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: 07/31/2015

 

Date of reporting period: 01/31/2015

 

Item 1 – Report to Stockholders

 
 

JANUARY 31, 2015

SEMI-ANNUAL REPORT (UNAUDITED)  

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
 
  

Table of Contents

 
           Page    
The Markets in Review
           3    
Semi-Annual Report:
                
Municipal Market Overview
           4    
The Benefits and Risks of Leveraging
           5    
Derivative Financial Instruments
           5    
Trust Summaries
           6    
Financial Statements:
                
Schedules of Investments
           18    
Statements of Assets and Liabilities
           46    
Statements of Operations
           47    
Statements of Changes in Net Assets
           48    
Statements of Cash Flows
           50    
Financial Highlights
           51    
Notes to Financial Statements
           57    
Officers and Trustees
           68    
Additional Information
           69    
2 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
The Markets in Review 

 

Dear Shareholder,

Market volatility, while remaining below the long-term average level, increased over the course of 2014 and into 2015, driven largely by higher valuations in risk assets (such as equities and high yield bonds), escalating geopolitical risks, uneven global economic growth and expectations around policy moves from the world’s largest central banks. Surprisingly, U.S. interest rates trended lower through the period even as the U.S. Federal Reserve (the “Fed”) gradually reduced its bond buying program, which ultimately ended in October.

The first half of 2014 was generally a strong period for most asset classes; however, volatility ticked up in the summer as geopolitical tensions intensified in Ukraine and the Middle East and investors feared that better U.S. economic indicators may compel the Fed to increase short-term interest rates sooner than previously anticipated. Global credit markets tightened as the U.S. dollar strengthened versus other currencies, ultimately putting a strain on investor flows, and financial markets broadly weakened in the third quarter.

Several themes dominated the markets in the fourth quarter that resulted in the strong performance of U.S. markets versus other areas of the world. Economic growth strengthened considerably in the United States while the broader global economy showed signs of slowing. The European Central Bank and the Bank of Japan took aggressive measures to stimulate growth while the Fed moved toward tighter policy, causing further strengthening in the U.S. dollar. Fixed income investors piled into U.S. Treasuries where yields, although persistently low, were comparatively higher than yields on international sovereign debt, while equity investors favored the relative stability of U.S.-based companies amid rising global risks.

Oil prices, which had been gradually declining since mid-summer, suddenly plummeted in the fourth quarter due to a global supply-and-demand imbalance. Energy stocks sold off sharply and oil-exporting economies struggled, mainly within emerging markets. Conversely, the consumer sectors benefited from lower oil prices as savings at the gas pumps freed up discretionary income for other goods and services.

These trends shifted at the beginning of 2015. U.S. equity markets starkly underperformed international markets due to stretched valuations and uncertainty around the Fed’s pending rate hike. In addition, the stronger U.S. dollar began to hurt earnings of large cap companies. The energy sector continued to struggle, although oil prices showed signs of stabilizing toward the end of January as suppliers became more disciplined in their exploration and production efforts.

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 today’s markets.

Sincerely,

  

Rob Kapito
President, BlackRock Advisors, LLC


 

Rob Kapito
President, BlackRock Advisors, LLC


Total Returns as of January 31, 2015

         6-month      12-month
U.S. large cap equities (S&P 500® Index)
           4.37 %           14.22 %  
U.S. small cap equities (Russell 2000® Index)
           4.72            4.41   
International equities (MSCI Europe, Australasia, Far East Index)
           (6.97 )           (0.43 )  
Emerging market equities (MSCI Emerging Markets Index)
           (9.05 )           5.23   
3-month Treasury bill (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)
           0.01            0.03   
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)
           9.29            12.25   
U.S. investment grade bonds (Barclays U.S. Aggregate Bond Index)
           4.36            6.61   
Tax-exempt municipal
bonds (S&P Municipal
Bond Index)
           4.51            8.81   
U.S. high yield bonds (Barclays U.S. Corporate High Yield 2% Issuer Capped Index)
           (0.89 )           2.41   

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
 
  
Municipal Market Overview 

For the Reporting Period Ended January 31, 2015

Municipal Market Conditions

Municipal bonds generated strong performance in 2014, thanks to a favorable supply-and-demand environment and declining interest rates. (Bond prices rise as rates fall.) Investor demand for municipal bonds was strong from the start of the year when U.S. economic data softened amid one of the harshest winters on record. Interest rates proceeded to move lower even as the U.S. Federal Reserve (the “Fed”) scaled back its open-market bond purchases. This surprising development, coupled with reassurance from the Fed that short-term rates would remain low for a considerable amount of time, resulted in strong demand for fixed income investments in 2014, with municipal bonds being one of the stronger performing sectors for the year. For the 12-month period ended January 31, 2015, municipal bonds garnered net inflows of approximately $32 billion (based on data from the Investment Company Institute).

From a historical perspective, total new issuance for the 12 months ended January 31, remained relatively strong at $342 billion (slightly higher than the $326 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 45%) as issuers took advantage of lower interest rates to reduce their borrowing costs.

S&P Municipal Bond Index

Total Returns as of January 31, 2015
  6 months: 4.51%
12 months: 8.81%
   

A Closer Look at Yields

 

From January 31, 2014 to January 31, 2015, yields on AAA-rated 30-year municipal bonds decreased by 135 basis points (“bps”) from 3.85% to 2.50%, while 10-year rates decreased 81 bps from 2.53% to 1.72% and 5-year rates decreased 16 bps from 1.10% to 0.94% (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 146 bps and the spread between 2- and 10-year maturities flattened by 92 bps.

During the same time period, U.S. Treasury rates fell by 136 bps on 30-year bonds, 99 bps on 10-year bonds and 32 bps in 5-year issues. Accordingly, tax-exempt municipal bond performance was generally in line with Treasuries on both the long and short ends of the curve, while lagging in the intermediate portion of the curve as a result of increased supply. Municipals modestly outperformed Treasuries in the very short end of the curve as expectations around future Fed policy changes pressured short-term U.S. Treasury prices. Positive performance on the long end of the curve was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities had become scarce. More broadly, municipal bonds benefited from the greater appeal of tax-exempt investing in light of the higher tax rates implemented in 2014. 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 flexible approach to security selection and yield curve positioning 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, solid revenue growth exceeding pre-recession levels coupled with the elimination of more than 625,000 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 remain minimal and in the periphery, and that the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remain imperative amid uncertainty in a modestly improving economic environment.

Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

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

4 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
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 is based on short-term interest rates, is normally 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 Trust’s shareholders 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 Trust’s 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 Trust’s 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 Trust’s financing cost of leverage is significantly lower than the income earned on the Trust’s 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 Trust’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Trust had not used leverage. Furthermore, the value of the Trust’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of the Trust’s obligations under its leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trust’s NAV positively or negatively.

Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Trust’s intended leveraging strategy will be successful.

Leverage also generally causes 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 Trust’s 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 Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. The Trust incurs 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”) or Remarketable Variable Rate Muni Term Preferred Shares (“RVMTP Shares”) (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 3313% 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 Trust’s obligations under the TOB (including accrued interest), a TOB is not considered a senior security and is not subject to the foregoing limitations and requirements under the 1940 Act.



Derivative Financial Instruments

The Trusts may invest in various derivative financial instruments. 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 manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage. Derivative financial instruments also 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 advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ investments in these instruments are discussed in detail in the Notes to Financial Statements.



SEMI-ANNUAL REPORT JANUARY 31, 2015 5
 
  
Trust Summary as of January 31, 2015 BlackRock California Municipal Income Trust

Trust Overview

BlackRock California Municipal Income Trust’s (BFZ) (the “Trust”) investment objective is to provide current income exempt from regular 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 Trust’s investment objective will be achieved.

Performance

  For the six-month period ended January 31, 2015, the Trust returned 12.85% based on market price and 6.75% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of 12.10% based on market price and 7.85% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  Municipal bonds generally delivered strong performance during the six-month period, with yields declining as prices rose. California issues gained an additional boost from the state’s improving credit profile. Longer-term municipal bonds generally outperformed shorter-term issues. In this environment, the Trust’s exposure to the long end of the yield curve had a positive impact on performance. Its positions in AA-rated issues, bonds issued by school districts, and the transportation, health care and utilities sectors also helped returns. Leverage on the Trust’s assets amplified the positive effect of falling rates on performance.
  There were no detractors from performance on an absolute basis as all areas of the Trust’s investment universe appreciated during 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 New York Stock Exchange (“NYSE”)
     
BFZ
Initial Offering Date
     
July 27, 2001
Yield on Closing Market Price as of January 31, 2015 ($15.80)1
     
5.48%
Tax Equivalent Yield2
     
11.17%
Current Monthly Distribution per Common Share3
     
$0.0722
Current Annualized Distribution per Common Share3
     
$0.8664
Economic Leverage as of January 31, 20154
     
37%
1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum 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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
         BlackRock California Municipal Income Trust

Market Price and Net Asset Value Per Share Summary




   
1/31/15
   
7/31/14
   
Change
   
High
   
Low
Market Price
        $ 15.80         $ 14.41            9.65 %        $ 15.85         $ 14.37   
Net Asset Value
        $ 16.42         $ 15.83            3.73 %        $ 16.42         $ 15.83   

Market Price and Net Asset Value History For the Past Five Years



 
    

Overview of the Trust’s Total Investments*

Sector Allocation



   
1/31/15
   
7/31/14
County/City/Special District/School District
           35 %           33 %  
Utilities
           26             31    
Health
           12             11    
Education
           11             8    
Transportation
           7             7    
State
           6             8    
Tobacco
           1                
Housing
           1             1    
Corporate
           1             1    
  For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by 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,
     
2015
2 %  
2016
2    
2017
10    
2018
18    
2019
35    
3 Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
*
  Excludes short-term securities.

Credit Quality Allocation1



   
1/31/15
   
7/31/14
AAA/Aaa
           8 %           11 %  
AA/Aa
           73             71    
A
           18             18    
BBB/Baa
           2           2  
B
           1                
1 For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) 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 Trust’s total investments.


SEMI-ANNUAL REPORT JANUARY 31, 2015 7
 
  
Trust Summary as of January 31, 2015 BlackRock Florida Municipal 2020 Term Trust

Trust Overview

BlackRock Florida Municipal 2020 Term Trust’s (BFO) (the “Trust”) investment objectives are to provide current income exempt from regular federal income tax and Florida intangible personal property tax and to return $15.00 per common share (the initial offering price per share) to holders of common shares on or about December 31, 2020. The Trust seeks to achieve its investment objectives by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Florida intangible personal property tax. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust actively manages the maturity of its bonds to seek to have a dollar weighted average effective maturity approximately equal to the Trust’s maturity date. The Trust may invest directly in such securities or synthetically through the use of derivatives. Effective January 1, 2007, the Florida intangible personal property tax was repealed.

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

Performance

  For the six-month period ended January 31, 2015, the Trust returned 1.84% based on market price and 2.76% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 8.27% based on market price and 7.81% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  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 Trust’s shorter maturity profile was a disadvantage in comparison to its Lipper category peers, which typically hold longer-dated issues.
  Municipal bonds generally delivered positive performance during the six-month period, with yields declining as prices rose. In this environment, the Trust’s duration exposure (sensitivity to interest rate movements) contributed positively to performance. The Trust’s positions in the health care sector provided the largest total returns for the period, with utilities and transportation making the second- and third-largest contributions. In addition, the Trust’s exposure to zero-coupon bonds, which outperformed current-coupon bonds, benefited returns. The income generated from coupon payments on the Trust’s portfolio of Florida tax-exempt bonds also contributed to performance.
  There were no detractors from performance on an absolute basis as all areas of the Trust’s investment universe appreciated during 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
     
BFO
Initial Offering Date
     
September 30, 2003
Termination Date (on or about)
     
December 31, 2020
Yield on Closing Market Price as of January 31, 2015 ($15.23)1
     
2.73%
Tax Equivalent Yield2
     
4.82%
Current Monthly Distribution per Common Share3
     
$0.0347
Current Annualized Distribution per Common Share3
     
$0.4164
Economic Leverage as of January 31, 20154
     
0%
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 Percentage is less than 1% which represents TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to 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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
         BlackRock Florida Municipal 2020 Term Trust

Market Price and Net Asset Value Per Share Summary




   
1/31/15
   
7/31/14
   
Change
   
High
   
Low
Market Price
        $ 15.23         $ 15.16            0.46 %        $ 15.33         $ 14.90   
Net Asset Value
        $ 15.63         $ 15.42            1.36 %        $ 15.63         $ 15.37   

Market Price and Net Asset Value History For the Past Five Years



 
    

Overview of the Trust’s Total Investments*

Sector Allocation



   
1/31/15
   
7/31/14
County/City/Special District/School District
           38 %           32 %  
State
           17             14    
Health
           15             16    
Transportation
           11             20    
Utilities
           11             10    
Corporate
           4             4    
Education
           3             3    
Housing
           1             1    
  For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by 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,
     
2015
3 %  
2016
   
2017
13    
2018
12    
2019
14    
3 Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
*
  Excludes short-term securities.

Credit Quality Allocation1



   
1/31/15
   
7/31/14
AAA/Aaa
           2 %           2 %  
AA/Aa
           52             47    
A
           25             32    
BBB/Baa
           12             9    
N/R2
           9             10    
1 For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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 January 31, 2015 and July 31, 2014, the market value of unrated securities deemed by the investment advisor to be investment grade was $2,690,710, representing 3%, and $1,703,400, representing 2%, respectively, of the Trust’s total investments.


SEMI-ANNUAL REPORT JANUARY 31, 2015 9
 
  
Trust Summary as of January 31, 2015 BlackRock Municipal Income Investment Trust

Trust Overview

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

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

Performance

  For the six-month period ended January 31, 2015, the Trust returned 10.87% based on market price and 8.34% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.69% based on market price and 8.99% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  Municipal bonds generally delivered strong performance during the six-month period, with yields declining as prices rose. Long-term bonds outperformed their short-term counterparts, leading to a flattening of the yield curve. In this environment, the Trust’s duration positioning contributed positively to performance. The Trust’s longer dated holdings in the transportation, health care, utilities, and tax backed sectors experienced the best price action on an absolute basis. The income generated from the Trust’s holdings of tax-exempt municipal bonds contributed to performance as well. Leverage on the Trust’s assets amplified the positive effect of falling rates on performance.
  There were no detractors from performance on an absolute basis as all areas of the Trust’s investment universe appreciated during 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 January 31, 2015 ($14.49)1
     
5.99%
Tax Equivalent Yield2
     
10.58%
Current Monthly Distribution per Common Share3
     
$0.072375
Current Annualized Distribution per Common Share3
     
$0.868500
Economic Leverage as of January 31, 20154
     
38%
1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum 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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
         BlackRock Municipal Income Investment Trust

Market Price and Net Asset Value Per Share Summary




   
1/31/15
   
7/31/14
   
Change
   
High
   
Low
Market Price
        $ 14.49         $ 13.48            7.49 %        $ 14.50         $ 13.36   
Net Asset Value
        $ 15.85         $ 15.09            5.04 %        $ 15.85         $ 15.09   

Market Price and Net Asset Value History For the Past Five Years



 
    

Overview of the Trust’s Total Investments*

Sector Allocation



   
1/31/15
   
7/31/14
County/City/Special District/School District
           26 %           26 %  
Transportation
           20             21    
Utilities
           16             16    
Health
           15             15    
State
           12             11    
Education
           8             8    
Tobacco
           1             1    
Corporate
           1             1    
Housing
           1             1    
  For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by 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,
                
2015
              
2016
           1 %  
2017
           1    
2018
           17    
2019
           34    
4 Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
*
  Excludes short-term securities.

Credit Quality Allocation1



   
1/31/15
   
7/31/14
AAA/Aaa
           11 %           10 %  
AA/Aa
           57             56    
A
           25             26    
BBB/Baa
           6             6    
BB/Ba
           1             1    
B
           2           2  
N/R3
           2           1    
1 For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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 Trust’s total 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.


SEMI-ANNUAL REPORT JANUARY 31, 2015 11
 
  
Trust Summary as of January 31, 2015 BlackRock Municipal Target Term Trust

Trust Overview

BlackRock Municipal Target Term Trust’s (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 Trust’s maturity date. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Performance

  For the six-month period ended January 31, 2015, the Trust returned 12.95% based on market price and 11.84% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.69% based on market price and 8.99% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  Municipal bonds generally delivered positive performance during the six-month period, with yields declining as prices rose. In this environment, the Trust’s duration exposure (sensitivity to interest rate movements) contributed positively to performance. The Trust’s exposure to long-maturity bonds also benefited performance given that the yield curve flattened. In addition, the Trust’s exposure to zero-coupon bonds, which outperformed current-coupon bonds, benefited returns. The income generated from coupon payments on the Trust’s portfolio of tax-exempt bonds also contributed to performance. The Trust’s positions in the transportation and health care sectors provided the largest total returns for the period. Leverage on the Trust’s assets amplified the positive effect of falling rates on performance.
  There were no detractors from performance on an absolute basis as all areas of the Trust’s investment universe appreciated during 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 January 31, 2015 ($21.59)1
     
4.45%
Tax Equivalent Rate2
     
7.86%
Current Monthly Distribution per Common Share3
     
$0.08
Current Annualized Distribution per Common Share3
     
$0.96
Economic Leverage as of January 31, 20154
     
36%
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 distribution rate is not constant and is subject to change. 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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
         BlackRock Municipal Target Term Trust

Market Price and Net Asset Value Per Share Summary




   
1/31/15
   
7/31/14
   
Change
   
High
   
Low
Market Price
        $ 21.59         $ 19.57            10.32 %        $ 21.63         $ 19.49   
Net Asset Value
        $ 24.02         $ 21.99            9.23 %        $ 24.02         $ 21.99   

Market Price and Net Asset Value History Since Inception


 
    

1 Commencement of operations.

Overview of the Trust’s Total Investments*

Sector Allocation



   
1/31/15
   
7/31/14
Transportation
           24 %           22 %  
Health
           18             17    
County/City/Special District/School District
           15             13    
Education
           11             12    
Corporate
           9             11    
Housing
           8             9    
Utilities
           8             8    
State
           5             6    
Tobacco
           2             2    
  For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by 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,
                
2015
              
2016
           1 %  
2017
           1    
2018
           1    
2019
              
4 Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
*
  Excludes short-term securities.

Credit Quality Allocation2



   
1/31/15
   
7/31/14
AAA/Aaa
           3 %           4 %  
AA/Aa
           31             31    
A
           43             42    
BBB/Baa
           13             12    
BB/Ba
           4             3    
B
           1             2    
N/R3
           5             6    
2 For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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 January 31, 2015 and July 31, 2014, the market value of unrated securities deemed by the investment advisor to be investment grade was $504,250, and $483,970, each representing less than 1%, respectively, of the Trust’s total investments.


SEMI-ANNUAL REPORT JANUARY 31, 2015 13
 
  
Trust Summary as of January 31, 2015 BlackRock New Jersey Municipal Income Trust

Trust Overview

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

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

Performance

  For the six-month period ended January 31, 2015, the Trust returned 16.23% based on market price and 8.98% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 8.91% based on market price and 7.86% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  Municipal bonds generally delivered strong performance during the six-month period, with yields declining as prices rose. Long-term bonds outperformed their short-term counterparts, leading to a flattening of the yield curve. In this environment, the Trust’s duration positioning contributed positively to performance. The Trust’s longer dated holdings in the tax-backed, transportation and education sectors experienced the best price action on an absolute basis. The income generated from the Trust’s holdings of tax-exempt municipal bonds contributed to performance as well. Leverage on the Trust’s assets amplified the positive effect of falling rates on performance.
  There were no detractors from performance on an absolute basis as all areas of the Trust’s investment universe appreciated during 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 January 31, 2015 ($16.55)1
     
5.45%
Tax Equivalent Yield2
     
10.58%
Current Monthly Distribution per Common Share3
     
$0.0751
Current Annualized Distribution per Common Share3
     
$0.9012
Economic Leverage as of January 31, 20154
     
38%
1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum 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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
         BlackRock New Jersey Municipal Income Trust

Market Price and Net Asset Value Per Share Summary




   
1/31/15
   
7/31/14
   
Change
   
High
   
Low
Market Price
        $ 16.55         $ 14.68            12.74 %        $ 16.56         $ 14.12   
Net Asset Value
        $ 16.50         $ 15.61            5.70 %        $ 16.50         $ 15.61   

Market Price and Net Asset Value History For the Past Five Years



 
    

Overview of the Trust’s Total Investments*

Sector Allocation



   
1/31/15
   
7/31/14
Transportation
           34 %           33 %  
State
           17             15    
Education
           16             17    
County/City/Special District/School District
           15             13    
Health
           7             8    
Corporate
           6             8    
Housing
           4             6    
Utilities
           1                
  For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by 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,
     
2015
4 %  
2016
1    
2017
2    
2018
12    
2019
10    
3 Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
*
  Excludes short-term securities.

Credit Quality Allocation1



   
1/31/15
   
7/31/14
AAA/Aaa
           2 %           2 %  
AA/Aa
           40             40    
A
           39             35    
BBB/Baa
           9             9    
BB/Ba
           5             4    
B
           3             3    
N/R2
           2             7    
1 For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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 January 31, 2015 and July 31, 2014, the market value of unrated securities deemed by the investment advisor to be investment grade was $1,358,912, representing 1%, and $10,254,522, representing 5%, respectively, of the Trust’s total investments.


SEMI-ANNUAL REPORT JANUARY 31, 2015 15
 
  
Trust Summary as of January 31, 2015 BlackRock New York Municipal Income Trust

Trust Overview

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

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

Performance

  For the six-month period ended January 31, 2015, the Trust returned 12.10% based on market price and 9.65% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 9.11% based on market price and 7.97% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  Municipal bonds generally delivered strong performance during the six-month period, with yields declining as prices rose. Longer-term municipal bonds generally outperformed shorter-term issues. In this environment, the Trust’s duration positioning and allocation to longer-dated bonds provided positive returns. The Trust’s exposure to the education, tax-backed (state and local) and transportation sectors were positive contributors to performance. Positions in lower-coupon bonds, which tend to have longer durations and more capital appreciation potential than bonds with higher coupons, helped performance as yields fell during the period. (Duration measures sensitivity to interest rate movements.) The Trust’s positions in zero-coupon bonds also aided returns, as these securities generated strong price performance. The Trust’s exposure to higher-yielding bonds in the lower Investment-grade quality category aided performance, as this market segment outperformed during the period. The Trust also benefited from income generated in the form of coupon payments from its portfolio of municipal bond holdings. In addition, leverage on the Trust’s assets amplified the positive effect of falling rates on performance.
  There were no detractors from performance on an absolute basis as all areas of the Trust’s investment universe appreciated during 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 January 31, 2015 ($15.02)1
     
5.51%
Tax Equivalent Yield2
     
11.15%
Current Monthly Distribution per Common Share3
     
$0.069
Current Annualized Distribution per Common Share3
     
$0.828
Economic Leverage as of January 31, 20154
     
38%
1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum 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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
         BlackRock New York Municipal Income Trust

Market Price and Net Asset Value Per Share Summary




   
1/31/15
   
7/31/14
   
Change
   
High
   
Low
Market Price
        $ 15.02         $ 13.79            8.92 %        $ 15.05         $ 13.55   
Net Asset Value
        $ 15.64         $ 14.68            6.54 %        $ 15.64         $ 14.68   

Market Price and Net Asset Value History For the Past Five Years



 
    

Overview of the Trust’s Total Investments*

Sector Allocation



   
1/31/15
   
7/31/14
County/City/Special District/School District
           24 %           24 %  
Education
           20             19    
Transportation
           14             14    
Utilities
           13             13    
Health
           10             10    
State
           9             9    
Corporate
           8             9    
Housing
           2             2    
  For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by 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,
     
2015
9 %  
2016
3    
2017
12    
2018
3    
2019
7    
3 Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
*
  Excludes short-term securities.

Credit Quality Allocation1



   
1/31/15
   
7/31/14
AAA/Aaa
           17 %           16 %  
AA/Aa
           39             39    
A
           30             29    
BBB/Baa
           5             6    
BB/Ba
           3             4    
N/R2
           6             6    
1 For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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 January 31, 2015 and July 31, 2014, the market value of unrated securities deemed by the investment advisor to be investment grade was $2,158,957 and $2,704,682, each representing 1%, respectively, of the Trust’s total investments.


