Note 1. Organization & Accounting Policies
BlackRock
Investment Quality Municipal Trust Inc. (“Investment Quality Municipal”),
BlackRock California Investment Quality Municipal Trust Inc. (“California
Investment Quality”), BlackRock New Jersey Investment Quality Municipal Trust
Inc. (“New Jersey Investment Quality”) and BlackRock New York Investment
Quality Municipal Trust Inc. (“New York Investment Quality”) were organized as
Maryland corporations. BlackRock Florida Investment Quality Municipal Trust
(“Florida Investment Quality”) was organized as a Massachusetts business trust.
Investment Quality Municipal, California Investment Quality, Florida Investment
Quality, New Jersey Investment Quality and New York Investment Quality are
herein referred to as the Investment Quality Trusts. BlackRock Municipal Income
Trust (“Municipal Income”), BlackRock California Municipal Income Trust
(“California Income”), BlackRock Florida Municipal Income Trust (“Florida
Income”), BlackRock New Jersey Municipal Income Trust (“New Jersey Income”),
BlackRock New York Municipal Income Trust (“New York Income”) (collectively the
“Income Trusts”) and BlackRock Long-Term Municipal Advantage Trust (“Long-Term
Municipal”) were organized as Delaware statutory trusts. The Investment Quality
Trusts, Income Trusts and Long-Term Municipal are referred to herein
collectively as the “Trusts”. Investment Quality Municipal and Municipal Income
are registered as diversified, closed-end management investment companies under
the Investment Company Act of 1940, as amended (the “1940 Act”). California
Investment Quality, California Income, Florida Investment Quality, Florida
Income, Long-Term Municipal, New Jersey Investment Quality, New Jersey Income,
New York Investment Quality and New York Income are registered as
non-diversified, closed-end management investment companies under the 1940 Act.
Long-Term
Municipal was organized on November 7, 2005 and had no capital transactions
until January 4, 2006 when the Trust sold 9,704 common shares for $139,010 to
BlackRock Funding, Inc. Investment operations for Long-Term Municipal commenced
on February 28, 2006. Long-Term Municipal incurred organization costs which
were deferred from the organization date until the commencement of operations.
The
following is a summary of significant accounting policies followed by the
Trusts.
Investments Valuation:
Municipal investments
(including commitments to purchase such investments on a “when-issued” basis)
are valued on the basis of prices provided by dealers or pricing services
selected under the supervision of each Trust’s Board of Trustees or Board of
Directors, as appropriate (“Trustees” or a “Board”). In determining the value
of a particular investment, pricing services may use certain information with
respect to transactions in such investments as appropriate, quotations from
bond dealers, market transactions in comparable investments and various
relationships between investments. Swap quotations are provided by dealers
selected under supervision of the Board. Short-term securities may be valued at
amortized cost. Investments in open-end investment companies are valued at net
asset value per share. Any investments or other assets for which such current
market quotations are not readily available are valued at fair value (“Fair
Value Assets”) as determined in good faith under procedures established by, and
under the general supervision and responsibility of, each Trust’s Board. The
investment advisor and/or sub-advisor will submit its recommendations regarding
the valuation and/or valuation methodologies for Fair Value Assets to a
valuation committee. The valuation committee may accept, modify or reject any
recommendations. The pricing of all Fair Value Assets shall be subsequently reported
to the Board.
When
determining the price for a Fair Value Asset, the investment advisor and/or
sub-advisor shall seek to determine the price that the Trust might reasonably
expect to receive from the current sale of that asset in an arm’slength transaction.
Fair value determinations shall be based upon all available factors that the
investment advisor and/or sub-advisor deems relevant.
In
September 2006, Statement of Financial Accounting Standards No. 157, “Fair
Value Measurements” (“FAS 157”), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS
157 and its impact on the Trusts’ financial statements, if any, has not been
determined.
In
addition, in February 2007, Statement of Financial Accounting Standards No.
159, “The Fair Value Option for Financial Assets and Financial Liabilities”
(“FAS 159”). was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also
elects to apply the provisions of FAS 157. FAS 159 permits entities to choose
to measure many financial instruments and certain other items at fair value
that are not currently required to be measured as fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is evaluating
the implications of FAS 159 and its impact on the Trust’s financial statements,
if any, had not been determined.
Forward Commitments, When-Issued and Delayed Delivery Securities:
The
Portfolios 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 Portfolios may purchase securities under such conditions only with
the intention of actually acquiring them, but may enter into a separate
agreement to sell the securities before the settlement date. Since the value of
securities purchased may fluctuate prior to settlement, the Portfolios may be
required to pay more at settlement than the security is worth. In addition, the
purchaser is not entitled to any of the interest earned prior to settlement.
Upon making a commitment to purchase a security on a when-issued forward
commitment basis, the Portfolios will hold liquid assets worth at least the
equivalent of the amount due.
Investment Transactions and Investment Income:
Investment
transactions are recorded on trade date. The cost of investments sold and the
related gain or loss is determined by use of the specific identification
method, generally first-in, first-out, for both financial reporting and federal
income tax purposes. Dividend income is recorded on the ex-dividend dates. Each
Trust
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54
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ANNUAL REPORT
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OCTOBER 31, 2007
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Notes
to Financial Statements (continued)
|
also
records interest income on an accrual basis and amortizes premium and/or accretes
discount on securities purchased using the interest method.
Financial Futures Contracts:
A futures contract is an
agreement between two parties to buy and sell a financial instrument for a set
price on a future date. Initial margin deposits are made upon entering into
futures contracts and can be either cash or securities. During the period the
futures contract is open, changes in the value of the contract are recognized
as unrealized gains or losses by “marking-to-market” on a daily basis to
reflect the market value of the contract at the end of each day’s trading.
Variation margin payments are made or received, depending upon whether
unrealized gains or losses are incurred. When the contract is closed, the Trust
records a realized gain or loss equal to the difference between the proceeds
from (or cost of) the closing transaction and the Trust’s basis in the
contract.
Financial
futures contracts, when used by the Trusts, help in maintaining a targeted
duration. Futures contracts can be sold to effectively shorten an otherwise
longer duration portfolio. In the same sense, futures contracts can be
purchased to lengthen a portfolio that is shorter than its duration target.
Thus, by buying or selling futures contracts, the Trusts may attempt to manage
the duration of positions so that changes in interest rates do not change the
duration of the portfolio unexpectedly.
Forward Starting Swaps:
Forward starting swaps are
an agreement for an interest rate swap asset or liability to be created or sold
in the future. Interest rate swaps are an agreement in which one party pays a
floating rate of interest on a notional principal amount and receives a fixed
rate of interest on the same notional principal amount for a specified period
of time. Alternatively, a party may pay a fixed rate and receive a floating
rate. The Trusts close each forward starting swap before the accrual date
specified in the agreement and therefore never enter into the interest rate
swap underlying each forward starting swap.
During the
term of the swap, changes in the value of the swap are recognized as unrealized
gains or losses by “marking-to-market” daily based upon quotations from market
makers to reflect the market value of the swap. When the swap is terminated, a
Trust will record a realized gain or loss equal to the difference between the
proceeds from (or cost of) the closing transaction and the Trust’s basis in the
contract, if any.
Entering
into these agreements involves, to varying degrees, elements of credit and
market risk in excess of the amounts recognized on the Statements of Assets and
Liabilities. Such risks involve the possibility that there will be no liquid
market for these agreements, that the counter-party to the agreement may
default on its obligation to perform and that there may be unfavorable changes
in the fluctuation of interest and/or exchange rates. However, the investment
advisor of the Trusts monitor swaps and do not anticipate non-performance by
any counterparty.
Segregation:
In cases in which the 1940 Act, and the interpretive
positions of the Securities and Exchange Commission (the “Commission”) require
that each Trust segregate assets in connection with certain investments (e.g.,
when-issued securities or forward starting swaps), each Trust will, consistent
with certain interpretive letters issued by the Commission, designate on its
books and records cash or other liquid securities having a market value at
least equal to the amount that would otherwise be required to be physically
segregated.
Federal Income Taxes:
It is each Trust’s intention
to continue to be treated as a regulated investment company under Subchapter M
of the Internal Revenue Code and to distribute sufficient net income and net
realized capital gains, if any, to shareholders. Therefore, no federal income
tax provisions have been recorded.
In July
2006, the Financial Accounting Standards Board issued Interpretation No. 48
(“FIN 48”) “Accounting for Uncertainty in Income Taxes — and interpretation of
FAS Statement No. 109.” FIN 48 prescribes the minimum recognition threshold a
tax position must meet in connection with accounting for uncertainties in
income tax positions taken or expected to be taken by an entity, including
mutual funds, before being measured and recognized in the financial statements.
Adoption of FIN 48 is required for the last net asset value calculation in the
first required financial statement reporting period for fiscal years beginning
after December 15, 2006. The impact on each of the Trust’s financial
statements, if any, is currently being assessed.
Dividends and Distributions:
Each Trust declares and pays
dividends and distributions to common shareholders monthly from net investment
income, net realized short-term capital gains and other sources, if necessary.
Net long-term capital gains, if any, in excess of loss carryforwards may be
distributed in accordance with the 1940 Act. Dividends and distributions are
recorded on the ex-dividend date. Income distributions and capital gain
distributions are determined in accordance with income tax regulations which
may differ from accounting principles generally accepted in the United States
of America. Dividends and distributions to preferred shareholders are accrued
and determined as described in Note 6.
Estimates:
The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from these estimates and such differences may be material.
Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan:
Under the deferred compensation plan approved by each
Trust’s Board, non-interested Trustees (“Independent Trustees”) defer a portion
of their annual complex-wide compensation. Deferred amounts earn an approximate
return as though equivalent dollar amounts had been invested in common shares
of other BlackRock closed-end trusts selected by the Independent Trustees.
These amounts are shown on the Statement of Assets and Liabilities as
“Investments in Affiliates.” This has the same economic effect for the
Independent Trustees as if the Independent Trustees had invested the deferred
amounts in such Trusts.
The
deferred compensation plan is not funded and obligations thereunder represent
general unsecured claims against the general assets of the Trust.
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ANNUAL REPORT
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OCTOBER 31, 2007
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55
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Notes
to Financial Statements (continued)
|
Each Trust
may, however, elect to invest in common shares of those Trusts selected by the
Independent Trustees in order to match its deferred compensation obligations.
Other:
Expenses that are directly related to one of the
Trusts are charged directly to that Trust. Other operating expenses are
generally pro-rated to the Trusts on the basis of relative net assets of all
the BlackRock Closed-End Funds.
