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:
John M. Perlowski, Chief Executive Officer, BlackRock Municipal Income Investment Trust, 55 East 52nd Street, New York,
NY 10055
Registrant’s telephone number,
including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2014
Date of reporting period: 07/31/2014
Item 1 – Report to Stockholders
JULY 31, 2014
ANNUAL REPORT |
|
|
BlackRock California Municipal Income
Trust (BFZ)
BlackRock Florida Municipal 2020 Term
Trust (BFO)
BlackRock Municipal Income Investment
Trust (BBF)
BlackRock Municipal Target Term Trust
(BTT)
BlackRock New Jersey Municipal Income
Trust (BNJ)
BlackRock New York Municipal Income
Trust (BNY)
Not FDIC Insured May Lose Value No Bank Guarantee |
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Table of
Contents
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Page |
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Shareholder Letter |
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3 |
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Annual Report:
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Municipal Market Overview |
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4 |
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The
Benefits and Risks of Leveraging |
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5 |
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Derivative Financial Instruments |
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5 |
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Trust Summaries |
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6 |
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Financial Statements:
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Schedules of Investments |
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18 |
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Statements of Assets and Liabilities |
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46 |
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Statements of Operations |
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47 |
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Statements of Changes in Net Assets |
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48 |
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Statements of Cash Flows |
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50 |
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Financial Highlights |
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51 |
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Notes to Financial Statements |
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57 |
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Report of Independent Registered Public Accounting Firm |
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71 |
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Disclosure of Investment Advisory Agreements |
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72 |
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Automatic Dividend Reinvestment Plans |
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76 |
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Officers and Trustees |
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77 |
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Additional Information |
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80 |
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2 |
ANNUAL REPORT |
JULY 31, 2014
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Dear
Shareholder,
The latter part of 2013 was a strong
period for equities and other risk assets such as high yield bonds, despite the mixed tone of economic and financial news and
uncertainty as to when and by how much the U.S. Federal Reserve would begin to gradually reduce (or taper) its asset
purchase programs. Stock markets rallied in September when the Fed defied investors expectations with its decision to delay
tapering. The momentum was disrupted temporarily, however, when the U.S. debt ceiling debate led to a partial government shutdown,
roiling financial markets globally until a compromise was struck in mid-October. The remainder of 2013 was generally positive
for developed market stocks, while fixed income and emerging market investments struggled as Fed tapering became increasingly
imminent. When the central bank ultimately announced its tapering plans in mid-December, equity investors reacted positively,
as this action signaled the Feds perception of real improvement in the economy.
Most asset classes continued to
move higher in 2014 despite the pull back in Fed stimulus. The year got off to a rocky start, however. A number of emerging economies
showed signs of financial stress while facing the broader headwind of diminishing global liquidity. These risks, combined with
disappointing U.S. economic data, caused equities to decline in January while bond markets found renewed strength from investors
seeking relatively safer assets.
Although these headwinds persisted,
equities were back on the rise in February as investors were encouraged by a one-year extension of the U.S. debt ceiling and market-friendly
comments from the new Fed Chairwoman, Janet Yellen. While it was clear that U.S. economic data had softened, investors were assuaged
by increasing evidence that the trend was temporary and weather-related, and continued to take on risk given expectations that
growth would pick up later in the year.
In the months that followed, interest
rates trended lower and bond prices climbed higher in the modest growth environment. Financial markets exhibited a remarkably
low level of volatility despite rising geopolitical risks and mixed global economic news. Tensions in Russia and Ukraine and signs
of decelerating growth in China caused some turbulence, but markets were resilient as investors focused on signs of improvement
in the U.S. recovery, stronger corporate earnings and increased merger-and-acquisition activity. Importantly, investors were comforted
by comments from the Fed offering reassurance that no changes to short-term interest rates were on the horizon.
In the low-rate environment, investors
looked to equities as a source of yield, pushing major indices to record highs. As stock prices moved higher, investors soon became
wary of stretched valuations and a new theme emerged in the markets. Stocks that had experienced significant price appreciation
in 2013, particularly growth and momentum names, broadly declined as investors fled to stocks with cheaper valuations. This rotation
resulted in the strongest performers of 2013 struggling most in 2014, and vice versa. Especially hard hit were U.S. small cap
and European stocks where earnings growth had not kept pace with recent market gains. In contrast, emerging market stocks benefited
from the trend. As a number of developing countries took steps to stabilize their finances, investors looked past political risks
hardly batting an eye at a military coup in Thailand and poured back into these attractively priced investments.
Asset prices tend to be more vulnerable
to bad news when investors believe valuations are stretched. Consequently, markets came under pressure in July as geopolitical
tensions intensified with the tragic downing of a Malaysian civilian airliner over Ukraine, the continued fragmentation of Iraq
and a ground war between Israel and Hamas in Gaza. As the period came to a close, financial troubles in Argentina and Portugal
as well as new U.S. and European sanctions on Russia were additional headwinds for the markets.
Despite a host of challenges, most
asset classes generated solid returns for the six- and 12-month periods ended July 31, 2014, with equities generally outperforming
fixed income. Emerging market equities delivered impressive gains. Developed markets also performed well, although small cap stocks
lagged due to relatively higher valuations. Most fixed income assets produced positive returns even as the Fed reduced its open-market
purchases. Tax-exempt municipal bonds benefited from a favorable supply-and-demand environment. Short-term interest rates remained
near zero, keeping yields on money market securities close to historic lows.
At BlackRock, we believe investors
need to think globally, extend their scope across a broad array of asset classes and be prepared to move freely as market conditions
change over time. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about
investing in todays world.
Sincerely,
Rob Kapito
President, BlackRock Advisors,
LLC
|
Asset prices pushed higher over the period despite modest
global growth, geopolitical risks and a shift toward tighter U.S. monetary policy. |
Rob Kapito
President, BlackRock Advisors, LLC
Total Returns as of July 31, 2014
|
|
6-month |
|
12-month |
U.S.
large cap equities (S&P 500® Index) |
|
|
9.44 |
% |
|
|
16.94 |
% |
U.S.
small cap equities (Russell 2000® Index) |
|
|
(0.30 |
) |
|
|
8.56 |
|
International equities (MSCI Europe, Australasia, Far East Index) |
|
|
7.03 |
|
|
|
15.07 |
|
Emerging market equities (MSCI Emerging Markets Index) |
|
|
15.70 |
|
|
|
15.32 |
|
3-month Treasury bill (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index) |
|
|
0.02 |
|
|
|
0.05 |
|
U.S.
Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index) |
|
|
2.71 |
|
|
|
3.50 |
|
U.S.
investment grade bonds (Barclays U.S. Aggregate Bond Index) |
|
|
2.16 |
|
|
|
3.97 |
|
Tax-exempt municipal bonds (S&P Municipal Bond Index) |
|
|
4.11 |
|
|
|
7.38 |
|
U.S.
high yield bonds (Barclays U.S. Corporate High Yield 2% Issuer Capped Index) |
|
|
3.33 |
|
|
|
8.18 |
|
Past performance is no guarantee of future results. Index performance is shown for illustrative
purposes only. You cannot invest directly in an index.
THIS PAGE NOT PART OF YOUR FUND
REPORT
|
3 |
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Municipal Market Overview |
|
For the Reporting Period Ended July 31, 2014
Municipal Market Conditions
The latter part of 2013 was a generally negative period for
municipal bond performance. Heightened uncertainty as to when the U.S. Federal Reserve would begin to reduce its bond-buying stimulus program (and by
how much) caused interest rates to be volatile and generally move higher. (Bond prices fall as rates rise.) Municipal bond mutual funds saw strong
outflows through year end when the Fed finally announced its plan to begin the gradual reduction of stimulus in January of 2014. Relieved of anxiety
around policy changes, investors again sought the relative safety of municipal bonds in the New Year. Surprisingly, interest rates trended lower in the
first half of 2014 even as the Fed pulled back on its open-market bond purchases. Softer U.S. economic data amid one of the harshest winters on record,
coupled with reassurance from the Fed that short-term rates would remain low for a considerable amount of time, resulted in stronger demand for fixed
income investments, with municipal bonds being one of the stronger performing sectors. Still, for the 12-month period ended July 31, 2014, municipal
bond funds saw net outflows of approximately $35 billion (based on data from the Investment Company Institute).
High levels of interest rate volatility in the latter half of 2013, particularly on the long-end of the curve, resulted in a curtailment of tax-exempt issuance during the period. However, from a historical perspective, total new issuance for the 12 months ended July 31 remained relatively
strong at $303 billion (but meaningfully lower than the $364 billion issued in the prior 12-month period). A noteworthy portion of new supply during
this period was attributable to refinancing activity (roughly 40%) as issuers took advantage of lower interest rates to reduce their borrowing costs.
|
S&P Municipal Bond Index Total Returns as of July 31, 2014 |
6 months: |
4.11% |
12 months: |
7.38% |
|
|
From July 31, 2013 to July 31, 2014, muni yields on AAA-rated 30-year municipal bonds decreased by 90 basis points (bps) from
4.20% to 3.30%, while 10-year rates decreased 41 bps from 2.67% to 2.26% on and 5-year rates fell 5 bps from 1.27% to 1.22% (as measured by Thomson
Municipal Market Data). Overall, the municipal yield curve remained relatively steep over the 12-month period even as the spread between 2- and 30-year
maturities flattened by 78 bps and the spread between 2- and 10-year maturities flattened by 29 bps.
During the same time period, U.S. Treasury rates fell by 32 bps on
30-year and 2 bps on 10-year bonds, while moving up 37 bps in 5-years. Accordingly, tax-exempt municipal bonds outperformed Treasuries across the yield
curve as investors sought to reduce interest rate risk later in the period. On the short and intermediate parts of the curve, the outperformance of
municipal bonds versus Treasuries was driven largely by a supply/demand imbalance within the municipal market and a rotation from long-duration assets
into short- and intermediate-duration investments, which are less sensitive to interest rate movements. Additionally, municipal bonds benefited from
the increased appeal of tax-exempt investing in the new higher tax rate environment. The asset class is known for its lower relative volatility and
preservation of principal with an emphasis on income as tax rates rise. The municipal market continues to be an attractive avenue for investors seeking
yield in the low-rate environment. However, opportunities have not been as broad-based as in 2011 and 2012, warranting a more tactical approach going
forward.
Financial Conditions of Municipal Issuers Continue to
Improve
Following an extended period of nation-wide austerity and
de-leveraging as states sought to balance their budgets, 16 consecutive quarters of positive revenue growth coupled with the elimination of more than
750,000 jobs in recent years have put state and local governments in a better financial position. Many local municipalities, however, continue to face
increased health care and pension costs passed down from the state level. BlackRock maintains the view that municipal bond defaults will be minimal and
remain in the periphery, and that the overall market is fundamentally sound. We continue to recognize that careful credit research, appropriate
structure and security selection remain imperative amid uncertainty in a modestly improving economic environment.
Past performance is no guarantee of
future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
4 |
ANNUAL REPORT |
JULY 31, 2014
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| |
The Benefits and Risks of Leveraging |
|
The Trusts may utilize leverage to seek to enhance the yield and
net asset value (NAV) of their common shares (Common Shares). However, these objectives cannot be achieved in all interest rate
environments.
In general, the concept of leveraging is based on the premise that
the financing cost of leverage, which will be based on short-term interest rates, will normally be lower than the income earned by a Trust on its
longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Trust (including the assets
obtained from leverage) are invested in higher-yielding portfolio investments, the Trusts shareholders will benefit from the incremental net
income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of
these portfolio holdings is reflected in the per share NAV.
To illustrate these concepts, assume a Trusts Common Shares capitalization is $100 million and it
utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in
longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the
yield curve has a strongly positive slope. In this case, the Trusts financing costs on the $30 million of proceeds
obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by the
Trust with the proceeds from leverage earn income based on longer-term interest rates. In this case, the Trusts
financing cost of leverage is significantly lower than the income earned on the Trusts longer-term investments acquired
from leverage proceeds, and therefore the holders of Common Shares (Common Shareholders) are the beneficiaries of
the incremental net income.
However, in order to benefit Common Shareholders, the return on
assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the
Trusts return on assets purchased with leverage proceeds, income to shareholders will be lower than if the Trust had not used leverage.
Furthermore, the value of the Trusts portfolio investments generally varies inversely with the direction of long-term interest rates, although
other factors can influence the value of portfolio investments. In contrast, the value of the Trusts obligations under its leverage arrangement
generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts NAVs positively or
negatively.
Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Trusts
intended leveraging strategy will be successful.
Leverage also will generally cause greater changes in the
Trusts NAVs, market prices and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a
greater decline in the net asset value and market price of a Trusts Common Shares than if the Trust were not leveraged. In addition, the Trust
may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to
the use of leverage or as required by the terms of leverage instruments, which may cause the Trust 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. The Trust will incur expenses in connection
with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.
To obtain leverage, each Trust has issued Variable Rate Demand
Preferred Shares (VRDP Shares), Variable Rate Muni Term Preferred Shares (VMTP Shares), Remarketable Variable Rate Muni Term
Preferred Shares (RVMTP Shares) or Auction Market Preferred Shares (AMPS) (collectively, Preferred Shares) and/or
leveraged its assets through the use of tender option bond trusts (TOBs) as described in the Notes to Financial
Statements.
Under the Investment Company Act of 1940
(the 1940 Act), each Trust is permitted to issue debt up to 331⁄3%
of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of
its total managed assets. A Trust may voluntarily elect to limit its leverage to less
than the maximum amount permitted under the 1940 Act. In addition, a Trust may also be
subject to certain asset coverage, leverage or portfolio composition requirements imposed
by the Preferred Shares governing instruments or by agencies rating the Preferred
Shares, which may be more stringent than those imposed by the 1940 Act.
If a Trust segregates or designates on its books and records cash
or liquid assets having a value not less than the value of the Trusts obligations under the TOB (including accrued interest), a TOB will not be
considered a senior security and will not be subject to the foregoing limitations and requirements under the 1940 Act.
Derivative Financial Instruments
The Trusts may invest in various derivative financial instruments,
including financial futures contracts and options, as specified in Note 4 of the Notes to Financial Statements, which may constitute forms of economic
leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical
custody of securities or to hedge market and/or interest rate risks. Derivative financial instruments involve risks, including the imperfect
correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or
illiquidity of the derivative financial instrument. The Trusts ability to use a
derivative financial instrument successfully depends on the
investment advisors ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial
instruments may result in losses greater than if they had not been used, may require a Trust to sell or purchase portfolio investments at inopportune
times or for distressed values, may limit the amount of appreciation a Trust can realize on an investment, may result in lower dividends paid to
shareholders and/or may cause a Trust to hold an investment 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, 2014 |
5
|
| |
Trust Summary as of
July 31, 2014 |
BlackRock California
Municipal Income Trust
|
Trust Overview
BlackRock California Municipal Income Trusts (BFZ) (the
Trust) investment objective is to provide current income exempt from regular U.S. federal income and California income taxes. The Trust
seeks to achieve its investment objective by investing primarily in municipal obligations exempt from federal income taxes (except that the interest
may be subject to the federal alternative minimum tax) and California income taxes. The Trust invests, under normal market conditions, at least 80% of
its assets in municipal obligations that are investment grade quality. The Trust may invest directly in such securities or synthetically through the
use of derivatives.
No
assurance can be given that the Trusts investment objective will be achieved.
Performance
|
|
For the 12-month period ended July 31, 2014, the Trust returned
12.80% based on market price and 16.48% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an
average return of 15.36% based on market price and 15.42% based on NAV. All returns reflect reinvestment of dividends. The Trusts discount to
NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following
discussion relates to performance based on NAV. |
|
|
Tax-exempt rates declined during the period, supporting generally
positive performance for municipal bonds. (Bond prices rise when rates fall.) Municipal bonds with longer durations (and greater sensitivity to
interest rate movements) tended to provide the strongest returns. In this environment, the Trusts exposure to the long end of the yield curve had
a positive impact on performance. Security selection also helped performance, particularly with respect to the Trusts holdings of high quality
school district issues, which performed well amid the improvement in the State of Californias finances. The Trusts holdings in the health
care, transportation and utilities sectors also added to returns. The Trusts use of tender option bonds amplified the positive effect of falling
rates on performance. |
|
|
The Trusts cash reserves were generally maintained at a
minimal level. However, to the extent reserves were held, the cash holdings added little in the form of additional yield and provided no price
appreciation in a generally positive period for the municipal market. |
|
|
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) |
|
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|
BFZ |
Initial Offering Date |
|
|
|
July 27, 2001 |
Yield on Closing Market Price as of July 31, 2014 ($14.41)1 |
|
|
|
6.01% |
Tax
Equivalent Yield2 |
|
|
|
12.25% |
Current Monthly Distribution per Common Share3 |
|
|
|
$0.0722 |
Current Annualized Distribution per Common Share3 |
|
|
|
$0.8664 |
Economic Leverage as of July 31, 20144 |
|
|
|
36% |
1
|
| Yield on closing market price is calculated by dividing the
current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
2
|
| Tax equivalent yield assumes the maximum marginal federal and
state tax rate of 50.93%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will
result in lower tax equivalent yields. |
3
|
| The distribution rate is not constant and is subject to
change. |
4
|
| Represents VMTP Shares and TOBs as a percentage of total managed
assets, which is the total assets of the Trust, including any assets attributable to VMTP 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 5. |
6 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
|
BlackRock California
Municipal Income Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/14
|
|
7/31/13
|
|
Change
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High
|
|
Low
|
Market Price |
|
|
|
$ |
14.41 |
|
|
$ |
13.63 |
|
|
|
5.72 |
% |
|
$ |
15.18 |
|
|
$ |
13.02 |
|
Net Asset Value |
|
|
|
$ |
15.83 |
|
|
$ |
14.50 |
|
|
|
9.17 |
% |
|
$ |
15.92 |
|
|
$ |
13.94 |
|
Market
Price and Net Asset Value History For the Past Five Years |
|
|
|
Overview of the Trusts Long-Term Investments
Sector Allocation
|
|
|
|
7/31/14
|
|
7/31/13
|
County/City/Special District/School District |
|
|
|
|
33 |
% |
|
|
35 |
% |
Utilities |
|
|
|
|
31 |
|
|
|
29 |
|
Health |
|
|
|
|
11 |
|
|
|
11 |
|
State |
|
|
|
|
8 |
|
|
|
5 |
|
Education |
|
|
|
|
8 |
|
|
|
10 |
|
Transportation |
|
|
|
|
7 |
|
|
|
9 |
|
Housing |
|
|
|
|
1 |
|
|
|
1 |
|
Corporate |
|
|
|
|
1 |
|
|
|
|
|
|
|
For Trust compliance purposes, the Trusts
sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group
indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease. |
|
|
Call/Maturity
Schedule3
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
2014 |
|
|
|
|
1 |
% |
2015 |
|
|
|
|
2 |
|
2016 |
|
|
|
|
3 |
|
2017 |
|
|
|
|
10 |
|
2018 |
|
|
|
|
20 |
|
3
|
| Scheduled maturity dates and/or bonds that are subject to
potential calls by issuers over the next five years. |
Credit Quality
Allocation1
|
|
|
|
7/31/14
|
|
7/31/13
|
AAA/Aaa |
|
|
|
|
11 |
% |
|
|
9 |
% |
AA/Aa |
|
|
|
|
71 |
|
|
|
72 |
|
A |
|
|
|
|
18 |
|
|
|
19 |
|
BBB/Baa |
|
|
|
|
|
2 |
|
|
|
|
1 |
|
For financial reporting purposes, credit quality
ratings shown above reflect the highest rating assigned by either Standard & Poors (S&P) or Moodys Investors Service
(Moodys) if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are
widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower.
Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality
ratings are subject to change. |
2 |
|
Representing less than 1% of the Trusts
long-term investments. |
ANNUAL REPORT |
JULY 31, 2014 |
7
|
| |
Trust Summary as of
July 31, 2014 |
BlackRock Florida
Municipal 2020 Term Trust
|
Trust Overview
BlackRock Florida Municipal 2020 Term Trusts (BFO) (the
Trust) investment objectives are to provide current income exempt from regular federal income tax and Florida intangible personal
property tax and to return $15.00 per common share (the initial offering price per share) to holders of common shares on or about December 31, 2020.
The Trust seeks to achieve its investment objectives by investing at least 80% of its assets in municipal bonds exempt from federal income taxes
(except that the interest may be subject to the federal alternative minimum tax) and Florida intangible personal property tax. The Trust invests at
least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust actively manages the maturity of its
bonds to seek to have a dollar weighted average effective maturity approximately equal to the Trusts maturity date. The Trust may invest directly
in such securities or synthetically through the use of derivatives. Effective January 1, 2007, the Florida intangible personal property tax was
repealed.
No
assurance can be given that the Trusts investment objective will be achieved.
Performance
|
|
For the 12-month period ended July 31, 2014, the Trust returned
4.36% based on market price and 4.84% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an
average return of 12.67% based on market price and 12.42% based on NAV. All returns reflect reinvestment of dividends. The Trusts discount to
NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following
discussion relates to performance based on NAV. |
|
|
Tax-exempt rates declined during the period, supporting generally
positive performance for municipal bonds. (Bond prices rise when rates fall.) The municipal yield curve flattened, meaning that longer-dated yields
declined more than shorter-maturity yields. In this environment, the Funds duration exposure (sensitivity to interest rate movements) had a
positive impact on performance. |
|
|
There were no detractors from performance on an absolute basis as
all areas of the Trusts investment universe appreciated during the period. |
|
|
The Trust is scheduled to mature on or about December 31, 2020,
and it therefore holds securities that will mature close to that date. Given that rates declined more for bonds on the long end of the yield curve, the
Trusts shorter maturity profile was a disadvantage in comparison to its Lipper category peers, which typically hold longer-dated
issues. |
|
|
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, 2014 ($15.16)1 |
|
|
|
3.98% |
Tax
Equivalent Yield2 |
|
|
|
7.03% |
Current Monthly Distribution per Common Share3 |
|
|
|
$0.05025 |
Current Annualized Distribution per Common Share3 |
|
|
|
$0.60300 |
Economic Leverage as of July 31, 20144 |
|
|
|
1% |
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 marginal federal tax rate
of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower
tax equivalent yields. |
3
|
| The monthly distribution per Common Share, declared on August 1,
2014, was decreased to $0.0347 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized
distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the
future. |
4
|
| Represents AMPS and TOBs as a percentage of total managed assets,
which is the total assets of the Trust, including any assets attributable to AMPS 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 5. |
8 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
|
BlackRock Florida
Municipal 2020 Term Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/14
|
|
7/31/13
|
|
Change
|
|
High
|
|
Low
|
Market Price |
|
|
|
$ |
15.16 |
|
|
$ |
15.12 |
|
|
|
0.26 |
% |
|
$ |
15.83 |
|
|
$ |
14.88 |
|
Net Asset Value |
|
|
|
$ |
15.42 |
|
|
$ |
15.31 |
|
|
|
0.72 |
% |
|
$ |
15.44 |
|
|
$ |
15.04 |
|
Market
Price and Net Asset Value History For the Past Five Years |
|
|
|
Overview of the Trusts Long-Term Investments
Sector Allocation
|
|
7/31/14
|
7/31/13
|
County/City/Special District/School District |
|
32 |
% |
|
30 |
% |
Transportation |
|
20 |
|
|
17 |
|
Health |
|
16 |
|
|
13 |
|
State |
|
14 |
|
|
12 |
|
Utilities |
|
10 |
|
|
20 |
|
Corporate |
|
4 |
|
|
4 |
|
Education |
|
3 |
|
|
2 |
|
Housing |
|
1 |
|
|
2 |
|
|
|
For Trust compliance purposes, the Trusts
sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group
indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease. |
|
|
Call/Maturity
Schedule3
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
2014 |
|
|
|
|
10 |
% |
2015 |
|
|
|
|
|
|
2016 |
|
|
|
|
|
|
2017 |
|
|
|
|
15 |
|
2018 |
|
|
|
|
11 |
|
3
|
| Scheduled maturity dates and/or bonds that are subject to
potential calls by issuers over the next five years. |
Credit Quality
Allocation1
|
|
|
|
7/31/14
|
|
7/31/13
|
AAA/Aaa |
|
|
|
|
2 |
% |
|
|
2 |
% |
AA/Aa |
|
|
|
|
47 |
|
|
|
49 |
|
A |
|
|
|
|
32 |
|
|
|
31 |
|
BBB/Baa |
|
|
|
|
9 |
|
|
|
8 |
|
N/R2 |
|
|
|
|
10 |
|
|
|
10 |
|
1 |
|
For financial reporting purposes, credit quality
ratings shown above reflect the highest rating assigned by either S&P or Moodys if ratings differ. These rating agencies are independent,
nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below
investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do
not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
2 |
|
The investment advisor evaluates the credit quality
of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of
sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade
quality. As of July 31, 2014 and July 31, 2013, the market value of unrated securities deemed by the investment advisor to be investment grade was
$1,703,400, representing 2%, and $3,035,830, representing 3%, respectively, of the Trusts long-term investments. |
ANNUAL REPORT |
JULY 31, 2014 |
9
|
| |
Trust Summary as of
July 31, 2014 |
BlackRock Municipal
Income Investment Trust
|
Trust Overview
BlackRock Municipal Income Investment Trusts (BBF) (the
Trust) investment objective is to provide current income exempt from regular federal income tax and Florida intangible personal
property tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except
that the interest may be subject to the federal alternative minimum tax). The Trust invests at least 80% of its assets in municipal bonds that are
investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
Due to the repeal of the Florida intangible personal property tax, the Board approved an amended policy in September 2008 allowing the Trust the
flexibility to invest in municipal obligations regardless of geographical location.
No
assurance can be given that the Trusts investment objective will be achieved.
Performance
|
|
For the 12-month period ended July 31, 2014, the Trust returned
15.49% based on market price and 16.06% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged)
category posted an average return of 14.52% based on market price and 14.95% based on NAV. All returns reflect reinvestment of dividends. The
Trusts discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on
NAV. The following discussion relates to performance based on NAV. |
|
|
Tax-exempt rates declined during the period, supporting generally
positive performance for municipal bonds. (Bond prices rise when rates fall.) The municipal yield curve flattened, meaning that longer-dated yields
declined more than shorter-maturity yields. In this environment, the Trusts duration exposure (sensitivity to interest rate movements) had a
positive impact on performance. The Trusts longer-dated holdings in the health care, education and transportation sectors experienced strong
market appreciation, aiding performance. The Trust also benefited from its holdings in the State of California, as the continued improvement in the
States economy was a catalyst for price appreciation during the period. |
|
|
The Trusts modest exposure to Puerto Rico government-related
credits in the earlier part of the period detracted from results, as credit spreads on these bonds widened materially due to investors lack of
confidence and the weak local economy. The Trust sold its exposure to these securities early in the period. |
|
|
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, 2014 ($13.48)1 |
|
|
|
6.44% |
Tax
Equivalent Yield2 |
|
|
|
11.38% |
Current Monthly Distribution per Common Share3 |
|
|
|
$0.072375 |
Current Annualized Distribution per Common Share3 |
|
|
|
$0.868500 |
Economic Leverage as of July 31, 20144 |
|
|
|
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 marginal federal tax rate
of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower
tax equivalent yields. |
3
|
| The distribution rate is not constant and is subject to
change. |
4
|
| Represents VRDP Shares and TOBs as a percentage of total managed
assets, which is the total assets of the Trust, including any assets attributable to VRDP 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 5. |
10 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
|
BlackRock Municipal
Income Investment Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/14
|
|
7/31/13
|
|
Change
|
|
High
|
|
Low
|
Market Price |
|
|
|
$ |
13.48 |
|
|
$ |
12.47 |
|
|
|
8.10 |
% |
|
$ |
14.06 |
|
|
$ |
11.89 |
|
Net Asset Value |
|
|
|
$ |
15.09 |
|
|
$ |
13.89 |
|
|
|
8.64 |
% |
|
$ |
15.19 |
|
|
$ |
13.26 |
|
Market
Price and Net Asset Value History For the Past Five Years |
|
|
|
Overview of the Trusts Long-Term Investments
Sector Allocation
|
|
7/31/14
|
7/31/13
|
County/City/Special District/School District |
|
26 |
% |
|
26 |
% |
Transportation |
|
21 |
|
|
14 |
|
Utilities |
|
16 |
|
|
19 |
|
Health |
|
15 |
|
|
16 |
|
State |
|
11 |
|
|
11 |
|
Education |
|
8 |
|
|
10 |
|
Tobacco |
|
1 |
|
|
2 |
|
Corporate |
|
1 |
|
|
1 |
|
Housing |
|
1 |
|
|
1 |
|
|
|
For Trust compliance purposes, the Trusts
sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group
indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease. |
|
|
Call/Maturity
Schedule4
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
2014 |
|
|
|
|
1 |
% |
2015 |
|
|
|
|
|
|
2016 |
|
|
|
|
2 |
|
2017 |
|
|
|
|
1 |
|
2018 |
|
|
|
|
17 |
|
4
|
| Scheduled maturity dates and/or bonds that are subject to
potential calls by issuers over the next five years. |
Credit Quality
Allocation1
|
|
|
|
7/31/14
|
|
7/31/13
|
AAA/Aaa |
|
|
|
|
10 |
% |
|
|
10 |
% |
AA/Aa |
|
|
|
|
56 |
|
|
|
57 |
|
A |
|
|
|
|
26 |
|
|
|
28 |
|
BBB/Baa |
|
|
|
|
6 |
|
|
|
4 |
|
BB/Ba |
|
|
|
|
1 |
|
|
|
|
|
B |
|
|
|
|
|
2 |
|
|
|
|
N/R |
|
|
|
|
1 |
|
|
|
1 |
3 |
1 |
|
For financial reporting purposes, credit quality
ratings shown above reflect the highest rating assigned by either S&P or Moodys if ratings differ. These rating agencies are independent,
nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below
investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do
not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
2 |
|
Representing less than 1% of the Trusts
long-term investments. |
3 |
|
The investment advisor evaluates the credit quality
of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of
sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade
quality. As of July 31, 2013, the market value of unrated securities deemed by the investment advisor to be investment grade was $240,299, representing
less than 1% of the Trusts long-term investments. |
ANNUAL REPORT |
JULY 31, 2014 |
11
|
| |
Trust Summary as of
July 31, 2014 |
BlackRock Municipal
Target Term Trust
|
Trust Overview
BlackRock Municipal Target Term Trusts (BTT) (the
Trust) investment objectives are to provide current income exempt from regular federal income tax (but which may be subject to the
federal alternative minimum tax in certain circumstances) and to return $25.00 per common share (the initial offering price per share) to holders of
common shares on or about December 31, 2030. The Trust seeks to achieve its investment objectives by investing at least 80% of its assets in municipal
bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests at least 80%
of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust actively manages the maturity of its bonds to
seek to have a dollar weighted average effective maturity approximately equal to the Trusts maturity date. The Trust may invest directly in such
securities or synthetically through the use of derivatives.
No
assurance can be given that the Trusts investment objective will be achieved.
Performance
|
|
For the 12-month period ended July 31, 2014, the Trust returned
12.78% based on market price and 24.50% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged)
category posted an average return of 14.52% based on market price and 14.95% based on NAV. All returns reflect reinvestment of dividends. The
Trusts discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on
NAV. The following discussion relates to performance based on NAV. |
|
|
The Trusts duration exposure (sensitivity to interest rate
movements) contributed positively to performance as interest rates declined during the period. (Bond prices rise when rates fall.) Exposure to bonds
maturing near the Trusts maturity date in 2030 benefited performance given that the yield curve flattened, with rates falling more significantly
in maturities of 20 years and longer. The income generated from coupon payments on the Trusts portfolio of municipal bonds also contributed to
performance. |
|
|
The Trusts modest exposure to Puerto Rico government-related
credits detracted from results. Credit spreads on these bonds widened materially due to investors lack of confidence and the weak local economy.
The Trust sold its exposure to these securities early in the period. |
|
|
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 |
|
|
|
BTT |
Initial Offering Date |
|
|
|
August 30, 2012 |
Termination Date (on or about) |
|
|
|
December 31, 2030 |
Current Distribution Rate on Closing Market Price as of July 31, 2014 ($19.57)1 |
|
|
|
4.91% |
Tax
Equivalent Rate2 |
|
|
|
8.67% |
Current Monthly Distribution per Common Share3 |
|
|
|
$0.093750 |
Current Annualized Distribution per Common Share3 |
|
|
|
$0.96 |
Economic Leverage as of July 31, 20144 |
|
|
|
38% |
1
|
| Current Distribution Rate on closing market price is calculated by
dividing the current annualized distribution per share by the closing market price. The current distribution rate may consist of income, net realized
gains and/or a return of capital. See the financial highlights for the actual sources and character of distributions. Past performance does not
guarantee future results. |
2
|
| Tax equivalent yield assumes the maximum marginal federal tax rate
of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower
tax equivalent yields. |
3
|
| The monthly distribution per Common Share, declared on August 1,
2014, was decreased to $0.08 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized
distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the
future. A portion of the distribution may be deemed a return of capital or net realized gain at fiscal year end. |
4
|
| Represents RVMTP Shares and TOBs as a percentage of total managed
assets, which is the total assets of the Trust, including any assets attributable to RVMTP 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 5. |
12 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
|
BlackRock Municipal
Target Term Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/14
|
|
7/31/13
|
|
Change
|
|
High
|
|
Low
|
Market Price |
|
|
|
$ |
19.57 |
|
|
$ |
18.42 |
|
|
|
6.24 |
% |
|
$ |
20.49 |
|
|
$ |
16.47 |
|
Net Asset Value |
|
|
|
$ |
21.99 |
|
|
$ |
18.75 |
|
|
|
17.28 |
% |
|
$ |
22.15 |
|
|
$ |
17.45 |
|
Market
Price and Net Asset Value History Since Inception |
|
|
|
1
|
| Commencement of operations. |
Overview of the Trusts Long-Term Investments
Sector Allocation
|
|
7/31/14
|
7/31/13
|
Transportation |
|
22 |
% |
|
22 |
% |
Health |
|
17 |
|
|
17 |
|
County/City/Special District/School District |
|
13 |
|
|
12 |
|
Education |
|
12 |
|
|
13 |
|
Corporate |
|
11 |
|
|
9 |
|
Housing |
|
9 |
|
|
9 |
|
Utilities |
|
8 |
|
|
9 |
|
State |
|
6 |
|
|
7 |
|
Tobacco |
|
2 |
|
|
2 |
|
|
|
For Trust compliance purposes, the Trusts
sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group
indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease. |
|
|
Call/Maturity
Schedule4
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
2014 |
|
|
|
|
1 |
% |
2015 |
|
|
|
|
|
|
2016 |
|
|
|
|
1 |
|
2017 |
|
|
|
|
2 |
|
2018 |
|
|
|
|
1 |
|
4
|
| Scheduled maturity dates and/or bonds that are subject to
potential calls by issuers over the next five years. |
Credit Quality
Allocation2
|
|
|
|
7/31/14
|
|
7/31/13
|
AAA/Aaa |
|
|
|
|
4 |
% |
|
|
3 |
% |
AA/Aa |
|
|
|
|
31 |
|
|
|
32 |
|
A |
|
|
|
|
42 |
|
|
|
43 |
|
BBB/Baa |
|
|
|
|
12 |
|
|
|
11 |
|
BB/Ba |
|
|
|
|
3 |
|
|
|
3 |
|
B |
|
|
|
|
2 |
|
|
|
3 |
|
N/R3 |
|
|
|
|
6 |
|
|
|
5 |
|
2 |
|
For financial reporting purposes, credit quality
ratings shown above reflect the highest rating assigned by either S&P or Moodys if ratings differ. These rating agencies are independent,
nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below
investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do
not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
3 |
|
The investment advisor evaluates the credit quality
of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of
sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade
quality. As of July 31, 2014 and July 31, 2013, the market value of unrated securities deemed by the investment advisor to be investment grade was
$483,970, representing less than 1%, and $38,601,602, representing 2%, respectively, of the Trusts long-term investments. |
ANNUAL REPORT |
JULY 31, 2014 |
13
|
| |
Trust Summary as of
July 31, 2014 |
BlackRock New Jersey
Municipal Income Trust
|
Trust Overview
BlackRock New Jersey Municipal Income Trusts (BNJ) (the
Trust) investment objective is to provide current income exempt from regular federal income tax and New Jersey gross income tax. The
Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest
may be subject to the federal alternative minimum tax) and New Jersey gross income taxes. The Trust invests at least 80% of its assets in municipal
bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of
derivatives.
No
assurance can be given that the Trusts investment objective will be achieved.
Performance
|
|
For the 12-month period ended July 31, 2014, the Trust returned
14.60% based on market price and 16.01% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an
average return of 12.38% based on market price and 13.86% based on NAV. All returns reflect reinvestment of dividends. The Trusts discount to
NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following
discussion relates to performance based on NAV. |
|
|
Tax-exempt rates declined during the period, supporting generally
positive performance for municipal bonds. (Bond prices rise when rates fall.) The municipal yield curve flattened, meaning that longer-dated yields
declined more than shorter-maturity yields. In this environment, the Trusts duration exposure (sensitivity to interest rate movements) had a
positive impact on performance. The Trusts longer-dated holdings in the health care, education and transportation sectors experienced strong
market appreciation, aiding performance. |
|
|
The Trusts modest exposure to Puerto Rico government-related
credits in the earlier part of the period detracted from results, as credit spreads on these bonds widened materially due to investors lack of
confidence and the weak local economy. The Trust sold its exposure to these securities early in the period. |
|
|
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, 2014 ($14.68)1 |
|
|
|
6.14% |
Tax
Equivalent Yield2 |
|
|
|
11.92% |
Current Monthly Distribution per Common Share3 |
|
|
|
$0.0751 |
Current Annualized Distribution per Common Share3 |
|
|
|
$0.9012 |
Economic Leverage as of July 31, 20144 |
|
|
|
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 marginal federal and
state tax rate of 48.48%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will
result in lower tax equivalent yields. |
3
|
| The distribution rate is not constant and is subject to
change. |
4
|
| Represents VMTP Shares and TOBs as a percentage of total managed
assets, which is the total assets of the Trust, including any assets attributable to VMTP 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 5. |
14 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
|
BlackRock New Jersey
Municipal Income Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/14
|
|
7/31/13
|
|
Change
|
|
High
|
|
Low
|
Market Price |
|
|
|
$ |
14.68 |
|
|
$ |
13.67 |
|
|
|
7.39 |
% |
|
$ |
15.47 |
|
|
$ |
12.74 |
|
Net Asset Value |
|
|
|
$ |
15.61 |
|
|
$ |
14.36 |
|
|
|
8.70 |
% |
|
$ |
15.69 |
|
|
$ |
13.77 |
|
Market
Price and Net Asset Value History For the Past Five Years |
|
|
|
Overview of the Trusts Long-Term Investments
Sector Allocation
|
|
|
|
7/31/14
|
|
7/31/13
|
Transportation |
|
|
|
|
33 |
% |
|
|
25 |
% |
Education |
|
|
|
|
17 |
|
|
|
12 |
|
State |
|
|
|
|
15 |
|
|
|
26 |
|
County/City/Special District/School District |
|
|
|
|
13 |
|
|
|
13 |
|
Health |
|
|
|
|
8 |
|
|
|
11 |
|
Corporate |
|
|
|
|
8 |
|
|
|
6 |
|
Housing |
|
|
|
|
6 |
|
|
|
7 |
|
|
|
For Trust compliance purposes, the Trusts
sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group
indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease. |
|
|
Call/Maturity
Schedule3
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
2014 |
|
|
|
|
8 |
% |
2015 |
|
|
|
|
|
|
2016 |
|
|
|
|
1 |
|
2017 |
|
|
|
|
3 |
|
2018 |
|
|
|
|
13 |
|
3
|
| Scheduled maturity dates and/or bonds that are subject to
potential calls by issuers over the next five years. |
Credit Quality
Allocation1
|
|
|
|
7/31/14
|
|
7/31/13
|
AAA/Aaa |
|
|
|
|
2 |
% |
|
|
2 |
% |
AA/Aa |
|
|
|
|
40 |
|
|
|
35 |
|
A |
|
|
|
|
35 |
|
|
|
40 |
|
BBB/Baa |
|
|
|
|
9 |
|
|
|
9 |
|
BB/Ba |
|
|
|
|
4 |
|
|
|
5 |
|
B |
|
|
|
|
3 |
|
|
|
3 |
|
N/R2 |
|
|
|
|
7 |
|
|
|
6 |
|
1 |
|
For financial reporting purposes, credit quality
ratings shown above reflect the highest rating assigned by either S&P or Moodys if ratings differ. These rating agencies are independent,
nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below
investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do
not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
2 |
|
The investment advisor evaluates the credit quality
of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of
sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade
quality. As of July 31, 2014 and July 31, 2013, the market value of unrated securities deemed by the investment advisor to be investment grade was
$10,254,522, representing 5%, and $8,401,509, representing 4%, respectively, of the Trusts long-term investments. |
ANNUAL REPORT |
JULY 31, 2014 |
15
|
| |
Trust Summary as of
July 31, 2014 |
BlackRock New York
Municipal Income Trust
|
Trust Overview
BlackRock New York Municipal Income Trusts (BNY) (the
Trust) investment objective is to provide current income exempt from regular federal income tax and New York State and New York City
personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes
(except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. The Trust
invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in
such securities or synthetically through the use of derivatives.
No
assurance can be given that the Trusts investment objective will be achieved.
Performance
|
|
For the 12-month period ended July 31, 2014, the Trust returned
11.51% based on market price and 15.98% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an
average return of 12.03% based on market price and 12.89% based on NAV. All returns reflect reinvestment of dividends. The Trusts discount to
NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following
discussion relates to performance based on NAV. |
|
|
Tax-exempt rates declined during the period, supporting generally
positive performance for municipal bonds. (Bond prices rise when rates fall.) Municipal bonds with longer durations (and greater sensitivity to
interest rate movements) tended to provide the strongest returns. In this environment, the Trusts exposure to lower coupon and zero coupon bonds
which experienced strong price performance due to their relatively long durations for their respective maturities contributed positively
to results. The Trusts exposure to the long end of the yield curve also was a significant contributor to total return, as longer-dated yields
declined more than shorter-maturity yields. This positioning allowed the Trust to maximize its income and also benefit from the flattening of the yield
curve. |
|
|
The Trusts holdings in the health care, corporate and
transportation sectors the better performing areas of the market were particularly beneficial. The Trusts significant exposure to
high-quality (A-rated) issues had a positive impact on results as the markets strong performance during the period was concentrated in this
credit quality tier. Additionally, the Trust benefited from income generated from coupon payments on its portfolio of municipal bond holdings. The use
of leverage allowed the Trust to maximize its income. |
|
|
The Trusts modest exposure to Puerto Rico government-related
credits in the earlier part of the period detracted from results, as credit spreads on these bonds widened materially due to investors lack of
confidence and a weak local economy. The Trust sold its exposure to these securities early in the period. |
|
|
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, 2014 ($13.79)1 |
|
|
|
6.00% |
Tax
Equivalent Yield2 |
|
|
|
12.14% |
Current Monthly Distribution per Common Share3 |
|
|
|
$0.069 |
Current Annualized Distribution per Common Share3 |
|
|
|
$0.828 |
Economic Leverage as of July 31, 20144 |
|
|
|
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 marginal federal and
state tax rate of 50.59%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will
result in lower tax equivalent yields. |
3
|
| The distribution rate is not constant and is subject to
change. |
4
|
| Represents VMTP Shares and TOBs as a percentage of total managed
assets, which is the total assets of the Trust, including any assets attributable to VMTP 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 5. |
16 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
|
BlackRock New York
Municipal Income Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/14
|
|
7/31/13
|
|
Change
|
|
High
|
|
Low
|
Market Price |
|
|
|
$ |
13.79 |
|
|
$ |
13.16 |
|
|
|
4.79 |
% |
|
$ |
14.37 |
|
|
$ |
12.17 |
|
Net Asset Value |
|
|
|
$ |
14.68 |
|
|
$ |
13.47 |
|
|
|
8.98 |
% |
|
$ |
14.74 |
|
|
$ |
12.75 |
|
Market
Price and Net Asset Value History For the Past Five Years |
|
|
|
Overview of the Trusts Long-Term Investments
Sector Allocation
|
|
|
|
7/31/14
|
|
7/31/13
|
County/City/Special District/School District |
|
|
|
|
24 |
% |
|
|
23 |
% |
Education |
|
|
|
|
19 |
|
|
|
16 |
|
Transportation |
|
|
|
|
14 |
|
|
|
14 |
|
Utilities |
|
|
|
|
13 |
|
|
|
11 |
|
Health |
|
|
|
|
10 |
|
|
|
10 |
|
State |
|
|
|
|
9 |
|
|
|
9 |
|
Corporate |
|
|
|
|
9 |
|
|
|
10 |
|
Housing |
|
|
|
|
2 |
|
|
|
7 |
|
|
|
For Trust compliance purposes, the Trusts
sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group
indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease. |
|
|
Call/Maturity
Schedule3
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
2014 |
|
|
|
|
5 |
% |
2015 |
|
|
|
|
5 |
|
2016 |
|
|
|
|
4 |
|
2017 |
|
|
|
|
12 |
|
2018 |
|
|
|
|
3 |
|
3
|
| Scheduled maturity dates and/or bonds that are subject to
potential calls by issuers over the next five years. |
Credit Quality
Allocation1
|
|
|
|
7/31/14
|
|
7/31/13
|
AAA/Aaa |
|
|
|
|
16 |
% |
|
|
13 |
% |
AA/Aa |
|
|
|
|
39 |
|
|
|
34 |
|
A |
|
|
|
|
29 |
|
|
|
35 |
|
BBB/Baa |
|
|
|
|
6 |
|
|
|
8 |
|
BB/Ba |
|
|
|
|
4 |
|
|
|
3 |
|
N/R2 |
|
|
|
|
6 |
|
|
|
7 |
|
1 |
|
For financial reporting purposes, credit quality
ratings shown above reflect the highest rating assigned by either S&P or Moodys if ratings differ. These rating agencies are independent,
nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below
investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do
not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
2 |
|
The investment advisor evaluates the credit quality
of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of
sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade
quality. As of July 31, 2014 and July 31, 2013, the market value of unrated securities deemed by the investment advisor to be investment grade was
$2,704,682, representing 1%, and $2,500,000, representing 1%, respectively, of the Trusts long-term investments. |
ANNUAL REPORT |
JULY 31, 2014 |
17
|
| |
Schedule of Investments July 31, 2014 |
BlackRock California
Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
California 107.3% |
Corporate 0.7% |
|
|
|
|
|
|
|
|
|
|
City of Chula Vista California, Refunding RB, San Diego Gas & Electric: |
|
|
|
|
|
|
|
|
|
|
Series A, 5.88%, 2/15/34 |
|
|
|
$ |
680 |
|
|
$ |
783,659 |
|
Series D, 5.88%, 1/01/34 |
|
|
|
|
2,500 |
|
|
|
2,881,100 |
|
|
|
|
|
|
|
|
|
|
3,664,759 |
|
County/City/Special District/School District 34.5% |
|
|
|
|
|
|
|
|
|
|
Butte-Glenn Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/30 |
|
|
|
|
8,425 |
|
|
|
9,508,876 |
|
Centinela Valley Union High School District, GO, Refunding, Election of 2008, Series B, 5.75%, 8/01/33 |
|
|
|
|
1,250 |
|
|
|
1,478,238 |
|
Cerritos Community College District, GO, Election of 2004, Series C, 5.25%, 8/01/31 |
|
|
|
|
3,000 |
|
|
|
3,437,130 |
|
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project: |
|
|
|
|
|
|
|
|
|
|
6.13%, 5/01/31 |
|
|
|
|
500 |
|
|
|
583,830 |
|
6.50%, 5/01/36 |
|
|
|
|
1,210 |
|
|
|
1,432,059 |
|
6.50%, 5/01/42 |
|
|
|
|
2,225 |
|
|
|
2,628,926 |
|
County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35 |
|
|
|
|
2,000 |
|
|
|
2,328,560 |
|
County of Orange California Water District, COP, Refunding, 5.25%, 8/15/34 |
|
|
|
|
2,000 |
|
|
|
2,293,080 |
|
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A: |
|
|
|
|
|
|
|
|
|
|
6.00%, 3/01/36 |
|
|
|
|
2,880 |
|
|
|
3,459,024 |
|
5.50%, 3/01/41 |
|
|
|
|
5,265 |
|
|
|
5,938,604 |
|
County of Santa Clara California Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36 |
|
|
|
|
20,000 |
|
|
|
22,127,000 |
|
Evergreen Elementary School District, GO, Election of 2006, Series B (AGC), 5.13%, 8/01/33 |
|
|
|
|
2,500 |
|
|
|
2,849,550 |
|
Grossmont Healthcare District, GO, Election of 2006, Series B: |
|
|
|
|
|
|
|
|
|
|
6.00%, 7/15/34 |
|
|
|
|
3,260 |
|
|
|
3,849,636 |
|
6.13%, 7/15/40 |
|
|
|
|
2,000 |
|
|
|
2,348,900 |
|
Long Beach Unified School District California, GO, Refunding, Election of 2008, Series A, 5.75%, 8/01/33 |
|
|
|
|
4,135 |
|
|
|
4,865,034 |
|
Los
Alamitos Unified School District California, GO, School Facilities Improvement District No. 1, 5.50%, 8/01/33 |
|
|
|
|
6,300 |
|
|
|
7,235,550 |
|
Los
Angeles Community College District California, GO, Election of 2003, Series F-1, 5.00%, 8/01/33 |
|
|
|
|
5,000 |
|
|
|
5,615,700 |
|
Los
Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/30 |
|
|
|
|
5,065 |
|
|
|
5,821,762 |
|
Modesto Irrigation District, COP, Capital Improvements, Series A, 5.75%, 10/01/29 |
|
|
|
|
3,015 |
|
|
|
3,475,632 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
California (continued) |
County/City/Special District/School District (concluded) |
Oak
Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33 |
|
|
|
$ |
6,000 |
|
|
$ |
6,951,180 |
|
Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39 |
|
|
|
|
2,000 |
|
|
|
2,204,900 |
|
Pittsburg Unified School District, GO, Election of 2006, Series B (AGM), 5.50%, 8/01/34 |
|
|
|
|
2,000 |
|
|
|
2,264,040 |
|
Sacramento Area Flood Control Agency, Special Assessment Bonds, Consolidated Capital Assessment District, 5.25%, 10/01/32 |
|
|
|
|
4,865 |
|
|
|
5,637,757 |
|
San
Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33 |
|
|
|
|
1,500 |
|
|
|
1,727,790 |
|
San
Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36 |
|
|
|
|
5,500 |
|
|
|
6,274,620 |
|
San
Joaquin Delta Community College District, GO, Election of 2004, Series C, 5.00%, 8/01/39 (b) |
|
|
|
|
2,505 |
|
|
|
2,763,291 |
|
San
Jose California Financing Authority, Refunding LRB, Civic Center Project, Series A, 5.00%, 6/01/32 |
|
|
|
|
3,375 |
|
|
|
3,770,246 |
|
San
Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 8/01/41 |
|
|
|
|
3,060 |
|
|
|
3,463,889 |
|
San
Mateo County Community College District, GO, Election of 2005, Series B, 5.00%, 9/01/31 |
|
|
|
|
8,630 |
|
|
|
9,258,178 |
|
Santa Ana Unified School District, GO, Election of 2008, Series A: |
|
|
|
|
|
|
|
|
|
|
5.50%, 8/01/30 |
|
|
|
|
6,455 |
|
|
|
7,382,003 |
|
5.13%, 8/01/33 |
|
|
|
|
10,000 |
|
|
|
11,250,600 |
|
Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38 |
|
|
|
|
2,250 |
|
|
|
2,617,987 |
|
Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 8/01/33 |
|
|
|
|
4,000 |
|
|
|
4,757,720 |
|
Tustin Unified School District, GO, Election of 2008, Series B, 5.25%, 8/01/31 |
|
|
|
|
3,445 |
|
|
|
3,907,870 |
|
West Contra Costa California Unified School District, GO, Series A: |
|
|
|
|
|
|
|
|
|
|
Election of 2010 (AGM), 5.25%, 8/01/32 |
|
|
|
|
4,925 |
|
|
|
5,627,453 |
|
Election of 2012, 5.50%, 8/01/39 |
|
|
|
|
2,500 |
|
|
|
2,827,500 |
|
|
|
|
|
|
|
|
|
|
173,964,115 |
|
Education 3.3% |
|
|
|
|
|
|
|
|
|
|
California Educational Facilities Authority, Refunding RB, San Francisco University, 6.13%, 10/01/36 |
|
|
|
|
6,280 |
|
|
|
7,470,437 |
|
California Municipal Finance Authority, RB, Emerson College, 5.75%, 1/01/33 |
|
|
|
|
2,500 |
|
|
|
2,840,100 |
|
University of California, RB, Series O, 5.38%, 5/15/34 |
|
|
|
|
490 |
|
|
|
562,392 |
|
University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37 |
|
|
|
|
5,500 |
|
|
|
6,050,055 |
|
|
|
|
|
|
|
|
|
|
16,922,984 |
|
Portfolio Abbreviations
ACA AGC AGM AMBAC AMT ARB
BARB BHAC CAB CIFG |
|
American Capital Access Corp. Assured Guarantee Corp. Assured Guaranty Municipal Corp.