SEMI-ANNUAL REPORT JANUARY 31, 2015 17
 
  
Schedule of Investments January 31, 2015 (Unaudited) BlackRock California Municipal Income Trust (BFZ)
(Percentages shown are based on Net Assets)
   
Municipal Bonds          Par
(000)
     Value
California — 98.3%
Corporate — 0.7%
                                        
City of Chula Vista California, Refunding RB, San Diego Gas & Electric:
                                        
Series A, 5.88%, 2/15/34
        $    685          $      822,322     
Series D, 5.88%, 1/01/34
           2,500            3,001,175   
 
                         3,823,497   
County/City/Special District/School District — 33.6%
Butte-Glenn Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/30
           8,425            9,923,218   
Centinela Valley Union High School District, GO, Refunding, Election of 2008, Series B, 5.75%, 8/01/33
           1,250            1,551,875   
Cerritos Community College District, GO, Election of 2004, Series C, 5.25%, 8/01/19 (a)
           3,000            3,594,120   
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
                                        
6.13%, 5/01/31
           500             608,395   
6.50%, 5/01/36
           1,210            1,502,505   
6.50%, 5/01/42
           2,225            2,739,576   
County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35
           2,000            2,354,740   
County of Orange California Water District, COP, Refunding, 5.25%, 8/15/34
           2,000            2,346,160   
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A:
                                        
6.00%, 3/01/36
           2,880            3,557,174   
5.50%, 3/01/41
           5,265            6,282,145   
County of Santa Clara California Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36
           20,000            22,385,600   
Evergreen Elementary School District, GO, Election of 2006, Series B (AGC), 5.13%, 8/01/33
           2,500            2,889,050   
Grossmont Healthcare District, GO, Election of 2006, Series B:
                                        
6.00%, 7/15/34
           3,260            4,037,966   
6.13%, 7/15/40
           2,000            2,492,340   
Long Beach Unified School District California, GO, Refunding, Election of 2008, Series A, 5.75%, 8/01/33
           4,135            5,002,771   
Los Alamitos Unified School District California, GO, School Facilities Improvement District No. 1, 5.50%, 8/01/33
           6,315            7,344,787   
Los Angeles Community College District California, GO, Election of 2003, Series F-1, 5.00%, 8/01/18 (a)
           5,000            5,752,000   
Los Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/30
           5,065            5,904,321   

 

Municipal Bonds          Par
(000)
     Value
California (continued)
County/City/Special District/School District (concluded)
Modesto Irrigation District, COP, Capital Improvements, Series A, 5.75%, 10/01/29
        $  3,015         $    3,502,134     
Oak Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33
           6,000            7,059,840   
Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39
           2,000            2,353,920   
Pittsburg Unified School District, GO, Election of 2006, Series B (AGM), 5.50%, 8/01/34
           2,000            2,280,520   
Sacramento Area Flood Control Agency, Special Assessment Bonds, Consolidated Capital Assessment District, 5.25%, 10/01/32
           4,865            5,807,156   
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33
           1,500            1,752,960   
San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36
           5,520            6,393,319   
San Jose California Financing Authority, Refunding LRB, Civic Center Project, Series A, 5.00%, 6/01/32
           3,375            4,000,657   
San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 8/01/41
           3,060            3,675,672   
San Mateo County Community College District, GO, Election of 2005, Series B, 5.00%, 9/01/16 (a)
           8,630            9,270,260   
Santa Ana Unified School District, GO, Election of 2008, Series A:
                                        
5.50%, 8/01/30
           6,455            7,422,540   
5.13%, 8/01/33
           10,000            11,326,200   
Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38
           2,250            2,659,073   
Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 8/01/33
           4,000            4,816,760   
Tustin Unified School District, GO, Election of 2008, Series B, 5.25%, 8/01/31
           3,445            4,089,870   
West Contra Costa California Unified School District, GO, Series A:
                                        
Election of 2010 (AGM), 5.25%, 8/01/32
           4,945            5,893,550   
Election of 2012, 5.50%, 8/01/39
           2,500            3,022,300   
 
                         175,595,474   
Education — 4.4%
                                        
California Educational Facilities Authority, RB, California Institute of Technology, 5.00%, 11/01/39
           4,000            4,637,760   
California Educational Facilities Authority, Refunding RB, San Francisco University, 6.13%, 10/01/36
           6,280            7,712,468   
California Municipal Finance Authority, RB, Emerson College, 5.75%, 1/01/33
           2,500            2,955,750   
State of California, GO, Refunding, 5.00%, 10/01/44
           6,000            7,127,940   
University of California, RB, Series O, 5.38%, 5/15/34
           490             571,820   
 
                         23,005,738   


    

Portfolio Abbreviations

ACA
AGC
AGM
AMBAC
AMT
ARB
BARB
BHAC
CAB
CIFG
 
American Capital Access Holding Ltd.
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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
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 — 15.2%
                                        
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare:
                                        
Series A, 6.00%, 8/01/30
        $  2,300         $    2,837,717     
Series B, 6.25%, 8/01/39
           4,960            5,905,822   
California Health Facilities Financing Authority, RB:
                                        
Adventist Health System West, Series A, 5.75%, 9/01/39
           6,700            7,849,050   
Catholic Healthcare West, Series J, 5.63%, 7/01/15 (a)
           9,750            9,975,030   
Children’s Hospital, Series A, 5.25%, 11/01/41
           9,165            10,374,688   
St. Joseph Health System, Series A, 5.75%, 7/01/39
           355             417,125   
Sutter Health, Series A, 5.25%, 11/15/46
           5,195            5,586,132   
Sutter Health, Series B, 6.00%, 8/15/42
           6,015            7,285,609   
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A:
                                        
6.00%, 7/01/34
           4,475            5,320,283   
6.00%, 7/01/39
           5,550            6,556,603   
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series B, 5.25%, 3/01/45
           2,000            2,086,460   
California Statewide Communities Development Authority, Refunding RB:
                                        
Catholic Healthcare West, Series B, 5.50%, 7/01/30
           2,920            3,265,407   
Catholic Healthcare West, Series E, 5.50%, 7/01/31
           5,065            5,668,039   
Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41
           4,000            4,520,000   
Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38
           1,625            2,014,886   
 
                         79,662,851   
State — 9.4%
                                        
State of California, GO, Various Purposes:
                                        
6.00%, 3/01/33
           2,000            2,477,840   
6.00%, 4/01/38
           15,875            19,187,795   
State of California Public Works Board, LRB:
                                        
Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33
           3,335            4,005,402   
Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34
           9,000            11,022,750   
Various Capital Projects, Series I, 5.50%, 11/01/33
           4,940            6,111,966   
Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34
           5,025            6,248,989   
 
                         49,054,742   
Tobacco — 1.8%
                                        
Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior, Series A-1, 5.75%, 6/01/47
           10,875            9,605,561   
Transportation — 11.5%
                                        
City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39
           6,750            8,089,470   
City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT, 5.25%, 5/01/33
           1,440            1,693,656   
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport:
                                        
Senior Series A, 5.00%, 5/15/34
           6,650            7,704,956   
Senior Series A, 5.00%, 5/15/40
           8,250            9,497,647   
Sub-Series C, 5.25%, 5/15/38
           1,960            2,195,122   

 

Municipal Bonds          Par
(000)
     Value
California (concluded)
Transportation (concluded)
                                        
City of San Jose California, Refunding ARB, Series A-1, AMT:
                                        
5.75%, 3/01/34
        $  2,895         $    3,355,710     
6.25%, 3/01/34
           2,650            3,161,530   
County of Orange California, ARB, Series B, 5.75%, 7/01/34
           8,000            8,920,400   
County of Sacramento California, ARB:
                                        
PFC/Grant, Sub-Series D, 6.00%, 7/01/35
           3,000            3,466,260   
Senior Series B, 5.75%, 7/01/39
           1,850            2,122,117   
Senior Series B, AMT (AGM), 5.25%, 7/01/33
           3,035            3,296,465   
Los Angeles Harbor Department, RB, Series B, 5.25%, 8/01/34
           5,580            6,489,149   
 
                         59,992,482   
Utilities — 21.7%
                                        
Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36
           7,690            9,210,159   
California Infrastructure & Economic Development Bank, RB, California Independent System Operator, Series A, 6.25%, 2/01/15
           4,500            4,500,765   
City of Chula Vista California, Refunding RB, San Diego Gas & Electric:
                                        
Series B, 5.88%, 2/15/34
           525             630,247   
Series D, 5.88%, 1/01/34
           6,555            7,869,081   
City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39
           4,000            4,627,880   
City of Los Angeles California Wastewater System, Refunding RB, Series A, 5.00%, 6/01/39
           2,000            2,287,820   
City of Petaluma California Wastewater, Refunding RB, 6.00%, 5/01/36
           5,625            6,888,037   
City of San Francisco California Public Utilities Commission Water Revenue, RB, Series A:
                                        
5.00%, 11/01/35
           10,625            12,303,219   
5.00%, 11/01/37
           5,000            5,832,600   
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33
           4,250            4,742,490   
Cucamonga Valley Water District, Refunding RB, Series A (AGM), 5.25%, 9/01/31
           4,270            5,170,159   
Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41
           2,425            2,956,390   
East Bay California Municipal Utility District Water System Revenue, Refunding RB, Series A, 5.00%, 6/01/36
           6,745            7,916,202   
El Dorado Irrigation District / El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 3/01/39
           10,000            12,078,100   
Los Angeles Department of Water & Power, RB:
                                        
Power System, Sub-Series A-1, 5.25%, 7/01/38
           9,000            10,180,350   
Series A, 5.38%, 7/01/34
           3,250            3,750,402   
San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/34
           11,020            12,797,857   
 
                         113,741,758   
Total Municipal Bonds in California
                         514,482,103   
 
                                        
Multi-State — 0.8%
Housing — 0.8%
                                        
Centerline Equity Issuer Trust (b)(c):
                                        
Series A-4-1, 5.75%, 5/15/15
           500             505,935   
Series A-4-2, 6.00%, 5/15/19
           1,000            1,155,290   
Series B-3-1, 6.00%, 5/15/15
           1,500            1,517,880   
Series B-3-2, 6.30%, 5/15/19
           1,000            1,166,110   
Total Municipal Bonds in Multi-State
                         4,345,215   
Total Municipal Bonds — 99.1%
                         518,827,318   


See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 19
 
  
Schedule of Investments (continued)   BlackRock California Municipal Income Trust (BFZ)
(Percentages shown are based on Net Assets)
    
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
         Par
(000)
     Value
California — 59.2%
County/City/Special District/School District — 22.6%
California Health Facilities Financing Authority, RB, Sutter Health, Series A, 5.00%, 8/15/52
        $  9,695         $   11,021,135     
Los Angeles Community College District California, GO, Series A:
                                        
Election of 2001, (AGM), 5.00%, 8/01/17 (a)
           8,000            8,886,800   
Election of 2008, Series C, 5.25%, 8/01/39 (e)
           12,900            15,238,706   
Los Angeles Community College District California, GO, Refunding, Election of 2008, 6.00%, 8/01/19 (a)
           20,131            24,805,149   
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34
           5,000            5,736,450   
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33
           10,484            12,252,579   
San Joaquin California Delta Community College District, Series C, Election of 2004, 5.00%, 8/01/39
           14,505            17,164,604   
San Jose Unified School District, Series C, 4.00%, 8/01/39
           6,100            6,502,295   
San Jose Unified School District Santa Clara County California, GO, Election of 2002, Series D, 5.00%, 8/01/32
           14,625            16,502,099   
 
                         118,109,817   
Education — 12.7%
                                        
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (e)
           10,395            11,836,371   
Grossmont Union High School District, GO, Election of 2004, 5.00%, 8/01/33
           13,095            14,589,640   
University of California, Refunding, Series AI, 5.00%, 5/15/38
           14,225            16,721,296   
University of California, RB:
                                        
Series AM, 5.25%, 5/15/44
           5,000            6,064,300   
Limited Project, Series D (AGM), 5.00%, 5/15/41
           2,600            2,773,966   
Series O, 5.75%, 5/15/34
           12,300            14,585,463   
 
                         66,571,036   
Health — 4.1%
                                        
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42
           18,960            21,470,683   

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
         Par
(000)
     Value
California (concluded)
Utilities — 19.8%
                                        
County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/17 (a)
        $ 14,700         $   16,031,820   
County of Orange California Water District, COP, Refunding, 5.00%, 8/15/39
           10,480            12,133,639   
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33
           10,040            11,203,435   
Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33
           18,002            20,265,663   
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37
           15,998            17,455,144   
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37
           11,180            12,266,137   
San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/39
           12,457            14,428,506   
 
                         103,784,344   
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 59.2%
                         309,935,880   
Total Long-Term Investments
(Cost — $738,532,086) — 158.3%
                         828,763,198   

Short-Term Securities
           Shares                  
BIF California Municipal Money Fund, 0.00% (f)(g)
           1,101,477            1,101,477   
 
           Par
(000)
                 
California School Cash Reserve Program Authority, RB, Series G, 2.00%, 2/27/15 (g)
        $  1,665             1,666,749   
Total Short-Term Securities
(Cost — $2,768,296) — 0.5%
                         2,768,226   
Total Investments (Cost — $741,300,382) — 158.8%
     831,531,424   
Other Assets Less Liabilities — 0.8%
                         4,252,706   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (26.9%)
                         (140,958,339 )  
VMTP Shares, at Liquidation Value — (32.7%)
                         (171,300,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 523,525,791   


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)      
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.
         
(c)      
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.
         
(d)      
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.
         
(e)      
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 $14,013,480.
         
(f)      
During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate



   
Shares
Held at
July 31, 2014

   
Net
Activity

   
Shares
Held at
January 31, 2015

   
Income
BIF California Municipal Money Fund
     
540,673
  
560,804
  
1,101,477
  

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

See Notes to Financial Statements.
 

20 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Schedule of Investments (concluded)   BlackRock California Municipal Income Trust (BFZ)
    
     
As of January 31, 2015, financial futures contracts outstanding were as follows:

Contracts
Short


   
Issue
   
Exchange
   
Expiration
   
Notional
Value
   
Unrealized
Depreciation
(400)
     
10-Year U.S. Treasury Note
  
Chicago Board of Trade
  
March 2015
  
$52,350,000
     $ (1,323,696 )  

     
For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by 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. 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. 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. The three levels of the fair value hierarchy are as follows:
         
     
Level 1 — unadjusted quoted prices 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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
         
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.
       

As of January 31, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                                                
Investments:
                                                                                
Long-Term Investments1
                    $ 828,763,198                     $ 828,763,198     
Short-Term Securities
        $ 1,101,477            1,666,749                        2,768,226   
Total
        $    1,101,477         $  830,429,947                     $  831,531,424   
1See above Schedule of Investments for values in each sector.




   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                                                
Liabilities:
                                                                                
Interest rate contracts
        $   (1,323,696 )                                $   (1,323,696 )   
2Derivative 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 January 31, 2015, 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
        $ 543,000                                 $ 543,000     
Liabilities:
                                                                                
TOB trust certificates
                    $ (140,932,546 )                       (140,932,546 )  
VMTP Shares
                       (171,300,000 )                       (171,300,000 )  
Total
        $      543,000         $ (312,232,546 )                    $ (311,689,546 )  

       
During the six months ended January 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 21
 
  
Schedule of Investments January 31, 2015 (Unaudited) BlackRock Florida Municipal 2020 Term Trust (BFO)
(Percentages shown are based on Net Assets)
    
Municipal Bonds          Par
(000)
     Value
Florida — 95.0%
Corporate — 4.1%
                                        
County of Hillsborough Florida IDA, Refunding RB, Tampa Electric Co. Project, Series A, 5.65%, 5/15/18
        $ 1,000         $ 1,140,860   
County of Palm Beach Florida Solid Waste Authority, Refunding RB, 5.00%, 10/01/20
           2,000            2,391,660   
 
                         3,532,520   
County/City/Special District/School District — 37.6%
City of Jacksonville Florida, Refunding RB, Better Jacksonville Sales Tax, 5.00%, 10/01/20
           4,000            4,783,320   
County of Broward Florida School Board, COP, Refunding, Series A, 5.00%, 7/01/20
           2,000            2,387,200   
County of Broward Florida School Board, COP, Series A (AGM), 5.25%, 7/01/22
           2,500            2,830,650   
County of Hillsborough Florida, RB (AMBAC), 5.00%, 11/01/20
           5,545            6,194,153   
County of Miami-Dade Florida School Board, COP, Refunding, Series B (AGC), 5.25%, 5/01/21
           4,000            4,509,000   
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            1,018,960   
Florida State Board of Education, GO, Refunding, Capital Outlay, Series B, 5.00%, 6/01/20
           485             574,395   
Indian River County School Board, COP, Refunding, Series A, 5.00%, 7/01/20
           1,000            1,178,390   
Miami-Dade County School Board Foundation Inc., COP, Refunding Series A, 5.00%, 5/01/20
           1,250            1,477,125   
Palm Beach County School District, COP, Refunding, Series B, 5.00%, 8/01/20
           3,000            3,575,610   
Sterling Hill Community Development District, Refunding, Special Assessment Bonds, Series A, 6.10%, 5/01/23
           3,015            2,358,695   
Stevens Plantation Florida Imports Project Dependent Special District, RB, 6.38%, 5/01/49 (a)(b)
           2,425            1,809,826   
 
                         32,697,324   
Education — 2.9%
                                        
County of Orange Florida Educational Facilities Authority, RB, Rollins College Project (AMBAC), 5.25%, 12/01/22
           725             813,762   
Florida State Board of Governors, Refunding RB, University of Central Florida, Series A, 5.00%, 7/01/18
           500             563,645   
Florida State Higher Educational Facilities Financial Authority, Refunding RB, University of Tampa Project, Series A, 5.00%, 4/01/20
           1,000            1,145,960   
 
                         2,523,367   
Health — 14.8%
                                        
Brevard County Health Facilities Authority, Refunding RB, 5.00%, 4/01/20
           500             587,270   
County of Highlands Florida Health Facilities Authority, Refunding RB, Hospital, Adventist Health, Series I, 5.00%, 11/15/20
           2,155             2,537,125   
County of Marion Florida Hospital District, Refunding RB, Health System, Munroe Regional, 5.00%, 10/01/22 (c)
           1,500            1,671,750     
County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center:
                                        
3.00%, 6/01/15
           200             201,334   
3.00%, 6/01/16
           140             142,395   
3.00%, 6/01/17
           190             195,947   
3.25%, 6/01/18
           195             203,874   
3.50%, 6/01/19
           200             212,368   

 

Municipal Bonds          Par
(000)
     Value
Florida (concluded)
Health (concluded)
                                        
County of Palm Beach Florida Health Facilities Authority, Refunding RB:
                                        
Acts Retirement-Life Communities, Inc., 5.00%, 11/15/22
        $ 4,735         $  5,439,900     
Bethesda Healthcare System Project, Series A (AGM), 5.00%, 7/01/20
           1,285            1,516,788   
Miami Beach Health Facilities Authority, Refunding RB, 5.00%, 11/15/20
           150             176,015   
 
                         12,884,766   
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
           190             193,695   
Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 2, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 4.70%, 7/01/22
           425             436,220   
Jacksonville Housing Finance Authority, Refunding RB, Series A-1, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.63%, 10/01/39
           125             126,159   
 
                         756,074   
State — 13.8%
                                        
Florida Municipal Loan Council, RB, Series D (AGM):
                                        
5.00%, 10/01/19
           1,050            1,219,733   
4.00%, 10/01/20
           1,105            1,236,075   
4.00%, 10/01/21
           500             560,890   
Florida Municipal Loan Council, Refunding RB:
                                        
CAB, Series A (NPFGC), 0.00%, 4/01/20 (d)
           4,000            3,502,200   
Series B-2 (AGM), 4.00%, 10/01/20
           655             731,288   
State of Florida Board of Education, GO, Refunding, Capital Outlay, Series B, 5.00%, 6/01/20
           1,000            1,202,960   
State of Florida Department of Environmental Protection, Refunding RB, Series A, 5.00%, 7/01/20
           3,000            3,580,800   
 
                         12,033,946   
Transportation — 10.9%
                                        
County of Broward Florida Fuel System, RB, Lauderdale Fuel Facilities, Series A (AGM), AMT, 5.00%, 4/01/20
           160             182,931   
County of Broward Florida Port Facilities, Refunding RB, Series B, AMT, 5.00%, 9/01/20
           2,500            2,934,850   
County of Miami-Dade Florida, Refunding RB, Series A, AMT, 5.00%, 10/01/20
           1,375            1,614,539   
County of Miami-Dade Florida Expressway Authority, Refunding RB, Toll System, Series A, 5.00%, 7/01/20
           1,500            1,790,400   
County of Miami-Dade Florida Transit System Sales Surtax, Refunding RB, 5.00%, 7/01/20
           550             655,209   
Greater Orlando Aviation Authority, Refunding RB, Series C, 5.00%, 10/01/20
           1,130            1,349,921   
Jacksonville Florida Port Authority, Refunding RB, AMT, 4.00%, 11/01/20
           865             943,196   
 
                         9,471,046   
Utilities — 10.0%
                                        
City of North Miami Florida Beach Water Revenue, RB, 5.00%, 8/01/20
           1,200            1,408,104   
County of Miami-Dade Florida Water & Sewer System, Refunding RB, Series B (AGM), 5.25%, 10/01/19
           4,000            4,759,480   
Florida Governmental Utility Authority, RB, Golden Gate Utility System (AGM), 5.00%, 7/01/19
           510             590,544   
Florida Governmental Utility Authority, Refunding RB:
                                        
4.00%, 10/01/20
           500             565,140   
Lehigh Utility (AGM), 5.00%, 10/01/20
           635             752,024   
Town of Davie Florida, Refunding RB, Nova Southeastern University Project, Series B, 5.00%, 4/01/20
           530             607,359   
 
                         8,682,651   
Total Municipal Bonds in Florida
                         82,581,694   


See Notes to Financial Statements.
 

22 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Schedule of Investments (continued)   BlackRock Florida Municipal 2020 Term Trust (BFO)
(Percentages shown are based on Net Assets)
    
 
Municipal Bonds
         Par
(000)
     Value
Guam — 0.5%
Utilities — 0.5%
                                        
Guam Government Waterworks Authority, RB, 5.25%, 7/01/20
        $   100          $ 116,251     
Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/20
           310             369,356   
Total Municipal Bonds in Guam
                         485,607   
 
U.S. Virgin Islands — 3.1%
State — 3.1%
                                        
Virgin Islands Public Finance Authority, RB, Series A:
                                        
5.00%, 10/01/18
           590             656,174   
5.00%, 10/01/19
           1,810            2,051,291   
Total Municipal Bonds in U.S. Virgin Islands
                         2,707,465   
Total Municipal Bonds — 98.6%
                         85,774,766   
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
         Par
(000)
     Value
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
        $   250          $ 255,887     
Total Long-Term Investments
(Cost — $81,243,432) — 98.9%
                         86,030,653   

Short-Term Securities
           Shares                  
FFI Institutional Tax-Exempt Fund, 0.03% (f)(g)
           525,624            525,624   
Total Short-Term Securities
(Cost — $525,624) — 0.6%
                         525,624   
Total Investments (Cost — $81,769,056) — 99.5%
     86,556,277   
Other Assets Less Liabilities — 0.7%
                         560,541   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (0.2%)
                         (164,708 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 86,952,110   


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)      
During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate



   
Shares
Held at
July 31, 2014

   
Net
Activity

   
Shares
Held at
January 31, 2015

   
Income
FFI Institutional Tax-Exempt Fund
     
123,907
  
401,717
  
525,624
  
$229

(g)      
Represents the current yield as of report date.
         
•        
For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by 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. 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. 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. The three levels of the fair value hierarchy are as follows:
         
•        
Level 1 — unadjusted quoted prices 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 Trust’s own assumptions used in determining the fair value of investments)

See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 23
 
  
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 Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.
         
        As of January 31, 2015, the following table summarizes the Trust’s investments categorized in the disclosure hierarchy:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                                                
Investments:
                                                                                
Long-Term Investments1
                    $ 86,030,653                     $ 86,030,653   
Short-Term Securities
        $ 525,624                                    525,624   
Total
        $     525,624         $  86,030,653                     $  86,556,277   
1See above Schedule of Investments for values in each sector.

       
The Trust may hold liabilities which the fair value approximates the carrying amount for financial statement purposes. As of January 31, 2015, TOB Trust Certificates of $164,640 are categorized as Level 2 within the disclosure hierarchy.
         
       
During the six months ended January 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.
 