Note 2. Municipal Bonds Held in Trust
Long-Term
Municipal invests in highly leveraged residual certificates (“TOB Residuals”)
issued by tender option bond trusts (“TOBs”). A TOB is established by a third
party sponsor forming a special purpose entity, into which Long-Term Municipal,
or an agent on behalf of Long-Term Municipal, transfers municipal securities. A
TOB typically issues two classes of beneficial interests: short-term floating
rate certificates, which are sold to third party investors, and residual
certificates, which are generally issued to Long-Term Municipal. The transfer
of the municipal securities to a TOB does not qualify for sale treatment under
Statement of Financial Accounting Standards No. 140, “Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities,”
therefore the municipal securities deposited into a TOB are presented in
Long-Term Municipal’s schedule of investments and the proceeds from the
transaction are reported as a liability for trust certificates of Long-Term
Municipal. Similarly, proceeds from residual certificates issued to affiliates,
if any, from the transaction are included in the liability for trust
certificates. Interest income from the underlying security is recorded by
Long-Term Municipal on an accrual basis. Interest expense incurred on the
secured borrowing and other expenses relating to remarketing, administration
and trustee services to a TOB are reported as expenses of Long-Term Municipal.
The floating rate certificates have interest rates that generally reset weekly
and their holders have the option to tender certificates to the TOB for
redemption at par at each reset date. The residual interests held by Long-Term
Municipal include the right of Long-Term Municipal (1) to cause the holders of
a proportional share of floating rate certificates to tender their certificates
at par, and (2) to transfer a corresponding share of the municipal securities
from the TOB to Long-Term Municipal. The proceeds received from the transaction
are used by Long-Term Municipal to purchase additional municipal bonds or other
investments permitted by Long-Term Municipal’s investment policies. At October
31, 2007, the aggregate value of the underlying municipal securities
transferred to TOBs was $177,087,696, the related liability for the trust
certificates was $177,527,503, and the range of interest rates was 4.07% to
3.39%.
Financial
transactions executed through TOBs generally will under perform the market for
fixed rate municipal bonds in a rising interest rate environment, but tend to
outperform the market for fixed rate bonds when interest rates decline or
remain relatively stable. Should short-term interest rates rise, Long-Term
Municipal’s investment in TOB Residuals likely will adversely affect Long-Term
Municipal’s net investment income and dividends to shareholders. Fluctuations
in the market value of municipal securities deposited into the TOB may
adversely affect Long-Term Municipal’s net asset value per share. Long-Term Municipal
invests in highly leveraged TOB Residuals and consequently may lose money in
excess of the amount of its investment. Long-Term Municipal invests in residual
certificates for the purpose of using economic leverage as a more flexible
alternative to the issuance of preferred shares.
Note 3. Agreements and Other Transactions with Affiliates and Related
Parties
Each Trust
has an Investment Management Agreement with BlackRock Advisors, LLC (the
“Advisor”), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial
Management, Inc. (“BFM”), a wholly owned subsidiary of BlackRock, Inc., serves
as sub-advisor to each Trust. Merrill Lynch & Co., Inc. and The PNC
Financial Services Group, Inc. are principal owners of BlackRock, Inc. The
investment management agreement for each Income Trust and Long-Term Municipal
covers both investment advisory and administration services. Each Investment
Quality Trust has an Administration Agreement with the Advisor.
The Trust’s
investment advisory fee paid to the Advisor is computed weekly and payable
monthly based on an annual rate, 0.35% for the Investment Quality Trusts and
0.60% for the Income Trusts, of the Trust’s average weekly managed assets.
“Managed assets” means the total assets of a Trust (including any assets attributable
to any preferred shares that may be outstanding) minus the sum of accrued
liabilities (other than debt representing financial leverage). The Advisor has
voluntarily agreed to waive a portion of the investment advisory fee or other
expenses on the Income Trusts as a percentage of managed assets as follows:
0.25% for the first five years of each of the Trust’s operations from 2001
through July 31, 2006, 0.20% through July 31, 2007, 0.15% through July 31,
2008, 0.10% through July 31, 2009 and 0.05% through July 31, 2010.
Long-Term
Municipal’s investment advisory fee paid to the Advisor is computed weekly and
payable monthly based on an annual rate equal to 1.00% of the average weekly
net assets. ‘‘Net Assets’’ means the total assets of the Trust minus the sum of
accrued liabilities. The Advisor has voluntarily agreed to waive a portion of
the investment advisory or other expenses of Long-Term Municipal in the amount
of 0.40% of the average weekly value of the Long-Term Municipal’s Net Assets
for the first five years of the Trust’s operations from 2006 through 2011 and
for declining amounts for the following three years, 0.30% in 2012, 0.20% in
2013 and 0.10% in 2014.
The
administration fee paid to the Advisor is computed weekly and payable monthly
based on an annual rate of 0.15% for the Municipal Investment Quality Trust and
0.10% for the California Investment Quality, Florida Investment Quality, New
Jersey Investment Quality and New York Investment Quality of the Trusts’
average weekly managed assets.
The Advisor
has agreed to reimburse its advisory fees by the amount of investment advisory
fees each Trust pays to the Advisor indirectly through its investments in
affiliated money market funds, which is shown on the Statements of Operations
as “fees reimbursed by Advisor.”
The Advisor
pays BFM fees for its sub-advisory services.
Pursuant to
the agreements, the Advisor provides continuous supervision of the investment
portfolio and pays the compensation of officers of each Trust who are
affiliated persons of the Advisor, as well as occupancy and certain clerical
and accounting costs of each Trust. Each Trust bears all other costs and
expenses, which include reimbursements to the Advisor for costs of employees
that provide pricing and secondary market support to each Trust.
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56
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ANNUAL REPORT
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OCTOBER 31, 2007
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|
Notes
to Financial Statements (continued)
|
These
expenses are generally pro-rated to the Trusts on the basis of relative net
assets of all the BlackRock Closed-End Funds. For the year ended October 31,
2007, the Trusts reimbursed the Advisor the following amounts, which are
included in miscellaneous expenses in the Statement of Operations:
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Trust
|
|
Amount
|
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|
|
|
|
|
Investment
Quality Municipal
|
|
$
|
11,377
|
|
|
Municipal
Income
|
|
|
25,403
|
|
|
Long-Term
Municipal
|
|
|
4,520
|
|
|
California
Investment Quality
|
|
|
653
|
|
|
California
Income
|
|
|
9,666
|
|
|
Florida
Investment Quality
|
|
|
762
|
|
|
Florida
Income
|
|
|
4,435
|
|
|
New Jersey
Investment Quality
|
|
|
660
|
|
|
New Jersey
Income
|
|
|
4,936
|
|
|
New York
Investment Quality
|
|
|
892
|
|
|
New York
Income
|
|
|
8,321
|
|
|
|
|
|
|
|
Pursuant to
the terms of their custody agreement, each Trust received earnings credits from
its custodian for positive cash balances maintained, which are used to offset
custody fees. These credits are shown on the Statements of Operations as “fees
paid indirectly”.
Investments
in companies considered to be an affiliate of the Trusts, for purposes of
Section 2(a)(3) of the 1940 Act, were as follows:
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Trust
|
|
Portfolio Company
|
|
Net
Purchases
(000)
|
|
Dividend
Income
|
|
|
|
|
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|
|
|
|
|
|
Investment Quality
|
|
|
|
|
|
|
|
|
|
Municipal
|
|
Merrill Lynch Institutional Tax-Exempt Fund
|
|
5,500
|
|
$
|
111,947
|
|
|
Municipal Income
|
|
Merrill Lynch Institutional Tax-Exempt Fund
|
|
2,600
|
|
|
134,765
|
|
|
Long-Term Municipal
|
|
Merrill Lynch Institutional Tax-Exempt Fund
|
|
2,600
|
|
|
79,642
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|
|
California
|
|
|
|
|
|
|
|
|
|
Investment Quality
|
|
CMA California Mun. Money Fund
|
|
418
|
|
|
17,741
|
|
|
California Income
|
|
CMA California Mun. Money Fund
|
|
6,944
|
|
|
146,193
|
|
|
Florida Investment
|
|
|
|
|
|
|
|
|
|
Quality
|
|
CMA Florida Mun. Money Fund
|
|
211
|
|
|
10,580
|
|
|
Florida Income
|
|
CMA Florida Mun. Money Fund
|
|
1,763
|
|
|
63,692
|
|
|
New Jersey
|
|
|
|
|
|
|
|
|
|
Investment Quality
|
|
CMA New Jersey Mun. Money Fund
|
|
4
|
|
|
4,441
|
|
|
New Jersey Income
|
|
CMA New Jersey Mun. Money Fund
|
|
223
|
|
|
23,253
|
|
|
New York
|
|
|
|
|
|
|
|
|
|
Investment Quality
|
|
CMA New York Mun. Money Fund
|
|
107
|
|
|
7,516
|
|
|
New York Income
|
|
CMA New York Mun. Money Fund
|
|
47
|
|
|
47,163
|
|
|
|
|
|
|
|
|
|
|
|
During the
year ended October 31, 2007, Merrill Lynch & Co., Inc., through their
affiliated broker dealer, Merrill Lynch, Pierce, Fenner & Smith, Inc.,
earned commissions on transactions of securities as follows:
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Trust
|
|
Commission
Amount
|
|
|
|
|
|
|
|
Long-Term Municipal
|
|
$
|
1,320
|
|
|
California Investment Quality
|
|
|
66
|
|
|
|
|
|
|
|
Certain officers
and/or directors of the Trusts are officers and/or directors of BlackRock,
Inc., or its affiliates.
