24

 

$

14.39

 

$

15.02

 

 

 



















Market price, end of period

 

$

10.08

 

$

10.93

 

$

11.86

 

$

16.00

 

$

14.85

 

$

14.30

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(3.68

)%

 

(5.03

)%3

 

(1.02

)%

 

6.46

%

 

2.19

%

 

5.00

%

 

 



















Based on market price

 

 

(1.93

)%

 

(4.51

)%3

 

(22.21

)%

 

15.91

%

 

10.76

%

 

6.32

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.72

%

 

1.60

%5,6 

 

1.44

%

 

1.43

%

 

1.32

%

 

1.31

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.68

%

 

1.58

%5,6

 

1.43

%

 

1.43

%

 

1.32

%

 

1.31

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.68

%

 

1.58

%5,6

 

1.39

%

 

1.37

%

 

1.29

%

 

1.27

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,7

 

 

1.56

%

 

1.53

%5,6

 

1.39

%

 

1.37

%

 

1.29

%

 

1.27

%

 

 



















Net investment income4

 

 

7.79

%

 

6.42

%5,6

 

6.03

%

 

5.80

%

 

5.69

%

 

6.48

%

 

 



















Dividends to Preferred Shareholders

 

 

1.10

%

 

2.03

%5

 

1.88

%

 

1.49

%

 

1.05

%

 

0.46

%

 

 



















Net investment income to Common Shareholders

 

 

6.69

%

 

4.39

%5,6

 

4.15

%

 

4.31

%

 

4.64

%

 

6.02

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

12,565

 

$

13,871

 

$

15,134

 

$

16,054

 

$

16,214

 

$

16,929

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

4,575

 

$

7,125

 

$

8,500

 

$

8,500

 

$

8,500

 

$

8,500

 

 

 



















Portfolio turnover

 

 

88

%

 

29

%

 

40

%

 

57

%

 

15

%

 

13

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

93,664

 

$

73,687

 

$

69,526

 

$

72,229

 

$

72,696

 

$

74,795

 

 

 




















 

 

 

 

1

Based on average 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. Total investment returns exclude the effects of sales charges.

 

 

 

 

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.


50

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Financial Highlights

BlackRock Municipal Income Investment Trust (BBF)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
July 31,
2009

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 


 

 

 

 

2007

 

2006

 

2005

 

2004

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

14.08

 

$

15.05

 

$

15.68

 

$

15.48

 

$

15.27

 

$

14.68

 

 

 



















Net investment income

 

 

1.01

1

 

0.80

1

 

1.07

 

 

1.11

 

 

1.11

 

 

1.12

 

Net realized and unrealized gain (loss)

 

 

(1.36

)

 

(0.89

)

 

(0.49

)

 

0.26

 

 

0.17

 

 

0.45

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.14

)

 

(0.22

)

 

(0.31

)

 

(0.27

)

 

(0.17

)

 

(0.08

)

 

 



















Net increase (decrease) from investment operations

 

 

(0.49

)

 

(0.31

)

 

0.27

 

 

1.10

 

 

1.11

 

 

1.49

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.88

)

 

(0.66

)

 

(0.90

)

 

(0.90

)

 

(0.90

)

 

(0.90

)

 

 



















Net asset value, end of period

 

$

12.71

 

$

14.08

 

$

15.05

 

$

15.68

 

$

15.48

 

$

15.27

 

 

 



















Market price, end of period

 

$

12.49

 

$

13.68

 

$

15.10

 

$

16.30

 

$

15.25

 

$

14.40

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(2.57

)%

 

(2.04

)%

 

1.78

%

 

7.34

%

 

7.63

%

 

11.02

%

 

 



















Based on market price

 

 

(1.46

)%

 

(5.14

)%3

 

(1.76

)%

 

13.26

%

 

12.44

%

 

15.04

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.47

%

 

1.31

%5

 

1.28

%

 

1.30

%

 

1.30

%

 

1.32

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.27

%

 

1.06

%5

 

0.97

%

 

0.93

%

 

0.91

%

 

0.93

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.27

%

 

1.06

%5

 

0.96

%

 

0.92

%

 

0.90

%

 

0.93

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.16

%

 

1.02

%5

 

0.96

%

 

0.92

%

 

0.90

%

 

0.93

%

 

 



















Net investment income4

 

 

8.13

%

 

7.26

%5

 

7.02

%

 

7.12

%

 

7.16

%

 

7.49

%

 

 



















Dividends paid to Preferred Shareholders

 

 

1.11

%

 

1.96

%5

 

2.04

%

 

1.75

%

 

1.11

%

 

0.55

%

 

 



















Net investment income to Common Shareholders

 

 

7.02

%

 

5.30

%5

 

4.98

%

 

5.37

%

 

6.05

%

 

6.94

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

85,050

 

$

94,176

 

$

100,564

 

$

104,451

 

$

102,944

 

$

101,512

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

34,250

 

$

49,550

 

$

57,550

 

$

57,550

 

$

57,550

 

$

57,550

 

 

 



















Portfolio turnover

 

 

66

%

 

13

%

 

25

%

 

20

%

 

10

%

 

10

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

87,082

 

$

72,521

 

$

68,688

 

$

70,391

 

$

69,729

 

$

69,101

 

 

 




















 

 

 

 

1

Based on average 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. Total investment returns exclude the effects of sales charges.

 

 

 

 

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, 2009

51




 

 


 

 

Financial Highlights

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
July 31,
2009

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 


 

 

 

 

2007

 

2006

 

2005

 

2004

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.20

 

$

13.57

 

$

14.47

 

$

14.48

 

$

14.79

 

$

14.90

 

 

 



















Net investment income

 

 

0.86

1

 

0.66

1

 

0.91

 

 

0.85

 

 

0.87

 

 

0.97

 

Net realized and unrealized gain (loss)

 

 

(0.96

)

 

(1.26

)

 

(0.70

)

 

0.34

 

 

(0.21

)

 

(0.20

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.13

)

 

(0.16

)

 

(0.23

)

 

(0.20

)

 

(0.15

)

 

(0.07

)

Net realized gain

 

 

 

 

 

 

(0.02

)

 

(0.03

)

 

 

 

 

 

 



















Net increase (decrease) from investment operations

 

 

(0.23

)

 

(0.76

)

 

(0.04

)

 

0.96

 

 

0.51

 

 

0.70

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.64

)

 

(0.61

)

 

(0.82

)

 

(0.84

)

 

(0.82

)

 

(0.81

)

Net realized gain

 

 

 

 

 

 

(0.04

)

 

(0.13

)

 

 

 

 

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.64

)

 

(0.61

)

 

(0.86

)

 

(0.97

)

 

(0.82

)

 

(0.81

)

 

 



















Net asset value, end of period

 

$

11.33

 

$

12.20

 

$

13.57

 

$

14.47

 

$

14.48

 

$

14.79

 

 

 



















Market price, end of period

 

$

11.68

 

$

11.96

 

$

14.96

 

$

15.95

 

$

14.70

 

$

15.00

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(1.09

)%

 

(6.10

)%3

 

(1.03

)%

 

6.14

%

 

3.43

%

 

5.00

%

 

 



















Based on market price

 

 

4.01

%

 

(16.50

)%3

 

(1.02

)%

 

15.25

%

 

3.53

%

 

7.14

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.70

%

 

1.88

%5,6 

 

1.48

%

 

1.51

%

 

1.37

%

 

1.37

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.67

%

 

1.86

%5,6

 

1.47

%

 

1.51

%

 

1.37

%

 

1.37

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.67

%

 

1.86

%5,6

 

1.40

%

 

1.41

%

 

1.34

%

 

1.34

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,7

 

 

1.64

%

 

1.84

%5,6

 

1.40

%

 

1.41

%

 

1.34

%

 

1.34

%

 

 



















Net investment income4

 

 

7.91

%

 

6.97

%5,6

 

6.49

%

 

5.91

%

 

5.89

%

 

6.50

%

 

 



















Dividends paid to Preferred Shareholders

 

 

1.20

%

 

1.89

%5

 

1.67

%

 

1.41

%

 

1.00

%

 

0.47

%

 

 



















Net investment income to Common Shareholders

 

 

6.71

%

 

5.08

%5,6

 

4.82

%

 

4.50

%

 

4.89

%

 

6.03

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

11,474

 

$

12,351

 

$

13,694

 

$

14,576

 

$

14,581

 

$

14,900

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

6,900

 

$

7,075

 

$

7,500

 

$

7,500

 

$

7,500

 

$

7,500

 

 

 



















Portfolio turnover

 

 

32

%

 

18

%

 

31

%

 

27

%

 

19

%

 

12

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

66,576

 

$

68,647

 

$

70,649

 

$

73,603

 

$

73,612

 

$

74,670

 

 

 




















 

 

 

 

1

Based on average 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. Total investment returns exclude the effects of sales charges.

 

 

 

 

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.