24 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Schedule of Investments January 31, 2015 (Unaudited) 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          $ 310,731   
Alaska — 0.2%
                                        
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 6/01/46
           330             270,547   
California — 15.9%
                                        
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38
           1,315            1,502,414   
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39
           890             1,051,419   
Kern Community College District, GO, Safety, Repair & Improvement, Election of 2002, Series C, 5.50%, 11/01/33
           775             956,730   
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38
           1,750            1,979,513   
San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36
           1,600            1,853,136   
State of California, GO, Refunding, Various Purposes, 5.00%, 11/01/43
           1,000            1,174,780   
State of California, GO, Various Purposes, 6.00%, 3/01/33
           1,275            1,579,623   
State of California Public Works Board, LRB, Various Capital Projects, Series I:
                                        
5.50%, 11/01/31
           1,600            1,983,696   
5.50%, 11/01/33
           1,500            1,855,860   
State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33
           400             480,408   
Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40
           300             370,275   
University of California, Refunding RB, The Regents of Medical Center, Series J, 5.25%, 5/15/38
           1,780              2,135,608     
 
                         16,923,462   
Colorado — 2.3%
                                        
City & County of Denver Colorado Airport System, ARB, Sub-System, Series B, 5.25%, 11/15/32
           1,000            1,184,580   
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34
           1,095            1,269,412   
 
                         2,453,992   
Florida — 5.4%
                                        
City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33
           265             317,817   
County of Miami-Dade Florida, RB, Seaport, Series A, 6.00%, 10/01/38
           3,800            4,716,864   
Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/32
           570             681,116   
 
                         5,715,797   
Georgia — 1.7%
                                        
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23
           1,565            1,837,576   
Illinois — 22.4%
                                        
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series C, 6.50%, 1/01/41
           2,955            3,616,122   
City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38
           500             563,155   
City of Chicago Illinois Transit Authority, RB:
                                        
5.25%, 12/01/31
           1,060            1,239,914   
Sales Tax Receipts, 5.25%, 12/01/36
           1,000            1,160,200   
Sales Tax Receipts, 5.25%, 12/01/40
           1,000            1,155,470   
Sales Tax Receipts, 5.00%, 12/01/44
           1,085            1,270,622   

 

Municipal Bonds



   
Par
(000)
   
Value
Illinois (concluded)
                                        
County of Cook Illinois Community College District No. 508, GO, City College of Chicago:
                                        
5.50%, 12/01/38
        $ 1,000         $   1,189,320     
5.25%, 12/01/43
           3,500            4,065,845   
Illinois Finance Authority, RB:
                                        
Carle Foundation, Series A, 6.00%, 8/15/41
           1,000            1,181,540   
Rush University Medical Center, Series B, 7.25%, 11/01/18 (a)
           1,600            1,975,376   
Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39
           1,900            2,251,956   
Railsplitter Tobacco Settlement Authority, RB:
                                        
5.50%, 6/01/23
           690             825,509   
6.00%, 6/01/28
           195             233,534   
State of Illinois, GO:
                                        
5.25%, 2/01/31
           475             533,648   
5.25%, 2/01/32
           1,000            1,118,580   
5.50%, 7/01/33
           1,000            1,144,730   
5.50%, 7/01/38
           210             238,915   
 
                         23,764,436   
Indiana — 2.4%
                                        
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39
           2,210            2,555,180   
Kansas — 1.8%
                                        
Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C, 5.50%, 11/15/29
           1,600            1,895,616   
Kentucky — 0.6%
                                        
County of Louisville & Jefferson Kentucky Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34
           500             601,215   
Louisiana — 2.4%
                                        
Louisiana Local Government Environmental Facilities & Community Development Authority, RB:
                                        
5.00%, 10/01/37
           900             1,065,843   
Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35
           715             866,902   
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29
           600             663,492   
 
                         2,596,237   
Maine — 1.5%
                                        
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32
           1,270            1,557,299   
Maryland — 0.2%
                                        
Maryland Health & Higher Educational Facilities Authority, Refunding RB, 5.00%, 7/01/45 (b)
           155             179,580   
Massachusetts — 1.1%
                                        
Massachusetts Health & Educational Facilities Authority, RB, Tufts University, Series O, 5.38%, 8/15/38
           1,000            1,148,150   
Michigan — 3.3%
                                        
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41
           915             1,099,391   
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38
           1,000            1,166,170   
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a)
           995             1,256,516   
 
                         3,522,077   
Mississippi — 2.2%
                                        
Mississippi Development Bank, RB, Special Obligation, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40
           1,000            1,343,710   
Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 8/01/38
           800             950,720   
 
                         2,294,430   


See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 25
 
  
Schedule of Investments (continued)   BlackRock Municipal Income Investment Trust (BBF)
(Percentages shown are based on Net Assets)
    
Municipal Bonds



   
Par
(000)
   
Value
Nevada — 4.9%
                                        
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34
        $ 1,600         $   1,883,920     
County of Clark Nevada, GO, Limited Tax, 5.00%, 6/01/38
           1,000            1,109,810   
County of Clark Nevada Airport System, ARB, Series B, 5.75%, 7/01/42
           1,825            2,173,319   
 
                         5,167,049   
New Jersey — 4.4%
                                        
New Jersey EDA, RB, School Facilities Construction, Series UU, 5.00%, 6/15/40
           225             250,814   
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29
           1,140            1,234,654   
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
                                        
Series A, 5.88%, 12/15/38
           1,295            1,520,032   
Series AA, 5.50%, 6/15/39
           1,485            1,731,763   
 
                         4,737,263   
New York — 5.9%
                                        
City of New York New York Transitional Finance Authority, BARB, Fiscal 2015, Series S-1, 5.00%, 7/15/43
           220             259,919   
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012, Series A, 5.75%, 2/15/47
           1,000            1,175,710   
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             1,119,670   
State of New York Dormitory Authority, ERB, Series B, 5.25%, 3/15/38
           3,250            3,736,232   
 
                         6,291,531   
Ohio — 2.7%
                                        
County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38
           1,565            1,806,589   
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31
           885             1,060,575   
 
                         2,867,164   
Pennsylvania — 4.6%
                                        
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39
           500             589,420   
Pennsylvania Turnpike Commission, RB, Sub-Series A:
                                        
5.63%, 12/01/31
           1,250            1,482,912   
6.00%, 12/01/41
           1,500            1,622,625   
Township of Bristol Pennsylvania School District, GO, 5.25%, 6/01/37
           1,000            1,185,070   
 
                         4,880,027   
South Carolina — 1.3%
                                        
County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38
           1,190            1,439,483   
Texas — 13.1%
                                        
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.00%, 1/01/41
           1,670            1,960,597   
Central Texas Turnpike System, Refunding RB, Series C (b):
                                        
5.00%, 8/15/37
           525             598,463   
5.00%, 8/15/42
           245             278,423   
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37
           745             885,134   
Conroe Texas ISD, GO, School Building, Series A, 5.75%, 2/15/35
           890             1,018,249   
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45
           1,905            2,290,781   
Lower Colorado River Authority, Refunding RB:
                                        
5.50%, 5/15/19 (a)
           5             5,942   
5.50%, 5/15/19 (a)
           80             95,069   

 

Municipal Bonds



   
Par
(000)
   
Value
Texas (concluded)
                                        
Lower Colorado River Authority, Refunding RB (concluded):
5.50%, 5/15/19 (a)
        $ 5          $ 5,942   
5.50%, 5/15/33
           1,910              2,188,421     
North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 9/01/41
           1,000            1,205,130   
North Texas Tollway Authority, Refunding RB, 1st Tier, Series K-1 (AGC), 5.75%, 1/01/38
           1,000            1,155,800   
Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38
           340             405,049   
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            1,805,488   
 
                         13,898,488   
Virginia — 1.4%
                                        
City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43
           280             321,345   
Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18 (a)
           1,000            1,214,890   
 
                         1,536,235   
Wisconsin — 1.8%
                                        
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/39
           1,675            1,872,450   
Total Municipal Bonds — 103.8%
                         110,316,015   

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)
California — 19.0%
                                        
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (d)
           1,995            2,271,627   
Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40
           2,400            2,769,696   
Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (d)
           2,630            3,106,806   
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series C, 6.00%, 8/01/33
           3,898            4,803,380   
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34
           400             458,916   
San Diego Public Facilities Financing Authority Water, RB, Series B, 5.50%, 8/01/39
           4,214            4,972,086   
University of California, RB, Series O, 5.75%, 5/15/34
           1,500            1,778,715   
 
                         20,161,226   
District of Columbia — 3.5%
                                        
District of Columbia, RB, Series A, 5.50%, 12/01/30 (d)
           1,395            1,661,328   
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 5.50%, 10/01/39
           1,799            2,048,909   
 
                         3,710,237   
Illinois — 3.1%
                                        
State of Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38
           2,800            3,320,996   
Nevada — 5.0%
                                        
County of Clark Nevada Water Reclamation District, GO:
                                        
Limited Tax, 6.00%, 7/01/38
           2,500            2,912,300   
Series B, 5.50%, 7/01/29
           1,994            2,353,590   
 
                         5,265,890   
New Hampshire — 1.2%
                                        
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (d)
           1,094            1,265,919   


See Notes to Financial Statements.
 

26 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
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 (c)



   
Par
(000)
   
Value
New Jersey — 3.8%
                                        
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
                                        
Series A (AMBAC), 5.00%, 12/15/32
        $ 2,000         $ 2,202,480     
Series B, 5.25%, 6/15/36 (d)
           1,640            1,835,817   
 
                         4,038,297   
New York — 13.0%
                                        
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A, 5.75%, 6/15/40
           1,410            1,633,399   
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            1,714,713   
Series FF-2, 5.50%, 6/15/40
           1,995            2,338,585   
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39
           1,500            1,702,218   
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43
           2,205            2,594,910   
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (d)
           1,300            1,551,602   
New York State Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 3/15/38
           2,000            2,299,220   
 
                          13,834,647   

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)



   
Par
(000)
   
Value
Texas — 5.2%
                                        
City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 2/01/31 (d)
        $ 2,025          $ 2,332,448   
County of Harris Texas Cultural Education Facilities Finance Corp., RB, Texas Children’s Hospital Project, 5.50%, 10/01/39
           2,750            3,212,412   
 
                         5,544,860   
Virginia — 1.0%
                                        
County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35
           899             1,043,092   
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 54.8%
                         58,185,164   
Total Long-Term Investments
(Cost — $146,355,481) — 158.6%
                         168,501,179   

Short-Term Securities
           Shares                  
FFI Institutional Tax-Exempt Fund, 0.03% (e)(f)
           1,102,101            1,102,101   
Total Short-Term Securities
(Cost — $1,102,101) — 1.0%
                         1,102,101   
Total Investments (Cost — $147,457,582) — 159.6%
     169,603,280   
Other Assets Less Liabilities — 0.5%
                         554,834   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (27.9%)
                         (29,686,624 )  
VRDP Shares, at Redemption Value — (32.2%)
                         (34,200,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 106,271,490   


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

Counterparty



   
Value
   
Unrealized
Appreciation

Barclays Capital, Inc.
        $ 876,886         $ 12,385   
Morgan Stanley & Co. International PLC
        $ 179,580         $ 1,400   

(c)      
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.
         
(d)      
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 $7,891,024.
         
(e)      
During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate



   
Shares
Held at
July 31, 2014

   
Net
Activity

   
Shares
Held at
January 31, 2015

   
Income
FFI Institutional Tax-Exempt Fund
     
1,298,709
  
(196,608)
  
1,102,101
  
$148

(f)      
Represents the current yield as of report date.
         
     
As of January 31, 2015, financial futures contracts outstanding were as follows:

Contracts
Short



   
Issue
   
Exchange
   
Expiration
   
Notional
Value

   
Unrealized
Depreciation

(148)
     
10-Year U.S. Treasury Note
  
Chicago Board of Trade
  
March 2015
  
$19,369,500
  
$(531,417)

See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 27
 
  
Schedule of Investments (concluded)   BlackRock Municipal Income Investment Trust (BBF)
 

     
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. 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. 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. The three levels of the fair value hierarchy are as follows:
         
     
Level 1 — unadjusted quoted prices 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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
         
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to financial statements.
         
       
As of January 31, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                                                
Investments:
                                                                                
Long-Term Investments1
                    $ 168,501,179                     $ 168,501,179     
Short-Term Securities
        $ 1,102,101                                    1,102,101   
Total
        $   1,102,101         $ 168,501,179                     $ 169,603,280   
1See above Schedule of Investments for values in each state or political subdivision.




   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                                                
Liabilities:
                                                                                
Interest rate contracts
        $     (531,417 )                                $     (531,417 )   
2Derivative 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 January 31, 2015, 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
        $ 201,000                                 $ 201,000     
Liabilities:
                                                                                
TOB trust certificates
                    $ (29,682,276 )                       (29,682,276 )  
VRDP Shares
                       (34,200,000 )                       (34,200,000 )  
Total
        $     201,000         $ (63,882,276 )                    $ (63,681,276 )  

       
During the six months ended January 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.
 

28 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Schedule of Investments January 31, 2015 (Unaudited) 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         $ 5,859,652   
County of Jefferson Alabama, RB, Limited Obligation School, Series A:
                                        
5.25%, 1/01/19
           1,000            1,012,500   
5.25%, 1/01/20
           1,000            1,012,500   
5.50%, 1/01/21
           1,200            1,215,000   
5.50%, 1/01/22
           1,105            1,118,813   
 
                            10,218,465     
Alaska — 0.5%
                                        
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 4.63%, 6/01/23
           8,155            8,157,120   
Arizona — 1.1%
                                        
Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital:
                                        
Series A, 5.00%, 2/01/34
           6,340            7,067,705   
Series B, 5.00%, 2/01/33
           1,810            2,039,780   
City of Phoenix Arizona IDA, RB, Facility:
                                        
Candeo Schools, Inc. Project, 6.00%, 7/01/23
           700             787,500   
Eagle College Preparatory Project, Series A, 4.50%, 7/01/22
           735             752,677   
Eagle College Preparatory Project, Series A, 5.00%, 7/01/33
           1,000            1,008,590   
Legacy Traditional Schools Project, Series A, 5.75%, 7/01/24 (a)
           750             832,245   
County of Pima Arizona IDA, Refunding RB, Tucson Electric Power Co. Project, Series A, 4.00%, 9/01/29
           6,000            6,282,780   
 
                         18,771,277   
California — 19.7%
                                        
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Odd Fellows Home California, Series A,
                                        
5.00%, 4/01/32
           4,500            5,264,865   
Alameda Corridor Transportation Authority, Refunding RB, CAB, Sub Lien, Series A (AMBAC),
                                        
0.00%, 10/01/30 (b)
           10,530            5,498,450   
Anaheim California Public Financing Authority, Refunding RB, Electric Distribution System, Series A,
                                        
4.00%, 10/01/31
           17,080            18,302,416   
California Health Facilities Financing Authority, Refunding RB, Adventist Health System/West, Series A:
                                        
4.00%, 3/01/27
           4,270            4,644,308   
4.00%, 3/01/28
           8,490            9,177,775   
4.00%, 3/01/33
           61,485            64,739,401   
California HFA, RB, S/F Housing, Home Mortgage, Series I, AMT, 4.70%, 8/01/26
           10,000            10,104,500   
California Municipal Finance Authority, RB, Biola University:
                                        
4.00%, 10/01/27
           750             796,252   
5.00%, 10/01/29
           660             754,123   
5.00%, 8/15/30
           1,000            1,144,330   
5.00%, 10/01/30
           500             568,050   
4.00%, 10/01/33
           2,500            2,597,700   
California Pollution Control Financing Authority, RB, Poseidon Resources Desalination Project, AMT,
                                        
5.00%, 7/01/30 (a)
           13,845            15,595,839   
California State Public Works Board, RB:
                                        
Judicial Council Projects, Series A, 5.00%, 3/01/31
           5,000            5,873,900   
Judicial Council Projects, Series A, 5.00%, 3/01/32
           5,000            5,854,050   
Judicial Council Projects, Series A, 5.00%, 3/01/33
           5,220            6,078,533   
Series D, 5.00%, 9/01/30
           2,620            3,117,826   
Series D, 5.00%, 9/01/31
           2,905            3,448,090   
Series D, 5.00%, 9/01/32
           6,060            7,155,951   
Series E, 5.00%, 9/01/31
           2,600            3,086,070   

 

Municipal Bonds



   
Par
(000)
   
Value
California (continued)
                                        
California State Public Works Board, RB (concluded):
                                        
Series E, 5.00%, 9/01/32
        $ 2,280         $     2,692,338     
California Statewide Communities Development Authority, RB, American Baptist Homes of the West, Series A:
                                        
5.00%, 10/01/23
           1,500            1,711,005   
5.00%, 10/01/28
           650             728,514   
5.00%, 10/01/33
           2,275            2,541,607   
California Statewide Communities Development Authority, Refunding RB:
                                        
Episcopal Communities & Services, 5.00%, 5/15/27
           500             575,860   
Episcopal Communities & Services, 5.00%, 5/15/32
           1,000            1,121,020   
Eskaton Properties, Inc., 5.25%, 11/15/34
           2,500            2,776,175   
Loma Linda University Medical Center, 5.25%, 12/01/29
           5,000            5,781,200   
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            1,142,490   
5.00%, 8/01/29
           1,300            1,480,154   
5.00%, 8/01/33
           1,335            1,503,477   
County of Los Angeles California Public Works Financing Authority, Refunding RB, Multiple Capital Projects II:
                                        
5.00%, 8/01/30
           2,500            2,921,425   
5.00%, 8/01/31
           3,000            3,494,580   
5.00%, 8/01/32
           3,000            3,483,480   
5.00%, 8/01/33
           2,500            2,899,200   
County of Ventura California Public Financing Authority, Refunding RB, Series A:
                                        
5.00%, 11/01/31
           1,500            1,766,220   
5.00%, 11/01/32
           1,500            1,760,430   
5.00%, 11/01/33
           1,200            1,404,660   
El Camino Community College District, GO, CAB, Election of 2002, Series C (b):
                                        
0.00%, 8/01/30
           9,090            5,556,717   
0.00%, 8/01/31
           12,465            7,204,147   
0.00%, 8/01/32
           17,435            9,647,134   
Escondido Union High School District, GO, CAB, Election of 2008, Series A (AGC), 0.00%, 8/01/33 (b)
           2,865            1,445,965   
Golden State Tobacco Securitization Corp., Refunding RB, Series A, 5.00%, 6/01/30
           1,500            1,749,840   
Los Angeles Regional Airports Improvement Corp., Refunding RB, LAXFUEL Corp., Los Angeles International, AMT:
                                        
4.50%, 1/01/27
           5,000            5,561,150   
5.00%, 1/01/32
           4,110            4,628,271   
M-S-R Energy Authority, RB, Series C, 6.13%, 11/01/29
           2,500            3,274,775   
Poway Unified School District, GO, CAB, Election of 2008, Series A (b):
                                        
0.00%, 8/01/27
           10,000            6,647,100   
0.00%, 8/01/30
           10,000            5,795,400   
0.00%, 8/01/32
           12,500            6,625,500   
Poway Unified School District Public Financing Authority, Refunding, Special Tax Bonds:
                                        
5.00%, 9/15/26
           935             1,104,235   
5.00%, 9/15/29
           1,205            1,397,836   
5.00%, 9/15/32
           995             1,137,892   
Riverside Public Financing Authority, Tax Allocation Bonds, University Corridor/Sycamore Canyon Merged Redevelopment Project, Series C (NPFGC),
                                        
4.50%, 8/01/30
           10,000            10,312,700   
San Bernardino Community College District, GO, Refunding, Series A:
                                        
4.00%, 8/01/31
           15,660            16,888,527   


See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 29
 
  
Schedule of Investments (continued)   BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
    
Municipal Bonds



   
Par
(000)
   
Value
California (concluded)
                                        
San Bernardino Community College District, GO, Refunding, Series A (concluded):
                                        
4.00%, 8/01/32
        $ 17,010         $ 18,264,998     
4.00%, 8/01/33
           5,665            6,065,402   
San Diego Community College District, GO, Election of 2006, 0.00%, 8/01/30 (b)
           5,000            2,584,850   
Westlands California Water District, Refunding RB, Series A (AGM):
                                        
5.00%, 9/01/30
           1,000            1,170,250   
5.00%, 9/01/31
           1,000            1,168,750   
5.00%, 9/01/32
           1,000            1,162,750   
 
                           332,980,453   
Colorado — 5.4%
                                        
Central Platte Valley Metropolitan District, GO, Series A:
                                        
5.13%, 12/01/29
           700             809,676   
5.50%, 12/01/29
           750             890,715   
5.38%, 12/01/33
           1,500            1,758,135   
City & County of Denver Colorado Airport System Revenue, Refunding RB, Series B, 4.00%, 11/15/31
           37,090            40,456,289   
City of Commerce Colorado-Northern Infrastructure General Improvement District, GO, Refunding, Improvement (AGM):
                                        
5.00%, 12/01/31
           500             585,700   
5.00%, 12/01/32
           800             934,872   
City of Lakewood Colorado Plaza Metropolitan District No. 1, Refunding, Tax Allocation Bonds,
                                        
4.00%, 12/01/23
           1,000            1,021,570   
Colorado Educational & Cultural Facilities Authority, Refunding RB, 5.00%, 8/15/30
           1,000            1,144,330   
Colorado Health Facilities Authority, Refunding RB, Covenant Retirement Communities, Series A:
                                        
4.50%, 12/01/33
           4,595            4,684,786   
5.00%, 12/01/33
           3,000            3,273,720   
Denver West Metropolitan District, GO, Refunding, Series A (AGM), 4.00%, 12/01/32
           6,250            6,678,875   
Plaza Metropolitan District No. 1, Refunding, Tax Allocation Bonds:
                                        
4.10%, 12/01/24
           5,080            5,206,492   
4.20%, 12/01/25
           5,280            5,428,949   
4.50%, 12/01/30
           4,305            4,468,934   
State of Colorado, COP, Refunding, Fitzsimons Academic Projects, 4.00%, 11/01/30
           12,675            13,755,797   
Tallyns Reach Metropolitan District No. 3, GO, Refunding, 5.00%, 12/01/33
           505             525,453   
 
                         91,624,293   
Connecticut — 1.3%
                                        
City of Hartford Connecticut, GO, Refunding, Series A:
                                        
4.00%, 4/01/29
           8,390            9,044,085   
4.00%, 4/01/32
           1,500            1,598,955   
Connecticut HFA, Refunding RB, M/F Housing Mortgage Finance Program, Sub-Series F-1, 3.00%, 11/15/32
           12,020            12,041,756   
 
                         22,684,796   
District of Columbia — 0.1%
                                        
District of Columbia, Refunding RB, Kipp Charter School, 6.00%, 7/01/33
           1,700            2,030,820   
Florida — 10.4%
                                        
City of North Miami Beach, Refunding RB:
                                        
4.00%, 8/01/27
           3,325            3,625,081   
5.00%, 8/01/29
           3,650            4,251,739   
5.00%, 8/01/30
           4,020            4,670,838   
5.00%, 8/01/31
           4,235            4,905,019   
5.00%, 8/01/32
           4,445            5,131,886   
City of Tampa Florida, Refunding RB, Series A:
                                        
County of Hillsborough Florida Expressway Authority, 4.00%, 7/01/29
           6,000            6,437,640   

 

Municipal Bonds



   
Par
(000)
   
Value
Florida (continued)
                                        
City of Tampa Florida, Refunding RB, Series A (concluded):
                                        
County of Hillsborough Florida Expressway Authority, 4.00%, 7/01/30
        $ 6,395         $     6,843,801     
H Lee Moffitt Cancer Center Project, 4.00%, 9/01/33
           10,000            10,583,200   
County of Alachua Florida Health Facilities Authority, RB, East Ridge Retirement Village, Inc., 6.00%, 11/15/29
           5,000            5,681,650   
County of Brevard Health Facilities Authority, Refunding RB, Health First, Inc., 5.00%, 4/01/33
           3,760            4,335,957   
County of Broward Florida, RB, Fort Lauderdale Fuel System Revenue, AMT:
                                        
5.00%, 4/01/30
           600             668,856   
5.00%, 4/01/33
           740             823,243   
County of Martin Florida IDA, Refunding RB, Indiantown Cogeneration, L.P. Project, AMT, 4.20%, 12/15/25
           5,250            5,448,030   
County of Miami-Dade Florida Educational Facilities Authority, RB, University of Miami, Series A:
                                        
4.00%, 4/01/31
           2,930            3,108,056   
4.00%, 4/01/32
           1,000            1,057,810   
County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, Sub-Series B, 5.00%, 10/01/32
           10,000            11,575,800   
County of Miami-Dade Florida Expressway Authority, Refunding RB, Series A:
                                        
5.00%, 7/01/30
           5,530            6,359,832   
5.00%, 7/01/31
           5,000            5,735,850   
County of Miami-Dade Florida School Board, COP, Refunding, Series A, 5.00%, 5/01/32
           10,000            11,452,100   
County of St. Johns Florida Water & Sewer Revenue, Refunding RB, CAB, Series B (b):
                                        
0.00%, 6/01/26
           2,655            1,974,656   
0.00%, 6/01/27
           3,095            2,185,472   
0.00%, 6/01/28
           3,795            2,569,405   
0.00%, 6/01/29
           3,795            2,464,511   
0.00%, 6/01/30
           2,000            1,215,080   
0.00%, 6/01/31
           1,295            750,621   
0.00%, 6/01/32
           2,495            1,376,566   
Double Branch Community Development District, Refunding, Special Assessment Bonds, Senior Lien, Series A-1, 4.13%, 5/01/31
           1,200            1,257,408   
Florida Development Finance Corp., RB, Miami Arts Charter School Project, Series A (a):
                                        
5.00%, 6/15/24
           165             169,340   
5.63%, 6/15/29
           1,250            1,287,075   
Greater Orlando Aviation Authority, Refunding RB, Jet Blue Airways Corp. Project, AMT, 5.00%, 11/15/26
           2,000            2,093,800   
Jacksonville Florida Port Authority, Refunding RB, AMT:
                                        
4.50%, 11/01/29
           4,685            4,993,929   
4.50%, 11/01/30
           2,895            3,075,793   
4.50%, 11/01/31
           3,200            3,384,288   
4.50%, 11/01/32
           2,300            2,422,912   
4.50%, 11/01/33
           2,080            2,188,285   
Lee County School Board, COP, Refunding Series A, 5.00%, 8/01/28
           3,500            4,218,515   
Miami Beach Health Facilities Authority, Refunding RB, Mont Sinai Medical Center:
                                        
5.00%, 11/15/25
           500             590,740   
5.00%, 11/15/26
           250             292,577   
5.00%, 11/15/27
           375             437,216   
5.00%, 11/15/28
           500             578,765   
5.00%, 11/15/30
           1,000            1,150,240   
Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/30
           3,825            4,596,005   
Village Community Development District No. 10, Special Assessment Bonds, Sumter County:
                                        
4.50%, 5/01/23
           3,490            3,930,543   


See Notes to Financial Statements.
 