Note 4. Portfolio Securities
Purchases
and sales of investment securities, other than short-term investments and U.S.
government securities, for the year ended October 31, 2007, were as follows:
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|
Trust
|
|
Purchases
|
|
Sales
|
|
|
|
|
|
|
|
|
|
Investment Quality Municipal
|
|
$
|
77,168,375
|
|
$
|
65,835,018
|
|
|
Municipal Income
|
|
|
191,700,172
|
|
|
167,846,528
|
|
|
Long-Term Municipal
|
|
|
142,851,650
|
|
|
148,116,196
|
|
|
California Investment Quality
|
|
|
11,104,253
|
|
|
7,823,079
|
|
|
California Income
|
|
|
92,386,284
|
|
|
96,318,080
|
|
|
Florida Investment Quality
|
|
|
13,548,302
|
|
|
9,411,023
|
|
|
Florida Income
|
|
|
43,263,431
|
|
|
38,130,102
|
|
|
New Jersey Investment Quality
|
|
|
9,961,956
|
|
|
6,369,742
|
|
|
New Jersey Income
|
|
|
42,569,982
|
|
|
43,047,179
|
|
|
New York Investment Quality
|
|
|
10,444,017
|
|
|
10,461,845
|
|
|
New York Income
|
|
|
71,420,649
|
|
|
70,232,607
|
|
|
|
|
|
|
|
|
|
|
Details of
open forward starting swap agreements at October 31, 2007 were as follows:
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Trust
|
|
Notional
Amount
|
|
Fixed
Rate
(a)
|
|
Counter
Party
|
|
Effective
Date
|
|
Termination
Date
|
|
Unrealized
Appreciation
(Depreciation)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Quality
|
|
$
|
31,250,000
|
|
|
3.977
|
%
|
|
JP Morgan
|
|
01/04/08
|
|
01/04/23
|
|
$
|
(343,531
|
)
|
|
Municipal
|
|
|
8,500,000
|
|
|
3.861
|
|
|
JP Morgan
|
|
01/31/08
|
|
01/31/23
|
|
|
13,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(329,940
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
|
|
$
|
26,800,000
|
|
|
3.977
|
%
|
|
JP Morgan
|
|
01/04/08
|
|
01/04/23
|
|
$
|
(294,613
|
)
|
|
Income
|
|
|
17,160,000
|
|
|
3.971
|
|
|
CitiBank
|
|
12/21/07
|
|
12/21/27
|
|
|
498
|
|
|
|
|
|
32,800,000
|
|
|
3.861
|
|
|
JP Morgan
|
|
01/31/08
|
|
01/31/23
|
|
|
52,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(241,668
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term
|
|
$
|
10,100,000
|
|
|
3.976
|
%
|
|
JP Morgan
|
|
01/04/08
|
|
01/04/23
|
|
$
|
(111,029
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Florida
|
|
$
|
1,750,000
|
|
|
3.984
|
%
|
|
JP Morgan
|
|
11/30/07
|
|
11/30/22
|
|
$
|
(21,886
|
)
|
|
Investment
|
|
$
|
2,000,000
|
|
|
3.855
|
%
|
|
Lehman
|
|
12/21/07
|
|
12/21/22
|
|
|
2,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(19,258
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
|
|
$
|
1,100,000
|
|
|
4.065
|
%
|
|
CitiBank
|
|
12/20/07
|
|
12/20/37
|
|
$
|
(729
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York
|
|
$
|
6,000,000
|
|
|
4.026
|
%
|
|
CitiBank
|
|
12/21/07
|
|
12/21/32
|
|
$
|
(2,826
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Trust pays fixed interest rate
and receives 1-week BMA Municipal Swap Index floating interest rate beginning
on the effective date.
|
BMA - Bond
Market Association.
Note 5. Income Tax Information
No
provision is made for U.S. federal taxes as it is the portfolios intention to
continue to qualify for and elect the tax treatment applicable to regulated
investment companies under Subchapter M of the Internal Revenue Code of 1986,
as amended, and to make the requisite distributions to its shareholders which
will be sufficient to relieve it from federal income and excise taxes.
Reclassification of Capital Accounts:
U.S. generally accepted
accounting principles require that certain components of net assets be adjusted
to reflect permanent differences between financial and tax reporting. Accordingly,
the table below summarizes the amounts reclassified per Trust during the
current year between undistributed (distributions in excess of) net investment
income and accumulated net realized gain (loss) as a result of permanent
differences attributable to amortization methods on fixed income
|
|
|
|
|
|
|
|
|
|
|
|
ANNUAL REPORT
|
OCTOBER 31, 2007
|
57
|
|
|
|
|
|
|
Notes to Financial Statements (continued)
|
securities. These
reclassifications have no effect on net assets or net asset values per share.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust
|
|
Undistributed
Net Investment
Income/Distributions
in Excess of Net
Investment Income
|
|
Accumulated
Gain/(Loss)
|
|
|
|
|
Investment Quality
Municipal
|
|
|
$
|
(24,585
|
)
|
|
|
$
|
24,585
|
|
|
|
Municipal Income
|
|
|
|
(9
|
)
|
|
|
|
9
|
|
|
|
Long-Term Municipal
|
|
|
|
1,108
|
|
|
|
|
(1,108
|
)
|
|
|
California Investment
Quality
|
|
|
|
(2,707
|
)
|
|
|
|
2,707
|
|
|
|
California Income
|
|
|
|
(21
|
)
|
|
|
|
21
|
|
|
|
Florida Income
|
|
|
|
(34
|
)
|
|
|
|
34
|
|
|
|
New Jersey Investment
Quality
|
|
|
|
(132
|
)
|
|
|
|
132
|
|
|
|
New Jersey Income
|
|
|
|
(15
|
)
|
|
|
|
15
|
|
|
|
New York Investment Quality
|
|
|
|
(7,444
|
)
|
|
|
|
7,444
|
|
|
|
New York Income
|
|
|
|
(841
|
)
|
|
|
|
841
|
|
|
The tax character of
distributions paid during the years ended October 31, 2007 and October 31, 2006
were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended October 31, 2007
|
|
|
|
|
Distributions
Paid From:
|
|
Tax-exempt
Income
|
|
Ordinary
Income
|
|
Long-term
Capital
Gains
|
|
Total
Distributions
|
|
|
|
|
Investment Municipal
Quality
|
|
$
|
22,514,181
|
|
$
|
—
|
|
$
|
—
|
|
$
|
22,514,181
|
|
|
Municipal Income
|
|
|
56,847,893
|
|
|
75,424
|
|
|
—
|
|
|
56,923,317
|
|
|
Long-Term Municipal
|
|
|
9,535,364
|
|
|
—
|
|
|
—
|
|
|
9,535,364
|
|
|
California Investment
Quality
|
|
|
843,196
|
|
|
—
|
|
|
68,629
|
|
|
911,825
|
|
|
California Income
|
|
|
18,339,053
|
|
|
—
|
|
|
—
|
|
|
18,339,053
|
|
|
Florida Investment Quality
|
|
|
967,562
|
|
|
—
|
|
|
96,447
|
|
|
1,064,009
|
|
|
Florida Income
|
|
|
8,128,970
|
|
|
—
|
|
|
—
|
|
|
8,128,970
|
|
|
New Jersey Investment
Quality
|
|
|
1,067,344
|
|
|
—
|
|
|
55,732
|
|
|
1,123,076
|
|
|
New Jersey Income
|
|
|
9,372,085
|
|
|
—
|
|
|
—
|
|
|
9,372,085
|
|
|
New York Investment Quality
|
|
|
1,446,723
|
|
|
—
|
|
|
26,367
|
|
|
1,473,090
|
|
|
New York Income
|
|
|
14,996,361
|
|
|
—
|
|
|
—
|
|
|
14,996,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended October 31, 2006
|
|
|
|
|
Distributions
Paid From:
|
|
Tax-exempt
Income
|
|
Ordinary
Income
|
|
Long-term
Capital
Gains
|
|
Total
Distributions
|
|
|
|
|
Investment Municipal
Quality
|
|
$
|
22,393,077
|
|
$
|
—
|
|
$
|
—
|
|
$
|
22,393,077
|
|
|
Municipal Income
|
|
|
55,387,719
|
|
|
—
|
|
|
—
|
|
|
55,387,719
|
|
|
Long-Term Municipal
|
|
|
6,393,277
|
|
|
—
|
|
|
—
|
|
|
6,393,277
|
|
|
California Investment
Quality
|
|
|
1,069,125
|
|
|
—
|
|
|
—
|
|
|
1,069,125
|
|
|
California Income
|
|
|
17,652,513
|
|
|
—
|
|
|
—
|
|
|
17,652,513
|
|
|
Florida Investment Quality
|
|
|
1,193,991
|
|
|
2,626
|
|
|
339,437
|
|
|
1,536,054
|
|
|
Florida Income
|
|
|
7,830,368
|
|
|
—
|
|
|
—
|
|
|
7,830,368
|
|
|
New Jersey Investment
Quality
|
|
|
1,051,755
|
|
|
—
|
|
|
152,406
|
|
|
1,204,161
|
|
|
New Jersey Income
|
|
|
9,057,294
|
|
|
—
|
|
|
—
|
|
|
9,057,294
|
|
|
New York Investment Quality
|
|
|
1,423,375
|
|
|
—
|
|
|
129,549
|
|
|
1,552,924
|
|
|
New York Income
|
|
|
14,642,419
|
|
|
—
|
|
|
—
|
|
|
14,642,419
|
|
As of October 31, 2007, the
components of distributable earnings on a tax basis were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust
|
|
Undistributed
Tax-exempt
Income
|
|
Undistributed
Ordinary
Income
|
|
Undistributed
Long-term
Gain/(Loss)
|
|
Unrealized
Gain/(Loss)
Net
|
|
|
|
|
Investment Municipal
Quality
|
|
$
|
2,966,144
|
|
$
|
—
|
|
$
|
(779,990
|
)
|
$
|
11,805,105
|
|
|
Municipal Income
|
|
|
5,342,158
|
|
|
—
|
|
|
(32,878,847
|
)
|
|
42,784,268
|
|
|
Long-Term Municipal
|
|
|
—
|
|
|
—
|
|
|
(652,595
|
)
|
|
(6,519,481
|
)
|
|
California Investment
Quality
|
|
|
12,064
|
|
|
—
|
|
|
(5,173
|
)
|
|
546,481
|
|
|
California Income
|
|
|
2,865,807
|
|
|
—
|
|
|
(6,301,496
|
)
|
|
15,040,257
|
|
|
Florida Investment Quality
|
|
|
16,357
|
|
|
—
|
|
|
(137,267
|
)
|
|
242,511
|
|
|
Florida Income
|
|
|
1,250,295
|
|
|
—
|
|
|
(1,222,992
|
)
|
|
5,745,016
|
|
|
New Jersey Investment
Quality
|
|
|
185,383
|
|
|
—
|
|
|
(55,066
|
)
|
|
444,705
|
|
|
New Jersey Income
|
|
|
1,764,166
|
|
|
—
|
|
|
(1,225,312
|
)
|
|
9,007,803
|
|
|
New York Investment Quality
|
|
|
161,923
|
|
|
14,189
|
|
|
167,624
|
|
|
813,667
|
|
|
New York Income
|
|
|
3,714,675
|
|
|
—
|
|
|
(729,073
|
)
|
|
8,530,692
|
|
The difference between
book-basis and tax-basis unrealized gains/losses is attributable primarily to
amortization methods of premiums and discounts on fixed income securities, the
tax deferral of losses on wash sales, the timing of recognition of income from
partnership investments, the difference between the book and tax treatment of
residual interests in tender option bonds and other temporary differences.