52

ANNUAL REPORT

JULY 31, 2009




 

 


 

 

Financial Highlights

BlackRock New Jersey Municipal Income Trust (BNJ)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
July 31,
2009

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 


 

 

 

 

2007

 

2006

 

2005

 

2004

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

14.15

 

$

15.49

 

$

16.35

 

$

15.87

 

$

15.38

 

$

14.59

 

 

 



















Net investment income

 

 

1.05

1

 

0.89

1

 

1.14

 

 

1.17

 

 

1.17

 

 

1.16

 

Net realized and unrealized gain (loss)

 

 

(1.38

)

 

(1.24

)

 

(0.74

)

 

0.52

 

 

0.42

 

 

0.61

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.11

)

 

(0.24

)

 

(0.30

)

 

(0.26

)

 

(0.18

)

 

(0.08

)

 

 



















Net increase (decrease) from investment operations

 

 

(0.44

)

 

(0.59

)

 

0.10

 

 

1.43

 

 

1.41

 

 

1.69

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.93

)

 

(0.75

)

 

(0.96

)

 

(0.95

)

 

(0.92

)

 

(0.90

)

 

 



















Net asset value, end of period

 

$

12.78

 

$

14.15

 

$

15.49

 

$

16.35

 

$

15.87

 

$

15.38

 

 

 



















Market price, end of period

 

$

14.00

 

$

15.09

 

$

16.90

 

$

18.40

 

$

15.91

 

$

14.45

 

 

 



















 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(2.62

)%

 

(4.12

)%3 

 

0.17

%

 

9.18

%

 

9.60

%

 

12.29

%

 

 



















Based on market price

 

 

0.04

%

 

(6.28

)%3

 

(2.89

)%

 

22.56

%

 

16.95

%

 

9.63

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.38

%

 

1.28

%5

 

1.24

%

 

1.27

%

 

1.28

%

 

1.30

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.17

%

 

1.03

%5

 

0.94

%

 

0.91

%

 

0.90

%

 

0.91

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.17

%

 

1.03

%5

 

0.93

%

 

0.89

%

 

0.89

%

 

0.91

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.14

%

 

1.02

%5

 

0.93

%

 

0.89

%

 

0.89

%

 

0.91

%

 

 



















Net investment income4

 

 

8.49

%

 

7.92

%5

 

7.18

%

 

7.31

%

 

7.37

%

 

7.74

%

 

 



















Dividends paid to Preferred Shareholders

 

 

1.22

%

 

1.94

%5

 

1.86

%

 

1.63

%

 

1.12

%

 

0.56

%

 

 



















Net investment income to Common Shareholders

 

 

7.27

%

 

5.98

%5

 

5.32

%

 

5.68

%

 

6.25

%

 

7.18

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

96,696

 

$

106,596

 

$

116,152

 

$

121,987

 

$

117,739

 

$

114,019

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

59,100

 

$

60,475

 

$

63,800

 

$

63,800

 

$

63,800

 

$

63,800

 

 

 



















Portfolio turnover

 

 

29

%

 

12

%

 

23

%

 

2

%

 

6

%

 

16

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

65,905

 

$

69,083

 

$

70,528

 

$

72,812

 

$

71,142

 

$

69,682

 

 

 




















 

 

 

 

1

Based on average 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. Total investment returns exclude the effects of sales charges.

 

 

 

 

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, 2009

53




 

 


 

 

Financial Highlights

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
July 31,
2009

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 


 

 

 

 

2007

 

2006

 

2005

 

2004

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

13.30

 

$

14.40

 

$

15.18

 

$

15.03

 

$

15.35

 

$

15.34

 

 

 



















Net investment income

 

 

0.95

1

 

0.67

1

 

0.95

 

 

0.97

 

 

0.96

 

 

0.96

 

Net realized and unrealized gain (loss)

 

 

(0.61

)

 

(0.89

)

 

(0.61

)

 

0.37

 

 

(0.26

)

 

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.10

)

 

(0.15

)

 

(0.25

)

 

(0.21

)

 

(0.14

)

 

(0.07

)

Net realized gain

 

 

(0.00

)2

 

(0.04

)

 

(0.01

)

 

(0.02

)

 

 

 

 

 

 



















Net increase (decrease) from investment operations

 

 

0.24

 

 

(0.41

)

 

0.08

 

 

1.11

 

 

0.56

 

 

0.89

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.72

)

 

(0.60

)

 

(0.85

)

 

(0.88

)

 

(0.88

)

 

(0.88

)

Net realized gain

 

 

(0.01

)

 

(0.09

)

 

(0.01

)

 

(0.08

)

 

 

 

 

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.73

)

 

(0.69

)

 

(0.86

)

 

(0.96

)

 

(0.88

)

 

(0.88

)

 

 



















Net asset value, end of period

 

$

12.81

 

$

13.30

 

$

14.40

 

$

15.18

 

$

15.03

 

$

15.35

 

 

 



















Market price, end of period

 

$

12.61

 

$

12.83

 

$

15.39

 

$

16.65

 

$

14.75

 

$

14.50

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

2.71

%

 

(2.98

)%4

 

0.10

%

 

7.32

%

 

3.97

%

 

6.48

%

 

 



















Based on market price

 

 

4.81

%

 

(12.43

)%4

 

(2.46

)%

 

19.95

%

 

8.01

%

 

8.81

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses5

 

 

1.42

%

 

1.48

%6,7 

 

1.29

%

 

1.33

%

 

1.24

%

 

1.24

%

 

 



















Total expenses after fees waived and before fees paid indirectly5

 

 

1.41

%

 

1.47

%6,7

 

1.29

%

 

1.33

%

 

1.24

%

 

1.24

%

 

 



















Total expenses after fees waived and paid indirectly5

 

 

1.41

%

 

1.47

%6,7

 

1.24

%

 

1.25

%

 

1.20

%

 

1.21

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,8

 

 

1.41

%

 

1.47

%6,7

 

1.24

%

 

1.25

%

 

1.20

%

 

1.21

%

 

 



















Net investment income5

 

 

7.72

%

 

6.53

%6,7

 

6.42

%

 

6.48

%

 

6.30

%

 

6.29

%

 

 



















Dividends to Preferred Shareholders

 

 

1.14

%

 

1.47

%6

 

1.72

%

 

1.42

%

 

0.91

%

 

0.46

%

 

 



















Net investment income to Common Shareholders

 

 

6.58

%

 

5.06

%6,7

 

4.70

%

 

5.06

%

 

5.39

%

 

5.83

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

16,796

 

$

17,448

 

$

18,848

 

$

19,839

 

$

19,643

 

$

20,066

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

9,725

 

$

9,800

 

$

9,800

 

$

9,800

 

$

9,800

 

$

9,800

 

 

 



















Portfolio turnover

 

 

24

%

 

8

%

 

37

%

 

24

%

 

10

%

 

23

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

68,180

 

$

69,521

 

$

73,090

 

$

75,614

 

$

75,111

 

$

76,195

 

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01).

 

 

 

 

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. Total investment returns exclude the effects of sales charges.

 

 

 

 

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.


54

ANNUAL REPORT

JULY 31, 2009




 

 


 

Financial Highlights

BlackRock New York Municipal Income Trust (BNY)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
July 31,
2009

 

Period
November 1,
2007 to
July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 


 

 

 

 

2007

 

2006

 

2005

 

2004

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

13.88

 

$

15.11

 

$

15.88

 

$

15.44

 

$

15.28

 

$

14.76

 

 

 



















Net investment income

 

 

1.06

1

 

0.86

1

 

1.11

 

 

1.13

 

 

1.14

 

 

1.14

 

Net realized and unrealized gain (loss)

 

 

(1.22

)

 

(1.17

)

 

(0.70

)

 

0.47

 

 

0.09

 

 

0.36

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.10

)

 

(0.21

)

 

(0.28

)

 

(0.26

)

 

(0.17

)

 

(0.08

)

 

 



















Net increase (decrease) from investment operations

 

 

(0.26

)

 

(0.52

)

 

0.13

 

 

1.34

 

 

1.06

 

 

1.42

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.91

)

 

(0.71

)

 

(0.90

)

 

(0.90

)

 

(0.90

)

 

(0.90

)

 

 



















Net asset value, end of period

 

$

12.71

 

$

13.88

 

$

15.11

 

$

15.88

 

$

15.44

 

$

15.28

 

 

 



















Market price, end of period

 

$

13.95

 

$

15.26

 

$

15.55

 

$

17.35

 

$

15.19

 

$

13.99

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(1.28

)%

 

(3.71

)%

 

0.64

%

 

8.91

%

 

7.38

%

 

10.46

%

 

 



















Based on market price

 

 

(1.44

)%

 

2.87

%3

 

(5.20

)%

 

20.95

%

 

15.38

%

 

10.99

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.43

%

 

1.25

%5

 

1.22

%

 

1.25

%

 

1.26

%

 

1.27

%

 

 



















Total expenses after fees waived and before fees paid indirectly4

 

 

1.25

%

 

1.00

%5

 

0.92

%

 

0.88

%

 

0.87

%

 

0.87

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.25

%

 

1.00

%5

 

0.92

%

 

0.87

%

 

0.86

%

 

0.87

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.13

%

 

0.97

%5

 

0.92

%

 

0.87

%

 

0.86

%

 

0.87

%

 

 



















Net investment income4

 

 

8.67

%

 

7.79

%5

 

7.23

%

 

7.30

%

 

7.35

%

 

7.62

%

 

 



















Dividends paid to Preferred Shareholders

 

 

1.17

%

 

1.91

%5

 

1.84

%

 

1.69

%

 

1.08

%

 

0.56

%

 

 



















Net investment income to Common Shareholders

 

 

7.50

%

 

5.88

%5

 

5.39

%

 

5.61

%

 

6.27

%

 

7.06

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shares, end of period (000)

 

$

161,727

 

$

175,927

 

$

190,962

 

$

199,717

 

$

193,457

 

$

191,274

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

94,500

 

$

95,850

 

$

109,750

 

$

109,750

 

$

109,750

 

$

109,750

 

 

 



















Portfolio turnover

 

 

18

%

 

5

%

 

23

%

 

27

%

 

24

%

 

13

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

67,787

 

$

70,892

 

$

68,509

 

$

70,502

 

$

69,073

 

$

68,575

 

 

 




















 

 

 

 

1

Based on average 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. Total investment returns exclude the effects of sales charges.