30 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Schedule of Investments (continued)   BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
    
Municipal Bonds



   
Par
(000)
   
Value
Florida (concluded)
                                        
Village Community Development District No. 10, Special Assessment Bonds, Sumter County (concluded):
                                        
5.00%, 5/01/32
        $ 5,920         $ 6,723,522     
Village Community Development District No. 5, Refunding, Special Assessment Bonds:
                                        
Phase I, 3.50%, 5/01/28
           2,105            2,182,927   
Phase I, 3.50%, 5/01/28
           3,960            4,106,599   
Phase II, 4.00%, 5/01/33
           1,225            1,312,257   
Phase II, 4.00%, 5/01/34
           2,530            2,704,089   
Village Community Development District No. 6, Refunding, Special Assessment Bonds, Sumter County, 4.00%, 5/01/29
           6,325            6,392,235   
 
                         175,321,759   
Georgia — 0.7%
                                        
Georgia Housing & Finance Authority, RB, S/F Housing, Series A, 3.45%, 12/01/32
           12,050               12,442,830   
Idaho — 0.6%
                                        
Idaho Housing & Finance Association, RB, Series A, 4.00%, 7/15/30
           10,000            10,726,000   
Illinois — 14.5%
                                        
Chicago Midway International Airport, Refunding ARB, 2nd Lien, Series A, AMT, 5.00%, 1/01/33
           5,000            5,685,100   
City of Chicago Illinois, GO:
                                        
CAB (NPFGC), 0.00%, 1/01/27 (b)
           5,000            3,085,900   
Project, Series A, 5.00%, 1/01/33
           10,000            10,555,600   
City of Chicago Illinois, Refunding RB, GO, Series A, 5.25%, 1/01/30
           6,000            6,576,660   
City of Chicago Illinois, RB, Wastewater Transmission, 2nd Lien:
                                        
4.00%, 1/01/31
           10,375            10,846,959   
4.00%, 1/01/32
           10,790            11,240,051   
4.00%, 1/01/33
           11,220            11,659,824   
4.00%, 1/01/35
           9,135            9,464,499   
City of Chicago Illinois, Refunding ARB, O’Hare International Airport Passenger Facility Charge, Series B, AMT:
                                        
4.00%, 1/01/27
           5,000            5,312,050   
4.00%, 1/01/29
           28,425            29,901,679   
City of Chicago Illinois Motor Fuel Tax Revenue, Refunding RB (AGM), 5.00%, 1/01/30
           730             847,216   
City of St. Charles Illinois, GO, Refunding, Corporate Purpose:
                                        
4.00%, 12/01/30
           1,620            1,751,139   
4.00%, 12/01/31
           1,715            1,843,848   
4.00%, 12/01/32
           1,800            1,928,700   
County of Cook Illinois, GO, Refunding, Series C, 4.00%, 11/15/29
           19,750            21,041,650   
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            4,053,252   
0.00%, 1/01/30
           5,680            3,143,028   
0.00%, 1/01/31
           13,330            7,003,582   
0.00%, 1/01/32
           16,500            8,298,015   
County of Will Illinois Community High School District No. 210 Lincoln-Way, GO, Refunding, Series A, Charter School Project-Noble Network, 5.00%, 1/01/31
           16,300            18,956,574   
Illinois Finance Authority, RB, 6.00%, 9/01/32
           1,620            1,854,689   
Illinois Finance Authority, Refunding RB:
                                        
Lutheran Home & Services Obligated Group, 5.00%, 5/15/22
           4,835            5,271,939   
Lutheran Home & Services Obligated Group, 5.50%, 5/15/27
           4,350            4,750,243   
Lutheran Home & Services Obligated Group, 5.50%, 5/15/30
           4,900            5,293,029   

 

Municipal Bonds



   
Par
(000)
   
Value
Illinois (concluded)
                                        
Illinois Finance Authority, Refunding RB (concluded):
                                        
Northwestern Memorial Healthcare, 4.00%, 8/15/33
        $ 7,665         $ 8,178,862     
Rush University Medical Center, Series A, 5.00%, 11/15/31 (c)
           8,415            9,952,673   
Rush University Medical Center, Series A, 5.00%, 11/15/32 (c)
           2,075            2,448,106   
Rush University Medical Center, Series A, 5.00%, 11/15/33 (c)
           2,125            2,496,769   
The Peoples Gas Light & Coke Company Project, 4.00%, 2/01/33
           11,000            11,563,200   
Winnebago & Boone Counties School District No. 205 Rockford, GO:
                                        
4.00%, 2/01/29
           9,305            9,880,979   
4.00%, 2/01/30
           9,835            10,436,607   
 
                           245,322,422   
Indiana — 3.4%
                                        
Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A, 4.00%, 8/01/33
           8,500            9,215,870   
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT, 5.88%, 1/01/24
           2,250            2,637,495   
Indiana Finance Authority, Refunding RB:
                                        
Community Health Network Project, Series A, 4.00%, 5/01/35
           23,565            24,096,391   
Earlham College Project, 5.00%, 10/01/32
           11,255            12,410,100   
Indiana Municipal Power Agency, Refunding RB, Series A, 5.00%, 1/01/31
           8,000            9,560,880   
 
                         57,920,736   
Iowa — 2.1%
                                        
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:
                                        
5.50%, 12/01/22
           18,500            19,679,745   
5.25%, 12/01/25
           14,345            15,847,782   
 
                         35,527,527   
Kentucky — 0.1%
                                        
Kentucky Public Transportation Infrastructure Authority, RB, Convertible CABS-1ST Tier-DownTown Crossing Project, Series C, 0.00%, 7/01/33 (d)
           1,500            1,131,615   
Kentucky Public Transportation Infrastructure Authority, RB,CAB-1st Tier-DownTown Crossing Project, Series B, 0.00%, 7/01/30 (b)
           1,230            565,960   
 
                         1,697,575   
Louisiana — 3.1%
                                        
City of New Orleans Louisiana, Refunding RB:
                                        
5.00%, 12/01/27
           1,500            1,781,475   
5.00%, 12/01/29
           1,000            1,173,880   
Louisiana Stadium & Exposition District, Refunding RB, Senior, Series A:
                                        
5.00%, 7/01/27
           3,770            4,487,883   
5.00%, 7/01/28
           4,420            5,235,799   
5.00%, 7/01/29
           3,000            3,533,790   
5.00%, 7/01/30
           5,000            5,873,150   
5.00%, 7/01/31
           5,105            5,962,946   
5.00%, 7/01/32
           3,000            3,472,440   
Port New Orleans Board of Commissioners, Refunding RB, Series B, AMT:
                                        
5.00%, 4/01/31
           300             336,702   
5.00%, 4/01/32
           1,000            1,117,790   
5.00%, 4/01/33
           1,575            1,756,928   
Terrebonne Levee & Conservation District, RB, Sales Tax, 5.00%, 7/01/29
           1,925            2,217,254   
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:
                                        
5.25%, 5/15/31
           3,425            3,835,555   
5.25%, 5/15/32
           4,375            4,958,538   
5.25%, 5/15/33
           4,750            5,360,470   


See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 31
 
  
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 (concluded):
                                        
5.25%, 5/15/35
        $ 1,500         $ 1,692,600     
 
                            52,797,200   
Maine — 1.4%
                                        
Maine Health & Higher Educational Facilities Authority, RB, Eastern Maine Medical Center Obligation:
                                        
5.00%, 7/01/25
           1,250            1,460,600   
5.00%, 7/01/26
           1,000            1,154,660   
5.00%, 7/01/27
           1,000            1,142,610   
3.75%, 7/01/28
           1,000            1,038,050   
5.00%, 7/01/33
           5,000            5,600,750   
Maine State Housing Authority, Refunding RB, S/F Housing, Series B, 3.45%, 11/15/32
           12,000            12,338,640   
 
                         22,735,310   
Maryland — 0.8%
                                        
Anne Arundel County Consolidated, Special Taxing District, Special Tax Bonds, Villages At Two Rivers Project:
                                        
4.20%, 7/01/24
           700             724,220   
4.90%, 7/01/30
           1,315            1,359,053   
Maryland EDC, Refunding RB:
                                        
CNX Marine Terminals, Inc., 5.75%, 9/01/25
           5,000            5,624,750   
Salisbury University Project, 5.00%, 6/01/34
           500             550,760   
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Peninsula Regional Medical Center (c):
                                        
5.00%, 7/01/30
           1,185            1,403,822   
5.00%, 7/01/31
           2,200            2,602,248   
5.00%, 7/01/32
           1,635            1,920,618   
 
                         14,185,471   
Massachusetts — 1.3%
                                        
Massachusetts Educational Financing Authority, Refunding RB, Series K, AMT, 5.25%, 7/01/29
           9,455            10,506,018   
Massachusetts HFA, Refunding RB, S/F Housing, Series 163, AMT, 4.00%, 12/01/33
           10,950            11,421,178   
 
                         21,927,196   
Michigan — 1.1%
                                        
Michigan Finance Authority, Refunding RB:
                                        
Holland Community Hospital, Series A, 5.00%, 1/01/33
           750             839,865   
Midmichigan Health, 5.00%, 6/01/33
           2,750            3,209,470   
Oakwood Obligation Group, 5.00%, 8/15/30
           4,105            4,807,201   
Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32
           9,195            9,771,251   
 
                         18,627,787   
Missouri — 0.3%
                                        
Missouri State Health & Educational Facilities Authority, Refunding RB:
                                        
CoxHealth, Series A, 4.00%, 11/15/33
           2,010            2,122,821   
St. Lewis College of Pharmacy Project, 5.00%, 5/01/30
           3,000            3,347,310   
 
                         5,470,131   
Nebraska — 1.1%
                                        
Central Plains Nebraska Energy Project, RB:
                                        
Energy Project No. 3, 5.00%, 9/01/27
           7,010            7,970,020   
Gas Project No. 3, 5.00%, 9/01/32
           9,500            10,711,630   
 
                         18,681,650   
New Hampshire — 1.0%
                                        
New Hampshire Health & Education Facilities Authority, Refunding RB, Concord Hospital, Series A:
                                        
5.00%, 10/01/26
           1,075            1,241,786   
5.00%, 10/01/27
           1,180            1,358,227   

 

Municipal Bonds



   
Par
(000)
   
Value
New Hampshire (concluded)
                                        
New Hampshire Health & Education Facilities Authority, Refunding RB, Concord Hospital, Series A (concluded):
                                        
4.00%, 10/01/33
        $ 3,500         $     3,684,100     
New Hampshire State Turnpike System, RB, Series C:
                                        
4.00%, 8/01/33
           4,350            4,707,179   
4.00%, 8/01/35
           4,745            5,091,338   
 
                         16,082,630   
New Jersey — 11.6%
                                        
County of Gloucester New Jersey Pollution Control Financing Authority, Refunding RB, AMT, 5.00%, 12/01/24
           1,500            1,716,570   
New Jersey EDA, RB, AMT:
                                        
Continental Airlines, Inc. Project, 5.25%, 9/15/29
           12,230            13,250,471   
Continental Airlines, Inc. Project, Series A, 5.63%, 11/15/30
           1,740            1,950,349   
Continental Airlines, Inc. Project, Series B, 5.63%, 11/15/30
           1,315            1,458,111   
Private Activity Bond, The Goethals Bridge Replacement Project, 5.00%, 1/01/28
           4,705            5,338,011   
New Jersey EDA, Refunding RB:
                                        
4.25%, 6/15/27
           16,500            17,566,890   
Cigarette Tax, 5.00%, 6/15/26
           10,610            12,069,193   
Continental Airlines, Inc. Project, AMT, 5.75%, 9/15/27
           6,200            6,911,016   
New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31
           5,000            5,961,400   
New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Barnabas Health, Series A, 4.00%, 7/01/26
           3,000            3,249,060   
New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT:
                                        
4.10%, 11/01/28
           15,800            16,631,870   
4.35%, 11/01/33
           7,315            7,718,422   
New Jersey Transportation Trust Fund Authority, RB:
                                        
5.00%, 6/15/32
           5,000            5,684,100   
5.25%, 6/15/32
           10,000            11,677,500   
Transportation System, CAB, Series A, 0.00%, 12/15/28 (b)
           66,000            36,974,520   
Transportation System, CAB, Series A, 0.00%, 12/15/29 (b)
           18,000            9,545,580   
Transportation System, Series AA, 4.00%, 6/15/30
           13,315            13,779,028   
Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 5.25%, 1/01/27
           5,000            6,086,650   
South Jersey Transportation Authority LLC, Refunding RB, Series A:
                                        
5.00%, 11/01/33
           500             563,695   
5.00%, 11/01/34
           500             563,255   
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A:
                                        
4.50%, 6/01/23
           4,450            4,470,114   
4.63%, 6/01/26
           5,525            5,296,210   
Township of Irvington, GO, Refunding Series A (AGM):
                                        
5.00%, 7/15/29
           1,750            2,050,492   
5.00%, 7/15/30
           2,000            2,339,820   
5.00%, 7/15/31
           1,450            1,689,859   
5.00%, 7/15/32
           835             968,642   
 
                         195,510,828   
New Mexico — 1.1%
                                        
New Mexico Educational Assistance Foundation, RB, AMT:
                                        
Education Loan Series A-1, 3.75%, 9/01/31
           6,250            6,524,562   
Education Loan Series A-2, 3.80%, 11/01/32
           5,850            6,118,457   
Education Loan Series A-2, 3.80%, 9/01/33
           5,000            5,233,900   
 
                         17,876,919   


See Notes to Financial Statements.
 

32 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Schedule of Investments (continued)   BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
    
Municipal Bonds



   
Par
(000)
   
Value
New York — 7.8%
                                        
Build NYC Resource Corp., RB, Bronx Charter School for International Cultures & The Arts Project, Series A, 5.00%, 4/15/33
        $ 3,530         $ 3,659,586   
Build NYC Resource Corp., Refunding RB, AMT, 4.50%, 1/01/25 (a)
           900             984,330   
Housing Development Corp., RB, M/F Housing, Series K-1:
                                        
3.40%, 11/01/30
           8,070            8,268,119   
3.50%, 11/01/32
           5,865            6,004,646   
Housing Development Corp., Refunding RB, M/F Housing:
                                        
Series L-1, 3.40%, 11/01/30
           1,580            1,618,789   
Series L-1, 3.50%, 11/01/32
           1,160            1,187,620   
Series L-2-A, 3.60%, 11/01/33
           11,000            11,314,820   
Metropolitan Transportation Authority, Refunding RB, Series F, 5.00%, 11/15/30
           25,000            29,612,750   
New York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.25%, 10/01/35
           8,110            10,116,657   
New York Mortgage Agency, Refunding RB, Series 48, 3.45%, 10/01/33
           3,500            3,566,150   
New York State HFA, RB, M/F Affordable Housing, Series F (SONYMA):
                                        
3.05%, 11/01/27
           4,020            4,042,472   
3.45%, 11/01/32
           5,235            5,346,191   
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series B, 4.00%, 11/01/24 (a)
           3,000            3,070,200   
Onondaga Civic Development Corp., Refunding RB, St. Joseph’s Hospital Health Center Project, 4.50%, 7/01/32
           9,115            9,241,060   
Triborough Bridge & Tunnel Authority, Refunding RB, CAB, Series A (b):
                                        
0.00%, 11/15/29
           17,810            11,332,147   
0.00%, 11/15/30
           25,215            15,292,393   
0.00%, 11/15/31
           5,000            2,894,850   
TSASC, Inc., Refunding RB, 5.00%, 6/01/26
           4,000            4,018,440   
 
                           131,571,220     
North Carolina — 0.2%
                                        
North Carolina Medical Care Commission, RB, Mission Health Combined Group, 4.63%, 10/01/30
           2,000            2,148,220   
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/31
           1,665            1,933,381   
 
                         4,081,601   
Ohio — 0.4%
                                        
County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities, Series A:
                                        
5.25%, 7/01/28
           500             530,060   
5.63%, 7/01/32
           1,000            1,064,780   
Ohio State University, RB, General Receipts Special Purpose, Series A, 4.00%, 6/01/31
           4,220            4,577,687   
 
                         6,172,527   
Oklahoma — 0.2%
                                        
County of Oklahoma Oklahoma Finance Authority, Refunding RB, Epworth Villa Project, Series A:
                                        
5.00%, 4/01/23
           1,050            883,260   
5.00%, 4/01/29
           1,500            1,245,135   
5.00%, 4/01/33
           1,050            860,685   
 
                         2,989,080   
Pennsylvania — 8.5%
                                        
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:
                                        
5.00%, 5/01/27
           6,750            7,732,598   
5.00%, 5/01/28
           5,000            5,710,250   
5.00%, 5/01/29
           3,745            4,269,038   
5.00%, 5/01/30
           5,300            6,015,659   

 

Municipal Bonds



   
Par
(000)
   
Value
Pennsylvania (concluded)
                                        
County of Beaver Pennsylvania IDA, Refunding RB, First Energy Nuclear Energy Project, Series B, 3.50%, 12/01/35 (e)
        $ 4,540         $     4,771,177     
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Asbury Pennsylvania Obligated Group:
                                        
5.00%, 1/01/22
           750             820,515   
5.25%, 1/01/27
           1,275            1,375,253   
5.25%, 1/01/32
           3,350            3,560,246   
County of Lehigh Pennsylvania, Refunding RB, Lehigh Valley Health Network, 4.00%, 7/01/33
           27,535            29,240,793   
County of Montgomery Pennsylvania Higher Education & Health Authority, Refunding RB, Abington Memorial Hospital Obligated Group, 5.00%, 6/01/31
           5,000            5,650,400   
County of Montgomery Pennsylvania IDA, Refunding RB, Acts Retirement-Life Communities, Inc. Obligated Group, 5.00%, 11/15/26
           2,500            2,781,675   
County of Northampton Pennsylvania General Purpose Authority, RB, St. Luke’s Hospital of Bethlehem, Series A, 5.00%, 8/15/33
           13,250            14,685,637   
Pennsylvania HFA, RB, S/F Housing, Series 114, 3.30%, 10/01/32
           20,500            20,757,070   
Pennsylvania Higher Educational Facilities Authority, RB, Shippensburg University Student Services, 5.00%, 10/01/30
           5,250            5,640,180   
Pennsylvania Higher Educational Facilities Authority, Refunding RB, La Salle University, 4.00%, 5/01/32
           3,000            3,079,860   
State Public School Building Authority, RB, School District of Philadelphia Project:
                                        
5.00%, 4/01/27
           4,130            4,720,714   
5.00%, 4/01/28
           8,000            9,044,240   
5.00%, 4/01/29
           6,000            6,715,320   
5.00%, 4/01/30
           5,500            6,133,270   
Township of East Hempfield IDA, RB, Student Services Incorporate Student Housing, 5.00%, 7/01/30
           1,280            1,402,304   
 
                         144,106,199   
South Carolina — 0.1%
                                        
South Carolina Jobs EDA, Refunding RB, Bon Secours Health System, Inc., 5.00%, 5/01/28
           2,000            2,137,840   
South Dakota — 0.1%
                                        
Educational Enhancement Funding Corp., Refunding RB, Series B, 5.00%, 6/01/27
           650             755,905   
Tennessee — 0.5%
                                        
Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.00%, 1/01/33
           1,500            1,697,610   
Chattanooga-Hamilton County Hospital Authority, Refunding RB, 5.00%, 10/01/31
           6,210            7,088,653   
 
                         8,786,263   
Texas — 17.8%
                                        
Central Texas Turnpike System, Refunding RB, Series C (c):
                                        
5.00%, 8/15/32
           12,500            14,404,000   
5.00%, 8/15/33
           14,000            16,057,860   
City of Austin TX Airport System Revenue, RB, 5.00%, 11/15/33
           3,765            4,410,095   
City of Brownsville Texas Utilities System Revenue, Refunding RB, Series A:
                                        
4.00%, 9/01/30
           11,170            12,088,956   
4.00%, 9/01/31
           11,220            12,098,750   
City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 7/01/29
           2,665            2,902,931   
City of San Antonio TX Water System Revenue, Refunding RB, Series B, 5.00%, 5/15/27 (c)
           1,845            2,309,571   
Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 8/15/33
           1,650            2,016,350   


See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 33
 
  
Schedule of Investments (continued)   BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
    
Municipal Bonds



   
Par
(000)
   
Value
Texas (concluded)
                                        
Clifton Higher Education Finance Corp., Refunding RB, Uplift Education, Series A:
                                        
3.10%, 12/01/22
        $ 1,050         $ 1,039,154     
3.95%, 12/01/32
           1,800            1,777,212   
County of Harris Texas, Refunding RB, Toll Road Senior Lien, Series C, 4.00%, 8/15/33
           12,325            13,040,220   
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             572,005   
6.38%, 1/01/33
           460             539,649   
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            1,140,718   
Memorial Hermann Health System, 4.00%, 12/01/31
           20,000            20,973,200   
YMCA of the Greater Houston Area, 5.00%, 6/01/28
           1,500            1,686,195   
YMCA of the Greater Houston Area, 5.00%, 6/01/33
           3,000            3,306,810   
County of Matagorda Texas Navigation District No. 1, Refunding RB:
                                        
Series A (AMBAC), 4.40%, 5/01/30
           31,120               35,012,178   
Series B (AMBAC), AMT, 4.55%, 5/01/30
           10,000            11,137,000   
Series B-2, 4.00%, 6/01/30
           12,895            13,528,918   
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            3,372,574   
CAB, 0.00%, 9/15/32 (b)
           15,135            7,722,180   
5.00%, 9/15/31
           2,435            2,875,540   
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A:
                                        
4.00%, 11/15/31
           5,500            5,789,300   
4.00%, 11/15/32
           15,420            16,162,627   
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare, 5.00%, 8/15/33
           5,000            5,830,450   
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, 5.00%, 10/01/29
           1,000            1,129,110   
Leander ISD, GO, Refunding, Series D (b):
                                        
0.00%, 8/15/31
           1,200            657,720   
0.00%, 8/15/32
           2,000            1,032,160   
0.00%, 8/15/33
           4,485            2,182,715   
Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, AMT, 5.00%, 11/01/28
           5,750            6,452,017   
Lower Colorado River Authority, Refunding RB, LCRA Transmission Services:
                                        
4.00%, 5/15/31
           9,970            10,598,110   
4.00%, 5/15/32
           10,635            11,247,895   
New Hope Cultural Education Facilities Corp., RB:
                                        