For federal income tax
purposes, the following Trusts had capital loss carryforwards at October 31,
2007, the Trust’s last tax year-end except for New York Income which had its
last tax year-end at July 31, 2007. These amounts may be used to offset future
realized capital gains, if any:
|
|
|
|
|
|
|
|
|
|
Trust
|
|
Capital
Loss
Carryforward
Amount
|
|
Expires
|
|
|
|
|
Investment Quality
Municipal
|
|
$
|
779,990
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Income
|
|
$
|
11,431,206
|
|
|
2011
|
|
|
|
|
|
15,767,388
|
|
|
2012
|
|
|
|
|
|
4,991,782
|
|
|
2014
|
|
|
|
|
|
688,471
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
32,878,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Municipal
|
|
$
|
701,315
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
California Investment
Quality
|
|
$
|
5,173
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
California Income
|
|
$
|
7,607
|
|
|
2011
|
|
|
|
|
|
4,943,577
|
|
|
2012
|
|
|
|
|
|
1,350,312
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,301,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Florida Investment Quality
|
|
$
|
137,267
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Florida Income
|
|
$
|
796,318
|
|
|
2012
|
|
|
|
|
|
426,674
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,222,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey Investment
Quality
|
|
$
|
55,066
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey Income
|
|
$
|
610,058
|
|
|
2012
|
|
|
|
|
|
615,254
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,225,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York Income
|
|
$
|
197,144
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Note 6. Capital
There are 200 million of
$0.01 par value common shares authorized for each of the Investment Quality
Trusts. There are an unlimited number of $0.001 par value common shares
authorized for the Income Trusts and Long-Term Municipal. Each Trust may
classify or reclassify any unissued common shares into one or more series of
Auction Market Preferred Shares (“preferred shares”). At October 31, 2007, the
shares owned by an affiliate of the Advisor of Long-Term Municipal were 9,704.
|
|
|
|
|
|
|
|
|
|
|
58
|
ANNUAL REPORT
|
OCTOBER
31, 2007
|
|
|
|
|
|
|
|
Notes to Financial Statements (continued)
|
During the years ended
October 31, 2007 and 2006, the following Trusts issued additional shares under
their respective dividend reinvestment plan:
|
|
|
|
|
|
|
|
|
|
|
|
Trust
|
|
October 31, 2007
|
|
October
31, 2006
|
|
|
|
|
Investment Quality
Municipal
|
|
|
83,554
|
|
|
—
|
|
|
Municipal Income
|
|
|
197,269
|
|
|
183,235
|
|
|
Long-Term Municipal
|
|
|
36,210
|
|
|
34,238
|
|
|
California Income
|
|
|
61,958
|
|
|
45,581
|
|
|
Florida Income
|
|
|
16,959
|
|
|
14,192
|
|
|
New Jersey Investment
Quality
|
|
|
1,972
|
|
|
—
|
|
|
New Jersey Income
|
|
|
39,482
|
|
|
42,417
|
|
|
New York Investment Quality
|
|
|
1,724
|
|
|
—
|
|
|
New York Income
|
|
|
56,191
|
|
|
52,616
|
|
|
|
Long-Term Municipal, which
commenced operation on February 28, 2006, issued 13,049,704 common shares under
the initial public offering. An additional 225,000 shares were issued by the
underwriters’ exercising their over-allotment option. Offering costs incurred
in connection with the offering of common shares have been charged against the
proceeds from the initial common share offering in the amount of $381,825.
As of October 31, 2007, each
Trust had the following series of preferred shares outstanding as listed in the
table below. The preferred shares have a liquidation value of $25,000 per share
plus any accumulated unpaid dividends.
|
|
|
|
|
|
|
|
|
|
|
|
Trust
|
|
Series
|
|
Shares
|
|
|
|
|
Investment Quality
Municipal
|
|
|
T7
|
|
|
3,262
|
|
|
|
|
|
T28
|
|
|
2,600
|
|
|
Municipal Income
|
|
|
M7
|
|
|
3,001
|
|
|
|
|
|
T7
|
|
|
3,001
|
|
|
|
|
|
W7
|
|
|
3,001
|
|
|
|
|
|
R7
|
|
|
3,001
|
|
|
|
|
|
F7
|
|
|
3,001
|
|
|
California Investment
Quality
|
|
|
W7
|
|
|
300
|
|
|
California Income
|
|
|
T7
|
|
|
2,639
|
|
|
|
|
|
R7
|
|
|
2,639
|
|
|
Florida Investment Quality
|
|
|
R7
|
|
|
340
|
|
|
Florida Income
|
|
|
T7
|
|
|
2,302
|
|
|
New Jersey Investment
Quality
|
|
|
T7
|
|
|
300
|
|
|
New Jersey Income
|
|
|
R7
|
|
|
2,552
|
|
|
New York Investment Quality
|
|
|
F7
|
|
|
392
|
|
|
New York Income
|
|
|
W7
|
|
|
2,195
|
|
|
|
|
|
F7
|
|
|
2,195
|
|
|
|
Dividends on seven-day
preferred shares are cumulative at a rate which is reset every seven days based
on the results of an auction. Dividends on 28-day preferred shares are
cumulative at a rate which resets every 28 days based on the results of an
auction. The dividend ranges and average on the preferred shares for each of
the Trusts for the year ended October 31, 2007 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust
|
|
Series
|
|
Low
|
|
High
|
|
Average
|
|
|
|
|
Investment Quality
Municipal
|
|
|
T7
|
|
|
3.13
|
%
|
|
4.00
|
%
|
|
3.59
|
%
|
|
|
|
|
T28
|
|
|
3.35
|
|
|
4.30
|
|
|
3.71
|
|
|
Municipal Income
|
|
|
M7
|
|
|
3.10
|
|
|
4.05
|
|
|
3.63
|
|
|
|
|
|
T7
|
|
|
3.10
|
|
|
4.25
|
|
|
3.63
|
|
|
|
|
|
W7
|
|
|
3.16
|
|
|
4.02
|
|
|
3.60
|
|
|
|
|
|
R7
|
|
|
3.00
|
|
|
4.05
|
|
|
3.60
|
|
|
|
|
|
F7
|
|
|
3.10
|
|
|
4.00
|
|
|
3.58
|
|
|
California Investment
Quality
|
|
|
W7
|
|
|
2.90
|
|
|
5.10
|
|
|
3.42
|
|
|
California Income
|
|
|
T7
|
|
|
2.50
|
|
|
4.00
|
|
|
3.53
|
|
|
|
|
|
R7
|
|
|
2.90
|
|
|
4.00
|
|
|
3.43
|
|
|
Florida Investment Quality
|
|
|
R7
|
|
|
3.50
|
|
|
5.40
|
|
|
3.95
|
|
|
Florida Income
|
|
|
T7
|
|
|
3.30
|
|
|
4.10
|
|
|
3.64
|
|
|
New Jersey Investment
Quality
|
|
|
T7
|
|
|
2.00
|
|
|
5.11
|
|
|
3.39
|
|
|
New Jersey Income
|
|
|
R7
|
|
|
2.50
|
|
|
4.10
|
|
|
3.49
|
|
|
New York Investment Quality
|
|
|
F7
|
|
|
2.00
|
|
|
4.10
|
|
|
3.48
|
|
|
New York Income
|
|
|
W7
|
|
|
2.85
|
|
|
4.00
|
|
|
3.29
|
|
|
|
|
|
F7
|
|
|
2.89
|
|
|
4.00
|
|
|
3.27
|
|
|
|
A Trust may not declare
dividends or make other distributions on common shares or purchase any such
shares if, at the time of the declaration, distribution or purchase, asset
coverage with respect to the outstanding preferred shares would be less than
200%.
The preferred shares are
redeemable at the option of each Trust, in whole or in part, on any dividend
payment date at $25,000 per share plus any accumulated unpaid dividends whether
or not declared. The preferred shares are also subject to mandatory redemption
at $25,000 per share plus any accumulated or unpaid dividends, whether or not
declared, if certain requirements relating to the composition of the assets and
liabilities of a Trust, as set forth in each Trust’s Declaration of
Trust/Articles Supplementary, are not satisfied.
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 as a single class.
However, 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 subclassification as a closed-end investment company or change its
fundamental investment restrictions and (c) change its business so as to cease
to be an investment company.
|
|
|
|
|
|
|
|
|
|
|
|
ANNUAL
REPORT
|
OCTOBER 31, 2007
|
59
|
|
|
|
|
|
|
Notes to Financial Statements (concluded)
|
Note 7. Concentration Risk
The Trusts concentrate their
investments in securities issued by state agencies, other governmental entities
and U.S. Territories. The Trusts are more susceptible to adverse financial,
social, environmental, economic, regulatory and political factors that may
affect these states agencies, other governmental entities and U.S. Territories,
which could seriously affect the ability of these states and their municipal
subdivisions to meet continuing obligations for principal and interest payments
and therefore could impact the value of the Trusts’ investments and net asset
value per share, than if the Trusts were not concentrated in securities issued
by state agencies, other governmental entities and U.S. Territories.
Many municipalities insure
repayment for their obligations. Although bond insurance reduces the risk of
loss due to default by an issuer, such bonds remain subject to the risk that
market value may fluctuate for other reasons and there is no assurance that the
insurance company will meet its obligations. These securities have been
identified in the Portfolios of Investments.