American Municipal Bond Assurance Corp.
Alternative Minimum Tax (subject to) Airport Revenue Bonds Building Aid Revenue
Bonds Berkshire Hathaway Assurance Corp. Capital Appreciation Bonds CDC IXIS
Financial Guaranty |
|
COP EDA EDC ERB FHA GARB
GO HDA HFA IDA |
|
Certificates of Participation Economic Development Authority Economic Development
Corp. Education Revenue Bonds
Federal Housing Administration General Airport Revenue Bonds General Obligation
Bonds Housing Development Authority Housing Finance Agency Industrial Development
Authority |
|
IDB ISD LRB M/F MRB NPFGC
PILOT RB S/F SONYMA |
|
Industrial Development Board Independent School District Lease Revenue
Bonds Multi-Family Mortgage Revenue Bonds
National Public Finance Guarantee Corp. Payment in Lieu of Taxes Revenue Bonds
Single-Family State of New York Mortgage Agency |
See Notes to Financial
Statements.
18 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (continued) |
BlackRock California
Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
California (continued) |
Health 17.5% |
|
|
|
|
|
|
|
|
|
|
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare: |
|
|
|
|
|
|
|
|
|
|
6.38%, 8/01/14 (c) |
|
|
|
$ |
3,095 |
|
|
$ |
3,095,000 |
|
Series A, 6.00%, 8/01/30 |
|
|
|
|
2,300 |
|
|
|
2,778,814 |
|
Series B, 6.25%, 8/01/39 |
|
|
|
|
4,960 |
|
|
|
5,730,734 |
|
California Health Facilities Financing Authority, RB: |
|
|
|
|
|
|
|
|
|
|
Adventist Health System West, Series A, 5.75%, 9/01/39 |
|
|
|
|
6,700 |
|
|
|
7,721,683 |
|
Catholic Healthcare West, Series J, 5.63%, 7/01/32 |
|
|
|
|
9,750 |
|
|
|
9,958,942 |
|
Childrens Hospital, Series A, 5.25%, 11/01/41 |
|
|
|
|
9,165 |
|
|
|
9,903,241 |
|
St. Joseph Health System, Series A, 5.75%, 7/01/39 |
|
|
|
|
325 |
|
|
|
376,188 |
|
Sutter Health, Series A, 5.25%, 11/15/46 |
|
|
|
|
5,195 |
|
|
|
5,502,752 |
|
Sutter Health, Series B, 6.00%, 8/15/42 |
|
|
|
|
6,015 |
|
|
|
7,199,353 |
|
California Health Facilities Financing Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Catholic Healthcare West, Series A, 6.00%, 7/01/29 |
|
|
|
|
1,000 |
|
|
|
1,147,980 |
|
Catholic Healthcare West, Series A, 6.00%, 7/01/34 |
|
|
|
|
4,470 |
|
|
|
5,048,105 |
|
Catholic Healthcare West, Series A, 6.00%, 7/01/39 |
|
|
|
|
5,550 |
|
|
|
6,158,336 |
|
Providence Health and Services, Series B, 5.00%, 10/01/44 (b) |
|
|
|
|
6,000 |
|
|
|
6,644,880 |
|
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series B, 5.25%, 3/01/45 |
|
|
|
|
2,000 |
|
|
|
2,061,180 |
|
California Statewide Communities Development Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Catholic Healthcare West, Series B, 5.50%, 7/01/30 |
|
|
|
|
2,920 |
|
|
|
3,192,465 |
|
Catholic Healthcare West, Series E, 5.50%, 7/01/31 |
|
|
|
|
5,065 |
|
|
|
5,531,588 |
|
Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41 |
|
|
|
|
4,000 |
|
|
|
4,288,640 |
|
Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38 |
|
|
|
|
1,625 |
|
|
|
1,901,721 |
|
|
|
|
|
|
|
|
|
|
88,241,602 |
|
State 12.7% |
|
|
|
|
|
|
|
|
|
|
State of California, GO, Various Purposes: |
|
|
|
|
|
|
|
|
|
|
6.00%, 3/01/33 |
|
|
|
|
2,000 |
|
|
|
2,399,540 |
|
6.50%, 4/01/33 |
|
|
|
|
1,250 |
|
|
|
1,520,563 |
|
6.00%, 4/01/38 |
|
|
|
|
12,670 |
|
|
|
14,910,689 |
|
State of California Public Works Board, RB: |
|
|
|
|
|
|
|
|
|
|
Correctional Facility Improvements, Series A, 5.00%, 9/01/39 |
|
|
|
|
17,055 |
|
|
|
18,800,579 |
|
Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33 |
|
|
|
|
3,335 |
|
|
|
3,813,573 |
|
Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34 |
|
|
|
|
9,000 |
|
|
|
10,711,710 |
|
Various Capital Projects, Series I, 5.50%, 11/01/33 |
|
|
|
|
4,940 |
|
|
|
5,839,327 |
|
Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34 |
|
|
|
|
5,025 |
|
|
|
6,059,547 |
|
|
|
|
|
|
|
|
|
|
64,055,528 |
|
Transportation 10.7% |
|
|
|
|
|
|
|
|
|
|
City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39 |
|
|
|
|
6,750 |
|
|
|
8,001,247 |
|
City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT, 5.25%, 5/01/33 |
|
|
|
|
1,440 |
|
|
|
1,594,109 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
California (continued) |
Transportation (concluded) |
|
|
|
|
|
|
|
|
|
|
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport: |
|
|
|
|
|
|
|
|
|
|
Senior Series A, 5.00%, 5/15/34 |
|
|
|
$ |
6,650 |
|
|
$ |
7,494,218 |
|
Senior Series A, 5.00%, 5/15/40 |
|
|
|
|
3,750 |
|
|
|
4,106,925 |
|
Sub-Series C, 5.25%, 5/15/38 |
|
|
|
|
1,950 |
|
|
|
2,168,166 |
|
City of San Jose California, Refunding ARB, Series A-1, AMT: |
|
|
|
|
|
|
|
|
|
|
5.75%, 3/01/34 |
|
|
|
|
2,870 |
|
|
|
3,214,716 |
|
6.25%, 3/01/34 |
|
|
|
|
2,650 |
|
|
|
3,065,255 |
|
County of Orange California, ARB, Series B, 5.75%, 7/01/34 |
|
|
|
|
8,000 |
|
|
|
8,983,760 |
|
County of Sacramento California, ARB: |
|
|
|
|
|
|
|
|
|
|
PFC/Grant, Sub-Series D, 6.00%, 7/01/35 |
|
|
|
|
3,000 |
|
|
|
3,446,820 |
|
Senior Series B, 5.75%, 7/01/39 |
|
|
|
|
1,850 |
|
|
|
2,110,462 |
|
Senior Series B, AMT (AGM), 5.25%, 7/01/33 |
|
|
|
|
3,015 |
|
|
|
3,198,523 |
|
Los
Angeles Harbor Department, RB, Series B, 5.25%, 8/01/34 |
|
|
|
|
5,580 |
|
|
|
6,384,524 |
|
|
|
|
|
|
|
|
|
|
53,768,725 |
|
Utilities 27.9% |
|
|
|
|
|
|
|
|
|
|
Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36 |
|
|
|
|
7,690 |
|
|
|
8,815,431 |
|
California Infrastructure & Economic Development Bank, RB, California Independent System Operator, Series A, 6.25%, 2/01/15
(c) |
|
|
|
|
4,500 |
|
|
|
4,637,160 |
|
Calleguas-Las Virgenes Public Financing Authority California, RB, Calleguas Municipal Water District Project, Series A (NPFGC), 5.13%, 7/01/16
(c) |
|
|
|
|
4,000 |
|
|
|
4,366,960 |
|
City of Chula Vista California, Refunding RB, San Diego Gas & Electric: |
|
|
|
|
|
|
|
|
|
|
Series B, 5.88%, 2/15/34 |
|
|
|
|
525 |
|
|
|
605,031 |
|
Series D, 5.88%, 1/01/34 |
|
|
|
|
6,555 |
|
|
|
7,554,244 |
|
City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39 |
|
|
|
|
4,000 |
|
|
|
4,442,760 |
|
City of Los Angeles California Wastewater System, Refunding RB, Series A, 5.00%, 6/01/39 |
|
|
|
|
2,000 |
|
|
|
2,205,780 |
|
City of Petaluma California Wastewater, Refunding RB, 6.00%, 5/01/36 |
|
|
|
|
5,625 |
|
|
|
6,592,669 |
|
City of San Francisco California Public Utilities Commission Water Revenue, RB, Series A: |
|
|
|
|
|
|
|
|
|
|
5.00%, 11/01/35 |
|
|
|
|
10,625 |
|
|
|
11,827,325 |
|
5.00%, 11/01/37 |
|
|
|
|
10,000 |
|
|
|
11,084,500 |
|
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33 |
|
|
|
|
4,250 |
|
|
|
4,709,467 |
|
Cucamonga Valley Water District, Refunding RB, Series A (AGM), 5.25%, 9/01/31 |
|
|
|
|
4,270 |
|
|
|
4,983,859 |
|
Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41 |
|
|
|
|
2,425 |
|
|
|
2,934,517 |
|
East Bay California Municipal Utility District Water System Revenue, RB, Series A (NPFGC), 5.00%, 6/01/35 |
|
|
|
|
820 |
|
|
|
845,510 |
|
East Bay California Municipal Utility District Water System Revenue, Refunding RB, Series A, 5.00%, 6/01/36 |
|
|
|
|
6,615 |
|
|
|
7,509,348 |
|
El
Dorado Irrigation District / El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 3/01/39 |
|
|
|
|
10,000 |
|
|
|
11,344,400 |
|
Los
Angeles Department of Water & Power, RB: |
|
|
|
|
|
|
|
|
|
|
Power System, Sub-Series A-1, 5.25%, 7/01/38 |
|
|
|
|
9,000 |
|
|
|
10,098,450 |
|
Series A, 5.38%, 7/01/34 |
|
|
|
|
3,250 |
|
|
|
3,693,723 |
|
Water Utility Improvement, Sub-Series A-2 (AGM), 5.00%, 7/01/35 |
|
|
|
|
2,000 |
|
|
|
2,143,160 |
|
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37 |
|
|
|
|
4,000 |
|
|
|
4,376,440 |
|
Sacramento County Sanitation Districts Financing Authority, Refunding RB, Series A, 5.00%, 12/01/44 |
|
|
|
|
6,000 |
|
|
|
6,748,380 |
|
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
19
|
| |
Schedule of Investments (continued) |
BlackRock California
Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
California (concluded) |
Utilities (concluded) |
|
|
|
|
|
|
|
|
|
|
San
Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/34 |
|
|
|
$ |
11,020 |
|
|
$ |
12,574,812 |
|
State of California Department of Water Resources, Refunding RB, Central Valley Project, Series A-E, 5.00%, 12/01/29 |
|
|
|
|
6,000 |
|
|
|
6,830,880 |
|
|
|
|
|
|
|
|
|
|
140,924,806 |
|
Total Municipal Bonds in California |
|
|
|
|
|
|
|
|
541,542,519 |
|
|
|
|
|
|
|
|
|
|
|
|
Multi-State 1.6% |
Housing 1.6% |
|
|
|
|
|
|
|
|
|
|
Centerline Equity Issuer Trust (d)(e): |
|
|
|
|
|
|
|
|
|
|
Series A-4-1, 5.75%, 5/15/15 |
|
|
|
|
500 |
|
|
|
517,275 |
|
Series A-4-2, 6.00%, 5/15/19 |
|
|
|
|
1,000 |
|
|
|
1,154,110 |
|
Series B-2, 7.20%, 11/15/14 |
|
|
|
|
3,500 |
|
|
|
3,552,780 |
|
Series B-3-1, 6.00%, 5/15/15 |
|
|
|
|
1,500 |
|
|
|
1,552,050 |
|
Series B-3-2, 6.30%, 5/15/19 |
|
|
|
|
1,000 |
|
|
|
1,166,030 |
|
Total Municipal Bonds in Multi-State |
|
|
|
|
|
|
|
|
7,942,245 |
|
Total Municipal Bonds 108.9% |
|
|
|
|
|
|
|
|
549,484,764 |
|
|
Municipal Bonds Transferred to Tender Option Bond Trusts (f) |
California 45.1% |
County/City/Special District/School District 16.2% |
|
|
|
|
|
|
|
|
|
|
Los
Angeles Community College District California, GO, Series A: |
|
|
|
|
|
|
|
|
|
|
Election of 2001 (AGM), 5.00%, 8/01/32 |
|
|
|
|
8,000 |
|
|
|
8,843,280 |
|
Election of 2008, Series C, 5.25%, 8/01/39 (g) |
|
|
|
|
12,900 |
|
|
|
14,809,716 |
|
Los
Angeles Community College District California, GO, Refunding, Election of 2008, Series C, 6.00%, 8/01/33 |
|
|
|
|
20,131 |
|
|
|
24,039,930 |
|
Los
Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 |
|
|
|
|
5,000 |
|
|
|
5,612,650 |
|
San
Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33 |
|
|
|
|
10,484 |
|
|
|
12,076,628 |
|
San
Jose Unified School District Santa Clara County California, GO, Election of 2002, Series D, 5.00%, 8/01/32 |
|
|
|
|
14,625 |
|
|
|
16,383,888 |
|
|
|
|
|
|
|
|
|
|
81,766,092 |
|
Municipal Bonds Transferred to Tender
Option Bond Trusts (f) |
|
|
|
Par (000) |
|
Value |
California (concluded) |
Education 8.5% |
|
|
|
|
|
|
|
|
|
|
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%,
10/01/39 (g) |
|
| |
|
$10,395 |
|
|
$ |
11,726,599 |
|
Grossmont Union High School District, GO, Election of 2004, 5.00%, 8/01/33 |
|
|
|
|
13,095 |
|
|
|
13,994,704 |
|
University of California, RB: |
|
|
|
|
|
|
|
|
|
|
Limited Project, Series D (AGM), 5.00%, 5/15/41 |
|
|
|
|
2,600 |
|
|
|
2,800,018 |
|
Series O, 5.75%, 5/15/34 |
|
|
|
|
12,300 |
|
|
|
14,400,061 |
|
|
|
|
|
|
|
|
|
|
42,921,382 |
|
Utilities 20.4% |
|
|
|
|
|
|
|
|
|
|
County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/37 |
|
|
|
|
14,700 |
|
|
|
15,950,235 |
|
County of Orange California Water District, COP, Refunding, 5.00%, 8/15/39 |
|
|
|
|
10,480 |
|
|
|
11,753,530 |
|
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33 |
|
|
|
|
10,040 |
|
|
|
11,125,424 |
|
Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33 |
|
|
|
|
18,002 |
|
|
|
20,132,388 |
|
Los
Angeles Department of Water & Power, RB, Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37 |
|
|
|
|
15,998 |
|
|
|
17,488,904 |
|
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37 |
|
|
|
|
11,180 |
|
|
|
12,232,150 |
|
San
Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/39 |
|
|
|
|
12,457 |
|
|
|
14,124,669 |
|
|
|
|
|
|
|
|
|
|
102,807,300 |
|
Total Municipal Bonds Transferred
to Tender Option Bond Trusts 45.1% |
|
|
|
|
|
|
|
|
227,494,774 |
|
Total Long-Term Investments (Cost $704,601,238) 154.0% |
|
|
|
|
|
|
|
|
776,979,538 |
|
|
Short-Term Securities |
|
|
|
|
Shares |
|
|
|
|
|
BIF California Municipal Money Fund, 0.00% (a)(h) |
|
|
|
|
540,673 |
|
|
|
540,673 |
|
|
|
|
|
|
Par (000) |
|
|
|
|
|
California School Cash Reserve Program Authority, RB, Series G, 2.00%, 2/27/15 (a) |
|
|
|
$ |
1,665 |
|
|
|
1,679,688 |
|
Total Short-Term Securities (Cost $2,220,361) 0.4% |
|
|
|
|
|
|
|
|
2,220,361 |
|
Total Investments (Cost $706,821,599) 154.4% |
|
|
|
|
|
|
|
|
779,199,899 |
|
Other Assets Less Liabilities 0.7% |
|
|
|
|
|
|
|
|
3,353,460 |
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (21.1%) |
|
|
|
|
|
|
|
|
(106,722,227 |
) |
VMTP Shares, at Liquidation Value (34.0%) |
|
|
|
|
|
|
|
|
(171,300,000 |
) |
Net Assets Applicable to Common Shares 100.0% |
|
|
|
|
|
|
|
$ |
504,531,132 |
|
Notes to Schedule of Investments
(a) |
|
|
|
Represents the current yield as of report date. |
(b) |
|
|
|
When-issued security. Unsettled when-issued transactions were as follows: |
Counterparty |
|
|
|
Value |
|
Unrealized Appreciation/
(Depreciation) |
Merrill Lynch, Pierce, Fenner & Smith Inc. |
|
|
|
$ |
5,659,223 |
|
|
$ |
101,189 |
|
Morgan Stanley & Co. LLC |
|
|
|
|
985,657 |
|
|
|
(9,750 |
) |
RBC Capital Markets, LLC |
|
|
|
|
2,763,291 |
|
|
|
|
|
(c) |
|
|
|
U.S. 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. |
See Notes to Financial
Statements.
20 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (continued) |
BlackRock California
Municipal Income Trust (BFZ)
|
(d) |
|
|
|
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold
in transactions exempt from registration to qualified institutional investors. |
(e) |
|
|
|
Represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by
various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated
maturity. |
(f) |
|
|
|
Represent bonds transferred to a TOB. In exchange for which the Trust received cash and residual interest certificates. These bonds
serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to
TOBs. |
(g) |
|
|
|
All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the
event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the
case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from
October 1, 2016 to August 1, 2018 is $14,008,480. |
(h) |
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2014, for purposes of Section
2(a)(3) of the 1940 Act, were as follows: |
Affiliate |
|
|
|
Shares Held at July 31, 2013 |
|
Net Activity |
|
Shares Held at July 31, 2014 |
|
Income |
BIF California Municipal Money Fund |
|
|
|
1,269,184 |
|
(728,511) |
|
540,673 |
|
|
|
|
|
|
Financial futures contracts outstanding as of July 31, 2014 were as follows: |
Contracts Sold |
|
|
|
Issue |
|
Exchange |
|
Expiration |
|
Notional Value |
|
Unrealized Appreciation |
(319) |
|
|
|
10-Year U.S. Treasury Note |
|
Chicago Board of Trade |
|
September 2014 |
|
$39,750,391 |
|
$76,811 |
|
|
|
|
For Trust compliance purposes, the Trusts sector classifications refer to any one or more of the sector sub-classifications
used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not
apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
|
|
|
|
Fair Value Measurements Various inputs are used in determining the fair value of investments and derivative financial
instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement
purposes as follows: |
|
|
|
|
|
Level 1 unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to
access |
|
|
|
|
|
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 Trusts own assumptions used in determining the fair value of investments and derivative financial instruments) |
|
|
|
|
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair
value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value
hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is
significant to the fair value measurement in its entirety. |
|
|
|
|
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In
accordance with the Trusts policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of
the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the
pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing
in those securities. For information about the Trusts policy regarding valuation of investments and derivative financial instruments, please
refer to Note 2 of the Notes to Financial Statements. |
|
|
|
|
The following tables summarize the Trusts investments and derivative financial instruments categorized in the disclosure
hierarchy as of July 31, 2014: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments1 |
|
|
|
|
|
|
|
$ |
776,979,538 |
|
|
|
|
|
|
$ |
776,979,538 |
|
Short-Term Securities |
|
|
|
$ |
540,673 |
|
|
|
1,679,688 |
|
|
|
|
|
|
|
2,220,361 |
|
Total
|
|
|
|
$ |
540,673 |
|
|
$ |
778,659,226 |
|
|
|
|
|
|
$ |
779,199,899 |
|
|
1 |
See above Schedule of Investments for values in each sector. |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Derivative Financial Instruments2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
|
|
$ |
76,811 |
|
|
|
|
|
|
|
|
|
|
$ |
76,811 |
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.
|
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
21
|
| |
Schedule of Investments (concluded) |
BlackRock California
Municipal Income Trust (BFZ)
|
|
|
|
|
The
Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of July 31,
2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash pledged for financial futures contracts |
|
|
|
$ |
436,000 |
|
|
|
|
|
|
|
|
|
|
$ |
436,000 |
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOB trust certificates |
|
|
|
|
|
|
|
$ |
(106,697,554 |
) |
|
|
|
|
|
|
(106,697,554 |
) |
VMTP Shares |
|
|
|
|
|
|
|
|
(171,300,000 |
) |
|
|
|
|
|
|
(171,300,000 |
) |
Total
|
|
|
|
$ |
436,000 |
|
|
$ |
(277,997,554 |
) |
|
|
|
|
|
$ |
(277,561,554 |
) |
|
|
|
|
There were no transfers between levels during the year ended July 31, 2014. |
See Notes to Financial
Statements.
22 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments July 31, 2014 |
BlackRock Florida
Municipal 2020 Term Trust (BFO) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Florida 98.9% |
Corporate 4.1% |
|
|
|
|
|
|
|
|
|
|
County of Hillsborough Florida IDA, Refunding RB, Tampa Electric Co. Project, Series A, 5.65%, 5/15/18 |
|
|
|
$ |
1,000 |
|
|
$ |
1,151,820 |
|
County of Palm Beach Florida Solid Waste Authority, Refunding RB, 5.00%, 10/01/20 |
|
|
|
|
2,000 |
|
|
|
2,365,500 |
|
|
|
|
|
|
|
|
|
|
3,517,320 |
|
County/City/Special District/School District 31.6% |
|
|
|
|
|
|
|
|
|
|
City of Jacksonville Florida, Refunding RB, Better Jacksonville Sales Tax, 5.00%, 10/01/20 |
|
|
|
|
4,000 |
|
|
|
4,736,120 |
|
County of Broward Florida School Board, COP, Refunding, Series A, 5.00%, 7/01/20 |
|
|
|
|
2,000 |
|
|
|
2,325,960 |
|
County of Broward Florida School Board, COP, Series A (AGM), 5.25%, 7/01/22 |
|
|
|
|
2,500 |
|
|
|
2,841,400 |
|
County of Hillsborough Florida, RB, (AMBAC), 5.00%, 11/01/20 |
|
|
|
|
5,545 |
|
|
|
6,214,337 |
|
County of Miami-Dade Florida School Board, COP, Refunding, Series B (AGC), 5.25%, 5/01/21 |
|
|
|
|
4,000 |
|
|
|
4,538,560 |
|
County of Northern Palm Beach Florida Improvement District, Refunding, Special Assessment Bonds, Water Control & Improvement District No. 43,
Series B (ACA), 4.50%, 8/01/22 |
|
|
|
|
1,000 |
|
|
|
1,008,370 |
|
Florida State Board of Education, GO, Refunding, Capital Outlay, Series B, 5.00%, 6/01/20 |
|
|
|
|
485 |
|
|
|
573,930 |
|
Sterling Hill Community Development District, Refunding, Special Assessment Bonds, Series A, 6.10%, 5/01/23 |
|
|
|
|
3,015 |
|
|
|
2,304,214 |
|
Stevens Plantation Florida Imports Project Dependent Special District, RB, 6.38%, 12/31/49 (a)(b) |
|
|
|
|
2,425 |
|
|
|
1,809,195 |
|
Watergrass Community Development District Florida, Special Assessment Bonds, Series B, 5.13%, 11/01/14 |
|
|
|
|
800 |
|
|
|
771,072 |
|
|
|
|
|
|
|
|
|
|
27,123,158 |
|
Education 2.9% |
|
|
|
|
|
|
|
|
|
|
County of Orange Florida Educational Facilities Authority, RB, Rollins College Project (AMBAC), 5.25%, 12/01/22 |
|
|
|
|
725 |
|
|
|
821,410 |
|
Florida State Board of Governors, Refunding RB, University of Central Florida, Series A, 5.00%, 7/01/18 |
|
|
|
|
500 |
|
|
|
568,980 |
|
Florida State Higher Educational Facilities Financial Authority, Refunding RB, University of Tampa Project, Series A, 5.00%,
4/01/20 |
|
|
|
|
1,000 |
|
|
|
1,123,990 |
|
|
|
|
|
|
|
|
|
|
2,514,380 |
|
Health 15.7% |
|
|
|
|
|
|
|
|
|
|
County of Highlands Florida Health Facilities Authority, Refunding RB, Hospital, Adventist Health, Series I, 5.00%, 11/15/20 |
|
|
|
|
2,155 |
|
|
|
2,517,665 |
|
County of Hillsborough Florida IDA, RB, H. Lee Moffitt Cancer Center Project, Series A, 5.25%, 7/01/22 |
|
|
|
|
1,500 |
|
|
|
1,610,940 |
|
County of Marion Florida Hospital District, Refunding RB, Health System,
Munroe Regional, 5.00%, 10/01/17 (c) |
|
|
|
|
1,500 |
|
|
|
1,703,400 |
|
County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center: |
|
|
|
|
|
|
|
|
|
|
3.00%, 6/01/15 |
|
|
|
|
200 |
|
|
|
203,046 |
|
3.00%, 6/01/16 |
|
|
|
|
140 |
|
|
|
142,925 |
|
3.00%, 6/01/17 |
|
|
|
|
190 |
|
|
|
196,747 |
|
3.25%, 6/01/18 |
|
|
|
|
195 |
|
|
|
203,580 |
|
3.50%, 6/01/19 |
|
|
|
|
200 |
|
|
|
209,326 |
|
County of Palm Beach Florida Health Facilities Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Acts Retirement-Life Communities, Inc., 5.00%, 11/15/22 |
|
|
|
|
4,735 |
|
|
|
5,209,447 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Florida (concluded) |
Health (concluded) |
|
|
|
|
|
|
|
|
|
|
County of Palm Beach Florida Health Facilities Authority, Refunding RB (concluded): |
|
|
|
|
|
|
|
|
|
|
Bethesda Healthcare System Project, Series A (AGM), 5.00%, 7/01/20 |
|
|
|
$ |
1,285 |
|
|
$ |
1,490,150 |
|
|
|
|
|
|
|
|
|
|
13,487,226 |
|
Housing 0.9% |
|
|
|
|
|
|
|
|
|
|
County of Manatee Florida Housing Finance Authority, RB, S/F Housing, Series A, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.90%,
9/01/40 |
|
|
|
|
220 |
|
|
|
224,365 |
|
Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 2, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 4.70%, 7/01/22 |
|
|
|
|
445 |
|
|
|
457,081 |
|
Jacksonville Housing Finance Authority, Refunding RB, Series A-1, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.63%,
10/01/39 |
|
|
|
|
130 |
|
|
|
131,222 |
|
|
|
|
|
|
|
|
|
|
812,668 |
|
State 13.8% |
|
|
|
|
|
|
|
|
|
|
Florida Municipal Loan Council, RB, Series D (AGM): |
|
|
|
|
|
|
|
|
|
|
5.00%, 10/01/19 |
|
|
|
|
1,050 |
|
|
|
1,212,771 |
|
4.00%, 10/01/20 |
|
|
|
|
1,105 |
|
|
|
1,215,390 |
|
4.00%, 10/01/21 |
|
|
|
|
500 |
|
|
|
545,830 |
|
Florida Municipal Loan Council, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
CAB, Series A (NPFGC), 0.00%, 4/01/20 (d) |
|
|
|
|
4,000 |
|
|
|
3,380,840 |
|
Series B-2 (AGM), 4.00%, 10/01/20 |
|
|
|
|
655 |
|
|
|
716,190 |
|
State of Florida Board of Education, GO, Refunding, Capital Outlay, Series B, 5.00%, 6/01/20 |
|
|
|
|
1,000 |
|
|
|
1,189,750 |
|
State of Florida Department of Environmental Protection, Refunding RB, Series A, 5.00%, 7/01/20 |
|
|
|
|
3,000 |
|
|
|
3,536,520 |
|
|
|
|
|
|
|
|
|
|
11,797,291 |
|
Transportation 20.5% |
|
|
|
|
|
|
|
|
|
|
County of Broward Florida, Refunding ARB, Series P-1, AMT, 5.00%, 10/01/20 |
|
|
|
|
2,500 |
|
|
|
2,925,475 |
|
County of Broward Florida Fuel System, RB, Lauderdale Fuel Facilities, Series A (AGM), AMT, 5.00%, 4/01/20 |
|
|
|
|
160 |
|
|
|
180,219 |
|
County of Broward Florida Port Facilities, Refunding RB, Series B, AMT, 5.00%, 9/01/20 |
|
|
|
|
2,500 |
|
|
|
2,897,950 |
|
County of Lee Florida Transportation Facilities, Refunding RB, Series B (AMBAC): |
|
|
|
|
|
|
|
|
|
|
5.00%, 10/01/20 |
|
|
|
|
2,250 |
|
|
|
2,265,638 |
|
5.00%, 10/01/22 |
|
|
|
|
3,000 |
|
|
|
3,019,800 |
|
County of Miami-Dade Florida, Refunding RB, Series A, AMT, 5.00%, 10/01/20 |
|
|
|
|
1,375 |
|
|
|
1,604,240 |
|
County of Miami-Dade Florida Expressway Authority, Refunding RB, Toll System, Series A, 5.00%, 7/01/20 |
|
|
|
|
1,500 |
|
|
|
1,763,190 |
|
County of Miami-Dade Florida Transit System Sales Surtax, Refunding RB, 5.00%, 7/01/20 |
|
|
|
|
550 |
|
|
|
647,686 |
|
Greater Orlando Aviation Authority, Refunding RB, Series C, 5.00%, 10/01/20 |
|
|
|
|
1,130 |
|
|
|
1,335,061 |
|
Jacksonville Florida Port Authority, Refunding RB, AMT, 4.00%, 11/01/20 |
|
|
|
|
865 |
|
|
|
922,626 |
|
|
|
|
|
|
|
|
|
|
17,561,885 |
|
Utilities 9.4% |
|
|
|
|
|
|
|
|
|
|
City of North Miami Florida Beach Water Revenue, RB, 5.00%, 8/01/20 |
|
|
|
|
1,200 |
|
|
|
1,392,408 |
|
County of Miami-Dade Florida Water & Sewer System, Refunding RB, Series B (AGM), 5.25%, 10/01/19 |
|
|
|
|
4,000 |
|
|
|
4,731,960 |
|
Florida Governmental Utility Authority, RB, Golden Gate Utility System (AGM), 5.00%, 7/01/19 |
|
|
|
|
510 |
|
|
|
581,813 |
|
Florida Governmental Utility Authority, Refunding RB, Lehigh Utility (AGM), 5.00%, 10/01/20 |
|
|
|
|
635 |
|
|
|
731,151 |
|
Town of Davie Florida, Refunding RB, Nova Southeastern University Project, Series B, 5.00%, 4/01/20 |
|
|
|
|
530 |
|
|
|
598,471 |
|
|
|
|
|
|
|
|
|
|
8,035,803 |
|
Total Municipal Bonds in Florida |
|
|
|
|
|
|
|
|
84,849,731 |
|
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
23
|
| |
Schedule of Investments (continued) |
BlackRock Florida
Municipal 2020 Term Trust (BFO) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Guam 0.6% |
Utilities 0.6% |
|
|
|
|
|
|
|
|
|
|
Guam Government Waterworks Authority, RB, 5.25%, 7/01/20 |
|
|
|
$ |
100 |
|
|
$ |
114,475 |
|
Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/20 |
|
|
|
|
310 |
|
|
|
359,740 |
|
Total Municipal Bonds in Guam |
|
|
|
|
|
|
|
|
474,215 |
|
Total Municipal Bonds 99.5% |
|
|
|
|
|
|
|
|
85,323,946 |
|
|
Municipal Bonds Transferred to Tender Option Bond Trusts (e) |
Florida 0.3% |
Housing 0.3% |
|
|
|
|
|
|
|
|
|
|
County of Lee Florida Housing Finance Authority, RB, S/F Housing, Multi-County Program, Series A-2, AMT
(Ginnie Mae), 6.00%, 9/01/40 |
|
|
|
|
285 |
|
|
|
294,758 |
|
Total Long-Term Investments (Cost $81,817,798) 99.8% |
|
|
|
|
|
|
|
|
85,618,704 |
|
Short-Term
Securities |
|
|
|
Shares |
|
Value |
FFI Institutional Tax-Exempt Fund, 0.03% (f)(g) |
|
|
|
|
123,907 |
|
|
$ |
123,907 |
|
Total Short-Term Securities (Cost $123,907) 0.2% |
|
|
|
|
|
|
|
|
123,907 |
|
Total Investments (Cost $81,941,705) 100.0% |
|
|
|
|
|
|
|
|
85,742,611 |
|
Other Assets Less Liabilities 0.9% |
|
|
|
|
|
|
|
|
820,927 |
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (0.2%) |
|
|
|
|
|
|
|
|
(190,095 |
) |
AMPS, at Redemption Value (0.7%) |
|
|
|
|
|
|
|
|
(625,000 |
) |
Net Assets Applicable to Common Shares 100.0% |
|
|
|
|
|
|
|
$ |
85,748,443 |
|
Notes to Schedule of Investments
(a) |
|
|
|
Non-income producing security. |
(b) |
|
|
|
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments. |
(c) |
|
|
|
U.S.
government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated,
typically at a premium to par. |
(d) |
|
|
|
Zero-coupon bond. |
(e) |
|
|
|
Represent bonds transferred to a TOB. In exchange for which the Trust received cash and residual interest certificates. These bonds serve as
collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to
TOBs. |
(f) |
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2014, for purposes of Section 2(a)(3) of the 1940
Act, were as follows: |
Affiliate |
|
|
|
Shares Held at July 31,
2013 |
|
Net Activity |
|
Shares Held at July 31,
2014 |
|
Income |
FFI Institutional Tax-Exempt Fund |
|
|
|
2,293,772 |
|
(2,169,865) |
|
123,907 |
|
$857 |
(g) |
|
|
|
Represents the current yield as of report date. |
|
|
|
|
For
Trust compliance purposes, the Trusts sector classifications refer to any one or more of the sector sub-classifications used by one or more
widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of
this report, which may combine such sector sub-classifications for reporting ease. |
|
|
|
|
Fair Value Measurements Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized
into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
|
|
|
|
Level 1 unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to
access |
|
|
|
|
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 Trusts own assumptions used in determining the fair value of investments) |
|
|
|
|
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair
value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value
hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is
significant to the fair value measurement in its entirety. |
See Notes to Financial
Statements.
24 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (concluded) |
BlackRock Florida
Municipal 2020 Term Trust (BFO)
|
|
|
|
|
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In
accordance with the Trusts policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of
the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment
and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trusts policy
regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements. |
|
|
|
|
The following table summarizes the Trusts investments categorized in the disclosure hierarchy as of July 31,
2014: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments1 |
|
|
|
|
|
|
|
$ |
85,618,704 |
|
|
|
|
|
|
$ |
85,618,704 |
|
Short-Term Securities |
|
|
|
$ |
123,907 |
|
|
|
|
|
|
|
|
|
|
|
123,907 |
|
Total
|
|
|
|
$ |
123,907 |
|
|
$ |
85,618,704 |
|
|
|
|
|
|
$ |
85,742,611 |
|
|
1 |
See above Schedule of Investments for values in each sector. |
|
|
|
|
The
Trust may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of July 31, 2014, TOB trust
certificates of $190,000 is categorized as Level 2 within the disclosure hierarchy. |
|
|
|
|
There were no transfers between levels during the year ended July 31, 2014. |
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
25
|
| |
Schedule of Investments July 31, 2014 |
BlackRock Municipal
Income Investment Trust (BBF) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Alabama 0.3% |
|
|
|
|
|
|
|
|
|
|
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%,
12/01/35 |
|
|
|
$ |
275 |
|
|
$ |
300,548 |
|
Alaska 0.2% |
|
|
|
|
|
|
|
|
|
|
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%,
6/01/46 |
|
|
|
|
330 |
|
|
|
244,880 |
|
California 15.0% |
|
|
|
|
|
|
|
|
|
|
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 |
|
|
|
|
1,315 |
|
|
|
1,483,452 |
|
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39 |
|
|
|
|
890 |
|
|
|
987,553 |
|
Kern Community College District, GO, Safety, Repair & Improvement, Election of 2002, Series C, 5.50%, 11/01/33 |
|
|
|
|
775 |
|
|
|
914,663 |
|
Los
Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38 |
|
|
|
|
1,750 |
|
|
|
1,963,587 |
|
San
Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36 |
|
|
|
|
1,600 |
|
|
|
1,825,344 |
|
State of California, GO, Various Purposes, 6.00%, 3/01/33 |
|
|
|
|
1,275 |
|
|
|
1,529,707 |
|
State of California Public Works Board, RB: |
|
|
|
|
|
|
|
|
|
|
Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33 |
|
|
|
|
400 |
|
|
|
457,400 |
|
Various Capital Projects, Series I, 5.50%, 11/01/31 |
|
|
|
|
1,600 |
|
|
|
1,889,888 |
|
Various Capital Projects, Series I, 5.50%, 11/01/33 |
|
|
|
|
1,500 |
|
|
|
1,773,075 |
|
Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40 |
|
|
|
|
300 |
|
|
|
349,431 |
|
University of California, Refunding RB, Medical Center Regents, Series J, 5.25%, 5/15/38 |
|
|
|
|
1,780 |
|
|
|
2,016,704 |
|
|
|
|
|
|
|
|
|
|
15,190,804 |
|
Colorado 2.3% |
|
|
|
|
|
|
|
|
|
|
City & County of Denver Colorado Airport System, ARB, Sub-System, Series B, 5.25%, 11/15/32 |
|
|
|
|
1,000 |
|
|
|
1,118,350 |
|
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34 |
|
|
|
|
1,095 |
|
|
|
1,247,172 |
|
|
|
|
|
|
|
|
|
|
2,365,522 |
|
Florida 6.0% |
|
|
|
|
|
|
|
|
|
|
City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33 |
|
|
|
|
265 |
|
|
|
297,547 |
|
County of Miami-Dade Florida, RB, Seaport, Series A, 6.00%, 10/01/38 |
|
|
|
|
3,800 |
|
|
|
4,356,206 |
|
Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/32 |
|
|
|
|
570 |
|
|
|
639,221 |
|
Watergrass Community Development District Florida, Special Assessment Bonds, Series B, 5.13%, 11/01/14 |
|
|
|
|
800 |
|
|
|
771,072 |
|
|
|
|
|
|
|
|
|
|
6,064,046 |
|
Georgia 1.8% |
|
|
|
|
|
|
|
|
|
|
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%,
1/01/23 |
|
|
|
|
1,565 |
|
|
|
1,845,902 |
|
Illinois 22.8% |
|
|
|
|
|
|
|
|
|
|
City of Chicago Illinois, GARB, OHare International Airport, 3rd Lien, Series C, 6.50%, 1/01/41 |
|
|
|
|
2,955 |
|
|
|
3,535,362 |
|
City of Chicago Illinois, Refunding RB, Series A: |
|
|
|
|
|
|
|
|
|
|
Sales Tax, 5.25%, 1/01/38 |
|
|
|
|
500 |
|
|
|
535,445 |
|
Waterworks, 2nd Lien (AMBAC), 5.00%, 11/01/36 |
|
|
|
|
1,000 |
|
|
|
1,031,250 |
|
City of Chicago Illinois Transit Authority, RB: |
|
|
|
|
|
|
|
|
|
|
5.25%, 12/01/31 |
|
|
|
|
1,060 |
|
|
|
1,165,343 |
|
Sales Tax Receipts, 5.25%, 12/01/36 |
|
|
|
|
1,000 |
|
|
|
1,087,990 |
|
Sales Tax Receipts, 5.25%, 12/01/40 |
|
|
|
|
1,000 |
|
|
|
1,083,340 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Illinois (concluded) |
|
|
|
|
|
|
|
|
|
|
City of Chicago Illinois Transit Authority, RB (concluded): |
|
|
|
|
|
|
|
|
|
|
Sales Tax Receipts, 5.00%, 12/01/44 |
|
|
|
$ |
600 |
|
|
$ |
641,430 |
|
County of Cook Illinois Community College District No. 508, GO, City College of Chicago: |
|
|
|
|
|
|
|
|
|
|
5.50%, 12/01/38 |
|
|
|
|
1,000 |
|
|
|
1,117,480 |
|
5.25%, 12/01/43 |
|
|
|
|
3,500 |
|
|
|
3,781,155 |
|
Illinois Finance Authority, RB: |
|
|
|
|
|
|
|
|
|
|
Carle Foundation, Series A, 6.00%, 8/15/41 |
|
|
|
|
1,000 |
|
|
|
1,134,080 |
|
Rush University Medical Center, Series B, 7.25%, 11/01/30 |
|
|
|
|
1,600 |
|
|
|
1,909,536 |
|
Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39 |
|
|
|
|
1,900 |
|
|
|
2,193,512 |
|
Railsplitter Tobacco Settlement Authority, RB: |
|
|
|
|
|
|
|
|
|
|
5.50%, 6/01/23 |
|
|
|
|
690 |
|
|
|
802,677 |
|
6.00%, 6/01/28 |
|
|
|
|
195 |
|
|
|
226,964 |
|
State of Illinois, GO: |
|
|
|
|
|
|
|
|
|
|
5.25%, 2/01/31 |
|
|
|
|
475 |
|
|
|
500,042 |
|
5.25%, 2/01/32 |
|
|
|
|
1,000 |
|
|
|
1,047,220 |
|
5.50%, 7/01/33 |
|
|
|
|
1,000 |
|
|
|
1,068,200 |
|
5.50%, 7/01/38 |
|
|
|
|
210 |
|
|
|
222,428 |
|
|
|
|
|
|
|
|
|
|
23,083,454 |
|
Indiana 2.5% |
|
|
|
|
|
|
|
|
|
|
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39 |
|
|
|
|
2,210 |
|
|
|
2,496,924 |
|
Kansas 1.8% |
|
|
|
|
|
|
|
|
|
|
Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series
C, 5.50%, 11/15/29 |
|
|
|
|
1,600 |
|
|
|
1,802,544 |
|
Kentucky 0.6% |
|
|
|
|
|
|
|
|
|
|
County of Louisville & Jefferson Kentucky Metropolitan Government Parking Authority, RB, Series A,
5.75%, 12/01/34 |
|
|
|
|
500 |
|
|
|
591,055 |
|
Louisiana 1.5% |
|
|
|
|
|
|
|
|
|
|
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%,
11/01/35 |
|
|
|
|
715 |
|
|
|
820,806 |
|
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29 |
|
|
|
|
600 |
|
|
|
656,328 |
|
|
|
|
|
|
|
|
|
|
1,477,134 |
|
Maine 1.5% |
|
|
|
|
|
|
|
|
|
|
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%,
7/01/32 |
|
|
|
|
1,270 |
|
|
|
1,466,494 |
|
Massachusetts 1.1% |
|
|
|
|
|
|
|
|
|
|
Massachusetts Health & Educational Facilities Authority, RB, Tufts University, Series O, 5.38%,
8/15/38 |
|
|
|
|
1,000 |
|
|
|
1,132,780 |
|
Michigan 3.5% |
|
|
|
|
|
|
|
|
|
|
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41 |
|
|
|
|
915 |
|
|
|
1,062,480 |
|
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38 |
|
|
|
|
1,000 |
|
|
|
1,147,790 |
|
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a) |
|
|
|
|
995 |
|
|
|
1,283,341 |
|
|
|
|
|
|
|
|
|
|
3,493,611 |
|
Mississippi 2.4% |
|
|
|
|
|
|
|
|
|
|
Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40 |
|
|
|
|
1,000 |
|
|
|
1,300,080 |
|
Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%,
8/01/38 |
|
|
|
|
1,000 |
|
|
|
1,133,280 |
|
|
|
|
|
|
|
|
|
|
2,433,360 |
|
Nevada 5.0% |
|
|
|
|
|
|
|
|
|
|
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34 |
|
|
|
|
1,600 |
|
|
|
1,858,192 |
|
See Notes to Financial
Statements.