 

 

 

 

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, 2009

55



 


 

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock California Investment Quality Municipal Trust Inc. (“California Investment Quality”), BlackRock New Jersey Investment Quality Municipal Trust Inc. (“New Jersey Investment Quality”) and BlackRock New York Investment Quality Municipal Trust Inc. (“New York Investment Quality”) are organized as Maryland corporations. BlackRock Investment Quality Municipal Income Trust (formerly BlackRock Florida Investment Quality Municipal Trust) (“Investment Quality”) was organized as a Massachusetts business trust. California Investment Quality, Investment Quality, New Jersey Investment Quality and New York Investment Quality are herein referred to as the Investment Quality Trusts. BlackRock California Municipal Income Trust (“California Income”), BlackRock Municipal Income Investment Trust (formerly BlackRock Florida Municipal Income Trust) (“Municipal Income Investment”), BlackRock New Jersey Municipal Income Trust (“New Jersey Income”), BlackRock New York Municipal Income Trust (“New York Income”) (collectively, the “Income Trusts”) and BlackRock Florida Municipal 2020 Term Trust (“Florida 2020”) are organized as Delaware statutory trusts. The Investment Quality Trusts, Income Trusts and Florida 2020 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, which may require the use of management accruals and estimates. Actual results may differ from these 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.

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

Valuation of Investments: 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 selected under the supervision of each Trust’s Board. 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. Swap agreements are valued by utilizing quotes received daily by each Trust’s pricing service or through brokers, which are derived using daily swap curves and trades of underlying securities. Financial futures contracts traded on exchanges are valued at their last price. Short-term securities with maturities less than 60 days 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, the investment will be valued by a method approved by each Trust’s 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 only 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 gain of the commitment.

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 the Trust (1) to cause the holders of a proportional share of the floating rate certificates to tender their certificates at par, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to the Trust. The TOB may also be terminated without the consent of the 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 the 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 Trust’s 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 securities is 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 reported as expenses of the Trusts. The floating rate certificates have interest rates that generally reset weekly and their holders have the option

 

 

 


56

ANNUAL REPORT

JULY 31, 2009




 


 

Notes to Financial Statements (continued)

to tender certificates to the TOB for redemption at par at each reset date. At of July 31, 2009, the aggregate value of the underlying municipal bonds transferred to TOBs, the 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

 


California Investment Quality

 

$

2,087,028

 

$

1,232,883

 

 

0.24

%

– 1.11

%

California Income

 

$

90,959,136

 

$

56,378,777

 

 

0.22

%

– 1.58

%

Florida 2020

 

$

8,917,860

 

$

4,633,573

 

 

1.39

%

– 1.58

%

Investment Quality

 

$

6,336,003

 

$

3,524,110

 

 

0.22

%

– 1.80

%

Municipal Income Investment

 

$

40,418,178

 

$

22,228,764

 

 

0.22

%

– 1.22

%

New Jersey Investment Quality

 

$

234,875

 

$

159,917

 

 

 

 

0.41

%

New Jersey Income

 

$

1,996,436

 

$

1,359,296

 

 

 

 

0.41

%

New York Investment Quality

 

$

112,458

 

$

69,974

 

 

 

 

0.25

%

New York Income

 

$

22,150,799

 

$

11,629,889

 

 

0.25

%

– 1.29

%


For the year ended July 31, 2009, the Trusts’ average trust certificates outstanding and the daily weighted average interest rate were as follows:

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Average
Trust Certificates
Outstanding

 

Daily Weighted
Average
Interest Rate

 


California Investment Quality

 

 

$

483,440

 

 

 

 

1.37

%

 

California Income

 

 

$

31,342,970

 

 

 

 

1.60

%

 

Florida 2020

 

 

$

5,077,636

 

 

 

 

1.78

%

 

Investment Quality

 

 

$

1,188,668

 

 

 

 

1.25

%

 

Municipal Income Investment

 

 

$

8,268,486

 

 

 

 

1.11

%

 

New Jersey Investment Quality

 

 

$

131,218

 

 

 

 

2.82

%

 

New Jersey Income

 

 

$

1,011,268

 

 

 

 

2.84

%

 

New York Investment Quality

 

 

$

6,292

 

 

 

 

0.57

%

 

New York Income

 

 

$

11,098,605

 

 

 

 

1.67

%

 


Financial transactions executed through TOBs generally will underperform the market for fixed rate municipal bonds when short-term interest rates rise, but tend to outperform the market for fixed rate bonds when short-term interest rates decline or remain relatively stable. Should short-term interest rates rise, the Trusts’ investments in TOBs may adversely affect the Trusts’ investment income and distributions to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect the Trusts’ net asset value per share.

Zero-Coupon Bonds: Each Trust 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 each Trust either receive collateral or segregate assets in connection with certain investments (e.g., financial futures contracts and swaps) each Trust will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or 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 (e.g., financial futures contracts and swaps). As part of these agreements, when the value of these investments achieves a previously agreed upon value (minimum transfer amount), each party may be required to deliver additional collateral.

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 security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual method. Each Trust amortizes all premiums and discounts on debt securities.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. 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 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 statute of limitations on Investment Quality Trusts’ and Income Trusts’ US federal tax returns remain open for the periods ended July 31, 2009 and 2008 and October 31, 2007 and 2006. The statutes of limitations on Florida 2020’s US federal tax returns remain open for the periods ended July 31, 2009 and 2008 and December 31, 2007 and 2006. The statutes of limitations on the Trusts’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In June 2009, Statement of Financial Accounting Standards No. 166,”Accounting for Transfers of Financial Assets — an amendment of FASB Statement No. 140” (“FAS 166”), was issued. FAS 166 is intended to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor’s continuing involvement, if any, in transferred financial assets. FAS 166 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2009. Earlier application is prohibited. The recognition and measurement provisions of FAS 166 must be applied to transfers occurring on or after the effective date. Additionally, the disclosure provisions of FAS 166 should be applied to transfers that occurred both before and after the effective date of FAS 166. The impact of FAS 166 on the Trusts’ statement disclosures, if any, is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trusts’ 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

 

 

 

 


 

ANNUAL REPORT

JULY 31, 2009

57




 


 

Notes to Financial Statements (continued)

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 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 that Trust. Other operating expenses shared by several funds are prorated among those funds on the basis of relative net assets or other appropriate methods.

2. Derivative Financial Instruments:

The Trusts may engage in various portfolio investment strategies both to increase the returns of the Trusts and to economically hedge, or protect, their exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security, or if the counterparty does not perform under the contract. The Trusts may mitigate these losses through master netting agreements included within an International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreement between the Trusts and their counterparties. The ISDA Master Agreement allows each Trust to offset with its counterparty each Trust’s certain derivative financial instruments’ payables and/or receivables with collateral held. To the extent amounts due to the Trusts from their counterparties are not fully collateralized contractually or otherwise, the Trusts bear the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices.

The Trusts are subject to interest rate risk in the normal course of pursuing its investment objectives by investing in various derivative instruments, as described below.

Financial Futures Contracts: The Trusts may 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. Financial futures transactions involve minimal counterparty risk since financial futures contracts are guaranteed against default by the exchange on which they trade. Counterparty risk is also minimized by the daily margin variation.

Swaps: The Trusts may enter into swap agreements, in which a Trust and a counterparty agree to make periodic net payments on a specified notional amount. These periodic payments received or made by the Trusts are recorded in the Statements of Operations as realized gains or losses, respectively. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). When the swap is terminated, the Trusts will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts’ basis in the contract, if any. Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

 

 

 

 

Forward interest rate swaps — The Trusts may enter into forward interest rate swaps to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk). In a forward interest rate swap, each Trust and the counterparty agree to make periodic net payments on a specified notional contract amount, commencing on a specified future effective date, unless terminated earlier. The Trusts generally intend to close each forward interest rate swap before the effective date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward interest rate swap. The Trusts’ maximum risk of loss due to counterparty default is the amount of the unrealized gain on the contract.


 

 

 


58

ANNUAL REPORT

JULY 31, 2009




 


 

Notes to Financial Statements (continued)

Derivatives Not Accounted for as Hedging Instruments under Financial Accounting Standards Board Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities”:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

The Effect of Derivative Instruments on the Statement of Operations
Year Ended July 31, 2009*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

Net Realized Gain (Loss) From Derivatives Recognized in Income

 

 

 

 

 

 


 

 

California
Investment Quality

 

California
Income

 

Investment Quality

 

New York
Investment Quality

 

New York
Income

 


Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

 

$

5,894

 

 

$

88,403

 

 

 

 

 

 

$

2,987

 

 

$

26,881

 

Forward interest rate swaps

 

 

 

 

 

 

 

 

$

(46,216

)

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Net Change in Unrealized
Appreciation on
Derivatives Recognized in Income

 

 

 


 

 

 

Investment Quality

 


Interest rate contracts:

 

 

 

 

Forward interest rate swaps

 

$ 31,016

 



 

 

*

As of July 31, 2009, there were no financial futures contracts or forward interest rate swaps outstanding. During the year ended July 31, 2009, the Trusts’ had limited activity in these transactions.

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Bank of America Corporation (“BAC”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). BAC became a stockholder of BlackRock following its acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date, both PNC and Merrill Lynch were considered affiliates of the Trusts under the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but due to the restructuring of Merrill Lynch’s ownership interest of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.

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 an annual rate of 0.35% for the Investment Quality Trusts, 0.60% for the Income Trusts and 0.50% for Florida 2020 of each Trust’s average weekly net assets. Average weekly net assets is the average weekly value of each Trust’s total assets minus the sum of its accrued liabilities.

The Manager has voluntarily agreed to waive a portion of the investment advisory fee on the Income Trusts as a percentage of average daily net assets as follows: 0.10% through July 31, 2009 and 0.05% through July 31, 2010. For the year ended July 31, 2009, the Manager waived the following amounts, which are included in fees waived by advisor in the Statements of Operations:

 

 

 

 

 


 

 

Fees Waived
by Manager

 


California Income

 

$

318,685

 

Municipal Income Investment

 

$

140,216

 

New Jersey Income

 

$

154,597

 

New York Income

 

$

262,789

 


The Manager has 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, which are included in fees waived by advisor in the Statements of Operations. For the year ended July 31, 2009, the amounts waived were as follows:

 

 

 

 

 


 

 

Fees Waived
by Manager

 


California Investment Quality

 

$

4,233

 

California Income

 

$

53,490

 

Florida 2020

 

$

24,898

 

Investment Quality

 

$

4,629

 

Municipal Income Investment

 

$

27,531

 

New Jersey Investment Quality

 

$

2,951

 

New Jersey Income

 

$

37,782

 

New York Investment Quality

 

$

1,856

 

New York Income

 

$

15,989

 


Each Investment Quality Trust has an Administration Agreement with the Manager. The administration fee 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.