Note 8. Subsequent Events
Subsequent to October 31,
2007, the Board of each Trust declared dividends from undistributed earnings
per common share payable December 1, 2007, to shareholders of record on
November 15, 2007. The per share common dividends declared were as follows:
|
|
|
|
|
|
|
|
|
Trust
|
|
Common
Dividend
Per Share
|
|
|
|
|
Investment Quality
Municipal
|
|
$
|
0.082500
|
|
|
Municipal Income
|
|
|
0.080000
|
|
|
Long-Term Municipal
|
|
|
0.055000
|
|
|
California Investment
Quality
|
|
|
0.048000
|
|
|
California Income
|
|
|
0.076074
|
|
|
Florida Investment Quality
|
|
|
0.048000
|
|
|
Florida Income
|
|
|
0.075375
|
|
|
New Jersey Investment
Quality
|
|
|
0.068000
|
|
|
New Jersey Income
|
|
|
0.079625
|
|
|
New York Investment Quality
|
|
|
0.070000
|
|
|
New York Income
|
|
|
0.075339
|
|
The dividends declared on
preferred shares for the period November 1, 2007 to November 30, 2007 for each
of the Trusts were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Trust
|
|
Series
|
|
Dividends
Declared
|
|
|
|
|
Investment Quality
Municipal
|
|
|
T7
|
|
$
|
240,866
|
|
|
|
|
|
T28
|
|
|
236,860
|
|
|
Municipal Income
|
|
|
M7
|
|
|
207,129
|
|
|
|
|
|
T7
|
|
|
205,448
|
|
|
|
|
|
W7
|
|
|
222,854
|
|
|
|
|
|
R7
|
|
|
263,308
|
|
|
|
|
|
F7
|
|
|
243,081
|
|
|
California Investment
Quality
|
|
|
W7
|
|
|
18,072
|
|
|
California Income
|
|
|
T7
|
|
|
191,064
|
|
|
|
|
|
R7
|
|
|
216,979
|
|
|
Florida Investment Quality
|
|
|
R7
|
|
|
33,092
|
|
|
Florida Income
|
|
|
T7
|
|
|
168,552
|
|
|
New Jersey Investment
Quality
|
|
|
T7
|
|
|
19,332
|
|
|
New Jersey Income
|
|
|
R7
|
|
|
207,273
|
|
|
New York Investment Quality
|
|
|
F7
|
|
|
30,623
|
|
|
New York Income
|
|
|
W7
|
|
|
119,101
|
|
|
|
|
|
F7
|
|
|
165,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60
|
ANNUAL REPORT
|
OCTOBER
31, 2007
|
|
|
|
|
|
|
|
Report
of Independent Registered Public Accounting Firm
|
|
|
|
To the Trustees and Shareholders
of:
|
|
BlackRock Investment Quality Municipal
Trust, Inc.
|
|
BlackRock Municipal Income Trust
|
|
BlackRock Long-Term Municipal Advantage
Trust
|
|
BlackRock California Investment Quality
Municipal Trust,
Inc.
|
|
BlackRock California Municipal Income
Trust
|
|
BlackRock Florida Investment Quality
Municipal Trust, Inc.
|
|
BlackRock Florida Municipal Income Trust
|
|
BlackRock New Jersey Investment Quality
Municipal Trust,
Inc.
|
|
BlackRock New Jersey Municipal Income
Trust
|
|
BlackRock New York Investment Quality
Municipal Trust,
Inc.
|
|
BlackRock New York Municipal
Income Trust
|
|
(Collectively
the “Trusts”)
|
We have
audited the accompanying statements of assets and liabilities of the Trusts,
including the portfolios of investments, as of October 31, 2007, the related
statements of operations for the year then ended, and the statements of changes
in net assets and the financial highlights for each of the periods presented
and the statement of cash flows for BlackRock Long-Term Municipal Advantage
Trust for the year ended October 31, 2007. These financial statements and
financial highlights are the responsibility of the Trusts’ management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. The Trusts are not required to have, nor were we engaged to
perform, an audit of their internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the
Trust’s internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. Our procedures
included confirmation of securities owned as of October 31, 2007, by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
In our
opinion, the financial statements and financial highlights referred to above
present fairly, in all material respects, the financial position of the Trusts
as of October 31, 2007, the results of their operations and the cash flows for
BlackRock Long-Term Municipal Advantage Trust for the year then ended, and the
changes in their net assets and financial highlights for each of the periods
presented, in conformity with accounting principles generally accepted in the
United States of America.
Deloitte
& Touche
LLP
Boston,
Massachusetts
December 24, 2007
|
|
|
|
|
|
|
|
|
|
|
|
ANNUAL
REPORT
|
OCTOBER 31, 2007
|
61
|
|
|
|
|
|
|
T
he
Benefits and Risks of Leveraging (unaudited)
|
The Trusts
utilize leveraging to seek to enhance the yield and net asset value of its
Common Stock. However, these objectives cannot be achieved in all interest rate
environments. To leverage, the Trusts may issue Preferred Stock, which pays
dividends at prevailing short-term interest rates, and invests the proceeds in
long-term municipal bonds. The interest earned on these investments, net of
dividends to Preferred Stock, is paid to Common Stock shareholders in the form
of dividends, and the value of these Trusts holdings is reflected in the per
share net asset value of the Trust’s Common Stock. However, in order to benefit
Common Stock shareholders, the yield curve must be positively sloped; that is,
short-term interest rates must be lower than long-term interest rates. At the
same time, a period of generally declining interest rates will benefit Common
Stock shareholders.
If either of these
conditions change, then the risks of leveraging will begin to outweigh the
benefits.
To
illustrate these concepts, assume a Trust’s Common Stock capitalization of $100
million and the issuance of Preferred Stock for an additional $50 million,
creating a total value of $150 million available for investment in long-term municipal
bonds. If prevailing short-term interest rates are approximately 3% and
long-term interest rates are approximately 6%, the yield curve has a strongly
positive slope. The Trust pays dividends on the $50 million of Preferred Stock
based on the lower short-term interest rates. At the same time, the Trust’s
total portfolio of $150 million earns the income based on long-term interest
rates. Of course, increases in short- term interest rates would reduce (and
even eliminate) the dividends on the Common Stock.
In this
case, the dividends paid to Preferred Stock shareholders are significantly
lower than the income earned on the trust’s long-term investments and,
therefore, the Common Stock shareholders are the beneficiaries of the
incremental yield. However,
if short-term
interest rates rise,
narrowing the differential between short-term
and long-term interest rates,
the incremental
yield pickup on the Common Stock will be reduced or eliminated completely.
At
the same time, the market value of the trust’s Common Stock (that is, its price
as listed on the New York Stock Exchange or American Stock Exchange) may, as a
result, decline. Furthermore,
if long-term
interest rates rise, the Common Stock’s net asset value will reflect the full
decline in the price of the portfolio’s investments, since the value of the
Trust’s Preferred Stock does not fluctuate.
In addition to the
decline in net asset value, the market value of the trust’s Common Stock may
also decline.
As of October 31, 2007 the Trusts
had the following leverage amounts, due to Auction Market Preferred Shares
(“AMPS”), to total net assets before the deduction of AMPS of:
|
|
|
|
|
|
|
Trust
|
Leverage %
|
|
|
|
|
Investment Quality Municipal
|
37%
|
|
Municipal Income
|
37%
|
|
California Investment Quality
|
35%
|
|
California Income
|
37%
|
|
Florida Investment Quality
|
36%
|
|
Florida Income
|
36%
|
|
New Jersey Investment Quality
|
35%
|
|
New Jersey Income
|
35%
|
|
New York Income
|
34%
|
|
New York Investment Quality
|
37%
|
|
|
|
As a part of its investment
strategy, the Trusts may invest in certain securities whose potential income
return is inversely related to changes in a floating interest rate (“inverse
floaters”). In general, income on inverse floaters will decrease when
short-term interest rates increase and increase when short-term interest rates decrease.
Investments in inverse floaters may be characterized as derivative securities
and may subject the Trusts to the risks of reduced or eliminated interest
payments and losses of invested principal. In addition, inverse floaters have
the effect of providing investment leverage and, as a result, the market value
of such securities will generally be more volatile than that of fixed rate,
tax-exempt securities. To the extent a Trust invests in inverse floaters, the
market value of the Trust’s portfolio and net asset value of the Trust’s shares
may also be more volatile than if the Trust did not invest in these securities.
The Trusts
may invest in swap agreements, which are over-the-counter contracts in which
one party agrees to make periodic payments based on the change in market value
of a specified bond, basket of bonds, or index in return for periodic payments
based on a fixed or variable interest rate or the change in market value of a
different bond, basket of bonds or index. Swap agreements may be used to obtain
exposure to a bond or market without owning or taking physical custody of
securities. Swap agreements involve the risk that the party with whom each Fund
has entered into a swap will default on its obligation to pay the Fund and the
risk that the Fund will not be able to meet its obligation to pay the other
party to the agreement.
|
|
|
|
|
|
|
|
|
|
|
62
|
ANNUAL REPORT
|
OCTOBER
31, 2007
|
|
|
|
|
|
|
|
D
ividend
Reinvestment Plans (unaudited)
|
Pursuant to
each Trust’s Dividend Reinvestment Plan (the “Plan”), common shareholders are
automatically enrolled to have all distributions of dividends and capital gains
reinvested by Computershare Trust Company, N.A. (the “Plan Agent”) in the
respective Trust’s shares pursuant to the Plan. Shareholders who elect not to
participate in the Plan will receive all distributions in cash paid by check
and mailed directly to the shareholders of record (or if the shares are held in
street or other nominee name, then to the nominee) by the Plan Agent, which
serves as agent for the shareholders in administering the Plan.
At present
after an Investment Quality Trust declares a dividend or determines to make a
capital gain distribution, the Plan Agent will acquire shares for the
participant’s account, by the purchase of outstanding shares on the open
market, on the Trust’s primary exchange or elsewhere (“open market purchases”).
The Investment Quality Trusts do not presently issue any new shares under the
Plan, which serves as agent for the shareholders in administering the Plan.
After the
Income Trusts and Long-Term Municipal declare a dividend or determines to make
a capital gain distribution, the Plan Agent will acquire shares for the
participants’ accounts, depending upon the circumstances described below,
either (i) through receipt of unissued but authorized shares from the Trust
(“newly issued shares”) or (ii) by open market purchases. If, on the dividend
payment date, the net asset value per share (“NAV”) is equal to or less than
the market price per share plus estimated brokerage commissions (such condition
being referred to herein as “market premium”), the Plan Agent will invest the
dividend amount in newly issued shares on behalf of the participants. The
number of newly issued shares to be credited to each participant’s account will
be determined by dividing the dollar amount of the dividend by the NAV on the
date the shares are issued. However, if the NAV is less than 95% of the market
price on the payment date, the dollar amount of the dividend will be divided by
95% of the market price on the payment date. If, on the dividend payment date,
the NAV is greater than the market value per share plus estimated brokerage
commissions (such condition being referred to herein as “market discount”), the
Plan Agent will invest the dividend amount in shares acquired on behalf of the
participants in open market purchases.
At a
meeting of the Boards of Trustees of the Investment Quality Trusts on November
21, 2006, the Boards approved an amendment to the Dividend Reinvestment Plans
of each Investment Quality Trust. Although the Plans presently permit shares to
be purchases only the open market, as a result of the amendment, the Plans will
permit purchases of newly issued shares on terms similar to the Income Trusts
described in the preceding paragraph. The amendments took effect on April 1,
2007.
Participants
in the Plan may withdraw from the Plan upon written notice to the Plan Agent
and will receive certificates for whole Trust shares and a cash payment for any
fraction of a Trust share.
The Plan
Agent’s fees for the handling of the reinvestment of dividends and
distributions will be paid by each Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent’s open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any Federal income tax that may be payable on
such dividends or distributions.