26 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (continued) |
BlackRock Municipal
Income Investment Trust (BBF) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Nevada (concluded) |
|
|
|
|
|
|
|
|
|
|
County of Clark Nevada, GO, Limited Tax, 5.00%, 6/01/38 |
|
|
|
$ |
1,000 |
|
|
$ |
1,081,780 |
|
County of Clark Nevada Airport System, ARB, Series B, 5.75%, 7/01/42 |
|
|
|
|
1,825 |
|
|
|
2,114,883 |
|
|
|
|
|
|
|
|
|
|
5,054,855 |
|
New Jersey 4.3% |
|
|
|
|
|
|
|
|
|
|
New
Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 |
|
|
|
|
1,140 |
|
|
|
1,216,049 |
|
New
Jersey Transportation Trust Fund Authority, RB, Transportation System: |
|
|
|
|
|
|
|
|
|
|
Series A, 5.88%, 12/15/38 |
|
|
|
|
1,295 |
|
|
|
1,504,971 |
|
Series AA, 5.50%, 6/15/39 |
|
|
|
|
1,485 |
|
|
|
1,641,742 |
|
|
|
|
|
|
|
|
|
|
4,362,762 |
|
New York 5.8% |
|
|
|
|
|
|
|
|
|
|
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012, Series A, 5.75%, 2/15/47 |
|
|
|
|
1,000 |
|
|
|
1,137,630 |
|
New
York Liberty Development Corp., Refunding RB, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49 |
|
|
|
|
980 |
|
|
|
1,078,931 |
|
State of New York Dormitory Authority, ERB, Series B, 5.25%, 3/15/38 |
|
|
|
|
3,250 |
|
|
|
3,679,618 |
|
|
|
|
|
|
|
|
|
|
5,896,179 |
|
Ohio 3.5% |
|
|
|
|
|
|
|
|
|
|
County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38 |
|
|
|
|
1,565 |
|
|
|
1,683,502 |
|
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1: |
|
|
|
|
|
|
|
|
|
|
5.25%, 2/15/30 |
|
|
|
|
790 |
|
|
|
894,391 |
|
5.25%, 2/15/31 |
|
|
|
|
885 |
|
|
|
996,359 |
|
|
|
|
|
|
|
|
|
|
3,574,252 |
|
Pennsylvania 5.0% |
|
|
|
|
|
|
|
|
|
|
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39 |
|
|
|
|
500 |
|
|
|
573,165 |
|
Pennsylvania Turnpike Commission, RB, Sub-Series A: |
|
|
|
|
|
|
|
|
|
|
5.63%, 12/01/31 |
|
|
|
|
1,250 |
|
|
|
1,392,150 |
|
6.00%, 12/01/41 |
|
|
|
|
1,500 |
|
|
|
1,634,625 |
|
State of Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44 |
|
|
|
|
360 |
|
|
|
394,358 |
|
Township of Bristol Pennsylvania School District, GO, 5.25%, 6/01/37 |
|
|
|
|
1,000 |
|
|
|
1,107,100 |
|
|
|
|
|
|
|
|
|
|
5,101,398 |
|
South Carolina 1.4% |
|
|
|
|
|
|
|
|
|
|
County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38 |
|
|
|
|
1,190 |
|
|
|
1,368,857 |
|
Texas 12.5% |
|
|
|
|
|
|
|
|
|
|
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.00%, 1/01/41 |
|
|
|
|
1,670 |
|
|
|
1,860,814 |
|
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37 |
|
|
|
|
745 |
|
|
|
846,834 |
|
Conroe Texas ISD, GO, School Building, Series A, 5.75%, 2/15/35 |
|
|
|
|
890 |
|
|
|
1,017,697 |
|
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45 |
|
|
|
|
1,905 |
|
|
|
2,278,913 |
|
Lower Colorado River Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
5.50%, 5/15/19 (a) |
|
|
|
|
90 |
|
|
|
107,231 |
|
5.50%, 5/15/33 |
|
|
|
|
1,910 |
|
|
|
2,097,295 |
|
North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 9/01/41 |
|
|
|
|
1,000 |
|
|
|
1,137,920 |
|
North Texas Tollway Authority, Refunding RB, 1st Tier System, Series K-1 (AGC), 5.75%, 1/01/38 |
|
|
|
|
1,000 |
|
|
|
1,139,120 |
|
Red
River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38 |
|
|
|
|
340 |
|
|
|
385,567 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Texas (concluded) |
|
|
|
|
|
|
|
|
|
|
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project,
6.88%, 12/31/39 |
|
|
|
$ |
1,505 |
|
|
$ |
1,766,735 |
|
|
|
|
|
|
|
|
|
|
12,638,126 |
|
Virginia 1.5% |
|
|
|
|
|
|
|
|
|
|
City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43 |
|
|
|
|
280 |
|
|
|
308,372 |
|
Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18 (a) |
|
|
|
|
1,000 |
|
|
|
1,233,120 |
|
|
|
|
|
|
|
|
|
|
1,541,492 |
|
Wisconsin 1.8% |
|
|
|
|
|
|
|
|
|
|
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health,
Inc., Series C, 5.25%, 4/01/39 |
|
|
|
|
1,675 |
|
|
|
1,785,986 |
|
Total Municipal Bonds 104.1% |
|
|
|
|
|
|
|
|
105,312,965 |
|
|
Municipal Bonds Transferred to Tender Option Bond Trusts (b) |
California 19.4% |
|
|
|
|
|
|
|
|
|
|
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (c) |
|
|
|
|
1,995 |
|
|
|
2,250,560 |
|
Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40 |
|
|
|
|
2,400 |
|
|
|
2,596,008 |
|
Los
Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (c) |
|
|
|
|
2,630 |
|
|
|
3,019,345 |
|
Los
Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33 |
|
|
|
|
3,898 |
|
|
|
4,655,200 |
|
Los
Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 |
|
|
|
|
400 |
|
|
|
449,012 |
|
San
Diego Public Facilities Financing Authority Water, RB, Series B, 5.50%, 8/01/39 |
|
|
|
|
4,214 |
|
|
|
4,894,642 |
|
University of California, RB, Series O, 5.75%, 5/15/34 |
|
|
|
|
1,500 |
|
|
|
1,756,105 |
|
|
|
|
|
|
|
|
|
|
19,620,872 |
|
District of Columbia 3.6% |
|
|
|
|
|
|
|
|
|
|
District of Columbia, RB, Series A, 5.50%, 12/01/30 (c) |
|
|
|
|
1,395 |
|
|
|
1,639,632 |
|
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 5.50%, 10/01/39 |
|
|
|
|
1,799 |
|
|
|
2,027,813 |
|
|
|
|
|
|
|
|
|
|
3,667,445 |
|
Illinois 3.2% |
|
|
|
|
|
|
|
|
|
|
State of Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/18
(a) |
|
|
|
|
2,800 |
|
|
|
3,219,860 |
|
Nevada 5.2% |
|
|
|
|
|
|
|
|
|
|
County of Clark Nevada Water Reclamation District, GO: |
|
|
|
|
|
|
|
|
|
|
Limited Tax, 6.00%, 7/01/38 |
|
|
|
|
2,500 |
|
|
|
2,902,050 |
|
Series B, 5.50%, 7/01/29 |
|
|
|
|
1,994 |
|
|
|
2,337,151 |
|
|
|
|
|
|
|
|
|
|
5,239,201 |
|
New Hampshire 1.2% |
|
|
|
|
|
|
|
|
|
|
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39
(c) |
|
|
|
|
1,094 |
|
|
|
1,243,496 |
|
New Jersey 3.9% |
|
|
|
|
|
|
|
|
|
|
New
Jersey Transportation Trust Fund Authority, RB, Transportation System: |
|
|
|
|
|
|
|
|
|
|
Series A (AMBAC), 5.00%, 12/15/32 |
|
|
|
|
2,000 |
|
|
|
2,201,220 |
|
Series B, 5.25%, 6/15/36 (c) |
|
|
|
|
1,640 |
|
|
|
1,783,977 |
|
|
|
|
|
|
|
|
|
|
3,985,197 |
|
New York 13.2% |
|
|
|
|
|
|
|
|
|
|
City of New York New York Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40 |
|
|
|
|
1,410 |
|
|
|
1,613,109 |
|
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
27
|
| |
Schedule of Investments (continued) |
BlackRock Municipal
Income Investment Trust (BBF) (Percentages shown are based on Net Assets) |
Municipal Bonds Transferred to Tender Option Bond Trusts (b) |
|
|
|
Par (000) |
|
Value |
New York (concluded) |
|
|
|
|
|
|
|
|
|
|
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution: |
|
|
|
|
|
|
|
|
|
|
Series FF, 5.00%, 6/15/45 |
|
|
|
$ |
1,500 |
|
|
$ |
1,632,610 |
|
Series FF-2, 5.50%, 6/15/40 |
|
|
|
|
1,995 |
|
|
|
2,281,907 |
|
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39 |
|
|
|
|
1,500 |
|
|
|
1,678,946 |
|
New
York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 |
|
|
|
|
2,205 |
|
|
|
2,429,645 |
|
New
York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (c) |
|
|
|
|
1,300 |
|
|
|
1,457,352 |
|
New
York State Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 3/15/38 |
|
|
|
|
2,000 |
|
|
|
2,264,380 |
|
|
|
|
|
|
|
|
|
|
13,357,949 |
|
Texas 5.4% |
|
|
|
|
|
|
|
|
|
|
City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 2/01/31 (c) |
|
|
|
|
2,025 |
|
|
|
2,296,065 |
|
County of Harris Texas Cultural Education Facilities Finance Corp., RB, Texas Childrens Hospital Project, 5.50%, 10/01/39 |
|
|
|
|
2,750 |
|
|
|
3,151,748 |
|
|
|
|
|
|
|
|
|
|
5,447,813 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Virginia 1.0% |
|
|
|
|
|
|
|
|
|
|
County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System, Series A, 5.50%,
5/15/35 |
|
|
|
$ |
899 |
|
|
$ |
998,956 |
|
Total Municipal Bonds Transferred to Tender Option Bond Trusts 56.1% |
|
|
|
|
|
|
|
|
56,780,789 |
|
Total Long-Term Investments (Cost $145,583,866) 160.2% |
|
|
|
|
|
|
|
|
162,093,754 |
|
|
Short-Term Securities |
|
|
|
|
Shares |
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.03% (d)(e) |
|
|
|
|
1,298,709 |
|
|
|
1,298,709 |
|
Total Short-Term Securities (Cost $1,298,709) 1.3% |
|
|
|
|
|
|
|
|
1,298,709 |
|
Total Investments (Cost $146,882,575) 161.5% |
|
|
|
|
|
|
|
|
163,392,463 |
|
Other Assets Less Liabilities 1.6% |
|
|
|
|
|
|
|
|
1,658,663 |
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (29.3%) |
|
|
|
|
|
|
|
|
(29,688,361 |
) |
VRDP Shares, at Liquidation Value (33.8%) |
|
|
|
|
|
|
|
|
(34,200,000 |
) |
Net Assets Applicable to Common Shares 100.0% |
|
|
|
|
|
|
|
$ |
101,162,765 |
|
Notes to Schedule of Investments
(a) |
|
|
|
U.S.
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) |
|
|
|
Represent bonds transferred to a TOB. In exchange for which the Trust received cash and residual interest certificates. These bonds serve as
collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to
TOBs. |
(c) |
|
|
|
All
or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a
shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a
shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016
to November 15, 2019 is $7,865,394. |
(d) |
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2014, for purposes of Section 2(a)(3) of the 1940
Act, were as follows: |
Affiliate |
|
|
|
Shares Held at July 31,
2013 |
|
Net Activity |
|
Shares Held at July 31,
2014 |
|
Income |
FFI Institutional Tax-Exempt Fund |
|
|
|
4,710,703 |
|
(3,411,994) |
|
1,298,709 |
|
$626 |
(e) |
|
|
|
Represents the current yield as of report date. |
|
|
|
|
Financial futures contracts outstanding as of July 31, 2014 were as follows: |
Contracts Sold |
|
|
|
Issue |
|
Exchange |
|
Expiration |
|
Notional Value |
|
Unrealized Appreciation |
(64) |
|
|
|
10-Year U.S. Treasury Note |
|
Chicago Board of Trade |
|
September 2014 |
|
$7,975,000 |
|
$27,410 |
|
|
|
|
Fair Value Measurements Various inputs are used in determining the fair value of investments and derivative financial
instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement
purposes as follows: |
|
|
|
|
Level 1 unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to
access |
|
|
|
|
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 Trusts own assumptions used in determining the fair value of investments and derivative financial instruments) |
|
|
|
|
The
hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for
instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases,
for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value
measurement in its entirety. |
|
|
|
|
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the
Trusts policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the
reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of
the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For
information about the Trusts policy regarding valuation of investments and derivative financial instruments, please refer to Note 2 of the Notes
to Financial Statements. |
See Notes to Financial
Statements.
28 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (concluded) |
BlackRock Municipal
Income Investment Trust (BBF)
|
|
|
|
|
The
following tables summarize the Trusts investments and derivative financial instruments categorized in the disclosure hierarchy as of July 31,
2014: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments1 |
|
|
|
|
|
|
|
$ |
162,093,754 |
|
|
|
|
|
|
$ |
162,093,754 |
|
Short-Term Securities |
|
|
|
$ |
1,298,709 |
|
|
|
|
|
|
|
|
|
|
|
1,298,709 |
|
Total
|
|
|
|
$ |
1,298,709 |
|
|
$ |
162,093,754 |
|
|
|
|
|
|
$ |
163,392,463 |
|
|
1 |
See above Schedule of Investments for values in each state or political subdivision. |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Derivative Financial Instruments2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
|
|
$ |
27,410 |
|
|
|
|
|
|
|
|
|
|
$ |
27,410 |
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.
|
|
|
|
|
The
Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of July 31,
2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash pledged for financial futures contracts |
|
|
|
$ |
88,000 |
|
|
|
|
|
|
|
|
|
|
$ |
88,000 |
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOB trust certificates |
|
|
|
|
|
|
|
$ |
(29,682,276 |
) |
|
|
|
|
|
|
(29,682,276 |
) |
VRDP Shares |
|
|
|
|
|
|
|
|
(34,200,000 |
) |
|
|
|
|
|
|
(34,200,000 |
) |
Total
|
|
|
|
$ |
88,000 |
|
|
$ |
(63,882,276 |
) |
|
|
|
|
|
$ |
(63,794,276 |
) |
|
There were no transfers between levels during the year ended July 31, 2014. |
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
29
|
| |
Schedule of Investments July 31, 2014 |
BlackRock Municipal
Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Alabama 0.6% |
|
|
|
|
|
|
|
|
|
|
City of Phenix Alabama IDB, Refunding RB, Meadwestvaco Coated Board Project, Series A, 3.63%, 5/15/30 |
|
|
|
$ |
5,850 |
|
|
$ |
5,440,617 |
|
County of Jefferson Alabama, RB, Limited Obligation School, Series A: |
|
|
|
|
|
|
|
|
|
|
5.25%, 1/01/19 |
|
|
|
|
1,000 |
|
|
|
1,008,900 |
|
5.25%, 1/01/20 |
|
|
|
|
1,000 |
|
|
|
1,008,900 |
|
5.50%, 1/01/21 |
|
|
|
|
1,200 |
|
|
|
1,210,680 |
|
5.50%, 1/01/22 |
|
|
|
|
1,105 |
|
|
|
1,114,834 |
|
|
|
|
|
|
|
|
|
|
9,783,931 |
|
Alaska 0.5% |
|
|
|
|
|
|
|
|
|
|
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 4.63%,
6/01/23 |
|
|
|
|
8,160 |
|
|
|
7,610,914 |
|
Arizona 1.1% |
|
|
|
|
|
|
|
|
|
|
Arizona Health Facilities Authority, Refunding RB, Phoenix Childrens Hospital: |
|
|
|
|
|
|
|
|
|
|
Series A, 5.00%, 2/01/34 |
|
|
|
|
6,340 |
|
|
|
6,764,273 |
|
Series B, 5.00%, 2/01/33 |
|
|
|
|
1,810 |
|
|
|
1,933,967 |
|
City of Phoenix Arizona IDA, RB, Facility: |
|
|
|
|
|
|
|
|
|
|
Candeo Schools, Inc. Project, 6.00%, 7/01/23 |
|
|
|
|
700 |
|
|
|
752,962 |
|
Eagle College Preparatory Project, Series A, 4.50%, 7/01/22 |
|
|
|
|
735 |
|
|
|
726,305 |
|
Eagle College Preparatory Project, Series A, 5.00%, 7/01/33 |
|
|
|
|
1,000 |
|
|
|
929,400 |
|
Legacy Traditional Schools Project, Series A, 5.75%, 7/01/24 (a) |
|
|
|
|
750 |
|
|
|
791,122 |
|
County of Pima Arizona IDA, Refunding RB, Tucson Electric Power Co. Project, Series A, 4.00%, 9/01/29 |
|
|
|
|
6,000 |
|
|
|
5,999,820 |
|
|
|
|
|
|
|
|
|
|
17,897,849 |
|
California 23.3% |
|
|
|
|
|
|
|
|
|
|
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Odd Fellows Home California, Series A, 5.00%, 4/01/32 |
|
|
|
|
4,500 |
|
|
|
4,993,560 |
|
Alameda Corridor Transportation Authority, Refunding RB, CAB, Sub Lien, Series A (AMBAC), 0.00%, 10/01/30 (b) |
|
|
|
|
10,530 |
|
|
|
4,761,561 |
|
Anaheim California Public Financing Authority, Refunding RB, Electric Distribution System, Series A, 4.00%, 10/01/31 |
|
|
|
|
17,080 |
|
|
|
17,595,645 |
|
California Health Facilities Financing Authority, Refunding RB, Adventist Health System/West, Series A: |
|
|
|
|
|
|
|
|
|
|
4.00%, 3/01/27 |
|
|
|
|
4,270 |
|
|
|
4,420,603 |
|
4.00%, 3/01/28 |
|
|
|
|
8,490 |
|
|
|
8,726,022 |
|
4.00%, 3/01/33 |
|
|
|
|
61,485 |
|
|
|
61,164,048 |
|
California HFA, RB, S/F Housing, Home Mortgage, Series I, AMT, 4.70%, 8/01/26 |
|
|
|
|
10,000 |
|
|
|
10,123,800 |
|
California Municipal Finance Authority, RB, Biola University: |
|
|
|
|
|
|
|
|
|
|
4.00%, 10/01/27 |
|
|
|
|
750 |
|
|
|
756,570 |
|
5.00%, 10/01/29 |
|
|
|
|
660 |
|
|
|
718,654 |
|
5.00%, 8/15/30 |
|
|
|
|
1,000 |
|
|
|
1,098,490 |
|
5.00%, 10/01/30 |
|
|
|
|
500 |
|
|
|
540,820 |
|
4.00%, 10/01/33 |
|
|
|
|
2,500 |
|
|
|
2,406,675 |
|
California Pollution Control Financing Authority, RB, Poseidon Resources Desalination Project, AMT, 5.00%, 7/01/30 (a) |
|
|
|
|
18,845 |
|
|
|
19,637,998 |
|
California State Public Works Board, RB: |
|
|
|
|
|
|
|
|
|
|
Judicial Council Projects, Series A, 5.00%, 3/01/31 |
|
|
|
|
5,000 |
|
|
|
5,591,100 |
|
Judicial Council Projects, Series A, 5.00%, 3/01/32 |
|
|
|
|
5,000 |
|
|
|
5,579,250 |
|
Judicial Council Projects, Series A, 5.00%, 3/01/33 |
|
|
|
|
5,220 |
|
|
|
5,796,027 |
|
Series D, 5.00%, 9/01/29 |
|
|
|
|
2,850 |
|
|
|
3,206,278 |
|
Series D, 5.00%, 9/01/30 |
|
|
|
|
2,620 |
|
|
|
2,927,771 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
California (continued) |
|
|
|
|
|
|
|
|
|
|
California State Public Works Board, RB (concluded): |
|
|
|
|
|
|
|
|
|
|
Series D, 5.00%, 9/01/31 |
|
|
|
$ |
2,905 |
|
|
$ |
3,224,521 |
|
Series D, 5.00%, 9/01/32 |
|
|
|
|
6,060 |
|
|
|
6,703,996 |
|
Series E, 5.00%, 9/01/29 |
|
|
|
|
2,355 |
|
|
|
2,649,399 |
|
Series E, 5.00%, 9/01/30 |
|
|
|
|
2,475 |
|
|
|
2,765,738 |
|
Series E, 5.00%, 9/01/31 |
|
|
|
|
2,600 |
|
|
|
2,885,974 |
|
Series E, 5.00%, 9/01/32 |
|
|
|
|
2,280 |
|
|
|
2,522,296 |
|
California Statewide Communities Development Authority, RB, American Baptist Homes of the West, Series A: |
|
|
|
|
|
|
|
|
|
|
5.00%, 10/01/23 |
|
|
|
|
1,500 |
|
|
|
1,627,200 |
|
5.00%, 10/01/28 |
|
|
|
|
650 |
|
|
|
687,902 |
|
5.00%, 10/01/33 |
|
|
|
|
2,275 |
|
|
|
2,337,790 |
|
California Statewide Communities Development Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Episcopal Communities & Services, 5.00%, 5/15/27 |
|
|
|
|
500 |
|
|
|
536,830 |
|
Episcopal Communities & Services, 5.00%, 5/15/32 |
|
|
|
|
1,000 |
|
|
|
1,057,380 |
|
Eskaton Properties, Inc., 5.25%, 11/15/34 |
|
|
|
|
2,500 |
|
|
|
2,610,775 |
|
Chabot-Las Positas Community College District, GO, Refunding, 2016 Crossover, 5.00%, 8/01/29 |
|
|
|
|
18,500 |
|
|
|
21,179,540 |
|
City & County of San Francisco California Redevelopment Agency, Refunding, Special Tax Bonds, No. 6 Mission Bay South Public Improvements,
Series A: |
|
|
|
|
|
|
|
|
|
|
5.00%, 8/01/28 |
|
|
|
|
1,000 |
|
|
|
1,093,170 |
|
5.00%, 8/01/29 |
|
|
|
|
1,300 |
|
|
|
1,415,245 |
|
5.00%, 8/01/33 |
|
|
|
|
1,335 |
|
|
|
1,434,938 |
|
Corona-Norco Unified School District, Refunding, Special Tax Bonds, Senior Lien, Series A, 5.00%, 9/01/32 |
|
|
|
|
1,250 |
|
|
|
1,321,925 |
|
County of Los Angeles California Public Works Financing Authority, Refunding RB, Multiple Capital Projects II: |
|
|
|
|
|
|
|
|
|
|
5.00%, 8/01/30 |
|
|
|
|
2,500 |
|
|
|
2,781,825 |
|
5.00%, 8/01/31 |
|
|
|
|
3,000 |
|
|
|
3,320,460 |
|
5.00%, 8/01/32 |
|
|
|
|
3,000 |
|
|
|
3,305,040 |
|
5.00%, 8/01/33 |
|
|
|
|
2,500 |
|
|
|
2,745,050 |
|
County of Ventura California Public Financing Authority, Refunding RB, Series A: |
|
|
|
|
|
|
|
|
|
|
5.00%, 11/01/30 |
|
|
|
|
1,200 |
|
|
|
1,367,604 |
|
5.00%, 11/01/31 |
|
|
|
|
1,500 |
|
|
|
1,697,835 |
|
5.00%, 11/01/32 |
|
|
|
|
1,500 |
|
|
|
1,689,705 |
|
5.00%, 11/01/33 |
|
|
|
|
1,200 |
|
|
|
1,346,232 |
|
El
Camino Community College District, GO, CAB, Election of 2002, Series C (b): |
|
|
|
|
|
|
|
|
|
|
0.00%, 8/01/30 |
|
|
|
|
9,090 |
|
|
|
4,778,249 |
|
0.00%, 8/01/31 |
|
|
|
|
12,465 |
|
|
|
6,210,936 |
|
0.00%, 8/01/32 |
|
|
|
|
17,435 |
|
|
|
8,309,172 |
|
Escondido Union High School District, GO, CAB, Election of 2008, Series A
(AGC) (b): |
|
|
|
|
|
|
|
|
|
|
0.00%, 8/01/32 |
|
|
|
|
1,675 |
|
|
|
767,920 |
|
0.00%, 8/01/33 |
|
|
|
|
2,865 |
|
|
|
1,227,767 |
|
Golden State Tobacco Securitization Corp., Refunding RB, Series A, 5.00%, 6/01/30 |
|
|
|
|
1,500 |
|
|
|
1,652,850 |
|
Grossmont Union High School District, GO, CAB, Election of 2004, 0.00%,
8/01/32 (b) |
|
|
|
|
29,015 |
|
|
|
12,864,381 |
|
Los
Angeles Regional Airports Improvement Corp., Refunding RB, LAXFUEL Corp., Los Angeles International, AMT: |
|
|
|
|
|
|
|
|
|
|
4.50%, 1/01/27 |
|
|
|
|
5,000 |
|
|
|
5,297,200 |
|
5.00%, 1/01/32 |
|
|
|
|
4,110 |
|
|
|
4,360,546 |
|
M-S-R Energy Authority, RB, Series C, 6.13%, 11/01/29 |
|
|
|
|
2,500 |
|
|
|
3,072,825 |
|
See Notes to Financial
Statements.
30 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (continued) |
BlackRock Municipal
Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
California (concluded) |
|
|
|
|
|
|
|
|
|
|
Poway Unified School District, GO, CAB, Election of 2008, Series A (b): |
|
|
|
|
|
|
|
|
|
|
0.00%, 8/01/27 |
|
|
|
$ |
10,000 |
|
|
$ |
5,958,100 |
|
0.00%, 8/01/30 |
|
|
|
|
10,000 |
|
|
|
5,070,500 |
|
0.00%, 8/01/32 |
|
|
|
|
12,500 |
|
|
|
5,720,625 |
|
Poway Unified School District Public Financing Authority, Refunding, Special Tax Bonds: |
|
|
|
|
|
|
|
|
|
|
5.00%, 9/15/26 |
|
|
|
|
935 |
|
|
|
1,052,511 |
|
5.00%, 9/15/29 |
|
|
|
|
1,205 |
|
|
|
1,333,164 |
|
5.00%, 9/15/32 |
|
|
|
|
995 |
|
|
|
1,076,709 |
|
Riverside Public Financing Authority, Tax Allocation Bonds, University Corridor/Sycamore Canyon Merged Redevelopment Project, Series C (NPFGC),
4.50%, 8/01/30 |
|
|
|
|
10,000 |
|
|
|
10,069,700 |
|
Sacramento County Sanitation Districts Financing Authority, Refunding RB, Series A, 5.00%, 12/01/30 |
|
|
|
|
2,000 |
|
|
|
2,340,220 |
|
San
Bernardino Community College District, GO, Refunding, Series A: |
|
|
|
|
|
|
|
|
|
|
4.00%, 8/01/31 |
|
|
|
|
15,660 |
|
|
|
16,150,001 |
|
4.00%, 8/01/32 |
|
|
|
|
17,010 |
|
|
|
17,450,049 |
|
4.00%, 8/01/33 |
|
|
|
|
5,665 |
|
|
|
5,789,743 |
|
San
Diego Community College District, GO, Election of 2006, 0.00%,
8/01/30 (b) |
|
|
|
|
5,000 |
|
|
|
2,371,750 |
|
Westlands California Water District, Refunding RB, Series A (AGM): |
|
|
|
|
|
|
|
|
|
|
5.00%, 9/01/30 |
|
|
|
|
1,000 |
|
|
|
1,115,970 |
|
5.00%, 9/01/31 |
|
|
|
|
1,000 |
|
|
|
1,107,010 |
|
5.00%, 9/01/32 |
|
|
|
|
1,000 |
|
|
|
1,101,830 |
|
|
|
|
|
|
|
|
|
|
360,602,970 |
|
Colorado 6.0% |
|
|
|
|
|
|
|
|
|
|
Central Platte Valley Metropolitan District, GO, Series A: |
|
|
|
|
|
|
|
|
|
|
5.13%, 12/01/29 |
|
|
|
|
700 |
|
|
|
771,694 |
|
5.50%, 12/01/29 |
|
|
|
|
750 |
|
|
|
849,990 |
|
5.38%, 12/01/33 |
|
|
|
|
1,500 |
|
|
|
1,669,755 |
|
City & County of Denver Colorado Airport System Revenue, Refunding RB, Series B, 4.00%, 11/15/31 |
|
|
|
|
37,090 |
|
|
|
37,743,526 |
|
City of Commerce Colorado-Northern Infrastructure General Improvement District, GO, Refunding, Improvement (AGM): |
|
|
|
|
|
|
|
|
|
|
5.00%, 12/01/26 |
|
|
|
|
2,770 |
|
|
|
3,111,929 |
|
5.00%, 12/01/28 |
|
|
|
|
1,560 |
|
|
|
1,734,954 |
|
5.00%, 12/01/29 |
|
|
|
|
1,070 |
|
|
|
1,182,649 |
|
5.00%, 12/01/31 |
|
|
|
|
500 |
|
|
|
552,260 |
|
5.00%, 12/01/32 |
|
|
|
|
800 |
|
|
|
880,584 |
|
City of Lakewood Colorado Plaza Metropolitan District No. 1, Refunding, Tax Allocation Bonds, 4.00%, 12/01/23 |
|
|
|
|
1,000 |
|
|
|
987,680 |
|
Colorado Educational & Cultural Facilities Authority, Refunding RB, 5.00%, 8/15/30 |
|
|
|
|
1,000 |
|
|
|
1,086,310 |
|
Colorado Health Facilities Authority, Refunding RB, Covenant Retirement Communities, Series A: |
|
|
|
|
|
|
|
|
|
|
4.50%, 12/01/33 |
|
|
|
|
4,595 |
|
|
|
4,388,868 |
|
5.00%, 12/01/33 |
|
|
|
|
3,000 |
|
|
|
3,107,310 |
|
Denver West Metropolitan District, GO, Refunding, Series A (AGM), 4.00%, 12/01/32 |
|
|
|
|
6,250 |
|
|
|
6,347,250 |
|
Plaza Metropolitan District No. 1, Refunding, Tax Allocation Bonds: |
|
|
|
|
|
|
|
|
|
|
4.10%, 12/01/24 |
|
|
|
|
5,080 |
|
|
|
4,991,557 |
|
4.20%, 12/01/25 |
|
|
|
|
5,280 |
|
|
|
5,195,520 |
|
4.50%, 12/01/30 |
|
|
|
|
4,305 |
|
|
|
4,241,114 |
|
State of Colorado, COP, Refunding, Fitzsimons Academic Projects, 4.00%, 11/01/30 |
|
|
|
|
12,675 |
|
|
|
13,050,180 |
|
Tallyns Reach Metropolitan District No. 3, GO, Refunding, 5.00%, 12/01/33 |
|
|
|
|
505 |
|
|
|
507,212 |
|
|
|
|
|
|
|
|
|
|
92,400,342 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Connecticut 1.4% |
|
|
|
|
|
|
|
|
|
|
City of Hartford Connecticut, GO, Refunding, Series A: |
|
|
|
|
|
|
|
|
|
|
4.00%, 4/01/29 |
|
|
|
$ |
8,390 |
|
|
$ |
8,625,004 |
|
4.00%, 4/01/32 |
|
|
|
|
1,500 |
|
|
|
1,515,285 |
|
Connecticut HFA, Refunding RB, M/F Housing Mortgage Finance Program, Sub-Series F-1, 3.00%, 11/15/32 |
|
|
|
|
12,020 |
|
|
|
11,181,965 |
|
|
|
|
|
|
|
|
|
|
21,322,254 |
|
District of Columbia 0.1% |
|
|
|
|
|
|
|
|
|
|
District of Columbia, Refunding RB, Kipp Charter School, 6.00%, 7/01/33 |
|
|
|
|
1,700 |
|
|
|
1,943,236 |
|
Florida 10.4% |
|
|
|
|
|
|
|
|
|
|
City of North Miami Beach Florida, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
4.00%, 8/01/27 |
|
|
|
|
3,325 |
|
|
|
3,485,298 |
|
5.00%, 8/01/29 |
|
|
|
|
3,650 |
|
|
|
4,026,461 |
|
5.00%, 8/01/30 |
|
|
|
|
4,020 |
|
|
|
4,414,040 |
|
5.00%, 8/01/31 |
|
|
|
|
4,235 |
|
|
|
4,625,509 |
|
5.00%, 8/01/32 |
|
|
|
|
4,445 |
|
|
|
4,832,382 |
|
City of Tampa Florida, Refunding RB, Series A: |
|
|
|
|
|
|
|
|
|
|
County of Hillsborough Florida Expressway Authority, 4.00%, 7/01/29 |
|
|
|
|
6,000 |
|
|
|
6,168,060 |
|
County of Hillsborough Florida Expressway Authority, 4.00%, 7/01/30 |
|
|
|
|
6,395 |
|
|
|
6,538,696 |
|
H Lee Moffitt Cancer Center Project, 4.00%, 9/01/33 |
|
|
|
|
10,000 |
|
|
|
9,973,200 |
|
County of Alachua Florida Health Facilities Authority, RB, East Ridge Retirement Village, Inc., 6.00%, 11/15/29 |
|
|
|
|
5,000 |
|
|
|
5,286,550 |
|
County of Broward Florida, RB, Fort Lauderdale Fuel System Revenue, AMT: |
|
|
|
|
|
|
|
|
|
|
5.00%, 4/01/30 |
|
|
|
|
600 |
|
|
|
639,024 |
|
5.00%, 4/01/33 |
|
|
|
|
740 |
|
|
|
783,697 |
|
County of Hillsborough Florida IDA, RB, National Gypsum Co., Series A, AMT, 7.13%, 4/01/30 |
|
|
|
|
7,300 |
|
|
|
7,315,111 |
|
County of Martin Florida IDA, Refunding RB, Indiantown Cogeneration, L.P. Project, AMT, 4.20%, 12/15/25 |
|
|
|
|
5,250 |
|
|
|
5,283,758 |
|
County of Miami-Dade Florida Educational Facilities Authority, RB, University of Miami, Series A: |
|
|
|
|
|
|
|
|
|
|
4.00%, 4/01/31 |
|
|
|
|
2,930 |
|
|
|
2,955,550 |
|
4.00%, 4/01/32 |
|
|
|
|
1,000 |
|
|
|
1,004,330 |
|
County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, Sub-Series B, 5.00%, 10/01/32 |
|
|
|
|
10,000 |
|
|
|
10,967,700 |
|
County of Miami-Dade Florida Expressway Authority, Refunding RB, Series A: |
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/30 |
|
|
|
|
5,530 |
|
|
|
6,107,111 |
|
5.00%, 7/01/31 |
|
|
|
|
5,000 |
|
|
|
5,489,150 |
|
County of Miami-Dade Florida School Board, COP, Refunding, Series A, 5.00%, 5/01/32 |
|
|
|
|
10,000 |
|
|
|
10,816,000 |
|
County of St. Johns Florida Water & Sewer Revenue, Refunding RB, CAB, Series B (b): |
|
|
|
|
|
|
|
|
|
|
0.00%, 6/01/25 |
|
|
|
|
2,155 |
|
|
|
1,533,757 |
|
0.00%, 6/01/26 |
|
|
|
|
2,655 |
|
|
|
1,793,240 |
|
0.00%, 6/01/27 |
|
|
|
|
3,095 |
|
|
|
1,963,035 |
|
0.00%, 6/01/28 |
|
|
|
|
3,795 |
|
|
|
2,286,601 |
|
0.00%, 6/01/29 |
|
|
|
|
3,795 |
|
|
|
2,169,981 |
|
0.00%, 6/01/30 |
|
|
|
|
2,000 |
|
|
|
1,060,700 |
|
0.00%, 6/01/31 |
|
|
|
|
1,295 |
|
|
|
648,989 |
|
0.00%, 6/01/32 |
|
|
|
|
2,495 |
|
|
|
1,186,847 |
|
Double Branch Community Development District, Refunding, Special Assessment Bonds, Senior Lien, Series A-1, 4.13%, 5/01/31 |
|
|
|
|
1,200 |
|
|
|
1,185,888 |
|
Greater Orlando Aviation Authority, Refunding RB, Jet Blue Airways Corp. Project, AMT, 5.00%, 11/15/26 |
|
|
|
|
2,000 |
|
|
|
1,976,360 |
|
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
31
|
| |
Schedule of Investments (continued) |
BlackRock Municipal
Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Florida (concluded) |
|
|
|
|
|
|
|
|
|
|
Jacksonville Florida Port Authority, Refunding RB, AMT: |
|
|
|
|
|
|
|
|
|
|
4.50%, 11/01/29 |
|
|
|
$ |
4,685 |
|
|
$ |
4,778,606 |
|
4.50%, 11/01/30 |
|
|
|
|
2,895 |
|
|
|
2,940,712 |
|
4.50%, 11/01/31 |
|
|
|
|
3,200 |
|
|
|
3,223,936 |
|
4.50%, 11/01/32 |
|
|
|
|
2,300 |
|
|
|
2,307,728 |
|
4.50%, 11/01/33 |
|
|
|
|
2,080 |
|
|
|
2,084,139 |
|
Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/30 |
|
|
|
|
3,825 |
|
|
|
4,360,844 |
|
Village Community Development District No. 5, Refunding, Special Assessment Bonds, Phase I: |
|
|
|
|
|
|
|
|
|
|
3.50%, 5/01/28 |
|
|
|
|
6,185 |
|
|
|
6,006,872 |
|
4.00%, 5/01/33 |
|
|
|
|
1,235 |
|
|
|
1,223,675 |
|
4.00%, 5/01/34 |
|
|
|
|
2,590 |
|
|
|
2,548,146 |
|
Village Community Development District No. 10, Special Assessment Bonds, Sumter County: |
|
|
|
|
|
|
|
|
|
|
4.50%, 5/01/23 |
|
|
|
|
3,555 |
|
|
|
3,603,561 |
|
5.00%, 5/01/32 |
|
|
|
|
5,985 |
|
|
|
5,946,277 |
|
Village Community Development District No. 6, Refunding, Special Assessment Bonds, Sumter County, 4.00%, 5/01/29 |
|
|
|
|
6,400 |
|
|
|
6,412,416 |
|
|
|
|
|
|
|
|
|
|
161,953,937 |
|
Georgia 0.8% |
|
|
|
|
|
|
|
|
|
|
Georgia Housing & Finance Authority, RB, S/F Housing, Series A, 3.45%, 12/01/32 |
|
|
|
|
12,050 |
|
|
|
11,856,236 |
|
Guam 0.7% |
|
|
|
|
|
|
|
|
|
|
Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/30 |
|
|
|
|
10,000 |
|
|
|
11,072,000 |
|
Idaho 0.7% |
|
|
|
|
|
|
|
|
|
|
Idaho Housing & Finance Association, RB, Series A, 4.00%, 7/15/30 |
|
|
|
|
10,000 |
|
|
|
10,246,600 |
|
Illinois 14.2% |
|
|
|
|
|
|
|
|
|
|
Chicago Midway International Airport, Refunding RB, AMT, Series A, 5.00%, 1/01/33 |
|
|
|
|
5,000 |
|
|
|
5,292,350 |
|
City of Chicago Illinois Motor Fuel Tax Revenue, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
5.00%, 1/01/30 |
|
|
|
|
2,730 |
|
|
|
2,964,698 |
|
5.00%, 1/01/32 |
|
|
|
|
2,000 |
|
|
|
2,155,580 |
|
City of Chicago Illinois, GO: |
|
|
|
|
|
|
|
|
|
|
CAB (NPFGC), 0.00%, 1/01/27 (b) |
|
|
|
|
5,000 |
|
|
|
2,818,600 |
|
Project, Series A, 5.00%, 1/01/33 |
|
|
|
|
10,000 |
|
|
|
10,185,600 |
|
City of Chicago Illinois, Refunding RB, GO, Series A, 5.25%, 1/01/30 |
|
|
|
|
6,000 |
|
|
|
6,332,640 |
|
City of Chicago Illinois, RB, Wastewater Transmission, 2nd Lien: |
|
|
|
|
|
|
|
|
|
|
4.00%, 1/01/31 |
|
|
|
|
10,375 |
|
|
|
10,166,566 |
|
4.00%, 1/01/32 |
|
|
|
|
10,790 |
|
|
|
10,511,942 |
|
4.00%, 1/01/33 |
|
|
|
|
11,220 |
|
|
|
10,808,338 |
|
4.00%, 1/01/35 |
|
|
|
|
9,135 |
|
|
|
8,681,265 |
|
City of Chicago Illinois, Refunding ARB, OHare International Airport Passenger Facility Charge, Series B, AMT: |
|
|
|
|
|
|
|
|
|
|
4.00%, 1/01/27 |
|
|
|
|
5,000 |
|
|
|
4,988,050 |
|
4.00%, 1/01/29 |
|
|
|
|
28,425 |
|
|
|
27,699,878 |
|
City of St. Charles Illinois, GO, Refunding, Corporate Purpose: |
|
|
|
|
|
|
|
|
|
|
4.00%, 12/01/30 |
|
|
|
|
1,620 |
|
|
|
1,679,227 |
|
4.00%, 12/01/31 |
|
|
|
|
1,715 |
|
|
|
1,766,433 |
|
4.00%, 12/01/32 |
|
|
|
|
1,800 |
|
|
|
1,843,542 |
|
County of Cook Illinois, GO, Refunding, Series C, 4.00%, 11/15/29 |
|
|
|
|
19,750 |
|
|
|
20,055,730 |
|
County of Will Illinois Community High School District No. 210 Lincoln-Way, GO, CAB, Refunding, Series B (b): |
|
|
|
|
|
|
|
|
|
|
0.00%, 1/01/29 |
|
|
|
|
6,920 |
|
|
|
3,674,105 |
|
0.00%, 1/01/30 |
|
|
|
|
5,680 |
|
|
|
2,826,084 |
|
0.00%, 1/01/31 |
|
|
|
|
13,330 |
|
|
|
6,412,796 |
|
0.00%, 1/01/32 |
|
|
|
|
16,500 |
|
|
|
7,258,185 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Illinois (concluded) |
|
|
|
|
|
|
|
|
|
|
County of Will Illinois Community High School District No. 210 Lincoln-Way, GO, Refunding, Series A, 5.00%, 1/01/31 |
|
|
|
$ |
16,300 |
|
|
$ |
17,894,140 |
|
Illinois Finance Authority, RB, 6.00%, 9/01/32 |
|
|
|
|
1,620 |
|
|
|
1,765,427 |
|
Illinois Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Lutheran Home & Services Obligated Group, 5.00%, 5/15/22 |
|
|
|
|
4,835 |
|
|
|
5,053,445 |
|
Lutheran Home & Services Obligated Group, 5.50%, 5/15/27 |
|
|
|
|
4,350 |
|
|
|
4,514,126 |
|
Lutheran Home & Services Obligated Group, 5.50%, 5/15/30 |
|
|
|
|
4,900 |
|
|
|
5,005,350 |
|
Northwestern Memorial Healthcare, 4.00%, 8/15/33 |
|
|
|
|
7,665 |
|
|
|
7,791,473 |
|
The Peoples Gas Light & Coke Company Project, 4.00%, 2/01/33 |
|
|
|
|
11,000 |
|
|
|
11,031,570 |
|
Winnebago & Boone Counties School District No. 205 Rockford, GO: |
|
|
|
|
|
|
|
|
|
|
4.00%, 2/01/29 |
|
|
|
|
9,305 |
|
|
|
9,527,483 |
|
4.00%, 2/01/30 |
|
|
|
|
9,835 |
|
|
|
10,005,342 |
|
|
|
|
|
|
|
|
|
|
220,709,965 |
|
Indiana 2.9% |
|
|
|
|
|
|
|
|
|
|
Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A, 4.00%, 8/01/33 |
|
|
|
|
8,500 |
|
|
|
8,788,320 |
|
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT, 5.88%, 1/01/24 |
|
|
|
|
2,250 |
|
|
|
2,489,265 |
|
Indiana Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Community Health Network Project, Series A, 4.00%, 5/01/35 |
|
|
|
|
23,565 |
|
|
|
22,167,360 |
|
Earlham College Project, 5.00%, 10/01/32 |
|
|
|
|
11,255 |
|
|
|
11,776,557 |
|
|
|
|
|
|
|
|
|
|
45,221,502 |
|
Iowa 2.2% |
|
|
|
|
|
|
|
|
|
|
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project: |
|
|
|
|
|
|
|
|
|
|
5.50%, 12/01/22 |
|
|
|
|
18,500 |
|
|
|
19,289,950 |
|
5.25%, 12/01/25 |
|
|
|
|
14,345 |
|
|
|
15,118,626 |
|
|
|
|
|
|
|
|
|
|
34,408,576 |
|
Kentucky 0.1% |
|
|
|
|
|
|
|
|
|
|
Kentucky Public Transportation Infrastructure Authority, RB, Convertible CAB-1st Tier-DownTown Crossing Project, Series C, 0.00%, 7/01/33
(c) |
|
|
|
|
1,500 |
|
|
|
995,640 |
|
Kentucky Public Transportation Infrastructure Authority, RB, CAB-1st Tier-DownTown Crossing Project, Series B, 0.00%, 7/01/30
(b) |
|
|
|
|
1,230 |
|
|
|
499,774 |
|
|
|
|
|
|
|
|
|
|
1,495,414 |
|
Louisiana 3.2% |
|
|
|
|
|
|
|
|
|
|
City of New Orleans Louisiana, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
5.00%, 12/01/27 |
|
|
|
|
1,500 |
|
|
|
1,666,575 |
|
5.00%, 12/01/29 |
|
|
|
|
1,000 |
|
|
|
1,097,230 |
|
Louisiana Stadium & Exposition District, Refunding RB, Senior, Series A: |
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/27 |
|
|
|
|
3,770 |
|
|
|
4,227,489 |
|
5.00%, 7/01/28 |
|
|
|
|
4,420 |
|
|
|
4,916,764 |
|
5.00%, 7/01/29 |
|
|
|
|
3,000 |
|
|
|
3,305,790 |
|
5.00%, 7/01/30 |
|
|
|
|
5,000 |
|
|
|
5,493,700 |
|
5.00%, 7/01/31 |
|
|
|
|
5,105 |
|
|
|
5,568,534 |
|
5.00%, 7/01/32 |
|
|
|
|
3,000 |
|
|
|
3,277,140 |
|
Port New Orleans Board of Commissioners, Refunding RB, Series B, AMT: |
|
|
|
|
|
|
|
|
|
|
5.00%, 4/01/31 |
|
|
|
|
300 |
|
|
|
314,601 |
|
5.00%, 4/01/32 |
|
|
|
|
1,000 |
|
|
|
1,044,250 |
|
5.00%, 4/01/33 |
|
|
|
|
1,575 |
|
|
|
1,641,245 |
|
Terrebonne Levee & Conservation District, RB, Sales Tax, 5.00%, 7/01/29 |
|
|
|
|
1,925 |
|
|
|
2,121,215 |
|
See Notes to Financial
Statements.