5.00%, 4/01/29
           2,290            2,576,456   
5.00%, 4/01/29
           725             808,433   
Stephenville LLC Tarleton State University Project, Series A, 5.38%, 4/01/28
           1,150            1,309,885   
New Hope Cultural Education Facilities Corp., Refunding RB, 1st Mortgage, Morningside Ministries Project, 6.25%, 1/01/33
           1,600            1,793,792   
Red River Health Facilities Development Corp., RB, Wichita Falls Retirement Foundation Project:
                                        
4.70%, 1/01/22
           850             909,160   
5.50%, 1/01/32
           1,000            1,074,840   
Texas Municipal Gas Acquisition & Supply Corp. III, RB:
                                        
5.00%, 12/15/31
           25,000            28,072,750   
Natural Gas Utility Improvements, 5.00%, 12/15/30
           18,000            20,305,800   
 
                         301,945,286   

 

Municipal Bonds



   
Par
(000)
   
Value
U.S. Virgin Islands — 1.3%
                                        
Virgin Islands Public Finance Authority, Refunding RB:
                                        
Gross Receipts Taxes Loan Note, Series A, 5.00%, 10/01/32
        $ 10,000         $    11,229,600     
Series C, 5.00%, 10/01/30
           10,000            11,477,400   
 
                         22,707,000   
Vermont — 0.2%
                                        
Vermont EDA, Refunding, MRB, Wake Robin Corp. Project, 5.40%, 5/01/33
           2,400            2,548,080   
Virginia — 2.9%
                                        
County of Fairfax Virginia EDA, RB, Vinson Hall LLC, Series A:
                                        
4.50%, 12/01/32
           2,840            2,923,354   
5.00%, 12/01/32
           2,000            2,138,320   
County of Fairfax Virginia IDA, Refunding RB, Inova Health System, Series D, 4.00%, 5/15/29
           5,325            5,787,583   
County of Hanover Virginia EDA, Refunding RB, Covenant Woods, Series A:
                                        
4.50%, 7/01/30
           3,000            3,081,810   
4.50%, 7/01/32
           1,100            1,123,628   
County of Prince William Virginia IDA, Refunding RB, Novant Health Obligation Group, Series B, 4.00%, 11/01/33
           5,445            5,737,941   
Dulles Town Center Community Development Authority, Refunding, Special Assessment, Dulles Town Center Project, 4.25%, 3/01/26
           500             504,250   
Virginia HDA, RB, Remarketing, M/F Housing, Sub-Series C-2, 3.00%, 4/01/31
           23,175            23,174,304   
Virginia Small Business Financing Authority, RB, Senior Lien, Express Lanes LLC, AMT, 5.00%, 7/01/34
           3,940            4,292,709   
 
                         48,763,899   
Washington — 3.5%
                                        
Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A:
                                        
3.50%, 9/01/18
           1,025            1,058,866   
5.00%, 9/01/27
           1,000            1,082,520   
5.25%, 9/01/32
           1,850            1,970,065   
Port of Seattle Industrial Development Corp., Refunding RB, Special Facilities, Delta Airline, Inc. Project, AMT, 5.00%, 4/01/30
           5,000            5,213,800   
Spokane Public Facilities District, Refunding RB, Series B:
                                        
4.50%, 12/01/30
           5,370            5,885,305   
5.00%, 12/01/32
           5,895            6,698,076   
5.00%, 9/01/33
           4,665            5,285,911   
State of Washington, COP, State and Local Agency Real and Personal Property, Series B:
                                        
4.00%, 7/01/29
           3,605            3,900,466   
4.00%, 7/01/30
           4,290            4,614,796   
4.00%, 7/01/31
           4,470            4,783,705   
4.00%, 7/01/32
           4,590            4,902,671   
State of Washington, GO, Series B, 5.00%, 2/01/25 (c)
           5,825            7,422,739   
Washington State Housing Finance Commission, Refunding RB:
                                        
Emerald Heights Project, 5.00%, 7/01/28
           1,000            1,117,820   
Emerald Heights Project, 5.00%, 7/01/33
           1,100            1,227,897   
Series 1N (Ginnie Mae)(FannieMae)(Freddie Mac), 3.50%, 12/01/33
           4,035            4,166,299   
 
                         59,330,936   
Wisconsin — 1.3%
                                        
Public Finance Authority, Refunding RB, AMT:
                                        
National Gypsum Co., 5.25%, 4/01/30
           6,690            6,923,882   
Wisconsin Airport Facilities, Senior Obligated Group, Series B, 5.25%, 7/01/28
           2,250            2,511,495   
Wisconsin Health & Educational Facilities Authority, Refunding RB:
                                        
Aspirus, Inc., Obligated Group, 5.00%, 8/15/28
           3,510            4,104,629   


See Notes to Financial Statements.
 

34 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Schedule of Investments (continued)   BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
   
 
Municipal Bonds



   
Par
(000)
   
Value
Wisconsin (concluded)
                                        
Wisconsin Health & Educational Facilities Authority, Refunding RB (concluded):
                                        
Aspirus, Inc., Obligated Group, 5.00%, 8/15/29
        $ 3,685         $ 4,287,940   
Marquette University, 4.00%, 10/01/32
           4,520            4,856,333   
 
                            22,684,279     
Wyoming — 1.0%
                                        
Wyoming Community Development Authority, Refunding RB, Series 2 & 3, 3.75%, 12/01/32
           16,790            17,507,940   
Total Municipal Bonds — 129.1%
                         2,185,409,250   

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)
Colorado — 5.0%
                                        
City & County of Denver Colorado, Refunding ARB, Department of Aviation, Series A, AMT (g):
                                        
4.25%, 11/15/29
           33,820            36,632,975   
4.25%, 11/15/30
           35,210            38,037,085   
4.25%, 11/15/31
           8,085            8,716,701   
4.25%, 11/15/32
           2,230            2,366,149   
 
                         85,752,910   
Florida — 5.9%
                                        
County of Broward Florida, ARB, Series Q-1 (g):
                                        
4.00%, 10/01/29
           17,200            18,335,354   
4.00%, 10/01/30
           18,095            19,238,419   
4.00%, 10/01/31
           18,820            19,943,190   
4.00%, 10/01/32
           19,575            20,688,256   
4.00%, 10/01/33
           20,355            21,455,834   
 
                         99,661,053   
Iowa — 2.7%
                                        
Iowa State Board of Regents, RB, University of Iowa Hospitals and Clinics:
                                        
4.00%, 9/01/28
           3,375            3,736,559   
4.00%, 9/01/29
           6,525            7,157,689   
4.00%, 9/01/30
           6,325            6,892,750   
4.00%, 9/01/31
           8,650            9,370,872   
4.00%, 9/01/32
           7,750            8,346,382   
4.00%, 9/01/33
           9,375             10,069,948   
 
                         45,574,200   
Municipal Bonds Transferred to
Tender Option Bond Trusts (f)



   
Par
(000)
   
Value
Texas — 9.9%
                                        
City of San Antonio Texas Public Facilities Corp., Refunding LRB, Convention Center Refinancing and Expansion Project:
                                        
4.00%, 9/15/30
        $ 15,000         $    16,304,849     
4.00%, 9/15/31
           19,475            21,057,904   
4.00%, 9/15/32
           18,075            19,467,194   
4.00%, 9/15/33
           11,000            11,816,122   
4.00%, 9/15/34
           11,885            12,724,855   
4.00%, 9/15/35
           4,500            4,802,209   
Dallas/Fort Worth International Airport, Refunding RB, AMT (g):
                                        
Series E, 4.00%, 11/01/32
           6,915            7,363,298   
Series E, 4.13%, 11/01/35
           10,435            11,016,074   
Series F, 5.00%, 11/01/29
           12,820            14,702,745   
Series F, 5.00%, 11/01/30
           15,565            17,779,000   
Series F, 5.00%, 11/01/31
           10,000            11,336,218   
Series F, 5.00%, 11/01/32
           17,170            19,386,039   
 
                         167,756,507   
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.5%
                         398,744,670   
Total Long-Term Investments
(Cost — $2,470,000,089) — 152.6%
                         2,584,153,920   

Short-Term Securities
           Shares                  
FFI Institutional Tax-Exempt Fund, 0.03% (h)(i)
           94,405,207            94,405,207   
Total Short-Term Securities
(Cost — $94,405,207) — 5.6%
                         94,405,207   
Total Investments (Cost — $2,564,405,296) — 158.2%
     2,678,559,127   
Liabilities in Excess of Other Assets — (3.0)%
                         (51,022,903 )  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (10.9%)
                         (184,161,551 )  
RVMTP Shares, at Liquidation Value — (44.3%)
                         (750,000,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 1,693,374,673   


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

Counterparty



   
Value
   
Unrealized
Appreciation

Barclays Capital, Inc.
        $ 30,461,860         $ 480,910   
Goldman Sachs & Co.
        $ 14,897,548         $ 81,170   
Morgan Stanley & Co. LLC
        $ 13,349,427         $ 99,290   
Wells Fargo Bank N.A.
        $ 2,309,571         $ 27,583   

(d)      
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.
         
(e)      
Variable rate security. Rate shown is as of report date.
         
(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 November 1, 2018 to November 15, 2020 is $128,606,860.

See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 35
 
  
Schedule of Investments (concluded)   BlackRock Municipal Target Term Trust (BTT) 
    
(h)      
During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate



   
Shares
Held at
July 31, 2014

   
Net
Activity

   
Shares
Held at
January 31, 2015

   
Income
FFI Institutional Tax-Exempt Fund
     
5,417,254
  
88,987,953
  
94,405,207
  
$5,825

(i)      
Represents the current yield as of report date.
         
     
As of January 31, 2015, financial futures contracts outstanding were as follows:

Contracts
Short



   
Issue
   
Exchange
   
Expiration
   
Notional
Value

   
Unrealized
Depreciation

(2,291)
     
10-Year U.S. Treasury Note
  
Chicago Board of Trade
  
March 2015
  
$299,834,625
  
$(7,621,908)

     
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. 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. 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. The three levels of the fair value hierarchy are as follows:
         
     
Level 1 — unadjusted quoted prices 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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
         

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

 

       
As of January 31, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                                                
Investments:
                                                                                
Long-Term Investments1
                    $ 2,584,153,920                     $ 2,584,153,920   
Short-Term Securities
        $ 94,405,207                                    94,405,207   
Total
        $    94,405,207         $ 2,584,153,920                     $ 2,678,559,127   
1See above Schedule of Investments for values in each state or political subdivision.




   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                                                
Liabilities:
                                                                                
Interest rate contracts
        $    (7,621,908 )                                $    (7,621,908 )  
2Derivative 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 January 31, 2015, 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
        $ 3,108,002                                 $ 3,108,002   
Liabilities:
                                                                                
TOB trust certificates
                    $ (184,119,974 )                       (184,119,974 )  
RVMTP Shares
                       (750,000,000 )                       (750,000,000 )  
Total
        $     3,108,002         $ (934,119,974 )                    $  (931,011,972 )  

During the six months ended January 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.
 

36 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Schedule of Investments January 31, 2015 (Unaudited) BlackRock New Jersey Municipal Income Trust (BNJ)
(Percentages shown are based on Net Assets)
   
Municipal Bonds          Par
(000)
     Value
New Jersey — 134.3%
Corporate — 9.3%
                                        
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (a)(b)
        $  1,790         $ 89,483     
County of Salem New Jersey Pollution Control Financing Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29
           2,400            2,697,192   
New Jersey EDA, RB, Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30
           5,160            5,721,563   
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, AMT:
                                        
Series A, 5.70%, 10/01/39
           1,500            1,749,885   
Series B, 5.60%, 11/01/34
           1,275            1,464,733   
 
                         11,722,856   
County/City/Special District/School District — 19.3%
Casino Reinvestment Development Authority, Refunding RB:
                                        
5.25%, 11/01/39
           4,150            4,625,590   
5.25%, 11/01/44
           1,000            1,112,020   
City of Margate New Jersey, GO, Refunding, Improvement, 5.00%, 1/15/28
           1,085            1,230,965   
City of Perth Amboy New Jersey, GO, CAB, Refunding (AGM), 5.00%, 7/01/35
           175             184,868   
County of Essex New Jersey Improvement Authority, Refunding RB, Project Consolidation (NPFGC):
                                        
5.50%, 10/01/28
           1,440            1,940,515   
5.50%, 10/01/29
           2,630            3,582,192   
County of Hudson New Jersey Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC):
                                        
5.25%, 1/01/39
           2,000            2,269,700   
5.38%, 1/01/44
           2,400            2,742,840   
County of Union New Jersey Improvement Authority, LRB, Guaranteed Lease, Family Court Building Project, 5.00%, 5/01/42
           890             1,030,326   
County of Union New Jersey Utilities Authority, Refunding RB, Solid Waste System, County Deficiency Agreement, Series A, 5.00%, 6/15/41
           2,185            2,481,548   
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28
           2,500            3,176,225   
 
                          24,376,789   
Education — 23.7%
                                        
New Jersey EDA, RB:
                                        
Leap Academy Charter School, Series A, 6.00%, 10/01/34
           185             193,401   
Leap Academy Charter School, Series A, 6.20%, 10/01/44
           140             145,981   
MSU Student Housing Project Provide, 5.88%, 6/01/42
           1,500            1,691,010   
The Team Academy Charter School Project, 6.00%, 10/01/33
           1,490            1,731,291   
New Jersey EDA, Refunding RB, Series A, Greater Brunswick Charter School, Inc. Project (c):
                                        
5.63%, 8/01/34
           415             432,837   
5.88%, 8/01/44
           290             302,873   
New Jersey Educational Facilities Authority, RB:
                                        
Higher Educational Capital Improvement Fund, Series A, 5.00%, 9/01/32
           2,070            2,349,822   
Montclair State University, Series J, 5.25%, 7/01/38
           580             648,631   
New Jersey Educational Facilities Authority, Refunding RB:
                                        
College of New Jersey, Series D (AGM), 5.00%, 7/01/35
           3,230            3,599,157   
Georgian Court University, Series D, 5.00%, 7/01/33
           250             267,995   
Kean University, Series A, 5.50%, 9/01/36
           2,060            2,385,171   

 

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         $   5,418,055     
New Jersey Institute of Technology, Series H, 5.00%, 7/01/31
           660             755,192   
Ramapo College, Series B, 5.00%, 7/01/42
           265             299,638   
University of Medicine & Dentistry, Series B, 7.50%, 6/01/19 (d)
           1,450            1,853,912   
New Jersey Higher Education Student Assistance Authority, Refunding RB:
                                        
Series 1, AMT, 5.75%, 12/01/29
           2,055            2,336,514   
Series 1A, 5.00%, 12/01/25
           430             454,678   
Series 1A, 5.00%, 12/01/26
           280             295,520   
Series 1A, 5.25%, 12/01/32
           500             553,835   
New Jersey Institute of Technology, RB, Series A, 5.00%, 7/01/42
           500             575,030   
Rutgers — The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43
           3,145            3,651,565   
 
                         29,942,108   
Health — 11.6%
                                        
County of Camden New Jersey Improvement Authority, Refunding RB, Cooper Health System, 5.00%, 2/15/34
           1,590            1,811,805   
New Jersey EDA, Refunding RB, Seabrook Village, Inc. Facility, 5.25%, 11/15/26
           1,790            1,853,312   
New Jersey Health Care Facilities Financing Authority, RB:
                                        
Meridian Health System Obligated Group, Series I (AGC), 5.00%, 7/01/38
           720             775,440   
Robert Wood Johnson University Hospital, Series A, 5.50%, 7/01/43
           750             899,070   
Virtua Health, Series A (AGC), 5.50%, 7/01/38
           1,250            1,422,788   
New Jersey Health Care Facilities Financing Authority, Refunding RB:
                                        
AHS Hospital Corp., 6.00%, 7/01/37
           900             1,094,661   
AHS Hospital Corp., 6.00%, 7/01/41
           1,045            1,262,715   
Meridian Health System Obligated Group, 5.00%, 7/01/26
           970             1,127,935   
St. Barnabas Health Care System, Series A, 5.00%, 7/01/29
           1,745            1,837,154   
St. Barnabas Health Care System, Series A, 5.63%, 7/01/32
           580             679,737   
St. Barnabas Health Care System, Series A, 5.63%, 7/01/37
           1,605            1,861,495   
 
                         14,626,112   
Housing — 5.7%
                                        
County of Middlesex New Jersey Improvement Authority, RB, Administration Building Residential Project, AMT (Fannie Mae), 5.35%, 7/01/34
           1,400            1,401,344   
New Jersey Housing & Mortgage Finance Agency, RB:
                                        
M/F Housing, Series A, 4.75%, 11/01/29
           1,185            1,266,410   
S/F Housing, Series AA, 6.38%, 10/01/28
           535             556,582   
S/F Housing, Series AA, 6.50%, 10/01/38
           575             597,862   
S/F Housing, Series CC, 5.00%, 10/01/34
           960             1,025,750   
Newark Housing Authority, RB, M/F Housing, Series A, 5.00%, 12/01/30
           2,000            2,332,020   
 
                         7,179,968   
State — 22.5%
                                        
Garden State Preservation Trust, RB, CAB, Series B (AGM), 0.00%, 11/01/26 (e)
           6,000            4,448,640   
New Jersey EDA, RB:
                                        
(AGC), School Facilities Construction, 5.50%, 12/15/18 (d)
           1,935            2,273,625   


See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 37
 
  
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 (concluded):
                                        
(AGC), School Facilities Construction, 5.50%, 12/15/34
        $  1,065         $   1,225,410     
Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31
           5,000            6,207,350   
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25
           1,365            1,706,032   
School Facilities Construction, Series CC-2, 5.00%, 12/15/31
           1,525            1,706,643   
School Facilities Construction, Series UU, 5.00%, 6/15/40
           565             629,822   
New Jersey EDA, Refunding RB:
                                        
Cigarette Tax, 5.00%, 6/15/26
           810             921,399   
Cigarette Tax (AGM), 5.00%, 6/15/22
           2,940            3,512,006   
Lions Gate Project, 5.25%, 1/01/44
           430             454,596   
School Facilities Construction, Series RR, 5.00%, 6/15/33
           1,875            2,099,644   
New Jersey Health Care Facilities Financing Authority, RB, Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38
           2,350            2,545,943   
State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%, 6/15/28
           600             679,938   
 
                         28,411,048   
Transportation — 41.4%
                                        
Delaware River Port Authority of Pennsylvania & New Jersey, RB:
                                        
5.00%, 1/01/40
           1,380            1,611,012   
Series D, 5.00%, 1/01/40
           800             908,280   
New Jersey EDA, RB, Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43
           4,500            5,057,145   
New Jersey State Turnpike Authority, RB:
                                        
Series A, 5.00%, 1/01/38
           3,200            3,661,696   
Series A, 5.00%, 1/01/43
           500             567,130   
Series E, 5.25%, 1/01/40
           1,970            2,222,081   
New Jersey Transportation Trust Fund Authority, RB:
                                        
CAB, Transportation System, Series C (AGM), 0.00%, 12/15/32 (e)
           4,000            1,892,800   
Transportation Program, Series AA, 5.25%, 6/15/33
           3,110            3,579,952   
Transportation Program, Series AA, 5.00%, 6/15/38
           3,610            4,008,977   
Transportation Program, Series AA, 5.50%, 6/15/39
           2,260            2,635,544   
Transportation System, 6.00%, 12/15/38
           945             1,111,311   
Transportation System, Series A, 6.00%, 6/15/35
           4,135            5,080,840   
Transportation System, Series A, 5.88%, 12/15/38
           1,770            2,077,573   
Transportation System, Series A, 5.50%, 6/15/41
           2,000            2,305,640   
Transportation System, Series A (AGC), 5.50%, 12/15/38
           1,000            1,156,350   
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            6,035,400   
Series 8, 6.00%, 12/01/42
           1,430            1,700,170   
Port Authority of New York & New Jersey, Refunding ARB, Consolidated:
                                        
152nd Series, AMT, 5.75%, 11/01/30
           1,750            1,982,855   
166th Series, 5.25%, 7/15/36
           4,000            4,665,600   
 
                         52,260,356   

 

Municipal Bonds          Par
(000)
     Value
New Jersey (concluded)
Utilities — 0.8%
                                        
Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 0.00%, 9/01/33 (e)
        $  2,000          $ 1,043,700   
Total Municipal Bonds — 134.3%
                         169,562,937   

Municipal Bonds Transferred to Tender Option Bond Trusts (f)
                              
 
                                        
New Jersey — 24.8%
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            6,442,079   
Education — 1.3%
                                        
Rutgers—The State University of New Jersey, RB, Series F, 5.00%, 5/01/39
           1,499            1,709,350   
State — 5.3%
                                        
New Jersey EDA, RB, School Facilities Construction (AGC):
                                        
6.00%, 12/15/18 (d)
           987             1,179,935   
6.00%, 12/15/34
           2,013            2,359,150   
New Jersey EDA, Refunding RB, 5.00%, 3/01/29 (g)
           2,787            3,129,362   
 
                         6,668,447   
Transportation — 13.1%
                                        
New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/38 (g)
           4,700            5,378,116   
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
                                        
Series A (AMBAC), 5.00%, 12/15/32
           2,000            2,202,480   
Series B, 5.25%, 6/15/36 (g)
           2,501            2,798,502   
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/41
           3,495            3,889,795   
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.25%, 11/01/35
           2,039            2,263,533   
 
                         16,532,426   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 24.8%
                         31,352,302   
Total Long-Term Investments
(Cost — $181,477,460) — 159.1%
                         200,915,239   

Short-Term Securities
           Shares                  
BIF New Jersey Municipal Money Fund, 0.00% (h)(i)
           765,949            765,949   
Total Short-Term Securities
(Cost — $765,949) — 0.6%
                         765,949   
Total Investments (Cost — $182,243,409) — 159.7%
     201,681,188   
Other Assets Less Liabilities — 0.8%
                         1,046,609   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (13.7%)
                         (17,304,502 )  
VMTP Shares, at Liquidation Value — (46.8%)
                         (59,100,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 126,323,295   


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)      
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.
         
(d)      
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.
 

38 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Schedule of Investments (continued)   BlackRock New Jersey Municipal Income Trust (BNJ)
(e)      
Zero-coupon bond.
         
(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 June 15, 2019 to September 1, 2020 is $7,519,842.
         
(h)      
During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate



   
Shares
Held at
July 31, 2014

   
Net
Activity

   
Shares
Held at
January 31, 2015

   
Income
   
Gain
BIF New Jersey Municipal Money Fund
     
1,307,069
  
(541,120)
  
765,949
  
  
$51

(i)      
Represents the current yield as of report date.
         
     
As of January 31, 2015, financial futures contracts outstanding were as follows:

Contracts
Short



   
Issue
   
Exchange
   
Expiration
   
Notional
Value

   
Unrealized
Depreciation

(218)
     
10-Year U.S. Treasury Note
  
Chicago Board of Trade
  
March 2015
  
$28,530,750
  
$(760,934)

     
For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by 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. 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. 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. The three levels of the fair value hierarchy are as follows:
         
     
Level 1 — unadjusted quoted prices 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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
         
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.
         
       
As of January 31, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy.




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                                                
Investments:
                                                                                
Long-Term Investments1
                    $ 200,915,239                     $ 200,915,239   
Short-Term Securities
        $ 765,949                                    765,949   
Total
        $     765,949         $ 200,915,239                     $ 201,681,188   
1See above Schedule of Investments for values in each sector.




   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                                                
Liabilities:
                                                                                
Interest Rate contracts
        $    (760,934 )                                $    (760,934 )  
2Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 39
 
  
Schedule of Investments (concluded)   BlackRock New Jersey Municipal Income Trust (BNJ)
 

       
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of January 31, 2015, 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
        $     296,000                                 $ 296,000   
Liabilities:
                                                                                
TOB trust certificates
                    $ (17,301,282 )                       (17,301,282 )  
VMTP Shares
                       (59,100,000 )                       (59,100,000 )  
Total
        $ 296,000         $ (76,401,282 )                    $ (76,105,282 )  

During the six months ended January 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.
 