Each Trust reserves the right to
amend or terminate the Plan. There is no direct service charge to participants
in the Plan, however, each Trust reserves the right to amend the Plan to
include a service charge payable by the participants. Participants who request
a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a
$0.15 per share sold brokerage commission. All correspondence concerning the
Plan should be directed to the Plan Agent at 250 Royall Street, Canton, MA
02021, or (800) 699-1BFM.
|
|
|
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 nonpublic 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 nonpublic information from and about you from
different sources, including the following: (i) information we receive from you
or, if applicable, your financial intermediary, on applications, forms or other
documents; (ii) information about your transactions with us, our affiliates, or
others; (iii) information we receive from a consumer reporting agency; and (iv)
from visits to our Web sites.
BlackRock
does not sell or disclose to nonaffiliated third parties any non-public
personal information about its Clients, except as permitted by law or as is
necessary to service Client accounts. These nonaffiliated 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 nonpublic 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 nonpublic personal
information of its Clients, including procedures relating to the proper storage
and disposal of such information.
|
|
|
|
|
|
|
|
|
|
|
|
ANNUAL
REPORT
|
OCTOBER
31, 2007
|
63
|
|
|
|
|
|
|
A
dditional
Information (unaudited)
|
60 Day Notice
All of the
net investment income distributions paid by the
BlackRock Closed-End Funds (Investment Quality Municipal Trust — BKN,
Municipal Income Trust — BFK, Long-Term Advantage Trust — BTA, California
Investment Quality Municipal Trust — RAA, California Municipal Income Trust —
BFZ, Florida Investment Quality Municipal Trust — RFA, Florida Municipal Income
Trust — BBF, New Jersey Investment Quality Municipal Trust — RNJ, New Jersey
Municipal Income Trust — BNJ, and New York Investment Quality Municipal Trust —
RNY)
during the taxable year ended October 31, 2007 qualify as
tax-exempt interest dividends for federal income tax purposes.
Additionally, the following
summarizes the taxable per share distributions paid by the Fund during the
year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable
Date
|
|
Ordinary
Income
|
|
Long-Term
Capital Gains
|
|
|
|
|
|
Municipal Income
Trust — BFK
|
|
|
|
|
|
|
|
|
|
|
|
Common Shareholders
|
|
|
12/29/2006
|
|
$
|
0.001309
|
|
|
—
|
|
|
Preferred Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Series M7
|
|
|
12/19/2006
|
|
$
|
1.24
|
|
|
—
|
|
|
Series T7
|
|
|
12/20/2006
|
|
$
|
1.20
|
|
|
—
|
|
|
Series W7
|
|
|
12/14/2006
|
|
$
|
1.19
|
|
|
—
|
|
|
Series R7
|
|
|
12/15/2006
|
|
$
|
1.19
|
|
|
—
|
|
|
Series F7
|
|
|
12/18/2006
|
|
$
|
1.18
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California
Investment Quality Municipal Trust — RAA
|
|
|
|
|
|
|
|
|
|
|
|
Common Shareholders
|
|
|
12/29/2006
|
|
|
—
|
|
$
|
0.051512
|
|
|
Preferred Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Series W7
|
|
|
11/30/2006
|
|
|
—
|
|
$
|
13.97
|
|
|
Series W7
|
|
|
12/07/2006
|
|
|
—
|
|
$
|
15.82
|
|
|
Series W7
|
|
|
12/14/2006
|
|
|
—
|
|
$
|
24.45
|
|
|
Series W7
|
|
|
12/21/2006
|
|
|
—
|
|
$
|
16.06
|
|
|
Series W7
|
|
|
12/28/2006
|
|
|
—
|
|
$
|
1.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Florida
Investment Quality Municipal Trust — RFA
|
|
|
|
|
|
|
|
|
|
|
|
Common Shareholders
|
|
|
12/29/2006
|
|
|
—
|
|
$
|
0.047441
|
|
|
Preferred Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Series R7
|
|
|
12/01/2006
|
|
|
—
|
|
$
|
23.01
|
|
|
Series R7
|
|
|
12/08/2006
|
|
|
—
|
|
$
|
23.01
|
|
|
Series R7
|
|
|
12/15/2006
|
|
|
—
|
|
$
|
23.01
|
|
|
Series R7
|
|
|
12/22/2006
|
|
|
—
|
|
$
|
24.93
|
|
|
Series R7
|
|
|
12/29/2006
|
|
|
—
|
|
$
|
25.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
Investment Quality Municipal Trust — RNJ
|
|
|
|
|
|
|
|
|
|
|
|
Common Shareholders
|
|
|
12/29/2006
|
|
|
—
|
|
$
|
0.037843
|
|
|
Preferred Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Series T7
|
|
|
12/06/2006
|
|
|
—
|
|
$
|
24.50
|
|
|
Series T7
|
|
|
12/13/2006
|
|
|
—
|
|
$
|
14.38
|
|
|
Series T7
|
|
|
12/20/2006
|
|
|
—
|
|
$
|
20.14
|
|
|
Series T7
|
|
|
12/27/2006
|
|
|
—
|
|
$
|
16.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York Investment
Quality Municipal Trust — RNY
|
|
|
|
|
|
|
|
|
|
|
|
Common Shareholders
|
|
|
12/29/2006
|
|
|
—
|
|
$
|
0.13673
|
|
|
Preferred Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Series R7
|
|
|
12/04/2006
|
|
|
—
|
|
$
|
16.30
|
|
|
Series R7
|
|
|
12/11/2006
|
|
|
—
|
|
$
|
5.37
|
|
The Joint Annual Meeting of
Shareholders was held on August 16, 2007 for shareholders of record on June 20,
2007, to elect director or trustee nominees of each Trust. This proposal was
part of the reorganization of the Trust’s Boards of Trustees (the “Boards”) to
take effect on or about November 1, 2007. The Board is organized into three
classes one class of which is elected annually. Each Trustee serves a
three-year term concurrent with the class into which he or she is elected.
Approved the Class I Directors/Trustees as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
G. Nicholas Beckwith, III
|
|
Kent Dixon
|
|
R. Glenn Hubbard
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Votes For
|
|
Votes
Withheld
|
|
Votes For
|
|
Votes
Withheld
|
|
Votes For
|
|
Votes
Withheld
|
|
|
|
|
Investment Quality Municipal
|
|
|
14,330,954
|
|
|
110,121
|
|
|
14,335,004
|
|
|
106,071
|
|
|
14,330,737
|
|
|
110,338
|
|
|
Municipal Income
|
|
|
41,486,450
|
|
|
431,045
|
|
|
41,488,590
|
|
|
428,905
|
|
|
41,477,739
|
|
|
439,756
|
|
|
Long-Term Municipal
|
|
|
11,772,697
|
|
|
618,809
|
|
|
11,773,022
|
|
|
618,484
|
|
|
11,772,697
|
|
|
618,809
|
|
|
California Investment Quality
|
|
|
910,803
|
|
|
20,371
|
|
|
910,803
|
|
|
20,371
|
|
|
911,229
|
|
|
19,945
|
|
|
California Income
|
|
|
13,251,599
|
|
|
106,933
|
|
|
13,249,099
|
|
|
109,433
|
|
|
13,251,599
|
|
|
106,933
|
|
|
Florida Investment Quality
|
|
|
977,356
|
|
|
55,236
|
|
|
973,856
|
|
|
58,736
|
|
|
977,356
|
|
|
55,236
|
|
|
Florida Income
|
|
|
6,322,811
|
|
|
7,050
|
|
|
6,320,011
|
|
|
9,850
|
|
|
6,321,411
|
|
|
8,450
|
|
|
New Jersey Investment Quality
|
|
|
924,350
|
|
|
23,781
|
|
|
924,350
|
|
|
23,781
|
|
|
924,350
|
|
|
23,781
|
|
|
New Jersey Income
|
|
|
6,950,946
|
|
|
84,083
|
|
|
6,950,946
|
|
|
84,083
|
|
|
6,950,946
|
|
|
84,083
|
|
|
New York Investment Quality
|
|
|
1,204,527
|
|
|
2,000
|
|
|
1,204,127
|
|
|
2,400
|
|
|
1,204,527
|
|
|
2,000
|
|
|
New York Income
|
|
|
11,531,240
|
|
|
121,172
|
|
|
11,531,425
|
|
|
120,987
|
|
|
11,531,092
|
|
|
121,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64
|
ANNUAL REPORT
|
OCTOBER
31, 2007
|
|
|
|
|
|
|
|
|
Additional Information (unaudited) (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W. Carl Kester
|
|
Robert S. Salomon, Jr.