 

 

 

 


 

ANNUAL REPORT

JULY 31, 2009

59



 


 

Notes to Financial Statements (continued)

The Manager has entered into a separate sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Manager, with respect to each Trust, under which the Manager pays BFM for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by each Trust to the Manager.

For the year ended July 31, 2009, certain Trusts reimbursed the Manager for certain accounting services in the following amounts, which are included in accounting services in the Statements of Operations:

 

 

 

 

 


 

 

Reimbursement

 


California Income

 

$

5,874

 

Florida 2020

 

$

2,295

 

Municipal Income Investment

 

$

2,653

 

New Jersey Income

 

$

3,004

 

New York Income

 

$

5,017

 


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, 2009 were as follows:

 

 

 

 

 

 

 

 


 

 

Purchases

 

Sales

 


California Investment Quality

 

$

12,195,309

 

$

12,761,936

 

California Income

 

$

196,727,458

 

$

171,181,495

 

Florida 2020

 

$

10,621,714

 

$

10,518,138

 

Investment Quality

 

$

17,106,161

 

$

16,975,599

 

Municipal Income Investment

 

$

92,007,385

 

$

87,874,263

 

New Jersey Investment Quality

 

$

5,505,396

 

$

6,334,077

 

New Jersey Income

 

$

42,551,565

 

$

55,811,932

 

New York Investment Quality

 

$

6,222,096

 

$

6,144,517

 

New York Income

 

$

47,745,443

 

$

45,557,350

 


5. Income Tax Information:

Reclassifications: Accounting principles generally accepted in the United States of America 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, 2009 attributable to amortization methods on fixed income securities and the tax classification of distributions received from a regulated investment company were reclassified to the following accounts:

 

 

 

 

 

 

 

 

 

 

 


 

 

California
Investment
Quality

 

California
Income

 

Florida
2020

 


Undistributed net investment income

 

$

286

 

$

(33,224

)

$

464

 

Accumulated net realized loss

 

$

(286

)

$

33,224

 

$

(464

)



 

 

 

 

 

 

 

 

 

 

 


 

 

Investment
Quality

 

Municipal
Income
Investment

 

New Jersey
Investment
Quality

 


Undistributed net investment income

 

$

(1,550

)

$

(6,530

)

$

(2,485

)

Accumulated net realized loss

 

$

1,550

 

$

6,530

 

$

2,485

 



 

 

 

 

 

 

 

 

 

 

 


 

 

New Jersey
Income

 

New York
Investment
Quality

 

New York
Income

 


Undistributed net investment income

 

$

(560

)

$

(4

)

$

11,758

 

Accumulated net realized loss

 

$

560

 

$

4

 

$

(11,758

)


The tax character of distributions paid during the periods ended July 31, 2009 and 2008 and October 31, 2007 (December 31, 2007 for Florida 2020) were as follows:

 

 

 

 

 

 

 

 

 

 

 


 

 

California
Investment
Quality

 

California
Income

 

Florida
2020

 


Tax-exempt income

 

 

 

 

 

 

 

 

 

 

2009

 

$

701,717

 

$

14,514,352

 

$

4,272,509

 

2008

 

$

609,571

 

$

13,255,742

 

$

2,898,556

 

2007

 

$

843,196

 

$

18,399,053

 

$

5,124,598

 

Ordinary income

 

 

 

 

 

 

 

 

 

 

2008

 

 

 

$

485,697

 

 

 

2007

 

 

 

 

 

$

5,472

 

Long-term capital gains

 

 

 

 

 

 

 

 

 

 

2007

 

$

68,629

 

 

 

$

308,097

 

 

 


Total

 

 

 

 

 

 

 

 

 

 

2009

 

$

701,717

 

$

14,514,352

 

$

4,272,509

 

 

 


2008

 

$

609,571

 

$

13,741,439

 

$

2,898,556

 

 

 


2007

 

$

911,825

 

$

18,399,053

 

$

5,438,167

 

 

 



 

 

 




60

ANNUAL REPORT

JULY 31, 2009




 


 

Notes to Financial Statements (continued)


 

 

 

 

 

 

 

 

 

 

 


 

 

Investment
Quality

 

Municipal
Income
Investment

 

New Jersey
Investment
Quality

 


Tax-exempt income

 

 

 

 

 

 

 

 

 

 

2009

 

$

763,851

 

$

6,810,822

 

$

777,465

 

2008

 

$

678,525

 

$

5,850,358

 

$

759,306

 

2007

 

$

967,562

 

$

8,128,970

 

$

1,067,344

 

Ordinary income

 

 

 

 

 

 

 

 

 

 

2008

 

 

 

 

 

$

39,919

 

Long-term capital gains

 

 

 

 

 

 

 

 

 

 

2007

 

$

96,447

 

 

 

$

55,732

 

 

 


Total

 

 

 

 

 

 

 

 

 

 

2009

 

$

763,851

 

$

6,810,822

 

$

777,465

 

 

 


2008

 

$

678,525

 

$

5,850,358

 

$

799,225

 

 

 


2007

 

$

1,064,009

 

$

8,128,970

 

$

1,123,076

 

 

 



 

 

 

 

 

 

 

 

 

 

 


 

 

New Jersey
Income

 

New York
Investment
Quality

 

New York
Income

 


Tax-exempt income

 

 

 

 

 

 

 

 

 

 

2009

 

$

8,174,670

 

$

1,125,603

 

$

13,424,262

 

2008

 

$

6,885,946

 

$

972,213

 

$

11,129,098

 

2007

 

$

9,372,085

 

$

1,446,723

 

$

14,996,361

 

Ordinary income

 

 

 

 

 

 

 

 

 

 

2009

 

 

 

$

516

 

 

 

2008

 

$

417,360

 

$

14,189

 

$

507,700

 

Long-term capital gains

 

 

 

 

 

 

 

 

 

 

2009

 

 

 

$

9,508

 

 

 

2008

 

 

 

$

167,624

 

 

 

2007

 

 

 

$

26,367

 

 

 

 

 


Total

 

 

 

 

 

 

 

 

 

 

2009

 

$

8,174,670

 

$

1,135,627

 

$

13,424,262

 

 

 


2008

 

$

7,303,306

 

$

1,154,026

 

$

11,636,798

 

 

 


2007

 

$

9,372,085

 

$

1,473,090

 

$

14,996,361

 

 

 


As of July 31, 2009, the tax components of accumulated net losses were as follows:

 

 

 

 

 

 

 

 

 

 

 


 

 

California
Investment
Quality

 

California
Income

 

Florida
2020

 

 

 


Undistributed tax-exempt income

 

$

104,564

 

$

2,903,071

 

$

1,793,810

 

Undistributed ordinary income

 

 

5,017

 

 

 

 

 

Undistributed long-term net capital gains or capital loss carryforwards

 

 

(71,669

)

 

(3,128,061

)

 

(567,168

)

Net unrealized losses*

 

 

(1,000,797

)

 

(22,353,187

)

 

(5,861,993

)

 

 


Total accumulated net losses

 

$

(962,885

)

$

(22,578,177

)

$

(4,635,351

)













 

 

 

 

 

 

 

 

 

 

 


 

 

Investment
Quality

 

Municipal
Income
Investment

 

New Jersey
Investment
Quality

 


Undistributed tax-exempt income

 

$

205,404

 

$

675,657

 

$

185,935

 

Undistributed ordinary income

 

 

 

 

 

 

 

Undistributed long-term net capital gains or capital loss carryforwards

 

 

(826,258

)

 

(1,811,388

)

 

(223,484

)

Net unrealized losses*

 

 

(1,826,159

)

 

(8,733,335

)

 

(1,656,107

)

 

 


Total accumulated net losses

 

$

(2,447,013

)

$

(9,869,066

)

$

(1,693,656

)













 

 

 

 

 

 

 

 


 

 

New Jersey
Income

 

New York
Investment
Quality

 

New York
Income

 


Undistributed tax-exempt income

 

$

1,088,600

 

$

181,045

 

$

3,051,801

 

Undistributed ordinary income

 

 

 

 

 

 

 

Undistributed long-term net capital gains or capital loss carryforwards

 

 

(612,079

)

 

 

 

(3,256,290

)

Net unrealized losses*

 

 

(11,340,824

)

 

(1,116,452

)

 

(18,790,893

)

 

 


Total accumulated net losses

 

$

(10,864,303

)

$

(935,407

)

$

(18,995,382

)













 

 

*

The differences between book-basis and tax-basis net unrealized losses were attributable primarily to the tax deferral of losses on wash sales, the difference between book and tax amortization methods for premiums and discounts on fixed income securities, the deferral of post-October capital losses for tax purposes, the timing and recognition of partnership income, the difference between the book and tax treatment of residual interests in tender option bond trusts and the deferral of compensation to trustees.