40 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Schedule of Investments January 31, 2015 (Unaudited) BlackRock New York Municipal Income Trust (BNY)
(Percentages shown are based on Net Assets)
   
Municipal Bonds          Par
(000)
     Value
New York — 131.1%
Corporate — 12.8%
                                        
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         $ 3,507,295   
7.75%, 8/01/31
           4,000            4,364,920   
City of New York New York Industrial Development Agency, Refunding RB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 7/01/28
           795             885,773   
County of Chautauqua New York Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42
           1,000            1,127,680   
County of Essex New York Industrial Development Agency, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32
           550             630,806   
County of Suffolk New York Industrial Development Agency, RB, KeySpan Generation LLC, Port Jefferson, AMT, 5.25%, 6/01/27
           6,000            6,027,780   
New York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.25%, 10/01/35
           4,880            6,087,459   
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (b)
           1,500            1,568,115   
Port Authority of New York & New Jersey, ARB, Continental Airlines, Inc. & Eastern Air Lines, Inc. Project, LaGuardia, AMT, 9.13%, 12/01/15
           1,715            1,742,697   
 
                          25,942,525     
County/City/Special District/School District — 32.0%
City of New York New York, GO, Fiscal 2014 Sub-Series D-1, 5.00%, 8/01/31
           690             821,397   
City of New York New York, GO, Refunding:
                                        
Series E, 5.50%, 8/01/25
           1,280            1,632,243   
Series E, 5.00%, 8/01/30
           1,000            1,184,290   
Series I, 5.00%, 8/01/30
           1,000            1,179,050   
City of New York New York, GO:
                                        
Series A-1, 5.00%, 8/01/35
           1,000            1,165,140   
Series A-1, Fiscal 2009, 4.75%, 8/15/25
           750             841,988   
Series D, 5.38%, 6/01/32
           25             25,107   
Sub-Series G-1, 5.00%, 4/01/28
           630             742,732   
Sub-Series G-1, 5.00%, 4/01/29
           750             882,030   
Sub-Series G-1, 6.25%, 12/15/31
           500             602,165   
Sub-Series I-1, 5.38%, 4/01/36
           1,750            2,031,943   
City of New York New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC):
                                        
5.00%, 11/15/35
           250             257,943   
5.00%, 11/15/44
           6,495            6,708,685   
4.75%, 11/15/45
           500             505,910   
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            1,352,872   
5.00%, 7/01/33
           500             577,525   
City of New York New York Industrial Development Agency, RB, PILOT:
                                        
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 3/01/42 (c)
           1,960            687,940   
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 3/01/45 (c)
           1,500            463,425   
Queens Baseball Stadium (AGC), 6.38%, 1/01/39
           150             176,105   
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39
           3,000            3,114,450   
Yankee Stadium Project (NPFGC), 4.75%, 3/01/46
           350             367,773   
City of New York New York Industrial Development Agency, Refunding ARB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 7/01/22
           650             734,500   

 

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 Bonds, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42
        $  2,500         $ 2,885,325   
Hudson Yards Infrastructure Corp., RB, Series A:
                                        
5.00%, 2/15/47
           5,485            5,857,541   
(AGC), 5.00%, 2/15/47
           1,000            1,069,590   
(AGM), 5.00%, 2/15/47
           1,000            1,069,590   
(NPFGC), 4.50%, 2/15/47
           4,500            4,760,640   
Senior, Fiscal 2012, 5.75%, 2/15/47
           200             235,142   
Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.00%, 11/15/34
           800             920,168   
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            2,315,000   
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49
           1,200            1,371,024   
3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (b)
           480             541,723   
4 World Trade Center Project, 5.00%, 11/15/31
           860             988,286   
4 World Trade Center Project, 5.00%, 11/15/44
           7,655            8,674,569   
4 World Trade Center Project, 5.75%, 11/15/51
           1,340            1,599,344   
7 World Trade Center Project, Class 1, 4.00%, 9/15/35
           1,935            2,125,965   
7 World Trade Center Project, Class 2, 5.00%, 9/15/43
           1,670            1,894,231   
7 World Trade Center Project, Class 3, 5.00%, 3/15/44
           2,070            2,298,673   
 
                          64,662,024     
Education — 30.1%
                                        
Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/40
           1,100            1,194,908   
Build NYC Resource Corp., RB, Bronx Charter School for International Cultures & The Arts Project, Series A, 5.00%, 4/15/33
           900             933,039   
Build NYC Resource Corp., Refunding RB:
                                        
City University New York Queens, Series A, 5.00%, 6/01/38
           250             294,453   
Pratt Paper, Inc. Project, AMT, 5.00%, 1/01/35 (b)
           280             302,733   
City of New York New York Trust for Cultural Resources, RB, Juilliard School, Series A, 5.00%, 1/01/39
           750             846,495   
City of New York New York Trust for Cultural Resources, Refunding RB:
                                        
American Museum of National History, Series A, 5.00%, 7/01/37
           225             269,438   
Carnegie Hall, Series A, 4.75%, 12/01/39
           2,000            2,224,560   
Museum of Modern Art, Series 1A, 5.00%, 4/01/31
           1,000            1,129,360   
City of Troy New York Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project, Series A, 5.13%, 9/01/40
           3,135            3,565,561   
City of Yonkers New York Industrial Development Agency, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41
           625             709,381   
County of Cattaraugus New York, RB, St. Bonaventure University Project, 5.00%, 5/01/34
           170             189,145   
County of Dutchess New York Industrial Development Agency, RB, Bard College Civic Facility, Series A-2, 4.50%, 8/01/36
           5,155            5,126,854   
County of Madison New York Capital Resource Corp., Refunding RB, Colgate University Project, Series A, 4.50%, 7/01/39
           135             152,213   
County of Madison New York Industrial Development Agency, RB, Commons II LLC, Student Housing, Series A (CIFG), 5.00%, 6/01/33
           275             290,177   


See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 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 (continued)
                                        
County of Monroe New York Industrial Development Corp., RB, University of Rochester Project, Series A, 5.00%, 7/01/31
        $  1,900         $   2,189,807     
County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A, 5.00%, 7/01/38
           320             372,995   
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            1,254,122   
County of Orange New York Funding Corp., Refunding RB, Mount St. Mary College Project, Series A:
                                        
5.00%, 7/01/37
           360             394,024   
5.00%, 7/01/42
           220             238,550   
County of St. Lawrence New York Industrial Development Agency, RB, Clarkson University Project, 5.38%, 9/01/41
           750             865,155   
County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM), 5.50%, 7/01/33
           700             809,032   
Geneva Development Corp., Refunding RB, Hobart and William Smith Colleges, 5.25%, 9/01/44
           500             589,980   
State of New York Dormitory Authority, ERB, Series B, 5.75%, 3/15/36
           600             705,144   
State of New York Dormitory Authority, RB:
                                        
Convent of the Sacred Heart (AGM), 5.25%, 11/01/24
           155             185,892   
Convent of the Sacred Heart (AGM), 5.63%, 11/01/32
           750             891,247   
Convent of the Sacred Heart (AGM), 5.75%, 11/01/40
           210             249,230   
Mount Sinai School of Medicine, 5.13%, 7/01/39
           2,000            2,267,640   
New York University, Series 1 (AMBAC), 5.50%, 7/01/40
           1,440            1,978,618   
New York University, Series A (AMBAC), 5.00%, 7/01/37
           1,000            1,093,870   
New York University, Series B, 5.00%, 7/01/37
           1,250            1,454,887   
State University Dormitory Facilities, Series A, 5.00%, 7/01/39
           750             848,452   
State University Dormitory Facilities, Series A, 5.00%, 7/01/41
           2,000            2,324,320   
Teachers College, Series B, 5.00%, 7/01/42
           3,225            3,671,791   
Touro College & University System, Series A, 5.25%, 1/01/34
           800             925,392   
Touro College & University System, Series A, 5.50%, 1/01/39
           2,000            2,320,300   
University of Rochester, Series A, 5.13%, 7/01/39
           850             974,227   
University of Rochester, Series A, 5.75%, 7/01/39
           650             759,213   
University of Rochester, Series B, 5.00%, 7/01/39
           500             536,535   
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            2,384,820   
Brooklyn Law School, 5.75%, 7/01/33
           475             542,630   
Cornell University, Series A, 5.00%, 7/01/40
           1,000            1,162,560   
Culinary Institute of America, 5.00%, 7/01/42
           300             328,146   
Fordham University, 4.00%, 7/01/30
           555             595,099   
Fordham University, 5.00%, 7/01/44
           850             989,332   
New York University, Series A, 5.00%, 7/01/37
           1,790            2,083,399   
Rochester Institute of Technology, 5.00%, 7/01/42
           1,790            2,037,987   
Rockefeller University, Series B, 4.00%, 7/01/38
           775             841,774   
Skidmore College, Series A, 5.00%, 7/01/28
           75             87,924   
Skidmore College, Series A, 5.25%, 7/01/29
           85             100,693   
State University Dormitory Facilities, Series A, 5.25%, 7/01/30
           2,355            2,877,928   
State University Dormitory Facilities, Series A, 5.25%, 7/01/32
           445             541,156   
Teachers College, 5.50%, 3/01/39
           450             509,054   

 

Municipal Bonds          Par
(000)
     Value
New York (continued)
Education (concluded)
                                        
Town of Hempstead New York Local Development Corp., Refunding RB, Adelphi University Project, 5.00%, 10/01/35
        $ 415          $ 487,629   
 
                          60,698,871     
Health — 16.0%
                                        
County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A, 5.75%, 7/01/40
           300             350,946   
County of Genesee New York Industrial Development Agency, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27
           500             500,520   
County of Monroe New York Industrial Development Corp., RB, Rochester General Hospital Project, Series A, 5.00%, 12/01/32
           240             272,393   
County of Monroe New York Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 8/15/40
           1,650            1,964,820   
County of Nassau New York Local Economic Assistance Corp., Refunding RB, Winthrop University Hospital Association Project, 5.00%, 7/01/42
           2,750            3,021,177   
County of Suffolk New York Economic Development Corp., RB, Catholic Health Services, Series C, 5.00%, 7/01/32
           230             267,292   
County of Suffolk New York Industrial Development Agency, Refunding RB, Jefferson’s Ferry Project, 5.00%, 11/01/28
           1,175            1,221,119   
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien:
                                        
Remarketing, Series A, 5.00%, 11/01/30
           3,500            3,945,760   
Series B, 6.00%, 11/01/30
           500             592,075   
County of Westchester New York Local Development Corp., Refunding RB, Kendal On Hudson Project:
                                        
5.00%, 1/01/28
           675             767,482   
5.00%, 1/01/34
           1,250            1,391,475   
State of New York Dormitory Authority, RB:
                                        
Hudson Valley Hospital (BHAC) (FHA), 5.00%, 8/15/36
           750             819,263   
Mental Health Services Facility, Series B (AMBAC), 5.00%, 2/15/15 (d)
           325             325,660   
New York State Association for Retarded Children, Inc., Series A, 6.00%, 7/01/32
           500             598,700   
New York State Association for Retarded Children, Inc., Series B (AMBAC), 6.00%, 7/01/32
           200             233,396   
New York University Hospitals Center, Series A, 6.00%, 7/01/40
           500             585,405   
New York University Hospitals Center, Series B, 5.63%, 7/01/17 (d)
           530             594,830   
North Shore-Long Island Jewish Obligated Group, Series A, 5.50%, 5/01/37
           1,775            2,027,014   
North Shore-Long Island Jewish Obligated Group, Series D, 4.25%, 5/01/39
           1,000            1,069,450   
Series B (AMBAC), 5.00%, 2/15/35
           1,675            1,678,400   
State of New York Dormitory Authority, Refunding RB:
                                        
Miriam Osborn Memorial Home Association, 5.00%, 7/01/29
           290             316,341   
Mount Sinai Hospital, Series A, 5.00%, 7/01/26
           1,385            1,605,090   
New York University Hospitals Center, Series A, 5.00%, 7/01/17 (d)
           3,390            3,747,713   
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 5/01/32
           1,750            1,981,157   
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 5/01/41
           1,000            1,119,870   
North Shore-Long Island Jewish Obligated Group, Series E, 5.50%, 5/01/33
           1,100            1,264,417   
 
                         32,261,765   


See Notes to Financial Statements.
 

42 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
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)
Housing — 1.9%
                                        
City of New York New York Housing Development Corp., RB, M/F Housing, Class F, 4.50%, 2/15/48
        $ 925          $ 947,376   
State of New York HFA, RB, M/F Housing, Highland Avenue Senior Apartments, Series A, AMT (SONYMA), 5.00%, 2/15/39
           1,500            1,535,910   
State of New York Mortgage Agency, RB, S/F Housing, 49th Series, 4.00%, 10/01/43
           1,000            1,041,540   
State of New York Mortgage Agency, Refunding RB, 48th Series, 3.70%, 10/01/38
           360             372,143   
 
                           3,896,969     
State — 11.2%
                                        
City of New York New York Transitional Finance Authority, BARB:
                                        
Fiscal 2015, Series S-1, 5.00%, 7/15/43
           1,190            1,405,926   
Series S-2 (NPFGC), 4.25%, 1/15/34
           1,260            1,295,532   
City of New York New York Transitional Finance Authority, RB, Future Tax Secured, 5.00%, 2/01/32
           5,000            5,975,400   
Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 4.00%, 10/15/32
           1,000            1,128,560   
State of New York Dormitory Authority, RB:
                                        
General Purpose, Series B, 5.00%, 3/15/42
           4,380            5,034,985   
General Purpose, Series C, 5.00%, 3/15/34
           2,185            2,566,020   
State Supported Debt, Series A, 5.00%, 3/15/44
           360             428,162   
State of New York Dormitory Authority, Refunding RB, School Districts Financing Program, Series A (AGM), 5.00%, 10/01/35
           395             443,230   
State of New York Thruway Authority, RB, Transportation, Series A, 5.00%, 3/15/32
           320             378,742   
State of New York Thruway Authority, Refunding RB, 2nd General Highway & Bridge Trust, Series A, 5.00%, 4/01/32
           2,500            2,909,600   
State of New York Urban Development Corp., RB, State Personal Income Tax, Series C, 5.00%, 3/15/30
           885             1,062,593   
 
                         22,628,750   
Tobacco — 0.3%
                                        
Chautauqua Tobacco Asset Securitization Corp., Refunding RB, 4.75%, 6/01/39
           150             151,003   
Niagara Tobacco Asset Securitization Corp., Refunding RB:
                                        
5.25%, 5/15/34
           250             290,900   
5.25%, 5/15/40
           110             127,325   
 
                         569,228   
Transportation — 17.3%
                                        
Metropolitan Transportation Authority, RB:
                                        
Series A-1, 5.25%, 11/15/33
           540             649,447   
Series C, 6.50%, 11/15/28
           1,000            1,208,280   
Series D, 5.25%, 11/15/41
           1,000            1,160,590   
Series E, 5.00%, 11/15/38
           4,000            4,667,840   
Metropolitan Transportation Authority, Refunding RB:
                                        
Series D, 5.25%, 11/15/30
           910             1,109,590   
Series F, 5.00%, 11/15/30
           2,000            2,369,020   
Series F (AGM), 4.00%, 11/15/30
           1,250            1,348,863   
Port Authority of New York & New Jersey, ARB:
                                        
Consolidated, 183rd Series, 4.00%, 6/15/44
           500             531,745   
JFK International Air Terminal LLC, Special Project, Series 6, AMT (NPFGC), 5.75%, 12/01/22
           6,000            6,035,400   
Special Project, JFK International Air Terminal LLC, Series 8, AMT (NPFGC), 6.00%, 12/01/42
           1,000            1,188,930   
Port Authority of New York & New Jersey, Refunding ARB:
                                        
178th Series, AMT, 5.00%, 12/01/33
           750             869,430   
179th Series, 5.00%, 12/01/38
           575             680,311   
Consolidated, 146th Series, AMT (AGM), 4.50%, 12/01/34
           500             513,015   
Consolidated, 147th Series, AMT, 4.75%, 4/15/37
           1,330            1,395,024   

 

Municipal Bonds          Par
(000)
     Value
New York (continued)
Transportation (concluded)
                                        
Port Authority of New York & New Jersey, Refunding ARB (concluded):
                                        
Consolidated, 177th Series, AMT, 4.00%, 1/15/43
        $  1,970         $ 2,042,043     
Consolidated, 178th Series, AMT, 5.00%, 12/01/43
           500             570,425   
State of New York Thruway Authority, Refunding RB, General:
                                        
Series I, 5.00%, 1/01/27
           1,000            1,185,840   
Series I, 5.00%, 1/01/37
           2,920            3,359,139   
Series I, 5.00%, 1/01/42
           280             317,934   
Series K, 5.00%, 1/01/32
           1,500            1,788,360   
Triborough Bridge & Tunnel Authority, Refunding RB, CAB (c):
                                        
General, Series B, 0.00%, 11/15/32
           2,500            1,435,650   
Sub-Series A, 0.00%, 11/15/32
           845             467,767   
 
                         34,894,643   
Utilities — 9.5%
                                        
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Series B, 5.00%, 6/15/36
           750             795,472   
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System:
                                        
2nd General Resolution, Series BB, 5.00%, 6/15/31
           1,000            1,159,430   
Series A, 4.75%, 6/15/30
           1,500            1,632,120   
City of New York New York Water & Sewer System, Refunding RB, Series D, 5.00%, 6/15/39
           5,000            5,089,950   
Long Island Power Authority, RB, General, Electric Systems:
                                        
Series A (AGM), 5.00%, 5/01/36
           500             565,430   
Series C (CIFG), 5.25%, 9/01/29
           2,000            2,555,720   
Long Island Power Authority, Refunding RB, Electric System, Series A, 5.75%, 4/01/39
           4,000            4,601,480   
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             410,512   
Utility Debt Securitization Authority, Refunding RB, Restructuring, Series E, 5.00%, 12/15/41
           2,000            2,386,920   
 
                         19,197,034   
Total Municipal Bonds in New York
                         264,751,809   
 
Puerto Rico — 1.2%
Housing — 1.2%
                                        
Puerto Rico Housing Finance Authority, Refunding RB, M/F Housing, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27
           2,400            2,559,168   
Total Municipal Bonds — 132.3%
                         267,310,977   

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
New York — 26.9%
County/City/Special District/School District — 5.4%
                                        
City of New York New York, GO:
                                        
Sub-Series G-1, 5.00%, 4/01/29
           4,370            5,139,295   
Sub-Series I-1, 5.00%, 3/01/36
           1,500            1,777,635   
City of New York New York Transitional Finance Authority, RB, Future Tax Secured, Sub-Series D-1, 5.00%, 11/01/38
           825             954,055   
New York Liberty Development Corp., Refunding RB, 7 World Trade Center Project, Class 1, 5.00%, 9/15/40
           2,610            3,044,486   
 
                         10,915,471   


See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 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 (e)
         Par
(000)
     Value
New York (continued)
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         $   4,178,107     
State — 2.4%
                                        
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39
           660             748,976   
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (f)
           1,250            1,469,522   
Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 5.00%, 10/15/31
           750             931,170   
State of New York Dormitory Authority, RB, General Purpose, Series C, 5.00%, 3/15/41
           1,500            1,736,325   
 
                         4,885,993   
Transportation — 5.3%
                                        
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43
           6,495            7,643,511   
Port Authority of New York & New Jersey, ARB, Consolidated, 169th Series, AMT, 5.00%, 10/15/26
           1,500            1,725,705   
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 3/15/31
           1,180            1,401,474   
 
                         10,770,690   
Utilities — 11.7%
                                        
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A, 5.75%, 6/15/40
           1,200            1,390,126   

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
         Par
(000)
     Value
New York (concluded)
Utilities (concluded)
                                        
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          $ 6,218,647   
2nd General Resolution, Fiscal 2012, Series BB, 5.00%, 6/15/44
           3,511            4,045,522   
2nd General Resolution, Series FF-2, 5.50%, 6/15/40
           810             949,501   
Series A, 4.75%, 6/15/30
           2,500            2,720,200   
Utility Debt Securitization Authority, Refunding RB, 5.00%, 12/15/41
           6,868            8,196,586   
 
                         23,520,582   
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 26.9%
                         54,270,843   
Total Long-Term Investments
(Cost — $291,018,478) — 159.2%
                         321,581,820   

Short-Term Securities
           Shares                  
BIF New York Municipal Money Fund, 0.00% (g)(h)
           1,228,125            1,228,125   
Total Short-Term Securities
(Cost — $1,228,125) — 0.6%
                         1,228,125   
Total Investments (Cost — $292,246,603) — 159.8%
                         322,809,945   
Other Assets Less Liabilities — 1.3%
                         2,625,622   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.3%)
                         (28,965,441 )  
VMTP Shares, at Liquidation Value — (46.8%)
                         (94,500,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 201,970,126   


Notes to Schedule of Investments

(a)      
Variable rate security. Rate shown is as of report date.
         
(b)      
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.
         
(c)      
Zero-coupon bond.
         
(d)      
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.
         
(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 agreement, which expires on February 15, 2019 is $661,933.
         
(g)      
During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate



   
Shares
Held at
July 31, 2014

   
Net
Activity

   
Shares
Held at
January 31, 2015

   
Income
   
Gain
BIF New York Municipal Money Fund
     
874,210
  
353,915
  
1,228,125
  

  
$125

(h)      
Represents the current yield as of report date.
         
     
As of January 31, 2015, financial futures contracts outstanding were as follows:

Contracts
Short



   
Issue
   
Exchange
   
Expiration
   
Notional
Value

   
Unrealized
Depreciation

(272)
     
10-Year U.S. Treasury Note
  
Chicago Board of Trade
  
March 2015
  
$35,598,000
     $ (1,035,249 )  

     
For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by 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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
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. 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. 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. The three levels of the fair value hierarchy are as follows:
         
     
Level 1 — unadjusted quoted prices 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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
         
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.
         
       
As of January 31, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                                                
Investments:
                                                                                
Long-Term Investments1
                    $ 321,581,820                     $ 321,581,820   
Short-Term Securities
        $ 1,228,125                                    1,228,125   
Total
        $   1,228,125         $  321,581,820                     $    322,809,945   
1 See above Schedule of Investments for values in each sector.




   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                                                
Liabilities:
                                                                                
Interest rate contracts
        $  (1,035,249 )                                $      (1,035,249 )  
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 January 31, 2015, 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
        $  370,000                                 $ 370,000   
Liabilities:
                                                                                
TOB trust certificates
                    $ (28,960,581 )                       (28,960,581 )  
VMTP Shares
                       (94,500,000 )                       (94,500,000 )  
Total
        $    370,000         $ (123,460,581 )                    $ (123,090,581 )  

       
During the six months ended January 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.
 