32 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (continued) |
BlackRock Municipal
Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Louisiana (concluded) |
|
|
|
|
|
|
|
|
|
|
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A: |
|
|
|
|
|
|
|
|
|
|
5.25%, 5/15/31 |
|
|
|
$ |
3,425 |
|
|
$ |
3,675,025 |
|
5.25%, 5/15/32 |
|
|
|
|
4,375 |
|
|
|
4,650,319 |
|
5.25%, 5/15/33 |
|
|
|
|
4,750 |
|
|
|
5,026,355 |
|
5.25%, 5/15/35 |
|
|
|
|
1,500 |
|
|
|
1,594,020 |
|
|
|
|
|
|
|
|
|
|
49,620,252 |
|
Maine 1.4% |
|
|
|
|
|
|
|
|
|
|
Maine Health & Higher Educational Facilities Authority, RB, Eastern Maine Medical Center Obligation: |
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/25 |
|
|
|
|
1,250 |
|
|
|
1,399,650 |
|
5.00%, 7/01/26 |
|
|
|
|
1,000 |
|
|
|
1,105,550 |
|
5.00%, 7/01/27 |
|
|
|
|
1,000 |
|
|
|
1,093,170 |
|
3.75%, 7/01/28 |
|
|
|
|
1,000 |
|
|
|
976,620 |
|
5.00%, 7/01/33 |
|
|
|
|
5,000 |
|
|
|
5,302,400 |
|
Maine State Housing Authority, Refunding RB, S/F Housing, Series B, 3.45%, 11/15/32 |
|
|
|
|
12,000 |
|
|
|
11,744,160 |
|
|
|
|
|
|
|
|
|
|
21,621,550 |
|
Maryland 0.4% |
|
|
|
|
|
|
|
|
|
|
Maryland EDC, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
CNX Marine Terminals, Inc., 5.75%, 9/01/25 |
|
|
|
|
5,000 |
|
|
|
5,458,300 |
|
Salisbury University Project, 5.00%, 6/01/34 |
|
|
|
|
500 |
|
|
|
526,220 |
|
|
|
|
|
|
|
|
|
|
5,984,520 |
|
Massachusetts 1.4% |
|
|
|
|
|
|
|
|
|
|
Massachusetts Educational Financing Authority, Refunding RB, Series K, AMT, 5.25%, 7/01/29 |
|
|
|
|
10,000 |
|
|
|
10,791,400 |
|
Massachusetts HFA, Refunding RB, S/F Housing, Series 163, AMT, 4.00%, 12/01/33 |
|
|
|
|
11,425 |
|
|
|
10,919,672 |
|
|
|
|
|
|
|
|
|
|
21,711,072 |
|
Michigan 0.9% |
|
|
|
|
|
|
|
|
|
|
Michigan Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Holland Community Hospital, Series A, 5.00%, 1/01/33 |
|
|
|
|
750 |
|
|
|
796,515 |
|
Oakwood Obligation Group, 5.00%, 8/15/30 |
|
|
|
|
4,105 |
|
|
|
4,472,233 |
|
Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32 |
|
|
|
|
9,195 |
|
|
|
9,281,433 |
|
|
|
|
|
|
|
|
|
|
14,550,181 |
|
Missouri 0.3% |
|
|
|
|
|
|
|
|
|
|
Missouri State Health & Educational Facilities Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
CoxHealth, Series A, 4.00%, 11/15/33 |
|
|
|
|
2,010 |
|
|
|
1,959,710 |
|
St. Lewis College of Pharmacy Project, 5.00%, 5/01/30 |
|
|
|
|
3,000 |
|
|
|
3,196,650 |
|
|
|
|
|
|
|
|
|
|
5,156,360 |
|
Nebraska 1.2% |
|
|
|
|
|
|
|
|
|
|
Central Plains Nebraska Energy Project, RB: |
|
|
|
|
|
|
|
|
|
|
Energy Project No. 3, 5.00%, 9/01/27 |
|
|
|
|
7,010 |
|
|
|
7,734,133 |
|
Gas Project No. 3, 5.00%, 9/01/32 |
|
|
|
|
9,500 |
|
|
|
10,191,030 |
|
|
|
|
|
|
|
|
|
|
17,925,163 |
|
New Hampshire 1.0% |
|
|
|
|
|
|
|
|
|
|
New
Hampshire Health & Education Facilities Authority, Refunding RB, Concord Hospital, Series A: |
|
|
|
|
|
|
|
|
|
|
5.00%, 10/01/26 |
|
|
|
|
1,075 |
|
|
|
1,190,648 |
|
5.00%, 10/01/27 |
|
|
|
|
1,180 |
|
|
|
1,299,440 |
|
4.00%, 10/01/33 |
|
|
|
|
3,500 |
|
|
|
3,485,930 |
|
New
Hampshire State Turnpike System, RB, Series C: |
|
|
|
|
|
|
|
|
|
|
4.00%, 8/01/33 |
|
|
|
|
4,350 |
|
|
|
4,476,106 |
|
4.00%, 8/01/35 |
|
|
|
|
4,745 |
|
|
|
4,836,199 |
|
|
|
|
|
|
|
|
|
|
15,288,323 |
|
New Jersey 11.5% |
|
|
|
|
|
|
|
|
|
|
County of Gloucester New Jersey Pollution Control Financing Authority, Refunding RB, AMT, 5.00%, 12/01/24 |
|
|
|
|
1,500 |
|
|
|
1,640,355 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New Jersey (concluded) |
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA, RB, AMT: |
|
|
|
|
|
|
|
|
|
|
Continental Airlines, Inc. Project, 5.25%, 9/15/29 |
|
|
|
$ |
12,230 |
|
|
$ |
12,600,569 |
|
Continental Airlines, Inc. Project, Series A, 5.63%, 11/15/30 |
|
|
|
|
1,740 |
|
|
|
1,842,469 |
|
Continental Airlines, Inc. Project, Series B, 5.63%, 11/15/30 |
|
|
|
|
1,315 |
|
|
|
1,396,911 |
|
Private Activity Bond, The Goethals Bridge Replacement Project, 5.00%, 1/01/28 |
|
|
|
|
4,705 |
|
|
|
5,161,950 |
|
New
Jersey EDA, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
4.25%, 6/15/27 |
|
|
|
|
16,500 |
|
|
|
16,879,500 |
|
Cigarette Tax, 5.00%, 6/15/26 |
|
|
|
|
10,610 |
|
|
|
11,675,562 |
|
Continental Airlines, Inc. Project, AMT, 5.75%, 9/15/27 |
|
|
|
|
6,200 |
|
|
|
6,564,126 |
|
New
Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31 |
|
|
|
|
5,000 |
|
|
|
5,423,250 |
|
New
Jersey Health Care Facilities Financing Authority, Refunding RB, St. Barnabas Health, Series A, 4.00%, 7/01/26 |
|
|
|
|
3,000 |
|
|
|
3,102,900 |
|
New
Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT: |
|
|
|
|
|
|
|
|
|
|
4.10%, 11/01/28 |
|
|
|
|
15,800 |
|
|
|
15,966,532 |
|
4.35%, 11/01/33 |
|
|
|
|
7,315 |
|
|
|
7,370,082 |
|
New
Jersey Transportation Trust Fund Authority, RB, Transportation System: |
|
|
|
|
|
|
|
|
|
|
CAB, Series A, 0.00%, 12/15/28 (b) |
|
|
|
|
66,000 |
|
|
|
34,766,820 |
|
CAB, Series A, 0.00%, 12/15/29 (b) |
|
|
|
|
18,000 |
|
|
|
8,892,900 |
|
Series AA, 4.00%, 6/15/30 |
|
|
|
|
13,315 |
|
|
|
13,467,057 |
|
Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 5.25%, 1/01/27 |
|
|
|
|
5,000 |
|
|
|
5,744,300 |
|
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A: |
|
|
|
|
|
|
|
|
|
|
4.50%, 6/01/23 |
|
|
|
|
6,950 |
|
|
|
6,816,074 |
|
4.63%, 6/01/26 |
|
|
|
|
22,460 |
|
|
|
19,403,643 |
|
|
|
|
|
|
|
|
|
|
178,715,000 |
|
New Mexico 1.1% |
|
|
|
|
|
|
|
|
|
|
New
Mexico Educational Assistance Foundation, RB, AMT: |
|
|
|
|
|
|
|
|
|
|
Education Loan Series A-1, 3.75%, 9/01/31 |
|
|
|
|
6,250 |
|
|
|
6,042,750 |
|
Education Loan Series A-2, 3.80%, 11/01/32 |
|
|
|
|
5,850 |
|
|
|
5,660,869 |
|
Education Loan Series A-2, 3.80%, 9/01/33 |
|
|
|
|
5,000 |
|
|
|
4,840,000 |
|
|
|
|
|
|
|
|
|
|
16,543,619 |
|
New York 7.2% |
|
|
|
|
|
|
|
|
|
|
Build NYC Resource Corp., RB, Bronx Charter School for International Cultures & The Arts Project, Series A, 5.00%, 4/15/33 |
|
|
|
|
3,530 |
|
|
|
3,213,641 |
|
Housing Development Corp., RB, M/F Housing, Series K-1: |
|
|
|
|
|
|
|
|
|
|
3.40%, 11/01/30 |
|
|
|
|
8,070 |
|
|
|
7,882,130 |
|
3.50%, 11/01/32 |
|
|
|
|
5,865 |
|
|
|
5,702,540 |
|
Housing Development Corp., Refunding RB, M/F Housing: |
|
|
|
|
|
|
|
|
|
|
Series L-1, 3.40%, 11/01/30 |
|
|
|
|
1,580 |
|
|
|
1,543,218 |
|
Series L-1, 3.50%, 11/01/32 |
|
|
|
|
1,160 |
|
|
|
1,127,868 |
|
Series L-2-A, 3.60%, 11/01/33 |
|
|
|
|
11,000 |
|
|
|
10,745,240 |
|
Metropolitan Transportation Authority, Refunding RB, Series F, 5.00%, 11/15/30 |
|
|
|
|
25,000 |
|
|
|
27,982,000 |
|
New
York Mortgage Agency, Refunding RB, Series 48, 3.45%, 10/01/33 |
|
|
|
|
3,500 |
|
|
|
3,436,230 |
|
New
York State HFA, RB, M/F Affordable Housing (SONYMA), Series F: |
|
|
|
|
|
|
|
|
|
|
3.05%, 11/01/27 |
|
|
|
|
4,020 |
|
|
|
3,861,733 |
|
3.45%, 11/01/32 |
|
|
|
|
5,235 |
|
|
|
5,082,557 |
|
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series B, 4.00%, 11/01/24 |
|
|
|
|
3,000 |
|
|
|
3,022,140 |
|
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
33
|
| |
Schedule of Investments (continued) |
BlackRock Municipal
Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New York (concluded) |
|
|
|
|
|
|
|
|
|
|
Onondaga Civic Development Corp., Refunding RB, St. Josephs Hospital Health Center Project, 4.50%, 7/01/32 |
|
|
|
$ |
9,215 |
|
|
$ |
8,842,161 |
|
Triborough Bridge & Tunnel Authority, Refunding RB, CAB, Series A (b): |
|
|
|
|
|
|
|
|
|
|
0.00%, 11/15/29 |
|
|
|
|
17,810 |
|
|
|
9,893,989 |
|
0.00%, 11/15/30 |
|
|
|
|
25,215 |
|
|
|
13,329,405 |
|
0.00%, 11/15/31 |
|
|
|
|
5,000 |
|
|
|
2,501,550 |
|
TSASC Inc., Refunding RB, 5.00%, 6/01/26 |
|
|
|
|
4,000 |
|
|
|
3,721,960 |
|
|
|
|
|
|
|
|
|
|
111,888,362 |
|
North Carolina 1.2% |
|
|
|
|
|
|
|
|
|
|
City of Charlotte North Carolina, Refunding RB, Charlotte-Douglas International Airport, Special Facilities Revenue, US Airways, Inc. Project,
AMT, 5.60%, 7/01/27 |
|
|
|
|
15,000 |
|
|
|
15,004,650 |
|
North Carolina Medical Care Commission, RB, Mission Health Combined Group, 4.63%, 10/01/30 |
|
|
|
|
2,000 |
|
|
|
2,092,900 |
|
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%,
3/01/31 |
|
|
|
|
1,665 |
|
|
|
1,870,927 |
|
|
|
|
|
|
|
|
|
|
18,968,477 |
|
North Dakota 0.1% |
|
|
|
|
|
|
|
|
|
|
North Dakota HFA, RB, M/F Housing, Series A, 3.60%, 7/01/32 |
|
|
|
|
2,330 |
|
|
|
2,372,336 |
|
Ohio 0.4% |
|
|
|
|
|
|
|
|
|
|
County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities, Series A: |
|
|
|
|
|
|
|
|
|
|
5.25%, 7/01/28 |
|
|
|
|
500 |
|
|
|
521,505 |
|
5.63%, 7/01/32 |
|
|
|
|
1,000 |
|
|
|
1,043,710 |
|
Ohio State University, RB, General Receipts Special Purpose, Series A, 4.00%, 6/01/31 |
|
|
|
|
4,220 |
|
|
|
4,382,217 |
|
|
|
|
|
|
|
|
|
|
5,947,432 |
|
Oklahoma 0.2% |
|
|
|
|
|
|
|
|
|
|
County of Oklahoma Oklahoma Finance Authority, Refunding RB, Epworth Villa Project, Series A: |
|
|
|
|
|
|
|
|
|
|
5.00%, 4/01/23 |
|
|
|
|
1,050 |
|
|
|
941,000 |
|
5.00%, 4/01/29 |
|
|
|
|
1,500 |
|
|
|
1,296,840 |
|
5.00%, 4/01/33 |
|
|
|
|
1,050 |
|
|
|
882,021 |
|
|
|
|
|
|
|
|
|
|
3,119,861 |
|
Pennsylvania 9.4% |
|
|
|
|
|
|
|
|
|
|
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A: |
|
|
|
|
|
|
|
|
|
|
5.00%, 5/01/27 |
|
|
|
|
6,750 |
|
|
|
7,195,567 |
|
5.00%, 5/01/28 |
|
|
|
|
5,000 |
|
|
|
5,289,100 |
|
5.00%, 5/01/29 |
|
|
|
|
3,745 |
|
|
|
3,941,201 |
|
5.00%, 5/01/30 |
|
|
|
|
5,300 |
|
|
|
5,549,100 |
|
Beaver County Industrial Development Authority, Refunding RB, Series B, 3.50%, 12/01/35 (d) |
|
|
|
|
4,540 |
|
|
|
4,594,889 |
|
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Asbury Pennsylvania Obligated Group: |
|
|
|
|
|
|
|
|
|
|
5.00%, 1/01/22 |
|
|
|
|
750 |
|
|
|
792,765 |
|
5.25%, 1/01/27 |
|
|
|
|
1,275 |
|
|
|
1,316,017 |
|
5.25%, 1/01/32 |
|
|
|
|
3,350 |
|
|
|
3,387,788 |
|
County of Lehigh Pennsylvania, Refunding RB, Lehigh Valley Health Network, 4.00%, 7/01/33 |
|
|
|
|
27,535 |
|
|
|
27,589,795 |
|
County of Montgomery Pennsylvania Higher Education & Health Authority, Refunding RB, Abington Memorial Hospital Obligated Group, 5.00%,
6/01/31 |
|
|
|
|
5,000 |
|
|
|
5,392,400 |
|
County of Montgomery Pennsylvania IDA, Refunding RB, Acts Retirement-Life Communities, Inc. Obligated Group, 5.00%, 11/15/26 |
|
|
|
|
2,500 |
|
|
|
2,680,675 |
|
County of Northampton Pennsylvania General Purpose Authority, RB, St. Lukes Hospital of Bethlehem, Series A, 5.00%,
8/15/33 |
|
|
|
|
13,250 |
|
|
|
13,887,722 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Pennsylvania (concluded) |
|
|
|
|
|
|
|
|
|
|
Pennsylvania Economic Development Financing Authority, RB, National Gypsum Co., AMT: |
|
|
|
|
|
|
|
|
|
|
Series A, 6.25%, 11/01/27 |
|
|
|
$ |
6,520 |
|
|
$ |
6,522,412 |
|
Series B, 6.13%, 11/01/27 |
|
|
|
|
3,000 |
|
|
|
3,000,780 |
|
Pennsylvania HFA, RB, S/F Housing, Series 114, 3.30%, 10/01/32 |
|
|
|
|
20,500 |
|
|
|
19,369,630 |
|
Pennsylvania Higher Educational Facilities Authority, RB, Shippensburg University Student Services, 5.00%, 10/01/30 |
|
|
|
|
5,250 |
|
|
|
5,412,960 |
|
Pennsylvania Higher Educational Facilities Authority, Refunding RB, La Salle University, 4.00%, 5/01/32 |
|
|
|
|
3,000 |
|
|
|
2,858,190 |
|
State Public School Building Authority, RB, School District of Philadelphia Project: |
|
|
|
|
|
|
|
|
|
|
5.00%, 4/01/27 |
|
|
|
|
4,130 |
|
|
|
4,510,580 |
|
5.00%, 4/01/28 |
|
|
|
|
8,000 |
|
|
|
8,682,720 |
|
5.00%, 4/01/29 |
|
|
|
|
6,000 |
|
|
|
6,470,520 |
|
5.00%, 4/01/30 |
|
|
|
|
5,500 |
|
|
|
5,908,595 |
|
Township of East Hempfield Pennsylvania IDA, RB, Student Services Incorporate Student Housing, 5.00%, 7/01/30 |
|
|
|
|
1,280 |
|
|
|
1,339,942 |
|
|
|
|
|
|
|
|
|
|
145,693,348 |
|
South Carolina 0.1% |
|
|
|
|
|
|
|
|
|
|
South Carolina Jobs EDA, Refunding RB, Bon Secours Health System, Inc., 5.00%, 5/01/28 |
|
|
|
|
2,000 |
|
|
|
2,032,440 |
|
South Dakota 0.0% |
|
|
|
|
|
|
|
|
|
|
Educational Enhancement Funding Corp., Refunding RB, Series B, 5.00%, 6/01/27 |
|
|
|
|
650 |
|
|
|
708,799 |
|
Tennessee 0.1% |
|
|
|
|
|
|
|
|
|
|
Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A,
5.00%, 1/01/33 |
|
|
|
|
1,500 |
|
|
|
1,610,685 |
|
Texas 16.1% |
|
|
|
|
|
|
|
|
|
|
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, Series A, 5.00%, 1/01/33 |
|
|
|
|
1,260 |
|
|
|
1,334,012 |
|
City of Brownsville Texas Utilities System Revenue, Refunding RB, Series A: |
|
|
|
|
|
|
|
|
|
|
4.00%, 9/01/30 |
|
|
|
|
11,170 |
|
|
|
11,478,404 |
|
4.00%, 9/01/31 |
|
|
|
|
11,220 |
|
|
|
11,459,996 |
|
City of Houston Texas Airport System, Refunding RB, United Airlines, Inc. Terminal E Project, AMT: |
|
|
|
|
|
|
|
|
|
|
4.75%, 7/01/24 |
|
|
|
|
3,335 |
|
|
|
3,430,848 |
|
5.00%, 7/01/29 |
|
|
|
|
2,665 |
|
|
|
2,689,598 |
|
Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 8/15/33 |
|
|
|
|
1,650 |
|
|
|
1,915,881 |
|
Clifton Higher Education Finance Corp., Refunding RB, Uplift Education,
Series A: |
|
|
|
|
|
|
|
|
|
|
3.10%, 12/01/22 |
|
|
|
|
1,050 |
|
|
|
994,277 |
|
3.95%, 12/01/32 |
|
|
|
|
1,800 |
|
|
|
1,624,950 |
|
County of Harris Texas, Refunding RB, Toll Road Senior Lien, Series C, 4.00%, 8/15/33 |
|
|
|
|
12,325 |
|
|
|
12,502,727 |
|
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series
B: |
|
|
|
|
|
|
|
|
|
|
5.75%, 1/01/28 |
|
|
|
|
500 |
|
|
|
555,950 |
|
6.38%, 1/01/33 |
|
|
|
|
460 |
|
|
|
511,005 |
|
County of Harris Texas Cultural Education Facilities Finance Corp., Refunding RB, Series A: |
|
|
|
|
|
|
|
|
|
|
Brazos Presbyterian Homes, Inc. Project, 5.00%, 1/01/33 |
|
|
|
|
1,090 |
|
|
|
1,068,113 |
|
Memorial Hermann Health System, 4.00%, 12/01/31 |
|
|
|
|
20,000 |
|
|
|
20,282,600 |
|
YMCA of the Greater Houston Area, 5.00%, 6/01/28 |
|
|
|
|
1,500 |
|
|
|
1,621,050 |
|
YMCA of the Greater Houston Area, 5.00%, 6/01/33 |
|
|
|
|
3,000 |
|
|
|
3,159,570 |
|
See Notes to Financial
Statements.
34 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (continued) |
BlackRock Municipal
Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Texas (concluded) |
|
|
|
|
|
|
|
|
|
|
County of Matagorda Texas Navigation District No. 1, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Series A (AMBAC), 4.40%, 5/01/30 |
|
|
|
$ |
31,120 |
|
|
$ |
32,355,464 |
|
Series B (AMBAC), AMT, 4.55%, 5/01/30 |
|
|
|
|
10,000 |
|
|
|
10,285,600 |
|
Series B-2, 4.00%, 6/01/30 |
|
|
|
|
12,895 |
|
|
|
12,789,777 |
|
County of Midland Texas Fresh Water Supply District No. 1, RB, City of Midland Project, Series A: |
|
|
|
|
|
|
|
|
|
|
CAB, 0.00%, 9/15/31 (b) |
|
|
|
|
6,235 |
|
|
|
3,001,404 |
|
CAB, 0.00%, 9/15/32 (b) |
|
|
|
|
15,135 |
|
|
|
6,856,760 |
|
5.00%, 9/15/31 |
|
|
|
|
2,435 |
|
|
|
2,749,943 |
|
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A: |
|
|
|
|
|
|
|
|
|
|
4.00%, 11/15/31 |
|
|
|
|
5,500 |
|
|
|
5,540,315 |
|
4.00%, 11/15/32 |
|
|
|
|
15,420 |
|
|
|
15,443,438 |
|
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare, 5.00%, 8/15/33 |
|
|
|
|
5,000 |
|
|
|
5,523,750 |
|
Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, AMT, 5.00%, 11/01/28 |
|
|
|
|
5,750 |
|
|
|
6,028,760 |
|
Lower Colorado River Authority, Refunding RB, LCRA Transmission Services: |
|
|
|
|
|
|
|
|
|
|
4.00%, 5/15/31 |
|
|
|
|
9,970 |
|
|
|
10,123,040 |
|
4.00%, 5/15/32 |
|
|
|
|
10,635 |
|
|
|
10,733,799 |
|
New
Hope Cultural Education Facilities Corp., RB: |
|
|
|
|
|
|
|
|
|
|
5.00%, 4/01/29 |
|
|
|
|
1,290 |
|
|
|
1,402,217 |
|
5.00%, 4/01/29 |
|
|
|
|
725 |
|
|
|
780,803 |
|
Stephenville LLC Tarleton State University Project, Series A, 5.38%, 4/01/28 |
|
|
|
|
1,150 |
|
|
|
1,248,992 |
|
New
Hope Cultural Education Facilities Corp., Refunding RB, 1st Mortgage, Morningside Ministries Project, 6.25%, 1/01/33 |
|
|
|
|
1,600 |
|
|
|
1,709,888 |
|
Red
River Health Facilities Development Corp., RB, Wichita Falls Retirement Foundation Project: |
|
|
|
|
|
|
|
|
|
|
4.70%, 1/01/22 |
|
|
|
|
955 |
|
|
|
954,608 |
|
5.50%, 1/01/32 |
|
|
|
|
1,000 |
|
|
|
1,008,430 |
|
Texas Municipal Gas Acquisition & Supply Corp. III, RB: |
|
|
|
|
|
|
|
|
|
|
5.00%, 12/15/31 |
|
|
|
|
25,000 |
|
|
|
26,507,000 |
|
Natural Gas Utility Improvements, 5.00%, 12/15/30 |
|
|
|
|
18,000 |
|
|
|
19,255,860 |
|
|
|
|
|
|
|
|
|
|
248,928,829 |
|
US Virgin Islands 0.7% |
|
|
|
|
|
|
|
|
|
|
Virgin Islands Public Finance Authority, Refunding RB, Gross Receipts Taxes Loan Note, Series A, 5.00%,
10/01/32 |
|
|
|
|
10,000 |
|
|
|
10,726,300 |
|
Utah 0.8% |
|
|
|
|
|
|
|
|
|
|
County of Salt Lake Utah Housing Authority, RB, M/F Housing, Liberty Village Apartments Project (Freddie
Mac), 3.38%, 8/01/28 |
|
|
|
|
12,000 |
|
|
|
12,025,680 |
|
Vermont 0.2% |
|
|
|
|
|
|
|
|
|
|
Vermont EDA, Refunding, MRB, Wake Robin Corp. Project, 5.40%, 5/01/33 |
|
|
|
|
2,400 |
|
|
|
2,453,736 |
|
Virginia 4.9% |
|
|
|
|
|
|
|
|
|
|
County of Fairfax Virginia EDA, RB, Vinson Hall LLC, Series A: |
|
|
|
|
|
|
|
|
|
|
4.00%, 12/01/22 |
|
|
|
|
505 |
|
|
|
509,616 |
|
4.50%, 12/01/32 |
|
|
|
|
2,840 |
|
|
|
2,760,338 |
|
5.00%, 12/01/32 |
|
|
|
|
2,000 |
|
|
|
2,046,300 |
|
County of Fairfax Virginia IDA, Refunding RB, Inova Health System, Series D, 4.00%, 5/15/29 |
|
|
|
|
5,325 |
|
|
|
5,590,185 |
|
County of Hanover Virginia EDA, Refunding RB, Covenant Woods,
Series A: |
|
|
|
|
|
|
|
|
|
|
4.50%, 7/01/30 |
|
|
|
|
3,000 |
|
|
|
2,811,510 |
|
4.50%, 7/01/32 |
|
|
|
|
1,100 |
|
|
|
1,013,320 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
Virginia (concluded) |
|
|
|
|
|
|
|
|
|
|
County of Prince William Virginia IDA, Refunding RB, Novant Health Obligation Group, Series B, 4.00%, 11/01/33 |
|
|
|
$ |
15,445 |
|
|
$ |
15,595,743 |
|
Dulles Town Center Community Development Authority, Refunding, Special Assessment, Dulles Town Center Project, 4.25%, 3/01/26 |
|
|
|
|
500 |
|
|
|
483,970 |
|
Virginia HDA, RB, Remarketing: |
|
|
|
|
|
|
|
|
|
|
M/F Housing, Sub-Series C-2, 3.00%, 4/01/31 |
|
|
|
|
23,175 |
|
|
|
21,525,635 |
|
S/F Housing, Sub-Series C-3, 3.25%, 4/01/31 |
|
|
|
|
21,500 |
|
|
|
19,502,435 |
|
Virginia Small Business Financing Authority, RB, Senior Lien, Express Lanes LLC, AMT, 5.00%, 7/01/34 |
|
|
|
|
3,940 |
|
|
|
4,042,913 |
|
|
|
|
|
|
|
|
|
|
75,881,965 |
|
Washington 3.2% |
|
|
|
|
|
|
|
|
|
|
Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A: |
|
|
|
|
|
|
|
|
|
|
3.50%, 9/01/18 |
|
|
|
|
1,025 |
|
|
|
1,034,123 |
|
5.00%, 9/01/27 |
|
|
|
|
1,000 |
|
|
|
1,002,920 |
|
5.25%, 9/01/32 |
|
|
|
|
1,850 |
|
|
|
1,874,216 |
|
Port of Seattle Industrial Development Corp., Refunding RB, Special Facilities, Delta Airline, Inc. Project, AMT, 5.00%, 4/01/30 |
|
|
|
|
5,000 |
|
|
|
5,004,550 |
|
Spokane Public Facilities District, Refunding RB, Series B: |
|
|
|
|
|
|
|
|
|
|
4.50%, 12/01/30 |
|
|
|
|
5,370 |
|
|
|
5,612,670 |
|
5.00%, 12/01/32 |
|
|
|
|
5,895 |
|
|
|
6,379,923 |
|
5.00%, 9/01/33 |
|
|
|
|
4,665 |
|
|
|
5,034,235 |
|
State of Washington, COP, State and Local Agency Real and Personal Property, Series B: |
|
|
|
|
|
|
|
|
|
|
4.00%, 7/01/29 |
|
|
|
|
3,605 |
|
|
|
3,764,125 |
|
4.00%, 7/01/30 |
|
|
|
|
4,290 |
|
|
|
4,455,165 |
|
4.00%, 7/01/31 |
|
|
|
|
4,470 |
|
|
|
4,620,147 |
|
4.00%, 7/01/32 |
|
|
|
|
4,590 |
|
|
|
4,721,779 |
|
Washington State Housing Finance Commission, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Emerald Heights Project, 5.00%, 7/01/28 |
|
|
|
|
1,000 |
|
|
|
1,066,620 |
|
Emerald Heights Project, 5.00%, 7/01/33 |
|
|
|
|
1,100 |
|
|
|
1,162,337 |
|
Series 1N (Ginnie Mae) (Fannie Mae) (Freddie Mac), 3.50%, 12/01/33 |
|
|
|
|
4,035 |
|
|
|
4,029,230 |
|
|
|
|
|
|
|
|
|
|
49,762,040 |
|
Wisconsin 1.0% |
|
|
|
|
|
|
|
|
|
|
Public Finance Authority, Refunding RB, Wisconsin Airport Facilities, Senior Obligated Group, Series B, AMT, 5.25%, 7/01/28 |
|
|
|
|
2,250 |
|
|
|
2,378,903 |
|
Wisconsin Health & Educational Facilities Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Aspirus, Inc., Obligated Group, 5.00%, 8/15/28 |
|
|
|
|
3,510 |
|
|
|
3,906,279 |
|
Aspirus, Inc., Obligated Group, 5.00%, 8/15/29 |
|
|
|
|
3,685 |
|
|
|
4,065,034 |
|
Marquette University, 4.00%, 10/01/32 |
|
|
|
|
4,520 |
|
|
|
4,621,067 |
|
|
|
|
|
|
|
|
|
|
14,971,283 |
|
Wyoming 1.1% |
|
|
|
|
|
|
|
|
|
|
Wyoming Community Development Authority, Refunding RB, Series 2 & 3, 3.75%, 12/01/32 |
|
|
|
|
16,790 |
|
|
|
16,873,110 |
|
Total Municipal Bonds 134.1% |
|
|
|
|
|
|
|
|
2,079,606,449 |
|
|
Municipal Bonds Transferred to Tender Option Bond Trusts (e) |
Colorado 5.2% |
|
|
|
|
|
|
|
|
|
|
City & County of Denver Colorado, Refunding ARB, Department of Aviation, Series A, AMT: |
|
|
|
|
|
|
|
|
|
|
4.25%, 11/15/29 |
|
|
|
|
33,820 |
|
|
|
34,399,373 |
|
4.25%, 11/15/30 (f) |
|
|
|
|
35,210 |
|
|
|
35,813,186 |
|
4.25%, 11/15/31 |
|
|
|
|
8,085 |
|
|
|
8,223,505 |
|
4.25%, 11/15/32 |
|
|
|
|
2,230 |
|
|
|
2,268,202 |
|
|
|
|
|
|
|
|
|
|
80,704,266 |
|
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
35
|
| |
Schedule of Investments (continued) |
BlackRock Municipal
Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
Municipal Bonds Transferred to Tender
Option Bond Trusts (e) |
|
|
|
Par (000) |
|
Value |
Florida 6.1% |
|
|
|
|
|
|
|
|
|
|
County of Broward Florida, ARB, Series
Q-1: |
|
|
|
|
|
|
|
|
|
|
4.00%, 10/01/29 |
|
|
|
$ |
17,200 |
|
|
$ |
17,344,900 |
|
4.00%, 10/01/30 |
|
|
|
|
18,095 |
|
|
|
18,247,439 |
|
4.00%, 10/01/31 |
|
|
|
|
18,820 |
|
|
|
18,978,547 |
|
4.00%, 10/01/32 |
|
|
|
|
19,575 |
|
|
|
19,739,907 |
|
4.00%, 10/01/33 (f) |
|
|
|
|
20,355 |
|
|
|
20,526,478 |
|
|
|
|
|
|
|
|
|
|
94,837,271 |
|
Iowa 2.9% |
|
|
|
|
|
|
|
|
|
|
Iowa State Board of Regents, RB, University of Iowa Hospitals and Clinics: |
|
|
|
|
|
|
|
|
|
|
4.00%, 9/01/28 |
|
|
|
|
3,375 |
|
|
|
3,519,804 |
|
4.00%, 9/01/29 |
|
|
|
|
6,525 |
|
|
|
6,804,955 |
|
4.00%, 9/01/30 |
|
|
|
|
6,325 |
|
|
|
6,596,374 |
|
4.00%, 9/01/31 |
|
|
|
|
8,650 |
|
|
|
9,021,128 |
|
4.00%, 9/01/32 |
|
|
|
|
7,750 |
|
|
|
8,082,514 |
|
4.00%, 9/01/33 |
|
|
|
|
9,375 |
|
|
|
9,777,235 |
|
|
|
|
|
|
|
|
|
|
43,802,010 |
|
Texas 10.2% |
|
|
|
|
|
|
|
|
|
|
City of San Antonio Texas Public Facilities Corp., Refunding LRB, Convention Center Refinancing and Expansion Project: |
|
|
|
|
|
|
|
|
|
|
4.00%, 9/15/30 |
|
|
|
|
15,000 |
|
|
|
15,418,623 |
|
4.00%, 9/15/31 |
|
|
|
|
19,475 |
|
|
|
20,018,512 |
|
4.00%, 9/15/32 |
|
|
|
|
18,075 |
|
|
|
18,579,441 |
|
4.00%, 9/15/33 |
|
|
|
|
11,000 |
|
|
|
11,306,990 |
|
4.00%, 9/15/34 |
|
|
|
|
11,885 |
|
|
|
12,216,689 |
|
4.00%, 9/15/35 |
|
|
|
|
4,500 |
|
|
|
4,625,587 |
|
Municipal Bonds Transferred to Tender
Option Bond Trusts (e) |
|
|
|
Par (000) |
|
Value |
Texas (concluded) |
|
|
|
|
|
|
|
|
|
|
Dallas/Fort Worth International Airport, Refunding RB, AMT: |
|
|
|
|
|
|
|
|
|
|
Series E, 4.00%, 11/01/32 |
|
|
|
$ |
6,915 |
|
|
$ |
7,238,530 |
|
Series E, 4.13%, 11/01/35 |
|
|
|
|
10,435 |
|
|
|
10,923,219 |
|
Series F, 5.00%, 11/01/29 |
|
|
|
|
12,820 |
|
|
|
13,419,806 |
|
Series F, 5.00%, 11/01/30 |
|
|
|
|
15,565 |
|
|
|
16,293,235 |
|
Series F, 5.00%, 11/01/31 |
|
|
|
|
10,000 |
|
|
|
10,467,867 |
|
Series F, 5.00%, 11/01/32 (f) |
|
|
|
|
17,170 |
|
|
|
17,973,328 |
|
|
|
|
|
|
|
|
|
|
158,481,827 |
|
Total Municipal Bonds Transferred to Tender Option Bond Trusts 24.4% |
|
|
|
|
|
|
|
|
377,825,374 |
|
Total Long-Term Investments (Cost $2,487,344,304) 158.5%
|
|
|
|
|
|
2,457,431,823 |
|
|
Short-Term Securities |
|
|
|
|
Shares |
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.03% (g)(h) |
|
|
|
|
5,417,254 |
|
|
|
5,417,254 |
|
Total Short-Term Securities (Cost $5,417,254) 0.4% |
|
|
|
|
|
|
|
|
5,417,254 |
|
Total Investments
(Cost $2,492,761,558) 158.9% |
|
2,462,849,077 |
|
Other Assets Less Liabilities 1.4%
|
|
|
|
|
21,697,524 |
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (11.9%) |
|
|
|
|
|
|
|
|
(184,170,986 |
) |
RVMTP Shares, at Liquidation Value (48.4%) |
|
|
|
|
|
|
|
|
(750,000,000 |
) |
Net Assets Applicable to Common Shares 100.0% |
|
|
|
|
|
|
|
$ |
1,550,375,615 |
|
Notes to Schedule of Investments
(a) |
|
|
|
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in
transactions exempt from registration to qualified institutional investors. |
(b) |
|
|
|
Zero-coupon bond. |
(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) |
|
|
|
Variable rate security. Rate shown is as of report date. |
(e) |
|
|
|
Represent bonds transferred to a TOB. In exchange for which the Trust received cash and residual interest certificates. These bonds serve as
collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to
TOBs. |
(f) |
|
|
|
All
or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a
shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a
shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from November 1,
2018 to November 15, 2020 is $128,606,839. |
(g) |
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2014, for purposes of Section 2(a)(3) of the 1940
Act, were as follows: |
Affiliate |
|
|
|
Shares Held at July 31,
2013 |
|
Net Activity |
|
Shares Held at July 31,
2014 |
|
Income |
FFI Institutional Tax-Exempt Fund |
|
|
|
55,145,313 |
|
(49,728,059) |
|
5,417,254 |
|
$2,893 |
(h) |
|
|
|
Represents the current yield as of report date. |
|
|
|
|
Financial futures contracts outstanding as of July 31, 2014 were as follows: |
Contracts Sold |
|
|
|
Issue |
|
Exchange |
|
Expiration |
|
Notional Value |
|
Unrealized Appreciation |
(1,280) |
|
|
|
10-Year U.S. Treasury Note |
|
Chicago Board of Trade |
|
September 2014 |
|
$159,500,000 |
|
$27,566 |
(325) |
|
|
|
U.S. Treasury Long Bond |
|
Chicago Board of Trade |
|
September 2014 |
|
$ 44,657,031 |
|
19,939 |
Total
|
|
|
|
|
|
|
|
|
|
|
|
$47,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial
Statements.
36 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (concluded) |
BlackRock Municipal
Target Term Trust (BTT)
|
|
|
|
|
Fair Value Measurements Various inputs are used in determining the fair value of investments and derivative financial
instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement
purposes as follows: |
|
|
|
|
Level 1 unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to
access |
|
|
|
|
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 Trusts own assumptions used in determining the fair value of investments and derivative financial instruments) |
|
|
|
|
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair
value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value
hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is
significant to the fair value measurement in its entirety. |
|
|
|
|
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In
accordance with the Trusts policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of
the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the
pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing
in those securities. For information about the Trusts policy regarding valuation of investments and derivative financial instruments, please
refer to Note 2 of the Notes to Financial Statements. |
|
|
|
|
The following tables summarize the Trusts investments and derivative financial instruments categorized in the disclosure
hierarchy as of July 31, 2014: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments1 |
|
|
|
|
|
|
|
$ |
2,457,431,823 |
|
|
|
|
|
|
$ |
2,457,431,823 |
|
Short-Term Securities |
|
|
|
$ |
5,417,254 |
|
|
|
|
|
|
|
|
|
|
|
5,417,254 |
|
Total
|
|
|
|
$ |
5,417,254 |
|
|
$ |
2,457,431,823 |
|
|
|
|
|
|
$ |
2,462,849,077 |
|
|
1 |
See above Schedule of Investments for values in each state or political subdivision. |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Derivative Financial Instruments2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
|
|
$ |
47,505 |
|
|
|
|
|
|
|
|
|
|
$ |
47,505 |
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.
|
|
|
|
|
The
Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of July 31,
2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash pledged for financial futures contracts |
|
|
|
$ |
2,377,002 |
|
|
|
|
|
|
|
|
|
|
$ |
2,377,002 |
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOB trust certificates |
|
|
|
|
|
|
|
$ |
(184,119,974 |
) |
|
|
|
|
|
|
(184,119,974 |
) |
RVMTP Shares |
|
|
|
|
|
|
|
|
(750,000,000 |
) |
|
|
|
|
|
|
(750,000,000 |
) |
Total
|
|
|
|
$ |
2,377,002 |
|
|
$ |
(934,119,974 |
) |
|
|
|
|
|
$ |
(931,742,972 |
) |
|
|
|
|
There were no transfers between levels during the year ended July 31, 2014. |
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
37
|
| |
Schedule of Investments July 31, 2014 |
BlackRock New Jersey
Municipal Income Trust (BNJ) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New Jersey 136.5% |
Corporate 10.5% |
|
|
|
|
|
|
|
|
|
|
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (a)(b) |
|
|
|
$ |
1,790 |
|
|
$ |
91,290 |
|
County of Salem New Jersey Pollution Control Financing Authority, Refunding RB, Series A: |
|
|
|
|
|
|
|
|
|
|
Atlantic City Electric, 4.88%, 6/01/29 |
|
|
|
|
2,400 |
|
|
|
2,551,488 |
|
Chambers Project, AMT, 5.00%, 12/01/23 |
|
|
|
|
1,275 |
|
|
|
1,410,698 |
|
New
Jersey EDA, RB, Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30 |
|
|
|
|
5,160 |
|
|
|
5,481,417 |
|
New
Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, AMT: |
|
|
|
|
|
|
|
|
|
|
Series A, 5.70%, 10/01/39 |
|
|
|
|
1,500 |
|
|
|
1,643,670 |
|
Series B, 5.60%, 11/01/34 |
|
|
|
|
1,275 |
|
|
|
1,401,327 |
|
|
|
|
|
|
|
|
|
|
12,579,890 |
|
County/City/Special District/School District 15.6% |
|
|
|
|
|
|
|
|
|
|
City of Margate New Jersey, GO, Refunding, Improvement, 5.00%, 1/15/28 |
|
|
|
|
1,085 |
|
|
|
1,184,842 |
|
City of Perth Amboy New Jersey, GO, CAB, Refunding (AGM): |
|
|
|
|
175 |
|
|
|
181,426 |
|
5.00%, 7/01/35 |
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/34 |
|
|
|
|
1,075 |
|
|
|
1,117,495 |
|
County of Essex New Jersey Improvement Authority, Refunding RB, Project Consolidation (NPFGC): |
|
|
|
|
|
|
|
|
|
|
5.50%, 10/01/28 |
|
|
|
|
1,440 |
|
|
|
1,828,512 |
|
5.50%, 10/01/29 |
|
|
|
|
2,630 |
|
|
|
3,344,939 |
|
County of Hudson New Jersey Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC): |
|
|
|
|
|
|
|
|
|
|
5.25%, 1/01/39 |
|
|
|
|
2,000 |
|
|
|
2,140,320 |
|
5.38%, 1/01/44 |
|
|
|
|
2,400 |
|
|
|
2,571,432 |
|
County of Union New Jersey Improvement Authority, LRB, Guaranteed Lease, Family Court Building Project, 5.00%, 5/01/42 |
|
|
|
|
890 |
|
|
|
986,894 |
|
County of Union New Jersey Utilities Authority, Refunding RB, Solid Waste System, County Deficiency Agreement, Series A, 5.00%,
6/15/41 |
|
|
|
|
2,185 |
|
|
|
2,378,001 |
|
New
Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28 |
|
|
|
|
2,500 |
|
|
|
2,923,550 |
|
|
|
|
|
|
|
|
|
|
18,657,411 |
|
Education 28.5% |
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA, RB: |
|
|
|
|
|
|
|
|
|
|
(AGC), School Facilities Construction, 5.50%, 12/15/18 (c) |
|
|
|
|
1,935 |
|
|
|
2,312,112 |
|
(AGC), School Facilities Construction, 5.50%, 12/15/34 |
|
|
|
|
1,065 |
|
|
|
1,204,334 |
|
MSU Student Housing Project Provide, 5.88%, 6/01/42 |
|
|
|
|
1,500 |
|
|
|
1,636,800 |
|
The Team Academy Charter School Project, 6.00%, 10/01/33 |
|
|
|
|
1,490 |
|
|
|
1,652,708 |
|
New
Jersey EDA, Refunding RB, School Facilities Construction, 5.00%, 6/15/33 |
|
|
|
|
1,875 |
|
|
|
2,026,612 |
|
New
Jersey Educational Facilities Authority, RB: |
|
|
|
|
|
|
|
|
|
|
Higher Educational Capital Improvement Fund, Series A, 5.00%, 9/01/32 |
|
|
|
|
2,070 |
|
|
|
2,281,864 |
|
Montclair State University, Series J, 5.25%, 7/01/38 |
|
|
|
|
580 |
|
|
|
643,156 |
|
New
Jersey Educational Facilities Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
College of New Jersey, Series D (AGM), 5.00%, 7/01/35 |
|
|
|
|
3,230 |
|
|
|
3,558,620 |
|
Georgian Court University, Series D, 5.00%, 7/01/33 |
|
|
|
|
250 |
|
|
|
255,843 |
|
Kean University, Series A, 5.50%, 9/01/36 |
|
|
|
|
2,060 |
|
|
|
2,336,988 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New Jersey (continued) |
Education (concluded): |
|
|
|
|
|
|
|
|
|
|
New
Jersey Educational Facilities Authority, Refunding RB (concluded): |
|
|
|
|
|
|
|
|
|
|
Montclaire State University, Series A, 5.00%, 7/01/44 |
|
|
|
$ |
4,570 |
|
|
$ |
5,067,262 |
|
New Jersey Institute of Technology, Series H, 5.00%, 7/01/31 |
|
|
|
|
660 |
|
|
|
723,459 |
|
Ramapo College, Series B, 5.00%, 7/01/42 |
|
|
|
|
265 |
|
|
|
285,617 |
|
University of Medicine & Dentistry, Series B, 7.50%, 6/01/19 (c) |
|
|
|
|
1,450 |
|
|
|
1,874,125 |
|
New
Jersey Higher Education Student Assistance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Series 1, AMT, 5.75%, 12/01/29 |
|
|
|
|
2,055 |
|
|
|
2,292,558 |
|
Series 1A, 5.00%, 12/01/25 |
|
|
|
|
445 |
|
|
|
470,859 |
|
Series 1A, 5.00%, 12/01/26 |
|
|
|
|
290 |
|
|
|
306,440 |
|
Series 1A, 5.25%, 12/01/32 |
|
|
|
|
500 |
|
|
|
539,180 |
|
New
Jersey Institute of Technology, RB, Series A, 5.00%, 7/01/42 |
|
|
|
|
970 |
|
|
|
1,044,787 |
|
Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43 |
|
|
|
|
3,145 |
|
|
|
3,490,258 |
|
|
|
|
|
|
|
|
|
|
34,003,582 |
|
Health 13.7% |
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
1st Mortgage, Winchester, Series A, 5.75%, 11/01/24 |
|
|
|
|
4,050 |
|
|
|
4,061,988 |
|
Seabrook Village, Inc. Facility, 5.25%, 11/15/26 |
|
|
|
|
1,790 |
|
|
|
1,835,609 |
|
New
Jersey Health Care Facilities Financing Authority, RB: |
|
|
|
|
|
|
|
|
|
|
Meridian Health System Obligated Group, Series I (AGC), 5.00%, 7/01/38 |
|
|
|
|
720 |
|
|
|
755,424 |
|
Robert Wood Johnson University Hospital, Series A, 5.50%, 7/01/43 |
|
|
|
|
750 |
|
|
|
832,755 |
|
Virtua Health, Series A (AGC), 5.50%, 7/01/38 |
|
|
|
|
1,250 |
|
|
|
1,347,350 |
|
New
Jersey Health Care Facilities Financing Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
AHS Hospital Corp., 6.00%, 7/01/37 |
|
|
|
|
900 |
|
|
|
1,042,515 |
|
AHS Hospital Corp., 6.00%, 7/01/41 |
|
|
|
|
1,045 |
|
|
|
1,209,786 |
|
Meridian Health System Obligated Group, 5.00%, 7/01/26 |
|
|
|
|
970 |
|
|
|
1,076,205 |
|
St. Barnabas Health Care System, Series A, 5.00%, 7/01/29 |
|
|
|
|
1,745 |
|
|
|
1,794,890 |
|
St. Barnabas Health Care System, Series A, 5.63%, 7/01/32 |
|
|
|
|
580 |
|
|
|
634,972 |
|
St. Barnabas Health Care System, Series A, 5.63%, 7/01/37 |
|
|
|
|
1,605 |
|
|
|
1,742,998 |
|
|
|
|
|
|
|
|
|
|
16,334,492 |
|
Housing 9.7% |
|
|
|
|
|
|
|
|
|
|
County of Middlesex New Jersey Improvement Authority, RB, AMT (Fannie Mae): |
|
|
|
|
|
|
|
|
|
|
Administration Building Residential Project, 5.35%, 7/01/34 |
|
|
|
|
1,400 |
|
|
|
1,400,490 |
|
New Brunswick Apartments Rental Housing, 5.30%, 8/01/35 |
|
|
|
|
4,315 |
|
|
|
4,318,409 |
|
New
Jersey Housing & Mortgage Finance Agency, RB: |
|
|
|
|
|
|
|
|
|
|
M/F Housing, Series A, 4.75%, 11/01/29 |
|
|
|
|
1,185 |
|
|
|
1,240,932 |
|
S/F Housing, Series AA, 6.38%, 10/01/28 |
|
|
|
|
645 |
|
|
|
671,897 |
|
S/F Housing, Series AA, 6.50%, 10/01/38 |
|
|
|
|
685 |
|
|
|
705,495 |
|
S/F Housing, Series CC, 5.00%, 10/01/34 |
|
|
|
|
995 |
|
|
|
1,044,262 |
|
Newark Housing Authority, RB, M/F Housing, Series A, 5.00%, 12/01/30 |
|
|
|
|
2,000 |
|
|
|
2,223,540 |
|
|
|
|
|
|
|
|
|
|
11,605,025 |
|
State 18.5% |
|
|
|
|
|
|
|
|
|
|
Garden State Preservation Trust, RB, CAB, Series B (AGM), 0.00%, 11/01/26 (d) |
|
|
|
|
6,000 |
|
|
|
4,131,840 |
|
See Notes to Financial
Statements.
38 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (continued) |
BlackRock New Jersey
Municipal Income Trust (BNJ) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New Jersey (continued) |
State (concluded) |
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA, RB: |
|
|
|
|
|
|
|
|
|
|
Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31 |
|
|
|
$ |
5,000 |
|
|
$ |
5,813,050 |
|
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25 |
|
|
|
|
1,365 |
|
|
|
1,625,974 |
|
School Facilities Construction, Series CC-2, 5.00%, 12/15/31 |
|
|
|
|
1,525 |
|
|
|
1,654,686 |
|
New
Jersey EDA, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Lions Gate Project, 5.25%, 1/01/44 |
|
|
|
|
430 |
|
|
|
430,138 |
|
Cigarette Tax, 5.00%, 6/15/26 |
|
|
|
|
810 |
|
|
|
891,348 |
|
Cigarette Tax, 5.00%, 6/15/29 |
|
|
|
|
1,000 |
|
|
|
1,081,650 |
|
Cigarette Tax (AGM), 5.00%, 6/15/22 |
|
|
|
|
2,940 |
|
|
|
3,368,241 |
|
New
Jersey Health Care Facilities Financing Authority, RB, Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38 |
|
|
|
|
2,350 |
|
|
|
2,473,563 |
|
State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%, 6/15/28 |
|
|
|
|
600 |
|
|
|
657,330 |
|
|
|
|
|
|
|
|
|
|
22,127,820 |
|
Transportation 39.3% |
|
|
|
|
|
|
|
|
|
|
Delaware River Port Authority of Pennsylvania & New Jersey, RB: |
|
|
|
|
|
|
|
|
|
|
5.00%, 1/01/40 |
|
|
|
|
1,380 |
|
|
|
1,504,310 |
|
Series D, 5.00%, 1/01/40 |
|
|
|
|
800 |
|
|
|
849,792 |
|
New
Jersey EDA, RB, Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43 |
|
|
|
|
4,500 |
|
|
|
4,773,825 |
|
New
Jersey State Turnpike Authority, RB: |
|
|
|
|
|
|
|
|
|
|
Series A, 5.00%, 1/01/38 |
|
|
|
|
4,000 |
|
|
|
4,342,480 |
|
Series E, 5.25%, 1/01/40 |
|
|
|
|
1,970 |
|
|
|
2,182,740 |
|
New
Jersey Transportation Trust Fund Authority, RB, Transportation System: |
|
|
|
|
|
|
|
|
|
|
CAB, Series C (AGM), 0.00%, 12/15/32 (d) |
|
|
|
|
4,000 |
|
|
|
1,688,440 |
|
6.00%, 12/15/38 |
|
|
|
|
945 |
|
|
|
1,100,991 |
|
Series A, 6.00%, 6/15/35 |
|
|
|
|
4,135 |
|
|
|
4,949,761 |
|
Series A, 5.88%, 12/15/38 |
|
|
|
|
1,770 |
|
|
|
2,056,988 |
|
Series A, 5.50%, 6/15/41 |
|
|
|
|
2,000 |
|
|
|
2,215,320 |
|
Series A (AGC), 5.50%, 12/15/38 |
|
|
|
|
1,000 |
|
|
|
1,144,710 |
|
Series AA, 5.25%, 6/15/33 |
|
|
|
|
3,110 |
|
|
|
3,451,758 |
|
Series AA, 5.50%, 6/15/39 |
|
|
|
|
2,260 |
|
|
|
2,498,543 |
|
Port Authority of New York & New Jersey, RB, JFK International Air Terminal, Special Project: |
|
|
|
|
|
|
|
|
|
|
Series 6, AMT (NPFGC), 5.75%, 12/01/22 |
|
|
|
|
6,000 |
|
|
|
6,036,060 |
|
Series 8, 6.00%, 12/01/42 |
|
|
|
|
1,430 |
|
|
|
1,640,610 |
|
Port Authority of New York & New Jersey, Refunding ARB, Consolidated: |
|
|
|
|
|
|
|
|
|
|
166th Series, 5.25%, 7/15/36 |
|
|
|
|
4,000 |
|
|
|
4,492,120 |
|
152nd Series, AMT, 5.75%, 11/01/30 |
|
|
|
|
1,750 |
|
|
|
1,980,720 |
|
|
|
|
|
|
|
|
|
|
46,909,168 |
|
Utility 0.7% |
|
|
|
|
|
|
|
|
|
|
Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 0.00%,
9/01/33 (d) |
|
|
|
|
2,000 |
|
|
|
878,200 |
|
Total Municipal Bonds 136.5% |
|
|
|
|
|
|
|
|
163,095,588 |
|
Municipal Bonds Transferred to
Tender Option Bond Trusts (e) |
|
|
|
Par (000) |
|
Value |
New Jersey 25.4% |
County/City/Special District/School District 5.1% |
|
|
|
|
|
|
|
|
|
|
County of Union New Jersey Utilities Authority, Refunding LRB, Resource Recovery Facility, Covanta Union,
Inc., Series A, AMT, 5.25%, 12/01/31 |
|
|
|
$ |
5,710 |
|
|
$ |
6,166,971 |
|
Education 1.4% |
|
|
|
|
|
|
|
|
|
|
Rutgers The State University of New Jersey, RB, Series F, 5.00%, 5/01/39 |
|
|
|
|
1,499 |
|
|
|
1,665,380 |
|
State 5.5% |
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA, RB, School Facilities Construction (AGC): |
|
|
|
|
|
|
|
|
|
|
6.00%, 12/15/18 (c) |
|
|
|
|
987 |
|
|
|
1,162,450 |
|
6.00%, 12/15/34 |
|
|
|
|
2,013 |
|
|
|
2,370,485 |
|
New
Jersey EDA, Refunding RB, 5.00%, 3/01/29 (f) |
|
|
|
|
2,787 |
|
|
|
3,049,410 |
|
|
|
|
|
|
|
|
|
|
6,582,345 |
|
Transportation 13.4% |
|
|
|
|
|
|
|
|
|
|
New
Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/38 (f) |
|
|
|
|
4,700 |
|
|
|
5,102,414 |
|
New
Jersey Transportation Trust Fund Authority, RB, Transportation System: |
|
|
|
|
|
|
|
|
|
|
Series A (AMBAC), 5.00%, 12/15/32 |
|
|
|
|
2,000 |
|
|
|
2,201,220 |
|
Series B, 5.25%, 6/15/36 (f) |
|
|
|
|
2,501 |
|
|
|
2,719,477 |
|
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/41 |
|
|
|
|
3,495 |
|
|
|
3,766,631 |
|
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.25%, 11/01/35 |
|
|
|
|
2,039 |
|
|
|
2,226,419 |
|
|
|
|
|
|
|
|
|
|
16,016,161 |
|
Total Municipal Bonds Transferred to
Tender Option Bond Trusts 25.4%
|
|
|
|
|
|
30,430,857 |
|
Total Long-Term Investments (Cost $181,869,860) 161.9% |
|
|
|
|
|
|
|
|
193,526,445 |
|
|
Short-Term Securities |
|
|
|
|
Shares |
|
|
|
|
|
BIF New Jersey Municipal Money Fund, 0.00% (g)(h) |
|
|
|
|
1,307,069 |
|
|
$ |
1,307,069 |
|
Total Short-Term Securities (Cost $1,307,069) 1.1% |
|
|
|
|
|
|
|
|
1,307,069 |
|
Total Investments (Cost $183,176,929) 163.0% |
|
|
|
|
|
|
|
|
194,833,514 |
|
Other Assets Less Liabilities 1.0%
|
|
|
|
|
|
1,080,339 |
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (14.5%) |
|
|
|
|
|
|
|
|
(17,305,052 |
) |
VMTP Shares, at Liquidation Value (49.5%) |
|
|
|
|
|
|
|
|
(59,100,000 |
) |
Net Assets Applicable to Common Shares 100.0% |
|
|
|
|
|
|
|
$ |
119,508,801 |
|
Notes to Schedule of Investments
(a) |
|
|
|
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments. |
(b) |
|
|
|
Non-income producing security. |
(c) |
|
|
|
U.S.
government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated,
typically at a premium to par. |
(d) |
|
|
|
Zero-coupon bond. |
(e) |
|
|
|
Represent bonds transferred to a TOB. In exchange for which the Trust received cash and residual interest certificates. These bonds serve as
collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to
TOBs. |
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
39
|
| |
Schedule of Investments (concluded) |
BlackRock New Jersey
Municipal Income Trust (BNJ)
|
(f) |
|
|
|
All
or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a
shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a
shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from June 15, 2019
to September 1, 2020 is $7,517,578. |
(g) |
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2014, for purposes of Section 2(a)(3) of the 1940
Act, were as follows: |
Affiliate |
|
|
|
Shares Held at July 31,
2013 |
|
Net Activity |
|
Shares Held at July 31,
2014 |
|
Income |
BIF New Jersey Municipal Money Fund |
|
|
|
4,818,896 |
|
(3,511,827) |
|
1,307,069 |
|
$13 |
(h) |
|
|
|
Represents the current yield as of report date. |
|
|
|
|
Financial futures contracts outstanding as of July 31, 2014 were as follows: |
Contracts Sold |
|
|
|
Issue |
|
Exchange |
|
Expiration |
|
Notional Value |
|
Unrealized Appreciation |
(72) |
|
|
|
10-Year U.S. Treasury Note |
|
Chicago Board of Trade |
|
September 2014 |
|
$8,971,875 |
|
$30,837 |
|
|
|
|
For Trust compliance purposes, the Trusts sector classifications refer to any one or more of the sector sub-classifications
used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not
apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
|
|
|
|
Fair Value Measurements Various inputs are used in determining the fair value of investments and derivative financial
instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement
purposes as follows: |
|
|
|
|
Level 1 unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the
ability to access |
|
|
|
|
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 Trusts own assumptions used in determining the fair value of investments and derivative financial
instruments) |
|
|
|
|
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair
value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value
hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is
significant to the fair value measurement in its entirety. |
|
|
|
|
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In
accordance with the Trusts policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of
the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the
pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing
in those securities. For information about the Trusts policy regarding valuation of investments and derivative financial instruments, please
refer to Note 2 of the Notes to Financial Statements. |
|
|
|
|
The following tables summarize the Trusts investments and derivative financial instruments categorized in the disclosure
hierarchy as of July 31, 2014: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments1 |
|
|
|
|
|
|
|
$ |
193,526,445 |
|
|
|
|
|
|
$ |
193,526,445 |
|
Short-Term Securities |
|
|
|
$ |
1,307,069 |
|
|
|
|
|
|
|
|
|
|
|
1,307,069 |
|
Total
|
|
|
|
$ |
1,307,069 |
|
|
$ |
193,526,445 |
|
|
|
|
|
|
$ |
194,833,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
See above Schedule of Investments for values in each sector. |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Derivative Financial Instruments2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
|
|
$ |
30,837 |
|
|
|
|
|
|
|
|
|
|
$ |
30,837 |
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.
|
|
|
|
|
The
Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of July 31,
2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash pledged for financial futures contracts |
|
|
|
$ |
99,000 |
|
|
|
|
|
|
|
|
|
|
$ |
99,000 |
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOB trust certificates |
|
|
|
|
|
|
|
$ |
(17,301,282 |
) |
|
|
|
|
|
|
(17,301,282 |
) |
VMTP Shares |
|
|
|
|
|
|
|
|
(59,100,000 |
) |
|
|
|
|
|
|
(59,100,000 |
) |
Total
|
|
|
|
$ |
99,000 |
|
|
$ |
(76,401,282 |
) |
|
|
|
|
|
$ |
(76,302,282 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no transfers between levels during the year ended July 31, 2014. |
See Notes to Financial
Statements.