As of July 31, 2009, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 


Expires

 

California
Investment
Quality

 

California
Income

 

Florida
2020

 


2012

 

 

 

$

1,807,297

 

 

 

2014

 

 

 

 

1,320,764

 

 

 

2015

 

 

 

 

 

 

 

2016

 

$

71,669

 

 

 

$

28,100

 

2017

 

 

 

 

 

 

539,068

 

 

 


Total

 

$

71,669

 

$

3,128,061

 

$

567,168

 

 

 



 

 

 


ANNUAL REPORT

JULY 31, 2009

61




 


 

Notes to Financial Statements (continued)


 

 

 

 

 

 

 

 

 

 

 


Expires

 

Investment
Quality

 

Municipal
Income
Investment

 

New Jersey
Investment
Quality

 


2012

 

 

 

$

518,297

 

 

 

2014

 

 

 

 

 

 

 

2015

 

$

137,267

 

 

426,674

 

 

 

2016

 

 

389,530

 

 

866,417

 

$

223,484

 

2017

 

 

299,461

 

 

 

 

 

 

 


Total

 

$

826,258

 

$

1,811,388

 

$

223,484

 

 

 



 

 

 

 

 

 

 

 


Expires

 

New Jersey
Income

 

New York
Income

 


2012

 

$

3,833

 

$

151,220

 

2014

 

 

 

 

 

2015

 

 

592,744

 

 

 

2016

 

 

15,502

 

 

505,354

 

2017

 

 

 

 

2,599,716

 

 

 


Total

 

$

612,079

 

$

3,256,290

 

 

 


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 concentration in specific states.

Many municipalities insure repayment of their bonds, which reduces the risk of loss due to issuer default. 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 (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 credit risk, the Trusts may be exposed to counterparty risk, or the risk that an entity with which the Trusts have unsettled or open transactions may default. Financial assets, which potentially expose the Trusts to credit and counterparty risks, consist principally of investments and cash due from counterparties. The extent of the Trusts’ exposure to credit and counterparty risks with respect to these financial assets is approximated by their value recorded in the Trusts’ Statements of Assets and Liabilities.

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 Florida 2020. Each Trust’s Board is authorized, however, to reclassify any unissued shares of shares without approval of Common Shareholders. At July 31, 2009 the Common Shares owned by affiliates of the Manager for Florida 2020 was 8,028 shares.

Common Shares

During the year ended July 31, 2009, the period November 1, 2007 to July 31, 2008 and the year ended October 31, 2007 the shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

 

 

 

 

 

 

 

 

 

 


 

 

Year
Year Ended
July 31,
2009

 

Period
November 1,
2007
to July 31,
2008

 

Year Ended
October 31,
2007

 


California Investment Quality

 

 

 

 

73

 

 

 

California Income

 

 

8,447

 

 

46,329

 

 

61,958

 

Municipal Income Investment

 

 

887

 

 

8,026

 

 

16,959

 

New Jersey Investment Quality

 

 

562

 

 

3,040

 

 

1,972

 

New Jersey Income

 

 

36,407

 

 

31,657

 

 

39,482

 

New York Investment Quality

 

 

 

 

2,856

 

 

1,724

 

New York Income

 

 

48,952

 

 

44,125

 

 

56,191

 












Shares issued and outstanding for Florida 2020 and Investment Quality remained constant for the year ended July 31, 2009, the period ended July 31, 2008 and the year ended December 31, 2007 (October 31, 2007 for Investment Quality).

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 but unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation preference plus any accumulated but 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 Statement of Preferences or Articles Supplementary, as applicable (the “Governing Instrument”) are not satisfied.

From time to time in the future, each Trust that has issued Preferred Shares may affect repurchases of such shares at prices below its liquidation preferences as agreed upon by the Trust and seller. Each Trust also may redeem its respective Preferred Shares from time to time as provided in the applicable Governing Instrument. Each Trust intends to affect 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.

 

 

 




62

ANNUAL REPORT

JULY 31, 2009



 


 

Notes to Financial Statements (continued)

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, 2009:

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Series

 

Preferred
Shares

 

Effective
Yield

 

Reset
Frequency
Days

 


California Investment Quality

 

 

 

W7

 

 

 

 

237

 

 

 

 

0.58

%

 

 

 

7

 

 

California Income

 

 

 

T7

 

 

 

 

1,420

 

 

 

 

0.58

%

 

 

 

7

 

 

 

 

 

 

R7

 

 

 

 

1,420

 

 

 

 

0.58

%

 

 

 

7

 

 

Florida 2020

 

 

 

F7

 

 

 

 

1,716

 

 

 

 

0.52

%

 

 

 

7

 

 

Investment Quality

 

 

 

R7

 

 

 

 

183

 

 

 

 

0.58

%

 

 

 

7

 

 

Municipal Income Investment

 

 

 

T7

 

 

 

 

1,370

 

 

 

 

0.58

%

 

 

 

7

 

 

New Jersey Investment Quality

 

 

 

T7

 

 

 

 

276

 

 

 

 

0.58

%

 

 

 

7

 

 

New Jersey Income

 

 

 

R7

 

 

 

 

2,364

 

 

 

 

0.58

%

 

 

 

7

 

 

New York Investment Quality

 

 

 

F7

 

 

 

 

389

 

 

 

 

0.52

%

 

 

 

7

 

 

New York Income

 

 

 

W7

 

 

 

 

1,890

 

 

 

 

0.58

%

 

 

 

7

 

 

 

 

 

 

F7

 

 

 

 

1,890

 

 

 

 

0.52

%

 

 

 

7

 

 


Dividends on 7-day Preferred Shares are cumulative at a rate, which is reset every 7 days based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, the affected 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 on the Preferred Shares for each Trust for the year ended July 31, 2009 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Series

 

Low

 

High

 

Average

 


California Investment Quality

 

 

 

W7

 

 

 

 

0.38

%

 

 

 

12.57

%

 

 

 

1.89

%

 

California Income

 

 

 

T7

 

 

 

 

0.40

%

 

 

 

11.35

%

 

 

 

1.88

%

 

 

 

 

 

R7

 

 

 

 

0.35

%

 

 

 

12.26

%

 

 

 

1.84

%

 

Florida 2020

 

 

 

F7

 

 

 

 

0.35

%

 

 

 

11.73

%

 

 

 

1.87

%

 

Investment Quality

 

 

 

R7

 

 

 

 

0.35

%

 

 

 

12.26

%

 

 

 

1.89

%

 

Municipal Income Investment

 

 

 

T7

 

 

 

 

0.40

%

 

 

 

11.35

%

 

 

 

1.89

%

 

New Jersey Investment Quality

 

 

 

T7

 

 

 

 

0.40

%

 

 

 

11.35

%

 

 

 

1.83

%

 

New Jersey Income

 

 

 

R7

 

 

 

 

0.35

%

 

 

 

12.26

%

 

 

 

1.88

%

 

New York Investment Quality

 

 

 

F7

 

 

 

 

0.35

%

 

 

 

11.73

%

 

 

 

1.87

%

 

New York Income

 

 

 

W7

 

 

 

 

0.38

%

 

 

 

12.57

%

 

 

 

1.89

%

 

 

 

 

 

F7

 

 

 

 

0.35

%

 

 

 

11.73

%

 

 

 

1.86

%

 


Since February 13, 2008, the Preferred Shares of each Trust failed to clear any of their auctions. As a result, the Preferred Share dividend rates were reset to the maximum applicable rate that ranged from 0.35% to 12.57%. A failed auction is not an event of default for the Trusts but it has a negative impact on the liquidity of the Preferred Shares. A failed auction occurs when there are more sellers of a trust’s auction rate Preferred Shares than buyers. It is impossible to predict how long this imbalance will last. A successful auction for each Trust’s 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.

A Trust 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%.

Prior to December 22, 2008, the Trusts paid commissions to certain broker dealers at the end of each auction at an annual rate of 0.25%, calculated on the aggregate principal amount. As of December 22, 2008, commissions paid to broker-dealers on preferred shares that experienced a failed auction were reduced to 0.15% on the aggregate principal amount. The Trusts will pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Merrill Lynch, Pierce, Fenner & Smith, Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commissions for the period August 1, 2008 to December 31, 2008 (after which time Merrill Lynch was no longer considered an affiliate) as follows:

 

 

 

 

 

 


California Income

 

$

48,261

 

Municipal Income Investment

 

$

36,726

 

New Jersey Income

 

$

18,367

 

New York Income

 

$

61,654

 


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 dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 


California Investment Quality

 

 

 

W7

 

 

 

 

7/09/09

 

 

 

 

36

 

 

$

900,000

 

California Income

 

 

 

R7

 

 

 

 

7/10/09

 

 

 

 

598

 

 

$

14,950,000

 

 

 

 

 

T7

 

 

 

 

7/08/09

 

 

 

 

598

 

 

$

14,950,000

 

Investment Quality

 

 

 

R7

 

 

 

 

7/10/09

 

 

 

 

102

 

 

$

2,550,000

 

Municipal Income Investment

 

 

 

T7

 

 

 

 

7/08/09

 

 

 

 

612

 

 

$

15,300,000

 

New Jersey Investment Quality

 

 

 

T7

 

 

 

 

7/08/09

 

 

 

 

7

 

 

$

175,000

 

New Jersey Income

 

 

 

R7

 

 

 

 

7/10/09

 

 

 

 

55

 

 

$

1,375,000

 

New York Investment Quality

 

 

 

F7

 

 

 

 

7/13/09

 

 

 

 

3

 

 

$

75,000

 

New York Income

 

 

 

F7

 

 

 

 

7/13/09

 

 

 

 

27

 

 

$

675,000

 

 

 

 

 

W7

 

 

 

 

7/09/09

 

 

 

 

27

 

 

$

675,000

 



 

 

 

 


 

ANNUAL REPORT

JULY 31, 2009

63




 


 

Notes to Financial Statements (concluded)

During the year ended July 31, 2008, 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 dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 


California Investment Quality

 

 

 

W7

 

 

 

 

6/26/08

 

 

 

 

27

 

 

$

675,000

 

California Income

 

 

 

R7

 

 

 

 

6/27/08

 

 

 

 

621

 

 

$

15,525,000

 

 

 

 

 

T7

 

 

 

 

6/25/08

 

 

 

 

621

 

 

$

15,525,000

 

Florida 2020

 

 

 

F7

 

 

 

 

6/30/08

 

 

 

 

240

 

 

$

6,000,000

 

Investment Quality

 

 

 

R7

 

 

 

 

6/27/08

 

 

 

 

55

 

 

$

1,375,000

 

Municipal Income Investment

 

 

 

T7

 

 

 

 

6/25/08

 

 

 

 

320

 

 

$

8,000,000

 

New Jersey Investment Quality

 

 

 

T7

 

 

 

 

6/25/08

 

 

 

 

17

 

 

$

425,000

 

New Jersey Income

 

 

 

R7

 

 

 

 

6/27/08

 

 

 

 

133

 

 

$

3,325,000

 

New York Income

 

 

 

F7

 

 

 

 

6/30/08

 

 

 

 

278

 

 

$

6,950,000

 

 

 

 

 

W7

 

 

 

 

6/26/08

 

 

 

 

278

 

 

$

6,950,000

 


The Trusts financed the Preferred Share redemptions with cash received from TOB transactions.