SEMI-ANNUAL REPORT JANUARY 31, 2015 45
 
  
Statements of Assets and Liabilities 

January 31, 2015 (Unaudited)
      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
       $ 830,429,947      $ 86,030,653      $ 168,501,179      $ 2,584,153,920      $ 200,915,239      $ 321,581,820  
Investments at value — affiliated2
        1,101,477       525,624       1,102,101       94,405,207       765,949       1,228,125  
Cash pledged for financial futures contracts
        543,000             201,000       3,108,002       296,000       370,000  
Interest receivable
        11,441,018       816,900       1,957,491       24,039,258       1,642,055       3,583,643  
TOB trust receivable
        2,500,000                                
Investments sold receivable
              30,738       295,583                    
Deferred offering costs
        11,069             123,496       791,055       6,821       8,071  
Prepaid expenses
        18,613       4,684       40,692       54,285       6,179       8,673  
Total assets
        846,045,124       87,408,599       172,221,542       2,706,551,727       203,632,243       326,780,332  
 
Accrued Liabilities
Investments purchased payable
        7,153,100             1,337,614       70,572,003              
Income dividends payable — Common Shares
        2,301,310       193,006       485,240       5,640,446       575,009       891,085  
Investment advisory fees payable
        401,424       36,752       86,236       775,088       102,753       164,869  
Variation margin payable on financial futures contracts
        275,000             101,750       1,575,063       149,875       187,000  
Officer’s and Trustees’ fees payable
        72,846       9,500       17,739       13,209       20,574       31,939  
Interest expense and fees payable
        25,793       68       4,348       41,577       3,220       4,860  
Offering costs payable
                          286,782              
Other accrued expenses payable
        57,314       52,523       34,849       152,912       56,235       69,872  
Total accrued liabilities
        10,286,787       291,849       2,067,776       79,057,080       907,666       1,349,625  
 
Other Liabilities
TOB Trust Certificates
        140,932,546       164,640       29,682,276       184,119,974       17,301,282       28,960,581  
RVMTP Shares, at liquidation value of $500,000,000 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
        312,232,546       164,640       63,882,276       934,119,974       76,401,282       123,460,581  
Total liabilities
        322,519,333       456,489       65,950,052       1,013,177,054       77,308,948       124,810,206  
Net Assets Applicable to Common Shareholders
       $ 523,525,791      $ 86,952,110      $ 106,271,490      $ 1,693,374,673      $ 126,323,295      $ 201,970,126  
 
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 net investment income
        3,299,444       2,236,065       667,683       1,521,432       1,405,614       2,800,513  
Accumulated net realized loss
        (15,252,009     (467,692     (11,056,447     (85,977,578     (2,507,073     (13,499,268
Net unrealized appreciation/depreciation
        88,907,346       4,787,221       21,614,281       106,531,923       18,676,845       29,528,093  
Net Assets Applicable to Common Shareholders
       $  523,525,791      $  86,952,110      $  106,271,490      $ 1,693,374,673      $  126,323,295      $  201,970,126  
Net asset value per Common Share
       $ 16.42      $ 15.63      $ 15.85      $ 24.02      $ 16.50      $ 15.64  
1 Investments at cost — unaffiliated
       $ 740,198,905      $ 81,243,432      $ 146,355,481      $ 2,470,000,089      $ 181,477,460      $ 291,018,478  
2 Investments at cost — affiliated
       $ 1,101,477      $ 525,624      $ 1,102,101      $ 94,405,207      $ 765,949      $ 1,228,125  
3 Preferred Shares outstanding, par value $0.001 per share
        1,713             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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Statements of Operations 

Six Months Ended January 31, 2015 (Unaudited)
      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
       $ 16,973,919      $ 1,390,616      $ 3,814,342      $ 47,252,309      $ 4,423,603      $ 6,848,884  
Income — affiliated
              229       148       5,825              
Total income
        16,973,919       1,390,845       3,814,490       47,258,134       4,423,603       6,848,884  
 
Expenses
Investment advisory
        2,334,109       218,241       506,358       5,145,086       602,056       963,996  
Professional
        49,474       26,679       27,295       90,744       27,972       33,101  
Officer and Trustees
        22,290       3,796       4,476       73,388       5,249       8,331  
Accounting services
        18,928       8,054       15,304       120,717       17,499       25,198  
Liquidity fees
                    157,715                    
Transfer agent
        18,260       12,356       9,539       48,379       10,640       12,905  
Custodian
        17,706       3,854       5,360       50,008       6,586       9,177  
Registration
        5,925       4,976       4,978       7,069       4,990       5,006  
Printing
        5,489       2,805       2,981       12,912       3,157       3,817  
Remarketing fees on Preferred Shares
              144       17,480                    
Miscellaneous
        39,240       15,418       31,448       77,042       28,654       36,200  
Total expenses excluding interest expense, fees and amortization of offering costs
        2,511,421       296,323       782,934       5,625,345       706,803       1,097,731  
Interest expense, fees and amortization of offering costs1
        1,290,770       532       127,668       3,345,531       407,723       613,659  
Total expenses
        3,802,191       296,855       910,602       8,970,876       1,114,526       1,711,390  
Less fees waived by Manager
        (231     (56     (26     (644,651     (591     (265
Total expenses after fees waived
        3,801,960       296,799       910,576       8,326,225       1,113,935       1,711,125  
Net investment income
        13,171,959       1,094,046       2,903,914       38,931,909       3,309,668       5,137,759  
 
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
                                                   
Investments
        4,356,905       281,516       188,841       6,902,980       208,234       (961,263
Financial futures contracts
        (1,178,582           (149,572     (5,390,056     (147,121     (411,206
Capital gain distributions received from affiliated investment companies
                                51       125  
 
        3,178,323       281,516       39,269       1,512,924       61,164       (1,372,344
Net change in unrealized appreciation/depreciation on:
                                                   
Investments
        17,852,742       986,315       5,635,810       144,066,312       7,781,194       15,102,781  
Financial futures contracts
        (1,400,507           (558,827     (7,669,413     (791,771     (1,099,471
 
        16,452,235       986,315       5,076,983       136,396,899       6,989,423       14,003,310  
Net realized and unrealized gain
        19,630,558       1,267,831       5,116,252       137,909,823       7,050,587       12,630,966  
 
Distributions to AMPS Shareholders From
Net investment income
              (175                        
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations
       $  32,802,517      $  2,361,702      $  8,020,166      $  176,841,732      $  10,360,255      $  17,768,725  
1  Related to TOBs, VMTP Shares, RVMTP Shares and/or VRDP Shares.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2015 47
 
  
Statements of Changes in Net Assets 

      BlackRock California
Municipal Income Trust (BFZ)

 
   
BlackRock Florida
Municipal 2020 Term Trust (BFO)

 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
      Six Months
Ended
January 31,
2015
(Unaudited)
  Year Ended
July 31,
2014
    Six Months
Ended
January 31,
2015
(Unaudited)
  Year Ended
July 31,
2014
 
Operations
Net investment income
       $ 13,171,959      $ 27,717,696              $ 1,094,046      $ 2,597,875  
Net realized gain (loss)
        3,178,323       2,256,752               281,516       (12,643
Net change in unrealized appreciation/depreciation
        16,452,235       41,827,362               986,315       1,450,413  
Distributions to AMPS Shareholders from net investment income
                            (175     (7,996
Net increase in net assets applicable to Common Shareholders resulting from operations
        32,802,517       71,801,810               2,361,702       4,027,649  
 
Distributions to Common Shareholders From1
Net investment income
        (13,807,858     (29,544,099             (1,158,035     (3,417,928
 
Net Assets Applicable to Common Shareholders
Total increase in net assets applicable to Common Shareholders
        18,994,659       42,257,711               1,203,667       609,721  
Beginning of period
        504,531,132       462,273,421               85,748,443       85,138,722  
End of period
       $ 523,525,791      $ 504,531,132              $ 86,952,110      $ 85,748,443  
Undistributed net investment income, end of period
       $  3,299,444      $  3,935,343              $  2,236,065      $  2,300,229  

      BlackRock Municipal
Income Investment Trust (BBF)

 
  BlackRock Municipal
Target Term Trust (BTT)

 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
      Six Months
Ended
January 31,
2015
(Unaudited)
  Year Ended
July 31,
2014
    Six Months
Ended
January 31,
2015
(Unaudited)
  Year Ended
July 31,
2014
 
Operations
Net investment income
       $ 2,903,914      $ 5,829,834              $ 38,931,909      $ 78,807,018  
Net realized gain (loss)
        39,269       (2,402,970             1,512,924       (34,054,206
Net change in unrealized appreciation/depreciation
        5,076,983       10,413,901               136,396,899       262,136,762  
Net increase in net assets applicable to Common Shareholders resulting from operations
        8,020,166       13,840,765               176,841,732       306,889,574  
 
Distributions to Common Shareholders From1
Net investment income
        (2,911,441     (5,822,882             (33,842,674     (76,622,483
Return of capital
                                  (1,726,833
Decrease in net assets resulting from distributions to Common Shareholders
        (2,911,441     (5,822,882             (33,842,674     (78,349,316
 
Net Assets Applicable to Common Shareholders
Total increase in net assets applicable to Common Shareholders
        5,108,725       8,017,883               142,999,058       228,540,258  
Beginning of period
        101,162,765       93,144,882               1,550,375,615       1,321,835,357  
End of period
       $ 106,271,490      $ 101,162,765              $ 1,693,374,673      $ 1,550,375,615  
Undistributed net investment income, end of period
       $  667,683      $  675,210              $  1,521,432      $  (3,567,803
1 Distributions for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

48 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Statements of Changes in Net Assets 
      BlackRock New Jersey
Municipal Income Trust (BNJ)

 
 
BlackRock New York
Municipal Income Term Trust (BNY)

 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
      Six Months
Ended
January 31,
2015
(Unaudited)
  Year Ended
July 31,
2014
    Six Months
Ended
January 31,
2015
(Unaudited)
  Year Ended
July 31,
2014
 
Operations
Net investment income
       $ 3,309,668      $ 6,739,790              $ 5,137,759      $ 10,512,672  
Net realized gain (loss)
        61,164       (1,263,047             (1,372,344     (5,927,653
Net change in unrealized appreciation/depreciation
        6,989,423       10,982,374               14,003,310       21,679,641  
Net increase in net assets applicable to Common Shareholders resulting from operations
        10,360,255       16,459,117               17,768,725       26,264,660  
 
Distributions to Common Shareholders From1
Net investment income
        (3,545,761     (6,900,107             (5,346,510     (10,693,021
 
Net Assets Applicable to Common Shareholders
Total increase in net assets applicable to Common Shareholders
        6,814,494       9,559,010               12,422,215       15,571,639  
Beginning of period
        119,508,801       109,949,791               189,547,911       173,976,272  
End of period
       $ 126,323,295      $ 119,508,801              $ 201,970,126      $ 189,547,911  
Undistributed net investment income, end of period
       $  1,405,614      $  1,641,707              $  2,800,513      $  3,009,264  
1 Distributions for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2015 49
 
  
Statements of Cash Flows 

Six Months Ended January 31, 2015 (Unaudited)
      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 (Used for) Operating Activities
Net increase in net assets resulting from operations
       $ 32,802,517      $ 8,020,166      $ 176,841,732      $ 10,360,255      $ 17,768,725  
Adjustments to reconcile net increase in net assets resulting from operations
to net cash provided by (used for) operating activities:
                                           
(Increase) decrease in interest receivable
        (255,631     24,103       1,207,962       43,553       60,532  
Decrease in variation margin receivable on financial futures contracts
        14,952       3,000       90,462       3,375       7,734  
(Increase) decrease in prepaid expenses
        13,212       22,445       (11,822     19,570       18,314  
Increase in cash pledged for financial futures contracts
        (107,000     (113,000     (731,000     (197,000     (144,000
Increase in investment advisory fees payable
        17,126       2,314       38,299       3,257       6,092  
Increase (decrease) in interest expense and fees payable
        1,120       (1,737     (9,435     (550     (759
Decrease in other accrued expenses payable
        (46,451     (9,171     (43,514     (13,546     (13,501
Increase in variation margin payable on financial futures contracts
        275,000       101,750       1,575,063       149,875       187,000  
Decrease in Officer’s and Trustees’ fees payable
        (1,587     (353     (2,065     (475     (800
Net realized gain (loss) on investments
        (4,356,905     (188,841     (6,902,980     (208,235     1,179,387  
Net unrealized gain on investments
        (17,852,742     (5,635,810     (144,066,312     (7,781,194     (15,102,781
Amortization of premium and accretion of discount on investments
        1,635,787       203,965       927,215       127,300       457,411  
Proceeds from sales of long-term investments
        171,578,996       4,297,288       203,978,302       14,238,265       11,602,489  
Purchases of long-term investments
        (201,138,389     (4,021,740     (110,086,319     (13,764,930     (10,855,117
Net proceeds from sales (purchases) of short-term securities
        (547,865     196,608       (88,987,953     541,120       (353,915
Net cash provided by (used for) operating activities
        (17,967,860     2,900,987       33,817,635       3,520,640       4,816,811  
 
Cash Provided by (used for) Financing Activities
Proceeds from TOB trust certificates
        31,734,992                         500,000  
Cash dividends paid to Common Shareholders
        (13,807,858     (2,911,441     (33,842,674     (3,545,761     (5,346,510
Amortization of deferred offering costs
        40,726       10,454       25,039       25,121       29,699  
Net cash provided by (used for) financing activities
        17,967,860       (2,900,987     (33,817,635     (3,520,640     (4,816,811
 
Cash
Net increase in cash
                                 
Cash at beginning of period
                                 
Cash at end of period
                                 
 
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest and fees
       $  1,248,924      $  118,951      $  3,329,927      $  383,152      $  584,719  

See Notes to Financial Statements.

50 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Financial Highlights  BlackRock California Municipal Income Trust (BFZ)

Six Months
Ended
January 31,
2015
(Unaudited)
 
Year Ended July 31,

  2014   2013   2012   2011   2010
 
Per Share Operating Performance
Net asset value, beginning of period
 $ 15.83      $ 14.50      $ 16.32      $ 13.88      $ 14.28      $ 12.71  
Net investment income1
  0.41       0.87       0.89       0.95       0.98       1.00  
Net realized and unrealized gain (loss)
  0.61       1.39       (1.78     2.42       (0.45     1.50  
Distributions to AMPS Shareholders from net investment income
                    (0.01     (0.02     (0.02
Net increase (decrease) from investment operations
  1.02       2.26       (0.89     3.36       0.51       2.48  
Distributions to Common Shareholders from net investment income2
  (0.43     (0.93     (0.93     (0.92     (0.91     (0.91
Net asset value, end of period
 $ 16.42      $ 15.83      $ 14.50      $ 16.32      $ 13.88      $ 14.28  
Market price, end of period
 $ 15.80      $ 14.41      $ 13.63      $ 16.64      $ 13.16      $ 14.21  
 
Total Return Applicable to Common Shareholders3
Based on net asset value
  6.75% 4      16.48%       (5.81)%       24.98%       4.05%        20.15%  
Based on market price
  12.85% 4      12.80%       (13.17)%       34.40%       (0.86)%       22.55%  
 
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
  1.47% 5      1.59%       1.63%       1.49% 6      1.46% 6      1.36% 6 
Total expenses after fees waived and paid indirectly
  1.47% 5      1.59%       1.63%       1.46% 6      1.39% 6      1.27% 6 
Total expenses after fees waived and paid indirectly and excluding interest expense, and fees and amortization of offering costs7
  0.97% 5      1.03%       1.01%       1.07% 6,8      1.12% 6      1.04% 6 
Net investment income
  5.09% 5      5.78%       5.49%       6.28% 6      7.19% 6      6.94% 6 
Distributions to AMPS Shareholders
                    0.05%       0.15%       0.15%  
Net investment income to Common Shareholders
  5.09% 5      5.78%       5.49%       6.23%       7.04%       6.79%  
 
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
 $ 523,526      $ 504,531      $ 462,273      $ 519,578      $ 441,745      $ 454,299  
AMPS outstanding at $25,000 liquidation preference, end of period (000)
                         $ 171,325      $ 171,325  
Asset coverage per AMPS at $25,000 liquidation preference,
end of period (000)
                         $ 89,460      $ 91,293  
VMTP Shares outstanding at $100,000 liquidation value,
end of period (000)
 $ 171,300      $ 171,300      $ 171,300      $ 171,300              
Asset coverage per VMTP Shares at $100,000 liquidation value,
end of period
 $ 405,619      $ 394,531      $ 369,862      $ 403,314              
Borrowings outstanding, end of period (000)
 $ 140,933      $ 106,698      $ 158,655      $ 162,234      $ 143,713      $ 128,065  
Asset coverage, end of period per $1,000 of borrowings
 $ 4,715      $ 5,729      $ 3,914      $ 4,203      $ 4,074      $ 4,547  
Portfolio turnover rate
  20%       25%       22%       30%       36%       47%  
1 Based on average Common Shares outstanding.
2 Distributions 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 distributions.
4 Aggregate total return.
5 Annualized.
6 Does not reflect the effect of distributions to AMPS Shareholders.
7 Interest expense, fees and amortization of offering costs related 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.
8 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.

SEMI-ANNUAL REPORT JANUARY 31, 2015 51
 
  
Financial Highlights  BlackRock Florida Municipal 2020 Term Trust (BFO)

      Six Months
Ended
January 31,
2015
(Unaudited)
 
Year Ended July 31,

 
        2014   2013   2012   2011   2010
 
Per Share Operating Performance
Net asset value, beginning of period
       $ 15.42      $ 15.31      $ 16.05      $ 14.94      $ 14.91      $ 13.35  
Net investment income1
        0.20       0.47       0.68       0.85       0.92       0.95  
Net realized and unrealized gain (loss)
        0.22       0.25       (0.65     0.98       (0.19     1.31  
Distributions to AMPS Shareholders from net investment income
        (0.00 )2      (0.00 )2      (0.01     (0.02     (0.03     (0.03
Net increase from investment operations
        0.42       0.72       0.02       1.81       0.70       2.23  
Distributions to Common Shareholders from net investment income3
        (0.21     (0.61     (0.76     (0.70     (0.67     (0.67
Net asset value, end of period
       $ 15.63      $ 15.42      $ 15.31      $ 16.05      $ 14.94      $ 14.91  
Market price, end of period
       $ 15.23      $ 15.16      $ 15.12      $ 15.60      $ 13.91      $ 14.30  
 
Total Return Applicable to Common Shareholders4
Based on net asset value
        2.76% 5      4.84%       0.12%       12.44%       5.07%       17.35%  
Based on market price
        1.84% 5      4.36%       1.73%       17.38%       2.00%       22.05%  
 
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses6
        0.68% 7      0.74%       0.92%       1.06%       1.13%       1.14%  
Total expenses after fees waived and paid indirectly6
        0.68% 7      0.74%       0.92%       1.06%       1.13%       1.13%  
Total expenses after fees waived and paid indirectly and excluding interest expense and fees6,8
        0.68% 7,9      0.74% 9      0.92% 9      1.06% 9      1.09%       1.09%  
Net investment income6
        2.52% 7      3.05%       4.23%       5.48%       6.29%       6.72%  
Distributions to AMPS Shareholders
        0.00% 7      0.01%       0.09%       0.12%       0.19%       0.22%  
Net investment income to Common Shareholders
        2.52% 7      3.04%       4.14%       5.36%       6.10%       6.50%  
 
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
       $ 86,952      $ 85,748      $ 85,139      $ 89,251      $ 83,111      $ 82,929  
AMPS outstanding at $25,000 liquidation preference, end of period (000)
             $ 625      $ 19,100      $ 42,900      $ 42,900      $ 42,900  
Asset coverage per AMPS at $25,000 liquidation preference, end of period
             $ 3,454,938      $ 136,438      $ 77,011      $ 73,433      $ 73,329  
Borrowings outstanding, end of period (000)
       $ 165      $ 190      $ 280      $ 470      $ 500      $ 4,372  
Asset coverage, end of period per $1,000 of borrowings
       $ 529,135      $ 452,308      $ 305,067      $ 190,897      $ 167,223      $ 19,970  
Portfolio turnover rate
        12%       1%       9%       32%       6%       6%  
1 Based on average Common Shares outstanding.
2 Amount is greater than $(0.005) per share.
3 Distributions 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 distributions.
5 Aggregate total return.
6 Does not reflect the effect of distributions to AMPS Shareholders.
7 Annualized.
8 Interest expense and fees relate to TOBs. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
9 For the six months ended January 31, 2015 and 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 0.68%, 0.73%, 0.87% and 0.97%, respectively.

See Notes to Financial Statements.

52 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Financial Highlights  BlackRock Municipal Income Investment Trust (BBF)

      Six Months
Ended
January 31,
2015
(Unaudited)
 
Year Ended July 31,

 
        2014   2013   2012   2011   2010
 
Per Share Operating Performance
Net asset value, beginning of period
       $ 15.09      $ 13.89      $ 15.91      $ 13.40      $ 13.91      $ 12.71  
Net investment income1
        0.43       0.87       0.85       0.86       0.97       0.92  
Net realized and unrealized gain (loss)
        0.76       1.20       (2.00     2.55       (0.56     1.20  
Distributions to AMPS Shareholders from net investment income
                          (0.00 )2      (0.02     (0.02
Net increase (decrease) from investment operations
        1.19       2.07       (1.15     3.41       0.39       2.10  
Distributions to Common Shareholders from net investment income3
        (0.43     (0.87     (0.87     (0.90     (0.90     (0.90
Net asset value, end of period
       $ 15.85      $ 15.09      $ 13.89      $ 15.91      $ 13.40      $ 13.91  
Market price, end of period
       $ 14.49      $ 13.48      $ 12.47      $ 16.25      $ 12.74      $ 13.90  
 
Total Return Applicable to Common Shareholders4
Based on net asset value
        8.34% 5      16.06%       (7.56)%       26.21%       3.15%        17.04%  
Based on market price
        10.87% 5      15.49%       (18.75)%       35.59%       (1.86)%       19.01%  
 
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
        1.74% 6      1.85%       1.83%       1.99% 7      1.60% 7      1.46% 7 
Total expenses after fees waived
        1.74% 6      1.85%       1.83%       1.99% 7      1.60% 7      1.37% 7 
Total expenses after fees waived and paid indirectly and excluding interest expense and fees, and amortization of offering costs8
        1.50% 6,9      1.56% 9      1.49% 9      1.61% 7,9      1.33% 7      1.17% 7 
Net investment income
        5.56% 6      6.09%       5.41%       5.89% 7      7.35% 7      6.84% 7 
Distributions to AMPS Shareholders
                          0.02%       0.14%       0.16%  
Net investment income to Common Shareholders
        5.56% 6      6.09%       5.41%       5.87%       7.21%       6.68%  
 
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
       $ 106,271      $ 101,163      $ 93,145      $ 106,627      $ 89,726      $ 93,073  
AMPS outstanding at $25,000 liquidation preference, end of period (000)
                               $ 34,250      $ 34,250  
Asset coverage per AMPS at $25,000 liquidation preference, end of period
                               $ 90,493      $ 92,938  
VRDP Shares outstanding at $100,000 liquidation value, end of period (000)
        34,200       34,200       34,200       34,200              
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period
       $ 410,735      $ 395,798      $ 372,353      $ 411,775              
Borrowings outstanding, end of period (000)
       $ 29,682      $ 29,682      $ 34,096      $ 33,466      $ 30,617      $ 26,262  
Asset coverage, end of period per $1,000 of borrowings
       $ 4,580      $ 4,408      $ 3,732      $ 4,186      $ 3,931      $ 4,544  
Portfolio turnover rate
        3%       22%       33%       39%       24%       46%  
1 Based on average Common Shares outstanding.
2 Amount is greater than $(0.005) per share.
3 Distributions 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 distributions.
5 Aggregate total return.
6 Annualized.
7 Does not reflect the effect of distributions to AMPS Shareholders.
8 Interest expense, fees and amortization of offering costs related 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.
9 For the six months ended January 31, 2015 and 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 1.16%, 1.19%, 1.17% and 1.31%, respectively.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2015 53
 
  
Financial Highlights  BlackRock Municipal Target Term Trust (BTT)

      Six Months Ended
January 31, 2015
(Unaudited)
  Year Ended
July 31,
2014
  Period
August 30,
20121 to
July 31, 2013
 
Per Share Operating Performance
Net asset value, beginning of period
       $ 21.99      $ 18.75      $ 23.88 2 
Net investment income3
        0.55       1.12       0.80  
Net realized and unrealized gain (loss)
        1.96       3.23       (4.95
Net increase (decrease) from investment operations
        2.51       4.35       (4.15
Distributions from:4
                           
Net investment income
        (0.48     (1.09     (0.87
Return of capital
              (0.02     (0.11
Total distributions
        (0.48     (1.11     (0.98
Net asset value, end of period
       $ 24.02      $ 21.99      $ 18.75  
Market price, end of period
       $ 21.59      $ 19.57      $ 18.42  
 
Total Return Applicable to Common Shareholders5 
Based on net asset value
        11.84% 6      24.50%       (18.00)% 6 
Based on market price
        12.95% 6      12.78%       (23.05)% 6 
 
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
        1.10% 7      1.22%       0.99% 7 
Total expenses after fees waived and paid indirectly
        1.02% 7      1.21%       0.99% 7 
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs8
        0.61% 7      0.72%       0.64% 7 
Net investment income to Common Shareholders
        4.77% 7      5.61%       3.78% 7 
 
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
       $ 1,693,375      $ 1,550,376      $ 1,321,835  
RVMTP Shares outstanding at $5,000,000 liquidation value, end of period (000)
       $ 750,000      $ 750,000      $ 750,000  
Asset coverage per RVMTP Shares at $5,000,000 liquidation value, end of period
       $ 16,289,164      $ 15,335,837      $ 13,812,236  
Borrowings outstanding, end of period (000)
       $ 184,120      $ 184,120      $ 238,705  
Asset coverage, end of period per $1,000 of borrowings
       $ 10,197      $ 9,420      $ 6,538  
Portfolio turnover rate
        7%       6%       39%  
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 Shares outstanding.
4 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 distributions.
6 Aggregate total return.
7 Annualized.
8 Interest expense, fees and amortization of offering costs 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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Financial Highlights  BlackRock New Jersey Municipal Income Trust (BNJ)

      Six Months
Ended
January 31,
2015
(Unaudited)
 
Year Ended July 31,

 
        2014   2013   2012   2011   2010
 
Per Share Operating Performance
Net asset value, beginning of period
       $ 15.61      $ 14.36      $ 16.17      $ 14.07      $ 14.38      $ 12.78  
Net investment income1
        0.43       0.88       0.88       0.95       0.98       1.02  
Net realized and unrealized gain (loss)
        0.92       1.27       (1.75     2.11       (0.32     1.54  
Distributions to AMPS Shareholders from net investment income
                          (0.01     (0.03     (0.03
Net increase (decrease) from investment operations
        1.35       2.15       (0.87     3.05       0.63       2.53  
Distributions to Common Shareholders from net investment income2
        (0.46     (0.90     (0.94     (0.95     (0.94     (0.93
Net asset value, end of period
       $ 16.50      $ 15.61      $ 14.36      $ 16.17      $ 14.07      $ 14.38  
Market price, end of period
       $ 16.55      $ 14.68      $ 13.67      $ 17.67      $ 14.10      $ 14.82  
 
Total Return Applicable to Common Shareholders3
Based on net asset value
        8.98% 4      16.01%       (5.82)%       22.25%       4.74%       20.22%  
Based on market price
        16.23% 4      14.60%       (17.95)%       33.30%       1.85%       13.11%  
 
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
        1.80% 5      1.89%       1.81%       1.47% 6      1.25% 6      1.23% 6 
Total expenses after fees waived and paid indirectly
        1.80% 5      1.89%       1.81%       1.46% 6      1.24% 6      1.13% 6 
Total expenses after fees waived and paid indirectly and excluding interest expense and fees, and amortization of offering costs7
        1.14% 5      1.18%       1.13%       1.18% 6,8      1.22% 6      1.12% 6 
Net investment income
        5.35% 5      5.96%       5.51%       6.28% 6      7.09% 6      7.42% 6 
Distributions to AMPS Shareholders
                          0.08%       0.21%       0.23%  
Net investment income to Common Shareholders
        5.35% 5      5.96%       5.51%       6.20%       6.88%       7.19%  
 
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
       $ 126,323      $ 119,509      $ 109,950      $ 123,497      $ 107,226      $ 109,257  
AMPS outstanding at $25,000 liquidation preference, end of period (000)
                               $ 59,100      $ 59,100  
Asset coverage per AMPS at $25,000 liquidation preference, end of period
                               $ 70,358      $ 71,218  
VMTP Shares outstanding at $100,000 liquidation value, end of
period (000)
       $ 59,100      $ 59,100      $ 59,100      $ 59,100              
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period
       $ 313,745      $ 302,215      $ 286,040      $ 308,962              
Borrowings outstanding, end of period (000)
       $ 17,301      $ 17,301      $ 17,302      $ 10,634      $ 3,859      $ 2,359  
Asset coverage, end of period per $1,000 of borrowings
       $ 8,301      $ 7,908      $ 7,355      $ 12,614      $ 28,784      $ 47,309  
Portfolio turnover rate
        7%       20%       9%       20%       20%       11%  
1 Based on average Common Shares outstanding.
2 Distributions 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 distributions.
4 Aggregate total return.
5 Annualized.
6 Does not reflect the effect of distributions to AMPS Shareholders.
7 Interest expense, fees and amortization of offering costs related 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.
8 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.