40 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments July 31, 2014 |
BlackRock New York
Municipal Income Trust (BNY) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New York 134.8% |
Corporate 14.5% |
|
|
|
|
|
|
|
|
|
|
City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport, AMT (a): |
|
|
|
|
|
|
|
|
|
|
7.63%, 8/01/25 |
|
|
|
$ |
3,200 |
|
|
$ |
3,513,088 |
|
7.75%, 8/01/31 |
|
|
|
|
4,000 |
|
|
|
4,415,560 |
|
City of New York New York Industrial Development Agency, Refunding RB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%,
7/01/28 |
|
|
|
|
795 |
|
|
|
848,186 |
|
County of Chautauqua New York Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42 |
|
|
|
|
1,000 |
|
|
|
1,085,080 |
|
County of Essex New York Industrial Development Agency, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32 |
|
|
|
|
550 |
|
|
|
615,626 |
|
County of Suffolk New York Industrial Development Agency, RB, KeySpan Generation LLC, Port Jefferson, AMT, 5.25%, 6/01/27 |
|
|
|
|
6,000 |
|
|
|
6,030,240 |
|
New
York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.25%, 10/01/35 |
|
|
|
|
5,350 |
|
|
|
6,181,550 |
|
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%,
11/01/42 |
|
|
|
|
1,500 |
|
|
|
1,517,055 |
|
Port Authority of New York & New Jersey, ARB, Continental Airlines, Inc. & Eastern Air Lines, Inc. Project, LaGuardia, AMT, 9.13%,
12/01/15 |
|
|
|
|
3,285 |
|
|
|
3,351,850 |
|
|
|
|
|
|
|
|
|
|
27,558,235 |
|
County/City/Special District/School District 32.5% |
|
|
|
|
|
|
|
|
|
|
City of New York New York, GO: |
|
|
|
|
|
|
|
|
|
|
Fiscal 2014, Sub-Series D-1, 5.00%, 8/01/31 |
|
|
|
|
690 |
|
|
|
778,403 |
|
Series A-1, 5.00%, 8/01/35 |
|
|
|
|
1,000 |
|
|
|
1,103,500 |
|
Series A-1, Fiscal 2009, 4.75%, 8/15/25 |
|
|
|
|
750 |
|
|
|
841,890 |
|
Series D, 5.38%, 6/01/32 |
|
|
|
|
25 |
|
|
|
25,101 |
|
Sub-Series G-1, 5.00%, 4/01/28 |
|
|
|
|
630 |
|
|
|
720,336 |
|
Sub-Series G-1, 5.00%, 4/01/29 |
|
|
|
|
750 |
|
|
|
852,570 |
|
Sub-Series G-1, 6.25%, 12/15/31 |
|
|
|
|
500 |
|
|
|
589,805 |
|
Sub-Series I-1, 5.38%, 4/01/36 |
|
|
|
|
1,750 |
|
|
|
1,998,465 |
|
City of New York New York, GO, Refunding: |
|
|
|
|
|
|
|
|
|
|
Series E, 5.50%, 8/01/25 |
|
|
|
|
1,280 |
|
|
|
1,570,509 |
|
Series E, 5.00%, 8/01/30 |
|
|
|
|
1,000 |
|
|
|
1,131,440 |
|
Series I, 5.00%, 8/01/30 |
|
|
|
|
1,000 |
|
|
|
1,134,470 |
|
City of New York New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC): |
|
|
|
|
|
|
|
|
|
|
5.00%, 11/15/35 |
|
|
|
|
250 |
|
|
|
260,330 |
|
5.00%, 11/15/44 |
|
|
|
|
6,495 |
|
|
|
6,743,239 |
|
4.75%, 11/15/45 |
|
|
|
|
500 |
|
|
|
504,450 |
|
City of New York New York Housing Development Corp., RB, Fund Grant Program, New York City Housing Authority Program, Series B1: |
|
|
|
|
|
|
|
|
|
|
5.25%, 7/01/32 |
|
|
|
|
1,140 |
|
|
|
1,287,915 |
|
5.00%, 7/01/33 |
|
|
|
|
500 |
|
|
|
548,970 |
|
City of New York New York Industrial Development Agency, RB, PILOT: |
|
|
|
|
|
|
|
|
|
|
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 3/01/42 (b) |
|
|
|
|
1,960 |
|
|
|
498,840 |
|
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 3/01/45 (b) |
|
|
|
|
1,500 |
|
|
|
319,365 |
|
Queens Baseball Stadium (AGC), 6.38%, 1/01/39 |
|
|
|
|
150 |
|
|
|
174,090 |
|
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39 |
|
|
|
|
3,000 |
|
|
|
3,046,230 |
|
Yankee Stadium Project (NPFGC), 4.75%, 3/01/46 |
|
|
|
|
480 |
|
|
|
485,861 |
|
City of New York New York Industrial Development Agency, Refunding ARB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%,
7/01/22 |
|
|
|
|
650 |
|
|
|
715,949 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New York (continued) |
County/City/Special District/School District (concluded) |
City of New York New York Transitional Finance Authority, RB, Future Tax Secured, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42 |
|
|
|
$ |
2,500 |
|
|
$ |
2,726,550 |
|
Hudson Yards Infrastructure Corp., RB, Series A: |
|
|
|
|
|
|
|
|
|
|
Senior, Fiscal 2012, 5.75%, 2/15/47 |
|
|
|
|
200 |
|
|
|
227,526 |
|
5.00%, 2/15/47 |
|
|
|
|
5,485 |
|
|
|
5,679,663 |
|
(AGC), 5.00%, 2/15/47 |
|
|
|
|
1,000 |
|
|
|
1,036,720 |
|
(AGM), 5.00%, 2/15/47 |
|
|
|
|
1,000 |
|
|
|
1,036,720 |
|
(NPFGC), 4.50%, 2/15/47 |
|
|
|
|
4,500 |
|
|
|
4,570,515 |
|
Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.00%, 11/15/34 |
|
|
|
|
800 |
|
|
|
864,360 |
|
New
York Liberty Development Corp., Refunding RB: |
|
|
|
|
|
|
|
|
|
|
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 2, 5.63%, 7/15/47 |
|
|
|
|
2,000 |
|
|
|
2,190,660 |
|
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49 |
|
|
|
|
1,200 |
|
|
|
1,321,140 |
|
4 World Trade Center Project, 5.00%, 11/15/31 |
|
|
|
|
860 |
|
|
|
938,269 |
|
4 World Trade Center Project, 5.00%, 11/15/44 |
|
|
|
|
7,655 |
|
|
|
8,219,480 |
|
4 World Trade Center Project, 5.75%, 11/15/51 |
|
|
|
|
1,340 |
|
|
|
1,502,193 |
|
7 World Trade Center Project, Class 1, 4.00%, 9/15/35 |
|
|
|
|
1,935 |
|
|
|
2,005,743 |
|
7 World Trade Center Project, Class 2, 5.00%, 9/15/43 |
|
|
|
|
1,670 |
|
|
|
1,799,174 |
|
7 World Trade Center Project, Class 3, 5.00%, 3/15/44 |
|
|
|
|
2,070 |
|
|
|
2,172,837 |
|
|
|
|
|
|
|
|
|
|
61,623,278 |
|
Education 29.6% |
|
|
|
|
|
|
|
|
|
|
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A (c)(d): |
|
|
|
|
|
|
|
|
|
|
7.00%, 5/01/25 |
|
|
|
|
910 |
|
|
|
136,555 |
|
7.00%, 5/01/35 |
|
|
|
|
590 |
|
|
|
88,535 |
|
Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%,
10/01/40 |
|
|
|
|
1,100 |
|
|
|
1,147,883 |
|
Build NYC Resource Corp., RB, Series A: |
|
|
|
|
|
|
|
|
|
|
Bronx Charter School for Excellence Project, 5.50%, 4/01/43 |
|
|
|
|
900 |
|
|
|
930,627 |
|
Bronx Charter School for International Cultures & The Arts Project, 5.00%, 4/15/33 |
|
|
|
|
900 |
|
|
|
819,342 |
|
City of New York New York Trust for Cultural Resources, RB, Juilliard School, Series A, 5.00%, 1/01/39 |
|
|
|
|
750 |
|
|
|
837,367 |
|
City of New York New York Trust for Cultural Resources, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
American Museum of National History, Series A (NPFGC), 5.00%, 7/01/37 |
|
|
|
|
225 |
|
|
|
254,477 |
|
Carnegie Hall, Series A, 4.75%, 12/01/39 |
|
|
|
|
2,000 |
|
|
|
2,078,120 |
|
Museum of Modern Art, Series 1A, 5.00%, 4/01/31 |
|
|
|
|
1,000 |
|
|
|
1,119,870 |
|
City of Troy New York Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project, Series A, 5.13%, 9/01/40 |
|
|
|
|
3,135 |
|
|
|
3,362,131 |
|
City of Yonkers New York Industrial Development Agency, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41 |
|
|
|
|
625 |
|
|
|
684,000 |
|
County of Cattaraugus New York, RB, 5.00%, 5/01/34 |
|
|
|
|
170 |
|
|
|
178,279 |
|
County of Dutchess New York Industrial Development Agency, RB, Bard College Civic Facility, Series A-2, 4.50%, 8/01/36 |
|
|
|
|
6,100 |
|
|
|
5,642,134 |
|
County of Madison New York Capital Resource Corp., Refunding RB, Colgate University Project, Series A, 4.50%, 7/01/39 |
|
|
|
|
135 |
|
|
|
144,193 |
|
County of Madison New York Industrial Development Agency New York, RB, Commons II LLC, Student Housing, Series A (CIFG), 5.00%,
6/01/33 |
|
|
|
|
275 |
|
|
|
280,745 |
|
County of Monroe New York Industrial Development Corp., RB, University of Rochester Project, Series A, 5.00%, 7/01/31 |
|
|
|
|
1,900 |
|
|
|
2,111,888 |
|
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
41
|
| |
Schedule of Investments (continued) |
BlackRock New York
Municipal Income Trust (BNY) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New York (continued) |
Education (concluded) |
|
|
|
|
|
|
|
|
|
|
County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A, 5.00%, 7/01/38 |
|
|
|
$ |
320 |
|
|
$ |
352,106 |
|
County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%,
3/01/26 |
|
|
|
|
1,165 |
|
|
|
1,218,800 |
|
County of Orange New York Funding Corp., Refunding RB, Mount St. Mary College Project, Series A: |
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/37 |
|
|
|
|
360 |
|
|
|
374,051 |
|
5.00%, 7/01/42 |
|
|
|
|
220 |
|
|
|
226,954 |
|
County of St. Lawrence New York Industrial Development Agency, RB, Clarkson University Project, 5.38%, 9/01/41 |
|
|
|
|
750 |
|
|
|
826,402 |
|
County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM), 5.50%, 7/01/33 |
|
|
|
|
700 |
|
|
|
774,732 |
|
Geneva Development Corp., Refunding RB, Hobart and William Smith Colleges, 5.25%, 9/01/44 |
|
|
|
|
500 |
|
|
|
552,810 |
|
State of New York Dormitory Authority, RB: |
|
|
|
|
|
|
|
|
|
|
Convent of the Sacred Heart (AGM), 5.25%, 11/01/24 |
|
|
|
|
155 |
|
|
|
180,098 |
|
Convent of the Sacred Heart (AGM), 5.63%, 11/01/32 |
|
|
|
|
750 |
|
|
|
845,992 |
|
Convent of the Sacred Heart (AGM), 5.75%, 11/01/40 |
|
|
|
|
210 |
|
|
|
234,696 |
|
Mount Sinai School of Medicine, 5.13%, 7/01/39 |
|
|
|
|
2,000 |
|
|
|
2,105,840 |
|
New York University, Series 1 (AMBAC), 5.50%, 7/01/40 |
|
|
|
|
1,440 |
|
|
|
1,805,558 |
|
New York University, Series A (AMBAC), 5.00%, 7/01/37 |
|
|
|
|
1,000 |
|
|
|
1,097,710 |
|
New York University, Series B, 5.00%, 7/01/37 |
|
|
|
|
1,250 |
|
|
|
1,390,512 |
|
State University Dormitory Facilities, Series A, 5.00%, 7/01/39 |
|
|
|
|
750 |
|
|
|
800,040 |
|
State University Dormitory Facilities, Series A, 5.00%, 7/01/41 |
|
|
|
|
2,000 |
|
|
|
2,172,580 |
|
Teachers College, Series B, 5.00%, 7/01/42 |
|
|
|
|
3,225 |
|
|
|
3,475,905 |
|
University of Rochester, Series A, 5.13%, 7/01/39 |
|
|
|
|
850 |
|
|
|
950,963 |
|
University of Rochester, Series A, 5.75%, 7/01/39 |
|
|
|
|
650 |
|
|
|
746,837 |
|
University of Rochester, Series B, 5.00%, 7/01/39 |
|
|
|
|
500 |
|
|
|
539,640 |
|
State of New York Dormitory Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
3rd General Resolution, State University Educational Facilities Issue, Series A, 5.00%, 5/15/29 |
|
|
|
|
2,000 |
|
|
|
2,264,040 |
|
Brooklyn Law School, 5.75%, 7/01/33 |
|
|
|
|
475 |
|
|
|
510,435 |
|
Cornell University, Series A, 5.00%, 7/01/40 |
|
|
|
|
1,000 |
|
|
|
1,132,420 |
|
Culinary Institute of America, 5.00%, 7/01/42 |
|
|
|
|
300 |
|
|
|
312,318 |
|
Fordham University, 4.00%, 7/01/30 |
|
|
|
|
555 |
|
|
|
568,620 |
|
Fordham University, 5.00%, 7/01/44 |
|
|
|
|
850 |
|
|
|
934,337 |
|
New York University, Series A, 5.00%, 7/01/37 |
|
|
|
|
1,790 |
|
|
|
1,991,214 |
|
Rochester Institute of Technology, 5.00%, 7/01/42 |
|
|
|
|
1,790 |
|
|
|
1,938,158 |
|
Rockefeller University, Series B, 4.00%, 7/01/38 |
|
|
|
|
775 |
|
|
|
800,490 |
|
Skidmore College, Series A, 5.00%, 7/01/27 |
|
|
|
|
190 |
|
|
|
214,651 |
|
Skidmore College, Series A, 5.00%, 7/01/28 |
|
|
|
|
75 |
|
|
|
84,007 |
|
Skidmore College, Series A, 5.25%, 7/01/29 |
|
|
|
|
85 |
|
|
|
96,240 |
|
State University Dormitory Facilities, Series A, 5.25%, 7/01/30 |
|
|
|
|
2,355 |
|
|
|
2,687,620 |
|
State University Dormitory Facilities, Series A, 5.25%, 7/01/32 |
|
|
|
|
445 |
|
|
|
500,928 |
|
State University Dormitory Facilities, Series A, 5.00%, 7/01/42 |
|
|
|
|
895 |
|
|
|
976,114 |
|
Teachers College, 5.50%, 3/01/39 |
|
|
|
|
450 |
|
|
|
494,464 |
|
|
|
|
|
|
|
|
|
|
55,994,428 |
|
Health 15.6% |
|
|
|
|
|
|
|
|
|
|
County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A, 5.75%, 7/01/40 |
|
|
|
|
300 |
|
|
|
330,225 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New York (continued) |
Health (concluded) |
|
|
|
|
|
|
|
|
|
|
County of Genesee New York Industrial Development Agency, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27 |
|
|
|
$ |
500 |
|
|
$ |
500,085 |
|
County of Monroe New York Industrial Development Corp., RB, Rochester General Hospital Project, Series A, 5.00%, 12/01/32 |
|
|
|
|
240 |
|
|
|
258,439 |
|
County of Monroe New York Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 8/15/40 |
|
|
|
|
1,650 |
|
|
|
1,887,699 |
|
County of Nassau New York Local Economic Assistance Corp., Refunding RB, Winthrop University Hospital Association Project, 5.00%,
7/01/42 |
|
|
|
|
2,750 |
|
|
|
2,844,325 |
|
County of Suffolk New York Industrial Development Agency, Refunding RB, Jeffersons Ferry Project, 5.00%, 11/01/28 |
|
|
|
|
1,175 |
|
|
|
1,212,494 |
|
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien: |
|
|
|
|
|
|
|
|
|
|
Remarketing, Series A, 5.00%, 11/01/30 |
|
|
|
|
3,500 |
|
|
|
3,729,530 |
|
Series B, 6.00%, 11/01/30 |
|
|
|
|
500 |
|
|
|
566,895 |
|
County of Westchester New York Local Development Corp., Refunding RB, Kendal On Hudson Project: |
|
|
|
|
|
|
|
|
|
|
4.00%, 1/01/23 |
|
|
|
|
650 |
|
|
|
673,992 |
|
5.00%, 1/01/28 |
|
|
|
|
675 |
|
|
|
715,878 |
|
5.00%, 1/01/34 |
|
|
|
|
1,250 |
|
|
|
1,314,813 |
|
State of New York Dormitory Authority, RB: |
|
|
|
|
|
|
|
|
|
|
Hudson Valley Hospital (BHAC) 5.00%, 8/15/36 |
|
|
|
|
750 |
|
|
|
818,648 |
|
Mental Health Services Facility, Series B (AMBAC), 5.00%, 2/15/15 (e) |
|
|
|
|
325 |
|
|
|
333,489 |
|
New York State Association for Retarded Children, Inc., Series A, 6.00%, 7/01/32 |
|
|
|
|
500 |
|
|
|
568,940 |
|
New York State Association for Retarded Children, Inc., Series B (AMBAC), 6.00%, 7/01/32 |
|
|
|
|
200 |
|
|
|
219,274 |
|
New York University Hospitals Center, Series A, 6.00%, 7/01/40 |
|
|
|
|
500 |
|
|
|
557,220 |
|
New York University Hospitals Center, Series B, 5.63%, 7/01/37 |
|
|
|
|
530 |
|
|
|
577,859 |
|
North Shore-Long Island Jewish Obligated Group, Series A, 5.50%, 5/01/37 |
|
|
|
|
1,775 |
|
|
|
1,916,112 |
|
North Shore-Long Island Jewish Obligated Group, Series D, 4.25%, 5/01/39 |
|
|
|
|
1,000 |
|
|
|
1,015,130 |
|
State of New York Dormitory Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Miriam Osborn Memorial Home Association, 5.00%, 7/01/29 |
|
|
|
|
290 |
|
|
|
307,467 |
|
Mount Sinai Hospital, Series A, 5.00%, 7/01/26 |
|
|
|
|
1,385 |
|
|
|
1,533,735 |
|
New York University Hospitals Center, Series A, 5.00%, 7/01/36 |
|
|
|
|
3,390 |
|
|
|
3,514,481 |
|
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 5/01/32 |
|
|
|
|
1,750 |
|
|
|
1,889,037 |
|
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 5/01/41 |
|
|
|
|
1,000 |
|
|
|
1,065,890 |
|
North Shore-Long Island Jewish Obligated Group, Series E, 5.50%, 5/01/33 |
|
|
|
|
1,100 |
|
|
|
1,194,446 |
|
|
|
|
|
|
|
|
|
|
29,546,103 |
|
Housing 1.5% |
|
|
|
|
|
|
|
|
|
|
State of New York HFA, RB, M/F Housing, Highland Avenue Senior Apartments, Series A, AMT (SONYMA), 5.00%, 2/15/39 |
|
|
|
|
1,500 |
|
|
|
1,517,055 |
|
State of New York Mortgage Agency, RB, S/F Housing, 49th Series, 4.00%, 10/01/43 |
|
|
|
|
1,000 |
|
|
|
1,005,500 |
|
State of New York Mortgage Agency, Refunding RB, 48th Series, 3.70%, 10/01/38 |
|
|
|
|
360 |
|
|
|
353,768 |
|
|
|
|
|
|
|
|
|
|
2,876,323 |
|
See Notes to Financial
Statements.
42 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (continued) |
BlackRock New York
Municipal Income Trust (BNY) (Percentages shown are based on Net Assets) |
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New York (continued) |
State 13.7% |
|
|
|
|
|
|
|
|
|
|
City of New York New York Transitional Finance Authority, BARB, Series S-2 (NPFGC), 4.25%, 1/15/34 |
|
|
|
$ |
1,260 |
|
|
$ |
1,280,550 |
|
City of New York New York Transitional Finance Authority, RB, Future Tax Secured, 5.00%, 2/01/32 |
|
|
|
|
5,000 |
|
|
|
5,710,250 |
|
State of New York Dormitory Authority, ERB, Series B, 5.75%, 3/15/36 |
|
|
|
|
600 |
|
|
|
695,568 |
|
State of New York Dormitory Authority, RB: |
|
|
|
|
|
|
|
|
|
|
(AMBAC), 5.00%, 2/15/35 |
|
|
|
|
1,675 |
|
|
|
1,707,830 |
|
General Purpose, Series B, 5.00%, 3/15/42 |
|
|
|
|
4,380 |
|
|
|
4,764,082 |
|
General, Purpose, Series C, 5.00%, 3/15/34 |
|
|
|
|
2,185 |
|
|
|
2,429,414 |
|
Series A, 5.25%, 1/01/34 |
|
|
|
|
800 |
|
|
|
869,560 |
|
Series A, 5.50%, 1/01/39 |
|
|
|
|
2,000 |
|
|
|
2,185,280 |
|
State of New York Dormitory Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
General Purpose Bonds, Series D, 5.00%, 2/15/34 |
|
|
|
|
500 |
|
|
|
557,730 |
|
School Districts Financing Program, Series A (AGM), 5.00%, 10/01/35 |
|
|
|
|
395 |
|
|
|
431,992 |
|
State of New York Thruway Authority, RB, Transportation, Series A, 5.00%, 3/15/32 |
|
|
|
|
320 |
|
|
|
362,576 |
|
State of New York Thruway Authority, Refunding RB, 2nd General Highway and Bridge Trust, Series A, 5.00%, 4/01/32 |
|
|
|
|
3,500 |
|
|
|
3,907,505 |
|
State of New York Urban Development Corp., RB, State Personal Income Tax, Series C, 5.00%, 3/15/30 |
|
|
|
|
885 |
|
|
|
1,011,343 |
|
|
|
|
|
|
|
|
|
|
25,913,680 |
|
Transportation 17.5% |
|
|
|
|
|
|
|
|
|
|
Metropolitan Transportation Authority, RB: |
|
|
|
|
|
|
|
|
|
|
Series A-1, 5.25%, 11/15/33 |
|
|
|
|
540 |
|
|
|
611,615 |
|
Series C, 6.50%, 11/15/28 |
|
|
|
|
1,000 |
|
|
|
1,192,390 |
|
Series D, 5.25%, 11/15/41 |
|
|
|
|
1,000 |
|
|
|
1,096,170 |
|
Series E, 5.00%, 11/15/38 |
|
|
|
|
4,000 |
|
|
|
4,359,400 |
|
Series H, 5.00%, 11/15/25 |
|
|
|
|
325 |
|
|
|
379,155 |
|
Metropolitan Transportation Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
Series D, 5.25%, 11/15/30 |
|
|
|
|
910 |
|
|
|
1,050,923 |
|
Series F, 5.00%, 11/15/30 |
|
|
|
|
2,000 |
|
|
|
2,238,560 |
|
Series F (AGM), 4.00%, 11/15/30 |
|
|
|
|
1,250 |
|
|
|
1,285,500 |
|
Port Authority of New York & New Jersey, ARB: |
|
|
|
|
|
|
|
|
|
|
Consolidated 183rd Series, 4.00%, 6/15/44 |
|
|
|
|
500 |
|
|
|
501,195 |
|
JFK International Air Terminal LLC, Special Project, Series 6, AMT (NPFGC), 5.75%, 12/01/22 |
|
|
|
|
6,000 |
|
|
|
6,036,060 |
|
JFK International Air Terminal LLC, Special Project, Series 8, AMT (NPFGC), 6.00%, 12/01/42 |
|
|
|
|
1,000 |
|
|
|
1,147,280 |
|
Port Authority of New York & New Jersey, Refunding ARB: |
|
|
|
|
|
|
|
|
|
|
179th Series, 5.00%, 12/01/38 |
|
|
|
|
575 |
|
|
|
642,171 |
|
Consolidated, 146th Series, AMT (AGM), 4.50%, 12/01/34 |
|
|
|
|
500 |
|
|
|
508,730 |
|
Consolidated, 147th Series, AMT, 4.75%, 4/15/37 |
|
|
|
|
1,330 |
|
|
|
1,360,749 |
|
Consolidated, 177th Series, AMT, 4.00%, 1/15/43 |
|
|
|
|
1,970 |
|
|
|
1,950,123 |
|
Consolidated, 178th Series, AMT, 5.00%, 12/01/43 |
|
|
|
|
500 |
|
|
|
538,195 |
|
Port Authority of New York & New Jersey, Refunding RB, 178th Series, AMT, 5.00%, 12/01/33 |
|
|
|
|
750 |
|
|
|
830,070 |
|
State of New York Thruway Authority, Refunding RB, General, Series I: |
|
|
|
|
|
|
|
|
|
|
5.00%, 1/01/27 |
|
|
|
|
2,000 |
|
|
|
2,278,420 |
|
5.00%, 1/01/37 |
|
|
|
|
2,920 |
|
|
|
3,197,867 |
|
5.00%, 1/01/42 |
|
|
|
|
280 |
|
|
|
303,979 |
|
Triborough Bridge & Tunnel Authority, Refunding RB, CAB (b): |
|
|
|
|
|
|
|
|
|
|
Sub-Series A, 0.00%, 11/15/32 |
|
|
|
|
845 |
|
|
|
401,671 |
|
General, Series B, 0.00%, 11/15/32 |
|
|
|
|
2,500 |
|
|
|
1,224,725 |
|
|
|
|
|
|
|
|
|
|
33,134,948 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New York (concluded) |
Utilities 9.9% |
|
|
|
|
|
|
|
|
|
|
City of New York New York Municipal Water Finance Authority, RB, Series B, 5.00%, 6/15/36 |
|
|
|
$ |
750 |
|
|
$ |
796,912 |
|
City of New York New York Municipal Water Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
|
|
2nd General Resolution, Series BB, 5.00%, 6/15/31 |
|
|
|
|
1,000 |
|
|
|
1,129,570 |
|
Water & Sewer System, Series A, 4.75%, 6/15/30 |
|
|
|
|
1,500 |
|
|
|
1,637,940 |
|
City of New York New York Water & Sewer System, Refunding RB, Series D, 5.00%, 6/15/39 |
|
|
|
|
5,000 |
|
|
|
5,160,500 |
|
Long Island Power Authority, RB: |
|
|
|
|
|
|
|
|
|
|
General, Electric System, Series C (CIFG), 5.25%, 9/01/29 |
|
|
|
|
2,000 |
|
|
|
2,378,860 |
|
Series A (AGM), 5.00%, 5/01/36 |
|
|
|
|
500 |
|
|
|
534,785 |
|
Long Island Power Authority, Refunding RB, Electric System, Series A, 5.75%, 4/01/39 |
|
|
|
|
4,000 |
|
|
|
4,533,320 |
|
State of New York Environmental Facilities Corp., Refunding RB, Revolving Funds New York City Municipal Water, 2nd General Resolution, Series B,
5.00%, 6/15/36 |
|
|
|
|
350 |
|
|
|
391,402 |
|
Utility Debt Securitization Authority, Refunding RB, 5.00%, 12/15/41 |
|
|
|
|
2,000 |
|
|
|
2,251,480 |
|
|
|
|
|
|
|
|
|
|
18,814,769 |
|
Total Municipal Bonds in New York |
|
|
|
|
|
|
|
|
255,461,764 |
|
|
Puerto Rico 1.3% |
Housing 1.3% |
|
|
|
|
|
|
|
|
|
|
Puerto Rico Housing Finance Authority, Refunding RB, M/F Housing, Subordinate, Capital Fund Modernization,
5.13%, 12/01/27 |
|
|
|
|
2,500 |
|
|
|
2,524,475 |
|
Total Municipal Bonds 136.1% |
|
|
|
|
|
|
|
|
257,986,239 |
|
|
Municipal Bonds Transferred to Tender Option Bond Trusts (f) |
New York 26.8% |
County/City/Special District/School District 5.5% |
|
|
|
|
|
|
|
|
|
|
City of New York New York, GO: |
|
|
|
|
|
|
|
|
|
|
Sub-Series G-1, 5.00%, 4/01/29 |
|
|
|
|
4,370 |
|
|
|
4,967,641 |
|
Sub-Series I-1, 5.00%, 3/01/36 |
|
|
|
|
1,500 |
|
|
|
1,671,465 |
|
City of New York New York Transitional Finance Authority, RB, Future Tax Secured, Sub-Series D-1, 5.00%, 11/01/38 |
|
|
|
|
825 |
|
|
|
915,296 |
|
New
York Liberty Development Corp., Refunding RB, 7 World Trade Center Project, Class 1, 5.00%, 9/15/40 |
|
|
|
|
2,610 |
|
|
|
2,869,826 |
|
|
|
|
|
|
|
|
|
|
10,424,228 |
|
Education 2.1% |
|
|
|
|
|
|
|
|
|
|
City of New York New York Trust for Cultural Resources, Refunding RB, Wildlife Conservation Society, Series
A, 5.00%, 8/01/33 |
|
|
|
|
3,527 |
|
|
|
3,967,430 |
|
State 2.0% |
|
|
|
|
|
|
|
|
|
|
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39 |
|
|
|
|
660 |
|
|
|
738,736 |
|
Hudson New York Yards Infrastructure Corp., RB, Senior Bond, Fiscal 2012, Series A, 5.75%, 2/15/47 (g) |
|
|
|
|
1,250 |
|
|
|
1,421,921 |
|
State of New York Dormitory Authority, RB, General Purpose, Series C, 5.00%, 3/15/41 |
|
|
|
|
1,500 |
|
|
|
1,640,250 |
|
|
|
|
|
|
|
|
|
|
3,800,907 |
|
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
43
|
| |
Schedule of Investments (continued) |
BlackRock New York
Municipal Income Trust (BNY) (Percentages shown are based on Net Assets) |
Municipal Bonds Transferred to Tender Option Bond Trusts (f) |
|
|
|
Par (000) |
|
Value |
New York (continued) |
Transportation 5.4% |
|
|
|
|
|
|
|
|
|
|
New
York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 |
|
|
|
$ |
6,495 |
|
|
$ |
7,156,711 |
|
Port Authority of New York & New Jersey, ARB, Consolidated, 169th Series, AMT, 5.00%, 10/15/26 |
|
|
|
|
1,500 |
|
|
|
1,699,395 |
|
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 3/15/31 |
|
|
|
|
1,180 |
|
|
|
1,339,182 |
|
|
|
|
|
|
|
|
|
|
10,195,288 |
|
Utilities 11.8% |
|
|
|
|
|
|
|
|
|
|
City of New York New York Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40 |
|
|
|
|
1,200 |
|
|
|
1,372,858 |
|
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System: |
|
|
|
|
|
|
|
|
|
|
2nd General Resolution, Fiscal 2011, Series HH, 5.00%, 6/15/32 |
|
|
|
|
5,310 |
|
|
|
5,918,207 |
|
2nd General Resolution, Fiscal 2012, Series BB, 5.00%, 6/15/44 |
|
|
|
|
3,511 |
|
|
|
3,810,176 |
|
2nd General Resolution, Series FF-2, 5.50%, 6/15/40 |
|
|
|
|
810 |
|
|
|
926,489 |
|
Series A, 4.75%, 6/15/30 |
|
|
|
|
2,500 |
|
|
|
2,729,900 |
|
Municipal Bonds |
|
|
|
Par (000) |
|
Value |
New York (concluded) |
Utilities (concluded) |
|
|
|
|
|
|
|
|
|
|
Utility Debt Securitization Authority, Refunding RB, 5.00%, 12/15/41 |
|
|
|
$ |
6,868 |
|
|
$ |
7,731,487 |
|
|
|
|
|
|
|
|
|
|
22,489,117 |
|
Total Municipal Bonds Transferred to
Tender Option Bond Trusts 26.8% |
|
|
|
|
|
|
|
|
50,876,970 |
|
Total Long-Term Investments (Cost $293,402,648) 162.9% |
|
|
|
|
|
|
|
|
308,863,209 |
|
|
Short-Term Securities |
|
|
|
Shares
|
|
|
|
|
BIF New York Municipal Money Fund, 0.00% (h)(i) |
|
|
|
|
874,210 |
|
|
|
874,210 |
|
Total Short-Term Securities (Cost $874,210) 0.5% |
|
|
|
|
|
|
|
|
874,210 |
|
Total Investments
(Cost $294,276,858) 163.4% |
|
309,737,419 |
|
Other Assets Less Liabilities 1.5%
|
|
|
|
|
|
2,776,692 |
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (15.0%) |
|
|
|
|
|
|
|
|
(28,466,200 |
) |
VMTP Shares, at Liquidation
Value (49.9%) |
|
|
|
|
|
|
|
|
(94,500,000 |
) |
Net Assets Applicable to Common Shares 100.0% |
|
|
|
|
|
|
|
$ |
189,547,911 |
|
Notes to Schedule of Investments
(a) |
|
|
|
Variable rate security. Rate shown is as of report date. |
(b) |
|
|
|
Zero-coupon bond. |
(c) |
|
|
|
Non-income producing security. |
(d) |
|
|
|
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments. |
(e) |
|
|
|
U.S.
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. |
(f) |
|
|
|
Represent bonds transferred to a TOB. In exchange for which the Trust received cash and residual interest certificates. These bonds serve as
collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to
TOBs. |
(g) |
|
|
|
All
or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a
shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a
shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expires on February 15, 2019
is $661,835. |
(h) |
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2014, for purposes of Section 2(a)(3) of the 1940
Act, were as follows: |
Affiliate |
|
|
|
Shares Held at July 31,
2013 |
|
Net Activity |
|
Shares Held at July 31,
2014 |
|
Income |
BIF New York Municipal Money Fund |
|
|
|
7,477,704 |
|
(6,603,494) |
|
874,210 |
|
$1,032 |
(i) |
|
|
|
Represents the current yield as of report date. |
|
|
|
|
Financial futures contracts outstanding as of July 31, 2014 were as follows: |
Contracts Sold |
|
|
|
Issue |
|
Exchange |
|
Expiration |
|
Notional Value |
|
Unrealized Appreciation |
(165) |
|
|
|
10-Year U.S. Treasury Note |
|
Chicago Board of Trade |
|
September 2014 |
|
$20,560,547 |
|
$64,222 |
|
|
|
|
For Trust compliance purposes, the Trusts sector classifications refer to any one or more of the sector sub-classifications
used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not
apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
See Notes to Financial
Statements.
44 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Schedule of Investments (concluded) |
BlackRock New York
Municipal Income Trust (BNY)
|
|
|
|
|
Fair Value Measurements Various inputs are used in determining the fair value of investments and derivative financial
instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement
purposes as follows: |
|
|
|
|
Level 1 unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the
ability to access |
|
|
|
|
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 Trusts own assumptions used in determining the fair value of investments and derivative financial
instruments) |
|
|
|
|
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair
value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value
hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is
significant to the fair value measurement in its entirety. |
|
|
|
|
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In
accordance with the Trusts policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of
the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the
pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing
in those securities. For information about the Trusts policy regarding valuation of investments and derivative financial instruments, please
refer to Note 2 of the Notes to Financial Statements. |
|
|
|
|
The following tables summarize the Trusts investments and derivative financial instruments categorized in the disclosure
hierarchy as of July 31, 2014: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments1 |
|
|
|
|
|
|
|
$ |
308,863,209 |
|
|
|
|
|
|
$ |
308,863,209 |
|
Short-Term Securities |
|
|
|
$ |
874,210 |
|
|
|
|
|
|
|
|
|
|
|
874,210 |
|
Total
|
|
|
|
$ |
874,210 |
|
|
$ |
308,863,209 |
|
|
|
|
|
|
$ |
309,737,419 |
|
|
1 |
See above Schedule of Investments for values in each sector.
|
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Derivative Financial Instruments2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
|
|
$ |
64,222 |
|
|
|
|
|
|
|
|
|
|
$ |
64,222 |
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.
|
|
|
|
|
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement
purposes. As of July 31, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash pledged for financial futures contracts |
|
|
|
$ |
226,000 |
|
|
|
|
|
|
|
|
|
|
$ |
226,000 |
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOB trust certificates |
|
|
|
|
|
|
|
$ |
(28,460,581 |
) |
|
|
|
|
|
|
(28,460,581 |
) |
VMTP Shares |
|
|
|
|
|
|
|
|
(94,500,000 |
) |
|
|
|
|
|
|
(94,500,000 |
) |
Total
|
|
|
|
$ |
226,000 |
|
|
$ |
(122,960,581 |
) |
|
|
|
|
|
$ |
(122,734,581 |
) |
|
|
|
|
There were no transfers between levels during the year ended July 31, 2014. |
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
45
|
| |
Statements of Assets and Liabilities |
|
July
31, 2014 |
|
|
|
BlackRock
California
Municipal
Income Trust
(BFZ) |
|
BlackRock
Florida
Municipal 2020
Term Trust
(BFO) |
|
BlackRock
Municipal
Income
Investment
Trust
(BBF) |
|
BlackRock
Municipal Target
Term Trust
(BTT) |
|
BlackRock
New Jersey
Municipal
Income Trust (BNJ) |
|
BlackRock
New York
Municipal
Income Trust
(BNY) |
|
Assets |
Investments
at value unaffiliated1 |
|
|
|
$ |
778,659,226 |
|
|
$ |
85,618,704 |
|
|
$ |
162,093,754 |
|
|
$ |
2,457,431,823 |
|
|
$ |
193,526,445 |
|
|
$ |
308,863,209 |
|
Investments
at value affiliated2 |
|
|
|
|
540,673 |
|
|
|
123,907 |
|
|
|
1,298,709 |
|
|
|
5,417,254 |
|
|
|
1,307,069 |
|
|
|
874,210 |
|
Cash
pledged for financial futures contracts |
|
|
|
|
436,000 |
|
|
|
|
|
|
|
88,000 |
|
|
|
2,377,002 |
|
|
|
99,000 |
|
|
|
226,000 |
|
Investments
sold receivable |
|
|
|
|
14,522,274 |
|
|
|
40,502 |
|
|
|
20,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
receivable |
|
|
|
|
11,185,387 |
|
|
|
893,926 |
|
|
|
1,981,594 |
|
|
|
25,247,220 |
|
|
|
1,685,608 |
|
|
|
3,644,175 |
|
Deferred
offering costs |
|
|
|
|
51,795 |
|
|
|
|
|
|
|
133,950 |
|
|
|
816,094 |
|
|
|
31,942 |
|
|
|
37,770 |
|
Variation
margin receivable on financial futures contracts |
|
|
|
|
14,952 |
|
|
|
|
|
|
|
3,000 |
|
|
|
90,462 |
|
|
|
3,375 |
|
|
|
7,734 |
|
Prepaid
expenses |
|
|
|
|
31,825 |
|
|
|
14,688 |
|
|
|
63,137 |
|
|
|
42,463 |
|
|
|
25,749 |
|
|
|
26,987 |
|
Total
assets |
|
|
|
|
805,442,132 |
|
|
|
86,691,727 |
|
|
|
165,682,400 |
|
|
|
2,491,422,318 |
|
|
|
196,679,188 |
|
|
|
313,680,085 |
|
|
Accrued
Liabilities |
Investments
purchased payable |
|
|
|
|
20,024,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends payable Common Shares |
|
|
|
|
2,301,310 |
|
|
|
22,900 |
|
|
|
485,240 |
|
|
|
5,640,446 |
|
|
|
575,009 |
|
|
|
891,085 |
|
Investment
advisory fees payable |
|
|
|
|
384,298 |
|
|
|
36,661 |
|
|
|
83,922 |
|
|
|
736,789 |
|
|
|
99,496 |
|
|
|
158,777 |
|
Officers
and Trustees fees payable |
|
|
|
|
74,433 |
|
|
|
9,639 |
|
|
|
18,092 |
|
|
|
15,274 |
|
|
|
21,049 |
|
|
|
32,739 |
|
Interest
expense and fees payable |
|
|
|
|
24,673 |
|
|
|
95 |
|
|
|
6,085 |
|
|
|
51,012 |
|
|
|
3,770 |
|
|
|
5,619 |
|
Offering
costs payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
286,782 |
|
|
|
|
|
|
|
|
|
Other
accrued expenses payable |
|
|
|
|
103,765 |
|
|
|
58,981 |
|
|
|
44,020 |
|
|
|
196,426 |
|
|
|
69,781 |
|
|
|
83,373 |
|
Total
accrued liabilities |
|
|
|
|
22,913,446 |
|
|
|
128,276 |
|
|
|
637,359 |
|
|
|
6,926,729 |
|
|
|
769,105 |
|
|
|
1,171,593 |
|
|
Other
Liabilities |
TOB
trust certificates |
|
|
|
|
106,697,554 |
|
|
|
190,000 |
|
|
|
29,682,276 |
|
|
|
184,119,974 |
|
|
|
17,301,282 |
|
|
|
28,460,581 |
|
RVMTP
Shares, at liquidation value of $5,000,000 per share3,4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
750,000,000 |
|
|
|
|
|
|
|
|
|
VMTP
Shares, at liquidation value of $100,000 per share3,4 |
|
|
|
|
171,300,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59,100,000 |
|
|
|
94,500,000 |
|
VRDP
Shares, at liquidation value of $100,000 per share3,4 |
|
|
|
|
|
|
|
|
|
|
|
|
34,200,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
other liabilities |
|
|
|
|
277,997,554 |
|
|
|
190,000 |
|
|
|
63,882,276 |
|
|
|
934,119,974 |
|
|
|
76,401,282 |
|
|
|
122,960,581 |
|
Total
liabilities |
|
|
|
|
300,911,000 |
|
|
|
318,276 |
|
|
|
64,519,635 |
|
|
|
941,046,703 |
|
|
|
77,170,387 |
|
|
|
124,132,174 |
|
|
AMPS
at Redemption Value |
$25,000
per share liquidation preference, plus unpaid dividends3,4 |
|
|
|
|
|
|
|
|
625,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shareholders |
|
|
|
$ |
504,531,132 |
|
|
$ |
85,748,443 |
|
|
$ |
101,162,765 |
|
|
$ |
1,550,375,615 |
|
|
$ |
119,508,801 |
|
|
$ |
189,547,911 |
|
|
Net
Assets Applicable to Common Shareholders Consist of |
Paid-in
capital5,6,7 |
|
|
|
$ |
446,571,010 |
|
|
$ |
80,396,516 |
|
|
$ |
95,045,973 |
|
|
$ |
1,671,298,896 |
|
|
$ |
108,747,909 |
|
|
$ |
183,140,788 |
|
Undistributed
(distributions in excess of) net investment income |
|
|
|
|
3,935,343 |
|
|
|
2,300,229 |
|
|
|
675,210 |
|
|
|
(3,567,803 |
) |
|
|
1,641,707 |
|
|
|
3,009,264 |
|
Accumulated
net realized loss |
|
|
|
|
(18,430,332 |
) |
|
|
(749,208 |
) |
|
|
(11,095,716 |
) |
|
|
(87,490,502 |
) |
|
|
(2,568,237 |
) |
|
|
(12,126,924 |
) |
Net
unrealized appreciation/depreciation |
|
|
|
|
72,455,111 |
|
|
|
3,800,906 |
|
|
|
16,537,298 |
|
|
|
(29,864,976 |
) |
|
|
11,687,422 |
|
|
|
15,524,783 |
|
Net
Assets Applicable to Common Shareholders |
|
|
|
$ |
504,531,132 |
|
|
$ |
85,748,443 |
|
|
$ |
101,162,765 |
|
|
$ |
1,550,375,615 |
|
|
$ |
119,508,801 |
|
|
$ |
189,547,911 |
|
Net
asset value per Common Share |
|
|
|
$ |
15.83 |
|
|
$ |
15.42 |
|
|
$ |
15.09 |
|
|
$ |
21.99 |
|
|
$ |
15.61 |
|
|
$ |
14.68 |
|
1 Investments
at cost unaffiliated |
|
|
|
$ |
706,280,926 |
|
|
$ |
81,817,798 |
|
|
$ |
145,583,866 |
|
|
$ |
2,487,344,304 |
|
|
$ |
181,869,860 |
|
|
$ |
293,402,648 |
|
2 Investments
at cost affiliated |
|
|
|
$ |
540,673 |
|
|
$ |
123,907 |
|
|
$ |
1,298,709 |
|
|
$ |
5,417,254 |
|
|
$ |
1,307,069 |
|
|
$ |
874,210 |
|
3 Preferred
Shares outstanding, par value $0.001 per share |
|
|
|
|
1,713 |
|
|
|
25 |
|
|
|
342 |
|
|
|
150 |
|
|
|
591 |
|
|
|
945 |
|
4 Preferred
Shares authorized |
|
|
|
|
unlimited |
|
|
|
unlimited |
|
|
|
unlimited |
|
|
|
unlimited |
|
|
|
unlimited |
|
|
|
unlimited |
|
5 Par
value per Common Share |
|
|
|
$ |
0.001 |
|
|
$ |
0.001 |
|
|
$ |
0.001 |
|
|
$ |
0.001 |
|
|
$ |
0.001 |
|
|
$ |
0.001 |
|
6 Common
Shares outstanding |
|
|
|
|
31,874,095 |
|
|
|
5,562,128 |
|
|
|
6,704,527 |
|
|
|
70,505,571 |
|
|
|
7,656,577 |
|
|
|
12,914,274 |
|
7 Common
Shares authorized |
|
|
|
|
unlimited |
|
|
|
unlimited |
|
|
|
unlimited |
|
|
|
unlimited |
|
|
|
unlimited |
|
|
|
unlimited |
|
See Notes to Financial
Statements.