|
|
|
|
|
|
|
|
|
|
|
|
Votes For
|
|
Votes
Withheld
|
|
Votes For
|
|
Votes
Withheld
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Quality Municipal
|
|
|
4,843
|
1
|
|
4
|
1
|
|
14,330,854
|
|
|
110,221
|
|
|
Municipal Income
|
|
|
13,553
|
1
|
|
65
|
1
|
|
41,483,220
|
|
|
434,275
|
|
|
Long-Term Municipal
|
|
|
11,773,022
|
|
|
618,484
|
|
|
11,772,697
|
|
|
618,809
|
|
|
California Investment Quality
|
|
|
195
|
1
|
|
—
|
1
|
|
911,229
|
|
|
19,945
|
|
|
California Income
|
|
|
4,260
|
1
|
|
—
|
1
|
|
13,244,929
|
|
|
113,603
|
|
|
Florida Investment Quality
|
|
|
322
|
1
|
|
5
|
1
|
|
973,856
|
|
|
58,736
|
|
|
Florida Income
|
|
|
2,301
|
1
|
|
—
|
1
|
|
6,320,011
|
|
|
9,850
|
|
|
New Jersey Investment Quality
|
|
|
250
|
1
|
|
—
|
1
|
|
924,350
|
|
|
23,781
|
|
|
New Jersey Income
|
|
|
2,433
|
1
|
|
—
|
1
|
|
6,950,146
|
|
|
84,883
|
|
|
New York Investment Quality
|
|
|
386
|
1
|
|
—
|
1
|
|
1,204,527
|
|
|
2,000
|
|
|
New York Income
|
|
|
1,780
|
1
|
|
—
|
1
|
|
11,531,240
|
|
|
121,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Approved the Class II
Directors/Trustees as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Richard S. Davis
|
|
Frank J. Fabozzi
|
|
James T. Flynn
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Votes For
|
|
Votes
Withheld
|
|
Votes For
|
|
Votes
Withheld
|
|
Votes For
|
|
Votes
Withheld
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Quality Municipal
|
|
|
14,333,679
|
|
|
107,396
|
|
|
4,843
|
1
|
|
4
|
1
|
|
14,335,004
|
|
|
106,071
|
|
|
Municipal Income
|
|
|
41,497,942
|
|
|
419,553
|
|
|
13,553
|
1
|
|
65
|
1
|
|
41,492,473
|
|
|
425,022
|
|
|
Long-Term Municipal
|
|
|
11,773,022
|
|
|
618,484
|
|
|
11,773,022
|
|
|
618,484
|
|
|
11,773,022
|
|
|
618,484
|
|
|
California Investment Quality
|
|
|
911,229
|
|
|
19,945
|
|
|
195
|
1
|
|
—
|
1
|
|
910,803
|
|
|
20,371
|
|
|
California Income
|
|
|
13,251,599
|
|
|
106,933
|
|
|
4,260
|
1
|
|
—
|
1
|
|
13,250,099
|
|
|
108,433
|
|
|
Florida Investment Quality
|
|
|
977,356
|
|
|
55,236
|
|
|
322
|
1
|
|
5
|
1
|
|
977,356
|
|
|
55,236
|
|
|
Florida Income
|
|
|
6,322,811
|
|
|
7,050
|
|
|
2,301
|
1
|
|
—
|
1
|
|
6,322,807
|
|
|
7,054
|
|
|
New Jersey Investment Quality
|
|
|
924,350
|
|
|
23,781
|
|
|
250
|
1
|
|
—
|
1
|
|
924,350
|
|
|
23,781
|
|
|
New Jersey Income
|
|
|
6,950,946
|
|
|
84,083
|
|
|
2,433
|
1
|
|
—
|
1
|
|
6,950,946
|
|
|
84,083
|
|
|
New York Investment Quality
|
|
|
1,203,202
|
|
|
3,325
|
|
|
386
|
1
|
|
—
|
1
|
|
1,204,527
|
|
|
2,000
|
|
|
New York Income
|
|
|
11,531,425
|
|
|
120,987
|
|
|
1,780
|
1
|
|
—
|
1
|
|
11,531,425
|
|
|
120,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Voted on by holders of preferred
shares only.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Karen P. Robards
|
|
|
|
|
|
|
|
|
|
Votes For
|
|
Votes
Withheld
|
|
|
|
|
|
|
|
|
|
Investment Quality Municipal
|
|
|
14,336,322
|
|
|
104,753
|
|
|
Municipal Income
|
|
|
41,495,725
|
|
|
421,770
|
|
|
Long-Term Municipal
|
|
|
11,774,073
|
|
|
617,433
|
|
|
California Investment Quality
|
|
|
911,229
|
|
|
19,945
|
|
|
California Income
|
|
|
13,251,046
|
|
|
107,486
|
|
|
Florida Investment Quality
|
|
|
977,356
|
|
|
55,236
|
|
|
Florida Income
|
|
|
6,322,811
|
|
|
7,050
|
|
|
New Jersey Investment Quality
|
|
|
924,350
|
|
|
23,781
|
|
|
New Jersey Income
|
|
|
6,950,946
|
|
|
84,083
|
|
|
New York Investment Quality
|
|
|
1,204,527
|
|
|
2,000
|
|
|
New York Income
|
|
|
11,531,425
|
|
|
120,987
|
|
|
|
|
|
|
|
|
|
|
Approved the
Class III Directors/Trustees as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANNUAL
REPORT
|
OCTOBER
31, 2007
|
65
|
|
|
|
|
|
|
|
Additional Information (unaudited) (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Richard E. Cavanagh
|
|
Kathleen F. Feldstein
|
|
Henry Gabbay
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Votes For
|
|
Votes
Withheld
|
|
Votes For
|
|
Votes
Withheld
|
|
Votes For
|
|
Votes
Withheld
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Quality Municipal
|
|
|
14,329,430
|
|
|
111,645
|
|
|
14,333,423
|
|
|
107,652
|
|
|
14,330,949
|
|
|
110,126
|
|
|
Municipal Income
|
|
|
41,489,958
|
|
|
427,537
|
|
|
41,482,861
|
|
|
434,634
|
|
|
41,487,342
|
|
|
430,153
|
|
|
Long-Term Municipal
|
|
|
11,773,022
|
|
|
618,484
|
|
|
11,773,748
|
|
|
617,758
|
|
|
11,771,722
|
|
|
619,784
|
|
|
California Investment Quality
|
|
|
911,229
|
|
|
19,945
|
|
|
910,829
|
|
|
20,345
|
|
|
911,229
|
|
|
19,945
|
|
|
California Income
|
|
|
13,253,099
|
|
|
105,433
|
|
|
13,251,899
|
|
|
106,633
|
|
|
13,248,599
|
|
|
109,933
|
|
|
Florida Investment Quality
|
|
|
977,356
|
|
|
55,236
|
|
|
977,356
|
|
|
55,236
|
|
|
999,856
|
|
|
32,736
|
|
|
Florida Income
|
|
|
6,321,811
|
|
|
8,050
|
|
|
6,322,807
|
|
|
7,054
|
|
|
6,322,811
|
|
|
7,050
|
|
|
New Jersey Investment Quality
|
|
|
924,350
|
|
|
23,781
|
|
|
924,350
|
|
|
23,781
|
|
|
924,350
|
|
|
23,781
|
|
|
New Jersey Income
|
|
|
6,950,946
|
|
|
84,083
|
|
|
6,950,946
|
|
|
84,083
|
|
|
6,950,946
|
|
|
84,083
|
|
|
New York Investment Quality
|
|
|
1,204,527
|
|
|
2,000
|
|
|
1,204,527
|
|
|
2,000
|
|
|
1,203,202
|
|
|
3,325
|
|
|
New York Income
|
|
|
11,531,425
|
|
|
120,987
|
|
|
11,531,425
|
|
|
120,987
|
|
|
11,531,425
|
|
|
120,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jerrold B. Harris
|
|
|
|
|
|
|
|
|
|
Votes For
|
|
Votes
Withheld
|
|
|
|
|
|
|
|
|
|
Investment Quality Municipal
|
|
|
14,335,310
|
|
|
105,765
|
|
|
Municipal Income
|
|
|
41,489,636
|
|
|
427,859
|
|
|
Long-Term Municipal
|
|
|
11,773,022
|
|
|
618,484
|
|
|
California Investment Quality
|
|
|
911,229
|
|
|
19,945
|
|
|
California Income
|
|
|
13,250,099
|
|
|
108,433
|
|
|
Florida Investment Quality
|
|
|
977,356
|
|
|
55,236
|
|
|
Florida Income
|
|
|
6,322,811
|
|
|
7,050
|
|
|
New Jersey Investment Quality
|
|
|
924,350
|
|
|
23,781
|
|
|
New Jersey Income
|
|
|
6,950,946
|
|
|
84,083
|
|
|
New York Investment Quality
|
|
|
1,204,127
|
|
|
2,400
|
|
|
New York Income
|
|
|
11,530,907
|
|
|
121,505
|
|
|
|
|
|
|
|
|
|
|
The Trusts had an additional
proposal (Proposal #2) to amend their respective Declarations of Trust to
increase the maximum number of Board Members to 15:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Votes For
|
|
Votes
Against
|
|
Votes
Abstain
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Income
|
|
|
40,842,878
|
|
|
715,927
|
|
|
358,689
|
|
|
Long-Term Municipal
|
|
|
12,114,243
|
|
|
150,528
|
|
|
126,736
|
|
|
California Income
|
|
|
13,164,978
|
|
|
140,472
|
|
|
53,082
|
|
|
Florida Investment Quality
|
|
|
973,367
|
|
|
55,225
|
|
|
4,000
|
|
|
Florida Income
|
|
|
6,273,141
|
|
|
40,773
|
|
|
15,947
|
|
|
New Jersey Income
|
|
|
6,832,125
|
|
|
72,775
|
|
|
130,130
|
|
|
New York Income
|
|
|
11,447,012
|
|
|
123,050
|
|
|
82,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Each Trust
listed for trading on the New York Stock Exchange (“NYSE”) has filed with the
NYSE its annual chief executive officer certification regarding compliance with
the NYSE’s listing standards and each Trust listed for trading on the American
Stock Exchange (“AMEX”) has filed with the AMEX its corporate governance
certification regarding compliance with the AMEX’s listing standards. All of
the Trusts have filed with the Securities and Exchange Commission the
certification of its chief executive officer and chief financial officer
required by section 302 of the Sarbanes-Oxley Act.
The Trusts
do not make available copies of their respective 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 such Trust’s offering 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 any Trust’s investment objective or
policies or to any Trust’s charters or by-laws that were not approved by the
shareholders or in the principle risk factors associated with investment in the
Trusts.
Quarterly
performance, semi-annual and annual reports and other information regarding the
Trusts may be found on BlackRock’s website, which can be accessed at
http://www1.blackrock.com. This reference to BlackRock’s website is intended to
allow investors public access to information regarding the Trusts and does not,
and is not intended, to incorporate BlackRock’s website into this report.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
|
ANNUAL
REPORT
|
OCTOBER
31, 2007
|
|
|
|
|
|
|
|
|
Section 19 Notices (unaudited)
|
These
amounts are sources of distributions reported are only estimates and are not
being provided for tax reporting purposes. The actual amounts and source for
tax reporting purposes will depend upon the Trust’s investment experience
during the remainder of its fiscal year end and may be subject to changes based
on the tax regulations. The Trust will send you a Form 1099-DIV for the
calendar year that will tell you how to report these distributions for federal
income tax purposes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fiscal Year to Date
Cumulative Distributions by Character
|
|
Percentage of Fiscal Year to Date
Cumulative Distributions by Character
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust
|
|
Net
Investment
Income
|
|
Net
Realized
Capital
Gains
|
|
Return
of
Capital
|
|
Total Per
Common
Share
|
|
Net
Investment
Income
|
|
Net
Realized
Capital
Gains
|
|
Return
of
Capital
|
|
Total Per
Common
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Municipal
|
|
|
$
|
0.65
|
|
|
|
$
|
—
|
|
|
|
$
|
0.07
|
|
|
|
$
|
0.72
|
|
|
90
|
%
|
|
—
|
%
|
|
10
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANNUAL
REPORT
|
OCTOBER
31, 2007
|
67
|
|
|
|
|
|
|
|
Trustees Information as of October 31, 2007 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name, Address
and
Year of Birth
|
|
Current
Positions
Held With the
Trusts
|
|
Term of Office
and Length of
Time Served
|
|
Principal
Occupations
During the Past Five Years
|
|
Number of
Portfolios
Overseen
Within the
Fund
Complex
1
|
|
Other
Directorships
Held Outside the
Fund Complex
1
|
|
Events or
Transactions by
Reason of Which the
Trustee is an Interested
Person as Defined in
Section 2(a) (19) of the
1940 Act
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interested
Trustee
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ralph L. Schlosstein
BlackRock, Inc.