Shares issued and outstanding remained constant for Florida 2020 during the year ended July 31, 2009, for New York Investment Quality for the period ended July 31, 2008 and for all Trusts during the year ended October 31, 2007 (December 31, 2007 for Florida 2020).

8. Plan of Reorganization:

On May 28, 2009, the Board of each of California Investment Quality and California Income approved an agreement and plan of reorganization for each of California Investment Quality and California Income, expected to be concluded in the fourth quarter of 2009, subject to shareholder approval and certain other conditions, whereby each of California Investment Quality, BlackRock California Municipal Income Trust II (BCL), BlackRock California Insured Municipal Income Trust (BCK) and BlackRock California Municipal Bond Trust (BZA) (each, a “Target Fund”) will merge with and into a new wholly owned subsidiary of California Income (each, a “Reorganization”). The outstanding Common Shares and Preferred Shares held by each Target Fund’s shareholders will be exchanged for Common Shares or Preferred Shares of California Income, respectively, pursuant to each Reorganization.

9. Subsequent Events:

Each Trust paid a net investment income dividend on September 1, 2009 to Common Shareholders of record on August 14, 2009 as follows:

 

 

 

 

 


 

 

Common Dividend
Per Share

 


California Investment Quality

 

 

$

0.051500

 

 

California Income

 

 

$

0.075700

 

 

Florida 2020

 

 

$

0.056000

 

 

Investment Quality

 

 

$

0.057000

 

 

Municipal Income Investment

 

 

$

0.075375

 

 

New Jersey Investment Quality

 

 

$

0.061400

 

 

New Jersey Income

 

 

$

0.077600

 

 

New York Investment Quality

 

 

$

0.068200

 

 

New York Income

 

 

$

0.080000

 

 


The dividends declared on Preferred Shares for the period August 1, 2009 to August 31, 2009 were as follows:

 

 

 

 

 

 

 

 


 

 

Series

 

Dividends
Declared

 


California Investment Quality

 

 

 

W7

 

 

 

$

2,505

 

 

California Income

 

 

 

T7

 

 

 

$

14,839

 

 

 

 

 

 

R7

 

 

 

$

14,214

 

 

Florida 2020

 

 

 

F7

 

 

 

$

17,736

 

 

Investment Quality

 

 

 

R7

 

 

 

$

1,858

 

 

Municipal Income Investment

 

 

 

T7

 

 

 

$

17,824

 

 

New Jersey Investment Quality

 

 

 

T7

 

 

 

$

2,943

 

 

New Jersey Income

 

 

 

R7

 

 

 

$

23,997

 

 

New York Investment Quality

 

 

 

F7

 

 

 

$

4,022

 

 

New York Income

 

 

 

W7

 

 

 

$

19,973

 

 

 

 

 

 

F7

 

 

 

$

19,534

 

 


Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through September 28, 2009, the date the financial statements were issued.

 

 

 


64

ANNUAL REPORT

JULY 31, 2009




 


 

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees/Directors of BlackRock California Investment Quality Municipal Trust Inc.,
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 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 (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 California Municipal Income Trust, BlackRock Investment Quality Municipal Income Trust (formerly BlackRock Florida Investment Quality Municipal Trust), BlackRock Municipal Income Investment Trust (formerly BlackRock Florida Municipal Income 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, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for the year then ended, for the period November 1, 2007 to July 31, 2008, and for the year ended October 31, 2007, the financial highlights for the respective periods presented, and the statement of cash flows for BlackRock California Municipal Income Trust for the year then ended. We have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock Florida Municipal 2020 Term Trust as of July 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for the year then ended, for the period January 1, 2008 to July 31, 2008, and for the year ended December 31, 2007, and the financial highlights for the respective 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, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock California Investment Quality Municipal Trust Inc., BlackRock California Municipal Income Trust, BlackRock Investment Quality Municipal Income Trust, BlackRock Municipal Income Investment 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, 2009, the results of their operations for the year then ended, the statements of changes in net assets for the year then ended, for the period November 1, 2007 to July 31, 2008, and for the year ended October 31, 2007, the financial highlights for the respective periods presented, and the statement of cash flows for BlackRock California Municipal Income Trust for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Florida Municipal 2020 Term Trust as of July 31, 2009, the results of its operations for the year then ended, the statements of changes in net assets for the year then ended, for the period January 1, 2008 to July 31, 2008, and for the year ended December 31, 2007, and the financial highlights for the respective periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
September 28, 2009

 


Important Tax Information (Unaudited)


The following table summarizes the taxable per share distributions paid by BlackRock New York Investment Quality Municipal Trust Inc. during the taxable year ended July 31, 2009.

 

 

 

 

 

 

 

 

 

 

 


 

 

Record Date

 

Payable
Date

 

Long-Term
Capital Gains

 


Common Shares

 

 

 

12/15/08

 

 

 

 

12/31/08

 

 

 

$

0.005106

 

 

Preferred Shares — Series F7

 

 

 

12/12/08

 

 

 

 

12/15/08

 

 

 

$

7.180000

 

 


All of the net investment income distributions paid by BlackRock California Investment Quality Municipal Trust Inc., 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 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 during the taxable year ended July 31, 2009 qualify as tax-exempt interest dividends for federal income tax purposes.

 

 

 

 


 

ANNUAL REPORT

JULY 31, 2009

65



 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors or the Board of Trustees, as the case may be (each, a “Board” and, collectively, the Boards, 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”), 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 14, 2009 and May 28 – 29, 2009 to consider the approval of its respective Fund’s investment advisory agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor. Each Board also considered the approval of the sub-advisory agreement (each, a “Sub-Advisory Agreement”) between its respective Fund, the Manager and BlackRock Financial Management, Inc. (the “Sub-Advisor”). 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.” Unless otherwise indicated, references to actions taken by the “Board” or the “Boards” shall mean each Board acting independently with respect to its respective Fund.

Activities and Composition of the Boards

Each Board consists of twelve individuals, ten of whom are not “interested persons” as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members of each Fund are responsible for the oversight of the operations of such 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 each Board is an Independent Board Member. Each Board has 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 has one interested Board Member) and is chaired by an Independent Board Member. In addition, each Board has established an Ad Hoc Committee on Auction Market Preferred Shares.

The Agreements

Pursuant to the 1940 Act, each Board is required to consider the continuation of the Agreements on an annual basis. In connection with this process, each Board assessed, among other things, the nature, scope and quality of the services provided to its respective Fund by the personnel of BlackRock and its affiliates, including investment management, administrative services, shareholder services, oversight of fund accounting and custody, marketing services and assistance in meeting legal and regulatory requirements.

Throughout the year, the Boards, acting directly and through their committees, considers at each of their meetings factors that are relevant to their annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Funds and their shareholders. Among the matters the Boards 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 and portfolio managers’ analysis of the reasons for any underperformance against its peers; (b) fees, including advisory fees, administration fees with respect to RNJ, RAA, RFA and RNY, and other amounts paid to BlackRock and its affiliates by the Funds for services such as call center and fund accounting; (c) the Funds’ operating expenses; (d) the resources devoted to, and compliance reports relating to, the Funds’ investment objectives, policies and restrictions; (e) the Funds’ compliance with their 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 the Funds’ valuation and liquidity procedures; and (k) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 14, 2009 meeting, each Board requested and received materials specifically relating to the Agreements. Each Board is engaged in an ongoing process with BlackRock to continuously 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 and open-end funds, under similar investment mandates, as well as the performance of such other clients; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by each Fund to BlackRock; and (f) an internal comparison of management fees classified by Lipper, if applicable.

At an in-person meeting held on April 14, 2009, each Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the April 14, 2009 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 28 – 29, 2009 Board meeting.

At an in-person meeting held on May 28 – 29, 2009, each Fund’s Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and such Fund and the Sub-Advisory Agreement between such Fund, the Manager and the Sub-Advisor, each for a one-year term ending June 30, 2010. The Boards considered all factors they believed relevant with respect to the Funds, including, among other factors: (a) the nature, extent and quality of the

 

 

 




66

ANNUAL REPORT

JULY 31, 2009




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

services provided by BlackRock; (b) the investment performance of the Funds and BlackRock portfolio management; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and certain affiliates from the relationship with the Funds; (d) economies of scale; and (e) other factors.

Each Board also considered other matters it deemed important to the approval process, such as services related to the valuation and pricing of its respective Fund’s portfolio holdings, direct and indirect benefits to BlackRock and its affiliates from their relationship with such Fund and advice from independent legal counsel with respect to the review process and materials submitted for the Board’s 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: Each Board, including its Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of its respective Fund. Throughout the year, each Board compared its respective Fund’s performance to the performance of a comparable group of closed-end funds, and the performance of at least one relevant benchmark, if any. The Boards met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. Each Board also reviewed the materials provided by its respective Fund’s portfolio management team discussing such Fund’s performance and such Fund’s investment objective, strategies and outlook.