46 |
ANNUAL REPORT |
JULY 31, 2014
|
Year Ended July 31, 2014 |
|
|
|
BlackRock
California
Municipal
Income Trust
(BFZ) |
|
BlackRock
Florida
Municipal 2020
Term Trust
(BFO) |
|
BlackRock
Municipal
Income
Investment Trust
(BBF) |
|
BlackRock
Municipal
Target
Term Trust
(BTT) |
|
BlackRock
New Jersey
Municipal
Income Trust (BNJ) |
|
BlackRock
New York
Municipal
Income Trust
(BNY) |
|
Investment
Income |
Interest |
|
|
|
$ |
35,364,857 |
|
|
$ |
3,224,750 |
|
|
$ |
7,601,091 |
|
|
$ |
95,785,816 |
|
|
$ |
8,877,481 |
|
|
$ |
13,764,967 |
|
Income affiliated |
|
|
|
|
|
|
|
|
857 |
|
|
|
626 |
|
|
|
2,893 |
|
|
|
13 |
|
|
|
1,032 |
|
Total income |
|
|
|
|
35,364,857 |
|
|
|
3,225,607 |
|
|
|
7,601,717 |
|
|
|
95,788,709 |
|
|
|
8,877,494 |
|
|
|
13,765,999 |
|
|
Expenses |
Investment advisory |
|
|
|
|
4,567,457 |
|
|
|
460,825 |
|
|
|
960,951 |
|
|
|
9,375,852 |
|
|
|
1,137,249 |
|
|
|
1,801,476 |
|
Professional |
|
|
|
|
100,894 |
|
|
|
52,343 |
|
|
|
44,181 |
|
|
|
179,197 |
|
|
|
48,673 |
|
|
|
65,296 |
|
Liquidity fees |
|
|
|
|
|
|
|
|
|
|
|
|
317,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Officer and Trustees |
|
|
|
|
52,209 |
|
|
|
8,796 |
|
|
|
10,553 |
|
|
|
129,487 |
|
|
|
12,513 |
|
|
|
19,675 |
|
Transfer agent |
|
|
|
|
35,648 |
|
|
|
25,388 |
|
|
|
19,911 |
|
|
|
118,560 |
|
|
|
21,151 |
|
|
|
26,764 |
|
Custodian |
|
|
|
|
34,806 |
|
|
|
8,349 |
|
|
|
12,516 |
|
|
|
82,675 |
|
|
|
13,396 |
|
|
|
18,638 |
|
Accounting services |
|
|
|
|
31,049 |
|
|
|
13,443 |
|
|
|
23,831 |
|
|
|
214,454 |
|
|
|
28,636 |
|
|
|
3,938 |
|
Registration |
|
|
|
|
6,679 |
|
|
|
5,599 |
|
|
|
5,599 |
|
|
|
51,868 |
|
|
|
5,622 |
|
|
|
5,649 |
|
Printing |
|
|
|
|
5,719 |
|
|
|
6,371 |
|
|
|
3,916 |
|
|
|
30,570 |
|
|
|
8,153 |
|
|
|
9,110 |
|
Remarketing fees on Preferred Shares |
|
|
|
|
|
|
|
|
9,345 |
|
|
|
34,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Miscellaneous |
|
|
|
|
85,681 |
|
|
|
37,377 |
|
|
|
63,437 |
|
|
|
153,377 |
|
|
|
60,176 |
|
|
|
77,664 |
|
Total expenses excluding interest expense, fees and amortization of offering costs |
|
|
|
|
4,920,142 |
|
|
|
627,836 |
|
|
|
1,497,419 |
|
|
|
10,336,040 |
|
|
|
1,335,569 |
|
|
|
2,028,210 |
|
Interest expense, fees and amortization of offering costs1 |
|
|
|
|
2,729,431 |
|
|
|
1,080 |
|
|
|
275,387 |
|
|
|
6,829,937 |
|
|
|
806,180 |
|
|
|
1,228,024 |
|
Total expenses |
|
|
|
|
7,649,573 |
|
|
|
628,916 |
|
|
|
1,772,806 |
|
|
|
17,165,977 |
|
|
|
2,141,749 |
|
|
|
3,256,234 |
|
Less fees waived by Manager |
|
|
|
|
(2,380 |
) |
|
|
(1,183 |
) |
|
|
(917 |
) |
|
|
(183,965 |
) |
|
|
(4,042 |
) |
|
|
(2,840 |
) |
Less fees paid indirectly |
|
|
|
|
(32 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
(321 |
) |
|
|
(3 |
) |
|
|
(67 |
) |
Total expenses after fees waived and paid indirectly |
|
|
|
|
7,647,161 |
|
|
|
627,732 |
|
|
|
1,771,883 |
|
|
|
16,981,691 |
|
|
|
2,137,704 |
|
|
|
3,253,327 |
|
Net investment income |
|
|
|
|
27,717,696 |
|
|
|
2,597,875 |
|
|
|
5,829,834 |
|
|
|
78,807,018 |
|
|
|
6,739,790 |
|
|
|
10,512,672 |
|
|
Realized
and Unrealized Gain (Loss) |
Net realized gain (loss) from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
3,029,451 |
|
|
|
(12,643 |
) |
|
|
(2,264,333 |
) |
|
|
(23,637,261 |
) |
|
|
(1,100,589 |
) |
|
|
(5,374,968 |
) |
Financial futures contracts |
|
|
|
|
(772,699 |
) |
|
|
|
|
|
|
(138,637 |
) |
|
|
(9,836,846 |
) |
|
|
(162,458 |
) |
|
|
(552,685 |
) |
Options written |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(580,099 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,256,752 |
|
|
|
(12,643 |
) |
|
|
(2,402,970 |
) |
|
|
(34,054,206 |
) |
|
|
(1,263,047 |
) |
|
|
(5,927,653 |
) |
Net change in unrealized appreciation/depreciation on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
41,750,551 |
|
|
|
1,450,413 |
|
|
|
10,386,491 |
|
|
|
262,089,257 |
|
|
|
10,951,537 |
|
|
|
21,615,419 |
|
Financial futures contracts |
|
|
|
|
76,811 |
|
|
|
|
|
|
|
27,410 |
|
|
|
47,505 |
|
|
|
30,837 |
|
|
|
64,222 |
|
|
|
|
|
|
41,827,362 |
|
|
|
1,450,413 |
|
|
|
10,413,901 |
|
|
|
262,136,762 |
|
|
|
10,982,374 |
|
|
|
21,679,641 |
|
Net realized and unrealized gain |
|
|
|
|
44,084,114 |
|
|
|
1,437,770 |
|
|
|
8,010,931 |
|
|
|
228,082,556 |
|
|
|
9,719,327 |
|
|
|
15,751,988 |
|
|
Dividends
and Distributions to AMPS Shareholders From |
Net investment income |
|
|
|
|
|
|
|
|
(7,996 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations |
|
|
|
$ |
71,801,810 |
|
|
$ |
4,027,649 |
|
|
$ |
13,840,765 |
|
|
$ |
306,889,574 |
|
|
$ |
16,459,117 |
|
|
$ |
26,264,660 |
|
1
|
| Related to TOBs, VMTP Shares, RVMTP Shares and/or VRDP
Shares. |
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
47
|
| |
Statements of Changes in Net Assets |
|
|
|
|
|
BlackRock California
Municipal Income Trust (BFZ)
|
|
|
|
BlackRock Florida
Municipal 2020 Term Trust (BFO)
|
|
|
|
|
Year Ended July 31,
|
|
|
|
Year Ended July 31,
|
Increase (Decrease) in Net
Assets Applicable to Common Shareholders: |
|
|
|
2014 |
|
2013 |
|
|
|
2014 |
|
2013 |
|
Operations |
Net investment income |
|
|
|
$ |
27,717,696 |
|
|
$ |
28,429,898 |
|
|
|
|
|
|
$ |
2,597,875 |
|
|
$ |
3,765,338 |
|
Net realized gain (loss) |
|
|
|
|
2,256,752 |
|
|
|
2,411,035 |
|
|
|
|
|
|
|
(12,643 |
) |
|
|
74,831 |
|
Net change in unrealized appreciation/depreciation |
|
|
|
|
41,827,362 |
|
|
|
(59,039,937 |
) |
|
|
|
|
|
|
1,450,413 |
|
|
|
(3,636,735 |
) |
Dividends and Distributions to AMPS Shareholders from net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,996 |
) |
|
|
(77,727 |
) |
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations |
|
|
|
|
71,801,810 |
|
|
|
(28,199,004 |
) |
|
|
|
|
|
|
4,027,649 |
|
|
|
125,707 |
|
|
Dividends
to Common Shareholders From1 |
Net investment income |
|
|
|
|
(29,544,099 |
) |
|
|
(29,708,677 |
) |
|
|
|
|
|
|
(3,417,928 |
) |
|
|
(4,238,341 |
) |
|
Capital
Share Transactions |
Reinvestment of common dividends |
|
|
|
|
|
|
|
|
603,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shareholders |
Total increase (decrease) in net assets applicable to Common Shareholders |
|
|
|
|
42,257,711 |
|
|
|
(57,304,249 |
) |
|
|
|
|
|
|
609,721 |
|
|
|
(4,112,634 |
) |
Beginning of year |
|
|
|
|
462,273,421 |
|
|
|
519,577,670 |
|
|
|
|
|
|
|
85,138,722 |
|
|
|
89,251,356 |
|
End of year |
|
|
|
$ |
504,531,132 |
|
|
$ |
462,273,421 |
|
|
|
|
|
|
$ |
85,748,443 |
|
|
$ |
85,138,722 |
|
Undistributed net investment income, end of year |
|
|
|
$ |
3,935,343 |
|
|
$ |
5,714,846 |
|
|
|
|
|
|
$ |
2,300,229 |
|
|
$ |
3,364,492 |
|
1
|
| Dividends for annual periods determined in accordance with federal
income tax regulations. |
|
|
|
|
BlackRock Municipal Income Investment
Trust (BBF)
|
|
|
|
BlackRock Municipal Target Term Trust
(BTT)
|
|
|
|
|
Year Ended July 31,
|
|
|
|
Year Ended July 31,
2014 |
|
Period August 30, 20121
to July 31, 2013 |
Increase (Decrease) in Net Assets
Applicable to Common Shareholders: |
|
|
|
2014 |
|
2013 |
|
|
|
|
|
Operations |
Net investment income |
|
|
|
$ |
5,829,834 |
|
|
$ |
5,731,148 |
|
|
|
|
|
|
$ |
78,807,018 |
|
|
$ |
55,675,510 |
|
Net realized gain (loss) |
|
|
|
|
(2,402,970 |
) |
|
|
788,098 |
|
|
|
|
|
|
|
(34,054,206 |
) |
|
|
(53,519,716 |
) |
Net change in unrealized appreciation/depreciation |
|
|
|
|
10,413,901 |
|
|
|
(14,231,581 |
) |
|
|
|
|
|
|
262,136,762 |
|
|
|
(292,001,738 |
) |
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations |
|
|
|
|
13,840,765 |
|
|
|
(7,712,335 |
) |
|
|
|
|
|
|
306,889,574 |
|
|
|
(289,845,944 |
) |
|
Dividends and Distributions to Common Shareholders
From2 |
Net investment income |
|
|
|
|
(5,822,882 |
) |
|
|
(5,822,394 |
) |
|
|
|
|
|
|
(76,622,483 |
) |
|
|
(61,454,151 |
) |
Return of capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,726,833 |
) |
|
|
(7,606,056 |
) |
Decrease in net assets resulting from dividends and distributions to Common Shareholders |
|
|
|
|
(5,822,882 |
) |
|
|
(5,822,394 |
) |
|
|
|
|
|
|
(78,349,316 |
) |
|
|
(69,060,207 |
) |
|
Capital Share Transactions |
Net proceeds from the issuance of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,477,804,008 |
|
Net proceeds from the underwriters over allotment option exercised |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
202,937,500 |
|
Reinvestment of common dividends |
|
|
|
|
|
|
|
|
52,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets derived from capital share transactions |
|
|
|
|
|
|
|
|
52,510 |
|
|
|
|
|
|
|
|
|
|
|
1,680,741,508 |
|
|
Net Assets Applicable to Common Shareholders |
Total increase (decrease) in net assets applicable to Common Shareholders |
|
|
|
|
8,017,883 |
|
|
|
(13,482,219 |
) |
|
|
|
|
|
|
228,540,258 |
|
|
|
1,321,835,357 |
|
Beginning of period |
|
|
|
|
93,144,882 |
|
|
|
106,627,101 |
|
|
|
|
|
|
|
1,321,835,357 |
|
|
|
|
|
End of period |
|
|
|
$ |
101,162,765 |
|
|
$ |
93,144,882 |
|
|
|
|
|
|
$ |
1,550,375,615 |
|
|
$ |
1,321,835,357 |
|
Undistributed (distributions in excess of) net investment income |
|
|
|
$ |
675,210 |
|
|
$ |
643,833 |
|
|
|
|
|
|
$ |
(3,567,803 |
) |
|
$ |
(5,713,373 |
) |
1
|
| Commencement of operations. |
2
|
| Dividends and distributions for annual periods determined in
accordance with federal income tax regulations. |
See Notes to Financial
Statements.
48 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Statements of Changes in Net Assets |
|
|
|
|
|
BlackRock New Jersey Municipal Income
Trust (BNJ)
|
|
|
|
BlackRock New York Municipal Term
Trust (BNY)
|
|
|
|
|
Year Ended July 31,
|
|
|
|
Year Ended July 31,
|
Increase (Decrease) in Net Assets
Applicable to Common Shareholders: |
|
|
|
2014 |
|
2013 |
|
|
|
2014 |
|
2013 |
|
Operations |
Net investment income |
|
|
|
$ |
6,739,790 |
|
|
$ |
6,744,653 |
|
|
|
|
|
|
$ |
10,512,672 |
|
|
$ |
11,286,518 |
|
Net realized gain (loss) |
|
|
|
|
(1,263,047 |
) |
|
|
1,157,320 |
|
|
|
|
|
|
|
(5,927,653 |
) |
|
|
521,461 |
|
Net change in unrealized appreciation/depreciation |
|
|
|
|
10,982,374 |
|
|
|
(14,524,962 |
) |
|
|
|
|
|
|
21,679,641 |
|
|
|
(27,196,710 |
) |
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations |
|
|
|
|
16,459,117 |
|
|
|
(6,622,989 |
) |
|
|
|
|
|
|
26,264,660 |
|
|
|
(15,388,731 |
) |
|
Dividends to Common Shareholders From1 |
Net investment income |
|
|
|
|
(6,900,107 |
) |
|
|
(7,215,408 |
) |
|
|
|
|
|
|
(10,693,021 |
) |
|
|
(11,222,319 |
) |
|
Capital Share Transactions |
Reinvestment of common dividends |
|
|
|
|
|
|
|
|
291,605 |
|
|
|
|
|
|
|
|
|
|
|
567,300 |
|
|
Net Assets Applicable to Common Shareholders |
Total increase (decrease) in net assets applicable to Common Shareholders |
|
|
|
|
9,559,010 |
|
|
|
(13,546,792 |
) |
|
|
|
|
|
|
15,571,639 |
|
|
|
(26,043,750 |
) |
Beginning of year |
|
|
|
|
109,949,791 |
|
|
|
123,496,583 |
|
|
|
|
|
|
|
173,976,272 |
|
|
|
200,020,022 |
|
End of year |
|
|
|
$ |
119,508,801 |
|
|
$ |
109,949,791 |
|
|
|
|
|
|
$ |
189,547,911 |
|
|
$ |
173,976,272 |
|
Undistributed net investment income, end of year |
|
|
|
$ |
1,641,707 |
|
|
$ |
1,753,402 |
|
|
|
|
|
|
$ |
3,009,264 |
|
|
$ |
3,133,594 |
|
1
|
| Dividends for annual periods determined in accordance with federal
income tax regulations. |
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
49
|
Year Ended July 31,
2014 |
|
|
|
BlackRock
California
Municipal
Income Trust
(BFZ) |
|
BlackRock
Municipal Income
Investment
Trust (BBF) |
|
BlackRock
Municipal Target Term
Trust (BTT) |
|
BlackRock New Jersey
Municipal Income Trust (BNJ) |
|
BlackRock New York Municipal
Income Trust (BNY) |
|
Cash Provided by Operating Activities |
Net increase in net assets resulting from operations, excluding dividends to AMPS Shareholders |
|
|
|
$ |
71,801,810 |
|
|
$ |
13,840,765 |
|
|
$ |
306,889,574 |
|
|
$ |
16,459,117 |
|
|
$ |
26,264,660 |
|
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease interest receivable |
|
|
|
|
557,104 |
|
|
|
(3,792 |
) |
|
|
609,369 |
|
|
|
278,559 |
|
|
|
59,425 |
|
Increase in variation margin receivable on financial futures contracts |
|
|
|
|
(14,952 |
) |
|
|
(3,000 |
) |
|
|
(90,462 |
) |
|
|
(3,375 |
) |
|
|
(7,734 |
) |
Increase in prepaid expenses |
|
|
|
|
(20,425 |
) |
|
|
(20,742 |
) |
|
|
(31,403 |
) |
|
|
(21,648 |
) |
|
|
(20,097 |
) |
Increase in cash pledged for financial futures contracts |
|
|
|
|
(436,000 |
) |
|
|
(88,000 |
) |
|
|
(2,377,002 |
) |
|
|
(99,000 |
) |
|
|
(226,000 |
) |
Increase (decrease) in investment advisory fees payable |
|
|
|
|
(12,805 |
) |
|
|
91 |
|
|
|
(80,463 |
) |
|
|
3,950 |
|
|
|
1,893 |
|
Decrease in interest expense and fees payable |
|
|
|
|
(54,615 |
) |
|
|
(8,090 |
) |
|
|
(45,726 |
) |
|
|
(2,268 |
) |
|
|
(5,785 |
) |
Increase (decrease) in other accrued expenses payable |
|
|
|
|
(9,988 |
) |
|
|
(13,076 |
) |
|
|
(34,411 |
) |
|
|
8,443 |
|
|
|
(23,785 |
) |
Increase (decrease) in Officers and Trustees fees payable |
|
|
|
|
6,224 |
|
|
|
1,371 |
|
|
|
(5,771 |
) |
|
|
1,670 |
|
|
|
2,544 |
|
Net realized gain (loss) on investments |
|
|
|
|
(3,029,451 |
) |
|
|
2,264,333 |
|
|
|
24,217,360 |
|
|
|
1,100,589 |
|
|
|
5,374,968 |
|
Net unrealized gain on investments |
|
|
|
|
(41,750,551 |
) |
|
|
(10,386,491 |
) |
|
|
(262,089,257 |
) |
|
|
(10,951,537 |
) |
|
|
(21,615,419 |
) |
Amortization of premium and accretion of discount on investments |
|
|
|
|
2,646,614 |
|
|
|
396,241 |
|
|
|
2,129,897 |
|
|
|
244,349 |
|
|
|
689,210 |
|
Premiums received from options written |
|
|
|
|
|
|
|
|
|
|
|
|
1,809,269 |
|
|
|
|
|
|
|
|
|
Proceeds from sales of long-term investments |
|
|
|
|
228,605,740 |
|
|
|
39,122,224 |
|
|
|
218,978,118 |
|
|
|
37,396,166 |
|
|
|
76,921,794 |
|
Purchases of long-term investments |
|
|
|
|
(175,733,467 |
) |
|
|
(37,299,503 |
) |
|
|
(167,291,004 |
) |
|
|
(40,480,529 |
) |
|
|
(76,234,140 |
) |
Net proceeds from sales (purchases) of short-term securities |
|
|
|
|
(951,177 |
) |
|
|
3,411,994 |
|
|
|
49,728,059 |
|
|
|
3,511,827 |
|
|
|
6,603,494 |
|
Premiums paid on closing options written |
|
|
|
|
|
|
|
|
|
|
|
|
(1,229,170 |
) |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
|
81,604,061 |
|
|
|
11,214,325 |
|
|
|
171,086,977 |
|
|
|
7,446,313 |
|
|
|
17,785,028 |
|
|
Cash Used for Financing Activities |
Proceeds from TOB trust certificates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,616,997 |
|
Repayments of TOB trust certificates |
|
|
|
|
(51,957,794 |
) |
|
|
(5,413,880 |
) |
|
|
(91,559,997 |
) |
|
|
(591,052 |
) |
|
|
(18,711,593 |
) |
Cash dividends paid to Common Shareholders |
|
|
|
|
(29,719,406 |
) |
|
|
(5,822,882 |
) |
|
|
(79,318,767 |
) |
|
|
(6,900,107 |
) |
|
|
(10,693,021 |
) |
Cash payments for offering costs |
|
|
|
|
|
|
|
|
|
|
|
|
(208,650 |
) |
|
|
|
|
|
|
|
|
Decrease in bank overdraft |
|
|
|
|
(4,413 |
) |
|
|
(3,855 |
) |
|
|
(35,623 |
) |
|
|
(3,933 |
) |
|
|
|
|
Increase in amortization of deferred offering costs |
|
|
|
|
77,552 |
|
|
|
26,292 |
|
|
|
36,060 |
|
|
|
48,779 |
|
|
|
57,170 |
|
Net cash used for financing activities |
|
|
|
|
(81,604,061 |
) |
|
|
(11,214,325 |
) |
|
|
(171,086,977 |
) |
|
|
(7,446,313 |
) |
|
|
(18,730,447 |
) |
|
Cash |
Net decrease in cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(945,419 |
) |
Cash at beginning of year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
945,419 |
|
Cash at end of year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information |
Cash paid during the year for interest |
|
|
|
$ |
2,706,494 |
|
|
$ |
257,185 |
|
|
$ |
6,839,603 |
|
|
$ |
759,669 |
|
|
$ |
1,176,639 |
|
See Notes to Financial
Statements.
50 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Financial Highlights |
BlackRock California
Municipal Income Trust (BFZ)
|
|
|
|
|
Year Ended July 31,
|
|
|
|
|
|
2014 |
|
2013 |
|
2012 |
|
2011 |
|
2010 |
|
Per Share Operating Performance |
Net asset value, beginning of year |
|
|
|
$ |
14.50 |
|
|
$ |
16.32 |
|
|
$ |
13.88 |
|
|
$ |
14.28 |
|
|
$ |
12.71 |
|
Net investment income1 |
|
|
|
|
0.87 |
|
|
|
0.89 |
|
|
|
0.95 |
|
|
|
0.98 |
|
|
|
1.00 |
|
Net realized and unrealized gain (loss) |
|
|
|
|
1.39 |
|
|
|
(1.78 |
) |
|
|
2.42 |
|
|
|
(0.45 |
) |
|
|
1.50 |
|
Dividends to AMPS shareholders from net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
Net increase (decrease) from investment operations |
|
|
|
|
2.26 |
|
|
|
(0.89 |
) |
|
|
3.36 |
|
|
|
0.51 |
|
|
|
2.48 |
|
Dividends to Common Shareholders from net investment income2 |
|
|
|
|
(0.93 |
) |
|
|
(0.93 |
) |
|
|
(0.92 |
) |
|
|
(0.91 |
) |
|
|
(0.91 |
) |
Net asset value, end of year |
|
|
|
$ |
15.83 |
|
|
$ |
14.50 |
|
|
$ |
16.32 |
|
|
$ |
13.88 |
|
|
$ |
14.28 |
|
Market price, end of year |
|
|
|
$ |
14.41 |
|
|
$ |
13.63 |
|
|
$ |
16.64 |
|
|
$ |
13.16 |
|
|
$ |
14.21 |
|
|
Total Return Applicable to Common
Shareholders3 |
Based on net asset value |
|
|
|
|
16.48% |
|
|
|
(5.81)% |
|
|
|
24.98% |
|
|
|
4.05% |
|
|
|
20.15% |
|
Based on market price |
|
|
|
|
12.80% |
|
|
|
(13.17)% |
|
|
|
34.40% |
|
|
|
(0.86)% |
|
|
|
22.55% |
|
|
Ratios to Average Net Assets Applicable to Common
Shareholders |
Total expenses |
|
|
|
|
1.59% |
|
|
|
1.63% |
|
|
|
1.49% |
4 |
|
|
1.46% |
4 |
|
|
1.36% |
4 |
Total expenses after fees waived and paid indirectly |
|
|
|
|
1.59% |
|
|
|
1.63% |
|
|
|
1.46% |
4 |
|
|
1.39% |
4 |
|
|
1.27% |
4 |
Total expenses after fees waived and paid indirectly and excluding interest expense, and fees and amortization of offering
costs5 |
|
|
|
|
1.03% |
|
|
|
1.01% |
|
|
|
1.07% |
4,6 |
|
|
1.12% |
4 |
|
|
1.04% |
4 |
Net investment income |
|
|
|
|
5.78% |
|
|
|
5.49% |
|
|
|
6.28% |
4 |
|
|
7.19% |
4 |
|
|
6.94% |
4 |
Dividends to AMPS Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
0.05% |
|
|
|
0.15% |
|
|
|
0.15% |
|
Net investment income to Common Shareholders |
|
|
|
|
5.78% |
|
|
|
5.49% |
|
|
|
6.23% |
|
|
|
7.04% |
|
|
|
6.79% |
|
|
Supplemental Data |
Net assets applicable to Common Shareholders, end of year (000) |
|
|
|
$ |
504,531 |
|
|
$ |
462,273 |
|
|
$ |
519,578 |
|
|
$ |
441,745 |
|
|
$ |
454,299 |
|
AMPS outstanding at $25,000 liquidation preference, end of year (000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
171,325 |
|
|
$ |
171,325 |
|
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) |
|
|
|
$ |
171,300 |
|
|
$ |
171,300 |
|
|
$ |
171,300 |
|
|
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
|
|
25% |
|
|
|
22% |
|
|
|
30% |
|
|
|
36% |
|
|
|
47% |
|
Asset coverage per AMPS at $25,000 liquidation preference, end of year (000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
89,460 |
|
|
$ |
91,293 |
|
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year |
|
|
|
$ |
394,531 |
|
|
$ |
369,862 |
|
|
$ |
403,314 |
|
|
|
|
|
|
|
|
|
1
|
| Based on average Common Shares outstanding. |
2
|
| Dividends for annual periods determined in accordance with federal
income tax regulations. |
3
|
| Total returns based on market price, which can be significantly
greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges
and assumes the reinvestment of dividends and distributions. |
4
|
| Does not reflect the effect of dividends to AMPS
Shareholders. |
5
|
| Interest expense, fees and amortization of offering costs relate
to TOBS and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP
Shares, respectively. |
6
|
| For the year ended July 31, 2012, the total expense ratio after
fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs and remarketing fees was 1.04%. |
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
51
|
| |
Financial Highlights |
BlackRock Florida
Municipal 2020 Term Trust (BFO)
|
|
|
|
|
Year Ended July 31,
|
|
|
|
|
|
2014 |
|
2013 |
|
2012 |
|
2011 |
|
2010 |
|
Per Share Operating Performance |
Net asset value, beginning of year |
|
|
|
$ |
15.31 |
|
|
$ |
16.05 |
|
|
$ |
14.94 |
|
|
$ |
14.91 |
|
|
$ |
13.35 |
|
Net investment income1 |
|
|
|
|
0.47 |
|
|
|
0.68 |
|
|
|
0.85 |
|
|
|
0.92 |
|
|
|
0.95 |
|
Net realized and unrealized gain (loss) |
|
|
|
|
0.25 |
|
|
|
(0.65 |
) |
|
|
0.98 |
|
|
|
(0.19 |
) |
|
|
1.31 |
|
Dividends to AMPS shareholders from net investment income |
|
|
|
|
(0.00 |
)2 |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
Net increase (decrease) from investment operations |
|
|
|
|
0.72 |
|
|
|
0.02 |
|
|
|
1.81 |
|
|
|
0.70 |
|
|
|
2.23 |
|
Dividends to Common Shareholders from net investment income3 |
|
|
|
|
(0.61 |
) |
|
|
(0.76 |
) |
|
|
(0.70 |
) |
|
|
(0.67 |
) |
|
|
(0.67 |
) |
Net asset value, end of year |
|
|
|
$ |
15.42 |
|
|
$ |
15.31 |
|
|
$ |
16.05 |
|
|
$ |
14.94 |
|
|
$ |
14.91 |
|
Market price, end of year |
|
|
|
$ |
15.16 |
|
|
$ |
15.12 |
|
|
$ |
15.60 |
|
|
$ |
13.91 |
|
|
$ |
14.30 |
|
|
Total Return Applicable to Common
Shareholders4 |
Based on net asset value |
|
|
|
|
4.84% |
|
|
|
0.12% |
|
|
|
12.44% |
|
|
|
5.07% |
|
|
|
17.35% |
|
Based on market price |
|
|
|
|
4.36% |
|
|
|
1.73% |
|
|
|
17.38% |
|
|
|
2.00% |
|
|
|
22.05% |
|
|
Ratios to Average Net Assets Applicable to Common
Shareholders |
Total expenses5 |
|
|
|
|
0.74% |
|
|
|
0.92% |
|
|
|
1.06% |
|
|
|
1.13% |
|
|
|
1.14% |
|
Total expenses after fees waived and paid indirectly5 |
|
|
|
|
0.74% |
|
|
|
0.92% |
|
|
|
1.06% |
|
|
|
1.13% |
|
|
|
1.13% |
|
Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,6 |
|
|
|
|
0.74% |
7 |
|
|
0.92% |
7 |
|
|
1.06% |
7 |
|
|
1.09% |
|
|
|
1.09% |
|
Net investment income5 |
|
|
|
|
3.05% |
|
|
|
4.23% |
|
|
|
5.48% |
|
|
|
6.29% |
|
|
|
6.72% |
|
Dividends to AMPS Shareholders |
|
|
|
|
0.01% |
|
|
|
0.09% |
|
|
|
0.12% |
|
|
|
0.19% |
|
|
|
0.22% |
|
Net investment income to Common Shareholders |
|
|
|
|
3.04% |
|
|
|
4.14% |
|
|
|
5.36% |
|
|
|
6.10% |
|
|
|
6.50% |
|
|
Supplemental Data |
Net assets applicable to Common Shareholders, end of year (000) |
|
|
|
$ |
85,748 |
|
|
$ |
85,139 |
|
|
$ |
89,251 |
|
|
$ |
83,111 |
|
|
$ |
82,929 |
|
AMPS Shares outstanding at $25,000 liquidation preference, end of year (000) |
|
|
|
$ |
625 |
|
|
$ |
19,100 |
|
|
$ |
42,900 |
|
|
$ |
42,900 |
|
|
$ |
42,900 |
|
Portfolio turnover rate |
|
|
|
|
1% |
|
|
|
9% |
|
|
|
32% |
|
|
|
6% |
|
|
|
6% |
|
Asset coverage per AMPS Share at $25,000 liquidation preference, end of year (000) |
|
|
|
$ |
3,454,938 |
|
|
$ |
136,438 |
|
|
$ |
77,011 |
|
|
$ |
73,433 |
|
|
$ |
73,329 |
|
1
|
| Based on average Common Shares outstanding. |
2
|
| Amount is greater than $(0.005) per share. |
3
|
| Dividends for annual periods determined in accordance with federal
income tax regulations. |
4
|
| Total returns based on market price, which can be significantly
greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges
and assumes the reinvestment of dividends and distributions. |
5
|
| Does not reflect the effect of dividends to AMPS
Shareholders. |
6
|
| Interest expense and fees relate to TOBs. See Note 3 of the Notes
to Financial Statements for details of municipal bonds transferred to TOBs. |
7
|
| For the years ended July 31, 2014, July 31, 2013 and July 31,
2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees and remarketing fees was 0.73%, 0.87% and
0.97%, respectively. |
See Notes to Financial
Statements.
52 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Financial Highlights |
BlackRock Municipal
Income Investment Trust (BBF)
|
|
|
|
|
Year Ended July 31,
|
|
|
|
|
|
2014 |
|
2013 |
|
2012 |
|
2011 |
|
2010 |
|
Per Share Operating Performance |
Net asset value, beginning of year |
|
|
|
$ |
13.89 |
|
|
$ |
15.91 |
|
|
$ |
13.40 |
|
|
$ |
13.91 |
|
|
$ |
12.71 |
|
Net investment income1 |
|
|
|
|
0.87 |
|
|
|
0.85 |
|
|
|
0.86 |
|
|
|
0.97 |
|
|
|
0.92 |
|
Net realized and unrealized gain (loss) |
|
|
|
|
1.20 |
|
|
|
(2.00 |
) |
|
|
2.55 |
|
|
|
(0.56 |
) |
|
|
1.20 |
|
Dividends to AMPS Shareholders from net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
(0.00 |
)2 |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
Net increase (decrease) from investment operations |
|
|
|
|
2.07 |
|
|
|
(1.15 |
) |
|
|
3.41 |
|
|
|
0.39 |
|
|
|
2.10 |
|
Dividends to Common Shareholders from net investment income3 |
|
|
|
|
(0.87 |
) |
|
|
(0.87 |
) |
|
|
(0.90 |
) |
|
|
(0.90 |
) |
|
|
(0.90 |
) |
Net asset value, end of year |
|
|
|
$ |
15.09 |
|
|
$ |
13.89 |
|
|
$ |
15.91 |
|
|
$ |
13.40 |
|
|
$ |
13.91 |
|
Market price, end of year |
|
|
|
$ |
13.48 |
|
|
$ |
12.47 |
|
|
$ |
16.25 |
|
|
$ |
12.74 |
|
|
$ |
13.90 |
|
|
Total Return Applicable to Common
Shareholders4 |
Based on net asset value |
|
|
|
|
16.06% |
|
|
|
(7.56)% |
|
|
|
26.21% |
|
|
|
3.15% |
|
|
|
17.04% |
|
Based on market price |
|
|
|
|
15.49% |
|
|
|
(18.75)% |
|
|
|
35.59% |
|
|
|
(1.86)% |
|
|
|
19.01% |
|
|
Ratios to Average Net Assets Applicable to Common
Shareholders |
Total expenses |
|
|
|
|
1.85% |
|
|
|
1.83% |
|
|
|
1.99% |
5 |
|
|
1.60% |
5 |
|
|
1.46% |
5 |
Total expenses after fees waived and paid indirectly |
|
|
|
|
1.85% |
|
|
|
1.83% |
|
|
|
1.99% |
5 |
|
|
1.60% |
5 |
|
|
1.37% |
5 |
Total expenses after fees waived and paid indirectly and excluding interest expense, and fees and amortization of offering
costs6 |
|
|
|
|
1.56% |
7 |
|
|
1.49% |
7 |
|
|
1.61% |
5,7 |
|
|
1.33% |
5 |
|
|
1.17% |
5 |
Net investment income |
|
|
|
|
6.09% |
|
|
|
5.41% |
|
|
|
5.89% |
5 |
|
|
7.35% |
5 |
|
|
6.84% |
5 |
Dividends to AMPS Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
0.02% |
|
|
|
0.14% |
|
|
|
0.16% |
|
Net investment income to Common Shareholders |
|
|
|
|
6.09% |
|
|
|
5.41% |
|
|
|
5.87% |
|
|
|
7.21% |
|
|
|
6.68% |
|
|
Supplemental Data |
Net assets applicable to Common Shareholders, end of year (000) |
|
|
|
$ |
101,163 |
|
|
$ |
93,145 |
|
|
$ |
106,627 |
|
|
$ |
89,726 |
|
|
$ |
93,073 |
|
AMPS outstanding at $25,000 liquidation preference, end of year (000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
34,250 |
|
|
$ |
34,250 |
|
VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
|
|
|
$ |
34,200 |
|
|
$ |
34,200 |
|
|
$ |
34,200 |
|
|
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
|
|
22% |
|
|
|
33% |
|
|
|
39% |
|
|
|
24% |
|
|
|
46% |
|
Asset coverage per AMPS at $25,000 liquidation preference, end of year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
90,493 |
|
|
$ |
92,938 |
|
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year |
|
|
|
$ |
395,798 |
|
|
$ |
372,353 |
|
|
$ |
411,775 |
|
|
|
|
|
|
|
|
|
1
|
| Based on average Common Shares outstanding. |
2
|
| Amount is greater than $(0.005) per share. |
3
|
| Dividends for annual periods determined in accordance with federal
income tax regulations. |
4
|
| Total returns based on market price, which can be significantly
greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges
and assumes the reinvestment of dividends and distributions. |
5
|
| Does not reflect the effect of dividends to VRDP
Shareholders. |
6
|
| Interest expense, fees and amortization of offering costs relate
to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP
Shares, respectively. |
7
|
| For the years ended July 31, 2014, July 31, 2013 and July 31,
2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and
remarketing fees was 1.19%, 1.17% and 1.31%, respectively. |
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
53
|
| |
Financial Highlights |
BlackRock Municipal
Target Term Trust (BTT)
|
|
|
|
|
Year Ended July 31,
2014 |
|
Period August 30,
20121 to July 31, 2013 |
|
Per Share Operating Performance |
Net asset value, beginning of period |
|
|
|
$ |
18.75 |
|
|
$ |
23.88 |
2 |
Net investment income3 |
|
|
|
|
1.12 |
|
|
|
0.80 |
|
Net realized and unrealized gain (loss) |
|
|
|
|
3.23 |
|
|
|
(4.95 |
) |
Net increase (decrease) from investment operations |
|
|
|
|
4.35 |
|
|
|
(4.15 |
) |
Dividends and distributions from4: |
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
(1.09 |
) |
|
|
(0.87 |
) |
Return of capital |
|
|
|
|
(0.02 |
) |
|
|
(0.11 |
) |
Total dividends and distributions |
|
|
|
|
(1.11 |
) |
|
|
(0.98 |
) |
Net asset value, end of period |
|
|
|
$ |
21.99 |
|
|
$ |
18.75 |
|
Market price, end of period |
|
|
|
$ |
19.57 |
|
|
$ |
18.42 |
|
|
Total Return Applicable to Common
Shareholders5 |
Based on net asset value |
|
|
|
|
24.50% |
|
|
|
(18.00)% |
6 |
Based on market price |
|
|
|
|
12.78% |
|
|
|
(23.05)% |
6 |
|
Ratios to Average Net Assets Applicable to Common
Shareholders |
Total expenses |
|
|
|
|
1.22% |
|
|
|
0.99% |
7 |
Total expenses after fees waived and paid indirectly |
|
|
|
|
1.21% |
|
|
|
0.99% |
7 |
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs8
|
|
|
|
|
0.72% |
|
|
|
0.64% |
7 |
Net investment income to Common Shareholders |
|
|
|
|
5.61% |
|
|
|
3.78% |
7 |
|
Supplemental Data |
Net assets applicable to Common Shareholders, end of period (000) |
|
|
|
$ |
1,550,376 |
|
|
$ |
1,321,835 |
|
RVMTP Shares outstanding at $5,000,000 liquidation value, end of period (000) |
|
|
|
$ |
750,000 |
|
|
$ |
750,000 |
|
Portfolio turnover rate |
|
|
|
|
6% |
|
|
|
39% |
|
Asset coverage per RVMTP Shares at $5,000,000 liquidation value, end of period |
|
|
|
$ |
15,335,837 |
|
|
$ |
13,812,236 |
|
1
|
| Commencement of operations. |
2
|
| Net asset value, beginning of period, reflects a deduction of
$1.125 per share sales charge from the initial offering price of $25.00 per share. |
3
|
| Based on average Common Share outstanding. |
4
|
| Dividends and distributions for annual periods determined in
accordance with federal income tax regulations. |
5
|
| Total returns based on market price, which can be significantly
greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges
and assumes the reinvestment of dividends and distributions. |
6
|
| Aggregate total return. |
8
|
| Interest expense, fees and amortization of offering cost relate to
TOBs and/or RVMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and RVMTP
Shares, respectively. |
See Notes to Financial
Statements.
54 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Financial Highlights |
BlackRock New Jersey
Municipal Income Trust (BNJ)
|
|
|
|
|
Year Ended July 31,
|
|
|
|
|
|
2014 |
|
2013 |
|
2012 |
|
2011 |
|
2010 |
|
Per Share Operating Performance |
Net asset value, beginning of year |
|
|
|
$ |
14.36 |
|
|
$ |
16.17 |
|
|
$ |
14.07 |
|
|
|
14.38 |
|
|
$ |
12.78 |
|
Net investment income1 |
|
|
|
|
0.88 |
|
|
|
0.88 |
|
|
|
0.95 |
|
|
|
0.98 |
|
|
|
1.02 |
|
Net realized and unrealized gain (loss) |
|
|
|
|
1.27 |
|
|
|
(1.75 |
) |
|
|
2.11 |
|
|
|
(0.32 |
) |
|
|
1.54 |
|
Dividends to AMPS shareholders from net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
Net increase (decrease) from investment operations |
|
|
|
|
2.15 |
|
|
|
(0.87 |
) |
|
|
3.05 |
|
|
|
0.63 |
|
|
|
2.53 |
|
Dividends to Common Shareholders from net investment income2 |
|
|
|
|
(0.90 |
) |
|
|
(0.94 |
) |
|
|
(0.95 |
) |
|
|
(0.94 |
) |
|
|
(0.93 |
) |
Net asset value, end of year |
|
|
|
$ |
15.61 |
|
|
$ |
14.36 |
|
|
$ |
16.17 |
|
|
$ |
14.07 |
|
|
$ |
14.38 |
|
Market price, end of year |
|
|
|
$ |
14.68 |
|
|
$ |
13.67 |
|
|
$ |
17.67 |
|
|
$ |
14.10 |
|
|
$ |
14.82 |
|
|
Total Return Applicable to Common
Shareholders3 |
Based on net asset value |
|
|
|
|
16.01% |
|
|
|
(5.82)% |
|
|
|
22.25% |
|
|
|
4.74% |
|
|
|
20.22% |
|
Based on market price |
|
|
|
|
14.60% |
|
|
|
(17.95)% |
|
|
|
33.30% |
|
|
|
1.85% |
|
|
|
13.11% |
|
|
Ratios to Average Net Assets Applicable to Common
Shareholders |
Total expenses |
|
|
|
|
1.89% |
|
|
|
1.81% |
|
|
|
1.47% |
4 |
|
|
1.25% |
4 |
|
|
1.23% |
4 |
Total expenses after fees waived and paid indirectly |
|
|
|
|
1.89% |
|
|
|
1.81% |
|
|
|
1.46% |
4 |
|
|
1.24% |
4 |
|
|
1.13% |
4 |
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering
costs5 |
|
|
|
|
1.18% |
|
|
|
1.13% |
|
|
|
1.18% |
4,
6 |
|
|
1.22% |
4 |
|
|
1.12% |
4 |
Net investment income |
|
|
|
|
5.96% |
|
|
|
5.51% |
|
|
|
6.28% |
4 |
|
|
7.09% |
4 |
|
|
7.42% |
4 |
Dividends to AMPS Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
0.08% |
|
|
|
0.21% |
|
|
|
0.23% |
|
Net investment income to Common Shareholders |
|
|
|
|
5.96% |
|
|
|
5.51% |
|
|
|
6.20% |
|
|
|
6.88% |
|
|
|
7.19% |
|
|
Supplemental Data |
Net assets applicable to Common Shareholders, end of year (000) |
|
|
|
$ |
119,509 |
|
|
$ |
109,950 |
|
|
$ |
123,497 |
|
|
$ |
107,226 |
|
|
$ |
109,257 |
|
AMPS outstanding at $25,000 liquidation preference, end of year (000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
59,100 |
|
|
$ |
59,100 |
|
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) |
|
|
|
$ |
59,100 |
|
|
$ |
59,100 |
|
|
$ |
59,100 |
|
|
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
|
|
20% |
|
|
|
9% |
|
|
|
20% |
|
|
|
20% |
|
|
|
11% |
|
Asset coverage per AMPS at $25,000 liquidation preference, end of year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
70,358 |
|
|
$ |
71,218 |
|
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year |
|
|
|
$ |
302,215 |
|
|
$ |
286,040 |
|
|
$ |
308,962 |
|
|
|
|
|
|
|
|
|
1
|
| Based on average common shares outstanding. |
2
|
| Dividends for annual periods determined in accordance with federal
income tax regulations. |
3
|
| Total returns based on market price, which can be significantly
greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges
and assumes the reinvestment of dividends and distributions. |
4
|
| Do not reflect the effect of dividends to AMPS
Shareholders. |
5
|
| Interest expense, fees and amortization of offering costs relate
to TOBs and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP
Shares, respectively. |
6
|
| For the year ended July 31,
2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs and
remarketing fees was 1.14%. |
See Notes to Financial
Statements.
ANNUAL REPORT |
JULY 31, 2014 |
55
|
| |
Financial Highlights |
BlackRock New York
Municipal Income Trust (BNY)
|
|
|
|
|
Year Ended July 31
|
|
|
|
|
|
2014 |
|
2013 |
|
2012 |
|
2011 |
|
2010 |
|
Per Share Operating Performance |
Net asset value, beginning of year |
|
|
|
$ |
13.47 |
|
|
$ |
15.53 |
|
|
$ |
13.87 |
|
|
$ |
14.27 |
|
|
$ |
12.71 |
|
Net investment income1 |
|
|
|
|
0.81 |
|
|
|
0.87 |
|
|
|
0.93 |
|
|
|
1.01 |
|
|
|
1.04 |
|
Net realized and unrealized gain (loss) |
|
|
|
|
1.23 |
|
|
|
(2.06 |
) |
|
|
1.73 |
|
|
|
(0.39 |
) |
|
|
1.54 |
|
Dividends to AMPS shareholders from net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
Net increase (decrease) from investment operations |
|
|
|
|
2.04 |
|
|
|
(1.19 |
) |
|
|
2.65 |
|
|
|
0.59 |
|
|
|
2.55 |
|
Dividends to Common Shareholders from net investment income2 |
|
|
|
|
(0.83 |
) |
|
|
(0.87 |
) |
|
|
(0.99 |
) |
|
|
(0.99 |
) |
|
|
(0.99 |
) |
Net asset value, end of year |
|
|
|
$ |
14.68 |
|
|
$ |
13.47 |
|
|
$ |
15.53 |
|
|
$ |
13.87 |
|
|
$ |
14.27 |
|
Market price, end of year |
|
|
|
$ |
13.79 |
|
|
$ |
13.16 |
|
|
$ |
16.73 |
|
|
$ |
14.20 |
|
|
$ |
15.11 |
|
|
Total Return Applicable to Common
Shareholders3 |
Based on net asset value |
|
|
|
|
15.98% |
|
|
|
(8.18)% |
|
|
|
19.62% |
|
|
|
4.39% |
|
|
|
20.35% |
|
Based on market price |
|
|
|
|
11.51% |
|
|
|
(16.73)% |
|
|
|
25.87% |
|
|
|
0.94% |
|
|
|
16.11% |
|
|
Ratios to Average Net Assets Applicable to Common
Shareholders |
Total expenses |
|
|
|
|
1.82% |
|
|
|
1.85% |
|
|
|
1.49% |
4 |
|
|
1.27% |
4 |
|
|
1.25% |
4 |
Total expenses after fees waived and paid indirectly |
|
|
|
|
1.82% |
|
|
|
1.84% |
|
|
|
1.49% |
4 |
|
|
1.27% |
4 |
|
|
1.16% |
4 |
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering
costs5 |
|
|
|
|
1.13% |
|
|
|
1.14% |
|
|
|
1.18% |
4,6 |
|
|
1.22% |
4 |
|
|
1.11% |
4 |
Net investment income |
|
|
|
|
5.89% |
|
|
|
5.71% |
|
|
|
6.34% |
4 |
|
|
7.35% |
4 |
|
|
7.50% |
4 |
Dividends to AMPS Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
0.08% |
|
|
|
0.20% |
|
|
|
0.22% |
|
Net investment income to Common Shareholders |
|
|
|
|
5.89% |
|
|
|
5.71% |
|
|
|
6.26% |
|
|
|
7.15% |
|
|
|
7.28% |
|
|
Supplemental Data |
Net assets applicable to Common Shareholders, end of year (000) |
|
|
|
$ |
189,548 |
|
|
$ |
173,976 |
|
|
$ |
200,020 |
|
|
$ |
177,993 |
|
|
$ |
182,372 |
|
AMPS outstanding at $25,000 liquidation preference, end of year (000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
94,500 |
|
|
$ |
94,500 |
|
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) |
|
|
|
$ |
94,500 |
|
|
$ |
94,500 |
|
|
$ |
94,500 |
|
|
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
|
|
26% |
|
|
|
23% |
|
|
|
24% |
|
|
|
17% |
|
|
|
16% |
|
Asset coverage per AMPS at $25,000 liquidation preference, end of year (000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
72,089 |
|
|
$ |
73,248 |
|
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year |
|
|
|
$ |
300,580 |
|
|
$ |
284,102 |
|
|
$ |
311,661 |
|
|
|
|
|
|
|
|
|
1
|
| Based on average Common Shares outstanding. |
2
|
| Dividends for annual periods determined in accordance with federal
income tax regulations. |
3
|
| Total returns based on market price, which can significantly
greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges
and assumes the reinvestment of dividends and distributions. |
4
|
| Do not reflect the effect of dividends to AMPS
shareholders. |
5
|
| Interest expense, fees and amortization of offering costs relate
to TOBs and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP
Shares, respectively. |
6
|
| For the year ended July 31, 2012, the total expense ratio after
fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs and remarketing fees was 1.13%. |
See Notes to Financial
Statements.
56 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Notes to Financial Statements |
|
1. Organization:
BlackRock California Municipal Income Trust (BFZ),
BlackRock Municipal Income Investment Trust (BBF), BlackRock Municipal Target Term Trust (BTT), BlackRock New Jersey Municipal
Income Trust (BNJ), BlackRock New York Municipal Income Trust (BNY)(collectively, the Income Trusts) and BlackRock
Florida Municipal 2020 Term Trust (BFO) are organized as Delaware statutory trusts. The Income Trusts and BFO are referred to herein
collectively as the Trusts. The Trusts are registered under the 1940 Act, as non-diversified, closed-end management investment companies.
The Boards of Trustees of the Trusts are collectively referred to throughout this report as the Board of Trustees or the Board,
and the trustees thereof are collectively referred to throughout this report as Trustees. The Trusts determine and make available for
publication the NAVs of their Common Shares on a daily basis.
2. Significant Accounting Policies:
The Trusts financial statements are prepared in conformity
with accounting principles generally accepted in the United States of America (U.S. GAAP), which may require management to make estimates
and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Trust is considered an
investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of
significant accounting policies followed by the Trusts:
Valuation: U.S. GAAP defines fair value as the price the
Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The
Trusts determine the fair values of their financial instruments at market value using independent dealers or pricing services under policies approved
by the Board of the Trusts. The BlackRock Global Valuation Methodologies Committee (the Global Valuation Committee) is the committee formed
by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Trusts for all financial
instruments.
Municipal investments (including commitments to purchase such
investments on a when-issued basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of
a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers,
pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial
futures contracts traded on exchanges are valued at their last sale price. Short-term securities with remaining maturities of 60 days or less may be
valued at amortized cost, which approximates fair value. Investments in open-end registered investment companies are valued at NAV each business
day.
Exchange-traded options are valued at the mean between the last
bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued
at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior days price will be used, unless
it is determined that the prior days price no longer reflects the fair value of the option. Over-the-counter (OTC) options are valued
by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the
underlying instruments.
In the event that the application of these methods of valuation
results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available,
the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair
value (Fair Value Assets). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to
determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arms-length transaction. Fair
value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the
principles of fair value measurement. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly
basis.