SEMI-ANNUAL REPORT JANUARY 31, 2015 55
 
  
Financial Highlights  BlackRock New York Municipal Income Trust (BNY)

      Six Months
Ended
January 31,
2015
(Unaudited)
 
Year Ended July 31,

 
        2014   2013   2012   2011   2010
 
Per Share Operating Performance
Net asset value, beginning of period
       $ 14.68      $ 13.47      $ 15.53      $ 13.87      $ 14.27      $ 12.71  
Net investment income1
        0.40       0.81       0.87       0.93       1.01       1.04  
Net realized and unrealized gain (loss)
        0.97       1.23       (2.06     1.73       (0.39     1.54  
Distributions to AMPS Shareholders from net investment income
                          (0.01     (0.03     (0.03
Net increase (decrease) from investment operations
        1.37       2.04       (1.19     2.65       0.59       2.55  
Distributions to Common Shareholders from net investment income2
        (0.41     (0.83     (0.87     (0.99     (0.99     (0.99
Net asset value, end of period
       $ 15.64      $ 14.68      $ 13.47      $ 15.53      $ 13.87      $ 14.27  
Market price, end of period
       $ 15.02      $ 13.79      $ 13.16      $ 16.73      $ 14.20      $ 15.11  
 
Total Return Applicable to Common Shareholders3
Based on net asset value
        9.65% 4      15.98%       (8.18)%       19.62%       4.39%       20.35%  
Based on market price
        12.10% 4      11.51%       (16.73)%       25.87%       0.94%       16.11%  
 
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
        1.74% 5      1.82%       1.85%       1.49% 6      1.27% 6      1.25% 6 
Total expenses after fees waived and paid indirectly
        1.74% 5      1.82%       1.84%       1.49% 6      1.27% 6      1.16% 6 
Total expenses after fees waived and paid indirectly and excluding interest expense, and fees and amortization of offering costs7
        1.11% 5      1.13%       1.14%       1.18% 6,8      1.22% 6      1.11% 6 
Net investment income
        5.21% 5      5.89%       5.71%       6.34% 6      7.35% 6      7.50% 6 
Distributions to AMPS Shareholders
                          0.08%       0.20%       0.22%  
Net investment income to Common Shareholders
        5.21% 5      5.89%       5.71%       6.26%       7.15%       7.28%  
 
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
       $ 201,970      $ 189,548      $ 173,976      $ 200,020      $ 177,993      $ 182,372  
AMPS outstanding at $25,000 liquidation preference, end of period (000)
                               $ 94,500      $ 94,500  
Asset coverage per AMPS at $25,000 liquidation preference, end of period
                               $ 72,089      $ 73,248  
VMTP Shares outstanding at $100,000 liquidation value, end of
period (000)
       $ 94,500      $ 94,500      $ 94,500      $ 94,500              
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period
       $ 313,725      $ 300,580      $ 284,102      $ 311,661              
Borrowings outstanding, end of period (000)
       $ 28,961      $ 28,461      $ 31,620      $ 32,847      $ 11,089      $ 13,410  
Asset coverage, end of period per $1,000 of borrowings
       $ 7,974      $ 7,660      $ 6,502      $ 7,090      $ 17,051      $ 14,600  
Portfolio turnover rate
        3%       26%       23%       24%       17%       16%  
1 Based on average Common Shares outstanding.
2 Distributions 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 distributions.
4 Aggregate total return.
5 Annualized.
6 Does not reflect the effect of distributions to AMPS Shareholders.
7 Interest expense, fees and amortization of offering costs related 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.
8 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 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Notes to Financial Statements (Unaudited)

1. Organization:

The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies. BlackRock California Municipal Income Trust, BlackRock Municipal Income Investment Trust, BlackRock Municipal Target Term Trust, BlackRock New Jersey Municipal Income Trust, BlackRock New York Municipal Income Trust (collectively, the “Income Trusts”) and BlackRock Florida Municipal 2020 Term Trust are referred to herein collectively as the “Trusts”:


Trust Name



   
Herein Referred To As
   
Organized
   
Diversification
Classification

BlackRock California Municipal Income Trust
     
BFZ
  
Delaware
  
Non-diversified
BlackRock Florida Municipal 2020 Term Trust
     
BFO
  
Delaware
  
Non-diversified
BlackRock Municipal Income Investment Trust
     
BBF
  
Delaware
  
Non-diversified
BlackRock Municipal Target Term Trust
     
BTT
  
Delaware
  
Non-diversified
BlackRock New Jersey Municipal Income Trust
     
BNJ
  
Delaware
  
Non-diversified
BlackRock New York Municipal Income Trust
     
BNY
  
Delaware
  
Non-diversified

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: The Trusts’ investments are valued at fair value as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the report date). 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. 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. Investments in open-end registered investment companies are valued at NAV each business day.

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 Investments”). When determining the price for Fair Value Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Trust might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-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 Investments 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 Trust’s 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.

SEMI-ANNUAL REPORT JANUARY 31, 2015 57
 
  
Notes to Financial Statements (continued) 

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.

Distributions: Distributions 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 Trust’s 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 distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. 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 Trust’s 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 officer’s 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.

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

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 Trust may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

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 TOB Trusts: The Trusts leverage their assets through the use of TOB Trusts. The Trusts transfer municipal bonds into a special purpose entity (“TOB Trust”). Other funds managed by the investment advisor may also contribute municipal bonds to a TOB Trust 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 Trust, the rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation in the Trust.

The municipal bonds transferred to a TOB Trust typically are high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB transaction includes a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider. The Trusts, as TOB Residual holders, would be responsible for the payment of the credit enhancement fee and for reimbursement of any payments of principal and interest made by the credit enhancement provider.

The Residuals held by a Trust include the right of a Trust (subject to the non-occurrence of certain termination events enumerated below, and a specified number of days’ prior notice), to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates at par plus accrued interest. Thereafter, that Trust may withdraw a corresponding share of the municipal bonds from the TOB Trust. The TOB Trust may also be collapsed without the consent of a Trust, upon the occurrence of tender option termination events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the

58 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Notes to Financial Statements (continued) 


TOB Trust agreements. TOTEs may include the bankruptcy or default of the issuer of the municipal bond, a substantial downgrade in credit quality of the issuer of the municipal bond, failure of any scheduled payment of principal or interest on the underlying bonds, and a judgment or ruling that interest on the municipal bond is subject to federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Trust Certificates, the inability of the TOB Trust to obtain renewal of the liquidity support agreement and a substantial decline in the market value of the municipal bond. Upon the occurrence of a TOTE or an MTE, the TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing agent and the Liquidity Provider. In the case of an MTE, after the payment of fees, the TOB Trust Certificate holders would be paid senior to the Residual holders (i.e., the Trusts). In contrast, in the case of a TOTE, after payment of fees, the TOB Trust Certificate holders and Residual holders would be paid equally in proportion to the respective face values of their certificates. During the six months ended January 31, 2015, no TOB Trusts in which the Trusts participated were terminated without the consent of the Trusts.

The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less transaction expenses, is paid to a Trust. The Trusts typically invest the cash received in additional municipal bonds. Each Trust’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes; therefore, the municipal bonds deposited into a TOB Trust 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 Trust’s 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 TOB Trusts 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 TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility, 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 Trust 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 Trust will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by the Trusts at January 31, 2015, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by the Trusts at January 31, 2015.

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 Trust 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 January 31, 2015, the aggregate value of the underlying municipal bonds transferred to TOB Trusts, 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
        $ 309,935,880         $ 140,932,546      
0.02% - 0.17%
BFO
        $ 255,887         $ 164,640      
0.08%
BBF
        $ 58,185,164         $ 29,682,276      
0.02% - 0.27%
BTT
        $ 398,744,670         $ 184,119,974      
0.02% - 0.11%
BNJ
        $ 31,352,302         $ 17,301,282      
0.02% - 0.27%
BNY
        $ 54,270,843         $ 28,960,581      
0.02% - 0.20%

For the six months ended January 31, 2015, 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
        $ 115,177,363            0.61 %  
BFO
        $ 167,078            0.63 %  
BBF
        $ 29,682,276            0.63 %  
BTT
        $ 184,119,974            0.75 %  
BNJ
        $ 17,301,282            0.74 %  
BNY
        $ 28,677,972            0.61 %  
SEMI-ANNUAL REPORT JANUARY 31, 2015 59
 
  
Notes to Financial Statements (continued) 

Should short-term interest rates rise, the Trusts’ investments in TOB transactions 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.

While the Trusts’ investment policies and restrictions expressly permit investments in inverse floating rate securities such as Residuals, they generally do not allow the Trusts to borrow money for purposes of making investments. The Trusts’ management believes that the Trusts’ restrictions on borrowings do not apply to secured borrowings. For accounting purposes, the Trusts’ transfer of municipal bonds to a TOB Trust are deemed secured borrowings.

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 interest rate risk. These contracts may be transacted on an exchange.

Financial Futures Contracts: The Trusts invest in long and/or short positions in 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 contract’s 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.

The following is a summary of the Trusts’ derivative financial instruments categorized by risk exposure:


Fair Values of Derivative Financial Instruments as of January 31, 2015

              Value
   
              Derivative Liabilities
   



   
Statements of Assets
and Liabilities Location

   
BFZ
   
BBF
   
BTT
   
BNJ
   
BNY
Interest rate contracts
     
Net unrealized depreciation1
     $ (1,323,696 )        $ (531,417 )        $ (7,621,908 )        $ (760,934 )        $ (1,035,249 )  
1 Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The Effect of Derivative Financial Instruments in the Statements of Operations
Six Months Ended January 31, 2015


         Net Realized Loss From
    Net Change in Unrealized Appreciation/
Depreciation On

   
         BFZ
   
BBF
   
BTT
    BFZ
   
BBF
   
BTT
Interest rate contracts:
                                                                                                                        
Financial futures contracts
        $ (1,178,582 )        $ (149,572 )        $ (5,390,056 )        $ (1,400,507 )        $ (558,827 )        $ (7,669,413 )  
 
                                                                                                

         BNJ
   
BNY
   
   
BNJ
   
BNY
   
Interest rate contracts:
                                                                                                                        
Financial futures contracts
        $ (147,121 )        $ (411,206 )                      $ (791,771 )        $ (1,099,471 )                    

For the six months ended January 31, 2015, the average quarterly balances of outstanding derivative financial instruments were as follows:

          BFZ     BBF     BTT     BNJ     BNY
Financial Futures Contracts:
                                                                                                    
Average notional value of contracts — short
        $ 52,078,672         $ 16,192,258         $ 230,787,313         $ 23,173,711         $ 31,382,633   
 
60 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Notes to Financial Statements (continued) 

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.

With exchange-traded 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 broker’s 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 broker’s customers, potentially resulting in losses to the Trusts.

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 Trust’s 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 Trust’s 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 daily net assets are the average daily 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 Trust’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by Manager in the Statements of Operations. For the six months ended January 31, 2015, the amounts waived were as follows:





   
BFZ
   
BFO
   
BBF
   
BTT
   
BNJ
   
BNY
Amounts waived
        $ 231          $ 56          $ 26          $ 1,515         $ 591          $ 265    

The Manager, for BTT, voluntarily agreed to waive its investment advisory fee by 0.05% of the daily managed assets. The amount waived is included in fees waived by Manager in the Statements of Operations. For the six months ended January 31, 2015, the amount waived was $643,136. This waiver may be reduced or discontinued at any time without notice.

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.

6. Purchases and Sales:

For the six months ended January 31, 2015, purchases and sales of investments, excluding short-term securities were as follows:





   
BFZ
   
BFO
   
BBF
   
BTT
   
BNJ
   
BNY
Purchases
        $ 188,266,522         $ 10,172,405         $ 5,359,354         $ 180,658,322         $ 13,764,930         $ 10,855,117   
Sales
        $ 157,056,722         $ 10,727,743         $ 4,572,615         $ 203,978,302         $ 14,238,265         $ 11,602,489   

7. Income Tax Information:

It is each Trust’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of 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 BTT’s U.S. federal tax return remains open for the year ended July 31, 2014 and the period ended July 31, 2013. The statutes of limitations on each Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

SEMI-ANNUAL REPORT JANUARY 31, 2015 61
 
  
Notes to Financial Statements (continued) 

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.

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.

As of January 31, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:





   
BFZ
   
BFO
   
BBF
   
BTT
   
BNJ
   
BNY
 
                                                                                      
Tax cost
        $ 600,740,540         $ 81,600,891         $ 118,280,028         $ 2,391,197,864         $ 165,155,959         $ 263,992,796   
Gross unrealized appreciation
        $ 90,306,990         $ 6,066,077         $ 22,148,063         $ 117,046,393         $ 21,212,300         $ 30,647,891   
Gross unrealized depreciation
           (448,652 )           (1,275,331 )           (507,087 )           (13,805,104 )           (1,988,353 )           (791,323 )  
Net unrealized appreciation
        $ 89,858,338         $ 4,790,746         $ 21,640,976         $ 103,241,289         $ 19,223,947         $ 29,856,568   

8. Principal Risks:

BFZ, BFO, BNJ and BNY invest a substantial amount of their assets in issuers located in a single state or limited number of states. Investment percentages in specific states or U.S. territories are presented in the Schedules of investments.

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 Trusts.

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 derivatives. Changes in market interest rates or economic conditions, 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 January 31, 2015, BFZ invested a significant portion of its assets in securities in the County/City/Special District/School District and Utilities sectors. BFO invested a significant portion of its assets in securities in the County/City/Special District/School District sector. BBF invested a significant portion of its 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. BNY invested a significant portion of its assets in the County/City/Special District/School District and Education sectors. 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.

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 Volcker Rule. The Volcker Rule precludes banking entities and their affiliates from sponsoring existing TOB Trusts as such Trusts have been structured to date. In response to these restrictions, market participants have developed a new structure for TOB Trusts designed to ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. In such a structure, certain responsibilities

62 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Notes to Financial Statements (continued) 


that previously belonged to the sponsor bank will be performed by the Trusts. The Trusts may utilize the service providers in meeting these responsibilities. This structure remains untested. It is possible that regulators could take positions that could limit the market for such newly structured TOB Trust transactions or the Trust’s ability to hold Residuals. Under the new TOB Trust structure, the Trusts will have certain additional duties and responsibilities, which may give rise to certain additional risks including compliance, securities law and operational risks.

There can be no assurance that the Trusts can successfully enter into restructured TOB Trust transactions in order to refinance their existing Residual holdings prior to the compliance date for the Volcker Rule, which may require that the Trusts unwind existing TOB Trusts. There can be no assurance that alternative forms of leverage will be available to the Trusts and 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 Trust’s Common Shares is $0.001. Each Trust’s Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders.

At January 31, 2015, Common Shares of BTT owned by affiliates of the Manager were 5,571 shares.

Common Shares

For the six months ended January 31, 2015 and the year ended July 31, 2014, shares issued and outstanding remained constant for all Trusts.

Preferred Shares

Each Trust’s Preferred Shares rank prior to the Trust’s Common Shares as to the payment of dividends by the Trust and distribution of assets upon dissolution or liquidation of the Trust. The 1940 Act prohibits the declaration of any dividend on the Trust’s Common Shares or the repurchase of the Trust’s Common Shares if the Trust fails 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 Trust is 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 Trust fails 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 Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

VRDP Shares

BBF has 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 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.

As of January 31, 2015, the VRDP Shares outstanding were as follows:





   
Issue
Date

   
Shares
Issued

   
Aggregate
Principal

   
Maturity
Date

BBF
           9/15/11            342          $ 34,200,000            10/01/41   
SEMI-ANNUAL REPORT JANUARY 31, 2015 63
 
  
Notes to Financial Statements (continued) 

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 are shown as liquidity fees in the Statements of Operations.

The 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 change in liquidity provider resulted in a mandatory tender of BBF’s VRDP Shares on November 28, 2012, which were successfully remarketed by the remarketing agent. The new fee agreement was for a two year term and was scheduled to expire on December 4, 2014, unless renewed or terminated in advance. The new fee agreement was renewed and is scheduled to expire on June 4, 2015, unless renewed or terminated in advance.

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 BBF’s 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 BBF’s 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.

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 Moody’s and AAA from Fitch. Subsequent to the issuance of the VRDP Shares, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of January 31, 2015, the VRDP Shares were assigned a long term rating of Aa1 from Moody’s 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 Moody’s, 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 January 31, 2015, the short-term ratings of the liquidity provider and the VRDP Shares for BBF were P-1, F1 and A1 as rated by Moody’s, 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.

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 BBF’s VRDP Shares that were tendered for remarketing during the six months ended January 31, 2015 were successfully remarketed, with an annualized dividend rate of 0.13%.

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.

64 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Notes to Financial Statements (continued) 

As of January 31, 2015, the VMTP Shares outstanding were as follows:





   
Issue
Date

   
Shares
Issued

   
Aggregate
Principal

   
Term
Date

BFZ
           3/22/12            1,713         $ 171,300,000            3/20/16   
BNJ
           3/22/12            591          $ 59,100,000            3/20/16   
BNY
           3/22/12            945          $ 94,500,000            3/20/16   

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 Trust’s VMTP Shares will be extended or that a Trust’s 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 Trust’s 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 Trust’s 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 Moody’s 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 Moody’s and Fitch. At the date of issuance, the VMTP Shares were assigned long-term ratings of Aaa from Moody’s and AAA from Fitch. Subsequent to the issuance of the VMTP Shares, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of January 31, 2015, the VMTP Shares were assigned a long-term rating of Aa2 from Moody’s 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.

For the six months ended January 31, 2015, the average annualized dividend rates for the VMTP Shares were as follows:





   
BFZ
   
BNJ
   
BNY
Rate
           1.04 %           1.07 %           1.04 %  

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.

For the six months ended January 31, 2015, VMTP Shares issued and outstanding remained constant.

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.

As of January 31, 2015, the RVMTP Shares outstanding 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   
SEMI-ANNUAL REPORT JANUARY 31, 2015 65
 
  
Notes to Financial Statements (continued) 

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 BTT’s 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, BTT’s 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 Aa1 from Moody’s 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.

During the six months ended January 31, 2015, there were no RVMTP Shares that were tendered for remarketing.

For the six months ended January 31, 2015, the average annualized dividend rate for the BTT RVMTP Shares was 0.69%.

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.

For the six months ended January 31, 2015, RVMTP Shares issued and outstanding remained constant.

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 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

As of January 31, 2015, BFO did not have any AMPS outstanding.

66 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Notes to Financial Statements (concluded) 

During the six months ended January 31, 2015, 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             11/10/14            25          $ 625,000   

10. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through the date the financial statements were issued and the following items were noted:

Each Trust paid a net investment income dividend in the following amounts per share on March 2, 2015 to Common Shareholders of record on February 13, 2015:





   
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 March 2, 2015 payable to Common Shareholders of record on March 13, 2015, for the same amounts noted above.

The dividends declared on Preferred Shares for the period February 1, 2015 to February 28, 2015 were as follows:





   
Preferred
Shares

   
Series
Dividend
Declared

   
BFZ
           VMTP   Shares             W-7    
$134,036
  
BBF
           VRDP   Shares             W-7    
$    2,886
  
BTT
           VMTP   Shares             W-7    
$385,479
  
BNJ
           VMTP   Shares             W-7    
$  46,244
  
BNY
           VMTP   Shares             W-7    
$  81,943
  
SEMI-ANNUAL REPORT JANUARY 31, 2015 67
 
  
Officers and Trustees

Richard E. Cavanagh, Chairman of the Board and Trustee
Karen P. Robards, Vice Chairperson of the Board, Chairperson
      of the Audit Committee and Trustee
Michael J. Castellano, Trustee and Member of the Audit Committee
Frank J. Fabozzi, Trustee and Member of the Audit Committee
Kathleen F. Feldstein, Trustee
James T. Flynn, Trustee and Member of the Audit Committee
Jerrold B. Harris, Trustee
R. Glenn Hubbard, Trustee
W. Carl Kester, Trustee and Member of the Audit Committee
Barbara G. Novick, Trustee
John M. Perlowski, Trustee, President and Chief Executive Officer
Robert W. Crothers, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Charles Park, Chief Compliance Officer
Janey Ahn, Secretary

Effective September 5, 2014, Brendan Kyne resigned as a Vice President of the Trusts.

Effective December 31, 2014, Paul L. Audet and Henry Gabbay resigned as Trustees of the Trusts. Effective December 31, 2014, Barbara G. Novick and John M. Perlowski were appointed to serve as Trustees 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

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
68 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  
Additional Information

Dividend Policy

Each Trust’s 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 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 distributions 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 Trust’s offerings and the information contained in each Trust’s 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 BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.

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

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

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.

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 SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on how to access documents on the SEC’s 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 upon request and without charge (1) by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 882-0052 and (2) on the SEC’s website at http://www.sec.gov.

SEMI-ANNUAL REPORT JANUARY 31, 2015 69
 
  
Additional Information (concluded)

General Information (concluded)

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 check the website for updated performance information and the release of other material information about the Trusts. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

 

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 Trust’s 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.

 

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.

70 SEMI-ANNUAL REPORT JANUARY 31, 2015
 
  

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This report is intended for current holders. 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 short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

 

CEF-BK6-1/15-SAR
    
 
  
Item 2 – Code of Ethics – Not Applicable to this semi-annual report
Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 – Audit Committee of Listed Registrants – Not Applicable to this semi-annual report
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 – Not Applicable to this semi-annual report
Item 8 – Portfolio Managers of Closed-End Management Investment Companies
  (a) Not Applicable to this semi-annual report
  (b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 – Controls and Procedures
  (a) – The 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 – Not Applicable to this semi-annual report
  (a)(2) – Certifications – Attached hereto
  (a)(3) – Not Applicable
  (b) – Certifications – Attached hereto
2
 

 

  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: April 2, 2015  
     
  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: April 2, 2015  
     
  By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Investment Trust
     
  Date: April 2, 2015  

 

3