Each Board considered, among other factors, the number, education and experience of BlackRock’s investment personnel generally and its respective 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 and BlackRock’s approach to training and retaining portfolio managers and other research, advisory and management personnel. Each Board also reviewed a general description of BlackRock’s compensation structure with respect to its respective Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent.

In addition to advisory services, each Board considered the quality of the administrative and non-investment advisory services provided to its respective Fund. BlackRock and its affiliates provide the Funds with certain administrative and other services (in addition to any such services provided to the Funds by third parties) and officers and other personnel as are necessary for the operations of the Funds. In addition to investment advisory services, BlackRock and its affiliates provide the Funds 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 the Funds; (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 the Funds, 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: Each Board, including its Independent Board Members, also reviewed and considered the performance history of its respective Fund. In preparation for the April 14, 2009 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 its review, each Board received and reviewed information regarding the investment performance of its respective Fund as compared to a representative group of similar funds as determined by Lipper and to all funds in such Fund’s applicable Lipper category and customized peer group selected by BlackRock, as applicable. Each Board was provided with a description of the methodology used by Lipper to select peer funds. Each Board regularly reviews the performance of its respective Fund throughout the year.

The Board of RAA noted that RAA performed below the median of its customized Lipper peer group composite in 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, although RAA’s non-competitive yield distribution continues to hinder performance, progress has been made with respect to RAA’s duration management and credit selection components.

The Board of BFO noted that BFO performed below the median of its Lipper performance universe composite in the one- and three-year periods reported and BFO performed above the median of its Lipper performance universe composite in the five-year period 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, performance was heavily influenced by BFO’s sector allocation with volatile market movement last year.

The Board of RFA noted that RFA performed below the median of its customized Lipper peer group composite in 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, overweight positions in the hospital and housing sectors and poor performance of some insured and AMT bonds held by RFA negatively impacted RFA’s performance.

The Board of RNJ noted that RNJ performed below the median of its Lipper performance universe composite in the three- and five-year periods reported and RNJ performed above the median of its Lipper performance universe

 

 

 


ANNUAL REPORT

JULY 31, 2009

67




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

composite in the one-year period reported. The Board of RNJ and BlackRock reviewed the reasons for RNJ’s underperformance during these periods compared with its Peers. The Board of RNJ was informed that, among other things, RNJ’s overweight positions in the hospital and housing sectors and poor performance of some insured and AMT bonds held by RNJ negatively impacted RNJ’s performance.

For RAA, BFO, RFA and RNJ, the Board of each respective Fund and BlackRock discussed BlackRock’s commitment to providing the resources necessary to assist the portfolio managers and to improve each such Fund’s performance.

The Boards of BFZ, BBF, RNY and BNY noted that, in general, BFZ, BBF, RNY and BNY performed better than their respective Peers in that the performance of each of BFZ, BBF, RNY and BNY were at or above the median of their respective customized Lipper peer group composite in each of the one-, three- and five-year periods reported.

The Board of BNJ noted that, in general, BNJ performed better than its Peers in that BNJ’s performance was at or above the median of its Lipper performance universe composite in each of the one-, three- and five-year periods reported.

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: Each Board, including its Independent Board Members, reviewed its respective Fund’s contractual advisory fee rates compared with the other funds in its respective Lipper category. Each Board also compared its respective Fund’s total expenses, as well as actual management fees, to those of other comparable funds. Each Board 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 the Funds. The Boards were also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Funds. The Boards reviewed BlackRock’s profitability with respect to the Funds and other funds the Boards currently oversee for the year ended December 31, 2008 compared to available aggregate profitability data provided for the year ended December 31, 2007. 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 by the Manager, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited.

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 is available, the Boards considered BlackRock’s overall operating margin compared to the operating margin for leading investment management firms whose operations include advising closed-end funds, among other product types. The comparison indicated that operating margins for BlackRock with respect to its registered funds are 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, which concluded 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 the Funds by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management and distribution of the Funds 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 the Funds. 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.

Each Board noted that its respective Fund paid contractual management fees, which do not take into account any expense reimbursement or fee waivers, lower than or equal to the median contractual management fees paid by such Fund’s Peers.

D. Economies of Scale: Each Board, including its Independent Board Members, considered the extent to which economies of scale might be realized as the assets of its respective Fund increase and whether there should be changes in the advisory fee rate or structure in order to enable such Fund to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the assets of such Fund. The Boards considered that the funds in the BlackRock fund complex share some common resources and, as a result, an increase in the overall size of the complex could permit each fund to incur lower expenses than it would otherwise as a stand-alone entity. 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 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 used a complex-level breakpoint structure.

E. Other Factors: The Boards also took into account other ancillary or “fallout” benefits that BlackRock or its affiliates and significant shareholders may derive from their relationship with the Funds, 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 as service providers to the Funds, including for administrative and distribution services. The Boards also noted that BlackRock may use third-party research obtained by soft dollars generated by certain mutual fund transactions to assist itself in managing all or a number of its other client accounts.

 

 

 




68

ANNUAL REPORT

JULY 31, 2009




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

In connection with their 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.

Conclusion

Each Board, including its Independent Board Members, unanimously approved the continuation of the Advisory Agreement between its respective Fund and the Manager for a one-year term ending June 30, 2010 and the Sub-Advisory Agreement between such Fund, the Manager and Sub-Advisor for a one-year term ending June 30, 2010. Based upon its evaluation of all these factors in their totality, each Board, including its Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of its respective Fund and its shareholders. In arriving at a decision to approve the Agreements, each Board 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 reflects the results of several years of review by such Fund’s 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.

 

 

 


ANNUAL REPORT

JULY 31, 2009

69




 


 

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 elect not to 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.

At present, after Florida 2020 declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participant’s account, by the purchase of outstanding shares on the open market, on the Trust’s primary exchange or elsewhere (“open market purchases”).

After the Investment Quality Trusts and Income Trusts declare a dividend or determine to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ accounts, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by 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 being referred to herein as “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 being referred to herein as “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open market purchases.

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 Agent 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.

 

 

 




70

ANNUAL REPORT

JULY 31, 2009



 


 

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 Funds
and Portfolios
Overseen

 

Public Directorships












Non-Interested Trustees1

 

 

 

 

 

 

 

 












Richard E. Cavanagh
40 East 52nd Street
New York, NY 10022
1946

 

Chairman of
the Board
and Trustee

 

Since 1994

 

Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life Insurance Company of America since 1998; Trustee, Educational Testing Service from 1997 to 2009 and Chairman 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 of The Conference Board, Inc. (global business research organization) from 1995 to 2007.

 

104 Funds
101 Portfolios

 

Arch Chemical (chemical and allied products)












Karen P. Robards
40 East 52nd Street
New York, NY 10022
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 Enable Medical Corp. from 1996 to 2005.

 

104 Funds
101 Portfolios

 

AtriCure, Inc. (medical devices); Care Investment Trust, Inc. (health care real estate investment trust)












G. Nicholas Beckwith, III
40 East 52nd Street
New York, NY 10022
1945

 

Trustee

 

Since 2007

 

Chairman and Chief Executive Officer, Arch Street Management, LLC (Beckwith Family Foundation) and various Beckwith property companies since 2005; Chairman of the Board of Directors, University of Pittsburgh Medical Center since 2002; Board of Directors, Shady Side Hospital Foundation since 1977; Board of Directors, Beckwith Institute for Innovation In Patient Care since 1991; Member, Advisory Council on Biology and Medicine, Brown University since 2002; Trustee, Claude Worthington Benedum Foundation (charitable foundation) since 1989; Board of Trustees, Chatham University since 1981; Board of Trustees, University of Pittsburgh since 2002; Emeritus Trustee, Shady Side Academy since 1977; Chairman and Manager, Penn West Industrial Trucks LLC (sales, rental and servicing of material handling equipment) from 2005 to 2007; Chairman, President and Chief Executive Officer, Beckwith Machinery Company (sales, rental and servicing of construction and equipment) from 1985 to 2005; Member of the Board of Directors, National Retail Properties (REIT) from 2006 to 2007.

 

104 Funds
101 Portfolios

 

None












Kent Dixon
40 East 52nd Street
New York, NY 10022
1937

 

Trustee and
Member of
the Audit
Committee

 

Since 1988

 

Consultant/Investor since 1988.

 

104 Funds
101 Portfolios

 

None












Frank J. Fabozzi
40 East 52nd Street
New York, NY 10022
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.

 

104 Funds
101 Portfolios

 

None












Kathleen F. Feldstein
40 East 52nd Street
New York, NY 10022
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. since 2005; 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.

 

104 Funds
101 Portfolios

 

The McClatchy Company (publishing)












James T. Flynn
40 East 52nd Street
New York, NY 10022
1939

 

Trustee

 

Since 2007

 

Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.

 

104 Funds
101 Portfolios

 

None












Jerrold B. Harris
40 East 52nd Street
New York, NY 10022
1942

 

Trustee

 

Since 2007

 

Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000.

 

104 Funds
101 Portfolios

 

BlackRock Kelso Capital Corp.













 

 

 


ANNUAL REPORT

JULY 31, 2009

71




 


 

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 Funds
and Portfolios
Overseen

 

Public Directorships












Non-Interested Trustees1 (concluded)

 

 

 

 

 

 

 

 












R. Glenn Hubbard
40 East 52nd Street
New York, NY 10022
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; Visiting Professor, John F. Kennedy School of Government at Harvard University and the Harvard Business School since 1985 and at the University of Chicago since 1994; Chairman, U.S. Council of Economic Advisers under the President of the United States from 2001 to 2003.

 

104 Funds
101 Portfolios

 

ADP (data and information services); KKR Financial Corporation (finance); Metropolitan Life Insurance Company (insurance)












W. Carl Kester
40 East 52nd Street
New York, NY 10022
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 since 2006; 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.