Segregation and Collateralization: In cases where a Trust
enters into certain investments (e.g., financial futures contracts), or certain borrowings (e.g., TOBs) that would be senior securities for
1940 Act purposes, the Trust may segregate or designate on its books and records cash or liquid securities having a market value at least equal to the
amount of the Trusts future obligations under such investments or borrowings. Doing so allows the investment or borrowing to be excluded from
treatment as a senior security. Furthermore, if required by an exchange or counterparty agreement, the Trust may be required to
deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or
obligations.
Investment Transactions and Investment Income: For
financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and
losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income,
including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.
ANNUAL REPORT |
JULY 31, 2014 |
57
|
| |
Notes to Financial Statements (continued) |
|
Dividends and Distributions: Dividends from net investment
income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend date. The portion of distributions that exceeds a
Trusts current and accumulated earnings and profits, which are measured on a tax basis, will constitute a non-taxable return of capital. The
character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 9.
Deferred Compensation Plan: Under the Deferred Compensation
Plan (the Plan) approved by each Trusts Board, the independent 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 certain other BlackRock Closed-End Funds selected by the Independent Trustees. This has the same economic effect for the Independent Trustees
as if the Independent Trustees had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.
The Plan is not funded and obligations thereunder represent
general unsecured claims against the general assets of each Trust. Deferred compensation liabilities are included in officers and trustees
fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance
with the Plan.
Recent Accounting Standard: In June 2014, the Financial
Accounting Standards Board issued guidance to improve the financial reporting of reverse repurchase agreements and other similar transactions. The
guidance will require expanded disclosure for entities that enter into reverse repurchase agreements and similar transactions accounted for as secured
borrowings. It is effective for financial statements with fiscal years beginning on or after December 15, 2014 and interim periods within those fiscal
years. Management is evaluating the impact, if any, of this guidance on the Trusts financial statement disclosures.
Other: Expenses directly related to a Trust are charged to
that Trust. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appropriate
methods.
The Trusts have an arrangement with the custodian whereby fees may
be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The
custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody
charges.
3. Securities and Other Investments:
Zero-Coupon Bonds: The Trusts may invest in zero-coupon
bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may
experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.
Forward Commitments and When-Issued Delayed Delivery
Securities: The Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement
of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Trusts may purchase securities under
such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement
date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security
is worth. In addition, the Trusts are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery
basis, the Trusts assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default
by the counterparty, the Trusts maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in
the Schedules of Investments.
Municipal Bonds Transferred to TOBs: The Trusts leverage
their assets through the use of TOBs. A TOB is a special purpose entity established by a third party sponsor, into which a fund, or an agent on behalf
of a fund, transfers municipal bonds into a trust (TOB Trust). 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 (TOB Trust Certificates), which are sold to third party investors, and residual certificates (TOB Residuals),
which are generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. If multiple funds participate in the same
TOB, the rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation.
The TOB Residuals held by a Trust include the right of a Trust (1)
to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates at par plus accrued interest upon the
occurrence of certain mandatory tender events defined in the TOB agreements, and (2) to transfer, subject to a specified number of days prior
notice, a corresponding share of the municipal bonds from the TOB to a Trust. The TOB may also be collapsed without the consent of a Trust, as the TOB
Residual holder, upon the occurrence of certain termination 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 renewal of the
liquidity support agreement, a substantial decline in market value of the municipal bond and a judgment or ruling that interest on the municipal bond
is subject to federal income taxation. Upon the occurrence of a termination event, the TOB would generally be
58 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Notes to Financial Statements (continued) |
|
liquidated in full with the proceeds typically applied first
to any accrued fees owed to the trustee, remarketing agent and liquidity provider, and then to the holders of the TOB Trust Certificates up to par plus
accrued interest owed on the TOB Trust Certificates, with the balance paid out to the TOB Residual holder. During the year ended July 31, 2014, no TOBs
in which the Trusts participated were terminated without the consent of the Trusts.
The cash received by the TOB from the sale of the TOB Trust
Certificates, less transaction expenses, is paid to a Trust. The Trust typically invests the cash received in additional municipal bonds. Each
Trusts transfer of the municipal bonds to a TOB Trust is accounted for as a secured borrowing; therefore, the municipal bonds deposited into a
TOB are presented in the Trusts Schedules of Investments and the TOB Trust Certificates are shown in other liabilities in the Statements of
Assets and Liabilities. The carrying amount of each Trusts payable to the holder of the TOB Trust Certificates, as reported in the Statements of
Assets and Liabilities as TOB Trust Certificates, approximates its fair value.
The Trusts may invest in TOBs on either a non-recourse or recourse
basis. TOB Trusts are typically supported by a liquidity facility provided by a bank or other financial institution (the Liquidity
Provider) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider
of par plus accrued interest on any business day prior to the occurrence of the termination events described above. When a Trust invests in TOBs on a
non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event, the Liquidity
Provider will typically liquidate all or a portion of the municipal securities held in the TOB Trust and then fund, on a net basis, the balance, if
any, of the amount owed under the liquidity facility over the liquidation proceeds (the Liquidation Shortfall). If a Trust invests in a TOB
on a recourse basis, the Trust will typically enter into a reimbursement agreement with the Liquidity Provider where the Trust is required to repay the
Liquidity Provider the amount of any Liquidation Shortfall. As a result, a Trust investing in a recourse TOB will bear the risk of loss with respect to
any Liquidation Shortfall. If multiple funds participate in any such TOB, these losses will be shared ratably, including the maximum potential amounts
owed by the Trusts at July 31, 2014, in proportion to their participation. The recourse TOB Trusts are identified in the Schedules of Investments
including the maximum potential amounts owed by the Trusts at July 31, 2014.
Interest income, including amortization and accretion of premiums
and discounts, from the underlying municipal bonds 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 shown as interest expense, fees and amortization of
offering costs in the Statements of Operations. The TOB Trust Certificates have interest rates that generally reset weekly and their holders have the
option to tender such certificates to the TOB for redemption at par at each reset date. At July 31, 2014, the aggregate value of the underlying
municipal bonds transferred to TOBs, the related liability for TOB Trust Certificates and the range of interest rates on the liability for TOB Trust
Certificates were as follows:
|
|
|
|
Underlying Municipal
Bonds Transferred to
TOBs
|
|
Liability for TOB
Trust Certificates
|
|
Range of Interest
Rates
|
BFZ
|
|
|
|
$ |
227,494,774 |
|
|
$ |
106,697,554 |
|
|
0.06% 0.09% |
BFO
|
|
|
|
$ |
294,758 |
|
|
$ |
190,000 |
|
|
0.12%
|
BBF
|
|
|
|
$ |
56,780,789 |
|
|
$ |
29,682,276 |
|
|
0.06% 0.31% |
BTT
|
|
|
|
$ |
377,825,374 |
|
|
$ |
184,119,974 |
|
|
0.06% 0.15% |
BNJ
|
|
|
|
$ |
30,430,857 |
|
|
$ |
17,301,282 |
|
|
0.06% 0.31% |
BNY |
|
|
|
$ |
50,876,970 |
|
|
$ |
28,460,581 |
|
|
0.06% 0.26% |
For the year ended July 31, 2014, the Trusts average TOB
Trust Certificates outstanding and the daily weighted average interest rate, including fees, were as follows:
|
|
|
|
Average TOB
Trust Certificates
Outstanding
|
|
Daily Weighted
Average Interest Rate
|
BFZ
|
|
|
|
$ |
136,317,740 |
|
|
|
0.61 |
% |
BFO
|
|
|
|
$ |
224,767 |
|
|
|
0.48 |
% |
BBF
|
|
|
|
$ |
30,195,257 |
|
|
|
0.65 |
% |
BTT
|
|
|
|
$ |
187,193,709 |
|
|
|
0.78 |
% |
BNJ
|
|
|
|
$ |
17,312,373 |
|
|
|
0.75 |
% |
BNY
|
|
|
|
$ |
27,023,256 |
|
|
|
0.62 |
% |
Should short-term interest rates rise, the Trusts
investments in TOBs may adversely affect the Trusts net investment income and dividends to Common Shareholders. Also, fluctuations in the market
value of municipal bonds deposited into the TOB Trust may adversely affect the Trusts NAVs per share.
4. Derivative Financial Instruments:
The Trusts engage in various portfolio investment strategies using
derivative contracts both to increase the returns of the Trusts and/or to economically hedge their exposure to certain risks such as credit risk and
interest rate risk. These contracts may be transacted on an exchange or OTC.
ANNUAL REPORT |
JULY 31, 2014 |
59
|
| |
Notes to Financial Statements (continued) |
|
Financial Futures Contracts: The Trusts purchase and/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 agreements between the Trusts and a counterparty to buy or sell a specific quantity of an
underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are
settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the
settlement date.
Upon entering into a financial futures contract, the Trusts are
required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contracts size and
risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Securities deposited as initial
margin are designated on the Schedules of Investments and cash deposited, if any, is recorded on the Statements of Assets and Liabilities as cash
pledged for financial futures contracts. 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 variation margin. Variation margin is recorded by the Trusts as
unrealized appreciation or depreciation and, if applicable, as a receivable or payable for variation margin in the Statements of Assets and
Liabilities.
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 contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the
underlying assets.
Options: The Trusts purchase and write call and put options
to increase or decrease their exposure to underlying instruments including interest rate risk. A call option gives the purchaser (holder) of the option
the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the
exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the
writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Trusts
purchase (write) an option, an amount equal to the premium paid (received) by the Trusts is reflected as an asset (liability). The amount of the asset
(liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or
sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or
deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Trusts enter into a closing transaction), the Trusts
realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction
exceeds the premiums received or paid). When the Trusts write a call option, such option is covered, meaning that the Trusts hold the
underlying instrument subject to being called by the option counterparty. When the Trusts write a put option, such option is covered by cash in an
amount sufficient to cover the obligation.
In purchasing and writing options, the Trusts bear the risk of an
unfavorable change in the value of the underlying instrument or the risk that the Trusts may not be able to enter into a closing transaction due to an
illiquid market. Exercise of a written option could result in the Trusts purchasing or selling a security when it otherwise would not, or at a price
different from the current market value.
For BTT, transactions in options written for the year ended July
31, 2014 were as follows:
|
|
|
|
Calls
|
|
|
|
|
Contracts
|
|
Premiums Received
|
Outstanding options, beginning of year |
|
|
|
|
|
|
|
|
|
|
Options written |
|
|
|
|
13,000 |
|
|
$ |
1,809,269 |
|
Options exercised |
|
|
|
|
|
|
|
|
|
|
Options expired |
|
|
|
|
(12,000 |
) |
|
|
(1,591,729 |
) |
Options closed |
|
|
|
|
(1,000 |
) |
|
|
(217,540 |
) |
Outstanding options, end of year |
|
|
|
|
|
|
|
|
|
|
60 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Notes to Financial Statements (continued) |
|
The following is a summary of the Trusts derivative
financial instruments categorized by risk exposure:
Fair Values of Derivative
Financial Instruments as of July 31, 2014
|
|
|
|
|
Value
|
|
|
|
|
Derivative Assets
|
|
|
Statements of Assets and
Liabilities Location
|
|
BFZ
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
Interest rate contracts |
|
Net unrealized appreciation/depreciation1 |
|
$ |
76,811 |
|
|
$ |
27,410 |
|
|
$ |
47,505 |
|
|
$ |
30,837 |
|
|
$ |
64,222 |
|
1 |
|
Includes cumulative appreciation/depreciation on financial futures
contracts as reported in the Schedules of Investments. Only current days variation margin is reported within the Statements of Assets and
Liabilities. |
The Effect of Derivative
Financial Instruments in the Statements of Operations Year Ended July 31, 2014
|
|
Net Realized Gain (Loss) From
|
|
Net Change in Unrealized
Appreciation/ Depreciation on
|
|
|
|
|
BFZ
|
|
BBF
|
|
BTT
|
|
BFZ
|
|
BBF
|
|
BTT
|
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial futures contracts |
|
|
|
$ |
(772,699 |
) |
|
$ |
(138,637 |
) |
|
$ |
(9,836,846 |
) |
|
$ |
76,811 |
|
|
$ |
27,410 |
|
|
$ |
47,505 |
|
Options2 |
|
|
|
|
|
|
|
|
|
|
|
|
(5,219,548 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
$ |
(772,699 |
) |
|
$ |
(138,637 |
) |
|
$ |
(15,056,394 |
) |
|
$ |
76,811 |
|
|
$ |
27,410 |
|
|
$ |
47,505 |
|
|
|
|
|
|
|
BNJ
|
|
BNY
|
|
|
|
BNJ
|
|
BNY
|
|
|
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial futures contracts |
|
|
|
$ |
(162,458 |
) |
|
$ |
(552,685 |
) |
|
|
|
|
|
$ |
30,837 |
|
|
$ |
64,222 |
|
|
|
2 |
|
Options purchased are included in the net realized
gain (loss) from investments and net change in unrealized appreciation/depreciation on investments. |
For the year ended July 31, 2014, the average quarterly balances
of outstanding derivative financial instruments were as follows:
|
|
|
|
BFZ |
|
BBF |
|
BTT |
|
BNJ |
|
BNY |
Financial futures contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of contracts purchased |
|
|
|
|
|
|
|
|
|
|
|
|
7,055 |
3 |
|
|
|
|
|
|
|
|
Average number of contracts sold |
|
|
|
|
342 |
|
|
|
74 |
|
|
|
1,001 |
|
|
|
87 |
|
|
|
166 |
|
Average notional value of contracts purchased |
|
|
|
|
|
|
|
|
|
|
|
$ |
890,488,259 |
3 |
|
|
|
|
|
|
|
|
Average notional value of contracts sold |
|
|
|
$ |
42,918,262 |
|
|
$ |
9,249,859 |
|
|
$ |
125,630,172 |
|
|
$ |
10,912,547 |
|
|
$ |
20,700,172 |
|
Options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of option contracts purchased |
|
|
|
|
|
|
|
|
|
|
|
|
4,825 |
|
|
|
|
|
|
|
|
|
Average number of option contracts written |
|
|
|
|
|
|
|
|
|
|
|
|
(3,250 |
) |
|
|
|
|
|
|
|
|
Average notional amount of option contracts purchased |
|
|
|
|
|
|
|
|
|
|
|
$ |
4,825,000 |
|
|
|
|
|
|
|
|
|
Average notional amount of option contracts written |
|
|
|
|
|
|
|
|
|
|
|
$ |
(3,250,000 |
) |
|
|
|
|
|
|
|
|
3 |
|
Actual amounts for the period are shown due to
limited outstanding derivative financial instruments as of each quarter. |
Counterparty Credit Risk: A derivative contract may suffer
a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument.
Losses can also occur if the counterparty does not perform under the contract.
A Trusts risk of loss from counterparty credit risk on OTC
derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by such Trust. Options written by the Trusts do
not typically give rise to counterparty credit risk, as options written generally obligate the Trusts, and not the counterparty, to
perform.
With exchange-traded purchased options and futures, there is less
counterparty credit risk to the Trusts since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default.
The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While
offset rights may exist under applicable law, a Trust does not have a contractual right of offset against a clearing broker or clearinghouse in the
event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in
exchange-traded futures with respect to initial and variation margin that is held in a clearing brokers customer accounts. While clearing brokers
are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at
that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be
allocated on a pro rata basis across all the clearing brokers customers, potentially resulting in losses to the Trusts.
ANNUAL REPORT |
JULY 31, 2014 |
61
|
| |
Notes to Financial Statements (continued) |
|
5. Investment Advisory Agreement and Other Transactions with
Affiliates:
The PNC Financial Services Group, Inc. is the largest stockholder
and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (BlackRock).
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 Trusts portfolio and provides the
necessary personnel, facilities, equipment and certain other services to the operations of each Trust. For such services, each Trust pays the Manager a
monthly fee based on a percentage of each Trusts average weekly net assets, except for BTT, which is based on average daily net assets, at the
following annual rates:
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
Investment advisory fee |
|
|
|
|
0.58 |
% |
|
|
0.50 |
% |
|
|
0.60 |
% |
|
|
0.40 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Average weekly net assets are the average weekly value of each
Trusts total assets minus its total accrued liabilities.
The Manager voluntarily agreed to waive its investment advisory
fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds.
However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Trusts
investment in other affiliated investment companies, if any. These amounts are shown as fees waived by Manager in the Statements of Operations. For the
year ended July 31, 2014, the amounts waived were as follows:
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
Amounts waived |
|
|
|
$ |
2,380 |
|
|
$ |
1,183 |
|
|
$ |
917 |
|
|
$ |
183,965 |
|
|
$ |
4,042 |
|
|
$ |
2,840 |
|
Effective June 9, 2014, BTT implemented a 0.05% voluntary waiver
of its investment advisory fees.
Prior to July 1, 2014, BlackRock Financial Management, Inc.
(BFM), an affiliate of the Manager, served as a sub-advisor to BFZ, BFO, BBF, BNJ and BNY and BlackRock Investment Management, LLC
(BIM), an affiliate of the Manager, served as a sub-advisor to BTT pursuant to sub-advisory agreements with the Manager, and received for
their services a monthly fee from the Manager at an annual rate equal to a percentage of the investment advisory fees paid by each Trust to the Manager
under the Investment Advisory Agreements. Effective July 1, 2014, the sub-advisory agreements between the Manager and BFM, with respect to each Trust,
expired and the sub-advisory agreement with BIM was terminated.
Certain officers and/or Trustees of the Trusts are officers and/or
directors of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts Chief Compliance
Officer, which is included in officer and directors in the Statements of Operations.
The Trusts may purchase securities from, or sell securities to, an
affiliated fund provided the affiliation is due solely to having a common investment advisor, common officers, or common trustees. For the year ended
July 31, 2014, the purchase and sale transactions with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act for were as
follows:
|
|
|
|
BFZ
|
|
BBF
|
Purchases |
|
|
|
$ |
1,567,211 |
|
|
|
|
|
Sales |
|
|
|
|
|
|
|
$ |
1,404,681 |
|
6. Purchases and Sales:
Purchases and sales of investments, excluding short-term
securities, for the year ended July 31, 2014 were as follows:
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
Purchases |
|
|
|
$ |
195,758,434 |
|
|
$ |
696,855 |
|
|
$ |
34,015,177 |
|
|
$ |
149,698,955 |
|
|
$ |
40,480,529 |
|
|
$ |
75,279,614 |
|
Sales |
|
|
|
$ |
243,128,015 |
|
|
$ |
16,906,200 |
|
|
$ |
37,691,926 |
|
|
$ |
214,847,666 |
|
|
$ |
37,090,825 |
|
|
$ |
75,610,115 |
|
62 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Notes to Financial Statements (continued) |
|
7. Income Tax Information:
It is the Trusts policy to comply with the requirements of
the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of their taxable
income to their shareholders. Therefore, no federal income tax provision is required.
Each Trust files U.S. federal and various state and local tax
returns. No income tax returns are currently under examination. The statute of limitations for BFZ, BFO, BBF, BNJ and BNY U.S. federal tax returns
remains open for each of the four years ended July 31, 2014. The statute of limitations for BTTs U.S. federal tax returns remain open for the
period ended July 31, 2013 and the year ended July 31, 2014. The statutes of limitations on each Trusts state and local tax returns may remain
open for an additional year depending upon the jurisdiction.
Management has analyzed tax laws and regulations and their
application to the Trusts facts and circumstances and does not believe that there are any uncertain tax positions that require recognition of a
tax liability.
U.S. GAAP requires that certain components of net assets be
adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values
per share. As of July 31, 2014, the following permanent differences attributable to the expiration of capital loss carryforwards, amortization methods
on fixed income securities, distributions received from a regulated investment company, the reclassification of distributions, non-deductible expenses,
and the retention of tax-exempt income were reclassified to the following accounts:
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
Paid-in capital |
|
|
|
$ |
(653,593 |
) |
|
$ |
238,053 |
|
|
$ |
(26,292 |
) |
|
$ |
(49,527 |
) |
|
$ |
(49,839 |
) |
|
$ |
(58,866 |
) |
Undistributed (distributions in excess of) net investment income |
|
|
|
$ |
46,900 |
|
|
$ |
(236,214 |
) |
|
$ |
24,425 |
|
|
$ |
(38,965 |
) |
|
$ |
48,622 |
|
|
$ |
56,019 |
|
Accumulated net realized loss |
|
|
|
$ |
606,693 |
|
|
$ |
(1,839 |
) |
|
$ |
1,867 |
|
|
$ |
88,492 |
|
|
$ |
1,217 |
|
|
$ |
2,847 |
|
The tax character of distributions paid was as
follows:
|
|
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
Tax-exempt income1 |
|
|
|
|
7/31/14 |
|
|
$ |
31,357,063 |
|
|
$ |
3,425,924 |
|
|
$ |
5,875,954 |
|
|
$ |
81,946,044 |
|
|
$ |
7,526,454 |
|
|
$ |
11,694,539 |
|
|
|
|
|
|
7/31/13 |
|
|
$ |
31,649,406 |
|
|
$ |
4,314,224 |
|
|
$ |
5,909,789 |
|
|
$ |
64,323,779 |
|
|
$ |
7,879,321 |
|
|
$ |
12,286,661 |
|
Ordinary income2 |
|
|
|
|
7/31/14 |
|
|
|
2,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7/31/13 |
|
|
|
|
|
|
|
1,844 |
|
|
|
305 |
|
|
|
4,482 |
|
|
|
5,655 |
|
|
|
6,287 |
|
Tax
return of capital |
|
|
|
|
7/31/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,726,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7/31/13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,606,056 |
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
7/31/14 |
|
|
$ |
31,359,551 |
|
|
$ |
3,425,924 |
|
|
$ |
5,875,954 |
|
|
$ |
83,672,877 |
|
|
$ |
7,526,454 |
|
|
$ |
11,694,539 |
|
|
|
|
|
|
7/31/13 |
|
|
$ |
31,649,406 |
|
|
$ |
4,316,068 |
|
|
$ |
5,910,094 |
|
|
$ |
71,934,317 |
|
|
$ |
7,884,976 |
|
|
$ |
12,292,948 |
|
1 |
|
The Trusts designate these amounts paid during the
fiscal year ended July 31, 2014, as exempt-interest dividends. |
2 |
|
Ordinary income consists primarily of taxable income
recognized from market discount. Additionally, all ordinary income distributions are comprised of interest related dividends for non-U.S. residents and
are eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations. |
As of July 31, 2014, the tax components of accumulated net
earnings (losses) were as follows:
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
Undistributed tax-exempt Income |
|
|
|
$ |
3,352,283 |
|
|
$ |
2,361,172 |
|
|
$ |
368,670 |
|
|
|
|
|
|
$ |
1,341,826 |
|
|
$ |
2,950,539 |
|
Undistributed ordinary income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
103,908 |
|
|
|
2,041 |
|
Capital loss carryforwards |
|
|
|
|
(17,328,812 |
) |
|
|
(751,184 |
) |
|
|
(10,053,284 |
) |
|
$ |
(65,058,716 |
) |
|
|
(1,846,784 |
) |
|
|
(10,793,148 |
) |
Net
unrealized gains (losses)3 |
|
|
|
|
71,936,651 |
|
|
|
3,750,567 |
|
|
|
15,988,165 |
|
|
|
(46,465,469 |
) |
|
|
11,422,962 |
|
|
|
14,636,812 |
|
Qualified late-year loss4 |
|
|
|
|
|
|
|
|
(8,628 |
) |
|
|
(186,759 |
) |
|
|
(9,399,096 |
) |
|
|
(261,020 |
) |
|
|
(389,121 |
) |
Total
|
|
|
|
$ |
57,960,122 |
|
|
$ |
5,351,927 |
|
|
$ |
6,116,792 |
|
|
$ |
(120,923,281 |
) |
|
$ |
10,760,892 |
|
|
$ |
6,407,123 |
|
3 |
|
The differences between book-basis and tax-basis net
unrealized gains (losses) were attributable primarily to the tax deferral of losses on wash sales, amortization and accretion methods of premiums and
discounts on fixed income securities, the accrual of income on securities in default, treatment of residual interests in TOB trusts, the deferral of
compensation to Trustees and the realization for tax purposes of unrealized gains/losses on certain futures contracts. |
4 |
|
The Trusts have elected to defer certain qualified
late-year losses and recognize such losses in the next taxable year. |
ANNUAL REPORT |
JULY 31, 2014 |
63
|
| |
Notes to Financial Statements (continued) |
|
As of July 31, 2014, the Trusts had capital loss carryforwards
available to offset future realized capital gains through the indicated expiration dates as follows:
Expires July 31,
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
2015 |
|
|
|
$ |
465,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
186,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
3,782,470 |
|
|
$ |
394,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,408,109 |
|
2018 |
|
|
|
|
12,894,572 |
|
|
|
62,100 |
|
|
$ |
6,208,886 |
|
|
|
|
|
|
$ |
842,367 |
|
|
|
1,480,575 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
651,464 |
|
|
|
|
|
|
|
27,464 |
|
|
|
1,982,931 |
|
No
expiration date1 |
|
|
|
|
|
|
|
|
294,787 |
|
|
|
3,192,934 |
|
|
$ |
65,058,716 |
|
|
|
976,953 |
|
|
|
4,921,533 |
|
Total
|
|
|
|
$ |
17,328,812 |
|
|
$ |
751,184 |
|
|
$ |
10,053,284 |
|
|
$ |
65,058,716 |
|
|
$ |
1,846,784 |
|
|
$ |
10,793,148 |
|
1 |
|
Must be utilized prior to losses subject to
expiration. |
During the year ended July 31, 2014, BFZ utilized $1,110,909 of
its capital loss carryforward.
As of July 31, 2014, gross unrealized appreciation and
depreciation based on cost for federal income tax purposes were as follows:
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
cost |
|
|
|
$ |
600,496,749 |
|
|
$ |
81,748,180 |
|
|
$ |
117,705,021 |
|
|
$ |
2,319,554,126 |
|
|
$ |
166,089,479 |
|
|
$ |
266,523,051 |
|
Gross unrealized appreciation |
|
|
|
$ |
72,399,309 |
|
|
$ |
5,189,548 |
|
|
$ |
16,551,253 |
|
|
$ |
18,274,611 |
|
|
$ |
13,512,335 |
|
|
$ |
17,702,983 |
|
Gross unrealized depreciation |
|
|
|
|
(393,713 |
) |
|
|
(1,385,117 |
) |
|
|
(546,087 |
) |
|
|
(59,099,634 |
) |
|
|
(2,069,582 |
) |
|
|
(2,949,196 |
) |
Net
unrealized appreciation(depreciation) |
|
|
|
$ |
72,005,596 |
|
|
$ |
3,804,431 |
|
|
$ |
16,005,166 |
|
|
$ |
(40,825,023 |
) |
|
$ |
11,442,753 |
|
|
$ |
14,753,787 |
|
8. Concentration, Market, and Credit Risk:
BFZ, BFO, BNJ, and BNY invest a substantial amount of their assets
in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states or U.S.
territories.
Many municipalities insure repayment of their bonds, which may
reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the
value of such insurance, and there is no guarantee that the insurer will meet its obligation.
In the normal course of business, the Trusts invest in securities
and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its
obligations (issuer credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly
involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or
global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Trusts may
be exposed to counterparty credit risk, or the risk that an entity with which the Trusts have unsettled or open transactions may fail to or be unable
to perform on its commitments. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that they believe have
the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which
potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from
counterparties. The extent of the Trusts exposure to market, issuer and counterparty credit risks with respect to these financial assets is
generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Trust.
The Trusts may hold a significant amount of bonds subject to calls
by the issuers at defined dates and prices. When bonds are called by issuers and the Trusts reinvest the proceeds received, such investments may be in
securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a
Trust.
The Trusts invest a significant portion of their assets in
fixed-income securities and/or use derivatives tied to the fixed income markets. See the Schedules of Investments for these securities and/or
derivatives. Changes in market interest rates or economic conditions, including the Federal Reserves decision in December 2013 to taper its
quantitative easing policy, may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other
fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Trusts may be subject to a greater risk of rising
interest rates due to the current period of historically low rates.
As of July 31, 2014, BFZ invested a significant portion of its
assets in securities in the County/City/Special District/School District and Utilities sectors. BNY invested a significant portion of its assets in
securities in the County/City/Special District/School District sector. BFO and BBF invested a significant portion of their assets in securities in the
County/City/Special District/School District and Transportation sectors. BTT and BNJ invested a significant portion of their assets in securities in
the Transportation sector. Changes in economic conditions affecting such sectors would have a greater impact on the Trusts and could affect the value,
income and/or liquidity of positions in such securities.
64 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Notes to Financial Statements (continued) |
|
On December 10, 2013, regulators published final rules
implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Volcker Rule), which prohibit banking
entities from engaging in proprietary trading of certain instruments and limit such entities investments in, and relationships with,
covered funds, as defined in the rules. Banking entities subject to the Volcker Rule are required to fully comply by July 21, 2015. The
Volcker Rule may preclude banking entities and their affiliates from (i) sponsoring TOB trust programs (as such programs are presently structured) and
(ii) continuing relationships with or services for existing TOB trust programs. As a result, TOB trusts may need to be restructured or unwound. There
can be no assurances that TOB trusts can be restructured, that new sponsors of TOB trusts will develop, or that alternative forms of leverage will be
available to the Trust. Any alternative forms of leverage may be more or less advantageous to the Trusts than existing TOB leverage.
TOB transactions constitute an important component of the
municipal bond market. Accordingly, implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand for
and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments could adversely affect the Trusts. The
ultimate impact of these rules on the TOB market and the overall municipal market is not yet certain.
9. Capital Share Transactions:
Each Trust is authorized to issue an unlimited number of shares,
all of which were initially classified as Common Shares. The par value for each Trusts Common Shares is $0.001. Each Trusts Board is
authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders.
At July 31, 2014, Common Shares of BTT owned by affiliates of the
Manager were 5,571 shares.
Upon commencement of operations, organization costs associated
with the establishment of BTT were expensed by BTT. Offering costs incurred in connection with BTTs offering of Common Shares have been charged
against the proceeds from the initial Common Share offering in the amount of $2,612,000.
Common Shares
For the years shown, shares issued and outstanding increased by
the following amounts as a result of dividend reinvestment:
Year Ended
|
|
|
|
BFZ
|
|
BBF
|
|
BNJ
|
|
BNY
|
July 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31, 2013 |
|
|
|
|
36,393 |
|
|
|
3,273 |
|
|
|
17,491 |
|
|
|
36,314 |
|
Shares issued and outstanding remained constant for BFO for years
ended July 31, 2014 and July 31, 2013.
For BTT, shares issued and outstanding for the period August 30,
2012 to July 31, 2013, increased by 62,000,000 from the initial public offering and 8,500,000 from the underwriters exercising its over-allotment
option.
Preferred Shares
The Trusts Preferred Shares rank prior to the Trusts
Common Shares as to the payment of dividends by the Trusts and distribution of assets upon dissolution or liquidation of the Trusts. The 1940 Act
prohibits the declaration of any dividend on the Trusts Common Shares or the repurchase of the Trusts Common Shares if the Trusts fail to
maintain the asset coverage of at least 200% of the liquidation preference of the outstanding Preferred Shares. In addition, pursuant to the Preferred
Shares governing instruments, the Trusts are restricted from declaring and paying dividends on classes of shares ranking junior to or on parity
with the Preferred Shares or repurchasing such shares if the Trusts fail to declare and pay dividends on the Preferred Shares, redeem any Preferred
Shares required to be redeemed under the Preferred Shares governing instruments or comply with the basic maintenance amount requirement of the
agencies rating the Preferred Shares.
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 Trusts 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.
VRDP Shares
BBF issued Series W-7 VRDP Shares, $100,000 liquidation value per
share, in a privately negotiated offering. The VRDP Shares were offered to qualified institutional buyers as defined pursuant to Rule 144A under the
Securities Act of 1933, as amended, (the Securities Act) and include a liquidity feature, pursuant to a liquidity agreement, that allows
the holders of VRDP Shares to have their shares purchased by the liquidity provider in the event of a failed
ANNUAL REPORT |
JULY 31, 2014 |
65
|
| |
Notes to Financial Statements (continued) |
|
remarketing. BBF is required to redeem the VRDP Shares owned
by the liquidity provider after six months of continuous, unsuccessful remarketing. Upon the occurrence of the first unsuccessful remarketing, BBF is
required to segregate liquid assets to fund the redemption. The VRDP Shares are subject to certain restrictions on transfer.
The VRDP Shares outstanding as of July 31, 2014 were as
follows:
|
|
|
|
Issue Date
|
|
Shares Issued
|
|
Aggregate Principal
|
|
Maturity Date
|
BBF |
|
|
|
|
9/15/11 |
|
|
|
342 |
|
|
$ |
34,200,000 |
|
|
|
10/01/41 |
|
BBF entered into a fee agreement with the liquidity provider that
may require a per annum liquidity fee payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of
Operations.
The initial fee agreement between BBF and the liquidity provider
was for a 364 day term and was scheduled to expire on September 15, 2012 and subsequently extended until March 15, 2013, unless renewed or terminated
in advance. On November 29, 2012, BBF entered into a new fee agreement with an alternate liquidity provider. The new fee agreement is for a two year
term and is scheduled to expire on December 4, 2014, unless renewed or terminated in advance. The change in liquidity provider resulted in a mandatory
tender of BBFs VRDP Shares on November 28, 2012 which were successfully remarketed by the remarketing agent.
In the event the fee agreement is not renewed or is terminated in
advance, and BBF does not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the
liquidity provider prior to the termination of the fee agreement. BBF is required to redeem any VRDP Shares purchased by the liquidity provider six
months after the purchase date. Immediately after the purchase of any VRDP Shares by the liquidity provider, BBF is required to begin to segregate
liquid assets with BBFs custodian to fund the redemption. There is no assurance BBF will replace such redeemed VRDP Shares with any other
preferred shares or other form of leverage.
BBF is required to redeem its VRDP Shares on the maturity date,
unless earlier redeemed or repurchased. Six months prior to the maturity date, BBF is required to begin to segregate liquid assets with BBFs
custodian to fund the redemption. In addition, BBF is required to redeem certain of its outstanding VRDP Shares if it fails to maintain certain asset
coverage, basic maintenance amount or leverage requirements.
Subject to certain conditions, the VRDP Shares may be redeemed, in
whole or in part, at any time at the option of BBF. The redemption price per VRDP Share is equal to the liquidation value per share plus any
outstanding unpaid dividends. In the event of an optional redemption of the VRDP Shares prior to the initial termination date of the fee agreement, BBF
must pay the liquidity provider fees on such redeemed VRDP Shares for the remaining term of the fee agreement up to the initial termination
date.
Dividends on the VRDP Shares are payable monthly at a variable
rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. In
the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among
other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed. At
the date of issuance, the VRDP Shares were assigned a long-term rating of Aaa from Moodys and AAA from Fitch. Subsequent to the issuance of the
VRDP Shares, Moodys completed a review of its methodology for rating securities issued by registered closed-end funds. As of July 31, 2014, the
VRDP Shares were assigned a long-term rating of Aa1 from Moodys under its new ratings methodology. The VRDP Shares continue to be assigned a
long-term rating of AAA from Fitch.
The short-term ratings on the VRDP Shares are directly related to
the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in
the short-term credit ratings of the VRDP Shares as rated by Moodys, Fitch and/or S&P. A change in the short-term credit rating of the
liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is
not directly related based upon either short-term rating. As of July 31, 2014, the short-term ratings of the liquidity provider and the VRDP Shares for
BFF were P-1, F1 and A1 as rated by Moodys, Fitch and/or S&P, respectively, which is within the two highest rating categories. The liquidity
provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the
two highest rating categories.
For financial reporting purposes, the VRDP Shares are considered
debt of the issuer; therefore, the liquidation value, which approximates fair value, of the VRDP Shares is recorded as a liability in the Statements of
Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the
dividends accrued and paid on the VRDP Shares are included as a component of interest expense, fees and amortization of offering costs in the
Statements of Operations. The VRDP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP Shares are generally classified
as tax-exempt income for tax-reporting purposes.
66 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Notes to Financial Statements (continued) |
|
BBF may incur remarketing fees of 0.10% on the aggregate principal
amount of all the VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. All of BBFs
VRDP Shares that were tendered for remarketing during the year ended July 31, 2014 were successfully remarketed, with an annualized dividend rate of
0.16%.
VMTP Shares
BFZ, BNJ and BNY (collectively, the VMTP Trusts), have
issued Series W-7 VMTP Shares, $100,000 liquidation value per share, in a privately negotiated offering and sale of VMTP Shares exempt from
registration under the Securities Act.
The VMTP Shares outstanding as of July 31, 2014 were as
follows:
|
|
|
|
Issue Date
|
|
Shares Issued
|
|
Aggregate Principal
|
|
Term Date
|
BFZ
|
|
|
|
|
3/22/12 |
|
|
|
1,713 |
|
|
$ |
171,300,000 |
|
|
|
4/01/15 |
|
BNJ
|
|
|
|
|
3/22/12 |
|
|
|
591 |
|
|
$ |
59,100,000 |
|
|
|
4/01/15 |
|
BNY |
|
|
|
|
3/22/12 |
|
|
|
945 |
|
|
$ |
94,500,000 |
|
|
|
4/01/15 |
|
Each VMTP Trust is required to redeem its VMTP Shares on the term
date, unless earlier redeemed or repurchased or unless extended. There is no assurance that the term of a Trusts VMTP Shares will be extended or
that a Trusts VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the
VMTP Shares. Six months prior to term date, each VMTP Trust is required to begin to segregate liquid assets with the Trusts custodian to fund the
redemption. In addition, each VMTP Trust is required to redeem certain of its outstanding VMTP Shares if it fails to maintain certain asset coverage,
basic maintenance amount or leverage requirements.
Subject to certain conditions, a Trusts VMTP Shares may be
redeemed, in whole or in part, at any time at the option of the Trust. The redemption price per VMTP Share is equal to the liquidation value per share
plus any outstanding unpaid dividends and applicable redemption premium. If the Trust redeems the VMTP Shares on a date that is one year or more prior
to the term date and the VMTP Shares are rated above A1/A+ by Moodys and Fitch, respectively, then such redemption is subject to a prescribed
redemption premium (up to 3% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining to the term date,
subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. The VMTP Shares are subject to certain
restrictions on transfer, and a Trust may also be required to register the VMTP Shares for sale under the Securities Act under certain circumstances.
In addition, amendments to the VMTP governing document generally require the consent of the holders of VMTP Shares.
Dividends on the VMTP Shares are declared daily and payable
monthly at a variable rate set weekly at a fixed rate spread to the Securities Industry and Financial Markets Association Municipal Swap Index (SIFMA).
The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by Moodys and Fitch. At the date of
issuance, the VMTP Shares were assigned long-term ratings of Aaa from Moodys and AAA from Fitch. Subsequent to the issuance of the VMTP Shares,
Moodys completed a review of its methodology for rating securities issued by registered closed-end funds. As of July 31, 2014, the VMTP Shares
were assigned a long-term rating of Aa2 from Moodys under its new rating methodology. The VMTP Shares continue to be assigned a long-term rating
of AAA from Fitch. The dividend rate on the VMTP Shares is subject to a step-up spread if the Trust fails to comply with certain provisions, including,
among other things, the timely payment of dividends, redemptions or gross-up payments, and maintaining certain asset coverage and leverage
requirements.
The average annualized dividend rates for the VMTP Shares for the
year ended July 31, 2014 were as follows:
|
|
|
|
BFZ
|
|
BNJ
|
|
BNY
|
Rate |
|
|
|
|
1.06 |
% |
|
|
1.06 |
% |
|
|
1.06 |
% |
For financial reporting purposes, the VMTP Shares are considered
debt of the issuer; therefore the liquidation value, which approximates fair value, of the VMTP Shares is recorded as a liability in the Statements of
Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the
dividends accrued and paid on the VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the
Statements of Operations. The VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VMTP Shares are generally classified
as tax-exempt income for tax-reporting purposes.
VMTP Shares issued and outstanding remained constant for the year
ended July 31, 2014.
ANNUAL REPORT |
JULY 31, 2014 |
67
|
| |
Notes to Financial Statements (continued) |
|
RVMTP Shares
BTT has issued Series W-7 RVMTP Shares, $5,000,000 liquidation
value per share, in a privately negotiated offering and sale of RVMTP Shares exempt from registration under the Securities Act.
The RVMTP Shares outstanding as of year ended July 31, 2014 were
as follows:
|
|
|
|
Issue Date
|
|
Shares Issued
|
|
Aggregate Principal
|
|
Term Date
|
BTT
|
|
|
|
|
1/10/2013 |
|
|
|
50 |
|
|
$ |
250,000,000 |
|
|
|
12/31/2030 |
|
|
|
|
|
|
1/30/2013 |
|
|
|
50 |
|
|
$ |
250,000,000 |
|
|
|
12/31/2030 |
|
|
|
|
|
|
2/20/2013 |
|
|
|
50 |
|
|
$ |
250,000,000 |
|
|
|
12/31/2030 |
|
BTT is required to redeem its RVMTP Shares on the term date or
within six months of an unsuccessful remarketing, unless earlier redeemed or repurchased. There is no assurance that BTTs RVMTP Shares will be
replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the RVMTP Shares. In addition, BTT is required
to redeem certain of its outstanding RVMTP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage
requirements.
Subject to certain conditions, BTTs RVMTP Shares may be
redeemed, in whole or in part, at any time at the option of BTT. The redemption price per RVMTP Share is equal to the liquidation value per share plus
any outstanding unpaid dividends. The RVMTP Shares are subject to certain restrictions on transfer outside of a remarketing. The RVMTP Shares are
subject to remarketing upon 90 days notice by holders of the RVMTP Shares and 30-days notice by BTT. Each remarketing must be at least six
months apart from the last remarketing. A holder of RVMTP Shares may submit notice of remarketing only if such holder requests a remarketing of at
least the lesser of (i) $100,000,000 of RVMTP Shares or (ii) all of the RVMTP Shares held by such holder. Amendments to the RVMTP governing document
generally require the consent of the holders of RVMTP Shares.
Dividends on the RVMTP Shares are declared daily and payable
monthly at a variable rate set weekly at a fixed rate spread to the SIFMA. The initial fixed rate spread was agreed upon by the Purchaser and BTT on
the initial date of issuance for the Series W-7 RVMTP Shares. The initial fixed rate spread may be adjusted at each remarketing or upon the agreement
between BTT and all of the holders of the RVMTP Shares. In the event all of the RVMTP Shares submitted for remarketing are not successfully remarketed,
a failed remarketing will occur, and all holders would retain their RVMTP Shares. In the event of a failed remarketing, the fixed rate spread would be
set at the fixed rate spread applicable to such failed remarketing. BTT has the right to reject any fixed spread determined at a remarketing, and such
rejection would result in a failed remarketing and the fixed rate spread being set at the fixed rate spread applicable to such failed remarketing. The
fixed rate spread applicable due to a failed remarketing depends on whether the remarketing was pursuant to a mandatory or non-mandatory tender. In the
case of a failed remarketing following a mandatory tender, the failed remarketing spread would be the sum of the last applicable spread in effect
immediately prior to the failed remarketing date for such failed remarketing plus 0.75%. In the case of a failed remarketing not associated with a
mandatory tender, the failed remarketing spread would be the sum of the last applicable spread in effect immediately prior to the failed remarketing
date for such failed remarketing plus 0.25%. In the event of a failed remarketing that is not subsequently cured, BTT will be required to redeem the
RVMTP Shares subject to such failed remarketing on a date that is approximately six months from the remarketing date for such failed remarketing,
provided that no redemption of any RVMTP Share may occur within one year of the date of issuance of such RVMTP Share. At the date of issuance, the
RVMTP Shares were assigned long-term ratings of Aaa from Moodys and AAA from Fitch. The dividend rate on the RVMTP Shares is subject to a step-up
spread if BTT fails to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up
payments, and maintaining certain asset coverage and leverage requirements.
There were no RVMTP Shares that were tendered for remarketing
during the year ended July 31, 2014
The average annualized dividend rate for the BTT RVMTP Shares for
the year ended July 31, 2014 was 0.71%.
For financial reporting purposes, the RVMTP Shares are considered
debt of the issuer; therefore the liquidation value, which approximates fair value, of the RVMTP Shares is recorded as a liability in the Statements of
Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the
dividends accrued and paid on the RVMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the
Statements of Operations. The RVMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the RVMTP Shares are generally
classified as tax-exempt income for tax-reporting purposes.
RVMTP Shares issued and outstanding remained constant for the year
ended July 31, 2014.
Offering Costs: The Income Trusts incurred costs in
connection with the issuance of VRDP Shares, VMTP Shares and/or RVMTP Shares. For VRDP Shares, these costs were recorded as a deferred charge and will
be amortized over the 30-year life of the VRDP Shares with the exception of upfront fees paid to the liquidity provider which were amortized over the
life of the liquidity agreement. For VMTP Shares, these costs were recorded as a deferred charge and
68 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Notes to Financial Statements (continued) |
|
will be amortized over the 3-year life of the VMTP Shares. For
RVMTP Shares, these costs were recorded as a deferred charge and will be amortized over the 18-year life of the RVMTP Shares. Amortization of these
costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.
AMPS
The AMPS are redeemable at the option of BFO, in whole or in part,
on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The AMPS are
also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain
requirements relating to the composition of the assets and liabilities of BFO, as set forth in BFOS Statement of Preferences (the Governing
Instrument), are not satisfied.
From time to time in the future, BFO may effect repurchases of its
AMPS at prices below their liquidation preference as agreed upon by BFO and seller. BFO also may redeem its AMPS from time to time as provided in the
applicable Governing Instrument. BFO intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset
coverage requirements or for such other reasons as the Board may determine.
In order to provide additional flexibility for BFO to potentially
continue to conduct partial redemptions of AMPS, an amendment to BFOs AMPS Statement of Preferences was made. The amendment eliminates a
requirement that precluded partial redemptions of AMPS once the number of AMPS outstanding for a particular series fell below 300 shares. The removal
of this requirement is in the best interest of BFO and shareholders as it seeks to provide additional flexibility to conduct partial redemptions of
AMPS in advance of BFOs maturity, if such redemption is otherwise determined to be consistent with the best interest of the BFO and its
shareholders.
The AMPS outstanding as of year ended July 31, 2014 were as
follows:
|
|
|
|
Series
|
|
AMPS
|
|
Effective Yield
|
|
Rate Frequency Days
|
Moodys Rating
|
BFO |
|
|
|
|
F-7 |
|
|
|
25 |
|
|
|
0.12 |
% |
|
|
7 |
|
Aa2 |
Dividends on seven-day AMPS are cumulative at a rate, which is
reset every seven days based on the results of an auction. If the AMPS fail to clear the auction on an auction date, BFO is required to pay the maximum
applicable rate on the AMPS 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 AMPS prior to November 1, 2012 was the higher of 110% of the AA commercial paper rate or 100% of 90% of the
Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. The Kenny S&P 30-day High Grade Index was discontinued as
of November 1, 2012. For purposes of calculating the maximum applicable rate, the Kenny S&P 30-day High Grade Index was replaced with the S&P
Municipal Bond 7-Day High Grade Rate Index as of November 1, 2012. The low, high and average dividend rates on the AMPS for BFO for the year ended July
31, 2014 were as follows:
|
|
|
|
Series
|
|
Low
|
|
High
|
|
Average
|
BFO |
|
|
|
|
F-7 |
|
|
|
0.07 |
% |
|
|
0.23 |
% |
|
|
0.11 |
% |
Since February 13, 2008, the AMPS of the BFO failed to clear any
of their auctions. As a result, the AMPS dividend rates were reset to the maximum applicable rate, which ranged from 0.07% to 1.94% for the year ended
July 31, 2014. A failed auction is not an event of default for the Trust but it has a negative impact on the liquidity of AMPS. A failed auction occurs
when there are more sellers of a Trusts AMPS than buyers. A successful auction for the Trusts AMPS may not occur for some time, if ever,
and even if liquidity does resume, holders of AMPS may not have the ability to sell the AMPS at their liquidation preference.
BFO paid commissions of 0.15% on the aggregate principal amount of
all shares that fail to clear their auctions and 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Certain
broker dealers have individually agreed to reduce commissions for failed auctions. The commissions paid to these broker dealers are included in
remarketing fees on Preferred Shares in the Statements of Operations.
ANNUAL REPORT |
JULY 31, 2014 |
69
|
| |
Notes to Financial Statements (concluded) |
|
During the year ended July 31, 2014, BFO announced the following
redemptions of AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:
|
|
|
|
Series
|
|
Redemption Date
|
|
Shares Redeemed
|
|
Aggregate Principal
|
BFO
|
|
|
|
|
F-7 |
|
|
|
9/09/13 |
|
|
|
80 |
|
|
$ |
2,000,000 |
|
|
|
|
|
|
F-7 |
|
|
|
10/28/13 |
|
|
|
384 |
|
|
$ |
9,600,000 |
|
|
|
|
|
|
F-7 |
|
|
|
12/02/13 |
|
|
|
110 |
|
|
$ |
2,750,000 |
|
|
|
|
|
|
F-7 |
|
|
|
1/06/14 |
|
|
|
65 |
|
|
$ |
1,625,000 |
|
|
|
|
|
|
F-7 |
|
|
|
4/08/14 |
|
|
|
30 |
|
|
$ |
750,000 |
|
|
|
|
|
|
F-7 |
|
|
|
6/09/14 |
|
|
|
70 |
|
|
$ |
1,750,000 |
|
10. Subsequent Events:
Managements evaluation of the impact of all subsequent
events on the Trusts financial statements was completed through the date the financial statements were issued and the following items were
noted:
Each Trust paid a net investment income dividend on September 2,
2014 to Common Shareholders of record on August 15, 2014:
|
|
|
|
Common Dividend Per Share
|
BFZ
|
|
|
|
$ |
0.072200 |
|
BFO
|
|
|
|
$ |
0.034700 |
|
BBF
|
|
|
|
$ |
0.072375 |
|
BTT
|
|
|
|
$ |
0.080000 |
|
BNJ
|
|
|
|
$ |
0.075100 |
|
BNY
|
|
|
|
$ |
0.069000 |
|
Additionally, the Trusts declared a net investment income dividend
on September 2, 2014 payable to Common Shareholders of record on September 15, 2014, for the same amounts noted above.