40 East 52nd Street
New York, NY 10022
1951
|
|
Chairman of the Board
3
|
|
3 years
4
/since
inception
|
|
Director from 1999 to 2007 and President of BlackRock,
Inc. from 1998 to 2007. Chairman and President of the BlackRock Liquidity
Funds.
|
|
70
|
|
None
|
|
Former Director and President of the Advisor until
September 2007.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
The Fund Complex means two or more registered investment
companies that: (1) hold themselves out to investors as related companies for
purposes of investment and investor services; or (2) have a common investment
advisor or have an investment advisor that is an affiliated person of the
investment advisor of any of the other registered investment companies.
|
|
2
|
Interested Director/Trustee as defined by Section 2(a)(19)
of the Investment Company Act of 1940.
|
|
3
|
Director/Trustee since inception; appointed Chairman of
the Board on August 22, 2002.
|
|
4
|
The Board is classified into three classes of which one
class is elected annually. Each Director/Trustee serves a three-year term
concurrent with the class from which they are elected.
|
|
|
|
|
|
|
|
|
|
|
|
68
|
ANNUAL REPORT
|
OCTOBER 31, 2007
|
|
|
|
|
|
|
|
|
Trustees
Information (unaudited) (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name, Address and
Year of Birth
|
|
Current Positions Held
With the Trusts
|
|
Term of Office and
Length of Time
Served
|
|
Principal Occupations
During the Past Five Years
|
|
Number of
Portfolios Overseen
Within the Fund
Complex
1
|
|
Other Directorships
Held Outside the
Fund Complex
|
|
|
|
Independent Trustees
|
|
|
|
|
|
|
|
Richard E. Cavanagh
P.O. Box 4546
New York, NY
10163-4546
1946
|
|
Lead Trustee Audit Committee Member
2
|
|
3 years
3
/since inception
|
|
Trustee, Aircraft Finance Trust (AFT) from 1999 to the
present; Director, The Guardian Life Insurance Company of America and The
Mutual Life Insurance Company from 1998 to the present; Trustee,
Educational Testing Service (ETS) from 1997 until the present; Director, the
Freemont Group from 1996 until the present. President and Chief Executive Officer
of The Conference Board, Inc. (a leading global business research
organization) from 1995 to 2007.
|
|
60
|
|
Arch Chemical (Chemicals and Allied Products).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kent Dixon
P.O. Box 4546
New York, NY
10163-4546
1937
|
|
Trustee Audit Committee Member
2
|
|
3 years
3
/since inception
|
|
Consultant/Investor since 1988.
|
|
60
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Frank J. Fabozzi
P.O. Box 4546
New York, NY
10163-4546
1948
|
|
Trustee Audit Committee Member
2
|
|
3 years
3
/since inception
|
|
Consultant/Editor of, “The Journal of Portfolio
Management”; Yale University, School of Management, Professor in the Practice
of Finance and Becton Fellow from 2006 until present; Adjunct Professor of
Finance and Becton Fellow from 2005 to 2006; Professor in the practice of
Finance from 2003 to 2005; Adjunct Professor of Finance from 1994 to 2003;
Author and Editor.
|
|
60
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kathleen F. Feldstein
P.O. Box 4546
New York, NY
10163-4546
1941
|
|
Trustee
|
|
3 years
3
/since January 19, 2005
|
|
President of Economic Studies, Inc., (a Belmont MA-based
private economic consulting firm) since 1987; Chair, Board of Trustees,
McLean Hospital since 2000. Member of the Board of Partners Community
Healthcare, Inc. from 2005 until the present; Member of the Board of Partners
HealthCare and Sherrill House from 1990 to the present; Trustee, Museum of
Fine Arts, Boston from 1992 until the present and a Member of the Visiting
Committee to the Harvard University Art Museum from 2003 to the present;
Trustee, The Committee for Economic Development (a research organization of
business leaders and educators) from 1990 to the present; Member of the
Advisory Board to the International School of Business, Brandeis University
from 2002 to the present.
|
|
60
|
|
Director, The McClatchy Company.
|
|
|
|
|
1
|
The Fund Complex means two or more registered investments
companies that: (1) hold themselves out to investors as related companies for
purposes of investment and investor services; or (2) have a common investment
advisor or have an investment advisor that is an affiliated person of the
investment advisor of any of the other registered investment companies.
|
|
2
|
The Board of each Trust has determined that each Trust has
three Audit Committee financial experts serving on its Audit Committee, Mr.
Cavanagh, Mr. Dixon and Mr. Fabozzi, each of whom is independent for the
purpose of the definition of Audit Committee financial expert as applicable
to the Trusts.
|
|
3
|
The Board is classified into three classes of which one
class is elected annually. Each Director/Trustee serves a three-year term
concurrent with the class from which they are elected.
|
|
|
|
|
|
|
|
|
|
|
|
|
ANNUAL REPORT
|
OCTOBER 31, 2007
|
69
|
|
|
|
|
|
|
|
Trustees
Information (unaudited) (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name, Address and
Year of Birth
|
|
Current Positions Held
With the Trusts
|
|
Term of Office and
Length of Time
Served
|
|
Principal Occupations
During the Past Five Years
|
|
Number of
Portfolios Overseen
Within the Fund
Complex
1
|
|
Other Directorships
Held Outside the
Fund Complex
|
|
|
|
Independent Trustees
|
|
|
|
|
|
R. Glenn Hubbard
P.O. Box 4546
New York, NY
10163-4546
1958
|
|
Trustee
|
|
3 years
3
/since November 16, 2004
|
|
Dean of Columbia Business School since 2004; Columbia
faculty member since 1988; Co-director of Columbia Business School’s
Entrepreneurship Program 1997 to 2004; Visiting Professor at the John F.
Kennedy School of Government at Harvard University and the Harvard Business
School from 1985, as well as the University of Chicago from 1994; Deputy
Assistant Secretary of the U.S. Treasury Department for Tax Policy from 1991
to 1993; Chairman of the U.S. Council of Economic Advisers under the
President of the United States from 2001 to 2003.
|
|
60
|
|
ADP, KKR Financial Corporation, Duke Realty, Metropolitan
Life Insurance Company.
|
|
|
|
|
1
|
The Fund Complex means two or more registered investments
companies that: (1) hold themselves out to investors as related companies for
purposes of investment and investor services; or (2) have a common investment
advisor or have an investment advisor that is an affiliated person of the
investment advisor of any of the other registered investment companies.
|
|
2
|
The Board of each Trust has determined that each Trust has
three Audit Committee financial experts serving on its Audit Committee, Mr.
Cavanagh, Mr. Dixon and Mr. Fabozzi, each of whom is independent for the purpose
of the definition of Audit Committee financial expert as applicable to the
Trusts.
|
|
3
|
The Board is classified into three classes of which one
class is elected annually. Each Director/Trustee serves a three-year term
concurrent with the class from which they are elected.
|
|
|
|
|
|
|
|
|
|
|
|
70
|
ANNUAL REPORT
|
OCTOBER 31, 2007
|
|
[This Page Intentionally Left Blank]
[This Page Intentionally Left Blank]
BlackRock
Closed-End Funds
|
|
|
Officers
|
|
Robert S. Kapito,
President
|
|
Donald C. Burke,
Treasurer
|
|
Bartholomew Battista,
Chief
Compliance Officer
|
|
Anne Ackerley,
Vice
President
|
|
Vincent B. Tritto,
Secretary
|
|
|
|
Investment Advisor
|
|
BlackRock Advisors, LLC
|
|
100 Bellevue Parkway
|
|
Wilmington, DE 19809
|
|
(800) 227-7BFM
|
|
|
|
Sub-Advisor
|
|
BlackRock Financial Management, Inc.
|
|
40 East 52nd Street
|
|
New York, NY 10022
|
|
|
|
Accounting Agent
and Custodian
|
|
State Street Bank and Trust Company
|
|
2 Avenue De Lafayette
|
|
Boston, MA 02111
|
|
|
|
Transfer Agent
|
|
Computershare Trust Company, N.A.
|
|
250 Royall Street
|
|
Canton, MA 02021
|
|
(800) 699-1BFM
|
|
|
|
Auction Agent
1
|
|
Bank of New York
|
|
101 Barclay Street, 7 West
|
|
New York, NY 10286
|
|
|
|
Auction Agent
2
|
|
Deutsche Bank Trust Company Americas
|
|
60 Wall Street, 8th Floor
|
|
New York, NY 10286
|
|
|
|
Independent
Registered Public Accounting Firm
|
|
Deloitte & Touche LLP
|
|
200 Berkeley Street
|
|
Boston, MA 02116
|
|
|
|
Legal Counsel
|
|
Skadden, Arps, Slate, Meagher & Flom LLP
|
|
Four Times Square
|
|
New York, NY 10036
|
|
|
|
Legal Counsel –
Independent Trustees
|
|
Debevoise & Plimpton LLP
|
|
919 Third Avenue
|
|
New York, NY 10022
|
This
report is for shareholder information. This is not a prospectus intended for
use in the purchase or sale of Trust shares. Statements and other information
contained in this report are as dated and are subject to change.
BlackRock
Closed-End Funds
c/o BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
|
|
|
|
|
1
For the
Income Trusts.
|
|
2
For the
Investment Quality Trusts.
|
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 contact the Trusts at (800) 699-1BFM.
The Trusts
have delegated to the Advisor the voting of proxies relating to their voting
securities pursuant to the Advisor’s proxy voting policies and procedures. You
may obtain a copy of these proxy voting policies and procedures, without
charge, by calling (800) 699-1BFM. These policies and procedures are also
available on the website of the Securities and Exchange Commission (the
“Commission”) at http://www.sec.gov.
Information
on how proxies relating to the Trusts’ voting securities were voted (if any) by
the Advisor during the most recent 12-month period ended June 30th is available
without charge, upon request, by calling (800) 699-1BFM or on the website of the
Commission at http://www.sec.gov.
The Trusts
file their complete schedule of portfolio holdings for the first and third
quarters of their respective fiscal years with the Commission on Form N-Q. Each
Trust’s Form N-Q is available on the Commission’s website at
http://www.sec.gov. Each Trust’s Form N-Q, may be reviewed and copied at the
Commission’s Public Reference Room in Washington, D.C. Information regarding
the operation of the Public Reference Room may be obtained by calling (800)
SEC-0330. Each Trust’s Form N-Q may also be obtained, without charge, upon
request, by calling (800) 699-1BFM.
|
|
|
|
|
|
|
|
|
|
|
|
ANNUAL
REPORT
|
OCTOBER
31, 2007
|
|
|
|
|
|
This report is for shareholder
information. This is not a prospectus intended for
use in the purchase or
sale of Trust shares. Statements and other information
contained in this
report are as dated and are subject to change.
|
|
|
|
|
|
CEF-ANN-2-1007
|
|