 

104 Funds
101 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: G. Nicholas Beckwith, III, 1999; Richard E. Cavanagh, 1994; Kent Dixon, 1988; 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
40 East 52nd Street
New York, NY 10022
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; Chairman, SSR Realty from 2000 to 2004.

 

173 Funds
283 Portfolios

 

None












Henry Gabbay
40 East 52nd Street
New York, NY 10022
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.

 

173 Funds
283 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 PNC securities. Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.


 

 

 




72

ANNUAL REPORT

JULY 31, 2009




 


 

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

 

 

 

 

 

 








Donald C. Burke
40 East 52nd Street
New York, NY 10022
1960

 

President
and Chief
Executive
Officer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. (“FAM”) in 2006, First Vice President thereof from 1997 to 2005, Treasurer thereof from 1999 to 2006 and Vice President thereof from 1990 to 1997.








Anne F. Ackerley
40 East 52nd Street
New York, NY 10022
1962

 

Vice
President

 

Since 2003

 

Managing Director of BlackRock, Inc. since 2000; Vice President of BlackRock-advised funds from 2007 to 2009; Chief Operating Officer of BlackRock’s Account Management Group (AMG) since 2009; Chief Operating Officer of BlackRock’s U.S. Retail Group since 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006.








Neal J. Andrews
40 East 52nd Street
New York, NY 10022
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 (U.S.) Inc. from 1992 to 2006.








Jay M. Fife
40 East 52nd Street
New York, NY 10022
1970

 

Treasurer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Formerly Assistant Treasurer of the MLIM/FAM- advised Funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.








Brian P. Kindelan
40 East 52nd Street
New York, NY 10022
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; Formerly Director and Senior Counsel of BlackRock Advisors, LLC from 2001 to 2004.








Howard B. Surloff
40 East 52nd Street
New York, NY 10022
1965

 

Secretary

 

Since 2007

 

Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; Formerly General Counsel (U.S.) 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.





 

 

Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809

 

 

Custodian
State Street Bank and
Trust Company
Boston, MA 02101

 

 

Sub-Advisor
BlackRock Financial
Management, Inc.
New York, NY 10022

 

 

Transfer Agent
Common Shares:
Computershare Trust Company, N.A.
Providence, RI 02940

 

 

Auction Agent:
BNY Mellon Shareowner Services2
Jersey City, NJ 07310

Deutsche Bank Trust Company Americas3
New York, NY 10005

 

 

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
BlackRock Closed-End Funds
c/o BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809

 

 

2

For the Income Trusts and Florida Municipal 2020 Term Trust

3

For the Investment Quality Trusts


 


 

Effective July 31, 2009, Donald C. Burke, President and Chief Executive Officer of the Trusts retired. The Trusts’ Boards of Trustees wish Mr. Burke well in his retirement.

 

Effective August 1, 2009, Anne F. Ackerley became President and Chief Executive Officer of the Trusts, and Brendan Kyne became Vice President of the Trusts.

 



 

 

 


ANNUAL REPORT

JULY 31, 2009

73



 


 

Additional Information

 


General Information


The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.

Other than the revisions discussed in Board Approvals on page 75, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charters or by-laws that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolio.

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website into this report.

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 it 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 contact the Trusts at (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Trust files its complete schedule of portfolio holdings with the 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 (202) 551-8090. 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 toll-free (800) 441-7762; (2) at 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 www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

 


Section 19 Notices


These amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Trust’s investment experience during the year and may be subject to changes based on the tax regulations. The Trusts will send you a Form 1099-DIV each calendar year that will tell you how to report these distributions for federal income tax purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 







 

 

Total Fiscal Year-to-Date
Cumulative Distributions by Character

 

Percentage of Fiscal Year-to-Date
Cumulative Distributions by Character

 

 

 


 


 

 

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

 



















California Investment Quality

 

$

0.568000

 

 

 

 

 

 

$0.568000

 

 

100%

 

 

0%

 

 

0%

 

 

100%

 

New York Investment Quality

 

$

0.718400

 

$

0.005106

 

 

 

 

$0.723506

 

 

  99%

 

 

1%

 

 

0%

 

 

100%

 




























 


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.

 

 

 




74

ANNUAL REPORT

JULY 31, 2009




 


 

Additional Information (concluded)

 


Board Approvals


On September 12, 2008, the Board of Trustees of BlackRock Florida Investment Quality Municipal Trust and BlackRock Florida Municipal Income Trust voted unanimously to change a non-fundamental investment policy of the Trusts, and to rename the Trusts “BlackRock Investment Quality Municipal Income Trust” and “BlackRock Municipal Income Investment Trust,” respectively. The Trusts’ previous non-fundamental investment policy required BlackRock Florida Investment Quality Municipal Trust to invest at least 80% of its assets, and BlackRock Florida Municipal Income Trust to invest at least 80% of its total assets, in Florida municipal bonds rated investment grade at the time of investment. Due to the repeal of the Florida Intangible Personal Property Tax as of January 2007, the Board has approved an amended policy allowing the Trusts flexibility to invest in municipal obligations regardless of geographic location. The Trusts’ new investment policy, under normal market conditions, is to invest at least 80% of their assets or total assets, as the case may be, in municipal bonds rated investment grade at the time of investment. The approved changes will not alter the Trusts’ investment objectives.

Under current market conditions, the Manager anticipates that it will gradually reposition the Trusts’ portfolios over time and that during such period the Trusts may continue to hold a substantial portion of its assets in Florida municipal bonds. At this time, it is uncertain how long the repositioning may take, and the Trusts will continue to be subject to risks associated with investing a substantial portion of its assets in Florida municipal bonds until the repositioning is complete.

The Manager and the Board believe the amended policy will allow the Manager to better manage the Trusts’ portfolios in the best interests of the Trusts’ shareholders and to better meet the Trusts’ investment objectives.

Effective September 12, 2008, following approval by the Trusts’ Board, the Board ratified the amendment of the terms of the Trusts’ Preferred Shares in order to allow the Trusts to enter into TOB transactions, the proceeds of which were used to redeem a portion of the Trusts’ Preferred Shares. Accordingly, the definition of Inverse Floaters was amended to incorporate the Trusts’ permissible ratio of floating rate instruments into inverse floating rate instruments. Additionally, conforming changes and certain formula modifications concerning inverse floaters were made to the definitions of Moody’s Discount Factor and S&P Discount Factor, as applicable, to integrate the Trusts’ investments in TOBs into applicable calculations.

 


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, 2009

75



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 affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

 

 

(PAPERLESS LOGO)

(BLACKROCK LOGO)


#CEF-SAR-BK9-07/09

 

 

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

 

Frank J. Fabozzi

 

James T. Flynn

 

W. Carl Kester

 

Karen P. Robards

 

Robert S. Salomon, Jr. (retired effective December 31, 2008)

 

 

 

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 Municipal
Income Investment Trust

 

$28,300

 

$27,400

 

$3,500

 

$3,500

 

$6,100

 

$6,100

 

$1,028

 

$1,049

 

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 for all of the registrants the Committee oversees. 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 one or more of its members 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 Municipal Income Investment Trust

 

$418,128

 

$409,549

 


 

 

 

(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) – $407,500, 0%

 

 

Item 5 –

Audit Committee of Listed Registrants – 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

 

Frank J. Fabozzi

 

James T. Flynn

 

W. Carl Kester

 

Karen P. Robards

 

Robert S. Salomon, Jr. (retired effective December 31, 2008)

 

 

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, 2009.


 

 

 

 

(a)(1)

The registrant (or “Fund”) is managed by a team of investment professionals comprised of Robert Sneeden, Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock and Walter O’Connor, Managing Director at BlackRock. Each is a member of BlackRock’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. Sneeden, Jaeckel and O’Connor have been members of the registrant’s portfolio management team since 2006, 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.

 




 

Robert Sneeden

 

Director of BlackRock, Inc. since 2006; Vice President of MLIM from 1998 to 2006.

 




 

 

 

 

 

(a)(2) As of July 31, 2009:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 


 


 


 


 


 


 


 

Walter O’Connor

 

76

 

0

 

0

 

0

 

0

 

0

 

 

 

$17.8 Billion

 

$0

 

$0

 

$0

 

$0

 

$0

 

Theodore R. Jaeckel, Jr.

 

76

 

0

 

0

 

0

 

0

 

0

 

 

 

$17.8 Billion

 

$0

 

$0

 

$0

 

$0

 

$0

 

Robert Sneeden

 

13

 

0

 

0

 

0

 

0

 

0

 

 

 

$1.76 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, 2009:

 

 

 

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.




 

 

 

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 for the Fund 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”) — The LTIP is a long-term incentive plan that seeks to reward certain key employees. Beginning in 2006, awards are granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the attainment of certain performance goals, will be settled in BlackRock, Inc. common stock. Messrs. O’Connor and Jaeckel 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. O’Connor, Jaeckel and Sneeden 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 – July 31, 2009.


 

 

 

Portfolio Manager

 

Dollar Range of Equity Securities
Beneficially Owned


 


Walter O’Connor

 

None

Theodore R. Jaeckel, Jr.

 

None

Robert Sneeden

 

None


 

 

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 13(a)-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 Municipal Income Investment Trust

 

 

 

 

 

By:

 

/s/ Anne F. Ackerley

 

 

 


 

 

 

 

Anne F. Ackerley

 

 

 

 

Chief Executive Officer of

 

 

 

BlackRock Municipal Income Investment Trust

 

 

 

 

 

Date: September 22, 2009

 

 

 

 

 

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 Municipal Income Investment Trust

 

 

Date: September 22, 2009

 

 

By:

 

/s/ Neal J. Andrews

 

 

 


 

 

 

 

Neal J. Andrews

 

 

 

Chief Financial Officer (principal financial officer) of

 

 

 

BlackRock Municipal Income Investment Trust

 

 

 

 

 

Date: September 22, 2009