The dividends declared on Preferred Shares for the period August
1, 2014 to August 31, 2014 were as follows:
|
|
|
|
Preferred Shares
|
|
Series
|
|
Dividends Declared
|
BFZ |
|
|
|
VMTP
Shares |
|
|
W-7 |
|
|
$ |
153,044 |
|
BFO |
|
|
|
AMPS |
|
|
F-7 |
|
|
$ |
55 |
|
BBF |
|
|
|
VRDP
Shares |
|
|
W-7 |
|
|
$ |
4,123 |
|
BTT |
|
|
|
RVMTP Shares |
|
|
W-7 |
|
|
$ |
447,123 |
|
BNJ |
|
|
|
VMTP
Shares |
|
|
W-7 |
|
|
$ |
52,801 |
|
BNY |
|
|
|
VMTP Shares |
|
|
W-7 |
|
|
$ |
84,429 |
|
70 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Report of Independent Registered Public Accounting Firm |
|
To the Shareholders and Board of Trustees of
BlackRock
California Municipal Income Trust,
BlackRock Florida Municipal 2020 Term Trust,
BlackRock Municipal Income Investment Trust,
BlackRock New
Jersey Municipal Income Trust,
BlackRock New York Municipal Income Trust, and
BlackRock Municipal Target Term Trust:
We have audited the accompanying statements of assets and
liabilities, including the schedules of investments, of BlackRock California Municipal Income Trust, BlackRock Municipal Income Investment Trust,
BlackRock New Jersey Municipal Income Trust, BlackRock New York Municipal Income Trust, and BlackRock Municipal Target Term Trust (each a
Trust) as of July 31, 2014, and the related statements of operations and the statements of cash flows for the year then ended, the
statements of changes in net assets for each of the periods presented, and the financial highlights for each of the periods presented. We have also
audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock Florida Municipal 2020 Term Trust
(collectively with each Trust, the Trusts) as of July 31, 2014, and the related statements of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented.
These financial statements and financial highlights are the responsibility of the Trusts management. Our responsibility is to express an opinion
on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we
engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities
owned as of July 31, 2014, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing
procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial positions of BlackRock California Municipal Income Trust, BlackRock Florida
Municipal 2020 Term Trust, BlackRock Municipal Income Investment Trust, BlackRock New Jersey Municipal Income Trust, BlackRock New York Municipal
Income Trust, and BlackRock Municipal Target Term Trust as of July 31, 2014, and the results of their operations and cash flows for the year then
ended, the changes in their net assets for each of the periods presented, and the financial highlights for each of the periods presented, in conformity
with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Boston, Massachusetts
September
24, 2014
ANNUAL REPORT |
JULY 31, 2014 |
71
|
| |
Disclosure of Investment Advisory Agreements |
|
The Board of Trustees (each, a Board, collectively,
the Boards, and the members of which are referred to as Board Members) of BlackRock California Municipal Income Trust
(BFZ), BlackRock Florida Municipal 2020 Term Trust (BFO), BlackRock Municipal Income Investment Trust (BBF),
BlackRock Municipal Target Term Trust (BTT), BlackRock New Jersey Municipal Income Trust (BNJ) and BlackRock New York Municipal
Income Trust (BNY and together with BFZ, BFO, BBF, BTT and BNJ, each a Trust, and, collectively, the Trusts) met in
person on May 9, 2014 (the May Meeting) and June 5-6, 2014 (the June Meeting) to consider the approval of each Trusts
investment advisory agreement (each, an Advisory Agreement, and, collectively, the Advisory Agreements) with BlackRock
Advisors, LLC (the Manager), each Trusts investment advisor. At the June Meeting, it was noted that (i) the sub-advisory agreement
among the Manager, BlackRock Financial Management, Inc. and each Trust (except BTT) would expire effective July 1, 2014, and (ii) the sub-advisory
agreement among the Manager, BlackRock Investment Management, LLC and BTT would be terminated effective July 1, 2014. It was also noted that the
non-renewal or termination of each Trusts sub-advisory agreement would not result in any change in the nature or quality of services provided to
such Trust, or in the portfolio management team that serves such Trust. The Manager is referred to herein as BlackRock.
Activities and Composition of the Board
Each Board consists of eleven individuals, nine of whom are not interested persons of such Trust as defined in the Investment
Company Act of 1940 (the 1940 Act) (the Independent Board Members). The Board Members are responsible for the oversight of the
operations of the Trusts 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 six standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance
Oversight Committee, an Executive Committee, and a Leverage Committee, each of which is chaired by an Independent Board Member and composed of
Independent Board Members (except for the Executive Committee and the Leverage Committee, each of which also has one interested Board
Member).
The Advisory Agreements
Pursuant to the 1940 Act, the Boards are required to consider the continuation of the Advisory Agreements on an annual basis. The Boards
have four quarterly meetings per year, each extending over two days, and a fifth one-day meeting to consider specific information surrounding the
consideration of renewing the Advisory Agreements. In connection with this process, the Boards assessed, among other things, the nature, scope and
quality of the services provided to the Trusts by BlackRock, its personnel and its affiliates, including, as applicable, investment management,
administrative, and shareholder services; oversight of fund service providers; marketing services; risk oversight; compliance and assistance in meeting
applicable legal and regulatory requirements.
The Boards, acting directly and through their respective
committees, consider at each of their meetings, and from time to time as appropriate, factors that are relevant to their annual consideration of the
renewal of the Advisory Agreements, including the services and support provided by BlackRock to the Trusts and their shareholders. Among the matters
the Boards considered were: (a) investment performance for one-year,
three-year, five-year and/or since inception periods, as applicable, against peer
funds, and applicable benchmarks, if any, as well as senior managements and portfolio managers analysis of the reasons for any
over-performance or underperformance against their peers and/or benchmark, as applicable; (b) fees, including advisory, administration, if applicable,
and other amounts paid to BlackRock and its affiliates by the Trusts for services such as call center; (c) Trust operating expenses and how BlackRock
allocates expenses to the Trusts; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the
Trusts investment objective, policies and restrictions, and meeting new regulatory requirements; (e) the Trusts compliance with their Code
of Ethics and other compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock
and its affiliates; (g) BlackRocks and other service providers internal controls and risk and compliance oversight mechanisms; (h)
BlackRocks implementation of the proxy voting policies approved by the Boards; (i) execution quality of portfolio transactions; (j)
BlackRocks implementation of the Trusts valuation and liquidity procedures; (k) an analysis of management fees for products with similar
investment objectives across the open-end fund, closed-end fund and institutional account product channels, as applicable; (l) BlackRocks
compensation methodology for its investment professionals and the incentives it creates; and (m) periodic updates on BlackRocks
business.
The Boards have engaged in an ongoing strategic review with
BlackRock of opportunities to consolidate funds and of BlackRocks commitment to investment performance. BlackRock also furnished information to
the Boards in response to specific questions. These questions covered issues such as: BlackRocks profitability; investment performance;
subadvisory and advisory relationships with other clients (including mutual funds sponsored by third parties); investment professional investment in
funds they manage; and management fee levels and breakpoints. The Boards further discussed with BlackRock: BlackRocks management structure;
portfolio turnover; BlackRocks portfolio manager compensation and performance accountability; marketing support for the Trusts; services provided
to the Trusts by BlackRock affiliates; and BlackRocks oversight of relationships with third party service providers.
The Board of each Trust considered BlackRocks efforts during
the past year with regard to refinancing outstanding AMPS, as well as ongoing time and resources devoted to other forms of preferred shares and
alternative leverage. As of the date of this report, each of BFZ, BBF, BNJ and BNY has redeemed 100% of its outstanding AMPS and BFO has redeemed 98.7%
of its outstanding AMPS.
Board Considerations in Approving the Advisory
Agreements
The Approval Process: Prior to the May Meeting, the Boards requested and received materials specifically relating to the Advisory
Agreements. The Boards are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the
information provided to better assist their deliberations. The materials provided in connection with the May Meeting included (a) information
independently compiled and prepared by Lipper, Inc. (Lipper) on Trust fees and expenses as compared with a peer group of funds as
determined by Lipper (Expense Peers) and the investment performance of the Trusts as compared with a peer group of funds as determined by
Lipper1 and, where
1 |
|
Funds are ranked by Lipper in quartiles, ranging from first to
fourth, where first is the most desirable quartile position and fourth is the least desirable. |
72 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Disclosure of Investment Advisory Agreements
(continued) |
|
applicable, a customized peer group selected by BlackRock; (b)
information on the profits realized by BlackRock and its affiliates pursuant to the Advisory Agreements and a discussion of fall-out benefits to
BlackRock and its affiliates; (c) a general analysis provided by BlackRock concerning investment management fees charged to other clients, such as
institutional clients and open-end funds, under similar investment mandates, as applicable; (d) review of non-management fees; (e) the existence,
impact and sharing of potential economies of scale; (f) a summary of aggregate amounts paid by each Trust to BlackRock and (g) if applicable, a
comparison of management fees to similar BlackRock closed-end funds, as classified by Lipper.
At the May Meeting, the Boards reviewed materials relating to
their consideration of the Advisory Agreements. As a result of the discussions that occurred during the May Meeting, and as a culmination of the
Boards year-long deliberative process, the Boards presented BlackRock with questions and requests for additional information. BlackRock responded
to these requests with additional written information in advance of the June Meeting.
At the June Meeting, each Board, including the Independent Board
Members, unanimously approved the continuation of the Advisory Agreements between the Manager and its Trust for a one-year term ending June 30, 2015.
In approving the continuation of the Advisory Agreements, the Boards considered: (a) the nature, extent and quality of the services provided by
BlackRock; (b) the investment performance of the Trusts and BlackRock; (c) the advisory fee and the cost of the services and profits to be realized by
BlackRock and its affiliates from their relationship with the Trusts; (d) the Trusts costs to investors compared to the costs of Expense Peers
and performance compared to the relevant performance comparison as previously discussed; (e) economies of scale; (f) fall-out benefits to BlackRock and
its affiliates as a result of its relationship with the Trusts; and (g) other factors deemed relevant by the Board Members.
The Boards also considered other matters they deemed important to
the approval process, such as payments made to BlackRock or its affiliates relating to securities lending, services related to the valuation and
pricing of Trust portfolio holdings, direct and indirect benefits to BlackRock and its affiliates from their relationship with the Trusts and advice
from independent legal counsel with respect to the review process and materials submitted for the Boards review. The Boards noted the willingness
of BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as determinative,
and each Board Member may have attributed different weights to the various items considered.
A. Nature, Extent and Quality of the Services Provided by
BlackRock: The Boards, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock,
including the investment advisory services and the resulting performance of the Trusts. Throughout the year, each Board compared its Trusts
performance to the performance of a comparable group of closed-end funds and/or the performance of a relevant benchmark, as applicable. The Boards met
with BlackRocks senior management personnel responsible for investment activities, including the senior investment officers. Each Board also
reviewed the materials provided by its Trusts portfolio management team discussing the Trusts performance and the Trusts investment
objective, strategies and outlook.
The Boards considered, among other factors, with respect to
BlackRock: the number, education and experience of investment personnel generally and their Trusts portfolio management teams; investments by
portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities;
risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management
personnel. The Boards engaged in a review of BlackRocks compensation structure with respect to the Trusts portfolio management teams and
BlackRocks ability to attract and retain high-quality talent and create performance incentives.
In addition to advisory services, the Boards considered the
quality of the administrative and other non-investment advisory services provided to the Trusts. BlackRock and its affiliates provide the Trusts with
certain services (in addition to any such services provided to the Trusts by third parties) and officers and other personnel as are necessary for the
operations of the Trusts. In particular, BlackRock and its affiliates provide the Trusts with the following administrative services including, among
others: (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 Trusts; (iii)
oversight of 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; (viii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger or
consolidation of certain closed-end funds; and (ix) performing other administrative functions necessary for the operation of the Trusts, such as tax
reporting, fulfilling regulatory filing requirements and call center services. The Boards reviewed the structure and duties of BlackRocks fund
administration, shareholder services, legal and compliance departments and considered BlackRocks policies and procedures for assuring compliance
with applicable laws and regulations.
B. The Investment Performance of the Trusts and BlackRock:
Each Board, including the Independent Board Members, also reviewed and considered the performance history of its Trust. In preparation for the May
Meeting, the Boards worked with their independent legal counsel, BlackRock and Lipper to develop a template for, and were provided with reports
independently prepared by Lipper, which included a comprehensive analysis of each Trusts 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 Lippers rankings. In
connection with its review, each Board received and reviewed information regarding the investment performance, based on net asset value (NAV), of its
Trust as compared to other funds in that Trusts applicable Lipper category and, where applicable, the customized peer group selected by
BlackRock. The Boards were provided with a description of the methodology used by Lipper to select peer funds and periodically meets with Lipper
representatives to review its methodology. Each Board and its Performance Oversight Committee regularly review, and meet with Trust management to
discuss, the performance of its Trust throughout the year.
The Board of BFZ noted that for the one-, three- and five-year
periods reported, BFZ ranked in the second, third and second quartiles, respectively, against its Customized Lipper Peer Group
Composite.
ANNUAL REPORT |
JULY 31, 2014 |
73
|
| |
Disclosure of Investment Advisory Agreements
(continued) |
|
BlackRock believes that the Customized Lipper Peer Group
Composite is an appropriate performance metric for BFZ in that it measures a blend of total return and yield. The Board of BFZ and BlackRock reviewed
and discussed the reasons for the Trusts underperformance during the three-year period and noted that they will monitor the Trusts
performance.
The Board of BFO noted that for the one-, three- and five-year
periods reported, BFO ranked in the first, third and third quartiles, respectively, against its Lipper Performance Universe Composite. BlackRock
believes that the Lipper Performance Universe Composite is an appropriate performance metric for BFO in that it measures a blend of total return and
yield. The Board of BFO also noted the Trusts improved performance during the one-year period. The Board and BlackRock reviewed and discussed the
reasons for the Trusts underperformance during the three- and five-year periods. BFOs Board was informed that, among other things, the
Trust has a targeted maturity, and as such is managed to achieve the specific maturity goal.
The Board of BBF noted that for the one-, three- and five-year
periods reported, BBF ranked in the fourth, third and third quartiles, respectively, against its Customized Lipper Peer Group Composite. BlackRock
believes that the Customized Lipper Peer Group Composite is an appropriate performance metric for BBF in that it measures a blend of total return and
yield. The Board of BBF and BlackRock reviewed and discussed the reasons for the Trusts underperformance during these periods. BBFs Board
was informed that, among other things, underperformance is attributed to the Trusts below market distribution yield for these periods. The
continued challenge going forward for the Trust is seeking ways to increase its yield component. One disadvantage BBF has versus its Customized Lipper
Peer Group Composite is that its investment policies do not allow it to purchase securities that are subject to the alternative minimum tax (AMT),
which provides peer funds with additional yield.
The Board and BlackRock also discussed BlackRocks strategy
for improving the Trusts performance and BlackRocks commitment to providing the resources necessary to assist the Trusts portfolio
managers in seeking to improve the Trusts performance.
The Board of BTT noted that for each of the one-year and
since-inception periods reported, BTT ranked in the fourth quartile against its Lipper Performance Universe Composite. BlackRock believes that the
Lipper Performance Universe Composite is an appropriate performance metric for BTT in that it measures a blend of total return and yield. The Board of
BTT and BlackRock reviewed and discussed the reasons for the Trusts underperformance during these periods. BTTs Board was informed that,
among other things, given the Trusts scheduled termination date and its investment objectives, the Trusts holdings are structured to mature
around the 15-20 year part of the yield curve. The absence of a laddered maturity structure and seasoned call structure results in a higher duration
than a typical perpetual municipal closed-end fund. As a result of BTTs higher relative duration and exposure to the weakest performing part of
the curve, BTT underperformed its performance composite in the one-year and since-inception periods.
The Board of BNJ noted that for each of the one-, three- and
five-year periods reported, BNJ ranked in the first quartile against its Customized Lipper Peer Group Composite. BlackRock believes that the Customized
Lipper Peer Group Composite is an appropriate performance metric for BNJ in that it measures a blend of total return and yield.
The Board of BNY noted that for the one-, three- and five-year
periods reported, BNY ranked in the fourth, second and second quartiles, respectively, against its Customized Lipper Peer Group Composite. BlackRock
believes that the Customized Lipper Peer Group Composite is an appropriate performance metric for BNY in that it measures a blend of total return and
yield. The Board of BNY and BlackRock reviewed and discussed the reasons for the Trusts underperformance during the one-year period and noted
that they will monitor the Trusts performance.
C. Consideration of the Advisory/Management Fees and the Cost
of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Trusts: Each Board, including the
Independent Board Members, reviewed its Trusts contractual management fee rate compared with the other funds in its Lipper category. The
contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements
or fee waivers. The Board also compared the Trusts total expense ratio, as well as its actual management fee rate, to those of other funds in its
Lipper category. The total expense ratio represents a funds total net operating expenses, excluding any investment related expenses. The total
expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any
management fee reimbursements or waivers that benefit a fund. The Boards considered the services provided and the fees charged by BlackRock and its
affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts.
The Boards received and reviewed statements relating to
BlackRocks financial condition. 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 Trusts. The Boards reviewed BlackRocks profitability with respect to the Trusts and other
funds the Boards currently oversee for the year ended December 31, 2013 compared to available aggregate profitability data provided for the prior two
years. The Boards reviewed BlackRocks profitability with respect to certain other fund complexes managed by the Manager and/or its affiliates.
The Boards reviewed BlackRocks assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations
in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among
other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. As
a result, calculating and comparing profitability at individual fund levels is difficult.
The Boards noted that, in general, individual fund or product line
profitability of other advisors is not publicly available. The Boards reviewed BlackRocks overall operating margin, in general, compared to that
of certain other publicly-traded asset management firms. The Boards considered the differences between BlackRock and these other firms, including the
contribution of technology at BlackRock, BlackRocks expense management, and the relative product mix.
In addition, the Boards considered the cost of the services
provided to the Trusts by BlackRock, and BlackRocks and its affiliates profits relating to the management of the Trusts and the other funds
advised by BlackRock and its affiliates. As part of its analysis, the Boards reviewed BlackRocks methodology in allocating its costs to the
management of the Trusts. The Boards also considered whether BlackRock has the financial resources
74 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Disclosure of Investment Advisory Agreements
(concluded) |
|
necessary to attract and retain high quality investment management personnel to perform its obligations under the Advisory Agreements and to continue
to provide the high quality of services that is expected by the Boards. The Boards further considered factors including but not limited to
BlackRocks commitment of time, assumption of risk and liability profile in servicing the Trusts in contrast to what is required of BlackRock with
respect to other products with similar investment objectives across the open-end fund, ETF, closed-end fund and institutional account product channels,
as applicable.
The Board of BFZ noted that BFZs contractual management fee
rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the second and first quartiles,
respectively, relative to the Trusts Expense Peers.
The Board of each of BFO and BTT noted that its respective
Trusts contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked
in the first quartile, relative to the Trusts Expense Peers. After discussion between BTTs Board, including the independent Board Members,
and BlackRock, BTTs Board and BlackRock agreed to a voluntary advisory fee waiver. This waiver, which will result in saving to shareholders,
became effective on June 9, 2014.
The Board of each BBF and BNJ noted that its respective
Trusts contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in
the fourth and third quartiles, respectively, relative to the Trusts Expense Peers. BBFs Board determined that BBFs total expense
ratio was appropriate in light of the median total expense ratio paid by the Trusts Expense Peers.
The Board of BNY noted that BNYs contractual management fee
rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile, relative to the
Trusts Expense Peers.
D. Economies of Scale: Each Board, including the
Independent Board Members, considered the extent to which economies of scale might be realized as the assets of its Trust increase. Each Board also
considered the extent to which its Trust benefits from such economies and whether there should be changes in the advisory fee rate or breakpoint
structure in order to enable the Trust to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based
upon the asset level of the Trust.
Based on the Boards review and consideration of the issue,
the Boards concluded that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial
growth after the initial public offering. They are typically priced at scale at a funds inception.
E. Other Factors Deemed Relevant by the Board Members: The
Boards, including the Independent Board Members, also took into account other ancillary or fall-out benefits that BlackRock or its
affiliates may derive from their respective relationships with the Trusts, both tangible and intangible, such as BlackRocks ability to leverage
its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRocks profile in the investment
advisory community, and the engagement of BlackRocks affiliates as service providers to the Trusts, including securities lending and cash
management
services. The Boards also considered BlackRocks overall operations and its efforts to expand the scale of, and improve the quality of,
its operations. The Boards also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain
registered fund transactions to assist in managing all or a number of its other client accounts. The Boards further noted that it had considered the
investment by BlackRocks funds in exchange traded funds (i.e., ETFs) without any offset against the management fees payable by the funds to
BlackRock.
In connection with its consideration of the Advisory Agreements,
the Boards also received information regarding BlackRocks brokerage and soft dollar practices. The Boards received reports from BlackRock which
included information on brokerage commissions and trade execution practices throughout the year.
The Boards noted the competitive nature of the closed-end fund
marketplace, and that shareholders are able to sell their Trust shares in the secondary market if they believe that their Trusts fees and
expenses are too high or if they are dissatisfied with the performance of their Trust.
The Boards also considered the various notable initiatives and
projects BlackRock performed in connection with its closed-end fund product line. These initiatives included the completion of refinancing of auction
rate preferred securities, with the exception of BFO; developing equity shelf programs; efforts to eliminate product overlap with fund mergers; ongoing
services to manage leverage that has become increasingly complex; share repurchases and other support initiatives for certain BlackRock funds; and
continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members
noted BlackRocks continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive
secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. BlackRocks support
services included, among other things: continuing communications concerning the refinancing efforts related to auction rate preferred securities;
sponsoring and participating in conferences; communicating with closed-end fund analysts covering the BlackRock funds throughout the year; providing
marketing and product updates for the closed-end funds; and maintaining and enhancing its closed-end fund website.
Conclusion
Each Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreements between the Manager
and its Trust for a one-year term ending June 30, 2015. Based upon their evaluation of all of the aforementioned factors in their totality, the Boards,
including the Independent Board Members, were satisfied that the terms of the Advisory Agreements were fair and reasonable and in the best interest of
the Trusts and their shareholders. In arriving at their decision to approve the Advisory Agreements, the Boards did not identify any single factor or
group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different
weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this
determination. The contractual fee arrangements for the Trusts reflect the results of several years of review by the Board Members and predecessor
Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. As a result, the Board Members
conclusions may be based in part on their consideration of these arrangements in prior years.
ANNUAL REPORT |
JULY 31, 2014 |
75
|
| |
Automatic Dividend Reinvestment Plans |
|
Pursuant to each Trusts Dividend Reinvestment Plan (the
Reinvestment Plan), Common Shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by
Computershare Trust Company, N.A. (the Reinvestment Plan Agent) in the respective Trusts shares pursuant to the Reinvestment Plan.
Shareholders who do not participate in the Reinvestment 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 name or other nominee name, then to the nominee) by the Reinvestment Plan Agent, which
serves as agent for the shareholders in administering the Reinvestment Plan.
After BFZ, BBF, BNJ and BNY declares a dividend or determines to
make a capital gain distribution, the Reinvestment Plan Agent will acquire shares for the participants accounts, depending upon the following
circumstances, either (i) through receipt of unissued but authorized shares from the Trusts (newly issued shares) or (ii) by purchase of
outstanding shares on the open market or on the Trusts primary exchange (open-market purchases). If, on the dividend payment date,
the net asset value per share (NAV) is equal to or less than the market price per share plus estimated brokerage commissions (such
condition often referred to as a market premium), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares
acquired on behalf of the participants. The number of newly issued shares to be credited to each participants 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 dividend payment date, the dollar amount of the dividend will be divided by 95% of the market price on the dividend payment date. If, on the
dividend payment date, the NAV is greater than the market price per share plus estimated brokerage commissions (such condition often referred to as a
market discount), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in
open-market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend amount in open-market purchases, or if the market discount
shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any un-invested portion in newly issued shares.
Investments in newly issued shares made in this manner would be made pursuant to the same process described above and the date of issue for such newly
issued shares will substitute for the dividend payment date.
After BFO and BTT declare a dividend or determine to make a
capital gain distribution, the Reinvestment Plan Agent will acquire shares for the participants account by the purchase of outstanding shares on
the open market or on BFOs or BTTs primary exchange (open-market purchases). BFO and BTT will not issue any new shares under
the Reinvestment Plan.
Participation in the Reinvestment Plan is completely voluntary and
may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend
record date. Additionally, the Reinvestment Plan Agent seeks to process notices received after the record date but prior to the payable date and such
notices often will become effective by the payable date. Where late notices are not processed by the applicable payable date, such termination or
resumption will be effective with respect to any subsequently declared dividend or other distribution.
The Reinvestment Plan Agents 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 Reinvestment Plan Agents 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
Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan. However, each Trust reserves the right to amend the
Reinvestment Plan to include a service charge payable by the participants. Participants that request a sale of shares are subject to a $2.50 sales fee
and a $0.15 per share fee. Per share fees include any applicable brokerage commissions the Reinvestment Plan Agent is required to pay. All
correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at
http://www.computershare.com/blackrock, or in writing to Computershare, P.O. Box 30170, College Station, TX 77842-3170, Telephone: (800) 699-1236.
Overnight correspondence should be directed to the Reinvestment Plan Agent at Computershare, 211 Quality Circle, Suite 210, College Station, TX
77845.
76 |
ANNUAL REPORT |
JULY 31, 2014
|
Name, Address1 and Year of Birth |
|
|
|
Position(s) Held with Trusts |
|
Length of Time Served as a Trustee3 |
|
Principal Occupation(s) During Past Five Years |
|
Number of BlackRock- Advised Registered Investment Companies (RICs) Consisting of Investment Portfolios (Portfolios) Overseen |
|
Public Directorships |
Independent
Trustees2 |
Richard E. Cavanagh 1946 |
|
|
|
Chairman of the Board and Trustee |
|
Since 2007 |
|
Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life Insurance Company of America since 1998; Director, Arch Chemical (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007. |
|
82 RICs consisting of 82 Portfolios |
|
None |
Karen P. Robards 1950 |
|
|
|
Vice Chairperson of the Board, Chairperson of the Audit Committee and Trustee |
|
Since 2007 |
|
Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Care Investment Trust, Inc. (health care real estate investment trust) from 2007 to 2010; Investment Banker at Morgan Stanley from 1976 to 1987. |
|
82 RICs consisting of 82 Portfolios |
|
AtriCure, Inc. (medical devices); Greenhill & Co., Inc. |
Michael J. Castellano 1946 |
|
|
|
Trustee and Member of the Audit Committee |
|
Since 2011 |
|
Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) since 2009; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012. |
|
82 RICs consisting of 82 Portfolios |
|
None |
Frank J. Fabozzi4 1948 |
|
|
|
Trustee and Member of the Audit Committee |
|
Since 2007 |
|
Editor of and Consultant for The Journal of Portfolio Management since 2006; Professor of Finance, EDHEC Business School since 2011; Professor in the Practice of Finance and Becton Fellow, Yale University School of Management from 2006 to 2011; Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006. |
|
115 RICs consisting of 237 Portfolios |
|
None |
Kathleen F. Feldstein 1941 |
|
|
|
Trustee |
|
Since 2007 |
|
President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003; Director, Catholic Charities of Boston since 2009. |
|
82 RICs consisting of 82 Portfolios |
|
The McClatchy Company (publishing) |
James T. Flynn 1939 |
|
|
|
Trustee and Member of the Audit Committee |
|
Since 2007 |
|
Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995. |
|
82 RICs consisting of 82 Portfolios |
|
None |
Jerrold B. Harris 1942 |
|
|
|
Trustee |
|
Since 2007 |
|
Trustee, Ursinus College since 2000; Director, Ducks Unlimited, Inc. (conservations) since 2013; Director, Troemner LLC (scientific equipment) since 2000; Director of Delta Waterfowl Foundation from 2010 to 2012; President and Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999. |
|
82 RICs consisting of 82 Portfolios |
|
BlackRock Kelso Capital Corp. (business development company) |
R. Glenn Hubbard 1958 |
|
|
|
Trustee |
|
Since 2007 |
|
Dean, Columbia Business School since 2004; Faculty member, Columbia Business School since 1988. |
|
82 RICs consisting of 82 Portfolios |
|
ADP (data and information services); Metropolitan Life Insurance Company (insurance) |
ANNUAL REPORT |
JULY 31, 2014 |
77
|
| |
Officers and Trustees (continued) |
|
Name, Address1 and Year of Birth |
|
|
|
Position(s) Held with Trusts |
|
Length of Time Served as a Trustee3 |
|
Principal Occupation(s) During Past Five Years |
|
Number of BlackRock- Advised Registered Investment Companies (RICs) Consisting of Investment Portfolios (Portfolios) Overseen |
|
Public Directorships |
Independent
Trustees2 (concluded) |
W. Carl Kester 1951 |
|
|
|
Trustee and Member of the Audit Committee |
|
Since 2007 |
|
George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit, 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981. |
|
82 RICs consisting of 82 Portfolios |
|
None |
|
1 The address of each Officer and Trustee is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York,
NY 10055. |
|
2 Independent Trustees serve until their resignation, removal or death, or until December 31 of the year in which
they turn 74. The maximum age limitation may be waived as to any Trustee by action of a majority of the Trustees upon finding good cause thereof. In
2013, the Board of Trustees unanimously approved extending the mandatory retirement age for James T. Flynn by one additional year, which the Board
believed would be in the best interest of shareholders. Mr. Flynn can serve until December 31 of the year in which he turns 75. Mr. Flynn turns 75 in
2014. |
|
3 Date shown is the earliest date a person has served for 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
certain Trustees as joining the Trusts board in 2007, those Trustees first became members of the boards of other legacy MLIM or legacy BlackRock
funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R.
Glenn Hubbard, 2004; W. Carl Kester, 1995 and Karen P. Robards, 1998. |
|
4 Dr. Fabozzi is also a board member of the BlackRock Equity-Liquidity Complex. |
|
|
Interested Trustees5 |
Paul L. Audet 1953 |
|
|
|
Trustee |
|
Since 2011 |
|
Senior Managing Director of BlackRock and Head of U.S. Mutual Funds since 2011; Head of BlackRocks Real Estate business from 2008 to 2011; Member of BlackRocks Global Operating and Corporate Risk Management Committees since 2008; Head of BlackRocks Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005. |
|
144 RICs consisting of 334 Portfolios |
|
None |
Henry Gabbay 1947 |
|
|
|
Trustee |
|
Since 2007 |
|
Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Allocation Target Shares (formerly BlackRock Bond Allocation Target Shares) from 2005 to 2007; Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006. |
|
144 RICs consisting of 334 Portfolios |
|
None |
|
|
|
|
5 Mr. Audet is an interested person, as defined in the 1940 Act, of the Trusts based on his position with BlackRock and its affiliates as well as his ownership of BlackRock securities. Mr. Gabbay is an interested person of the Trusts based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of two complexes of BlackRock registered open-end funds, the BlackRock Equity-Liquidity Complex and the BlackRock Equity-Bond Complex. Interested Trustees of the BlackRock Closed-End Complex serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The maximum age limitation may be waived as to any Trustee by action of a majority of the Trustees upon finding a good cause thereof. |
78 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Officers and Trustees (concluded) |
|
Name, Address1 and Year of Birth |
|
|
|
Position(s) Held with Trusts |
|
Length of Time Served |
|
Principal Occupation(s) During Past Five Years |
Officers2 |
John M. Perlowski 1964 |
|
|
|
President and Chief Executive Officer |
|
Since 2011 |
|
Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Services since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009. |
Brendan Kyne 1977 |
|
|
|
Vice President |
|
Since 2009 |
|
Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Americas Product Development for BlackRock since 2013, Head of Product Development and Management for BlackRocks U.S. Retail Group from 2009 to 2013 and Co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008. |
Robert W. Crothers 1981 |
|
|
|
Vice President |
|
Since 2012 |
|
Director of BlackRock since 2011; Vice President of BlackRock from 2008 to 2010. |
Neal Andrews 1966 |
|
|
|
Chief Financial Officer |
|
Since 2007 |
|
Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006. |
Jay Fife 1970 |
|
|
|
Treasurer |
|
Since 2007 |
|
Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006. |
Charles Park 1967 |
|
|
|
Chief Compliance Officer and Anti-Money Laundering Officer |
|
Since 2014 |
|
Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex since 2014; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (BFA) since 2006; Chief Compliance Officer for the BFA-advised iShares exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012. |
Janey Ahn 1975 |
|
|
|
Secretary |
|
Since 2012 |
|
Director of BlackRock since 2009; Vice President of BlackRock from 2008 to 2009; Assistant Secretary of the Funds from 2008 to 2012. |
|
|
|
|
1 The address of each Officer and Trustee is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. |
|
|
|
|
2 Officers of the Trusts serve at the pleasure of the Boards. |
Effective June 6, 2014, Brian Kindelan resigned as Chief Compliance Officer and Anti-Money Laundering Officer of the Trusts and Charles Park became Chief Compliance Officer and Anti-Money Laundering Officer of the Trusts. |
|
Investment Advisor BlackRock Advisors, LLC Wilmington, DE 19809
Custodian State Street Bank and Trust Company Boston, MA 02110 |
|
|
|
Transfer Agent Common Shares: Computershare Trust Company, N.A. Canton, MA 02021
AMPS Auction Agent The Bank of New York Mellon New York, NY 10289 |
|
VRDP Tender and Paying Agent, RVMTP Tender and Paying Agent and VMTP Redemption and Paying Agent The Bank of New York Mellon New York, NY 10289
VRDP Liquidity Provider Barclays Bank PLC New York, NY 10019 |
|
VRDP Remarketing Agent Barclays Capital, Inc. New York, NY 10019
Accounting Agent State Street Bank and Trust Company Boston, MA 02110
Independent Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116
|
|
Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP New York, NY 10036
Address of the Trusts 100 Bellevue Parkway Wilmington, DE 19809 |
ANNUAL REPORT |
JULY 31, 2014 |
79
|
Proxy Results
The Annual Meeting of Shareholders was held on July 30, 2014 for
shareholders of record on June 3, 2014 to elect trustee nominees for each Trust. There were no broker non-votes with regard to any of the
Trusts.
Approved the Class I Trustees as follows:
|
|
|
|
Paul L. Audet
|
|
Michael J. Castellano
|
|
R. Glenn Hubbard
|
|
|
|
|
Votes For
|
|
Votes Withheld
|
|
Abstain
|
|
Votes For
|
|
Votes Withheld
|
|
Abstain
|
|
Votes For
|
|
Votes Withheld
|
|
Abstain
|
BFZ |
|
|
|
|
28,232,816 |
|
|
|
448,027 |
|
|
|
0 |
|
|
|
28,247,742 |
|
|
|
433,101 |
|
|
|
0 |
|
|
|
28,199,719 |
|
|
|
481,124 |
|
|
|
0 |
|
BFO |
|
|
|
|
5,077,492 |
|
|
|
108,690 |
|
|
|
0 |
|
|
|
5,077,993 |
|
|
|
108,189 |
|
|
|
0 |
|
|
|
5,074,523 |
|
|
|
111,659 |
|
|
|
0 |
|
BBF |
|
|
|
|
5,641,161 |
|
|
|
96,039 |
|
|
|
0 |
|
|
|
5,641,161 |
|
|
|
96,039 |
|
|
|
0 |
|
|
|
5,604,134 |
|
|
|
133,066 |
|
|
|
0 |
|
BTT |
|
|
|
|
65,456,644 |
|
|
|
1,297,792 |
|
|
|
0 |
|
|
|
65,294,971 |
|
|
|
1,459,465 |
|
|
|
0 |
|
|
|
65,278,394 |
|
|
|
1,476,042 |
|
|
|
0 |
|
BNJ |
|
|
|
|
6,286,520 |
|
|
|
268,462 |
|
|
|
0 |
|
|
|
6,274,327 |
|
|
|
280,655 |
|
|
|
0 |
|
|
|
6,280,588 |
|
|
|
274,394 |
|
|
|
0 |
|
BNY |
|
|
|
|
11,002,524 |
|
|
|
608,273 |
|
|
|
0 |
|
|
|
10,988,857 |
|
|
|
621,939 |
|
|
|
0 |
|
|
|
11,317,080 |
|
|
|
293,717 |
|
|
|
0 |
|
|
|
|
|
W. Carl Kester1
|
|
|
|
|
|
|
|
Votes For
|
|
Votes Withheld
|
|
Abstain
|
|
BFZ |
|
|
|
|
1,713 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BFO |
|
|
|
|
67 |
|
|
|
2 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BBF |
|
|
|
|
342 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BTT |
|
|
|
|
150 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BNJ |
|
|
|
|
591 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BNY |
|
|
|
|
945 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Trusts listed above, Trustees whose term of office
continued after the Annual Meeting of Shareholders because they were not up for election are Richard E. Cavanagh, Frank J. Fabozzi, Kathleen F.
Feldstein, James T. Flynn, Henry Gabbay, Jerrold B. Harris and Karen P. Robards.
1 |
|
Voted on by holders of preferred shares
only. |
Trust Certification
Certain Trusts are listed for trading on the NYSE and have filed
with the NYSE their annual chief executive officer certification regarding compliance with the NYSEs listing standards. The Trusts filed with the
SEC
the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.
80 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Additional Information (continued) |
|
Dividend Policy
Each Trusts dividend policy is to distribute all or a
portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend
distributions, the Trusts may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in
any particular month pay out such accumulated but undistributed income in addition to
net investment income earned in that month. As a result, the
dividends paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such
month. The Trusts current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities,
which comprises part of the financial information included in this report.
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 Trusts offerings and the information contained in each Trusts Statement of
Additional Information may have become outdated.
During the period, there were no material changes in the
Trusts investment objectives or policies or to the Trusts charters or by-laws that would delay or prevent a change of control of the Trusts
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 portfolios.
Quarterly performance, semi-annual and annual reports, current net
asset value and other information regarding the Trusts may be found on BlackRocks website, which can be accessed at
http://www.blackrock.com. This reference to BlackRocks website is intended to allow investors public access to information regarding the
Trusts and does not, and is not intended to, incorporate BlackRocks website in this report.
Electronic Delivery
Electronic copies of most financial reports are available on the
Trusts website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the
Trusts electronic delivery program.
Shareholders Who Hold Accounts with Investment
Advisors, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that
not all investment advisors, banks or brokerages may offer this service.
Householding
The Trusts will mail only one copy of shareholder documents,
including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly
called householding and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be
combined with those for other members of your household, please call the Trusts at (800) 882-0052.
ANNUAL REPORT |
JULY 31, 2014 |
81
|
| |
Additional Information (continued) |
|
General Information (concluded)
Availability of Quarterly Schedule of
Investments
The Trusts file their complete schedule of portfolio holdings with
the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts Forms N-Q are available on the SECs website at
http://www.sec.gov and may also be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information on how to access
documents on the SECs website without charge may be obtained by calling (800) SEC-0330. The Trusts Forms N-Q may also be obtained upon
request and without charge by calling (800) 882-0052.
Availability of Proxy Voting Policies
and Procedures
A description of the policies and procedures that the Trusts use
to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 882-0052; (2) at
http://www.blackrock.com; and (3) on the SECs website at http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Trusts voted proxies relating to
securities held in the Trusts portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at
http://www.blackrock.com or by calling (800) 882-0052 and (2) on the SECs website at http://www.sec.gov.
Availability of Trust Updates
BlackRock will update performance and certain other data for the
Trusts on a monthly basis on its website in the Closed-end Funds section of http://www.blackrock.com as well as certain other
material information as necessary from time to time. Investors and others are advised to periodically check the website for updated performance
information and the release of other material information about the Trusts. This reference to BlackRocks website is intended to allow investors
public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRocks website in this
report.
Section 19(a) Notice
These amounts and sources of distributions reported are only
estimates provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for
tax reporting purposes will depend upon the Trusts investment experience during the year and may be subject to changes based on the tax
regulations. The Trust will provide a Form 1099-DIV each calendar year that will tell you how to report these distributions for federal income tax
purposes.
July 31, 2014
|
|
|
|
|
Total Cumulative Distributions for
the Fiscal Year-to-Date
|
|
|
% Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
|
|
|
|
|
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
|
BTT |
|
|
|
|
$1.111250 |
|
|
|
|
|
|
|
|
|
|
|
$1.111250 |
|
|
|
100% |
|
|
|
0% |
|
|
|
0% |
|
|
|
100% |
|
Shelf Offering Program
From time-to-time, each Trust (except for BFO and BTT) may seek to
raise additional equity capital through an equity shelf program (a Shelf Offering). In a Shelf Offering, a Trust may, subject to market
conditions, raise additional equity capital by issuing new Common Shares from time to time in varying amounts at a net price at or above the
Trusts net asset value (NAV) per Common Share (calculated within 48 hours of pricing). While any such Shelf Offering may allow a
Trust to pursue additional investment opportunities without the need to sell existing portfolio investments, it could also entail risks
including that the issuance of
additional Common Shares may limit the extent to which the Common Shares are able to trade at a premium to NAV in the
secondary market. The Trusts have not filed a registration statement with respect to any Shelf Offerings. This report is not an offer to sell Trust
Common Shares and is not a solicitation of an offer to buy Trust Common Shares. If a Trust files a registration statement with respect to any Shelf
Offering, the prospectus contained therein will contain more complete information about the Trust and should be read carefully before
investing.
82 |
ANNUAL REPORT |
JULY 31, 2014
|
| |
Additional Information (concluded) |
|
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, 2014 |
83
|
This report is intended for existing shareholders. It is not a
prospectus. Past performance results shown in this report should not be considered a representation of future performance. Certain 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 the short-term interest rates, including AMPS, which are currently set at the
maximum reset rate as a result of failed auctions, may reduce the Common Shares yield. Statements and other information herein are as dated and
are subject to change.
CEF-BK6-7/14-AR |
|
|
|
|
|
|
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, principal accounting officer or
controller, or persons performing similar functions. During the period covered by this report, there have been no amendments to
or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.
Item 3 – Audit Committee
Financial Expert – The registrant’s board of directors (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:
Michael Castellano
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
The registrant’s board of directors
has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.
Prof. Kester has a thorough
understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as
well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services
to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of
accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised
by the registrant’s financial statements.
Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements
and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards &
Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she
was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over
30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company
and a non-profit organization.
Under applicable securities laws, a person determined to be an audit committee financial expert will
not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities
Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification
as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the
duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence
of such designation or identification. The designation or identification of a person as an audit committee financial expert does
not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
Item 4 – Principal Accountant
Fees and Services
The following table presents fees billed by Deloitte
& Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:
|
(a) Audit Fees |
(b) Audit-Related Fees1 |
(c) Tax Fees2 |
(d) All Other Fees3 |
Entity Name |
Current
Fiscal Year
End |
Previous
Fiscal Year
End |
Current
Fiscal Year
End |
Previous
Fiscal Year
End |
Current
Fiscal Year
End |
Previous
Fiscal Year
End |
Current
Fiscal Year
End |
Previous
Fiscal Year
End |
BlackRock Municipal Income Investment Trust |
$30,863 |
$30,163 |
$0 |
$0 |
$9,300 |
$9,300 |
$0 |
$0 |
The following table presents fees billed by D&T that
were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly
to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment
Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not
including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment
adviser) that provide ongoing services to the Fund (“Fund Service Providers”):
|
Current Fiscal Year End |
Previous Fiscal Year End |
(b) Audit-Related Fees1 |
$0 |
$0 |
(c) Tax Fees2 |
$0 |
$0 |
(d) All Other Fees3 |
$2,555,000 |
$2,865,000 |
1 The nature of the services includes assurance and related
services reasonably related to the performance of the audit of financial statements not included in Audit Fees.
2 The nature of the
services includes tax compliance, tax advice and tax planning.
3 Aggregate fees borne by
BlackRock in connection with the review of compliance procedures and attestation thereto performed by D&T with respect to all
of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
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 Investment Adviser and Fund Service Providers that relate directly
to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes
are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair
the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case
basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval,
unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct
impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual
project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will
be aggregated to determine if they exceed the previously mentioned cost levels.
Any proposed services
exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject
to general pre-approval (e.g.,
unanticipated but permissible services). The Committee
is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At
this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee
Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including
services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis
exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrant, the Investment
Adviser and the Fund Service Providers were:
Entity Name |
Current Fiscal Year
End |
Previous Fiscal Year
End |
BlackRock Municipal Income
Investment Trust |
$9,300 |
$9,300 |
Additionally, SSAE
16 Review (Formerly, SAS No. 70) fees for the current and previous fiscal years of $2,555,000
and $2,865,000, respectively, were billed by D&T to the Investment Adviser.
(h) The Committee has considered
and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Fund Service Providers
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant’s independence.
Item 5 – Audit Committee
of Listed Registrants
(a)
The following individuals are members of the registrant’s separately-designated standing
audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):
Michael Castellano
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
(b)
Not Applicable
Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this
Form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 – Disclosure of
Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of directors has delegated
the voting of proxies for the Fund’s portfolio securities to the 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, 2014.
(a)(1) The registrant 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, CFA, 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., CFA |
Managing Director of BlackRock 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, CFA |
Managing Director of BlackRock since 2006;
Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003. |
|
Robert Sneeden |
Director of BlackRock since 2006; Vice President of MLIM from 1998 to 2006. |
(a)(2) As of July 31, 2014:
|
(ii) Number of Other Accounts Managed
and Assets by Account Type |
(iii) Number of Other Accounts and
Assets for Which Advisory Fee is
Performance-Based |
(i) Name of
Portfolio Manager |
Other
Registered
Investment
Companies |
Other Pooled
Investment
Vehicles |
Other
Accounts |
Other
Registered
Investment
Companies |
Other Pooled
Investment
Vehicles |
Other
Accounts |
Theodore R. Jaeckel, Jr., CFA |
64 |
0 |
0 |
0 |
0 |
0 |
|
$26.21 Billion |
$0 |
$0 |
$0 |
$0 |
$0 |
Walter O’Connor, CFA |
64 |
0 |
0 |
0 |
0 |
0 |
|
$26.21 Billion |
$0 |
$0 |
$0 |
$0 |
$0 |
Robert Sneeden |
11 |
0 |
0 |
0 |
0 |
0 |
|
$2.03 Billion |
$0 |
$0 |
$0 |
$0 |
$0 |
(iv) Portfolio Manager Potential
Material Conflicts of Interest
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, Inc., its affiliates and significant shareholders and any
officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock
recommends to the Fund. BlackRock, Inc. or any of its affiliates or significant shareholders, or any
officer, director, shareholder, 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, Inc.’s (or its affiliates’ or significant shareholders’)
officers, directors or employees are directors or officers, or companies as to which BlackRock, Inc. 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. Certain portfolio managers also may manage accounts whose investment strategies may at times
be opposed to the strategy utilized for a fund. It should also be noted that a portfolio manager may be managing hedge fund
and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts, subject to incentive fees. Such
portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. Currently, the
portfolio managers of this fund are not entitled to receive a portion of incentive fees of other accounts.
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,
Inc. has adopted policies that are intended to ensure 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, as
appropriate.
(a)(3) As of July 31, 2014:
Portfolio Manager Compensation Overview
The discussion below describes the portfolio
managers’ compensation as of July 31, 2014.
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.
Base compensation.
Generally, portfolio managers receive base compensation based on their position with the firm.
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 performance and contribution to the overall performance
of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which
the performance of the Funds or other accounts managed by the portfolio managers are measured. Among other things, BlackRock’s
Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on
the performance of the Funds and other accounts managed by each portfolio manager relative to the various benchmarks. Performance
of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods,
as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are: a combination of
market-based indices (e.g., Standard & Poor's Municipal Bond Index), certain customized indices and certain fund industry peer
groups.
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. For some portfolio managers, discretionary incentive compensation
is also distributed in deferred cash awards that notionally track the returns of select BlackRock investment products they manage
and that vest ratably over a number of years. The BlackRock, Inc. restricted stock units, upon vesting, will be settled in BlackRock,
Inc. common stock. Typically, the cash portion of the discretionary incentive
compensation, when combined with base salary, represents
more than 60% of total compensation for the portfolio managers. Paying a portion of discretionary incentive compensation in BlackRock,
Inc. 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. Providing a portion of discretionary incentive compensation in deferred
cash awards that notionally track the BlackRock investment products they manage provides direct alignment with investment product
results.
Long-Term Incentive Plan Awards
— From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align
their interests with long-term shareholder interests and motivate performance. Equity awards are generally granted in the
form of BlackRock, Inc. restricted stock units that, once vested, settle in BlackRock, Inc. common stock. Messrs. Jaeckel and O’Connor
have unvested long-term incentive awards.
Deferred Compensation Program —
A portion of the compensation paid to eligible United States-based BlackRock employees may be voluntarily deferred at their
election for defined periods of time into an account that tracks the performance of certain of the firm’s investment products.
Any portfolio manager who is either a managing director or director at BlackRock with compensation above a specified threshold
is eligible to participate in the deferred compensation program.
Other Compensation Benefits. In
addition to base salary 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, Inc. 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 8% of eligible pay contributed
to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation up to the Internal
Revenue Service limit ($260,000 for 2014). The RSP offers a range of investment options, including registered investment
companies and collective investment funds managed by the firm. BlackRock, Inc. contributions follow the investment direction set
by participants for their own contributions or, absent participant investment direction, are invested into a target date fund that
corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock,
Inc. 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 of common stock or a dollar value of $25,000 based on its fair market value on
the purchase date. All of the eligible portfolio managers are eligible to participate in these plans.
(a)(4) Beneficial Ownership
of Securities – As of July 31, 2014.
Portfolio Manager |
Dollar Range of Equity Securities of the Fund Beneficially Owned |
Theodore R. Jaeckel, Jr., CFA |
None |
Walter O’Connor, CFA |
None |
Robert Sneeden |
None |
(b) Not Applicable
Item 9 – Purchases of
Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases
during the period covered by this report.
Item 10 – Submission of Matters
to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 – Controls and Procedures
(a) – The registrant’s principal executive
and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”))
are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
(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
(a)(1) – Code of Ethics
– See Item 2
(a)(2) – Certifications
– Attached hereto
(a)(3) – Not Applicable
(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/ John M. Perlowski |
|
|
John M. Perlowski |
|
|
Chief Executive Officer (principal executive officer) of |
|
|
BlackRock Municipal Income Investment
Trust |
Date: October 1, 2014
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/ John M. Perlowski |
|
|
John M. Perlowski |
|
|
Chief Executive Officer (principal executive officer) of |
|
|
BlackRock Municipal Income Investment
Trust |
Date: October 1, 2014
|
By: |
/s/ Neal J. Andrews |
|
|
Neal J. Andrews |
|
|
Chief Financial Officer (principal
financial officer) of |
|
|
BlackRock Municipal Income Investment
Trust |
Date: October 1, 2014